U.S. Markets close in 2 hrs 14 mins

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

Zacks Equity Research

Celgene (CELG) closed the most recent trading day at $91.76, moving -0.18% from the previous trading session. This change lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.17%.

Prior to today's trading, shares of the biotechnology company had lost 4.68% over the past month. This has lagged the Medical sector's loss of 0.79% and the S&P 500's gain of 4.82% in that time.

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 $2.62 per share. This would mark year-over-year growth of 21.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.24 billion, up 11.18% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.72 per share and revenue of $17.12 billion. These totals would mark changes of +20.86% and +12.08%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CELG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CELG is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CELG is holding a Forward P/E ratio of 8.57. This valuation marks a discount compared to its industry's average Forward P/E of 23.01.

Investors should also note that CELG has a PEG ratio of 0.4 right now. 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 1.85 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.

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


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.
 
Zacks Investment Research