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

Zacks Equity Research
IRobot (IRBT) closed at $90.44 in the latest trading session, marking a -1.3% move from the prior day.

Lannett (LCI) closed at $7.91 in the latest trading session, marking a -0.75% move from the prior day. This change lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the generic drug company had gained 4.18% in the past month. In that same time, the Medical sector lost 0.07%, while the S&P 500 gained 2.57%.

Wall Street will be looking for positivity from LCI as it approaches its next earnings report date. In that report, analysts expect LCI to post earnings of $0.62 per share. This would mark a year-over-year decline of 22.5%. Meanwhile, our latest consensus estimate is calling for revenue of $158.59 million, down 9.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.14 per share and revenue of $624.53 million, which would represent changes of -30.97% and -8.77%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for LCI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. LCI is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that LCI has a Forward P/E ratio of 3.72 right now. Its industry sports an average Forward P/E of 17.15, so we one might conclude that LCI is trading at a discount comparatively.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow LCI in the coming trading sessions, be sure to utilize Zacks.com.


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