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Welcome to Episode #410 of the Zacks Market Edge Podcast.
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 (LLY - Free Report) and it’s 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.
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.
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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Is Eli Lilly's Stock in a Bubble?
Welcome to Episode #410 of the Zacks Market Edge Podcast.
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 (LLY - Free Report) and it’s 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 - Free Report)
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 - Free Report)
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.