Eli Lilly (LLY) wins as the market goes down: what you need to know
Eli Lilly (LLY) closed at $ 243.75 on the last trading session, marking a movement of +1.07% from the previous day. The stock topped the S&P 500’s 0.11% daily loss.
As of today, shares of the drugmaker had gained 3.87% over the past month. At the same time, the medical sector lost 1.72%, while the S&P 500 gained 4.61%.
LLY will look to show strength as its next earnings release nears, which is scheduled for October 26, 2021. The company is expected to post EPS of $ 1.98, up 28.57% from the quarter of the previous year. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 6.66 billion, up 15.98% from the previous year.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 7.90 per share and revenue of $ 27.41 billion. These totals would mark changes of -0.38% and + 11.7%, respectively, from a year ago.
Investors should also note any recent changes in analyst estimates for LLY. Recent revisions tend to reflect the latest short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of +25. % since 1988. Over the past 30 days, our consensus EPS forecast has increased 0.38%. LLY currently sports a Zacks rank of # 3 (Hold).
In terms of valuation, LLY is currently trading at a forward P / E ratio of 30.53. This represents a premium over its industry’s average forward P / E of 13.76.
Meanwhile, LLY’s PEG ratio is currently 1.95. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Large Cap Pharmaceuticals held an average PEG ratio of 2.1 at yesterday’s closing price.
The large-cap pharmaceutical industry is part of the medical sector. This group has a Zacks Industry Rank of 94, placing it in the top 38% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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