Eli Lilly (LLY) Gains But Lags Market: What You Should Know
In the latest trading session, Eli Lilly (LLY) closed at $237.88, marking a +0.5% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%.
Prior to today's trading, shares of the drugmaker had gained 2.45% over the past month. This has outpaced the Medical sector's loss of 4.31% and the S&P 500's loss of 0.05% in that time.
Wall Street will be looking for positivity from LLY as it approaches its next earnings report date. This is expected to be October 26, 2021. The company is expected to report EPS of $1.98, up 28.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.66 billion, up 15.98% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.90 per share and revenue of $27.41 billion, which would represent changes of -0.38% and +11.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LLY. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. LLY is currently a Zacks Rank #3 (Hold).
Looking at its valuation, LLY is holding a Forward P/E ratio of 29.97. For comparison, its industry has an average Forward P/E of 13.43, which means LLY is trading at a premium to the group.
Also, we should mention that LLY has a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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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