In the latest trading session, Eli Lilly (LLY) closed at $271.73, marking a -1.63% move from the previous day. This change lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.46%.
Coming into today, shares of the drugmaker had gained 12.48% in the past month. In that same time, the Medical sector gained 5.28%, while the S&P 500 gained 4.56%.
Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. On that day, Eli Lilly is projected to report earnings of $1.99 per share, which would represent a year-over-year decline of 27.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.56 billion, up 1.61% from the year-ago period.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. 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 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, 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. The Zacks Consensus EPS estimate has moved 1.79% higher within the past month. Eli Lilly is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Eli Lilly is holding a Forward P/E ratio of 33.78. Its industry sports an average Forward P/E of 13.91, so we one might conclude that Eli Lilly is trading at a premium comparatively.
It is also worth noting that LLY currently has a PEG ratio of 2.12. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.11 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 167, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Eli Lilly and Company (LLY): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
