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Eli Lilly (LLY) Gains But Lags Market: What You Should Know
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Eli Lilly (LLY - Free Report) closed the most recent trading day at $332.76, moving +0.41% from the previous trading session. This change lagged the S&P 500's 2.65% gain on the day. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the drugmaker had gained 7.28% over the past month. This has outpaced the Medical sector's loss of 4.78% and the S&P 500's loss of 8.99% in that time.
Investors will be hoping for strength from Eli Lilly as it approaches its next earnings release, which is expected to be November 1, 2022. In that report, analysts expect Eli Lilly to post earnings of $1.92 per share. This would mark a year-over-year decline of 1.03%. Our most recent consensus estimate is calling for quarterly revenue of $6.91 billion, up 2.09% from the year-ago period.
LLY's full-year Zacks Consensus Estimates are calling for earnings of $7.91 per share and revenue of $28.67 billion. These results would represent year-over-year changes of -3.06% and +1.24%, respectively.
Investors should also note any recent changes to analyst estimates for Eli Lilly. These revisions help to show the ever-changing nature of 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.73% lower. 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 41.87. This represents a premium compared to its industry's average Forward P/E of 12.54.
Investors should also note that LLY has a PEG ratio of 2.12 right now. 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 1.73 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 93, putting it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Eli Lilly (LLY) Gains But Lags Market: What You Should Know
Eli Lilly (LLY - Free Report) closed the most recent trading day at $332.76, moving +0.41% from the previous trading session. This change lagged the S&P 500's 2.65% gain on the day. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the drugmaker had gained 7.28% over the past month. This has outpaced the Medical sector's loss of 4.78% and the S&P 500's loss of 8.99% in that time.
Investors will be hoping for strength from Eli Lilly as it approaches its next earnings release, which is expected to be November 1, 2022. In that report, analysts expect Eli Lilly to post earnings of $1.92 per share. This would mark a year-over-year decline of 1.03%. Our most recent consensus estimate is calling for quarterly revenue of $6.91 billion, up 2.09% from the year-ago period.
LLY's full-year Zacks Consensus Estimates are calling for earnings of $7.91 per share and revenue of $28.67 billion. These results would represent year-over-year changes of -3.06% and +1.24%, respectively.
Investors should also note any recent changes to analyst estimates for Eli Lilly. These revisions help to show the ever-changing nature of 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.73% lower. 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 41.87. This represents a premium compared to its industry's average Forward P/E of 12.54.
Investors should also note that LLY has a PEG ratio of 2.12 right now. 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 1.73 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 93, putting it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.