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Lannett (LCI) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
HomeStreet (HMST) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Lannett (LCI) closed the most recent trading day at $7.56, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.34%.

Heading into today, shares of the generic drug company had lost 19.24% over the past month, lagging the Medical sector's loss of 0.3% and the S&P 500's gain of 0.64% in that time.

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 $0.62, down 22.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $158.59 million, down 9.06% from the year-ago period.

LCI's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $624.53 million. These results would represent year-over-year changes of -30.97% and -8.77%, respectively.

It is also important to note the recent changes to analyst estimates for LCI. 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.86% higher. LCI is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, LCI is currently trading at a Forward P/E ratio of 3.49. This represents a discount compared to its industry's average Forward P/E of 16.39.

The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.

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