In the latest close session, Eli Lilly (LLY) was down 1.19% at $1,098.78. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.
The stock of drugmaker has risen by 9.14% in the past month, leading the Medical sector's gain of 3.16% and the S&P 500's gain of 0.29%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is forecasted to report an EPS of $9.01, showcasing a 42.79% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $20.44 billion, up 31.39% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.67 per share and revenue of $85.6 billion. These totals would mark changes of +47.34% and +31.33%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.06% lower. Right now, Eli Lilly possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 31.17. This denotes a premium relative to the industry average Forward P/E of 15.47.
Also, we should mention that LLY has a PEG ratio of 1.22. 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. The Large Cap Pharmaceuticals industry had an average PEG ratio of 2.6 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Eli Lilly and Company (LLY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).