The market has been swinging recently, with the S&P 500 index down 1.5% and the Nasdaq Composite down more than 2% over the past month. Investors are now questioning whether the tech momentum can continue.
Some non-tech stocks have performed well, and Eli Lilly (LLY) is one of them.
Eli Lilly, one of the largest drugmakers in the United States, has been one of the most closely watched names in the health care sector, as demand for new obesity and diabetes drugs lifts the overall sentiment for the industry.
Eli Lilly stock has gained roughly 30% in the past month, with most of the upside coming after the pharmaceutical giant posted third-quarter results that topped expectations and raised its full-year guidance.
Eli Lilly stock is up roughly 36% year to date.
Eli Lilly beats earnings and lifts full-year outlook
On Oct. 30, Eli Lilly reported third-quarter revenue of $17.6 billion, up 54% from a year earlier and beating Wall Street estimates of $16.01 billion. This was driven by volume growth from Mounjaro, Eli Lilly’s diabetes treatment, and Zepbound, its obesity medicine.
Non-GAAP earnings per share came at $7.02, up from $1.18 and beating the $5.69 expected by analysts.
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The company also raised its full-year revenue guidance for 2025 to the range of $63.0 billion to $63.5 billion. Non-GAAP earnings outlook was lifted to between $23.00 and $23.70.
“Lilly delivered another strong quarter, with 54% revenue growth year-over-year driven by continued demand for our incretin portfolio,” said David Ricks, CEO of Eli Lilly.
“We advanced orforglipron through four additional Phase 3 trials, enabling global obesity submissions by year-end, and we achieved U.S. FDA approval of Inluriyo (imlunestrant) —marking key progress across our pipeline,” he added. “We continue to increase manufacturing capacity.”
“Mad Money” host Jim Cramer said Nov. 12 that Eli Lilly will soon become the first pharmaceutical company to reach a $1 trillion market value, CNBC reported.
Last week, Eli Lilly shares topped $1,000 each for the first time. As of Nov. 20, Eli Lilly’s market value is roughly $984 billion. The shares would have to hit approximately $1,058 to reach $1 trillion.
“People are beginning to realize maybe this thing is worth far more,” Cramer said during “Squawk on the Street,” pointing to a recent government deal that will lower prices of some of Eli Lilly’s obesity drugs for Medicare and Medicaid beneficiaries in 2026. This could provide more people with access to the company’s weight-loss drugs.
“When you get the pill form, I think you’re going to have tremendous sales,” Cramer said.
Analysts raise Eli Lilly stock price targets
Truist has raised its price target on Lilly to $1,182 from $1,038 and reiterated a buy rating, TipRanks reported.
The firm cited the recent White House deal allowing Medicare reimbursement for weight-loss drugs and said it expects orforglipron to reach the market in the first half of 2026, the analyst wrote.
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The firm said that Eli Lilly’s Zepbound and orforglipron could help reinforce the company’s leadership in the obesity treatment segment.
JPMorgan also recently raised its price target to $1,150 from $1,050 with an overweight rating after meeting with management.
The analyst, Chris Schott, said broader access to obesity medicines under the recent government deal could support higher volumes, which he expects will more than offset pricing pressure.
Schott also pointed to ongoing United States market share gains and growth potential outside the United States.
Eli Lilly stock is up roughly 36% year to date.
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