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Alkermes (ALKS) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Alkermes (ALKS - Free Report) closed at $27.74, marking a -1% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.

Coming into today, shares of the drugmaker had gained 0.5% in the past month. In that same time, the Medical sector gained 1.45%, while the S&P 500 gained 3.05%.

Market participants will be closely following the financial results of Alkermes in its upcoming release. The company is expected to report EPS of $0.42, up 200% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $361.67 million, showing a 18.71% escalation compared to the year-ago quarter.

Investors should also note any recent changes to analyst estimates for Alkermes. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Right now, Alkermes possesses a Zacks Rank of #3 (Hold).

Investors should also note Alkermes's current valuation metrics, including its Forward P/E ratio of 12.31. This denotes a discount relative to the industry's average Forward P/E of 22.09.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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