In the latest trading session, Penumbra (PEN - Free Report) closed at $131, marking a -1.9% move from the previous day. This change was narrower than the S&P 500's 3.29% loss on the day. At the same time, the Dow lost 3.15%, and the tech-heavy Nasdaq lost 4.08%.
Coming into today, shares of the medical device maker had lost 9.83% in the past month. In that same time, the Medical sector lost 1.22%, while the S&P 500 gained 0.44%.
Wall Street will be looking for positivity from PEN as it approaches its next earnings report date. This is expected to be November 6, 2018. On that day, PEN is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $101.90 million, up 21.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.34 per share and revenue of $425.70 million. These totals would mark changes of +3500% and +27.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PEN. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PEN is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, PEN currently has a Forward P/E ratio of 392.77. This represents a premium compared to its industry's average Forward P/E of 33.09.
We can also see that PEN currently has a PEG ratio of 19.64. 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 - Instruments industry currently had an average PEG ratio of 2.79 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% 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.
To follow PEN in the coming trading sessions, be sure to utilize Zacks.com.