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Eli Lilly (LLY) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $852.35, marking a -1.45% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.01%, and the technology-centric Nasdaq increased by 0.46%.

Prior to today's trading, shares of the drugmaker had lost 1.87% over the past month. This has lagged the Medical sector's loss of 1.17% and was narrower than the S&P 500's loss of 3.59% in that time.

The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company's upcoming EPS is projected at $4.62, signifying a 79.07% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $12.75 billion, up 45.46% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.51 per share and a revenue of $59.99 billion, signifying shifts of +80.99% and +33.19%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Eli Lilly. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Currently, Eli Lilly is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Eli Lilly is currently trading at a Forward P/E ratio of 36.79. This denotes a premium relative to the industry's average Forward P/E of 14.32.

We can also see that LLY currently has a PEG ratio of 1.4. 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 1.4 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 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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