Lilly (LLY) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue mo
Eli Lilly $LLY (LLY) shares rallied 3.8% in the last trading session to close at $954.52. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.7% loss over the past four weeks.
Eli Lilly shares moved higher following the FDA approval of Foundayo (orforglipron), an oral GLP-1 therapy for obesity that demonstrated strong efficacy (12.4% mean weight loss) in phase III studies, along with cardiovascular benefits. Its key advantage — a convenient, once-daily pill with no food or water restrictions — positions it to unlock a significantly larger, underpenetrated patient population compared with injectable therapies. With rapid commercialization through LillyDirect, retail and telehealth channels, alongside compelling pricing ($25/month for insured patients), Foundayo is expected to boost the topline further, accelerate market expansion and reinforce Lilly’s leadership in the high-growth obesity segment, supporting long-term revenue upside.
This drugmaker is expected to post quarterly earnings of $7.53 per share in its upcoming report, which represents a year-over-year change of +125.5%. Revenues are expected to be $17.66 billion, up 38.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Lilly, the consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LLY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lilly is a member of the Zacks Large Cap Pharmaceuticals industry. One other stock in the same industry, Novo Nordisk (NVO), finished the last trading session 0.7% lower at $36.48. NVO has returned 0.3% over the past month.
Novo Nordisk's consensus EPS estimate for the upcoming report has changed -1.4% over the past month to $0.87. Compared to the company's year-ago EPS, this represents a change of -5.4%. Novo Nordisk currently boasts a Zacks Rank of #3 (Hold).
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