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Eli Lilly (LLY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $160.04, marking a -0.6% move from the previous day. This change lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.23%.

Coming into today, shares of the drugmaker had gained 14.16% in the past month. In that same time, the Medical sector gained 3.63%, while the S&P 500 gained 3.58%.

LLY will be looking to display strength as it nears its next earnings release. On that day, LLY is projected to report earnings of $2.09 per share, which would represent year-over-year growth of 20.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.86 billion, up 12.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $23.87 billion. These totals would mark changes of +20.86% and +6.94%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LLY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.61% lower. LLY is currently a Zacks Rank #3 (Hold).

Digging into valuation, LLY currently has a Forward P/E ratio of 22.06. Its industry sports an average Forward P/E of 14.44, so we one might conclude that LLY is trading at a premium comparatively.

Investors should also note that LLY has a PEG ratio of 1.51 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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