![]() ![]() And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. ![]() Now the key question is: Where could the stock be headed in the near term? The Zacks Large Cap Pharmaceuticals industry, to which Lilly belongs, has lost 2.2% over this period. Shares of this drugmaker have returned -0.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Eli Lilly (LLY) is one of the stocks most watched by visitors lately. ![]()
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