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Eli Lilly (LLY) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

Eli Lilly (LLY) closed the most recent trading day at $237.86, moving -0.67% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the drugmaker had lost 13.37% over the past month. This has lagged the Medical sector's loss of 11.91% and the S&P 500's loss of 7.66% in that time.

Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. This is expected to be February 3, 2022. In that report, analysts expect Eli Lilly to post earnings of $2.51 per share. This would mark a year-over-year decline of 8.73%. Our most recent consensus estimate is calling for quarterly revenue of $7.56 billion, up 1.61% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.37% higher. Eli Lilly is currently a Zacks Rank #2 (Buy).

Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 28.33. Its industry sports an average Forward P/E of 12.68, so we one might conclude that Eli Lilly is trading at a premium comparatively.

Meanwhile, LLY's PEG ratio is currently 1.82. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.93 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 164, which puts it in the bottom 36% of all 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.

To follow LLY in the coming trading sessions, be sure to utilize Zacks.com.


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