Celgene (CELG) Gains But Lags Market: What You Should Know
Celgene (CELG) closed at $87.58 in the latest trading session, marking a +0.07% move from the prior day. The stock lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.
Coming into today, shares of the biotechnology company had gained 27.43% in the past month. In that same time, the Medical sector lost 4.78%, while the S&P 500 lost 3.04%.
Investors will be hoping for strength from CELG as it approaches its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect CELG to post earnings of $2.31 per share. This would mark year-over-year growth of 15.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.97 billion, up 13.91% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CELG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, CELG currently has a Forward P/E ratio of 8.46. This valuation marks a discount compared to its industry's average Forward P/E of 24.63.
We can also see that CELG currently 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.46 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Celgene Corporation (CELG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
