In the latest trading session, Eli Lilly (LLY) closed at $154.49, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily gain of 1.64%. Meanwhile, the Dow gained 0.88%, and the Nasdaq, a tech-heavy index, added 2.56%.
Coming into today, shares of the drugmaker had gained 7.29% in the past month. In that same time, the Medical sector gained 2.53%, while the S&P 500 gained 2.44%.
Investors will be hoping for strength from LLY as it approaches its next earnings release, which is expected to be October 27, 2020. The company is expected to report EPS of $1.78, up 20.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.90 billion, up 7.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.32 per share and revenue of $23.86 billion, which would represent changes of +21.19% and +6.9%, respectively, from the prior year.
Any recent changes to analyst estimates for LLY should also be noted by investors. 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.
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.
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 0.41% higher. LLY is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note LLY's current valuation metrics, including its Forward P/E ratio of 21.43. Its industry sports an average Forward P/E of 14.32, so we one might conclude that LLY is trading at a premium comparatively.
We can also see that LLY currently has a PEG ratio of 1.37. 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 was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 124, which puts it in the top 50% 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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Eli Lilly and Company (LLY) : Free Stock Analysis Report
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