In the latest trading session, Eli Lilly (LLY) closed at $1,056.88, marking a +1.45% move from the previous day. This move outpaced the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.38%.
Coming into today, shares of the drugmaker had lost 0.74% in the past month. In that same time, the Medical sector gained 1.26%, while the S&P 500 gained 0.87%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is forecasted to report an EPS of $7.48, showcasing a 40.6% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $18.16 billion, showing a 34.2% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $23.78 per share and a revenue of $63.97 billion, demonstrating changes of +83.06% and +42.02%, respectively, from the preceding year.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.11% lower. At present, Eli Lilly boasts a Zacks Rank of #3 (Hold).
Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 43.8. For comparison, its industry has an average Forward P/E of 13.38, which means Eli Lilly is trading at a premium to the group.
We can also see that LLY currently has a PEG ratio of 1.32. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.62 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 184, placing it within the bottom 26% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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