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Illumina (ILMN) Dips More Than Broader Markets: What You Should Know

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Illumina (ILMN - Free Report) closed at $199.88 in the latest trading session, marking a -1.03% move from the prior day. This move lagged the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the genetic testing tools company had lost 3.39% in the past month. In that same time, the Medical sector lost 5.59%, while the S&P 500 lost 9.06%.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, up 0.9% from the prior-year quarter.

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.

Any recent changes to analyst estimates for Illumina 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. 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).

Digging into valuation, Illumina currently has a Forward P/E ratio of 72. Its industry sports an average Forward P/E of 20.38, so we one might conclude that Illumina is trading at a premium comparatively.

Investors should also note that ILMN has a PEG ratio of 2.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.36 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts 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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