Allergan (AGN) Gains But Lags Market: What You Should Know
Allergan (AGN) closed the most recent trading day at $169.61, moving +0.04% from the previous trading session. This change lagged the S&P 500’s 0.77% gain on the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.75%.
Heading into today, shares of the Botox maker had gained 31.83% over the past month, outpacing the Medical sector’s gain of 7.75% and the S&P 500’s gain of 8.19% in that time.
Wall Street will be looking for positivity from AGN as it approaches its nex t earnings report date. The company is expected to report EPS of $4.27, down 3.39% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.90 billion, down 5.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.68 per share and revenue of $15.21 billion. These totals would mark changes of -0.06% and -3.63%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AGN. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 0% higher. AGN is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AGN’s current valuation metrics, including its Forward P/E ratio of 10.17. This represents a premium compared to its industry’s average Forward P/E of 6.61.
Investors should also note that AGN has a PEG ratio of 1.57 right now. 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 at yesterday’s closing price.
The Medical – Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
To follow AGN in the coming trading sessions, be sure to utilize Zacks.com.
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