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

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Ligand Pharmaceuticals (LGND - Free Report) closed the most recent trading day at $59.08, moving -0.4% from the previous trading session. This change lagged the S&P 500's 0.23% loss on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the drugmaker had lost 10.23% over the past month. This has lagged the Medical sector's loss of 5.3% and the S&P 500's loss of 1.43% in that time.

Investors will be hoping for strength from Ligand Pharmaceuticals as it approaches its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $27.44 million, down 58.49% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.98 per share and revenue of $125.79 million. These totals would mark changes of +3.97% and -42.71%, respectively, from last year.

Any recent changes to analyst estimates for Ligand Pharmaceuticals should also be noted by investors. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.14% higher. Ligand Pharmaceuticals is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Ligand Pharmaceuticals is currently trading at a Forward P/E ratio of 11.91. This represents a discount compared to its industry's average Forward P/E of 16.98.

Investors should also note that LGND has a PEG ratio of 0.6 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 2.14 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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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