Lannett (LCI) Gains But Lags Market: What You Should Know
Lannett (LCI) closed at $8.05 in the latest trading session, marking a +0.06% move from the prior day. The stock lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.46%.
Heading into today, shares of the generic drug company had lost 2.31% over the past month, lagging the Medical sector's loss of 0.8% and the S&P 500's gain of 3.97% in that time.
LCI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.62, down 22.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158.59 million, down 9.06% from the year-ago period.
LCI's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $624.53 million. These results would represent year-over-year changes of -30.97% and -8.77%, respectively.
Investors should also note any recent changes to analyst estimates for LCI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.86% higher. LCI is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LCI currently has a Forward P/E ratio of 3.75. For comparison, its industry has an average Forward P/E of 17.08, which means LCI is trading at a discount to the group.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
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