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Eli Lilly (LLY) Rises Higher Than Market: Key Facts

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In the latest market close, Eli Lilly (LLY - Free Report) reached $598.05, with a +1.66% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.45%.

Prior to today's trading, shares of the drugmaker had lost 0.52% over the past month. This has lagged the Medical sector's gain of 2.55% and the S&P 500's gain of 4.91% in that time.

The upcoming earnings release of Eli Lilly will be of great interest to investors. In that report, analysts expect Eli Lilly to post earnings of $2.79 per share. This would mark year-over-year growth of 33.49%. Simultaneously, our latest consensus estimate expects the revenue to be $8.87 billion, showing a 21.54% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.62 per share and a revenue of $33.64 billion, demonstrating changes of -16.62% and +17.88%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.43% lower. At present, Eli Lilly boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Eli Lilly is currently being traded at a Forward P/E ratio of 88.9. This denotes a premium relative to the industry's average Forward P/E of 15.44.

We can additionally observe that LLY currently boasts a PEG ratio of 3.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LLY's industry had an average PEG ratio of 2.08 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 50, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank is ordered 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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