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Eli Lilly (LLY) Gains But Lags Market: What You Should Know
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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $440.60, marking a +0.28% move from the previous day. This change lagged the S&P 500's 0.74% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.
Coming into today, shares of the drugmaker had lost 1.42% in the past month. In that same time, the Medical sector lost 1.4%, while the S&P 500 gained 3.34%.
Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. This is expected to be August 8, 2023. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.78 per share and revenue of $31.4 billion, which would represent changes of +10.58% and +10%, respectively, from the prior year.
It is also important to note the 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.
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.
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 0.11% lower. Eli Lilly is currently a Zacks Rank #3 (Hold).
Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 50.04. This represents a premium compared to its industry's average Forward P/E of 14.45.
It is also worth noting that LLY currently has a PEG ratio of 2.01. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.61 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 169, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Eli Lilly (LLY) Gains But Lags Market: What You Should Know
In the latest trading session, Eli Lilly (LLY - Free Report) closed at $440.60, marking a +0.28% move from the previous day. This change lagged the S&P 500's 0.74% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.
Coming into today, shares of the drugmaker had lost 1.42% in the past month. In that same time, the Medical sector lost 1.4%, while the S&P 500 gained 3.34%.
Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. This is expected to be August 8, 2023. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.78 per share and revenue of $31.4 billion, which would represent changes of +10.58% and +10%, respectively, from the prior year.
It is also important to note the 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.
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.
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 0.11% lower. Eli Lilly is currently a Zacks Rank #3 (Hold).
Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 50.04. This represents a premium compared to its industry's average Forward P/E of 14.45.
It is also worth noting that LLY currently has a PEG ratio of 2.01. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.61 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 169, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.