With a market cap of $681.8 billion, Eli Lilly and Company (LLY) is a leading global pharmaceutical company focused on neuroscience, diabetes, oncology, and immunology. The company markets a broad range of human pharmaceuticals across the U.S., Europe, China, Japan, and other international markets.

Companies valued over $200 billion are generally described as “mega-cap” stocks, and Eli Lilly fits right into that category. Lilly has expanded its pipeline and portfolio through strategic acquisitions, including ImClone Systems, ICOS Corporation, Loxo Oncology, and Dermira, as well as through collaborations with Incyte, Boehringer Ingelheim, Roche/Genentech, and others.

However, the Indianapolis, Indiana-based company has seen a 26% decline from its 52-week high of $972.53. Over the past three months, its shares have dipped 21.9%, a steeper decline compared to the broader Dow Jones Industrials Average's ($DOWI) nearly 4% drop during the same period.

Longer term, the pharmaceutical giant is down 6.8% on a YTD basis, lagging behind DOWI's 1.1% decrease. Moreover, shares of Eli Lilly have declined nearly 11% over the past 52 weeks, compared to DOWI’s 8.4% rise over the same time frame.

LLY has been in a bearish trend, trading mostly below its 50-day and 200-day moving averages since late-October last year.

Shares of Eli Lilly tumbled 11.7% on May 1 due to a disappointing Q1 2025 earnings report and lowered full-year profit guidance. While revenues surged 45% year-over-year to $12.7 billion, driven by blockbuster drugs Mounjaro and Zepbound, adjusted EPS of $3.34 missed the consensus estimate, weighed down by a steep $1.72 per-share IPR&D charge. Additionally, Lilly lowered its full-year 2025 EPS guidance to $20.78 - $22.28, below the previous range and analyst expectations, citing increased R&D spending.

Furthermore, LLY has lagged behind its rival, Johnson & Johnson (JNJ), which experienced a 5.4% YTD gain and a 5.6% rise over the past 52 weeks.

Despite Eli Lilly’s underperformance relative to the Dow Jones over the past year, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 25 analysts in coverage, and as of writing, LLY is trading below the mean price target of $991.46.