Illumina, Inc. (ILMN) Hits Fresh High: Is There Still Room to Run?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 30, 2026, Illumina reported EPS of $1.31 versus consensus estimate of $1.23 while it beat the consensus revenue estimate by 3.36%.

For the current fiscal year, Illumina is expected to post earnings of $5.28 per share on $4.56 in revenues. This represents a 9.09% change in EPS on a 5.09% change in revenues. For the next fiscal year, the company is expected to earn $5.99 per share on $4.86 in revenues. This represents a year-over-year change of 13.45% and 6.56%, respectively.

Valuation Metrics

Illumina may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Illumina has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 38.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.8X. On a trailing cash flow basis, the stock currently trades at 30.5X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 2.99. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Illumina currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Illumina passes the test. Thus, it seems as though Illumina shares could still be poised for more gains ahead.

How Does ILMN Stack Up to the Competition?

Shares of ILMN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NeoGenomics, Inc. (NEO). NEO has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of D.

Earnings were strong last quarter. NeoGenomics, Inc. beat our consensus estimate by 66.67%, and for the current fiscal year, NEO is expected to post earnings of $0.18 per share on revenue of $802.67 million.

Shares of NeoGenomics, Inc. have gained 0.9% over the past month, and currently trade at a forward P/E of 87.37X and a P/CF of 45.64X.

The Medical - Biomedical and Genetics industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ILMN and NEO, even beyond their own solid fundamental situation.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research