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Eli Lilly (LLY) Gains As Market Dips: What You Should Know

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $243.58, marking a +0.15% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.47%.

Coming into today, shares of the drugmaker had gained 6.57% in the past month. In that same time, the Medical sector lost 4.81%, while the S&P 500 gained 3.38%.

LLY will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021. In that report, analysts expect LLY to post earnings of $1.89 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.57 billion, up 19.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.86 per share and revenue of $27.13 billion. These totals would mark changes of -0.88% and +10.55%, respectively, from last year.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.42% lower. LLY is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, LLY is currently trading at a Forward P/E ratio of 30.96. For comparison, its industry has an average Forward P/E of 14.64, which means LLY is trading at a premium to the group.

It is also worth noting that LLY currently has a PEG ratio of 1.94. 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. LLY's industry had an average PEG ratio of 2.2 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 18% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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