Eli Lilly Stock Rides A 5-Day Winning Streak To An 11% Gain
Eli Lilly (LLY) stock has risen for 5 consecutive trading days, gaining 11.3% over that stretch. That added about $128.5 billion to the company’s market value, which now stands at about $1.26 trillion. The stock closed at $1,417.54 on Friday, October 30, its highest close of the past year.
How The Streak Stacks Up Against The S&P 500
Returns for LLY and the S&P 500 over the streak and the periods around it, all ending Friday, October 30 and including dividends:
| Return Period | LLY | S&P 500 |
|---|---|---|
| 1 Day | 3.2% | -1.8% |
| 5 Days (Current Streak) | 11.3% | -0.6% |
| 1 Month (21 Trading Days) | 23.3% | -1.1% |
| 3 Months (63 Trading Days) | 26.6% | 0.0% |
| Year To Date | 32.5% | 11.8% |
| 1 Year (252 Trading Days) | 75.3% | 11.3% |
Is This Move About Eli Lilly Or The Market?
The market explains little of this: the S&P 500 lost 0.6% over the same 5 sessions, including dividends, against Eli Lilly’s +11.3%. 11 other S&P 500 stocks are currently on winning streaks of 5 days or longer. Over the past three months the stock is up 26.6%, a window that includes the streak; over the other 58 sessions of that window it was up 13.7%.
Is The Business Keeping Up With The Stock?
On the fundamentals, revenue grew 45.5% over the last twelve months, against a median of 8.0% for S&P 500 Health Care stocks; its operating margin is 51.3%, versus a median of 16.6%; and the stock trades at 45.8 times trailing earnings against a median of 30.8. The business gives the rally real support, with revenue growth above the median and margins above the median.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
For anyone who would rather back the theme than one company, a health care ETF like XLV holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.