Here's Why Illumina (ILMN) is a Strong Value Stock

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Illumina (ILMN)

San Diego, CA.-based Illumina Inc. provides sequencing and array-based solutions for genetic and genomic analysis across a wide range of markets, driving their adoption in research and clinical settings.Its customers include leading genomic research centers, academic institutions, government laboratories, hospitals as well as pharmaceutical, biotechnology, commercial molecular diagnostic and consumer genomics companies.

ILMN sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Medical - Biomedical and Genetics industry's P/E of 16.4X, shares of Illumina are trading at a forward P/E of 17.1X. ILMN also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 16.3X, and a Price/Sales ratio of 2.8X.

A company's earnings performance is important for value investors as well. For fiscal 2025, seven analysts revised their earnings estimate higher in the last 60 days for ILMN, while the Zacks Consensus Estimate has increased $0.06 to $4.48 per share. ILMN also holds an average earnings surprise of 106.1%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ILMN to their portfolios.

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Illumina, Inc. (ILMN) : Free Stock Analysis Report

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

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