Eli Lilly (LLY) Gains But Lags Market: What You Should Know
Eli Lilly (LLY) closed the most recent trading day at $167.04, moving +0.65% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 2.51%.
Prior to today's trading, shares of the drugmaker had gained 3.04% over the past month. This has lagged the Medical sector's gain of 4.71% and the S&P 500's gain of 3.73% in that time.
Investors will be hoping for strength from LLY as it approaches its next earnings release, which is expected to be July 30, 2020. The company is expected to report EPS of $1.58, up 5.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.62 billion, down 0.22% from the year-ago period.
LLY's full-year Zacks Consensus Estimates are calling for earnings of $6.82 per share and revenue of $23.84 billion. These results would represent year-over-year changes of +12.91% and +6.79%, respectively.
Investors might also notice recent changes to analyst estimates for LLY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. LLY is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, LLY currently has a Forward P/E ratio of 24.35. This valuation marks a premium compared to its industry's average Forward P/E of 15.85.
Investors should also note that LLY has a PEG ratio of 1.54 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.21 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.