Eli Lilly (LLY) Outpaces Stock Market Gains: What You Should Know
Eli Lilly (LLY) closed at $169.13 in the latest trading session, marking a +1.43% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.78%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 1.44%.
Heading into today, shares of the drugmaker had gained 11.81% over the past month, outpacing the Medical sector's loss of 1% and the S&P 500's loss of 1.32% 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 July 30, 2020. On that day, LLY is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 5.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.81 billion, up 3.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.82 per share and revenue of $24 billion, which would represent changes of +12.91% and +7.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LLY. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. LLY is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, LLY is holding a Forward P/E ratio of 24.47. This valuation marks a premium compared to its industry's average Forward P/E of 15.54.
Meanwhile, LLY's PEG ratio is currently 1.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.17 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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