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Celgene (CELG) Gains But Lags Market: What You Should Know

In the latest trading session, Celgene (CELG) closed at $69.98, marking a +0.5% move from the previous day. The stock lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.72%.

Coming into today, shares of the biotechnology company had lost 17.38% in the past month. In that same time, the Medical sector lost 1.14%, while the S&P 500 lost 2.09%.

Investors will be hoping for strength from CELG as it approaches its next earnings release, which is expected to be January 24, 2019. On that day, CELG is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 15.5%. Our most recent consensus estimate is calling for quarterly revenue of $3.97 billion, up 14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.80 per share and revenue of $15.20 billion, which would represent changes of +18.28% and +16.93%, respectively, from the prior year.

Any recent changes to analyst estimates for CELG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.49% lower within the past month. CELG is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CELG has a Forward P/E ratio of 7.92 right now. This represents a discount compared to its industry's average Forward P/E of 23.18.

It is also worth noting that CELG currently has a PEG ratio of 0.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CELG in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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