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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 at $935.58 in the latest trading session, marking a -1.98% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.

The stock of drugmaker has fallen by 4.89% in the past month, leading the Medical sector's loss of 6.43% and undershooting the S&P 500's loss of 4.28%.

Market participants will be closely following the financial results of Eli Lilly in its upcoming release. The company plans to announce its earnings on April 30, 2026. It is anticipated that the company will report an EPS of $7.54, marking a 125.75% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $17.66 billion, up 38.72% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $34.16 per share and a revenue of $81.96 billion, demonstrating changes of +41.1% and +25.74%, respectively, from the preceding year.

Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Right now, Eli Lilly possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Eli Lilly is currently exchanging hands at a Forward P/E ratio of 27.94. Its industry sports an average Forward P/E of 14.79, so one might conclude that Eli Lilly is trading at a premium comparatively.

It is also worth noting that LLY currently has a PEG ratio of 1.13. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 2.36.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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