Next best healthcare after LLY

Screening Filters

1. Market Cap ≥ $50,000,000,000 (Large Cap Only)

   • Purpose: Restrict results to very large, established healthcare companies.
   • Rationale: Eli Lilly (LLY) is a mega-cap pharma/biotech leader. By setting a minimum market cap of $50B, the screener looks for peers that are similarly scaled, globally relevant, and more likely to have diversified product portfolios, robust pipelines, and institutional ownership—i.e., “next best healthcare stock” in the same league, not small speculative names.

2. PriceAboveMA200 (Price above 200‑day moving average)

   • Purpose: Focus on stocks in established uptrends or at least not in prolonged downtrends.
   • Rationale: LLY has been a strong momentum/growth name. A price above the 200‑day moving average is a classic technical filter to capture stocks that are either in bullish trends or technically healthy. This helps ensure candidates are not in deep corrections or bear phases, aligning with the idea of a “next best” quality healthcare leader rather than a turnaround play.

3. Sector: Healthcare, Pharmaceuticals & Medical Research

   • Purpose: Confine the search to the same broad space as Eli Lilly.
   • Rationale: LLY operates in healthcare with a focus on pharmaceuticals and medical research. Limiting the sector to Healthcare / Pharmaceuticals & Medical Research ensures that results are true peers (drug developers, medical research-driven firms, and healthcare-related companies) instead of unrelated industries.

4. Industry: Biotechnology & Medical Research, Healthcare Equipment & Supplies, Pharmaceuticals

   • Purpose: Narrow down to the most relevant sub-industries around LLY’s domain.
   • Rationale: Eli Lilly is primarily in Pharmaceuticals and Biotech/Medical Research. Including Biotechnology & Medical Research and Pharmaceuticals directly targets similar business models—patent-driven drugs, clinical pipelines, and R&D-heavy operations. Including Healthcare Equipment & Supplies adds large-cap healthcare names with medical products exposure, broadening the opportunity set slightly while still staying within what most investors consider “core healthcare leaders.”

5. Net Margin ≥ 15%

   • Purpose: Ensure strong profitability and operational efficiency.
   • Rationale: LLY is known for high margins typical of successful pharma/biotech firms. A minimum 15% net margin filters for companies with robust pricing power, efficient cost structures, and strong business quality. This tilts the results towards mature, profitable franchises rather than early-stage or struggling healthcare names.

6. EPS 5‑Year CAGR ≥ 15%

   • Purpose: Focus on companies with strong historical earnings growth.
   • Rationale: Part of LLY’s appeal is its strong earnings growth trajectory, driven by successful drugs and pipeline progress. Requiring at least 15% compound annual EPS growth over 5 years targets companies that have not just been profitable, but consistently growing profits at a healthy rate—key for anyone looking for a “next best” growth-oriented healthcare stock, not a slow, ex-growth defensive.

7. One‑Month Predicted Return ≥ 0

   • Purpose: Exclude stocks where the model expects near-term underperformance.
   • Rationale: While no prediction model is perfect, a non-negative one-month predicted return means the screener avoids names the model flags as likely short-term losers. This is a light, tactical filter to reduce candidates that might be facing immediate headwinds, consistent with an investor wanting a reasonably favorable near-term outlook when considering a new purchase.

Why Results Match:

• The filters target large, high-quality, profitable, and fast-growing healthcare names, which mirrors Eli Lilly’s profile as a leading growth pharma/biotech company.
• Sector and industry constraints ensure you only see true healthcare peers, while profitability and EPS growth constraints aim to replicate the financial strength and growth characteristics that make LLY attractive.
• The technical (PriceAboveMA200) and predicted-return filters bias the list toward stocks already showing strength or stability, rather than deep value/turnaround plays, aligning with the idea of “the next best healthcare stock” rather than speculative bets.