Eli Lilly stock: buy or sell
Mar 2nd, 2021
Eli Lilly stock brief
- Eli Lilly closed on Monday at $206.47 after scarcely changing a 0.77%.
- The stock is configuring an uptrend pattern since October 2020, when it bottomed at $128.01. This rally marked a 61.29% gain
- Eli Lilly and Company discovers, develops, manufactures, and markets human pharmaceutical products worldwide.
Should I buy Eli Lilly stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $LLY stock a buy?
Currently, Eli Lilly stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that shares price doesn't have upper resistances, and usually it scales fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Eli Lilly can break to all-time highs any time soon, as it only needs to rise a 5.14%. Setup your buy order at $217.09 if you want to trade with this strategy. Place your stop-loss at $195.38
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$217.09||$195.38||10.00%|
Should I sell Eli Lilly stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. As when we have to buy shares, choosing when is appropiate time to sell is not a random decision, and we must adhere our own trading style. When selling, as well as buying, detailed setups are very easy to follow but are only valid for selling stocks you already own, not for shorting $LLY stock
As a golden rule, you should never mantain an open trade that yields higher than expected losses by the time of the buy. The timing to sell shares always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Eli Lilly stock?
Currently, Eli Lilly stock doesn't match any of our preferred sell setups, so if you hold Eli Lilly shares and your operation is in profit probably is not time to sell now
Eli Lilly ratings
In the last 30 days, 5 brokerage ratings were published for Eli Lilly. General sentiment is bullish, with 4 out of 5 posting optimistic outlooks
|Feb 1st, 2021|
|Feb 4th, 2021|
|Feb 12th, 2021|
Eli Lilly stock analysis
Eli Lilly shares started an uptrend in October 2020, and gained an amazing 61.29%. During this uptrend, the price offered some entry points on the breakouts. Latest low was last January, when price bounced at $161.11. Like in all uptrends, price needs to take breath and now price is moving in a range between $217.09 and $161.11
Supports and resistances
The current resistance levels are:
The current support levels are:
The price is trading very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in early February after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Monday was 61.39. Since that level was lost, Eli Lilly stock barely moved a 0.31%
Eli Lilly stock price history
Eli Lilly started trading priced at an adjusted price1 of $0.00 on Jun 1972. Since then, LLY stock surged by -, with an average of 0.00% per year. If you had invested thousand dollars in Eli Lilly stock on Jun 1972, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Eli Lilly stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price predictions based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial data by the company, and usually. If you are a small investor you shouldn't trade based on these projections.
The average price target for Eli Lilly stock calculated from the table below is $225.40. Eli Lilly closed at $206.47 on Monday, so the target price is forecasting a growth by 9.17%.
|Brokerage firm||Price target|
|Feb 1st, 2021|
|Barclays||$190.00 → $232.00|
|Mizuho||$222.00 → $228.00|
|Truist||$200.00 → $215.00|
|Feb 4th, 2021|
|Morgan Stanley||$190.00 → $217.00|
|Feb 12th, 2021|
|Cowen||$195.00 → $235.00|
Earnings and financials
Shareholders event was hosted by Eli Lilly ($LLY) last January after posting the financial report. Eli Lilly posted earnings of $2.75 per share on sales of $7.4 billion. The consensus earnings estimate was $2.35 per share on revenue of $7.3 billion.In contrast, the EPS for the same quarter last year was $1.73, so current EPS means a increase of 58.96%. Looking at revenue, figures skyrocketed a 21.69% compared to $61.1B year over year.
Eli Lilly ($LLY) will host the earnings call mid next April. Estimated for this quarter is $2.19, compared to $2.75 that was reported for Q4.
Eli Lilly performance
|Eli Lilly ($LLY)||-2.20%||42.40%||40.00%|
Please read:The viewpoints expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not know the individual conditions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for education reasons only
Eli Lilly summary
|Monday, March 1st, 2021|
|Day range||$204.78 - $208.24|
|Average true range||$4.75|
|50d mov avg||$189.63|
|100d mov avg||$166.75|
|200d mov avg||$159.58|
|Earnings date||April 22nd, 2021|