Eli Lilly (LLY) Gains As Market Dips: What You Should Know
In the latest trading session, Eli Lilly (LLY) closed at $289.64, marking a +0.7% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the drugmaker had gained 19.69% over the past month, outpacing the Medical sector's gain of 6.41% and the S&P 500's gain of 2.67% in that time.
Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. This is expected to be April 28, 2022. In that report, analysts expect Eli Lilly to post earnings of $2.15 per share. This would mark year-over-year growth of 14.97%. Meanwhile, our latest consensus estimate is calling for revenue of $6.64 billion, down 2.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.71 per share and revenue of $28.3 billion, which would represent changes of +6.74% and -0.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 has moved 1.31% higher within the past month. Eli Lilly is currently a Zacks Rank #3 (Hold).
In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 33.01. For comparison, its industry has an average Forward P/E of 12.85, which means Eli Lilly is trading at a premium to the group.
Also, we should mention that LLY has a PEG ratio of 2.33. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
