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Eli Lilly and Company (LLY) - Comprehensive Stock Analysis Report

Generated: March 29, 2026 at 12:05 PM ET
Strategy: Conservative Stop Loss (Fixed ATR-based)
Latest Data: 2026-03-27

📌 Is LLY a Buy right now?

According to Ultra Stock Analysis Pro, Eli Lilly and Company (LLY) is currently rated WAIT (Signal Strength: 0/7). The long-term fundamentals are strong (P/E: 38.3, Revenue Growth: +42.6%), while short-term technicals show a bearish trend (RSI: 29). Consider waiting for support confirmation near $1050.87 before adding exposure.

For the latest stock analysis and interactive charts:
📊 Open LLY Analysis ↗

⚡ QUICK DECISION

Action: HOLD | Confidence: LOW | Signal Strength: 0/7

🤖 ALGORITHMIC CONVICTION & METHODOLOGY

Why this rating?

The Ultra Stock Analysis algorithm has assigned a WAIT rating to LLY based on a confluence of 3 distinct factors:

  1. Technical Momentum: The RSI (29) is currently in oversold territory, historically preceding a reversal in 55% of backtested scenarios.
  2. Trend Strength: ADX at 23 indicates an emerging trend (20-25). News sentiment is neutral (Neutral).
  3. Volatility Profile: The ATR ($26.98) indicates high volatility (3.1% of price), suggesting potential moves of 6.1%+ on breakouts.

📊 Confidence Interval:

Based on 7+ years of historical data, signals with this specific technical fingerprint have resulted in a positive return 55% of the time over a medium-term (months) hold period, with an average return of +18.9% per trade.

🔮 FUTURE PRICE SCENARIOS (AI Forecast)

To assist with risk management, here are the three most probable paths for LLY over the next trading week:

🟢 The Bull Case (Probability: 21%)

If LLY reclaims the $1050.87 resistance level (Bollinger Upper), algorithmic targets shift to $1209.34. This move would likely be driven by continued sector rotation into Healthcare.

🔴 The Bear Case (Probability: 50%)

Failure to hold the $863.29 support zone (Bollinger Lower) triggers a defensive stop-loss signal. In this scenario, the algorithm projects a slide toward the $836.31 liquidity zone (-4.8% from current price).

🟡 The Base Case (Sideways)

Given the current ADX of 23 (weak trend - consolidation likely), the most likely immediate outcome is consolidation between $863.29 and $1050.87 until a volume catalyst occurs.

⚠️ These scenarios are algorithm-generated projections based on technical analysis, not financial advice. Past performance does not guarantee future results.

EXECUTIVE SUMMARY - Essential Metrics

TECHNICAL METRICS VALUE FUNDAMENTAL METRICS VALUE
Current Price $878.24 Market Cap $786.0B
Past Win Rate (Backtest) 54.5% Forward P/E 20.9x
Past Total Return +93.9% Analyst Target $1209.34
RSI / Trend Strength 29 / 23 Upside to Target +37.7%
MACD Signal Bearish Revenue Growth +42.6%
Profit Factor 4.70 Institutional Own. 84.6%
Position Entry2025-11-03 @ $893.72Analyst Ratings22 Buy / 7 Hold / 1 Sell
Open Position Past P&L-1.7%

🎯 CONSENSUS

Overall: HOLD

Supporting Factors

  • Technical confluence: 0/7 bullish signals
  • Backtest win rate: 54.5%
  • Analyst consensus: 22 buy ratings
  • Upside potential: +37.7%

Risk Considerations

  • Market volatility: Beta 0.43
  • Valuation: 20.9x forward P/E
  • Position already open
  • News sentiment: Neutral
Action Plan:

MAINTAIN POSITION - Current position showing -1.7% unrealized gain. Use intelligent stop loss strategy below.

📊 Strategy Comparison: Conservative vs Hybrid

Both strategies analyzed independently. Conservative uses fixed 2.0x ATR stops. Hybrid adapts stops based on position profit (tighter as profit grows).

Conservative Strategy

OPEN POSITION

Fixed 2.0x ATR Stop Loss

-1.7%

Entry: $893.72 on 2025-11-03

Confluence: 6.0

Stop Loss: $824.27

Backtest Results (Since 2018):

Past Win Rate

55%

Past Total Return

+93.9%

Max Drawdown

-12.2%

Avg Trade

+18.9%

Trades

11

Hybrid Strategy

NO POSITION

Adaptive ATR Stop Loss (1.0-2.75x)

No Position

Waiting for entry signal...

Entry Stop: $837.77 ({atr_multiplier}x ATR)

Backtest Results (Since 2018):

Past Win Rate

50%

Past Total Return

+50.0%

Max Drawdown

-11.2%

Avg Trade

+4.0%

Trades

24

🎯 Intelligent Stop Loss Strategy

Current Price

$878.24

Buy Stop Loss

$824.27

Distance: 6%

Conservative 2.0x

Position Stop Loss

$810.78

Distance: 8%

Hybrid 2.50x

ATR 14 Day

$26.98

Volatility

ADX Strength

23.3

Emerging trend

Position down -2% - Wider stops for recovery

ADX: 20-25 = Emerging trend | 25-50 = Strong trend | 50+ = Very strong

Technical Analysis

Indicator Value Signal
EMA 20 $947.41 Bearish
EMA 50 $985.05 Bearish
RSI (14) 29.2 Oversold - potential bounce
Trend Strength (ADX) 23.3 Emerging trend (20-25)

🔔 ANALYST RATING CHANGES

Recent upgrades, downgrades, and price target changes (last 90 days)

Firm Action From → To Date
HSBCDOWNGRADEHold → ReduceMar 17, 2026
RBC CapitalINITIATEDOutperformFeb 25, 2026
BarclaysINITIATEDOverweightFeb 20, 2026
Freedom BrokerUPGRADEHold → BuyFeb 10, 2026

🎯 ANALYST PRICE TARGETS

Average Target: $1209.34 High Target: $1500.00
Current Price: $878.24 Low Target: $850.00
Upside to Average: +37.7% Number of Analysts: 29

📊 BUY-SIDE PERSPECTIVE

Portfolio Management Analysis

Expected Returns & Position Sizing

Based on backtest performance (Win Rate: 54.5%, Avg Return: +18.9%) and analyst consensus (Target: $1209.34, +37.7% upside), an OVERWEIGHT exposure may be considered. Risk/Reward ratio of 2.51:1 suggests favorable risk-adjusted returns. Current open position shows -1.7% unrealized gain.

Technical Position Assessment

  • Confluence Score: 0/7 - Weak or no signal
  • RSI Level: 29 - Oversold (potential bounce)
  • Trend Strength (ADX): 23.3 - Emerging trend (20-25)
  • Backtested Win Rate: 54.5% with 4.70x profit factor

Liquidity Profile

  • Average Volume: 3.1M shares/day - Lower liquidity
  • Market Cap: $786.0B - Large cap
  • Beta: 0.43 - Lower than market volatility
  • Execution Risk: Moderate for institutional-sized positions

Risk/Reward Analysis

  • Upside to Analyst Target: +37.7%
  • Historical Average Return: +18.90% per trade
  • Maximum Drawdown Risk: Stop loss typically set at 2-3x ATR ($53.97 to $80.95)
  • Position already open with -1.7% unrealized gain

Institutional Activity

  • Institutional Ownership: 84.6%
  • Largest Holder: Lilly Endowment, Inc
  • Recent Rating Changes: 4 in last 90 days

📈 SELL-SIDE PERSPECTIVE

Investment Research Analysis

Investment Thesis

Eli Lilly and Company operates in the Healthcare sector (Drug Manufacturers - General). Current valuation of 20.9x forward P/E reflects reasonable multiples relative to growth prospects. Operating margin of 44.9% shows strong profitability.

Fundamental Outlook: Strong Growth - Positive operating leverage with revenue and earnings acceleration

Valuation Metrics

  • Forward P/E: 20.9x (Reasonable valuation)
  • Trailing P/E: 38.3x
  • Price-to-Sales: 12.06x - Premium valuation
  • Price-to-Book: 29.62x
  • PEG Ratio: 0.95 (Undervalued)
  • Enterprise Value: $821.2B

Performance Metrics

  • Revenue: $65.2B
  • Revenue Growth: +42.6%
  • Earnings Growth: +51.4%
  • EPS Growth (Next Yr): +83.7%
  • Operating Margin: 44.9%
  • Free Cash Flow: $2.0B

Analyst Consensus

  • Ratings: 22 Buy, 7 Hold, 1 Sell
  • Consensus: Strong Buy
  • Average Target: $1209.34 (+37.7% upside)
  • Target Range: $850.00 - $1500.00

News Sentiment (14-Day)

Overall Score: 0.5/10 - Neutral

Bullish Articles (Top 5 of 3)

Bearish Articles (Top 5 of 2)

📊 Sentiment Interpretation

The news sentiment is neutral, indicating balanced coverage without clear directional bias. This suggests market participants are waiting for catalysts or clearer signals. Monitor for changes in sentiment that could indicate emerging trends.

Fundamental Data

MetricValue
Market Cap$786.0B
P/E Ratio (Forward)20.9
EPS (Forward)$42.10
Dividend Yield0.71%
52-Week Range$623.78 - $1133.95
Beta0.43
Avg Volume3.1M

🔍 DEEP DIVE: COMPREHENSIVE RISK ASSESSMENT

Risk Factors and Mitigation Strategies

Market Risks

  • Beta: 0.43 - Low market sensitivity
  • 52-Week Range Position: Current price $878.24 within $623.78 - $1133.95
  • Volatility: ATR 14 = $26.98 (Stop loss typically 2-3x = $53.97-$80.95)

Technical Risks

  • RSI Status: 29 - Oversold opportunity
  • Support Level: Key support based on moving averages and price action
  • Resistance Level: Next resistance target from technical analysis

Fundamental Risks

  • Valuation: Forward P/E of 20.9x (reasonable)
  • Earnings Risk: Next earnings on Apr 30, 2026
  • Sector Risks: Healthcare sector specific challenges

📊 APPENDIX A - Complete Technical Indicators

Comprehensive Technical Data for Quantitative Analysis

Indicator Value Indicator Value
Close Price $878.24 Volume 2.7M
EMA 20 $947.41 EMA 50 $985.05
EMA 200 $928.40 Current Price $878.24
RSI (14) 29.19 MACD -35.036
MACD Signal -28.532 MACD Histogram -6.503
Trend Strength (ADX) 23.31 Volatility (ATR 14) $26.98
Bollinger Upper $1050.87 Bollinger Lower $863.29
Stochastic %K 6.61 Stochastic %D 8.78
VWAP $885.39 Bollinger Middle $957.08
Confluence Score 0/7 Trade Signal NONE

💼 APPENDIX B - Complete Fundamental Metrics

Comprehensive Fundamental Data for Financial Analysis

Valuation Metrics Performance
Market Cap $786.0B Revenue $65.2B
Forward P/E 20.9 Revenue Growth +42.6%
Trailing P/E 38.3 Gross Margin 83.0%
Price/Sales 12.06 Operating Margin 44.9%
Price/Book 29.62 Profit Margin 31.7%
PEG Ratio 0.95 ROE 101.2%
Enterprise Value $821.2B Free Cash Flow $2.0B

📈 APPENDIX C - Complete Trade History & Backtest Results

Comprehensive Trading Performance and Position Details

Backtest Performance Metrics

Past Win Rate
54.5%
Avg Return
+18.90%
Past Total Return
+93.9%
Profit Factor
4.70

Current Open Position

Entry DateEntry PricePast P&LEntry Stop Loss
2025-11-03$893.72-1.73%$846.47

Recent Trade History (Last 10 Trades)

Entry Date Exit Date Entry Price Exit Price Return % Result
2019-06-132020-08-10$102.69$143.51+39.76%Win
2020-09-102020-10-30$137.82$122.97-10.78%Loss
2020-12-092021-03-29$149.69$177.28+18.43%Win
2021-05-102021-09-20$185.29$222.06+19.85%Win
2021-10-272022-01-20$239.82$233.83-2.50%Loss
2022-03-072022-09-02$252.68$292.95+15.94%Win
2022-09-292024-08-02$320.83$794.74+147.71%Win
2024-08-132024-11-05$897.08$797.44-11.11%Loss
2024-11-182025-04-01$720.61$799.31+10.92%Win
2025-04-292025-05-07$878.69$771.01-12.25%Loss

Summary: 11 total trades | Strategy: Conservative Stop Loss (Fixed ATR-based)

⚠️ IMPORTANT DISCLAIMER

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Technical analysis based on historical data through 2026-03-27. Fundamental data auto-fetched from Yahoo Finance. Please conduct your own due diligence before making investment decisions.

Report Generated: March 29, 2026 at 12:05 PM

Ultra Stock Analysis Pro - Comprehensive Technical & Fundamental Analysis

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