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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 the most recent trading day at $464.49, moving +1.26% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Heading into today, shares of the drugmaker had gained 6.81% over the past month, outpacing the Medical sector's gain of 2.16% and the S&P 500's gain of 4.25% in that time.
Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. On that day, Eli Lilly is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 57.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.52 billion, up 15.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.78 per share and revenue of $31.44 billion. These totals would mark changes of +10.58% and +10.17%, respectively, from last year.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. 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 52.24. For comparison, its industry has an average Forward P/E of 14.6, which means Eli Lilly is trading at a premium to the group.
It is also worth noting that LLY currently has a PEG ratio of 2.1. 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 1.76 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 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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Eli Lilly (LLY) Outpaces Stock Market Gains: What You Should Know
Eli Lilly (LLY - Free Report) closed the most recent trading day at $464.49, moving +1.26% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Heading into today, shares of the drugmaker had gained 6.81% over the past month, outpacing the Medical sector's gain of 2.16% and the S&P 500's gain of 4.25% in that time.
Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. On that day, Eli Lilly is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 57.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.52 billion, up 15.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.78 per share and revenue of $31.44 billion. These totals would mark changes of +10.58% and +10.17%, respectively, from last year.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. 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 52.24. For comparison, its industry has an average Forward P/E of 14.6, which means Eli Lilly is trading at a premium to the group.
It is also worth noting that LLY currently has a PEG ratio of 2.1. 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 1.76 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 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.