Eli Lilly and Company (LLY): What Are The Future Prospects?
Based on the latest analyst predictions, Eli Lilly and Company (NYSE:LLY) is estimated to considerably grow its earnings by 95.15% in the upcoming three years. At a current EPS of $2.316, this growth rate means shareholders can expect an impending EPS of $4.519. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for LLY
How is Eli Lilly going to perform in the future?
According to the analysts covering the company, in a few years should bring some good growth prospects for Eli Lilly. Expectation of stock’s 19 analysts is high, with earnings expected to rise from today’s level of $2.316 to $4.519 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 95.15% over the next few years, which is an optimistic outlook in the near term. In the same period revenue is predicted to grow from $22,005M to $24,243M and profit is predicted to rise from $2,447M to $4,775M in the next couple of years, roughly growing 2x. Moreover, future margins are predicted to be a respectable 19.90%.
Is the growth built on solid basis?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. However, LLY’s earnings growth in the past couple of years has been negative at -12.79%. Although its past performance does not bolster the expected positive growth, it could also mean LLY is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
Next Steps:
For LLY, there are three relevant aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is LLY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LLY is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of LLY? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
