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Eli Lilly (LLY) Declines More Than Market: Some Information for Investors

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $762.95, marking a -5.59% move from the previous day. This change lagged the S&P 500's daily loss of 0.3%. On the other hand, the Dow registered a loss of 0.46%, and the technology-centric Nasdaq decreased by 0.38%.

The drugmaker's shares have seen an increase of 3.67% over the last month, surpassing the Medical sector's gain of 0.76% and the S&P 500's gain of 3.64%.

The upcoming earnings release of Eli Lilly will be of great interest to investors. The company's earnings report is expected on August 7, 2025. It is anticipated that the company will report an EPS of $5.61, marking a 43.11% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.75 billion, indicating a 30.49% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $22.05 per share and revenue of $60.55 billion, which would represent changes of +69.75% and +34.43%, respectively, from the prior year.

Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.48% higher within the past month. 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 36.64. This indicates a premium in contrast to its industry's Forward P/E of 14.23.

Also, we should mention that LLY has a PEG ratio of 1.15. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.24 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 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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