Back to top

Image: Bigstock

Why the Market Dipped But Eli Lilly (LLY) Gained Today

Read MoreHide Full Article

In the latest trading session, Eli Lilly (LLY - Free Report) closed at $763.57, marking a +2.06% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.07%.

Shares of the drugmaker witnessed a gain of 7.18% over the previous month, beating the performance of the Medical sector with its gain of 0.73%, and the S&P 500's gain of 2.71%.

Analysts and investors alike will be keeping a close eye on the performance of Eli Lilly in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2025. The company's earnings per share (EPS) are projected to be $6.42, reflecting a 444.07% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.05 billion, up 40.32% from the year-ago period.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $23.03 per share and revenue of $61.81 billion. These results would represent year-over-year changes of +77.29% and +37.22%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 shifted 0.21% upward. As of now, Eli Lilly holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Eli Lilly is currently exchanging hands at a Forward P/E ratio of 32.49. This denotes a premium relative to the industry average Forward P/E of 14.07.

Meanwhile, LLY's PEG ratio is currently 1.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Eli Lilly and Company (LLY) - free report >>

Published in