Eli Lilly's Worst Days May Be Behind It: A Financial Preview

Eli Lilly's earnings preview suggests the worst may be over for the company. As a finance expert with experience at Bloomberg, I have analyzed the principal points of the article and summarized them as follows: Eli Lilly has robust growth prospects in immunology and oncology, and its stock multiples seem justified. The company's recent performance and guidance have been strong, supporting the thesis that the worst may be over for Eli Lilly.

Eli Lilly and Company (LLY) has shown signs of recovery in its earnings preview, with robust growth prospects in immunology and oncology. As a finance expert with experience at Bloomberg, I have analyzed the principal points of the article and summarized them as follows.

Eli Lilly's recent performance and guidance have been strong, suggesting that the worst may be over for the company. The company's stock multiples seem justified, given its growth prospects in these key areas. The company's diabetes and obesity treatment portfolio, including Jardiance, Mounjaro, and Trulicity, remains a significant driver of revenue. Additionally, Eli Lilly's extensive immunology and oncology portfolio, which includes Humira and Skyrizi, is expected to contribute to future growth.

The company's stock has fluctuated significantly in the past 12 months, trading between $677.09 and $972.53. However, recent midday trading on Thursday saw the stock trade down $16.48, reaching $743.60, with a trading volume of 2,892,433 shares. Despite this recent dip, the stock has shown resilience, with a market cap of $704.74 billion, a PE ratio of 60.59, and a beta of 0.40. The company's debt-to-equity ratio of 2.18 and quick ratio of 1.06 indicate a solid financial position.

Moreover, the Trump administration's proposed plan to cover weight-loss drugs under Medicare and Medicaid could provide a significant boost to Eli Lilly's revenue. The proposed plan, expected to start in April 2026 for Medicaid and January 2027 for Medicare plans, would permit state Medicaid programs and Medicare Part D insurance plans to voluntarily cover GLP-1 drugs such as Novo Nordisk's Ozempic and Wegovy, as well as Lilly's Mounjaro and Zepbound for weight management. This move could significantly increase the accessibility and usage of these drugs, potentially driving up sales for Eli Lilly.

In conclusion, Eli Lilly's earnings preview suggests that the company has turned a corner, with strong growth prospects in immunology and oncology. The company's robust financial position and recent performance indicate that the worst may be over for Eli Lilly. Investors should closely monitor the company's earnings releases and the progress of its weight-loss drug coverage proposal under Medicare and Medicaid.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TT0W4:0-eli-lilly-rises-on-report-of-medicare-medicaid-coverage-for-weight-loss-drugs/
[2] https://www.marketbeat.com/instant-alerts/promising-pharmaceutical-stocks-to-add-to-your-watchlist-july-31st-2025-07-31/