Valued at $1.17 trillion, Eli Lilly & Co. (LLY) is one of the world’s largest pharmaceutical companies. The Trend Seeker issued a new “Buy” signal on Oct. 15. Since that signal, LLY is up 3.4%, explains Jim Van Meerten, analyst at Barchart.
Lilly boasts a diversified product profile, including a solid lineup of new successful drugs. Its pharmaceutical product categories are neuroscience, diabetes, oncology, immunology, and others. I found LLY by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum.
Eli Lilly & Co. (LLY)
Lilly hit an all-time high of $1,311.75 on Oct. 20. It has a Weighted Alpha of 55.4, plus a 100% “Buy” opinion from Barchart. It has a 60-month beta of 0.46, its Relative Strength Index (RSI) is at 63.3, and it has a technical support level around $1,233.04.
Wall Street analysts followed by Barchart give the stock 23 “Strong Buy,” three “Moderate Buy,” and three “Hold” opinions, with price targets from $915 to $1,600. Value Line rates the stock “Highest” with price targets between $1,220 and $1,660. CFRA’s MarketScope rates the stock as “Buy” with a price target of $1,395.
Bottom line? The stock demonstrates extraordinary growth and profitability, with strong momentum. LLY’s stretched valuation gives me concern even though most analysts think the stock still has room to run. As usual, I advise a rational stop loss on stocks that have had this kind of momentum.
