Eli Lilly Remains an Equities Outlier

LLY is the world’s most valuable healthcare company, having created medicines that provide benefits for diabetes, oncology, immunology, neuroscience, and more. The company recently received regulatory approval for a new Alzheimer’s treatment (Kisunla) and is a market leader in obesity treatments with its Zepbound and Mounjaro products. LLY’s pipeline is also promising, as is its use of AI in drug development.

On the financial side, the company has a market capitalization of more than $800 billion and has outperformed the broader market over the past 15 years by 11.5% on an annualized basis. LLY’s total revenue hit $8.8 billion, a 26% jump from the same quarter a year prior, and net income spiked 67% on a year-over-year basis to $2.2 billion.

It’s no wonder LLY shares are up 54% 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 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 growth and profits:

• 3-year sales growth rate (+11.9%)
• Profit margin (+15.4%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +40%.

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 five years. The blue bars below show when LLY was a top pick…soaring with time:

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.