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

Zacks Equity Research
In the latest trading session, Nvidia (NVDA) closed at $190.67, marking a +1.17% move from the previous day.

Celgene (CELG) closed the most recent trading day at $87.91, moving -0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.34%.

Prior to today's trading, shares of the biotechnology company had lost 2.45% over the past month. This has lagged the Medical sector's gain of 1.34% and the S&P 500's gain of 1.83% in that time.

Investors will be hoping for strength from CELG as it approaches its next earnings release. The company is expected to report EPS of $2.49, up 21.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.01 billion, up 13.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.73 per share and revenue of $17.14 billion, which would represent changes of +20.97% and +12.17%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. CELG is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, CELG currently has a Forward P/E ratio of 8.25. This valuation marks a discount compared to its industry's average Forward P/E of 22.92.

We can also see 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.73 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 88, putting it in the top 35% 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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