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

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Mallinckrodt (MNKKQ - Free Report) closed the most recent trading day at $0.50, moving -1.76% from the previous trading session. This move lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.38%.

Coming into today, shares of the specialty pharmaceutical company had gained 104.33% in the past month. In that same time, the Medical sector gained 3.51%, while the S&P 500 gained 2.33%.

Wall Street will be looking for positivity from MNKKQ as it approaches its next earnings report date. 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 $644.10 million, down 19.98% 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MNKKQ currently has a Zacks Rank of #3 (Hold).

In terms of valuation, MNKKQ is currently trading at a Forward P/E ratio of 0.1. For comparison, its industry has an average Forward P/E of 11.77, which means MNKKQ is trading at a discount to the group.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 175, putting 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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