We recently published 10 Stocks On Jim Cramer’s Radar Including Big Tech Firms. Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer recently discussed.
Eli Lilly and Company (NYSE:LLY) hasn’t been doing well on the stock market lately. The shares have lost 21% over the past month, primarily on the back of a 16% drop in August after the firm’s latest earnings. Cramer discussed why Eli Lilly and Company (NYSE:LLY)’s shares fell even though it posted a strong report, and mentioned CEO David Ricks’ comments regarding its weight loss pill trial. One reason the stock fell was that while investors were expecting the pill to cut weight by 14.5%, Eli Lilly and Company (NYSE:LLY)’s results showed a 12.4% reduction instead:
“Yeah and I think that when Dave was on he defended it by saying, the drop out, what really what we’re comparing it to is the placebo. Where there’s bigger dropout. And look, I love Dave, I think he’s great. But I think that what he’s comparing is not what Wall Street is looking for. And this is really just a case for, everything what Dave Ricks said was right, good chance it’s going to be approved, and, by the way, it’s tolerated well and but the fact is this that there is a whisper that I want people at home to, there’s a whisper in all this.
“Wall Street was really wrong. Really really wrong. I mean like I’m talking about, I’d like to know, who created the notion that this thing was going to be 14.50. Because I’ve got to tell you something, I think that if you were close to this, you would have this nailed. And I think the analysts, I think are the ones who are, need to be called to question.
“[On how healthcare stocks weren’t doing well] And then you had Lilly, which was the outlier and now Lilly’s no longer the outlier. It’s interesting that now you have a price-to-earnings multiple of Lilly that is no longer Palantir like, little exaggerated . . .but Eli Lilly’s joined the scrum of drug companies and that’s what I think happened today. It’s now part of the scrum.”
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Disclosure: None. This article is originally published at Insider Monkey.
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