Wall Street analyst estimates
In 4Q16, Eli Lilly and Company (LLY) surpassed Wall Street analysts’ revenue estimate of ~$5.6 billion and reported revenues of ~$5.8 billion. Now, analysts are estimating that Eli Lilly will have EPS (earnings per share) of $0.96 on revenues of $5.2 billion in 1Q17.
The above graph shows analysts’ recommendations for Lilly over the last 12 months.
Eli Lilly stock has risen nearly 4.7% in the last 12 months and nearly 10.0% in 2017 year-to-date. Analysts are estimating that the stock might rise 9.8% over the next 12 months. Analyst recommendations show a 12-month target price of $88.80 per share compared to $80.89 per share on April 19, 2017.
As of April 19, 2017, there are 22 analysts tracking Eli Lilly. Sixteen of them have recommended a “buy” for the stock, and five have recommended a “hold.” One analyst has recommended a “sell.” Changes in analysts’ estimates and recommendations are based on changing trends in the price of a stock and the performance of a company. The consensus rating for Eli Lilly stands at ~2.1, which represents a moderate “buy” for long-term growth investors.
To divest the risk, you can consider ETFs such as the Fidelity MSCI Health Care ETF (FHLC), which holds 2.2% of its total assets in Eli Lilly (LLY). FHLC also holds 8.8% of its total assets in Johnson & Johnson (JNJ), 2.9% in Celgene (CELG), 3.1% in Bristol-Myers Squibb (BMY), and 0.80% in Vertex Pharmaceuticals (VRTX).