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Illumina (ILMN) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Illumina (ILMN) closed the most recent trading day at $190.79, moving -1.56% from the previous trading session. This move lagged the S&P 500's daily loss of 1.51%. Meanwhile, the Dow lost 1.71%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Coming into today, shares of the genetic testing tools company had lost 3.39% in the past month. In that same time, the Medical sector lost 4.08%, while the S&P 500 lost 9.52%.

Wall Street will be looking for positivity from Illumina as it approaches its next earnings report date. The company is expected to report EPS of $0.28, down 80.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 0.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.79 per share and revenue of $4.74 billion, which would represent changes of -52.71% and +4.76%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Illumina. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 past month, the Zacks Consensus EPS estimate has moved 0.71% lower. Illumina is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, Illumina currently has a Forward P/E ratio of 69.59. Its industry sports an average Forward P/E of 19.25, so we one might conclude that Illumina is trading at a premium comparatively.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.

To follow ILMN in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research