Illumina (NASDAQ:ILMN) is a California-based company that develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The stock has been a world beater over the past decade. Shares have average annual returns of 23% over a 10-year period as of close on July 24.
A recent report from Global Market Insights projected that the worldwide genetic testing market would surpass $22 billion U.S. by 2024. Big Market Research sees the global genetic testing market reaching $17.6 billion by 2025. Still, this represents an attractive CAGR of 11.5% in the period covering 2018 to 2025.
Shares of Illumina have dropped 15% over the past month. The stock suffered a steep drop after releasing preliminary Q2 2019 results. The company is expected to release its full second-quarter earnings report on July 29.
Illumina’s Q2 preliminary report projected revenue of $835 million, which is $50 million lower than its original projections. The company said that this setback was due to a sequencing systems and consumables purchase that it failed to close out in the second half of June.
Interestingly, Illumina has historically fallen after releasing earnings.
That means the stock may be a risky pickup ahead of its July 29 release. However, the company is still slated for solid growth for the full year.
Illumina has been punished for bad timing and the selloff looks overdone. Shares had an RSI of 33 as of close on July 24, which puts Illumina just outside of technically oversold territory.
