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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 $151.97, moving +1.78% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.02%. Elsewhere, the Dow gained 1.6%, while the tech-heavy Nasdaq added 2.71%.

Prior to today's trading, shares of the drugmaker had lost 0.88% over the past month. This has was narrower than the Medical sector's loss of 2.71% and lagged the S&P 500's loss of 0.39% in that time.

LLY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.76, up 18.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.88 billion, up 7.28% from the prior-year quarter.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $7.29 per share and revenue of $23.83 billion. These results would represent year-over-year changes of +20.7% and +6.77%, respectively.

Any recent changes to analyst estimates for LLY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. LLY is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, LLY is holding a Forward P/E ratio of 20.48. For comparison, its industry has an average Forward P/E of 14.63, which means LLY is trading at a premium to the group.

Investors should also note that LLY has a PEG ratio of 1.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LLY's industry had an average PEG ratio of 2.02 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 127, which puts it in the top 50% 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.

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