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Celgene (CELG) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Celgene CELG closed at $91.52, marking a +1.67% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq added 0.91%.

Heading into today, shares of the biotechnology company had gained 1.83% over the past month, lagging the Medical sector's gain of 4.05% and the S&P 500's gain of 2.11% in that time.

Investors will be hoping for strength from CELG as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, CELG is projected to report earnings of $2.22 per share, which would represent year-over-year growth of 16.23%. Meanwhile, our latest consensus estimate is calling for revenue of $3.81 billion, up 15.8% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.76 per share and revenue of $15.09 billion. These totals would mark changes of +17.74% and +16.1%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CELG. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.66% higher. CELG is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, CELG is currently trading at a Forward P/E ratio of 11.77. This represents a discount compared to its industry's average Forward P/E of 26.72.

We can also see that CELG currently has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, 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.

Be sure to follow all of these stock-moving metrics, and many more, on 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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