Yahoo Finance Eli Lilly (LLY) Gains But Lags Market: What You Should Know
Eli Lilly (LLY) closed at $446.04 in the latest trading session, marking a +0.09% move from the prior day. This change lagged the S&P 500's 0.12% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 4.09%.
Heading into today, shares of the drugmaker had gained 2.32% over the past month, outpacing the Medical sector's loss of 2.13% and lagging the S&P 500's gain of 3.98% in that time.
Eli Lilly will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.97, up 57.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.51 billion, up 15.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.79 per share and revenue of $31.44 billion, which would represent changes of +10.71% and +10.17%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Eli Lilly. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Eli Lilly is currently a Zacks Rank #3 (Hold).
In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 50.69. For comparison, its industry has an average Forward P/E of 14.97, which means Eli Lilly is trading at a premium to the group.
It is also worth noting that LLY currently has a PEG ratio of 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Eli Lilly and Company (LLY) : Free Stock Analysis Report
