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Celgene (CELG) Gains As Market Dips: What You Should Know

Zacks Equity Research
Rogers Communication (RCI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Celgene (CELG) closed the most recent trading day at $95.10, moving +1.02% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Heading into today, shares of the biotechnology company had gained 6.63% over the past month, outpacing the Medical sector's loss of 2.31% and the S&P 500's gain of 4.3% in that time.

CELG will be looking to display strength as it nears its next earnings release. In that report, analysts expect CELG to post earnings of $2.49 per share. This would mark year-over-year growth of 21.46%. Our most recent consensus estimate is calling for quarterly revenue of $4.01 billion, up 13.21% from the year-ago period.

CELG's full-year Zacks Consensus Estimates are calling for earnings of $10.71 per share and revenue of $17.15 billion. These results would represent year-over-year changes of +20.74% and +12.24%, respectively.

Investors might also notice recent changes to analyst estimates for CELG. Recent revisions tend to reflect the latest near-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.

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 remained stagnant. CELG is currently a Zacks Rank #3 (Hold).

Investors should also note CELG's current valuation metrics, including its Forward P/E ratio of 8.79. For comparison, its industry has an average Forward P/E of 21.57, which means CELG is trading at a discount to the group.

Also, we should mention that CELG has a PEG ratio of 0.4. 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 2 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 55, putting it in the top 22% 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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