Eli Lilly Holds Firm in the USD 1 Trillion Club
On Friday, 21 November 2025, Eli Lilly became the first pharmaceutical company to reach a valuation typically reserved for major technology giants: USD 1 trillion. The milestone was achieved when its share price hit $1,057.78. Alongside Big Tech, the company now trades at valuations that—while elevated, as we will see shortly—many analysts consider justified by its growth prospects and strong financial position.
But what exactly is driving LLY (its ticker symbol) to such heights? The success stems from the development of an exceptionally effective GLP-1 molecule for the treatment of diabetes and obesity, which the company commercialized through two blockbuster drugs: Mounjaro and Zepbound. Although marketed with slightly different focuses—Mounjaro primarily for diabetes and Zepbound for weight loss—both products are set to transform two markets expected to expand dramatically over the next few years. The diabetes market is projected to grow from roughly $100 billion today to around $230 billion by 2030, while the obesity-management segment is forecast to quadruple and reach approximately $100 billion by 2030.
Together, these two drugs account for more than 50% of Eli Lilly’s total revenue. According to the latest data, revenues grew 53.9% year-over-year, driven by a remarkable 62% increase in sales. This, combined with a three-year average Return on Invested Capital (ROIC) of 21.71%, underpins investor optimism as well as continued buying from institutional funds and traders. Market sentiment has also benefited from indications that the upcoming Obamacare reform could offer additional tailwinds for the company.
On the other hand, the exceptionally high valuation multiples at which the stock trades should not be overlooked, as they may make the company appear expensive to some investors. Its P/E ratio stands near 60, compared to the S&P 500 average of 23.4, while the forward P/E is near 40. The P/S (price-to-sales) ratio is even more extreme at around 17, versus an index average of 3.1.
In short, growth prospects remain robust and the company’s financial footing is solid, but the so-called smart money may have priced in much of this strength some time ago. Let’s turn to the chart.
Technical Analysis
Eli Lilly has posted just one negative trading day since 30 October. Yesterday’s close at $1,109.74 represented a 3.72% gain. As is often the case with exponential growers, the upward trendlines remain well below the current price and have steepened over time: the trendline originating on 7 August now sits around $820, while the steeper trendline beginning on 24 September is near $884. The same applies to moving averages: the sharply rising 50-day MA is at $868, while the 200-day MA, flatter due to the recent acceleration, is around $802.
The first substantial static support level lies around $955, corresponding to the 2024 highs, though lighter support areas can be identified near $1,035 and $995. Bollinger Bands have widened significantly, although they have not been breached—an encouraging signal that the stock may not yet be topping out.
LLY remains a highly attractive long-term holding, but more favorable entry points are likely to emerge in the coming weeks. Shorting a fast-moving trend of this sort is almost always a bad idea.
