Should You Buy Illumina Stock After A 10% Move In 5 Days?

January 25th, 2021 by Trefis Team
ILMN: Illumina logo
ILMN
Illumina

Illumina (NASDAQ:ILMN), best known for its genetic variation and biological function systems, has gained 9.5% over the last 5 trading days, after a UK court announced a judgment in Illumina’s favor in a patent infringement suit filed against the BGI Companies. The Court found that four of the five asserted patents were valid and infringed by BGI. In comparison, the broader S&P 500 grew just 1.4% over the last 5 trading days. Now, is ILMN stock poised to grow further? We believe that the stock remains attractive despite the recent move. ILMN stock is expected to post steady revenue and earnings growth over the coming years, led by an increase in demand for consumables for its systems, as well as growth in total installed base. We believe that there is a 79% chance of a rise in ILMN stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last 5 years. See our analysis on Illumina Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the ILMN Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how ILMN stock could move.

5D: ILMN 9.5%, vs. S&P500 1.4%; Outperformed market

(4% likelihood event)

  • Illumina stock rose 9.5% over a 5-day trading period ending 1/25/2021, compared to broader market (S&P500) rise of 1.4%
  • A change of 9.5% or more over 5 trading days is a 4% likelihood event, which has occurred 54 times out of 1256 in the last 5 years
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10D: ILMN 6.2%, vs. S&P500 1.1%; Outperformed market

(14% likelihood event)

  • Illumina stock rose 6.2% over the last 10 trading days (2 weeks), compared to a broader market (S&P500) rise of 1.1%
  • A change of 6.2% or more over 10 trading days is a 14% likelihood event, which has occurred 181 times out of 1240 in the last 5 years
While ILMN stock may have more room for growth, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck.

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