Core Viewpoint - Ligand Pharmaceuticals has received a Zacks Rank upgrade to 1 (Strong Buy), indicating a positive earnings outlook that may lead to increased buying pressure and a rise in stock price [1][10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Ligand, with the Zacks Consensus Estimate increasing by 21.6% over the past three months [8]. - The company is projected to earn $4.71 per share for the fiscal year ending December 2024, reflecting a year-over-year growth of 16% [16]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 5% receiving a Strong Buy rating, indicating superior potential for market-beating returns [9][13]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [12]. Market Implications - The upgrade to Zacks Rank 1 positions Ligand in the top 5% of Zacks-covered stocks, suggesting a likelihood of near-term stock price appreciation due to the positive earnings estimate revisions [9][10]. - The correlation between earnings estimate revisions and stock price movements is strong, particularly influenced by institutional investors who adjust their valuations based on these estimates [5].

Core Viewpoint - Ligand Pharmaceuticals reported a decline in earnings and total revenues in Q1 2024, but still managed to beat earnings estimates, while the stock has shown a positive trend in the past month, outperforming the S&P 500 [1][2][10]. Financial Performance - Core adjusted diluted net income per share was $1.20, a 10% decline year-over-year, but above the Zacks Consensus Estimate of $1.13 [2]. - Total revenues were $31.0 million, down 30% from the previous year, missing the Zacks Consensus Estimate of $32.5 million [2]. - Royalty revenues increased by 8% year-over-year to $19.1 million, driven by royalties from several pharmaceutical products [4]. - Captisol sales decreased by 13% year-over-year to $9.2 million due to unfavorable timing of customer orders, with no sales related to COVID-19 recorded during the quarter [4]. - Contract revenues fell 83% year-over-year to $2.6 million, attributed to a significant milestone payment received in the prior year [5]. Expenses and Cash Position - Research and development expenses decreased by 10% to $6.0 million, while general and administrative expenses increased by 1% to $11.0 million [5]. - Cash, cash equivalents, and short-term investments rose to $310.6 million as of March 31, 2024, compared to $170.3 million as of December 31, 2023 [6]. 2024 Guidance - Ligand maintained its 2024 revenue guidance of $130-$142 million, with royalty revenues expected between $90-$95 million and contract revenues between $15 million and $20 million [7]. - Captisol sales are projected to be between $25 million and $27 million, excluding any COVID-19 related sales [8]. - The company expects adjusted diluted EPS to be in the range of $4.25-$4.75 [7]. Market Position and Estimates - Estimates for Ligand have trended downward over the past month, with a poor Growth Score of F and a Momentum Score of C [8]. - The stock has an aggregate VGM Score of F, indicating a weak overall performance across investment strategies [9]. - Despite the downward estimate revisions, Ligand holds a Zacks Rank 1 (Strong Buy), suggesting an expectation of above-average returns in the coming months [10]. Industry Comparison - Ligand is part of the Zacks Medical - Biomedical and Genetics industry, where Geron (GERN) has seen a 5% gain over the past month, reporting a significant year-over-year revenue increase of 1400% [11]. - Geron has a Zacks Rank 3 (Hold) and a VGM Score of F, indicating mixed performance within the industry [12].

Group 1: Stock Performance and Price Targets - Ligand Pharmaceuticals (LGND) closed at $87.91, with a 20.7% gain over the past four weeks, and a mean price target of $116.33 indicating a 32.3% upside potential [1] - The mean estimate includes three short-term price targets with a standard deviation of $25.11, where the lowest estimate of $95 suggests an 8.1% increase, and the highest estimate of $144 indicates a potential surge of 63.8% [2] - A tight clustering of price targets, represented by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement [7] Group 2: Earnings Estimates and Analyst Consensus - Analysts show growing optimism about LGND's earnings prospects, as indicated by strong agreement in revising EPS estimates higher, which correlates with near-term stock price movements [9] - The Zacks Consensus Estimate for the current year has increased by 3.8% due to one estimate moving higher over the last 30 days without any negative revisions [10] - LGND holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [11]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Our ...

Investors might want to bet on Ligand Pharmaceuticals (LGND) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. Analysts have been steadily raising their estimates for Ligand. Over the past three months, the Zacks Consensus Estimate for the company has increased 17.2%. The change in a company's future earnings potential, as reflected in earnings estimate r ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate rev ...

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Ligand Pharmaceuticals (LGND) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.Ligand Pharmaceuticals is a member of the Medical sector. This grou ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________ FORM 10-Q ________________________________________________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Pe ...

Ligand Pharmaceuticals Incorporated (LGND) reported core adjusted diluted net income per share of $1.20 in first-quarter 2024 from continuing operations. Although earnings declined 10% year over, the figure still beat the Zacks Consensus Estimate of $1.13.Total revenues of $31.0 million were down 30% from the year-ago quarter’s levels. The reported figure missed the Zacks Consensus Estimate of $32.5 million.The downside in earnings and sales was due to the receipt of a milestone payment from Travere Therape ...

Ligand Pharmaceuticals (LGND) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.19%. A quarter ago, it was expected that this drugmaker would post earnings of $0.58 per share when it actually produced earnings of $1.05, delivering a surprise of 81.03%.Over the last four quarters, the ...