Think Eli Lilly's Stock Is Expensive? Here's Why Selling It Now Could Be a Huge Mistake

Investors should never ignore valuations when picking stocks. The price a stock trades at can drastically impact your overall returns. A metric such as the price-to-earnings (P/E) ratio can be helpful in enabling you to easily gauge how expensive or cheap a stock is.In some cases, however, it can make sense to buy a stock that's trading at a seemingly high P/E multiple simply because of its fantastic growth prospects. If you wait for a top growth stock to come down to a P/E of 20 or less, you may end up waiting forever and missing out on the opportunity completely.Below, I'll make the case for why pharma giant Eli Lilly (NYSE: LLY) still looks like a great buy right now -- even though it trades at a P/E of more than 70 -- and why selling the healthcare stock could be a mistake.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool