Here's Why Ligand Pharmaceuticals (LGND) Fell More Than Broader Market
The latest trading session saw Ligand Pharmaceuticals (LGND) ending at $75.64, denoting a -0.32% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.3%.
The drugmaker's shares have seen an increase of 4.52% over the last month, surpassing the Medical sector's gain of 2.32% and falling behind the S&P 500's gain of 5.78%.
Analysts and investors alike will be keeping a close eye on the performance of Ligand Pharmaceuticals in its upcoming earnings disclosure. In that report, analysts expect Ligand Pharmaceuticals to post earnings of $0.58 per share. This would mark a year-over-year decline of 57.35%. At the same time, our most recent consensus estimate is projecting a revenue of $24.54 million, reflecting a 51.29% fall from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Ligand Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ligand Pharmaceuticals presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Ligand Pharmaceuticals is presently being traded at a Forward P/E ratio of 17.17. This expresses a discount compared to the average Forward P/E of 21.34 of its industry.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report
