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

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In the latest close session, Eli Lilly (LLY - Free Report) was up +1.26% at $1,157.49. The stock's change was more than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.

The stock of drugmaker has fallen by 0.54% in the past month, leading the Medical sector's loss of 4.26% and undershooting the S&P 500's gain of 0.84%.

Analysts and investors alike will be keeping a close eye on the performance of Eli Lilly in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2026. It is anticipated that the company will report an EPS of $9.83, marking a 40.03% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $22.14 billion, showing a 25.77% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $36.66 per share and revenue of $88.94 billion, indicating changes of +51.43% and +36.46%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.86% higher. Eli Lilly is currently a Zacks Rank #3 (Hold).

Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 31.18. This denotes a premium relative to the industry average Forward P/E of 15.89.

It is also worth noting that LLY currently has a PEG ratio of 1.4. 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 1.86 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 100, this industry ranks in the top 41% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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