Eli Lilly (LLY) – Pharma Giant at a Key Price LevelHi,
Eli Lilly & Co. is one of the world’s largest pharmaceutical companies, founded in 1876 and headquartered in Indianapolis. It operates in over 125 countries and is best known for blockbuster treatments in diabetes, obesity, oncology, and immunology. Recent growth has been driven largely by its GLP-1 class drugs Mounjaro and Zepbound, which have quickly become industry leaders in the weight-loss and diabetes markets.
Recent Fundamentals (Q2 2025)
Revenue: $15.56 B (+38% YoY)
- EPS: $6.31 (beat expectations)
- Mounjaro sales: $5.2 B
- Zepbound sales: $3.38 B
- Full-year guidance: Revenue $60–62 B, EPS $21.75–$23.00
- Margins: Gross margin ~82.6%, net margin ~25.9%
- Profitability: ROE ~75.5%, ROIC ~29.6%
While fundamentals remain strong, the recent Phase III data for the oral weight-loss pill orforglipron came in below expectations, sparking a ~14% drop, the stock’s steepest one-day decline in decades. Analysts have since trimmed long-term sales forecasts for this product.
From a valuation perspective, the stock trades at a premium (~41× P/E, ~10.7× P/S), leaving little room for major disappointments.
Technicals
Technically speaking, the price has arrived in the zone where I’ve been patiently waiting to share it as an idea. This is a good area from where to start building positions if you’re interested.
There are quite a few technical confluence factors aligning here, but be ready to grab it also around $500 if the market offers it. Let that be your guide:
- If you’re not willing to hold long-term, don’t touch it.
- If you’re not willing to buy more at lower prices, don’t touch it.
Good luck,
Vaido
