3 reasons to turn any LLY stock skeptic into a believer

Source: Iryna Imago /

How many reasons do you need to consider Eli Lily (NYSE:THERE IS) Inventory? You can cite Eli Lilly’s financial numbers or the performance of stocks at a time when other assets were losing value.

Or, you could consider Eli Lilly’s dividends and extensive clinical pipeline. Either of these reasons should be enough to turn any skeptic into a believer.

Eli Lilly is one of those companies your parents and grandparents could invest in. They were probably looking for relative safety and slow growth, not quick wins.

But is it possible to achieve low volatility and impressive growth with the same asset? If you’re not sure, check out Eli Lilly’s stats and you’ll see what a “global package” investment looks like.

Summary of LLY actions

First, there is no denying that LLY stock has outperformed many other large-cap stocks in 2022 through mid-November. We found that stocks had gained 33% year-to-date to November 18 – not too bad in a year of “sticky” inflation and recession threats.

However, this price growth has not come at the expense of safety. Eli Lilly shares have a five-year monthly beta of 0.36, which means they have generally moved much slower than the broader stock market.

And by the way, income investors should appreciate the fact that Eli Lilly pays out an annual forward dividend yield of 1.11%. Already, this title is starting to look like a “global” investment, isn’t it?

Eli Lilly increased its third-quarter 2022 revenue 2% year-over-year to $6.94 billion, beating Wall Street’s forecast of $6.89 billion. Additionally, the company posted third-quarter adjusted earnings of $1.98 per share, beating analysts’ consensus estimate of $1.91 per share.

Focus on Eli Lilly’s clinical progress

We can talk about dividends and finances all day, but remember what makes Eli Lilly a great company. It all comes down to products that improve people’s health and sometimes even save lives.

For one, the Food and Drug Administration or the FDA has granted Fast Track designation to Eli Lilly’s tirzepatide for the treatment of obesity. Certainly, there is no denying that obesity is a major problem in America. It’s a shame, but tirzepatide targets a market that should remain lucrative in the years to come.

The same could be said of diabetes. To that end, Eli Lilly has obtained regulatory approvals in Europe and Japan for Mounjaro for the treatment of type 2 diabetes.

Additionally, Eli Lilly has submitted lebrikizumab to treat moderate to severe atopic dermatitis in the United States and European Union. Along with all of this, the FDA granted Eli Lilly accelerated approval for Retevmo in certain adults with advanced or metastatic solid tumors.

What you can do now

As you can see, Eli Lilly has a diverse portfolio of products that are currently available or may be available in the near future. Moreover, Eli Lilly is financially sound and the company offers investors a decent dividend.

In summary, LLY stock has provided excellent returns in 2022 without too much volatility. Today, nothing prevents the company from maintaining its track record of creating exceptional shareholder value.

You are therefore invited to consider an investment in Eli Lilly today.

As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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