Eli Lilly Shares Jumped Thursday, Lag the S&P 500

Eli Lilly

Eli Lilly (NYSE:LLY) was up 0.57% from the previous trading session to conclude the most recent trading day at $330.80. This shift was slower than the S&P 500’s daily rise of 1.21%. The Nasdaq, a tech-heavy index, increased by 0.14%, and the Dow increased by 1.03%.

Shares of the pharmaceutical company have increased 1.84% over the previous month. The S&P 500 increased by 3.2% during that time, while the Medical sector gained 0.38%.

Earnings Expected to Decrease in the Next Quarter

As the deadline for Eli Lilly’s next earnings release, August 4, 2022, is approaching, Wall Street will be watching for encouraging signs from the company. Analysts predict that Eli Lilly will announce earnings of $1.80 per share in that report. This would represent a 3.74% decrease from the previous year. According to the consensus estimate, net sales will total $6.9 billion, an increase of 2.39% from last year’s period.

Full-year earnings of $8.34 per share and revenue of $29.15 billion are expected, representing changes from the prior year of 2.21% and 2.94%, respectively.

In addition, investors should note any recent adjustments to analyst forecasts for Eli Lilly. These most recent changes typically indicate how quickly short-term business trends change. In light of this, we can view favorable estimate revisions as a sign of hope for the company’s future.

Eli Lilly stock is currently a Buy.

Elli Lilly Shares Seem Overvalued

Investors should be aware that Eli Lilly currently has a Forward P/E ratio of 39.45 because valuation is also crucial. The average Forward P/E for its sector is 12.6, suggesting Eli Lilly is selling at a premium to the sector as a whole.

We can also see that the PEG ratio for LLY is now 2.33. Comparable to the popular P/E ratio, the PEG ratio also considers the company’s anticipated earnings growth rate. As of yesterday’s closure, the average PEG ratio for LLY’s sector was 2.17. A PEG ratio above 1 suggests a stock is overvalued. 

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About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.