The Zacks Medical sector has primarily traded in line with the general market in 2022, down roughly 19%.
A big-time player in the realm, Eli Lilly (LLY - Free Report) , is on deck to unveil quarterly earnings on November 1st before the market open.
Eli Lilly is one of the world’s largest pharmaceutical companies, boasting a diversified product profile that includes a solid lineup of new successful drugs.
Currently, the pharmaceutical titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a D.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
LLY shares have been visibly strong in 2022, up more than 30% and leaving the S&P 500 in the dust.
Shares have continued on their market-beating trajectory over the last three months, up nearly 10% and again crushing the S&P 500’s performance.
The strong price action of Eli Lilly shares is undoubtedly a highlight, reflecting that buyers have stepped up to the plate all year long, something we can’t say for the majority of stocks in 2022.
Shares trade at steep multiples; the company’s 45.1X forward earnings multiple is on the higher end, well above its five-year median of 21.1X and reflecting a 105% premium relative to its Zacks Medical sector.
Quarterly Estimates
Two analysts have lowered their earnings outlook for the quarter over the last 60 days. Still, the Zacks Consensus EPS Estimate of $1.97 suggests a Y/Y earnings uptick of a modest 1.6%.
Further, the Zacks Consensus Sales Estimate of $6.9 billion indicates Y/Y revenue growth of roughly 2.1%.
Quarterly Performance & Market Reactions
LLY has struggled to post strong bottom-line results, falling short of the Zacks Consensus EPS Estimate in five of its last six quarters. In its latest print, LLY fell short of earnings expectations by 30%.
Top-line results have been much more positive; LLY has penciled in four revenue beats over its last five quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, it’s worth noting that the market wasn’t impressed with the company’s latest print, with shares moving downwards by roughly 4% following the release.
Putting Everything Together
LLY shares have been a bright spot in an otherwise dim market in 2022, outperforming the S&P 500 across several timeframes.
The company’s forward earnings multiple is well above its five-year median and its Zacks Medical sector average.
Analysts have primarily bearish in their earnings outlook, with estimates suggesting slight Y/Y upticks in revenue and earnings.
LLY has fallen short of EPS expectations as of late, but revenue results have consistently beat expectations.
Heading into the release, Eli Lilly (LLY - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -2.5%.
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The Zacks Medical sector has primarily traded in line with the general market in 2022, down roughly 19%.
A big-time player in the realm, Eli Lilly (LLY - Free Report) , is on deck to unveil quarterly earnings on November 1st before the market open.
Eli Lilly is one of the world’s largest pharmaceutical companies, boasting a diversified product profile that includes a solid lineup of new successful drugs.
Currently, the pharmaceutical titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a D.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
LLY shares have been visibly strong in 2022, up more than 30% and leaving the S&P 500 in the dust.
Shares have continued on their market-beating trajectory over the last three months, up nearly 10% and again crushing the S&P 500’s performance.
The strong price action of Eli Lilly shares is undoubtedly a highlight, reflecting that buyers have stepped up to the plate all year long, something we can’t say for the majority of stocks in 2022.
Shares trade at steep multiples; the company’s 45.1X forward earnings multiple is on the higher end, well above its five-year median of 21.1X and reflecting a 105% premium relative to its Zacks Medical sector.
Quarterly Estimates
Two analysts have lowered their earnings outlook for the quarter over the last 60 days. Still, the Zacks Consensus EPS Estimate of $1.97 suggests a Y/Y earnings uptick of a modest 1.6%.
Further, the Zacks Consensus Sales Estimate of $6.9 billion indicates Y/Y revenue growth of roughly 2.1%.
Quarterly Performance & Market Reactions
LLY has struggled to post strong bottom-line results, falling short of the Zacks Consensus EPS Estimate in five of its last six quarters. In its latest print, LLY fell short of earnings expectations by 30%.
Top-line results have been much more positive; LLY has penciled in four revenue beats over its last five quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, it’s worth noting that the market wasn’t impressed with the company’s latest print, with shares moving downwards by roughly 4% following the release.
Putting Everything Together
LLY shares have been a bright spot in an otherwise dim market in 2022, outperforming the S&P 500 across several timeframes.
The company’s forward earnings multiple is well above its five-year median and its Zacks Medical sector average.
Analysts have primarily bearish in their earnings outlook, with estimates suggesting slight Y/Y upticks in revenue and earnings.
LLY has fallen short of EPS expectations as of late, but revenue results have consistently beat expectations.
Heading into the release, Eli Lilly (LLY - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -2.5%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on LLY - FREE