Should You Buy Eli Lilly Stock Now or Wait for More of a Pullback?

By David Jagielski, CPA – Mar 9, 2026 at 2:00PM ESTKey PointsEli Lilly stock is down 13% from its 52-week high.Analysts still see some decent upside for the stock, with its average price target being north of $1,200.The company experienced tremendous growth last year.It's been a tough start for Eli Lilly (LLY +0.94%) stock this year. Entering this week, the pharmaceutical giant's value has fallen by 8%. While its five-year gains are still impressive at around 380%, there's been less excitement around the healthcare company and other GLP-1 stocks this year, as the healthcare sector as a whole is coming under pressure to reduce prices. But although Eli Lilly's stock has been falling, it's still not all that cheap, as it trades at 43 times its trailing earnings. That's far higher than the S&P 500 average earnings multiple of 25. For investors, the big question is whether Eli Lilly is worth such a significant premium and if it's still a good buy right now, or if you may be better off waiting for more of a decline. Image source: Getty Images.

Is Eli Lilly stock running out of room to rise higher? Eli Lilly's stock has hit highs of more than $1,100 as recently as last month, but it's now down about 13% from its peak. That's not a huge sell-off by any means, but there does appear to be some pushback from investors in paying more for the healthcare stock. That resistance could indicate that the premium is getting too big for investors to stomach. Analysts who cover the stock, however, still believe there is plenty of upside if you buy now. The consensus price target for Eli Lilly is just under $1,230, which means that if analysts are right, the stock may rise by around 24% from where it is today, over the next year or so. Price targets can change, of course, but by looking at the consensus price target, you can get a good sense of the market's overall appetite for the stock. ExpandNYSE: LLYEli LillyToday's Change(0.94%) $9.30Current Price$999.63Key Data PointsMarket Cap$934BDay's Range$981.15 - $1006.4452wk Range$623.78 - $1133.95Volume98KAvg Vol3.2MGross Margin83.04%Dividend Yield0.63% Should you buy Eli Lilly stock today? Eli Lilly's business has been thriving due to the success of its popular GLP-1 drugs, Zepbound and Mounjaro. Last year, its revenue totaled more than $65 billion, rising by 45% from the previous year. That's a highly impressive growth rate for such a massive pharmaceutical company. Eli Lilly's market cap is around $900 billion, making it the most valuable healthcare business in the world. With strong growth prospects and a dominance in the GLP-1 market, this can still be a good buy today, particularly if you're looking to hold on to the stock for years. While you might benefit from waiting for a lower price, there's no guarantee that Eli Lilly stock will continue sliding in value. For a quality, high-growing business, you'll often need to pay a premium for the stock, and with Eli Lilly, it certainly looks to be justifiable.Read NextMar 8, 2026 •By Reuben Gregg Brewer1 Dividend Stock to Buy Hand Over Fist and 1 to AvoidMar 7, 2026 •By Reuben Gregg BrewerWhere Will Eli Lilly Stock Be in 10 Years?Mar 3, 2026 •By Prosper Junior Bakiny2 Top Growth Stocks to Buy in the First Half of 2026Mar 3, 2026 •By Reuben Gregg BrewerShould You Forget Eli Lilly and Buy These Unstoppable Stocks Instead?Mar 2, 2026 •By Prosper Junior BakinyBuying This 1 Pharmaceutical Stock Today Could Make You a Multimillionaire RetireeMar 2, 2026 •By David Jagielski, CPAUp Over 400% in 5 Years, Is It Too Late to Invest in Eli Lilly Stock?About the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedEli LillyNYSE: LLY$999.63(+0.94%)+$9.30*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.