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Ligand Pharmaceuticals (LGND) Declines More Than Market: Some Information for Investors

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The most recent trading session ended with Ligand Pharmaceuticals (LGND - Free Report) standing at $71.93, reflecting a -1.14% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.29% loss on the day. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.

Shares of the drugmaker witnessed a loss of 1.17% over the previous month, trailing the performance of the Medical sector with its gain of 3.72% and the S&P 500's gain of 4.42%.

The investment community will be closely monitoring the performance of Ligand Pharmaceuticals in its forthcoming earnings report. The company's upcoming EPS is projected at $1.07, signifying a 53.07% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $32.57 million, reflecting a 25.94% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.42 per share and revenue of $141.3 million, indicating changes of +8.87% and +7.6%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Ligand Pharmaceuticals. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ligand Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Ligand Pharmaceuticals is presently being traded at a Forward P/E ratio of 16.46. For comparison, its industry has an average Forward P/E of 23.4, which means Ligand Pharmaceuticals is trading at a discount to the group.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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