In the latest trading session, Eli Lilly (LLY – Free Report) closed at $773.29, marking a +1.07% move from the previous day. The stock outpaced the S&P 500’s daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq decreased by 1.89%.
The drugmaker’s shares have seen a decrease of 4.79% over the last month, surpassing the Medical sector’s loss of 6.22% and falling behind the S&P 500’s loss of 1.7%.
Investors will be eagerly watching for the performance of Eli Lilly in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $5.48, marking a 120.08% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $14.06 billion, showing a 50.3% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Eli Lilly. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.78% higher. Eli Lilly currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Eli Lilly is at present trading with a Forward P/E ratio of 31.82. This expresses a premium compared to the average Forward P/E of 12.34 of its industry.
It’s also important to note that LLY currently trades at a PEG ratio of 1.59. 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. LLY’s industry had an average PEG ratio of 1.26 as of yesterday’s close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 24% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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