Eli Lilly (LLY) ended the recent trading session at $797.48, demonstrating a -0.3% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. On the other hand, the Dow registered a gain of 0.86%, and the technology-centric Nasdaq decreased by 0.38%.
The drugmaker's stock has climbed by 1.37% in the past month, exceeding the Medical sector's loss of 5.3% and the S&P 500's loss of 2.2%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company's upcoming EPS is projected at $5.43, signifying a 118.07% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $13.93 billion, up 48.94% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Eli Lilly is holding a Forward P/E ratio of 33.28. This represents a premium compared to its industry's average Forward P/E of 12.75.
We can also see that LLY currently has a PEG ratio of 1.66. 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. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.28.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 26% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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