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Illumina (ILMN) Stock Moves -0.11%: What You Should Know

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Illumina (ILMN - Free Report) closed at $199.29 in the latest trading session, marking a -0.11% move from the prior day. This change was narrower than the S&P 500's 1.15% loss on the day. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the genetic testing tools company had gained 3.19% in the past month. In that same time, the Medical sector lost 0.6%, while the S&P 500 gained 1.44%.

Illumina will be looking to display strength as it nears its next earnings release, which is expected to be August 11, 2022. The company is expected to report EPS of $0.63, down 66.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 8.31% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.09 per share and revenue of $5.2 billion. These totals would mark changes of -30.68% and +14.98%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Illumina. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Illumina is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Illumina currently has a Forward P/E ratio of 48.78. This represents a premium compared to its industry's average Forward P/E of 23.88.

Investors should also note that ILMN has a PEG ratio of 1.56 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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