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Ligand Pharmaceuticals (LGND) Outpaces Stock Market Gains: What You Should Know

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Ligand Pharmaceuticals (LGND - Free Report) closed at $62.56 in the latest trading session, marking a +0.94% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the drugmaker had lost 6.35% over the past month. This has lagged the Medical sector's loss of 1.58% and the S&P 500's gain of 0.38% in that time.

Wall Street will be looking for positivity from Ligand Pharmaceuticals as it approaches its next earnings report date. On that day, Ligand Pharmaceuticals is projected to report earnings of $0.63 per share, which would represent 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 should also note any recent changes to analyst estimates for Ligand Pharmaceuticals. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. 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 12.45. For comparison, its industry has an average Forward P/E of 17.7, which means Ligand Pharmaceuticals is trading at a discount to the group.

It is also worth noting that LGND currently has a PEG ratio of 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics was holding an average PEG ratio of 2.18 at yesterday's closing price.

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

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