For Immediate Release
Chicago, IL – July 29, 2024 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2310243/is-eli-lillys-stock-in-a-bubble
Is Lilly's Stock in a Bubble?
Welcome to Episode #410 of the Zacks Market Edge Podcast.
- (1:00) - Breaking Down Eli Lilly’s Performance: Is It Still Worth Buy Right Now?
- (11:30) - Taking A Look At The Competition: Is Their Valuation More Attractive?
- (17:20) - Episode Roundup: LLY, NVO
- Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to discuss Eli Lilly and its incredible stock run over the last five years.
Is it a bubble?
Definition of a Bubble
Reminder, just because an asset goes up in price doesn’t mean it’s in a bubble. Even if that asset hits new highs day after day, that doesn’t mean it’s a bubble.
A “bubble” usually has other indicators outside of a new high price. Those can include speculation, fraud, and a belief that the price will NEVER go lower, among other things.
Shares of Eli Lilly Soar to New Highs
It’s been a wild five years for Eli Lilly’s stock. It’s up 656% during that period versus 78.4% for the S&P 500.
But because of its big move, many have been asking: is it in a bubble?
Tracey takes a closer look at Eli Lilly, and its competitor, Novo Nordisk.
Eli Lilly and Novo Nordisk: Too Hot to Handle?
1. Eli Lilly & Co. LLY
Shares of Eli Lilly are up 41% year-to-date as earnings and sales are expected to soar this year. However, shares are off the recent all-time highs on worries about competitors in the weight loss drug space.
Earnings are expected to jump 118% in 2024 and 41% in 2025. Eli Lilly’s forward P/E has fallen in the last month, along with the shares, and is now at 62x.
Is Eli Lilly a bubble?
2. Novo Nordisk NVO
Novo Nordisk is the maker of the drug Ozempic, which can be used for weight loss. Shares of Novo Nordisk are up 23.6% year-to-date but have fallen 10% in the last month.
Earnings are expected to rise 25% in 2024 and another 28.6% in 2025. That is not quite as hot as Eli Lilly. However, Novo Nordisk trades at just 38x forward earnings.
Is Novo Nordisk a bubble?
What else do you need to know about Eli Lilly and bubbles?
Tune into this week’s video podcast to find out.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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