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Eli Lilly (LLY) Stock Slides as Market Rises: Facts to Know Before You Trade

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Eli Lilly (LLY - Free Report) closed at $796.03 in the latest trading session, marking a -0.44% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.82% for the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 1.77%.

The drugmaker's stock has dropped by 2.35% in the past month, exceeding the Medical sector's loss of 4.06% and lagging the S&P 500's gain of 0.8%.

The investment community will be closely monitoring the performance of Eli Lilly in its forthcoming earnings report. The company is predicted to post an EPS of $5.48, indicating a 120.08% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.08 billion, indicating a 50.57% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.17 per share and revenue of $45.59 billion. These totals would mark changes of +108.39% and +33.62%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% lower. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Eli Lilly has a Forward P/E ratio of 60.69 right now. This signifies a premium in comparison to the average Forward P/E of 14.2 for its industry.

It is also worth noting that LLY currently has a PEG ratio of 3.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. LLY's industry had an average PEG ratio of 1.48 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 38% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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