A key resistance level has emerged in the chart of Elanco Animal Health Inc. (ELAN). If this level is surpassed, a breakout could occur…
Elanco Animal Health, Inc. (ELAN) is an animal health company that is engaged in innovating, developing, manufacturing, and marketing products for companion and food animals. It offers a range of food animal products used in cattle, sheep, goats, and swine production.
The company has benefited from secular growth in the animal health industry. It recently acquired Bayer Animal Health to diversify its portfolio and increase its reach. In the most recent quarter, ELAN saw market share gains in their US Pet Health retail business and better than expected performance in China.
ELAN has a healthy balance sheet with a current ratio of 1.7, indicating it has enough liquidity to handle short-term gains. It also has a low debt to equity ratio of 0.7. Sales were up 6.6% over the past year and analysts forecast a revenue gain of 74.7% this quarter.
The stock is trading at a fairly high multiple with a forward P/E of 31.95. While it has shown negative momentum over the past five days, the stock is up almost 10% over the past month.
Take a look at the 1-year chart of ELAN below with added notations…
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