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Eli Lilly (LLY) Advances While Market Declines: Some Information for Investors

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Eli Lilly (LLY - Free Report) closed the most recent trading day at $774.90, moving +0.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.42%.

Coming into today, shares of the drugmaker had gained 0.16% in the past month. In that same time, the Medical sector lost 1.21%, while the S&P 500 gained 2.67%.

The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is forecasted to report an EPS of $2.61, showcasing a 61.11% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $8.88 billion, reflecting a 27.54% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.42 per share and a revenue of $41.13 billion, indicating changes of +96.52% and +20.54%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.61% lower. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).

In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 62.24. For comparison, its industry has an average Forward P/E of 14.57, which means Eli Lilly is trading at a premium to the group.

Also, we should mention that LLY has a PEG ratio of 1.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 18% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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