In the latest trading session, Eli Lilly (LLY) closed at $141.52, marking a -1.41% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 1.43%.
Wall Street will be looking for positivity from LLY as it approaches its next earnings report date. This is expected to be July 30, 2020. The company is expected to report EPS of $1.60, up 6.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.81 billion, up 3.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.81 per share and revenue of $23.93 billion. These totals would mark changes of +12.75% and +7.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LLY. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LLY is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, LLY is holding a Forward P/E ratio of 21.08. For comparison, its industry has an average Forward P/E of 14.77, which means LLY is trading at a premium to the group.
Also, we should mention that LLY has a PEG ratio of 1.72. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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