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Endo International (ENDP) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Endo International (ENDP - Free Report) closed at $2.13, marking a -1.39% move from the previous day. This move lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Heading into today, shares of the health care company had lost 30.32% over the past month, lagging the Medical sector's loss of 1.34% and the S&P 500's loss of 5.01% in that time.

Endo International will be looking to display strength as it nears its next earnings release. On that day, Endo International is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 42.47%. Meanwhile, our latest consensus estimate is calling for revenue of $629.36 million, down 12.34% from the prior-year quarter.

ENDP's full-year Zacks Consensus Estimates are calling for earnings of $1.62 per share and revenue of $2.65 billion. These results would represent year-over-year changes of -46.53% and -11.61%, respectively.

It is also important to note the recent changes to analyst estimates for Endo International. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 26.1% lower within the past month. Endo International is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, Endo International currently has a Forward P/E ratio of 1.34. Its industry sports an average Forward P/E of 15.84, so we one might conclude that Endo International is trading at a discount comparatively.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.

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


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