Eli Lilly (LLY) Surpasses Market Returns: Some Facts Worth Knowing

In the latest trading session, Eli Lilly (LLY) closed at $772.78, marking a +1.33% move from the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.39%.

The the stock of drugmaker has fallen by 2.48% in the past month, lagging the Medical sector's gain of 0.13% and the S&P 500's gain of 2.97%.

The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is predicted to post an EPS of $2.56, indicating a 58.02% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.83 billion, indicating a 26.9% growth compared to the corresponding quarter of the prior year.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $12.41 per share and revenue of $41.06 billion. These results would represent year-over-year changes of +96.36% and +20.31%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.71% downward. Eli Lilly is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 61.46. This signifies a premium in comparison to the average Forward P/E of 14.16 for its industry.

We can also see that LLY currently has a PEG ratio of 1.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 18% of all 250+ industries.

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.

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 Report

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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.

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