Eli Lilly (LLY) ended the recent trading session at $762.18, demonstrating a -1.23% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.14%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%.
Prior to today's trading, shares of the drugmaker had gained 1.18% outpaced the Medical sector's loss of 1.94% and lagged the S&P 500's gain of 5.35%.
The upcoming earnings release of Eli Lilly will be of great interest to investors. The company's earnings report is expected on August 7, 2025. It is anticipated that the company will report an EPS of $5.55, marking a 41.58% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.53 billion, indicating a 28.53% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.99 per share and revenue of $60.12 billion. These totals would mark changes of +69.28% and +33.48%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eli Lilly. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Eli Lilly is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 35.09. Its industry sports an average Forward P/E of 14.2, so one might conclude that Eli Lilly is trading at a premium comparatively.
Investors should also note that LLY has a PEG ratio of 1.12 right now. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.24.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 23% 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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Eli Lilly and Company (LLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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