Illumina (ILMN) Outpaces Stock Market Gains: What You Should Know
Illumina (ILMN) closed the most recent trading day at $377.82, moving +1.74% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.77%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the genetic testing tools company had gained 18.33% 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 ILMN as it approaches its nex t earnings report date. The company is expected to report EPS of $1.40, down 2.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $886.93 million, up 6.86% from the year-ago period.
ILMN’s full-year Zacks Consensus Estimates are calling for earnings of $6.68 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +16.78% and +12.84%, respectively.
Investors might also notice recent changes to analyst estimates for ILMN. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. ILMN currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ILMN has a Forward P/E ratio of 55.59 right now. Its industry sports an average Forward P/E of 22.92, so we one might conclude that ILMN is trading at a premium comparatively.
Meanwhile, ILMN’s PEG ratio is currently 2.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. ILMN’s industry had an average PEG ratio of 2.07 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 64, putting it in the top 25% 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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