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Alkermes (ALKS) Stock Falls Amid Market Uptick: What Investors Need to Know

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Alkermes (ALKS - Free Report) closed the latest trading day at $26.70, indicating a -1.26% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.82%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.95%.

The drugmaker's stock has dropped by 6.69% in the past month, falling short of the Medical sector's gain of 3.2% and the S&P 500's gain of 5.59%.

Analysts and investors alike will be keeping a close eye on the performance of Alkermes in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.43, showcasing a 207.14% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $361.24 million, up 18.57% from the prior-year quarter.

Investors should also take note of any recent adjustments to analyst estimates for Alkermes. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 4.47% higher. Alkermes is currently a Zacks Rank #3 (Hold).

With respect to valuation, Alkermes is currently being traded at a Forward P/E ratio of 11.52. This represents a discount compared to its industry's average Forward P/E of 20.64.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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