In the latest trading session, Lannett (LCI - Free Report) closed at $12.18, marking a -0.9% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 1.67%.
Prior to today's trading, shares of the generic drug company had gained 2.76% over the past month. This has outpaced the Medical sector's loss of 3.6% and the S&P 500's loss of 1.22% in that time.
LCI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, down 54.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $121.42 million, down 21.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $537.86 million, which would represent changes of -46.81% and -17.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for LCI. Recent revisions tend to reflect the latest near-term business trends. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.35% higher within the past month. LCI is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that LCI has a Forward P/E ratio of 9.86 right now. For comparison, its industry has an average Forward P/E of 16.64, which means LCI is trading at a discount to the group.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.