Illumina Introduces a New AI algorithm PromoterAI: Stock to Gain?

Illumina Inc. ILMN recently introduced PromoterAI, a new AI algorithm that accurately deciphers pathogenic regulatory genetic variants in the noncoding regions of the human genome. PromoterAI turns data into insights to help researchers accelerate new breakthroughs in diagnosis for rare diseases. It is the latest addition to the company’s artificial intelligence ("AI") and software portfolio. ILMN Stock’s Likely Trend Following the NewsSince the announcement on May 29, ILMN’s shares declined 0.2%, closing at $84.28 yesterday. The company is breaking new ground with AI technology. In 2019, the Illumina Artificial Intelligence Lab released SpliceAI, a deep learning tool for interpreting noncoding cryptic splice mutations. In 2023, Illumina released PrimateAI-3D, which predicts the pathogenicity of protein-coding variants based on evolutionary conservation and protein structure. PromoterAI is the latest genomic AI algorithmic innovation from Illumina. As a result, we expect the news to boost market sentiment toward ILMN stock.Illumina presently has a market capitalization of $13.34 billion. The company’s earnings yield of 5.1% sits comfortably against the industry’s -31.7%. It delivered a trailing four-quarter average earnings surprise of 56.4%.About ILMN’s PromoterAIBuilt on state-of-the-art deep learning neural networks, PromoterAI brings unprecedented precision to the interpretation of promoter variants. With PromoterAI applied to whole-genome sequencing ("WGS") data analysis, clinical researchers are empowered to better understand the etiology and drug target potential for rare genetic diseases, common diseases and oncology.PromoterAI will be accessible through Illumina Connected Software, and it is now available as part of DRAGEN secondary analysis. Precomputed PromoterAI scores for all human promoter single-nucleotide variants are freely available for academic and noncommercial research use.Relevance of ILMN’s PromoterAICurrently, only about 30% of rare disease patients receive an accurate diagnosis from exome sequencing. For many patients, insights may be hidden in what are known as "noncoding regions," which comprise over 98% of the genome and may hold the key to increasing the diagnostic rate. Promoters are key noncoding elements that define where transcription of a gene begins. When promoters are disrupted by genetic mutations, it can have profound consequences for downstream gene expression. The PromoterAI algorithm interprets the genetic sequence of promoters, thus opening the door to precise diagnoses for more patients with rare diseases.  Image Source: Zacks Investment ResearchIndustry Prospects Favor ILMNPer Dimension Market Research’s report, AI in the genomics market is estimated to be valued at $1.40 billion in 2025. It is further anticipated to reach $44.93 billion by 2034 at a compound annual growth rate of 47%. Key factors driving the market growth are increasing demand for precision medicine, rising R&D expenditure and growing demand for effective handling tools for managing large data. Another Development by IlluminaOn Tuesday, Illumina received approval from Japan’s Ministry of Health, Labour and Welfare for TruSightTM Oncology (TSO) Comprehensive for Class III/IV Medical Device (Specially Controlled Medical Device). The TSO Comprehensive is the first U.S. FDA-approved, distributable comprehensive genomic profiling in vitro diagnostics (IVD) kit with pan-cancer CDx claims in the United States.ILMN Stock Price PerformanceOver the past three months, ILMN’s shares have risen 0.1% against the industry’s 8.5% decline.Illumina’s Zacks Rank and Key PicksIllumina currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space include Phibro Animal Health PAHC, Hims & Hers Health HIMS and Prestige Consumer Healthcare PBH. While Phibro Animal Health sports a Zacks Rank #1 (Strong Buy) at present, Hims & Hers Health and Prestige Consumer Health carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have jumped 3.6% to $2.01 in the past 30 days. Shares of the company have rallied 37.9% in the past year compared with the industry’s 10.1% growth. Its earnings yield of 8.7% compares comfortably with the industry’s 0.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%.Hims & Hers Health’s shares have surged 172.5% in the past year. Estimates for the company’s 2025 earnings per share have jumped 12.5% to 72 cents in the past 30 days. HIMS’ earnings beat estimates in two of the trailing four quarters, matched in one and missed in the other, the average surprise being 19.6%. In the last reported quarter, it posted an earnings surprise of 66.7%.Estimates for Prestige Consumer Healthcare’s fiscal 2026 earnings per share have increased 1 cent to $4.77 in the past 30 days. Shares of the company have jumped 37.2% in the past year compared with the industry’s 10.1% growth. PBH’s earnings surpassed estimates in three of the trailing four quarters and matched on one occasion, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 1.5%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illumina, Inc. (ILMN): Free Stock Analysis Report Prestige Consumer Healthcare Inc. (PBH): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks