Illumina (ILMN) closed the most recent trading day at $273, moving -1.9% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.81%. Elsewhere, the Dow lost 2.94%, while the tech-heavy Nasdaq lost 3%.
Heading into today, shares of the genetic testing tools company had lost 5.16% over the past month, lagging the Medical sector's loss of 1.87% and the S&P 500's loss of 3.97% in that time.
Investors will be hoping for strength from ILMN as it approaches its next earnings release. The company is expected to report EPS of $1.24, down 22.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $854.06 million, up 0.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.86 per share and revenue of $3.89 billion, which would represent changes of +4.41% and +9.74%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ILMN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ILMN is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ILMN is currently trading at a Forward P/E ratio of 40.57. Its industry sports an average Forward P/E of 33.44, so we one might conclude that ILMN is trading at a premium comparatively.
We can also see that ILMN currently has a PEG ratio of 2.63. 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. ILMN's industry had an average PEG ratio of 1.78 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Illumina, Inc. (ILMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.