In the latest trading session, Mallinckrodt (MNK) closed at $15.29, marking a -1.1% move from the previous day. This move lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 0.57%.
Heading into today, shares of the specialty pharmaceutical company had lost 32.19% over the past month, lagging the Medical sector's loss of 4.67% and the S&P 500's gain of 4% in that time.
Investors will be hoping for strength from MNK as it approaches its next earnings release, which is expected to be May 7, 2019. In that report, analysts expect MNK to post earnings of $1.73 per share. This would mark year-over-year growth of 32.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $770.92 million, up 34.64% from the year-ago period.
MNK's full-year Zacks Consensus Estimates are calling for earnings of $8.19 per share and revenue of $3.26 billion. These results would represent year-over-year changes of +2.25% and +21.8%, respectively.
Investors should also note any recent changes to analyst estimates for MNK. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. MNK is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MNK currently has a Forward P/E ratio of 1.89. For comparison, its industry has an average Forward P/E of 6.72, which means MNK is trading at a discount to the group.
It is also worth noting that MNK currently has a PEG ratio of 0.16. 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. The Medical - Generic Drugs was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 32% 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.
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