Regeneron (REGN) Gains As Market Dips: What You Should Know
Regeneron (REGN) closed the most recent trading day at $598.44, moving +0.56% from the previous trading session. This change outpaced the S&P 500's 0.1% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today's trading, shares of the biopharmaceutical company had lost 9.01% over the past month. This has lagged the Medical sector's gain of 1.09% and the S&P 500's gain of 3.67% in that time.
Investors will be hoping for strength from Regeneron as it approaches its next earnings release. On that day, Regeneron is projected to report earnings of $19.49 per share, which would represent year-over-year growth of 104.51%. Our most recent consensus estimate is calling for quarterly revenue of $4.39 billion, up 81.02% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Regeneron. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has moved 0.52% higher. Regeneron is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Regeneron has a Forward P/E ratio of 11.85 right now. This represents a discount compared to its industry's average Forward P/E of 17.79.
It is also worth noting that REGN currently has a PEG ratio of 1.39. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.29 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 109, putting it in the top 43% 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.
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