Celgene (CELG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Celgene (CELG) closed at $96.36, marking a -0.21% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Heading into today, shares of the biotechnology company had gained 1.68% over the past month, lagging the Medical sector's gain of 2.28% and outpacing the S&P 500's gain of 0.1% in that time.
Investors will be hoping for strength from CELG as it approaches its next earnings release. In that report, analysts expect CELG to post earnings of $2.62 per share. This would mark year-over-year growth of 21.3%. Meanwhile, our latest consensus estimate is calling for revenue of $4.24 billion, up 11.18% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.72 per share and revenue of $17.12 billion, which would represent changes of +20.86% and +12.08%, respectively, from the prior year.
Investors might also notice 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CELG currently has a Zacks Rank of #2 (Buy).
Digging into valuation, CELG currently has a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 22.92, which means CELG is trading at a discount to the group.
Also, we should mention that CELG has a PEG ratio of 0.42. 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 1.76 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 73, putting it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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