Eli Lilly shares dropped 3.6% to $1,041.51 as investors engaged in profit-taking following a significant recent surge, despite the stock maintaining a highly favorable fundamental outlook, including a Zacks Rank #1 (Strong Buy).
- The tirzepatide franchise (Mounjaro/Zepbound) continues to drive growth, with 2026 sales projected to surpass competitor Novo Nordisk.
- The company projects robust 40.6% EPS growth this quarter, supported by upward earnings revisions.
- Valuation remains mixed; while the 0.78 PEG ratio suggests attractive growth-adjusted pricing, the current 52.5x P/E significantly exceeds industry peers.