Eli Lilly (LLY – Free Report) closed at $773.84 in the latest trading session, marking a -1.19% move from the prior day. The stock’s change was less than the S&P 500’s daily loss of 1.07%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 1.19%.
Heading into today, shares of the drugmaker had lost 1.53% over the past month, outpacing the Medical sector’s loss of 5.64% and lagging the S&P 500’s loss of 0.36% in that time.
Market participants will be closely following the financial results of Eli Lilly in its upcoming release. In that report, analysts expect Eli Lilly to post earnings of $5.49 per share. This would mark year-over-year growth of 120.48%. Simultaneously, our latest consensus estimate expects the revenue to be $14.08 billion, showing a 50.57% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.17 per share and a revenue of $45.59 billion, indicating changes of +108.39% and +33.62%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% lower. Right now, Eli Lilly possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 59.48. Its industry sports an average Forward P/E of 13.88, so one might conclude that Eli Lilly is trading at a premium comparatively.
We can additionally observe that LLY currently boasts a PEG ratio of 2.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.46.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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