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

·3 min read

Eli Lilly (LLY) closed the most recent trading day at $301.23, moving -1.89% from the previous trading session. This move lagged the S&P 500's daily loss of 0.78%. At the same time, the Dow lost 0.88%, and the tech-heavy Nasdaq lost 0.26%.

Heading into today, shares of the drugmaker had lost 4.11% over the past month, outpacing the Medical sector's loss of 5.42% and lagging the S&P 500's loss of 3.4% in that time.

Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. The company is expected to report EPS of $1.93, down 0.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.01 billion, up 3.52% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $28.82 billion. These totals would mark changes of -2.08% and +1.75%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.57% lower. Eli Lilly currently has a Zacks Rank of #3 (Hold).

Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 38.41. This represents a premium compared to its industry's average Forward P/E of 12.6.

Meanwhile, LLY's PEG ratio is currently 2.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LLY's industry had an average PEG ratio of 1.88 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 91, which puts it in the top 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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