Eli Lilly (LLY) Gains As Market Dips: What You Should Know
In the latest trading session, Eli Lilly (LLY) closed at $329.47, marking a +0.73% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.
Coming into today, shares of the drugmaker had lost 5.9% in the past month. In that same time, the Medical sector lost 4.27%, while the S&P 500 lost 5.06%.
Eli Lilly will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Eli Lilly to post earnings of $1.66 per share. This would mark a year-over-year decline of 36.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.79 billion, down 13.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.46 per share and revenue of $30.5 billion, which would represent changes of +6.55% and +6.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Eli Lilly. These revisions help to show the ever-changing nature of near-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, 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 moved 0.6% lower. Eli Lilly is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Eli Lilly's current valuation metrics, including its Forward P/E ratio of 38.68. For comparison, its industry has an average Forward P/E of 13.95, which means Eli Lilly is trading at a premium to the group.
Investors should also note that LLY has a PEG ratio of 1.88 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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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