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Illumina (ILMN) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Illumina (ILMN - Free Report) closed at $298.28, marking a +1.73% move from the previous day. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.71%.

Coming into today, shares of the genetic testing tools company had lost 18.23% in the past month. In that same time, the Medical sector lost 3.3%, while the S&P 500 gained 1.93%.

ILMN will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2019. In that report, analysts expect ILMN to post earnings of $1.32 per share. This would mark a year-over-year decline of 7.69%. Meanwhile, our latest consensus estimate is calling for revenue of $835.21 million, up 0.63% from the prior-year quarter.

ILMN's full-year Zacks Consensus Estimates are calling for earnings of $6.34 per share and revenue of $3.57 billion. These results would represent year-over-year changes of +10.84% and +7.09%, respectively.

It is also important to note the recent changes to analyst estimates for ILMN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 has moved 5.16% lower. ILMN is currently a Zacks Rank #4 (Sell).

In terms of valuation, ILMN is currently trading at a Forward P/E ratio of 46.28. Its industry sports an average Forward P/E of 23.01, so we one might conclude that ILMN is trading at a premium comparatively.

Investors should also note that ILMN has a PEG ratio of 2.56 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. ILMN's industry had an average PEG ratio of 1.84 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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