Trade-Ideas: Eli Lilly And Company (LLY) Is Today's Pre-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Eli Lilly and Company ( LLY) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Eli Lilly and Company as such a stock due to the following factors:

  • LLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $233.1 million.
  • LLY traded 22,950 shares today in the pre-market hours as of 8:00 AM.
  • LLY is up 3.9% today from yesterday's close.

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More details on LLY:

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. The stock currently has a dividend yield of 3.9%. LLY has a PE ratio of 12.1. Currently there are 6 analysts that rate Eli Lilly and Company a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Eli Lilly and Company has been 5.4 million shares per day over the past 30 days. Eli Lilly and has a market cap of $57.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.43 and a short float of 2% with 4.46 days to cover. Shares are up 2.7% year to date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • 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. Compared to other companies in the Pharmaceuticals industry and the overall market, LILLY (ELI) & CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for LILLY (ELI) & CO is currently very high, coming in at 86.13%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.63% is above that of the industry average.

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

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