Founded in 1876, Indianapolis, Indiana-based Eli Lilly and Company (LLY) discovers, develops, and markets human pharmaceuticals in the United States and internationally. The company has a market capitalization of $980.5 billion and boasts a diversified product profile, including a solid lineup of new, successful drugs.
Shares of the healthcare giant have outperformed the broader market over the past year, but have underperformed in 2026. LLY stock has grown 28.7% over the past 52 weeks and has declined 2.8% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 15.5% over the past year and risen 1.9% in 2026.
Narrowing the focus, LLY has outperformed the Healthcare Select Sector SPDR ETF’s (XLV) 6% rise over the past 52 weeks, but has lagged behind its marginal decline this year.
LLY’s rally can be traced back to its becoming the first healthcare company to join the $1 trillion market cap club on Nov. 21. The primary driver behind the company’s growth has been its foray into weight-loss drugs, where it is the main competitor to Ozempic-maker Novo Nordisk. Moreover, its Zepbound and Mounjaro have been widely popular, with the Street eyeing its new oral weight-loss medication, which has shown promising clinical trial results.
For the fiscal year, which ended in December 2025, analysts expect LLY to report an 82.8% year-over-year surge in adjusted EPS to $23.74. The company has a mixed earnings surprise history. It has surpassed the Street’s bottom-line estimates in three of the past four quarters, while missing on one occasion.
LLY has a consensus “Strong Buy” rating overall. Of the 28 analysts covering the stock, opinions include 22 “Strong Buys,” two “Moderate Buys,” and four “Holds.” Wall Street’s mood is getting brighter for the stock. It now boasts 22 “Strong Buy” ratings, three more than it had three months ago.
On Jan. 20, Guggenheim analyst Seamus Fernandez maintained a “Buy” rating for Eli Lilly stock and reduced its price target from $1163 to $1161.
LLY’s mean price target of $1163.88 indicates a 11.5% premium to the current market prices. Its Street-high target of $1500 suggests a robust 43.7% upside potential from current price levels.
On the date of publication, Anushka Mukherjee 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. This article was originally published on Barchart.com
