Illumina (ILMN) closed the most recent trading day at $190.38, moving -1.61% from the previous trading session. This change was narrower than the S&P 500's 1.72% loss on the day. Elsewhere, the Dow lost 1.62%, while the tech-heavy Nasdaq added 0.09%.
Prior to today's trading, shares of the genetic testing tools company had lost 11.05% over the past month. This has lagged the Medical sector's loss of 6.61% and the S&P 500's loss of 9.09% in that time.
Investors will be hoping for strength from Illumina as it approaches its next earnings release. On that day, Illumina is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 80.69%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 0.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $4.74 billion. These totals would mark changes of -52.37% and +4.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Illumina. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.28% higher. Illumina is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Illumina has a Forward P/E ratio of 68.98 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.87.
Investors should also note that ILMN has a PEG ratio of 2.21 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Illumina, Inc. (ILMN) : Free Stock Analysis Report
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