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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 $337.65, marking a +0.91% move from the previous day. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 3.64%.

Coming into today, shares of the drugmaker had gained 5.68% in the past month. In that same time, the Medical sector gained 0.9%, while the S&P 500 gained 0.07%.

Eli Lilly will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. On that day, Eli Lilly is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 36.26%. Our most recent consensus estimate is calling for quarterly revenue of $6.79 billion, down 13.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.49 per share and revenue of $30.5 billion, which would represent changes of +6.93% and +6.87%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Eli Lilly. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Eli Lilly is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 39.41. This represents a premium compared to its industry's average Forward P/E of 14.1.

Investors should also note that LLY has a PEG ratio of 1.91 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LLY's industry had an average PEG ratio of 1.75 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 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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