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Why Eli Lilly (LLY) Outpaced the Stock Market Today
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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $630.19, marking a +0.75% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.57% for the day. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Shares of the drugmaker have appreciated by 6.96% over the course of the past month, outperforming the Medical sector's gain of 6.86% and the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of Eli Lilly in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 6, 2024. In that report, analysts expect Eli Lilly to post earnings of $2.77 per share. This would mark year-over-year growth of 32.54%. Our most recent consensus estimate is calling for quarterly revenue of $8.86 billion, up 21.31% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).
In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 49.94. For comparison, its industry has an average Forward P/E of 14.53, which means Eli Lilly is trading at a premium to the group.
It is also worth noting that LLY currently has a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.89.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why Eli Lilly (LLY) Outpaced the Stock Market Today
In the latest trading session, Eli Lilly (LLY - Free Report) closed at $630.19, marking a +0.75% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.57% for the day. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Shares of the drugmaker have appreciated by 6.96% over the course of the past month, outperforming the Medical sector's gain of 6.86% and the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of Eli Lilly in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 6, 2024. In that report, analysts expect Eli Lilly to post earnings of $2.77 per share. This would mark year-over-year growth of 32.54%. Our most recent consensus estimate is calling for quarterly revenue of $8.86 billion, up 21.31% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).
In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 49.94. For comparison, its industry has an average Forward P/E of 14.53, which means Eli Lilly is trading at a premium to the group.
It is also worth noting that LLY currently has a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.89.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.