Today's Post-Market Laggard: Eli Lilly And (LLY)

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 ( LLY) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Eli Lilly and 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 $173.4 million.
  • LLY is down 2.8% today from today's close.

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More details on LLY:

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. It operates in two segments, Human Pharmaceutical Products and Animal Health Products. The stock currently has a dividend yield of 3.2%. LLY has a PE ratio of 19.5. Currently there are 5 analysts that rate Eli Lilly and a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Eli Lilly and has been 3.7 million shares per day over the past 30 days. Eli Lilly and has a market cap of $68.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.29 and a short float of 2.2% with 7.86 days to cover. Shares are up 21.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Eli Lilly and as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • LLY's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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 gross profit margin for LILLY (ELI) & CO is currently very high, coming in at 82.95%. 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, the net profit margin of 14.86% trails the industry average.
  • LLY, with its decline in revenue, underperformed when compared the industry average of 4.5%. Since the same quarter one year prior, revenues fell by 16.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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