This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Rocket Stocks to Buy in October

Stocks in this article: PCLN V LLY DIS IBM

Eli Lilly

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

For dividend seekers, pharmaceutical company Eli Lilly (LLY) has a payout worth watching. Right now, the $56 billion big pharma firm pays a 4.06% dividend yield broken up into four quarterly 49-cent payouts. But that's not why this stock makes our list of Rocket Stock names; instead, we've got rising analyst expectations to thank for that.

>>5 Stocks Under $10 Set to Soar

Eli Lilly is no stranger to blockbuster drugs; the firm's patent list includes names like depression drug Cymbalta and ED pill Cialis, the types of recognizable names that are must-haves for a big pharma firm. But more important, a hefty pipeline of attractive late stage therapies bodes well for investors in the next few years. With the patent expiration cliff still causing a lot of anxiety in pharma investors (and in part spurring the huge dividend yields in the industry right now), that pipeline is quickly becoming more important than the existing drugs are.

And Eli Lilly has the wherewithal to continue developing those new offerings. The firm currently sports more than $11 billion in cash and investments on its balance sheet, offsetting around $5.5 billion in debt. With cash making up around 20% of LLY's market cap, the risks of investing in this name are hugely diminished as long as this stock can keep borrowing money at lower rates than its returns on capital.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs