Illumina (ILMN) Dips More Than Broader Markets: What You Should Know
Illumina (ILMN) closed the most recent trading day at $292.25, moving -0.97% from the previous trading session. This change lagged the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.99%, and the tech-heavy Nasdaq lost 1.63%.
Prior to today's trading, shares of the genetic testing tools company had lost 19.59% over the past month. This has lagged the Medical sector's loss of 9.8% and the S&P 500's loss of 8.1% in that time.
Investors will be hoping for strength from ILMN as it approaches its next earnings release, which is expected to be January 29, 2019. The company is expected to report EPS of $1.35, down 6.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $860.57 million, up 10.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.72 per share and revenue of $3.33 billion, which would represent changes of +43% and +20.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ILMN. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 5.02% higher. ILMN is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, ILMN is holding a Forward P/E ratio of 51.64. Its industry sports an average Forward P/E of 26.41, so we one might conclude that ILMN is trading at a premium comparatively.
Meanwhile, ILMN's PEG ratio is currently 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ILMN in the coming trading sessions, be sure to utilize Zacks.com.
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Illumina, Inc. (ILMN) : Free Stock Analysis Report
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