Lannett (LCI) Dips More Than Broader Markets: What You Should Know
Lannett (LCI) closed the most recent trading day at $11.88, moving -1% from the previous trading session. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the generic drug company had gained 6.48% in the past month. In that same time, the Medical sector gained 4.68%, while the S&P 500 gained 2.46%.
LCI will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. On that day, LCI is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 54.55%. Our most recent consensus estimate is calling for quarterly revenue of $121.42 million, down 21.69% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $537.86 million, which would represent changes of -46.81% and -17.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LCI. These revisions help to show the ever-changing nature of near-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. LCI currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note LCI's current valuation metrics, including its Forward P/E ratio of 9.57. This valuation marks a discount compared to its industry's average Forward P/E of 17.38.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.