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Alkermes (ALKS) Stock Sinks As Market Gains: What You Should Know

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Alkermes (ALKS - Free Report) closed the most recent trading day at $20.92, moving -0.66% from the previous trading session. This change lagged the S&P 500's 0.49% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.43%.

Prior to today's trading, shares of the drugmaker had gained 4.88% over the past month. This has lagged the Medical sector's gain of 5.22% and outpaced the S&P 500's gain of 2.9% in that time.

Investors will be hoping for strength from ALKS as it approaches its next earnings release. The company is expected to report EPS of $0.65, up 91.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $408.54 million, up 29.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $1.17 billion. These totals would mark changes of -14.75% and +6.91%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ALKS. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 remained stagnant. ALKS is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, ALKS currently has a Forward P/E ratio of 40.31. This represents a premium compared to its industry's average Forward P/E of 25.72.

Meanwhile, ALKS's PEG ratio is currently 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.79 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% 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.

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