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Regeneron (REGN) Gains But Lags Market: What You Should Know

Zacks Equity Research

Regeneron (REGN) closed at $628.76 in the latest trading session, marking a +0.04% move from the prior day. The stock lagged the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 0.75%.

REGN will be looking to display strength as it nears its next earnings release. In that report, analysts expect REGN to post earnings of $6.46 per share. This would mark year-over-year growth of 7.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.83 billion, down 5.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.61 per share and revenue of $7.77 billion. These totals would mark changes of +15.97% and -1.16%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for REGN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.51% lower. REGN is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, REGN is currently trading at a Forward P/E ratio of 21.97. This represents a discount compared to its industry's average Forward P/E of 29.15.

Investors should also note that REGN has a PEG ratio of 1.63 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. REGN's industry had an average PEG ratio of 2.01 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 49, putting it in the top 20% 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.

To follow REGN in the coming trading sessions, be sure to utilize Zacks.com.

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