Eli Lilly: Right Industry, Wrong Price


  • Eli Lilly currently has a forward P/E of over 45x.
  • This high valuation is much higher than the sector average.
  • A pair trade between XPH and LLY is proposed.
Eli Lilly and Company World Headquarters. Lilly makes Medicines and Pharmaceuticals.



I give Eli Lilly (NYSE:LLY) a sell rating. While I am bullish on the pharmaceutical space due to the rocky times in the future, I cannot be bullish on Eli Lilly due to its valuation.

Eli Lilly five-year stock

Name Symbol % Assets
Axsome Therapeutics, Inc. (AXSM) 8.56%
Cassava Sciences, Inc. (SAVA) 5.11%
Elanco Animal Health Inc. (ELAN) 4.74%
Johnson & Johnson (JNJ) 4.60%
Catalent, Inc. (CTLT) 4.57%
Bristol-Myers Squibb Company (BMY) 4.57%
Pfizer Inc. (PFE) 4.49%
Perrigo Company PLC (PRGO) 4.23%
Corcept Therapeutics Inc. (CORT) 3.94%
Nektar Therapeutics (NKTR) 3.88%

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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