Shares of Exelixis (EXEL) have been strong performers lately, with the stock up 7.7% over the past month. The stock hit a new 52-week high of $57.57 in the previous session. Exelixis has gained 30.2% since the start of the year compared to the 2.8% gain for the Zacks Medical sector and the 7.4% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 5, 2026, Exelixis reported EPS of $0.87 versus consensus estimate of $0.75.
For the current fiscal year, Exelixis is expected to post earnings of $3.53 per share on $2.6 in revenues. This represents a 14.61% change in EPS on a 11.96% change in revenues. For the next fiscal year, the company is expected to earn $4.07 per share on $3.05 in revenues. This represents a year-over-year change of 15.34% and 17.56%, respectively.
Valuation Metrics
Though Exelixis has recently hit a 52-week high, what is next for Exelixis? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Exelixis has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.7X. On a trailing cash flow basis, the stock currently trades at 18.9X versus its peer group's average of 15.1X. Additionally, the stock has a PEG ratio of 1.47. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Exelixis currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Exelixis passes the test. Thus, it seems as though Exelixis shares could still be poised for more gains ahead.
How Does EXEL Stack Up to the Competition?
Shares of EXEL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CorMedix Inc (CRMD). CRMD has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. CorMedix Inc beat our consensus estimate by 22.86%, and for the current fiscal year, CRMD is expected to post earnings of $0.51 per share on revenue of $335.4 million.
Shares of CorMedix Inc have gained 2.5% over the past month, and currently trade at a forward P/E of 17.39X and a P/CF of 4.34X.
The Medical - Biomedical and Genetics industry is in the top 45% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EXEL and CRMD, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
