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Eli Lilly (LLY) Gains But Lags Market: What You Should Know

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Eli Lilly (LLY - Free Report) closed the most recent trading day at $351.31, moving +0.98% from the previous trading session. This move lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.

Heading into today, shares of the drugmaker had gained 13.14% over the past month, outpacing the Medical sector's gain of 3.34% and the S&P 500's gain of 2.94% in that time.

Eli Lilly will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. On that day, Eli Lilly is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 1.55%. Our most recent consensus estimate is calling for quarterly revenue of $6.91 billion, up 2.09% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.93 per share and revenue of $28.67 billion, which would represent changes of -2.82% and +1.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.55% lower. Eli Lilly currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Eli Lilly has a Forward P/E ratio of 43.88 right now. Its industry sports an average Forward P/E of 13.08, so we one might conclude that Eli Lilly is trading at a premium comparatively.

Also, we should mention that LLY has a PEG ratio of 2.22. 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 1.77 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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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