Yahoo Finanza Why Eli Lilly Stock Is Up By 8% Today
Eli Lilly Stock Rallies After Company Publishes Guidance For 2022
Shares of Eli Lilly gained strong upside momentum today after the company updated outlook for this year and provided financial guidance for 2022.
In 2021, Eli Lilly expects to report revenue of $28 billion – $28.3 billion and adjusted earnings of $8.15 – $8.20 per share, compared to the previous estimate of $7.95 – $8.05 per share.
In the next year, Eli Lilly expects to report revenue of $27.8 billion – $28.3 billion and adjusted earnings of $8.50 – $8.65 per share. The guidance exceeded analyst consensus, providing significant support to the stock.
As Eli Lilly’s guidance highlighted growth on the earnings front, traders rushed to buy the company’s shares and pushed Eli Lilly stock from the $250 level to the $270 level. All-time high levels near $276, which were reached back in August, are within reach.
What’s Next For Eli Lilly’s Stock?
At midpoint of its guidance, Eli Lilly expects to report adjusted earnings of $8.58 per share in 2022, so the stock is trading at roughly 31 forward P/E. This is not cheap, but Eli Lilly has shown strong growth, so the company’s valuation looks normal for the current market environment.
While Eli Lilly stock is up by roughly 60% year-to-date, it has a good chance to gain additional upside momentum and get to the test of all-time high levels after the release of strong guidance for the next year as the market remains hungry for growth.
I’d also note that Eli Lilly may attract growth-oriented traders and investors who want to diversify their portfolios and move some capital out of high-growth tech stocks ahead of rate hikes in 2022, which look inevitable at this point.
Healthcare-related stocks in general look well-positioned for such migration of capital in case the Fed sounds too hawkish today and traders begin to trim their positions in leading tech stocks in anticipation of a series of rate hikes in the next year.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
