I Like Eli Lilly, But I Like It Better At The $130 Level
Rick Pendergraft - Jun. 10, 2020
* Eli Lilly has strong fundamental indicators,
especially the ROE and the earnings growth.
* The stock is in an upward trend and closer
to overbought than oversold.
* Sentiment toward the stock is more bearish
than it should be.
After the big rally off the March lows, I am running into the same
scenario with many stocks - I like them, but I would like to own
them at a better entry price. Over the last few weeks, I have
looked at so many stocks where the fundamentals look good,
and there is some sense of pessimism from the sentiment
indicators, but the stock has run up so much in the last few
months that I don't think it's a good time to buy the stock.
How I Suggest Playing Eli Lilly Currently
I think I made it pretty clear with the title of the article that I am
bullish on Eli Lilly. The fundamentals are strong, the stock is
trending higher, and there is enough skepticism to help push
the stock higher.
If you already own the stock, congratulations - you own a good
stock on a good company, and unless you bought in the last few
weeks, you are probably sitting on gains. If you don't own the
stock yet, you can sit back and wait to see if the stock drops
back down a little, but that doesn't gain you anything in the
interim.
More at: seekingalpha.com
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