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Eli Lilly (LLY) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Eli Lilly (LLY) closed at $331.08, marking a -0.76% move from the previous day. This move lagged the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.

Heading into today, shares of the drugmaker had gained 1.58% over the past month, outpacing the Medical sector's loss of 3.29% and the S&P 500's loss of 2.95% in that time.

Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of $1.67, down 36.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.79 billion, down 13.07% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.49 per share and revenue of $30.5 billion. These totals would mark changes of +6.93% and +6.87%, respectively, from last year.

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Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Eli Lilly is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 39.29. This valuation marks a premium compared to its industry's average Forward P/E of 13.89.

Investors should also note that LLY has a PEG ratio of 1.91 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LLY's industry had an average PEG ratio of 1.62 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Eli Lilly and Company (LLY) : Free Stock Analysis Report

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