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Doctor Reddy's (RDY) Gains But Lags Market: What You Should Know
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In the latest trading session, Doctor Reddy's (RDY - Free Report) closed at $52.12, marking a +0.77% move from the previous day. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Coming into today, shares of the pharmaceutical had lost 8.15% in the past month. In that same time, the Medical sector gained 0.28%, while the S&P 500 lost 4.4%.
Investors will be hoping for strength from Doctor Reddy's as it approaches its next earnings release. On that day, Doctor Reddy's is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 5.26%. Our most recent consensus estimate is calling for quarterly revenue of $769.25 million, up 7.59% from the year-ago period.
RDY's full-year Zacks Consensus Estimates are calling for earnings of $3.16 per share and revenue of $3.05 billion. These results would represent year-over-year changes of +34.47% and +6.06%, respectively.
Any recent changes to analyst estimates for Doctor Reddy's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Doctor Reddy's is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Doctor Reddy's has a Forward P/E ratio of 16.35 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 16.35.
It is also worth noting that RDY currently has a PEG ratio of 0.51. 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 - Generic Drugs stocks are, on average, holding a PEG ratio of 0.51 based on yesterday's closing prices.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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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Doctor Reddy's (RDY) Gains But Lags Market: What You Should Know
In the latest trading session, Doctor Reddy's (RDY - Free Report) closed at $52.12, marking a +0.77% move from the previous day. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Coming into today, shares of the pharmaceutical had lost 8.15% in the past month. In that same time, the Medical sector gained 0.28%, while the S&P 500 lost 4.4%.
Investors will be hoping for strength from Doctor Reddy's as it approaches its next earnings release. On that day, Doctor Reddy's is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 5.26%. Our most recent consensus estimate is calling for quarterly revenue of $769.25 million, up 7.59% from the year-ago period.
RDY's full-year Zacks Consensus Estimates are calling for earnings of $3.16 per share and revenue of $3.05 billion. These results would represent year-over-year changes of +34.47% and +6.06%, respectively.
Any recent changes to analyst estimates for Doctor Reddy's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Doctor Reddy's is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Doctor Reddy's has a Forward P/E ratio of 16.35 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 16.35.
It is also worth noting that RDY currently has a PEG ratio of 0.51. 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 - Generic Drugs stocks are, on average, holding a PEG ratio of 0.51 based on yesterday's closing prices.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.