Editor’s note: This story has been updated to clarify that Eli Lilly is set to report earnings premarket Wednesday.

Eli Lilly and Co (NYSE:LLY) will be reporting its third-quarter earnings on Wednesday. Wall Street expects $1.45 in EPS and $12.1 billion in revenues when the company reports earnings in the premarket session.

Is A Stock Split On The Horizon For This Weight Loss Drug Maker?

The stock is up 58.31% over the past year, 51.23% YTD. Eli Lilly’s stock has experienced a remarkable rise, recently trading close to $900 a share, down from a record high of about $972. This surge, especially from just $250 two years ago, positions Lilly for a potential stock split, which could make shares more accessible to a broader range of investors.

The company has become a key player in the rapidly expanding weight loss drug market, driven by its popular treatments, Mounjaro and Zepbound, which collectively generated over $4 billion in revenue last quarter. With the weight loss market expected to grow significantly in the coming years, a stock split could attract more investors, further enhancing Lilly’s growth potential as it continues to innovate and expand its product offerings.

Let’s look at what the charts indicate for Eli Lilly stock and how the stock currently maps against Wall Street estimates.

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Eli Lilly Stock Chart Bearish Ahead Of Q3 Earnings 

Eli Lilly's technical indicators present a largely bearish outlook.

Chart created using Benzinga Pro

Currently trading at $900.37, Eli Lilly stock remains below its five-, 20- and 50-day exponential moving averages, underscoring a sustained downward trend. With the stock price below its eight-day, 20-day and 50-day simple moving averages of $902.06, $906.56, and $917.96, respectively, additional bearish signals strengthen this short- to mid-term view.

However, Eli Lilly stock sits above its 200-day SMA of $823.77, which offers a long-term bullish signal. The MACD indicator at a negative 3.09 also supports a bearish stance, while the RSI at 46.74 suggests the stock is nearly oversold territory, hinting at a potential reversal if buying pressure builds.

Overall, while Eli Lilly stock’s technicals favor a bearish outlook, longer-term indicators and a potential oversold status could set the stage for a possible bullish recovery.

Eli Lilly Analysts See Over 25% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Eli Lilly stock stands at a Buy currently with a price target of $927.42. Recent analyst ratings from Citigroup, Bernstein and Truist Securities imply a 25.86% upside for Eli Lilly, with an average price target of $1,127.67.

LLY Price Action: Eli Lilly stock was trading flat at $902.04 at the time of publication Tuesday.

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