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Eli Lilly (LLY) Falls More Steeply Than Broader Market: What Investors Need to Know

By Zacks Equity Research | September 23, 2025, 5:45 PM

Eli Lilly (LLY) closed at $746.98 in the latest trading session, marking a -1.06% move from the prior day. This change lagged the S&P 500's daily loss of 0.55%. On the other hand, the Dow registered a loss of 0.19%, and the technology-centric Nasdaq decreased by 0.95%.

Prior to today's trading, shares of the drugmaker had gained 8.57% outpaced the Medical sector's loss of 0.2% and the S&P 500's gain of 3.64%.

The upcoming earnings release of Eli Lilly will be of great interest to investors. The company's earnings report is expected on October 30, 2025. The company's upcoming EPS is projected at $6.42, signifying a 444.07% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.05 billion, up 40.32% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.03 per share and a revenue of $61.81 billion, signifying shifts of +77.29% and +37.22%, respectively, from the 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% increase. Eli Lilly is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 32.78. This signifies a premium in comparison to the average Forward P/E of 14.65 for its industry.

One should further note that LLY currently holds a PEG ratio of 1.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.53.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Eli Lilly and Company (LLY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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