Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Eli Lilly and Company (NYSE: LLY) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- Powered by its strong earnings growth of 56.04% and other important driving factors, this stock has surged by 38.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LLY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 53.1% when compared to the same quarter one year prior, rising from $1,011.10 million to $1,548.00 million.
- LILLY (ELI) & CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LILLY (ELI) & CO reported lower earnings of $3.66 versus $3.90 in the prior year. This year, the market expects an improvement in earnings ($3.90 versus $3.66).
- Along with the stagnant revenue growth, the company underperformed against the industry average of 6.7%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.
- The gross profit margin for LILLY (ELI) & CO is currently very high, coming in at 79.30%. Regardless of LLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LLY's net profit margin of 27.63% compares favorably to the industry average.
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