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Illumina (ILMN) Outpaces Stock Market Gains: What You Should Know

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Illumina (ILMN - Free Report) closed the most recent trading day at $300.15, moving +1.65% from the previous trading session. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.05%.

Heading into today, shares of the genetic testing tools company had gained 3.6% over the past month, outpacing the Medical sector's gain of 1.66% and lagging the S&P 500's gain of 3.85% in that time.

ILMN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.40, down 7.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $871.64 million, up 2.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $3.53 billion. These totals would mark changes of +5.59% and +5.97%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ILMN. These revisions help to show the ever-changing nature of near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. ILMN is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that ILMN has a Forward P/E ratio of 48.88 right now. This represents a premium compared to its industry's average Forward P/E of 28.35.

Investors should also note that ILMN has a PEG ratio of 2.94 right now. 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 - Biomedical and Genetics industry currently had an average PEG ratio of 1.68 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 91, which puts it in the top 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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