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Why Eli Lilly (LLY) Dipped More Than Broader Market Today
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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $628.91, marking a -0.89% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.
The drugmaker's stock has climbed by 9.44% in the past month, exceeding the Medical sector's gain of 3.8% and the S&P 500's gain of 1.2%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is slated to reveal its earnings on February 6, 2024. The company's earnings per share (EPS) are projected to be $2.77, reflecting a 32.54% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.86 billion, up 21.38% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.51% lower. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).
With respect to valuation, Eli Lilly is currently being traded at a Forward P/E ratio of 50.73. This valuation marks a premium compared to its industry's average Forward P/E of 14.43.
Investors should also note that LLY has a PEG ratio of 2.04 right now. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.82.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why Eli Lilly (LLY) Dipped More Than Broader Market Today
In the latest trading session, Eli Lilly (LLY - Free Report) closed at $628.91, marking a -0.89% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.
The drugmaker's stock has climbed by 9.44% in the past month, exceeding the Medical sector's gain of 3.8% and the S&P 500's gain of 1.2%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is slated to reveal its earnings on February 6, 2024. The company's earnings per share (EPS) are projected to be $2.77, reflecting a 32.54% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.86 billion, up 21.38% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.51% lower. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).
With respect to valuation, Eli Lilly is currently being traded at a Forward P/E ratio of 50.73. This valuation marks a premium compared to its industry's average Forward P/E of 14.43.
Investors should also note that LLY has a PEG ratio of 2.04 right now. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.82.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.