Sign InEli Lilly (LLY) Stock Analysis: Market Interest and Consensus Indicate 'Buy'
Summary
On September 13, 2023, Eli Lilly and Company (LLY) closed at $598.88, experiencing a marginal decrease, but with positive news impacting the stock, a consensus recommendation to 'Buy,' and the stock's performance in line with its intrinsic value, Eli Lilly maintains a bullish stance and is considered a 'Buy' despite being over its median target.
1. Basic Stock Information and Current Position
Eli Lilly and Company, trading under the ticker LLY on the NYSE, closed at $598.88 on September 13, 2023, reflecting a marginal decrease of -0.42 (-0.07%) from the previous trading day. The trading volume for the day was 1.61 million shares, lower than the average volume of 2.86 million shares.
2. Comparative Price Information
LLY's recent trading ranges from lows of $591.70 to highs of $600.75. On a comparative annual spectrum, the stock has seen heights of $601.84 and lows of $296.32.
3. Market Capitalization, EPS, PE, and Outstanding Shares
Eli Lilly's market capitalization stands at approximately $565.08 billion, with an EPS of $7.21 and a PE ratio of 82.56. The total outstanding shares number around 949.29 million.
4. Price Averages and Volatility
The 50-day simple moving average for Eli Lilly is $505.69 while the 200-day simple moving average is at $409.01. In terms of volatility over three months, the Average True Range (ATR) stands at 1.89.
5. Momentum and Trend Analysis
With a relative strength index (RSI14) registering at 83, Eli Lilly could be considered in an overbought situation. This is also supported by a MACD (3-month) of 24.11, reflecting a bullish trend.
6. Support, Resistance, and Stop-Loss
The stock's support and resistance levels are marked at $526.23 and $599.3 respectively, with a determined stop-loss level at $578.72.
7. Target Predictions and Consensus
The median target expected by several analysts for LLY is $396, a figure significantly less than its present price; however, there is a clear consensus to 'Buy' among market analysts.
8. News Impact and Outlook
Recent news about Eli Lilly reflects positively on the stock. The view that Eli Lilly is a potential game-changer in the weight management and cardiovascular health sector, boost from ongoing success of its similar-category incretin drugs tirzepatide and retatrutide, and being one of the S&P 500's best-performing August stocks amplify this sentiment. The collaborative success of Novo Nordisk's Wegovy drug bodes well for Eli Lilly.
9. Discounted Cash Flow (DCF)
Using the discounted cash flow method, the intrinsic value of LLY comes to about $597.54, which is in line with the current stock price.
10. Future Predictions
Based on the prevailing momentum, trends, and market consensus, it is likely that the stock would maintain its bullish stance in the coming trading day on September 14, 2023, and possibly over the next trading week.
11. Final Recommendation
Despite being significantly priced over its median target, the ongoing market interest, success of similar-category drugs, and a strong 'Buy' consensus from market analysts indicate the status of Eli Lilly as a 'Buy'. With current stock price corroborating with the stock's intrinsic value based on DCF analysis, and the stock's performance in line with the consensus view, Eli Lilly as a 'Buy' seems to conform with the overall data and sentiments.
