Down Nearly 20%: Should You Buy the Dip on Eli Lilly?
For a while, it seemed as if Eli Lilly (NYSE: LLY) could do no wrong. Its shares skyrocketed. The company's market cap grew so much that it was within striking distance of the $1 trillion mark. Along the way, Lilly became the largest healthcare company in the world based on market cap.However, the situation isn't so rosy for Eli Lilly now. The big pharma stock has fallen nearly 20% below its peak set last year. Some dark clouds hover on the horizon. Should you buy Lilly on the dip?There isn't just one factor behind the decline in Lilly's share price. However, the biggest issue for the drugmaker is a common one for high-flying stocks: Lilly didn't meet Wall Street estimates. Unfortunately, the company has failed to deliver the results analysts expected in two out of the last three quarters.Continue reading
For a while, it seemed as if Eli Lilly (NYSE: LLY) could do no wrong. Its shares skyrocketed. The company's market cap grew so much that it was within striking distance of the $1 trillion mark. Along the way, Lilly became the largest healthcare company in the world based on market cap.
However, the situation isn't so rosy for Eli Lilly now. The big pharma stock has fallen nearly 20% below its peak set last year. Some dark clouds hover on the horizon. Should you buy Lilly on the dip?
There isn't just one factor behind the decline in Lilly's share price. However, the biggest issue for the drugmaker is a common one for high-flying stocks: Lilly didn't meet Wall Street estimates. Unfortunately, the company has failed to deliver the results analysts expected in two out of the last three quarters.
