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

Zacks Equity Research
·3-min read

Illumina (ILMN) closed at $398.85 in the latest trading session, marking a -0.19% move from the prior day. This change lagged the S&P 500's 1.95% gain on the day. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 1.55%.

Prior to today's trading, shares of the genetic testing tools company had lost 6.77% over the past month. This has lagged the Medical sector's loss of 6.76% and the S&P 500's loss of 2.45% in that time.

Investors will be hoping for strength from ILMN as it approaches its next earnings release. On that day, ILMN is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 24.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $928.22 million, up 8.06% from the year-ago period.

ILMN's full-year Zacks Consensus Estimates are calling for earnings of $5.37 per share and revenue of $3.89 billion. These results would represent year-over-year changes of +19.33% and +20.12%, respectively.

Investors might also notice recent changes to analyst estimates for ILMN. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 2.56% higher. ILMN is currently a Zacks Rank #4 (Sell).

Looking at its valuation, ILMN is holding a Forward P/E ratio of 74.36. This represents a premium compared to its industry's average Forward P/E of 24.53.

Also, we should mention that ILMN has a PEG ratio of 10.62. 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 1.33 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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