In terms of sheer relevance, it's difficult to think of a more relevant sector than healthcare — and within this vast ecosystem, only an elite few occupy the same neighborhood as pharmaceutical giant Eli Lilly and Company (NYSE:LLY). In November 2025, Eli Lilly became the first trillion-dollar pharmaceutical company, mostly due to regulatory momentum for its blockbuster drugs.
Specifically, the pharma received approval by the Food and Drug Administration for Mounjaro (tirzepatide) as an adjunct to diet and exercise for type 2 diabetes. Thanks to a blistering rally between late October to nearly the end of last month, LLY stock decisively broke through the four-digit price point, thus triggering a market capitalization above $1 trillion.
Beyond Mounjaro and weight-loss drug Zepbound — which have become serious growth engines for Eli Lilly — the company has a massive, diversified drug portfolio covering oncology, immunology and neuroscience. If next-generation therapeutics or new approvals for cancer or chronic diseases can be delivered, that could add material upside to LLY stock.
What's more, aside from a few hiccups, Eli Lilly is riding off the back of strong financial performances. Most recently, the drugmaker posted Q3 ‘25 earnings per share of $7.02 against expectations calling for $5.96. In addition, it generated revenue of $17.6 billion, handily beating the consensus target of $16.05 billion. As such, the results helped LLY stock storm higher.
However, not everyone universally believes in upside for the pharma giant. For one thing, the analyst rating and forecast score lands at 4.1 out of 5, indicating at least some skepticism among Wall Street experts. Further, the consensus price forecast implies only a marginal increase in value relative to the current price tag.
Put another way, elevated expectations have likely been baked into LLY stock. With the security trading at over 50 times trailing earnings and almost 16 times trailing sales, many investors are concerned about the sky-high premiums. If Eli Lilly fails to make good on its promises, a correction could be severe — especially given the recent record-breaking rally.
The Direxion ETFs: With compelling narratives on both sides of the table, financial services provider Direxion provides two countervailing products for those who want to try their luck. Optimistic traders may consider the Direxion Daily LLY Bull 2X Shares (NASDAQ:ELIL), which tracks 200% of the performance of LLY stock. On the other end, pessimists may consider the Direxion Daily LLY Bear 1X Shares (NASDAQ:ELIS), which tracks 100% of the inverse performance of the namesake security.
Fundamentally, one of the central purposes of Direxion ETFs is to facilitate a convenient mechanism for speculation. Generally, those interested in leveraged or inverse positions must engage the options market, which may involve unique complexities. With Direxion's specialized funds, however, traders can acquire the underlying units, which operate much like any other publicly traded security. Therefore, the learning curve is mitigated.
Still, prospective participants must be aware of the risks. First, adding leverage or incorporating an inverse profile on an underlying security tends to amplify volatility. Second, Direxion ETFs are designed for exposure lasting no longer than one trading session. Going beyond this recommended period may expose unitholders to positional decay tied to the daily compounding effect.
The ELIL ETF: With the ELIL ETF moving up more than 22% since its public market debut, it has offered an interesting perspective for bullish speculators.
- Thanks to the previously mentioned rally, ELIL has witnessed a surge of demand. Still, the latest corrective spell has been pronounced, with the bull fund losing 12% in the past five sessions.
- One area of concern is volume, which has been fading against the November rally. Generally, traders look for volume to confirm the trend, not contradict it.
The ELIS ETF: Due to the enormous rise in LLY stock, the ELIS ETF has struggled since its debut, losing about 27% of market value.
- Up until the recent corrective spell, sentiment for ELIS has been extremely ugly, with the ETF falling well below its 50-day moving average.
- Still, accumulative volume has picked up in the most recent sessions, suggesting a possible sentiment rethink.
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