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

In the latest trading session, Celgene (CELG) closed at $99.30, marking a +0.46% move from the previous day. The stock lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.75%.

Coming into today, shares of the biotechnology company had gained 1.79% in the past month. In that same time, the Medical sector lost 0.42%, while the S&P 500 gained 3.44%.

CELG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.66, up 16.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.46 billion, up 14.55% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.91 per share and revenue of $17.44 billion. These totals would mark changes of +23% and +14.11%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CELG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CELG is currently a Zacks Rank #3 (Hold).

Looking at its valuation, CELG is holding a Forward P/E ratio of 9.06. For comparison, its industry has an average Forward P/E of 28.02, which means CELG is trading at a discount to the group.

We can also see that CELG currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CELG's industry had an average PEG ratio of 1.62 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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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.