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Eli Lilly (LLY) Stock Sinks As Market Gains: What You Should Know
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Eli Lilly (LLY - Free Report) closed at $145.73 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.78%.
Heading into today, shares of the drugmaker had gained 4.43% over the past month, outpacing the Medical sector's loss of 6.04% and the S&P 500's loss of 7.42% in that time.
LLY will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2020. The company is expected to report EPS of $1.54, up 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.49 billion, up 7.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $23.95 billion, which would represent changes of +12.09% and +7.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LLY. 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.
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 0.05% higher. LLY is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that LLY has a Forward P/E ratio of 21.59 right now. This represents a premium compared to its industry's average Forward P/E of 14.25.
Also, we should mention that LLY has a PEG ratio of 1.83. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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 (LLY) Stock Sinks As Market Gains: What You Should Know
Eli Lilly (LLY - Free Report) closed at $145.73 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.78%.
Heading into today, shares of the drugmaker had gained 4.43% over the past month, outpacing the Medical sector's loss of 6.04% and the S&P 500's loss of 7.42% in that time.
LLY will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2020. The company is expected to report EPS of $1.54, up 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.49 billion, up 7.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $23.95 billion, which would represent changes of +12.09% and +7.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LLY. 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.
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 0.05% higher. LLY is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that LLY has a Forward P/E ratio of 21.59 right now. This represents a premium compared to its industry's average Forward P/E of 14.25.
Also, we should mention that LLY has a PEG ratio of 1.83. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.