Eli Lilly (LLY) as a Long-Term Add Amid Near-Term Headwinds

8 days ago

Mark Ren

"And that's going to lead us to cheap stock number three, which is going to be Eli Lilly, stock ticker LLY. It is one of those healthcare stocks that has lagged the market, facing pricing and margin pressures, yet it presents a buying opportunity on the dip. Eli Lilly has a massive market cap of $757 billion, and over the past 12 months, shares are down 13%. Revenues have hit a record $53.3 billion with operating margins at 32.4%. With a forward PE of 26.4 times and an EV to EBITDA well below its 5-year average, analysts have given a 12-month price target of $947 per share, implying nearly 20% upside. Given the attractive PEG ratio and the company building its pipeline, it seems like a great time to add to the name."

The speaker outlines a bullish long-term play on Eli Lilly (LLY), emphasizing that despite recent headwinds, its robust revenue growth, premium margins, and attractive valuation multiples make it an appealing buy. The recommendation is to consider adding to positions on the dip as the company invests heavily in its future pipeline.

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