Eli Lilly and Monday.com: Stocks to Watch for Growth Potential

The report highlights two compelling growth stocks: Eli Lilly, with strong long-term prospects despite a slight dip in guidance, and Monday.com, showing impressive revenue growth and customer retention. Investors may find opportunities amidst market reactions.

Date: 23-11-2024

AI Rating: 6

This report discusses two potential investment opportunities, Eli Lilly and Monday.com, highlighting key metrics that may influence their stock prices.

Eli Lilly (NYSE: LLY)

The report indicates that Eli Lilly experienced a significant share price increase of approximately 62% over the past year. However, following its third-quarter earnings report, shares fell due to a pullback in its full-year revenue guidance and results that were below analyst expectations. Specifically, the company projected revenue between $45.4 billion and $46 billion, a slight decrease from previous expectations.

Despite this drop in guidance, Eli Lilly achieved a year-over-year revenue increase of 20% in Q3 to $11.4 billion. Removing the revenue from the sold olanzapine portfolio, the company's revenue growth soared to 42%. The net income reported for Q3 was around $970 million, indicating strong profitability despite the pullback in guidance.

Monday.com (NASDAQ: MNDY)

On the other hand, Monday.com shows robust growth prospects with a 33% revenue increase to $251 million in Q3. The report highlights that the net dollar retention rate reached 111%, with a notable 44% rise in paid customers over $100,000 in annual recurring revenue. This suggests strong customer loyalty and effective up-selling efforts.

Moreover, Monday.com generated $82.4 million in free cash flow, indicating healthy cash management, while its net cash from operating activities stood at $86.6 million, reflecting efficient operational performance.

Overall, while Eli Lilly faces short-term challenges, its strong revenue growth and profitability metrics display potential for long-term recovery. Conversely, Monday.com’s impressive revenue and customer metrics suggest a growing business that could thrive in a competitive market.

Stocks: LLY MNDY