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Eli Lilly (LLY) Stock Sinks As Market Gains: Here's Why
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Eli Lilly (LLY - Free Report) closed the latest trading day at $629.68, indicating a -0.19% change from the previous session's end. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.43%.
The drugmaker's stock has climbed by 10.6% in the past month, exceeding the Medical sector's gain of 2.29% and the S&P 500's gain of 2.08%.
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. The company is expected to report EPS of $2.77, up 32.54% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 21.38% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been a 0.26% fall in the Zacks Consensus EPS estimate. Currently, Eli Lilly is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 50.42. This indicates a premium in contrast to its industry's Forward P/E of 14.75.
Investors should also note that LLY has a PEG ratio of 2.03 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.82 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 161, which puts it in the bottom 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Eli Lilly (LLY) Stock Sinks As Market Gains: Here's Why
Eli Lilly (LLY - Free Report) closed the latest trading day at $629.68, indicating a -0.19% change from the previous session's end. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.43%.
The drugmaker's stock has climbed by 10.6% in the past month, exceeding the Medical sector's gain of 2.29% and the S&P 500's gain of 2.08%.
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. The company is expected to report EPS of $2.77, up 32.54% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 21.38% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been a 0.26% fall in the Zacks Consensus EPS estimate. Currently, Eli Lilly is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 50.42. This indicates a premium in contrast to its industry's Forward P/E of 14.75.
Investors should also note that LLY has a PEG ratio of 2.03 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.82 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 161, which puts it in the bottom 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.