The S&P 500 has been stagnant for two months, down just 3% from its June 2 peak, in a triangular consolidation pattern. Healthcare and financials have strongly outperformed since June, with gains of over 14% and 10% respectively, while technology has significantly lagged. Two stocks stand out: Eli Lilly (LLY), which broke through $1,200 resistance after seven months of consolidation, and Enova International (ENVA), an online lending specialist that has risen 136% over twelve months. Eli Lilly shows 31% revenue growth and 43% EPS growth this fiscal year, while Enova projects 18% and 22% revenue growth over the next two fiscal years. Eli Lilly’s August earnings could determine whether the bullish technical setup continues in the near term.
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