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Celgene (CELG) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
United Technologies (UTX) closed the most recent trading day at $132.53, moving +0.94% from the previous trading session.

Celgene (CELG) closed the most recent trading day at $87.92, moving -0.26% from the previous trading session. This change lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the biotechnology company had lost 0.56% in the past month. In that same time, the Medical sector lost 0.22%, while the S&P 500 gained 0.52%.

Wall Street will be looking for positivity from CELG as it approaches its next earnings report date. In that report, analysts expect CELG to post earnings of $2.49 per share. This would mark year-over-year growth of 21.46%. Meanwhile, our latest consensus estimate is calling for revenue of $4.01 billion, up 13.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.73 per share and revenue of $17.14 billion. These totals would mark changes of +20.97% and +12.17%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CELG. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. CELG is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, CELG is currently trading at a Forward P/E ratio of 8.22. This represents a discount compared to its industry's average Forward P/E of 21.59.

It is also worth noting that CELG currently has a PEG ratio of 0.37. 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. CELG's industry had an average PEG ratio of 1.84 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 83, putting it in the top 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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