Eli Lilly (LLY) closed at $139.07 in the latest trading session, marking a -1.52% move from the prior day. This change lagged the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.93%.
Prior to today's trading, shares of the drugmaker had gained 7.68% over the past month. This has outpaced the Medical sector's gain of 0.17% and the S&P 500's gain of 3.3% in that time.
Wall Street will be looking for positivity from LLY as it approaches its next earnings report date. This is expected to be January 30, 2020. The company is expected to report EPS of $1.52, up 14.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.07 billion, down 5.69% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for LLY. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. LLY is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, LLY is holding a Forward P/E ratio of 20.87. This represents a premium compared to its industry's average Forward P/E of 16.01.
We can also see that LLY currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.96 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
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