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Assertio (ASRT) Outpaces Stock Market Gains: What You Should Know

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Assertio (ASRT) closed at $2.78 in the latest trading session, marking a +0.72% move from the prior day. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the drugmaker had lost 11.75% in the past month. In that same time, the Medical sector lost 5.2%, while the S&P 500 lost 10.02%.

Assertio will be looking to display strength as it nears its next earnings release. In that report, analysts expect Assertio to post earnings of $0.08 per share. This would mark year-over-year growth of 125%. Our most recent consensus estimate is calling for quarterly revenue of $31.62 million, up 24.65% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.40 per share and revenue of $130.93 million, which would represent changes of +1433.33% and +17.94%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Assertio. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 16.91% higher. Assertio is currently a Zacks Rank #2 (Buy).

Digging into valuation, Assertio currently has a Forward P/E ratio of 6.89. Its industry sports an average Forward P/E of 14.3, so we one might conclude that Assertio is trading at a discount comparatively.

Meanwhile, ASRT's PEG ratio is currently 0.69. 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. The Medical - Drugs industry currently had an average PEG ratio of 1.3 as of yesterday's close.

The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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