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

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Eli Lilly (LLY - Free Report) closed at $795.67 in the latest trading session, marking a -0.08% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 1.35%.

Shares of the drugmaker witnessed a gain of 5.47% over the previous month, beating the performance of the Medical sector with its loss of 3.78% and the S&P 500's gain of 0.22%.

The investment community will be closely monitoring the performance of Eli Lilly in its forthcoming earnings report. It is anticipated that the company will report an EPS of $5.49, marking a 120.48% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.08 billion, up 50.57% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $13.17 per share and a revenue of $45.59 billion, demonstrating changes of +108.39% and +33.62%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Eli Lilly presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Eli Lilly is holding a Forward P/E ratio of 60.48. For comparison, its industry has an average Forward P/E of 13.85, which means Eli Lilly is trading at a premium to the group.

It's also important to note that LLY currently trades at a PEG ratio of 3.02. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 140, positioning it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LLY in the coming trading sessions, be sure to utilize Zacks.com.


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