Eli Lilly & Co. (NYSE:LLY) stock is down about 2% on Tuesday as a broader risk-off move pressures large-cap healthcare stocks. The Nasdaq is down 0.29%, while the S&P 500 has fallen 0.43%. Healthcare is the weakest sector, down 1.7%.
Lilly’s decline appears tied largely to broader market and sector weakness. The Dow Jones is down 1.05%, while the market’s advance-decline ratio stands at 0.8.
Sharp biotech losses are also amplifying pressure across healthcare. Novartis AG (NYSE:NVS) stock plunged after its Phase 3 HARBOR trial for del-desiran failed to meet its primary endpoint.
The setback followed another Phase 3 failure for cardiovascular drug pelacarsen. The news also weighed on Ionis Pharmaceuticals Inc. (NASDAQ:IONS) and Royalty Pharma plc (NASDAQ:RPRX), which have financial ties to pelacarsen.
Technical Analysis
Lilly’s longer-term trend remains constructive. The stock trades 1.5% above its 100-day simple moving average and 5.9% above its 200-day SMA. Its 50-day SMA also remains above the 200-day SMA.
However, the near-term picture has weakened. Lilly trades 5.9% below its 20-day SMA and 5.3% below its 50-day SMA.
Momentum is also bearish. The MACD is below its signal line, while the histogram is negative. This suggests buying momentum has weakened.
Key resistance sits near $1,232. Support is around $1,109, close to the 100-day SMA.
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Sector Performance
Lilly is down 2.03%, compared with a 1.71% decline for the Health Care Select Sector SPDR Fund (NYSE:XLV). Healthcare ranks last among the 11 S&P 500 sectors Tuesday.
Still, the sector is up 10.17% over the past 90 days. Meanwhile, Energy is up 1.74% Tuesday, and Utilities has gained 0.88%.
Analyst Outlook
Lilly carries a Buy consensus rating with an average price forecast of $1,347.13.
Truist Securities maintained a Buy rating and raised its price forecast to $1,376 on Aug. 7. Wells Fargo maintained an Overweight rating and raised its forecast to $1,330 on Aug. 6. Cantor Fitzgerald also maintained an Overweight rating and lifted its forecast to $1,410 on Aug. 6.
The stock trades at a price-to-earnings ratio of 38.6, reflecting a premium valuation.
Benzinga Edge Rankings
The Benzinga Edge scorecard shows strong Growth, Quality and Momentum scores for Lilly. Growth stands at 98.97, Quality at 96.72 and Momentum at 83.12.
However, Lilly’s Value score is just 1.54. The combination highlights strong growth and business quality but also a valuation that could leave the stock more exposed during market pullbacks.
Top ETF Exposure
The Simplify Health Care ETF (NYSE:PINK) has a 9.93% weighting in Lilly. The Polen Focus Growth ETF (NYSE:PCLG) has a 7.72% weighting, while the First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH) has a 7.38% weighting.
Large ETF flows can therefore contribute to buying or selling pressure in Lilly shares.
LLY Price Action
Eli Lilly shares were down 1.94% at $1,127.04 at the time of publication Tuesday, according to Benzinga Pro data.
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