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Ligand Pharmaceuticals (LGND) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Ligand Pharmaceuticals (LGND - Free Report) closed at $62.71, marking a -1.45% move from the previous day. This change lagged the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 1.04%.

Coming into today, shares of the drugmaker had lost 5.24% in the past month. In that same time, the Medical sector lost 0.85%, while the S&P 500 gained 0.64%.

Ligand Pharmaceuticals will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ligand Pharmaceuticals to post earnings of $0.63 per share. This would mark year-over-year growth of 53.66%. Our most recent consensus estimate is calling for quarterly revenue of $27.7 million, down 58.09% from the year-ago period.

LGND's full-year Zacks Consensus Estimates are calling for earnings of $4.98 per share and revenue of $126.7 million. These results would represent year-over-year changes of +3.97% and -42.3%, respectively.

Investors might also notice recent changes to analyst estimates for Ligand Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.8% higher. Ligand Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Ligand Pharmaceuticals currently has a Forward P/E ratio of 12.78. Its industry sports an average Forward P/E of 17.77, so we one might conclude that Ligand Pharmaceuticals is trading at a discount comparatively.

It is also worth noting that LGND currently has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 2.17 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

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