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Incyte (INCY) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Incyte (INCY) closed the most recent trading day at $90.10, moving -1.14% from the previous trading session. This change lagged the S&P 500's 0.49% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.43%.

Prior to today's trading, shares of the specialty drugmaker had gained 3.1% over the past month. This has lagged the Medical sector's gain of 5.22% and outpaced the S&P 500's gain of 2.9% in that time.

INCY will be looking to display strength as it nears its next earnings release. On that day, INCY is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 45%. Our most recent consensus estimate is calling for quarterly revenue of $569.75 million, up 21.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.77 per share and revenue of $2.15 billion. These totals would mark changes of +166.35% and +19.4%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for INCY. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INCY is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note INCY's current valuation metrics, including its Forward P/E ratio of 32.9. This valuation marks a premium compared to its industry's average Forward P/E of 25.72.

Also, we should mention that INCY has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.79 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 58, putting it in the top 23% 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.

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