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Eli Lilly (LLY) Stock Moves -0.58%: What You Should Know

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $357.78, marking a -0.58% move from the previous day. This change was narrower than the S&P 500's 0.9% loss on the day. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the drugmaker had lost 0.5% in the past month. In that same time, the Medical sector gained 2.93%, while the S&P 500 lost 2.66%.

Eli Lilly will be looking to display strength as it nears its next earnings release. On that day, Eli Lilly is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 23.29%. Meanwhile, our latest consensus estimate is calling for revenue of $7.31 billion, down 8.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.76 per share and revenue of $28.56 billion. These totals would mark changes of -4.9% and +0.85%, respectively, from last year.

Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. These revisions help to show the ever-changing nature of near-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 0.08% lower. Eli Lilly currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Eli Lilly has a Forward P/E ratio of 46.36 right now. This represents a premium compared to its industry's average Forward P/E of 14.9.

It is also worth noting that LLY currently has a PEG ratio of 2.3. 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 2.15 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% 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.

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


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