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Illumina (ILMN) Gains But Lags Market: What You Should Know

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Illumina (ILMN - Free Report) closed the most recent trading day at $318.56, moving +0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.53%.

Coming into today, shares of the genetic testing tools company had lost 0.4% in the past month. In that same time, the Medical sector lost 1.29%, while the S&P 500 lost 3.77%.

Investors will be hoping for strength from ILMN as it approaches its next earnings release. On that day, ILMN is projected to report earnings of $1.40 per share, which would represent a year-over-year decline of 2.1%. Our most recent consensus estimate is calling for quarterly revenue of $886.93 million, up 6.86% from the year-ago period.

ILMN's full-year Zacks Consensus Estimates are calling for earnings of $6.68 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +16.78% and +12.84%, respectively.

It is also important to note the recent changes to analyst estimates for ILMN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.05% higher. ILMN is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, ILMN is holding a Forward P/E ratio of 47.63. Its industry sports an average Forward P/E of 25.25, so we one might conclude that ILMN is trading at a premium comparatively.

Also, we should mention that ILMN has a PEG ratio of 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ILMN's industry had an average PEG ratio of 1.82 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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