Big Money Returning for Eli Lilly

LLY is the world’s most valuable healthcare company, having created medicines that provide benefits for diabetes, oncology, immunology, neuroscience, and more. A market leader in obesity treatments already, LLY is deriving further from those drugs’ continued development and the use of AI to enhance its treatment pipeline. The company also recently committed to building domestic manufacturing facilities for drug production.

Financially, LLY’s fourth-quarter fiscal 2024 earnings report showed a 45% jump in quarterly revenue and highlighted new products leading a growth charge. The company’s Mounjaro and Zepbound treatments led $3.1 billion in quarterly new products revenue. Per-share earnings for the quarter were $5.32, which is more than double the $2.49 rate from the fourth quarter two years ago.

It’s no wonder LLY shares are up 18% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Eli Lilly Shares Back in Demand

Institutional volumes reveal plenty. Recently, LLY has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in LLY shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with Eli Lilly.

Eli Lilly Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, LLY has had strong sales and earnings growth:

• 3-year sales growth rate (+17.4%)
• 3-year EPS growth rate (+32.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +27.4%.

Now it makes sense why the stock has been powering to new heights. LLY has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Eli Lilly has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last three years. The blue bars below show when LLY was a top pick…climbing higher along the way:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Eli Lilly Price Prediction

The LLY rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in LLY at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.