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Eli Lilly (LLY) Outpaces Stock Market Gains: What You Should Know

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Eli Lilly (LLY - Free Report) closed at $309.61 in the latest trading session, marking a +1.02% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the drugmaker had lost 1.23% over the past month. This has was narrower than the Medical sector's loss of 5.59% and the S&P 500's loss of 7.95% in that time.

Eli Lilly will be looking to display strength as it nears its next earnings release. On that day, Eli Lilly is projected to report earnings of $1.94 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.02 billion, up 3.7% from the year-ago period.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $8.01 per share and revenue of $28.83 billion. These results would represent year-over-year changes of -1.84% and +1.8%, respectively.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Eli Lilly is currently a Zacks Rank #3 (Hold).

Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 38.27. This represents a premium compared to its industry's average Forward P/E of 12.65.

We can also see that LLY currently has a PEG ratio of 1.97. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.89 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 94, putting it in the top 38% 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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