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Exelixis (EXEL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Exelixis (EXEL) closed at $19.39, marking a +0.94% move from the previous day. This move outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.11%.

Heading into today, shares of the drug developer had gained 4.01% over the past month, outpacing the Medical sector's gain of 1.18% and the S&P 500's gain of 2.78% in that time.

Wall Street will be looking for positivity from EXEL as it approaches its next earnings report date. This is expected to be February 26, 2020. On that day, EXEL is projected to report earnings of $0.15 per share, which would represent a year-over-year decline of 59.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $240.92 million, up 5.39% from the year-ago period.

Investors should also note any recent changes to analyst estimates for EXEL. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.94% lower. EXEL is currently a Zacks Rank #3 (Hold).

In terms of valuation, EXEL is currently trading at a Forward P/E ratio of 32.15. For comparison, its industry has an average Forward P/E of 29.59, which means EXEL is trading at a premium to the group.

Investors should also note that EXEL has a PEG ratio of 3.92 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.84 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 70, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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