(VIANEWS) – Shares of Illumina (NASDAQ: ILMN) rose 9.34% to $204.72 at 10:55 EST on Tuesday, after three sequential sessions in a row of losses. NASDAQ is rising 3.2% to $11,161.67, following the last session’s upward trend. This seems, so far, a very positive trend trading session today.

Illumina’s last close was $187.24, 56.25% below its 52-week high of $428.00.

Why is Illumina Stock Going Up?

Illumina is a medical device company that analyzes genetic material. It is a generation ahead of its competitors and a leader in the gene sequencing industry. It is also a growing company, with plans to offer its products to hospitals and clinics. However, investors should be careful when buying stock in a rapidly rising company. This company’s stock is valued at a premium that may not be sustainable.

While Illumina stock is up, it is unlikely to stay that way. In a bear market, stocks can fall to lows as investors try to cash in on bargains. While investors will often sell a stock at a price below its value, they can also increase their position in a company if it’s a good investment.

While it’s not a good idea to buy Illumina stock at these prices, it is likely that Illumina will continue to deploy its sequencing machines to the world’s top genomic analysis centers. This will result in higher recurring revenue streams for the company. At the same time, it will defend itself from competitors by building its genomic analysis ecosystems and software.

Another reason to buy Illumina stock is that it has tremendous growth potential. The company’s sales and earnings are projected to grow 43% over the next few years, resulting in more robust cash flows and higher share values.

About Illumina

Illumina, Inc. offers array-based and sequencing solutions for genomic and genetic analysis. Illumina’s services and products are available to customers across a variety of markets. They enable the use of genomic solutions for research and clinical applications. These include the areas of life science, oncology and reproductive health. It offers consumables and instruments for genetic analysis, genotyping, sequencing, contract service contracts, development and licensing agreements as well as services in cancer detection and testing. Customers include academic and government institutions as well as hospitals and pharmaceutical and biotechnology companies. It sells directly to its customers in North America and Europe as well as Latin America and the Asia-Pacific. It was founded in 1998 in San Diego, California.

Earnings Per Share

As for profitability, Illumina has a trailing twelve months EPS of $4.28.

PE Ratio

Illumina has a trailing twelve months price to earnings ratio of 47.83. Meaning,
the purchaser of the share is investing $47.83 for every dollar of annual earnings.

The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 8.86%.

Revenue Growth

Year-on-year quarterly revenue growth grew by 11.9%, now sitting on 4.66B for the twelve trailing months.

Sales Growth

Illumina’s sales growth for the next quarter is 19.8%.

Stock Price Classification

According to the stochastic oscillator, a useful indicator of overbought and oversold conditions,

Illumina’s stock is considered to be overbought (>=80).

Growth Estimates Quarters

The company’s growth estimates for the current quarter and the next is a negative 65.2% and a negative 22.8%, respectively.

More news about Illumina (ILMN).