Eli Lilly (LLY) Stock Moves -0.72%: What You Should Know
In the latest trading session, Eli Lilly (LLY) closed at $200.54, marking a -0.72% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 2.11%.
Coming into today, shares of the drugmaker had gained 2.56% in the past month. In that same time, the Medical sector lost 4.09%, while the S&P 500 lost 0.11%.
Investors will be hoping for strength from LLY as it approaches its next earnings release, which is expected to be April 27, 2021. In that report, analysts expect LLY to post earnings of $2.18 per share. This would mark year-over-year growth of 24.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.11 billion, up 21.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.14 per share and revenue of $27.6 billion. These totals would mark changes of +2.65% and +12.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LLY. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. LLY currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LLY has a Forward P/E ratio of 24.83 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.94.
It is also worth noting that LLY currently has a PEG ratio of 2.04. 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 1.92 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 195, putting it in the bottom 24% 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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