High growth momentum strategies try to identify companies where earnings and sales are not only growing, but also showing signs of acceleration, then confirm the story with technical strength. The screen behind this analysis applies a High Growth Momentum Rating of at least 4, a Technical Rating above 7, and a Setup Rating at the required minimum of 7. ELI LILLY & CO (NYSE:LLY) clears all three hurdles, with a High Growth Momentum Rating of 7, a Technical Rating of 8, and a Setup Rating of 7.
A growth score that rewards consistency
The High Growth Momentum Rating is not a simple year-over-year growth check. It combines trailing and forward EPS and sales growth, quarterly acceleration, free cash flow growth, profitability, earnings surprises and analyst revisions into a single score. A rating of 6 or higher is already considered solid, so LLY's score of 7 points to a company with the kind of earnings momentum that high growth investors typically look for.
The underlying numbers support that conclusion:
- EPS (TTM) of $31.49, up 95.0% from the prior year period
- Revenue growth of 49.6% over the trailing 12 months
- Latest quarter EPS growth of 32.8% year over year, following 156.0% growth in the previous quarter
- Latest quarter sales growth of 47.7% year over year, following 55.5% growth in the previous quarter
- Four consecutive EPS beats, with an average beat of 24.8%
- Four consecutive revenue beats, with an average beat of 9.1%
- Free cash flow per share of $14.40, with FCF growth of 473.7%
- Full-year profit margin expanded to 31.7% from 23.5% in the prior year
Not every component is perfect. Next-year EPS estimates have been revised lower by 5.5% over the past three months, while next-year revenue estimates are up 1.9%. That likely keeps the High Growth Momentum Rating from scoring even higher, but it does not erase the strength of the recent earnings and revenue surprises.
Technical strength with a defined entry
Earnings momentum alone is rarely enough. A fast-growing company can still be a poor trade if the stock is extended and the risk/reward is unattractive. That is why the screen also requires a strong technical rating and a meaningful setup pattern. LLY brings both.
The technical report assigns LLY a Technical Rating of 8, reflecting a broadly healthy chart, and a Setup Rating of 7, indicating that price has been consolidating rather than chasing a straight move higher. Some of the key technical observations include:
- Long-term trend is positive, while the short-term trend is neutral
- Relative strength of 94.3, meaning LLY outperforms 94% of all stocks on a yearly basis
- LLY also outperforms 80% of stocks in the Pharmaceuticals industry
- Recent trading range is roughly 1109.15 to 1232.00, with the stock currently in the middle of that range
- A resistance zone sits just above the current price at 1235.56 to 1235.57
- A support zone runs from 1098.57 to 1171.66, providing a reference point for stop placement
- A recent Pocket Pivot signal adds another accumulation clue
The consolidation near the middle of the recent range gives traders a clearly defined breakout level. The suggested approach would be a buy stop above the resistance zone at 1235.58, with a stop loss near 1109.14, putting the worst-case loss at roughly 10.23% from the suggested entry. Investors who want to examine the moving averages, support, and resistance behind this setup can review the detailed technical analysis report.
Why this combination matters for the strategy
The value of combining high growth momentum with a technical setup is that it addresses two separate questions: which stocks have the earnings and sales acceleration to lead, and when is the chart offering a reasonable entry point. A stock can have impressive growth but be too extended to buy. Conversely, a stock can have a clean technical setup but lack the fundamental momentum to drive a sustained move.
LLY is interesting because it scores well on both sides. The earnings history, revenue growth, margin expansion, and consistent beats give it the fundamental momentum that growth screens are designed to capture. The technical picture adds a consolidation phase, a clear resistance level, and a defined risk framework, which are exactly the ingredients that breakout-oriented strategies need.
Additional confirmation from related growth screens
LLY also appears in other screens built around the same growth-plus-technical formula.
- A spot in CAN SLIM style screening confirms that LLY brings the high-growth momentum and technical leadership that CAN SLIM investors look for.
- The Minervini approach similarly flags LLY for strong fundamental growth alongside technical strength.
Together, these screens reinforce the core case: LLY is a repeat qualifier for broader growth-and-technical frameworks, not just a single-screen outlier.
The bottom line
For investors who follow CANSLIM-style or Minervini-style approaches, LLY combines the earnings momentum that drives institutional interest with the technical structure that allows for a controlled entry. It is not a perfect score on every measure, but the overall picture is one of a high-growth company that is currently pausing near resistance rather than racing away from it. Investors who want to run this same methodology across the broader market can find more stocks with a similar combination of high growth momentum and technical setup via this screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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Eli Lilly (NYSE:LLY) Pairs High Growth Momentum with a Defined Breakout Setup
High growth momentum strategies try to identify companies where earnings and sales are not only growing, but also showing signs of acceleration, then confirm the story with technical strength. The screen behind this analysis applies a High Growth Momentum Rating of at least 4, a Technical Rating above 7, and a Setup Rating at the required minimum of 7. ELI LILLY & CO (NYSE:LLY) clears all three hurdles, with a High Growth Momentum Rating of 7, a Technical Rating of 8, and a Setup Rating of 7.
A growth score that rewards consistency
The High Growth Momentum Rating is not a simple year-over-year growth check. It combines trailing and forward EPS and sales growth, quarterly acceleration, free cash flow growth, profitability, earnings surprises and analyst revisions into a single score. A rating of 6 or higher is already considered solid, so LLY's score of 7 points to a company with the kind of earnings momentum that high growth investors typically look for.
The underlying numbers support that conclusion:
Not every component is perfect. Next-year EPS estimates have been revised lower by 5.5% over the past three months, while next-year revenue estimates are up 1.9%. That likely keeps the High Growth Momentum Rating from scoring even higher, but it does not erase the strength of the recent earnings and revenue surprises.
Technical strength with a defined entry
Earnings momentum alone is rarely enough. A fast-growing company can still be a poor trade if the stock is extended and the risk/reward is unattractive. That is why the screen also requires a strong technical rating and a meaningful setup pattern. LLY brings both.
The technical report assigns LLY a Technical Rating of 8, reflecting a broadly healthy chart, and a Setup Rating of 7, indicating that price has been consolidating rather than chasing a straight move higher. Some of the key technical observations include:
The consolidation near the middle of the recent range gives traders a clearly defined breakout level. The suggested approach would be a buy stop above the resistance zone at 1235.58, with a stop loss near 1109.14, putting the worst-case loss at roughly 10.23% from the suggested entry. Investors who want to examine the moving averages, support, and resistance behind this setup can review the detailed technical analysis report.
Why this combination matters for the strategy
The value of combining high growth momentum with a technical setup is that it addresses two separate questions: which stocks have the earnings and sales acceleration to lead, and when is the chart offering a reasonable entry point. A stock can have impressive growth but be too extended to buy. Conversely, a stock can have a clean technical setup but lack the fundamental momentum to drive a sustained move.
LLY is interesting because it scores well on both sides. The earnings history, revenue growth, margin expansion, and consistent beats give it the fundamental momentum that growth screens are designed to capture. The technical picture adds a consolidation phase, a clear resistance level, and a defined risk framework, which are exactly the ingredients that breakout-oriented strategies need.
Additional confirmation from related growth screens
LLY also appears in other screens built around the same growth-plus-technical formula.
Together, these screens reinforce the core case: LLY is a repeat qualifier for broader growth-and-technical frameworks, not just a single-screen outlier.
The bottom line
For investors who follow CANSLIM-style or Minervini-style approaches, LLY combines the earnings momentum that drives institutional interest with the technical structure that allows for a controlled entry. It is not a perfect score on every measure, but the overall picture is one of a high-growth company that is currently pausing near resistance rather than racing away from it. Investors who want to run this same methodology across the broader market can find more stocks with a similar combination of high growth momentum and technical setup via this screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »