In the latest trading session, Eli Lilly (LLY) closed at $307.50, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Coming into today, shares of the drugmaker had lost 1.3% in the past month. In that same time, the Medical sector lost 6.55%, while the S&P 500 lost 10.4%.
Eli Lilly will be looking to display strength as it nears its next earnings release. On that day, Eli Lilly is projected to report earnings of $1.94 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.02 billion, up 3.7% from the year-ago period.
LLY's full-year Zacks Consensus Estimates are calling for earnings of $7.97 per share and revenue of $28.83 billion. These results would represent year-over-year changes of -2.33% and +1.8%, respectively.
Any recent changes to analyst estimates for Eli Lilly should also be noted by investors. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Eli Lilly is currently a Zacks Rank #3 (Hold).
Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 39.07. This valuation marks a premium compared to its industry's average Forward P/E of 12.19.
Also, we should mention that LLY has a PEG ratio of 2.02. 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. LLY's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
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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