Eli Lilly & Co (NYSE: LLY) finished trading on Wednesday at $275.28 +25.90 (10.39%) and +30.79 (12.59%) over the past 5 days.
Lilly announced in a statement that its financial forecast for 2022 was stronger than anticipated, with sales and profit expectations for 2021 also upped by the pharmaceutical behemoth. The firm also mentioned a solid pipeline of projects, which has the potential to fuel future growth.
Consequently, Lilly’s stock rose by more than 10% on December 15. Both short and long term, Lilly is exhibiting a strong and consistent performance compared to the broader market. Notably, compared to the other 257 stocks in the pharmaceuticals industry, LLY is outperforming 95%.
Lilly chart analysis
In particular, Eli Lilly & Co is now trading around its 52-week high, while the S&P500 Index is also performing at new highs, indicating that the stock’s performance is consistent with the market. The firm has been trading in a broad range of $239.47 – $275.54 over the previous month, and it is now trading around the upper end of the price range.
Notably, the pharmaceutical company is trading above its 20, 50, and 200-day simple moving averages, which stock investors often use to identify uptrends. Due to the firm’s recent success and a price above the 20-day simple moving average, it seems as if the firm’s short-term bullish momentum will continue.
Furthermore, the volume has increased recently, ideally what you want to see during a robust upward movement. However, given the recent rapid rise in the stocks price, it may be prudent to wait for a correction or pullback before contemplating an entrance.
The view on Wall Street
As determined by the 10 Wall Street analysts who have provided 12-month price predictions for LLY during the past three months, Eli Lilly & Co stock has a median price goal of $283.70, with a high forecast of $315.00 a low prediction of $265.
Eight TipRanks experts have reiterated their ‘Buy‘ recommendations for LLY in the past three months, while two have recommended ‘Hold.’
It’s noteworthy that none of the analysts advocate to ‘Sell.’ Therefore, most analysts consider Eli Lilly & Co a ‘Strong Buy‘ with an increase of 3.06% from the latest price of $283.70.
Boosted revenue guidance
With the increase in revenue projection to a range between $28 billion and $28.3 billion in 2021, Eli Lilly has increased its prior range of $27.2 to $27.6 billion. The business also estimates sales in the range of $27.8 billion and $28.3 billion in the fiscal year 2022.
According to the firm, the volume growth from key products such as the diabetic treatment Trulicity, the breast cancer therapy Verzenio, and seven other medicines will be responsible for the higher-than-expected revenue rise.
The firm said in the statement that:
“The company is on track to meet its goal of launching 20 new medicines over the 10-year period from 2014 to 2023. Over the last eight years, Lilly has delivered 16 new medicines and plans to launch five more medicines over the next two years.”
In addition, Lilly senior vice president and chief financial officer, Anat Ashkenazi, added:
“We believe the continued uptake of our key growth products – which we expect will account for more than two-thirds of core business revenue in 2022 – coupled with our anticipated upcoming launches will allow Lilly to deliver top-tier, volume-driven revenue growth through at least 2030.”
Following the latest statement, Lilly looks dedicated to long-term growth, investing heavily, funding new launches to ensure it serves more patients in the future and expanding its operational margins.
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