Important note
This AI stock analysis for Eli Lilly and Company is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Eli Lilly and Company - AI Stock Analysis
Analysis generated July 3, 2025
Eli Lilly and Company, founded in 1876, is a global healthcare leader engaged in the discovery, development, manufacturing, and marketing of pharmaceutical products. Eli Lilly produces medications across multiple fields including oncology, immunology, neuroscience, and endocrinology. The company is headquartered in Indianapolis, Indiana, and is well-known for its leadership in diabetes treatments with drugs like Humalog and Trulicity. Additionally, Eli Lilly has a rich pipeline of new products in various stages of clinical development, showcasing its commitment to innovation and growth.
Fundamental Analysis
For the last quarter, Eli Lilly reported revenue of $12.7 billion, representing a 5.94% decrease compared to the previous quarter. While this decline could be a cause for concern, it's essential to note that the revenue shows a significant year-over-year increase of 45.17%. This suggests positive annual growth, potentially indicative of successful product launches or growth in existing product sales.
The net income for the last quarter stands at $2.76 billion, marking a 37.43% decrease from the preceding quarter. Notably, this figure still indicates a 23.02% increase compared to the same quarter last year, highlighting substantial year-over-year profitability improvements.
EBITDA for the last quarter was reported at $4.16 billion. This represents a decline of 27.58% from the previous quarter but an increase of 33.58% compared to the last year’s corresponding quarter. While the sequential decrease is concerning, the positive annual growth is a bullish indicator.
The current Price-to-Earnings (P/E) ratio is 63.56, suggesting a potential overvaluation. Generally, a high P/E ratio indicates that investors expect high growth rates in the future, but it could also imply that the stock is overvalued at its current price.
Technical Analysis
Today’s stock price stands at $779.28, reflecting a 3.80% increase compared to a month ago. This uptick signals a favorable short-term trend. However, the price has decreased by 12.63% compared to a year ago, raising concerns about long-term prospects.
The stock showcases a bullish trend, with the current Simple Moving Average (SMA) over 10 days (SMA10) at 780.58 compared to its previous SMA10 of 779.72. Additionally, the Relative Strength Index (RSI) is at 35.1, indicating a neutral condition and providing no clear overbought or oversold signals.
Alternative Data Analysis
From an alternative data perspective, Eli Lilly has 994 open job positions per popular job boards, down by 7% recently. This may indicate cost-cutting measures or improved efficiency. Additionally, 85% of employees hold a positive business outlook, which is a very optimistic indicator for the company’s future.
On the customer acquisition front, the company’s website traffic has surged by 74% in recent months to approximately 7.2 million visitors. This uptick could signify increased customer interest and prospects of revenue growth.
As for customer engagement, Eli Lilly's Instagram following has increased by 9% to 46,000, showing growing interest in the company's activities. In contrast, the Twitter following remains unchanged at 140,000, suggesting stable, albeit stagnant, social engagement. The AltIndex AI score for Eli Lilly is a promising 68, indicating a buy signal based on a comprehensive assessment of fundamental, technical, and alternative data.
Conclusion and Recommendation
In conclusion, Eli Lilly and Company presents a mixed yet largely promising outlook. The company showcases strong year-over-year growth in revenue, net income, and EBITDA, albeit with short-term declines in these metrics. The high P/E ratio suggests potential overvaluation, but this often coincides with high growth expectations. Technical indications show a positive short-term trend, though long-term price declines warrant cautious scrutiny.
On the alternative data front, the significant rise in web traffic and employee positivity enhance the company’s favorable outlook. Despite some concerns about cost-cutting seen in reduced job postings, the overall sentiment towards Eli Lilly remains optimistic.
Given these factors, potential investors might consider Eli Lilly and Company a buy. Positive long-term fundamentals, along with increased customer engagement and a solid AI score, outweigh the short-term financial declines and suggest a bullish outlook.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
