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Illumina (ILMN) Moves 4.1% Higher: Will This Strength Last?
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Illumina (ILMN - Free Report) shares soared 4.1% in the last trading session to close at $384.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.3% loss over the past four weeks.
Illumina recorded a strong price increase following the previous day’s nearly 7% plunge when the news of the FTC filing a lawsuit to block the company’s much-talked-about Grail merger surfaced. The market sentiment took a positive turn the following day when Illumina came up with a press release opposing the FTC’s challenge. The company noted that it will pursue its right to proceed with the transaction.
Price and Consensus
This genetic testing tools company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of -24.4%. Revenues are expected to be $928.22 million, up 8.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Illumina, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ILMN going forward to see if this recent jump can turn into more strength down the road.
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Illumina (ILMN) Moves 4.1% Higher: Will This Strength Last?
Illumina (ILMN - Free Report) shares soared 4.1% in the last trading session to close at $384.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.3% loss over the past four weeks.
Illumina recorded a strong price increase following the previous day’s nearly 7% plunge when the news of the FTC filing a lawsuit to block the company’s much-talked-about Grail merger surfaced. The market sentiment took a positive turn the following day when Illumina came up with a press release opposing the FTC’s challenge. The company noted that it will pursue its right to proceed with the transaction.
Price and Consensus
This genetic testing tools company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of -24.4%. Revenues are expected to be $928.22 million, up 8.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Illumina, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ILMN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>