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Lannett (LCI) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Lannett (LCI) closed the most recent trading day at $11.73, moving -1.84% from the previous trading session. This move lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 0.83%.

Coming into today, shares of the generic drug company had lost 10.89% in the past month. In that same time, the Medical sector lost 1.06%, while the S&P 500 lost 0.1%.

Wall Street will be looking for positivity from LCI as it approaches its next earnings report date. The company is expected to report EPS of $0.20, down 54.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $121.42 million, down 21.69% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $537.86 million, which would represent changes of -46.81% and -17.94%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LCI. Recent revisions tend to reflect the latest near-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 remained stagnant. LCI is currently a Zacks Rank #1 (Strong Buy).

Investors should also note LCI's current valuation metrics, including its Forward P/E ratio of 9.59. This valuation marks a discount compared to its industry's average Forward P/E of 16.34.

The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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