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

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Eli Lilly (LLY - Free Report) closed at $326.92 in the latest trading session, marking a +1.52% move from the prior day. This move outpaced the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.38%.

Heading into today, shares of the drugmaker had gained 5% over the past month, lagging the Medical sector's gain of 7.32% and the S&P 500's gain of 7.91% in that time.

Eli Lilly will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. In that report, analysts expect Eli Lilly to post earnings of $1.83 per share. This would mark a year-over-year decline of 2.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.9 billion, up 2.39% from the year-ago period.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $8.29 per share and revenue of $29.11 billion. These results would represent year-over-year changes of +1.59% and +2.81%, respectively.

Investors should also note any recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. Eli Lilly currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 38.83. This valuation marks a premium compared to its industry's average Forward P/E of 12.25.

It is also worth noting that LLY currently has a PEG ratio of 2.23. 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 industry currently had an average PEG ratio of 2.11 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.

To follow LLY in the coming trading sessions, be sure to utilize Zacks.com.


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