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Assertio (ASRT) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Assertio (ASRT) closed at $2.74, marking a +1.3% move from the previous day. This move lagged the S&P 500's daily gain of 1.53%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the drugmaker had lost 28.95% over the past month. This has lagged the Medical sector's loss of 3.31% and the S&P 500's loss of 3.1% in that time.

Assertio will be looking to display strength as it nears its next earnings release. In that report, analysts expect Assertio to post earnings of $0.07 per share. This would mark a year-over-year decline of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $31.33 million, up 23.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.51 per share and revenue of $135.86 million, which would represent changes of +1800% and +22.38%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Assertio. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 5.48% higher. Assertio is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Assertio's current valuation metrics, including its Forward P/E ratio of 5.26. This valuation marks a discount compared to its industry's average Forward P/E of 14.67.

Meanwhile, ASRT's PEG ratio is currently 0.53. 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. ASRT's industry had an average PEG ratio of 1.73 as of yesterday's close.

The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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 ASRT in the coming trading sessions, be sure to utilize Zacks.com.

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