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Is Eli Lilly Stock a Buy Now?

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Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
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Eli Lilly and Company stocks have been trading up by 3.65% as promising clinical trial results boost investor confidence.

Key Developments:

  • CFRA continues to recommend buying Eli Lilly stock, raising its predicted price to $973. Increasing U.S. restrictions on GLP-1 sales suggest a positive effect on Tirzepatide sales for Eli Lilly. This, alongside the SiteOne Therapeutics acquisition, enhances its pain management portfolio.
  • DBS Bank has revised Eli Lilly’s (LLY) price target down to $900 from $1,010. Despite this downgrade, the bank still holds a “buy” stance, indicating confidence in potential long-term value.
  • Eli Lilly’s Mounjaro, a drug for weight loss and diabetes, has witnessed a 60% increase in sales in India from April to May, highlighting positive market demand.
  • Eli Lilly’s phase 1 trial for treating ovarian cancer using a Folate Receptor-targeted drug exhibited promising results, with a 55% response rate prompting further development into phase 3 trials.

Candlestick Chart

Live Update At 14:32:26 EST: On Tuesday, June 10, 2025 Eli Lilly and Company stock [NYSE: LLY] is trending up by 3.65%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Health and Performance Overview

Traders should always be aware of the risks involved in the market. The key to successful trading is to have a solid strategy and stick to it, focusing on risk management and long-term growth. As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” It’s essential to learn from your trades, both wins, and losses, to improve your approach over time. Trading isn’t just about quick wins; it’s about developing the discipline and mindset necessary to thrive in ever-changing market conditions.

Examining Eli Lilly’s latest financial metrics reveals significant insights. The company’s recent earnings report showcases a robust revenue figure of approximately $45B. On close inspection, a key finding is that Lilly’s gross margin hovers around 81.7%, which contrasts with the wider profit margin of 22.66%. These figures underscore the substantial chunk of revenue costs shaved off when accounting for expenses. The company’s impressive EBIT margin at 28.6% indicates efficient operations, whereas its price-to-revenue ratio of about 15 suggests the current market valuation relative to its sales, hinting it’s on the pricier side.

The valuation measures show a P/E ratio of 62.95, which is noticeably high compared to many peers — a clear marker of investor anticipation regarding Lilly’s growth abilities. Likewise, the price-to-cash-flow ratio stands around 110, translating to leveraged expectations by stakeholders regarding future operating cash flow improvements. Here, it’s critical to consider the recent breakthrough in cancer treatment, which has accelerated Eli Lilly’s stock momentum. Further, the company maintains a significant gearing ratio, with long-term debt-to-equity standing at 2.44, yet it enjoys a high-interest coverage ratio, providing financial flexibility for investments.

More Breaking News

On analyzing its balance sheet, the company carries a significant load of assets, with a total asset figure of $89B balanced against considerable liabilities. Noteworthy is the firm’s investment in research and development, captured at about $4.3B in their income statement. A robust pipeline, including cancer and diabetes drug innovations and promising trial results, might bolster Eli Lilly’s revenue prospects. The anticipated expansions into acquiring SiteOne Therapeutics reveal strategies focused on non-opioid pain management, fostering market confidence in future revenue streams. Overall, these robust initiatives trigger favorable speculations, reflecting consistent growth potential and strategic enhancements.

Analyzing Stock Movement in Light of Recent News

Eli Lilly’s recent swath of activities has set a bull movement within the stock market, spearheaded by strategic acquisitions and commendable drug trial accomplishments. The company’s intent to acquire SiteOne Therapeutics piqued interest since it’s expected to solidify its position in the competitive market of pain management solutions, particularly emphasizing non-opioid approaches. This is crucial amid heightened concerns regarding opioid dependency issues, hence establishing Eli Lilly’s progressive stance toward safer alternatives.

Moreover, the substantial sales leap of Mounjaro in India taps into the geographical expansion narrative, suggesting Eli Lilly can capture massive international market shares. Notably, the trial-derived anti-tumor activity results for ovarian cancer treatment indicate potential success in upcoming clinical stages and, with a successful launch, might significantly add to revenue streams.

The varied investor sentiments regarding price targets, as seen with DBS Bank’s price adjustment, highlight market uncertainties, yet analysis clarifies long-term confidence remains unshaken. This is further fortified by known knowledge of expected EPS performance improvements by intelligent market players like CFRA, solidifying Eli Lilly’s stock as a resilient long-term hold.

Conclusion: Projecting Eli Lilly’s Financial Trajectory

Drawing conclusions from analyzed reports, acquired insights reflect encouraging prospects ahead for Eli Lilly. The cumulative effects of aggressive acquisitions, substantial drug traction, and potential breakouts in the therapeutics field strengthen Eli Lilly’s market positioning. Expect a capillary rise in stock value given consistent product endorsements and strategic debt management. With the profitability ratios and embarked expansive projects, Eli Lilly exhibits strong indicators of an upward trajectory, rendering patient stakeholders with anticipated advantageous returns.

In deciding whether Eli Lilly’s stock aligns favorably with one’s portfolio goals, weighing current valuations against future-growing prospects becomes essential. Traders, while assessing high P/E ratios, should consider trading with foresight on imminent breakthroughs or revenue augmentations, aligned with a long-term strategy to grasp the unfolding opportunities within pharmaceutical breakthroughs. As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.”

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”