Mallinckrodt (MNK - Free Report) closed at $21.66 in the latest trading session, marking a -0.18% move from the prior day. This move lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.3%.
Coming into today, shares of the specialty pharmaceutical company had lost 4.45% in the past month. In that same time, the Medical sector lost 3.78%, while the S&P 500 gained 3.08%.
Wall Street will be looking for positivity from MNK as it approaches its next earnings report date. This is expected to be May 7, 2019. On that day, MNK is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 34.35%. Our most recent consensus estimate is calling for quarterly revenue of $777.46 million, up 35.78% from the year-ago period.
MNK's full-year Zacks Consensus Estimates are calling for earnings of $8.16 per share and revenue of $3.26 billion. These results would represent year-over-year changes of +1.87% and +21.51%, respectively.
Investors should also note any recent changes to analyst estimates for MNK. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.29% higher. MNK currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, MNK currently has a Forward P/E ratio of 2.66. This valuation marks a discount compared to its industry's average Forward P/E of 6.67.
Meanwhile, MNK's PEG ratio is currently 0.22. 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 - Generic Drugs industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.