Eli Lilly (LLY) closed at $1,081.00 in the latest trading session, marking a +1.64% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
Shares of the drugmaker have appreciated by 3.51% over the course of the past month, outperforming the Medical sector's gain of 2.84%, and the S&P 500's gain of 1.89%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. On that day, Eli Lilly is projected to report earnings of $7.47 per share, which would represent year-over-year growth of 40.41%. At the same time, our most recent consensus estimate is projecting a revenue of $18.18 billion, reflecting a 34.36% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $23.78 per share and a revenue of $63.97 billion, indicating changes of +83.06% and 0%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Eli Lilly. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.29% higher. Eli Lilly is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Eli Lilly is presently trading at a Forward P/E ratio of 31.66. This denotes a premium relative to the industry average Forward P/E of 15.26.
Also, we should mention that LLY has a PEG ratio of 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.59.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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