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Why the Market Dipped But Eli Lilly (LLY) Gained Today

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $1,037.15, marking a +1.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.94%.

The stock of drugmaker has fallen by 4.7% in the past month, lagging the Medical sector's loss of 2.36% and the S&P 500's gain of 0.89%.

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 4, 2026. The company is predicted to post an EPS of $6.99, indicating a 31.39% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $17.87 billion, up 32.06% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $23.74 per share and a revenue of $63.54 billion, indicating changes of +82.76% and 0%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Eli Lilly currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Eli Lilly is holding a Forward P/E ratio of 30.81. For comparison, its industry has an average Forward P/E of 16.41, which means Eli Lilly is trading at a premium to the group.

It is also worth noting that LLY currently has a PEG ratio of 0.77. 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. LLY's industry had an average PEG ratio of 1.74 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 21% 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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