Illumina (ILMN - Free Report) closed at $322.73 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the genetic testing tools company had lost 0.54% in the past month. In that same time, the Medical sector lost 3.98%, while the S&P 500 lost 4.95%.
ILMN will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2019. The company is expected to report EPS of $1.35, down 6.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $860.57 million, up 10.61% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.72 per share and revenue of $3.33 billion. These totals would mark changes of +43% and +20.98%, respectively, from last year.
Any recent changes to analyst estimates for ILMN should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 5.29% higher. ILMN is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ILMN has a Forward P/E ratio of 56.72 right now. This represents a premium compared to its industry's average Forward P/E of 27.74.
Also, we should mention that ILMN has a PEG ratio of 2.42. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.