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Eli Lilly (LLY) Dips More Than Broader Market: What You Should Know

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Eli Lilly (LLY - Free Report) closed the latest trading day at $572.04, indicating a -0.28% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.

Shares of the drugmaker witnessed a loss of 2.56% over the previous month, trailing the performance of the Medical sector with its gain of 5.79% and the S&P 500's gain of 5.21%.

The investment community will be closely monitoring the performance of Eli Lilly in its forthcoming earnings report. In that report, analysts expect Eli Lilly to post earnings of $2.77 per share. This would mark year-over-year growth of 32.54%. Simultaneously, our latest consensus estimate expects the revenue to be $8.87 billion, showing a 21.54% escalation compared to the year-ago quarter.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $6.61 per share and revenue of $33.63 billion. These results would represent year-over-year changes of -16.75% and +17.82%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.23% lower within the past month. Eli Lilly is currently a Zacks Rank #3 (Hold).

In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 86.83. This denotes a premium relative to the industry's average Forward P/E of 15.69.

It is also worth noting that LLY currently has a PEG ratio of 3.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.17 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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