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Eli Lilly (LLY) Dips More Than Broader Markets: What You Should Know
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Eli Lilly (LLY - Free Report) closed the most recent trading day at $323.89, moving -0.85% from the previous trading session. This change lagged the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the drugmaker had gained 2.82% over the past month. This has outpaced the Medical sector's loss of 4.88% and the S&P 500's loss of 8.4% in that time.
Investors will be hoping for strength from Eli Lilly as it approaches its next earnings release. In that report, analysts expect Eli Lilly to post earnings of $1.95 per share. This would mark year-over-year growth of 0.52%. Meanwhile, our latest consensus estimate is calling for revenue of $7.02 billion, up 3.7% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.98 per share and revenue of $28.83 billion. These totals would mark changes of -2.21% and +1.8%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Eli Lilly currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 40.96. Its industry sports an average Forward P/E of 12.19, so we one might conclude that Eli Lilly is trading at a premium comparatively.
Investors should also note that LLY has a PEG ratio of 2.1 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Eli Lilly (LLY) Dips More Than Broader Markets: What You Should Know
Eli Lilly (LLY - Free Report) closed the most recent trading day at $323.89, moving -0.85% from the previous trading session. This change lagged the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the drugmaker had gained 2.82% over the past month. This has outpaced the Medical sector's loss of 4.88% and the S&P 500's loss of 8.4% in that time.
Investors will be hoping for strength from Eli Lilly as it approaches its next earnings release. In that report, analysts expect Eli Lilly to post earnings of $1.95 per share. This would mark year-over-year growth of 0.52%. Meanwhile, our latest consensus estimate is calling for revenue of $7.02 billion, up 3.7% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.98 per share and revenue of $28.83 billion. These totals would mark changes of -2.21% and +1.8%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Eli Lilly currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 40.96. Its industry sports an average Forward P/E of 12.19, so we one might conclude that Eli Lilly is trading at a premium comparatively.
Investors should also note that LLY has a PEG ratio of 2.1 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.