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Regeneron (REGN) Stock Moves -1.13%: What You Should Know

Zacks Equity Research

Regeneron (REGN) closed the most recent trading day at $630.31, moving -1.13% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.31%, while the tech-heavy Nasdaq lost 2.29%.

Coming into today, shares of the biopharmaceutical company had gained 5.37% in the past month. In that same time, the Medical sector gained 3.6%, while the S&P 500 gained 5.2%.

Investors will be hoping for strength from REGN as it approaches its next earnings release, which is expected to be August 5, 2020. On that day, REGN is projected to report earnings of $6.23 per share, which would represent year-over-year growth of 3.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.78 billion, down 7.98% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.01 per share and revenue of $7.58 billion. These totals would mark changes of +13.54% and -3.6%, respectively, from last year.

It is also important to note the 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.

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 remained stagnant. REGN is currently a Zacks Rank #4 (Sell).

Looking at its valuation, REGN is holding a Forward P/E ratio of 22.76. Its industry sports an average Forward P/E of 27.7, so we one might conclude that REGN is trading at a discount comparatively.

Meanwhile, REGN's PEG ratio is currently 1.69. 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 1.83 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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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