Eli Lilly and Co. (NYSE: LLY) is one of the world’s largest pharmaceutical companies. But does that mean Eli Lilly stock is one to buy today?
It was founded in 1876 and has been a leader in the industry ever since.
As a publicly-traded company, Eli Lilly’s stock price is always on the minds of investors.
So what does the future hold for this pharmaceutical giant? Let’s take a look at the company’s business and outlook for 2023 through the lens of our proprietary Stock Power Ratings system.
Business Overview
Eli Lilly specializes in researching, developing and selling pharmaceutical drugs to treat medical conditions including diabetes, cancer, heart disease, Alzheimer’s and Parkinson’s — just to name a few.
The company has an extensive portfolio of products as well as a strong pipeline of new treatments that are under development.
In addition to its pharmaceutical business, Eli Lilly also has a presence in animal health care products and elastomers (materials used for sealing applications).
In the third quarter of 2022, Eli Lilly reported 2% revenue growth bolstered by its key growth products (aka its core products that support the broader business).
Its launch of Mounjaro, a Type 2 diabetes treatment, generated $97.3 million in U.S. revenue for the quarter as well.
Eli Lilly Stock Outlook for 2023
Eli Lilly is expecting continued growth over the next few years with double-digit sales growth projected through 2023 due to new product launches as well as continued success from existing products.
The company has also indicated that it expects to grow earnings per share by 10% to 15% this year as well.
Looking even further out, analysts estimate that Eli Lilly could achieve annual sales growth rates in excess of 15% through 2025 due to strong demand from both existing products as well as new treatments entering the market over this time frame.
Does that mean Eli Lilly stock scores well within our system?
Let’s see.
Eli Lilly Stock Power Ratings
Eli Lilly stock rates a “Bullish” 77 out of 100. That means our system expects the stock to outperform the broader market by 2X over the next 12 months!
LLY’s Stock Power Ratings in January 2023.
I mentioned its strong revenue and core products above. That’s a big reason it sports solid rating on quality (90) and growth (87).
Not only is Eli Lilly growing its business, but it has the cash on hand to maintain that growth. That’s huge during periods of uncertainty and higher interest rates.
And Eli Lilly stock investors are benefitting from its business plan. The stock is up 40% over the last 12 months. That’s what we call “maximum momentum.” It’s also why LLY scores a 94 out of 100 on our momentum factor.
Bottom Line: As one of the world’s leading pharmaceutical companies, Eli Lilly looks poised for continued success over the next several years.
And our Stock Power Ratings system shows that Eli Lilly stock is set to outperform the broader market throughout 2023.
Do you own LLY? Did you get to take part in its massive 40% climb higher over the last year? Email us at StockPower@MoneyandMarkets.com to let us know if you plan on holding it for longer.