Eli Lilly And Company Stock Buy Recommendation Reiterated (LLY)

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, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen 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.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Pharmaceuticals industry and the overall market, LILLY (ELI) & CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and has a market cap of $59.0 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 13.00, below the S&P 500 P/E ratio of 18.00. Shares are up 4.2% year to date as of the close of trading on Wednesday.

You can view the full Eli Lilly and Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Boeing Slides as China Premier Li Says Willing to Continue Talks With Airbus

Boeing Slides as China Premier Li Says Willing to Continue Talks With Airbus

US Auto Tariffs Would Hit Global Industry Ratings; Ford & GM Vulnerable- Moody's

US Auto Tariffs Would Hit Global Industry Ratings; Ford & GM Vulnerable- Moody's

Futures Fall on Further Trade News and 4 Other Stories to Watch Monday Morning

Futures Fall on Further Trade News and 4 Other Stories to Watch Monday Morning

Trump, Trade Wars, General Electric, 'Jurassic World' - 5 Things You Must Know

Trump, Trade Wars, General Electric, 'Jurassic World' - 5 Things You Must Know

Stocks Weaken Around The World as Trump Opens New Fronts in Global Trade War

Stocks Weaken Around The World as Trump Opens New Fronts in Global Trade War