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Mallinckrodt (MNKKQ) Gains As Market Dips: What You Should Know

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Mallinckrodt (MNKKQ - Free Report) closed at $0.23 in the latest trading session, marking a +1.7% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.07%.

Investors will be hoping for strength from MNKKQ as it approaches its next earnings release. On that day, MNKKQ is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $657.20 million, down 18.35% from the year-ago period.

Any recent changes to analyst estimates for MNKKQ should also be noted by investors. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MNKKQ currently has a Zacks Rank of #3 (Hold).

Investors should also note MNKKQ's current valuation metrics, including its Forward P/E ratio of 0.05. This valuation marks a discount compared to its industry's average Forward P/E of 12.1.

The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on

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