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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 $867.6 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. As one of the world's leading pharmaceutical companies, LLY has established a robust and diversified product portfolio, featuring a strong array of recently launched, successful medications.
Despite its notable strength, Eli Lilly slipped 6.9% from its 52-week high of $972.53, achieved on Aug. 22, 2024. Over the past three months, LLY stock gained 14.8%, outperforming the Nasdaq Composite’s ($NASX)2.7% dip during the same time frame.
In the longer term, shares of Eli Lilly rose 17.3% on a YTD basis and climbed 18.3% over the past 52 weeks, outperforming NASX’s YTD losses of 4% and 15.7% returns over the last year.
To confirm the bullish trend, LLY has been trading above its 50-day moving average since late January. It is trading above its 200-day moving average since early February.
Eli Lilly's recent outperformance can be attributed to its acquisition of Organovo Holdings, Inc.’s (ONVO) FXR program and price cuts for its Zepbound weight loss drug. With strong revenue growth driven by tirzepatide, LLY's diversified portfolio includes blockbuster medicines in oncology and immunology, as well as promising new products like Kisunla and Ebglyss. This positions LLY for continued success beyond its diabetes and weight loss products.
On Feb. 6, LLY shares closed up more than 3% after reporting its Q4 results. Its revenue of $13.5 billion missed the consensus estimates of $13.6 billion. The company’s adjusted EPS was $5.32, exceeding analyst estimates of $5.08.
Eli Lilly’s rival, Johnson & Johnson (JNJ) shares lagged behind the stock, with a 13.2% gain on a YTD basis and a 1.7% return over the past 52 weeks.
Wall Street analysts are bullish on LLY’s prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $1003.78 suggests a potential upside of 10.9% from current price levels.
