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Indianapolis, Indiana-based Eli Lilly and Company (LLY) is a leading pharmaceutical company that sells Trulicity, Verzenio and Taltz drugs. The company discovers, develops, and markets human pharmaceuticals. With a market cap of $912.4 billion, LLY’s products include neuroscience, endocrine, anti-infectives, cardiovascular agents, oncology, and animal health products.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and LLY definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the general drug manufacturers industry. Eli Lilly's diversified product portfolio allows it to meet various medical needs and reduce reliance on any single product. Its robust financial performance reflects operational efficiency and effective strategies, providing the stability necessary for investments in research and development, acquisitions, and market expansion.
Eli Lilly slipped 1.6% from its 52-week high of $972.53, which the stock touched on Aug. 22. Over the past three months, LLY stock has gained 15.1%, outperforming the iShares U.S. Pharmaceuticals ETF’s (IHE) 9.2% gains during the same time frame.
In the longer term, shares of Eli Lilly rose 64.1% on a YTD basis and climbed 71.7% over the past 52 weeks, outperforming IHE’s YTD gains of 17.1% and 14% returns over the last year.
To confirm the bullish trend, LLY has traded above its 50-day moving average since early August and above its 200-day moving average over the past year.
LLY’s strong performance is driven by high demand for key drugs like Mounjaro and Zepbound, which exceeded expectations and generated over $4 billion in sales. The company is investing in new manufacturing facilities to meet demand. With approvals for new drugs like Omvoh and Jaypirca, Lilly is expected to continue experiencing growth in the second half of the year.
On Aug. 8, LLY shares closed up more than 9% after reporting its Q2 results. Its adjusted EPS of $3.92 exceeded Wall Street expectations of $2.64. The company’s revenue was $11.3 billion, topping Wall Street forecasts of $9.8 billion.
Eli Lilly’s rival, Johnson & Johnson’s (JNJ) shares lagged behind the stock, with a 6.7% uptick on a YTD basis and a 4.2% gain over the past 52 weeks.
Wall Street analysts are highly bullish on Eli Lilly’s prospects. The stock has a consensus “Strong Buy” rating from the 22 analysts covering it, and the mean price target of $987.13 suggests a potential upside of 3.2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
