In the latest trading session, Alkermes (ALKS - Free Report) closed at $19.99, marking a -0.05% move from the previous day. This change lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.06%.
Heading into today, shares of the drugmaker had lost 1.96% over the past month, lagging the Medical sector's gain of 2.79% and the S&P 500's gain of 3.95% in that time.
Wall Street will be looking for positivity from ALKS as it approaches its next earnings report date. On that day, ALKS is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 94.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $408.54 million, up 29.38% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ALKS. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. ALKS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ALKS has a Forward P/E ratio of 34.68 right now. For comparison, its industry has an average Forward P/E of 27.74, which means ALKS is trading at a premium to the group.
Meanwhile, ALKS's PEG ratio is currently 1.67. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.