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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 $183.68, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 1.12%.

Prior to today's trading, shares of the drugmaker had lost 7.39% over the past month. This has lagged the Medical sector's loss of 0.52% and the S&P 500's gain of 1.74% in that time.

Wall Street will be looking for positivity from LLY as it approaches its next earnings report date. This is expected to be April 27, 2021. The company is expected to report EPS of $2.18, up 24.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.11 billion, up 21.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.20 per share and revenue of $27.6 billion, which would represent changes of +3.4% and +12.45%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LLY. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 remained stagnant. LLY currently has a Zacks Rank of #3 (Hold).

In terms of valuation, LLY is currently trading at a Forward P/E ratio of 22.66. For comparison, its industry has an average Forward P/E of 13.32, which means LLY is trading at a premium to the group.

Investors should also note that LLY has a PEG ratio of 1.86 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. LLY's industry had an average PEG ratio of 1.91 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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