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Eli Lilly (LLY) Stock Sinks As Market Gains: What You Should Know

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Eli Lilly (LLY) closed at $257.40 in the latest trading session, marking a -0.34% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%.

Coming into today, shares of the drugmaker had gained 0.9% in the past month. In that same time, the Medical sector gained 2.3%, while the S&P 500 gained 3.02%.

Wall Street will be looking for positivity from LLY as it approaches its next earnings report date. In that report, analysts expect LLY to post earnings of $1.97 per share. This would mark year-over-year growth of 27.92%. Our most recent consensus estimate is calling for quarterly revenue of $6.58 billion, up 14.64% from the year-ago period.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $7.87 per share and revenue of $27.22 billion. These results would represent year-over-year changes of -0.76% and +10.92%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. LLY is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note LLY's current valuation metrics, including its Forward P/E ratio of 32.83. Its industry sports an average Forward P/E of 14.7, 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 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.2 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.


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