Eli Lilly Stock: Is It Still a Buy at $1,400?
The company just released some incredible quarterly results, but its valuation is also fairly high.
Eli Lilly stock recently reached an all-time high of over $1,400, signaling strong growth potential for the healthcare company. The latest quarterly numbers revealed impressive year-over-year growth, with revenue reaching $24.4 billion, a 39% increase from the previous period. However, the company's high valuation may have already priced in significant growth, making it riskier for investors.
The revenue from Eli Lilly's GLP-1 products, Mounjaro and Zepbound, accounted for roughly two-thirds of the company's total sales, amounting to $16.1 billion. Management has revised its full-year guidance to $91 to $92 billion, but lowered earnings-per-share guidance by $0.50 to between $35 and $36. Given the stock's 45 times trailing earnings ratio, a considerable portion of future growth may already be priced in, limiting potential upside and increasing risk.
While Eli Lilly remains a potential long-term investment, investors should approach the stock cautiously and manage their expectations for near-term performance.
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