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In the latest trading session, Eli Lilly (LLY) closed at $290.90, marking a +0.98% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.
Prior to today's trading, shares of the drugmaker had lost 2.66% over the past month. This has was narrower than the Medical sector's loss of 5.2% and the S&P 500's loss of 10.02% in that time.
Investors will be hoping for strength from Eli Lilly as it approaches its next earnings release. The company is expected to report EPS of $1.87, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.88 billion, up 2.11% from the year-ago period.
LLY's full-year Zacks Consensus Estimates are calling for earnings of $8.27 per share and revenue of $29.03 billion. These results would represent year-over-year changes of +1.35% and +2.5%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. 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 35.18. Its industry sports an average Forward P/E of 12.48, so we one might conclude that Eli Lilly is trading at a premium comparatively.
Also, we should mention that LLY has a PEG ratio of 2.02. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 104, putting 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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