Illumina (ILMN) Soars 3.4%: Is Further Upside Left in the Stock?
Illumina ILMN shares soared 3.4% in the last trading session to close at $190.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.9% loss over the past four weeks.
Illumina scored a strong price rise, driven by optimism surrounding the company’s upcoming second quarter 2023 financial results, which is slated to release on Aug 9 post the closing bell.
The Zacks Consensus Estimate indicates that the company’s second-quarter revenues will remain flat year over year. Illumina achieved key product milestones in the first quarter, including shipping the first NovaSeq X systems which exited the quarter with over 200 orders received from more than 30 countries. Further, the company remains focused on margins improvement and increased investment in high-growth areas, which might have boosted confidence on the stock.
This genetic testing tools company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -94.7%. Revenues are expected to be $1.16 billion, up 0% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Illumina, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ILMN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Illumina is part of the Zacks Medical - Biomedical and Genetics industry. Kiniksa Pharmaceuticals, Ltd. KNSA, another stock in the same industry, closed the last trading session 2.6% higher at $15.59. KNSA has returned -4.8% in the past month.
For Kiniksa Pharmaceuticals, Ltd. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.16. This represents a change of +44.8% from what the company reported a year ago. Kiniksa Pharmaceuticals, Ltd. currently has a Zacks Rank of #3 (Hold).
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