![Forgotten pharmaceutical stocks left behind by Eli-Lilly may soon be making a comeback](https://news7g.com/wp-content/uploads/2024/08/107366244-1706618176217-gettyimages-1971421128-pfizer33-780x470.jpeg)
Eli Lilly and Co. (LLY) has gained about 63% this year, outperforming the S&P 500 Pharmaceuticals index by more than 40%. LLY’s strong outperformance is tied to strong underperformance by other popular stocks in its sector. Chart by chart, they may be ready to catch up. Bristol-Myers Squibb Co. (BMY), Johnson & Johnson (JNJ), and Pfizer Inc. (PFE) are three examples of out-of-favor pharmaceutical stocks. All three are in cyclical downtrends. However, their monthly charts show signs of long-term bearish exhaustion. BMY, JNJ, and PFE have long-term oversold bullish trends in their monthly stochastic oscillators, and their monthly MACDs show a significant loss of long-term bearish momentum. This suggests that their cyclical downtrends have matured and that their recent strength could be the start of a long-term turnaround. When plotting LLY against lagging pharmaceutical stocks such as PFE, there is a strong uptrend underway, reflecting outperformance. However, the monthly MACD histogram on this ratio shows a loss of long-term bullish momentum, suggesting that LLY may be losing its solid lead. This, in turn, should favor better relative performance from PFE and other lagging pharmaceutical stocks over the coming year. —Katie Stockton with Will Tamplin Access free research from Fairlead Strategies here. DISCLOSURE: (None) All opinions expressed by CNBC Pro contributors are solely their own and do not reflect the opinions of CNBC, NBC UNIVERSAL, its parent company or its affiliates and may have been previously disseminated by them on television, radio, the internet or other media. THE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO BE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO PURCHASE ANY SECURITIES OR OTHER FINANCIAL ASSETS. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE CONTENT ABOVE MAY NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here to view full disclaimer.