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Eli Lilly (LLY) Laps the Stock Market: Here's Why

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In the latest close session, Eli Lilly (LLY - Free Report) was up +2.44% at $839.87. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.28%.

Heading into today, shares of the drugmaker had gained 10.36% over the past month, outpacing the Medical sector's gain of 4.67% and the S&P 500's gain of 4.83%.

The upcoming earnings release of Eli Lilly will be of great interest to investors. The company's earnings report is expected on October 30, 2025. The company is predicted to post an EPS of $6.42, indicating a 444.07% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $16.05 billion, indicating a 40.32% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $23.03 per share and a revenue of $61.81 billion, demonstrating changes of +77.29% and +37.22%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Eli Lilly presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 35.6. This expresses a premium compared to the average Forward P/E of 14.84 of its industry.

Investors should also note that LLY has a PEG ratio of 1.15 right now. 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 1.61 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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