Shares of Repligen (RGEN) have been strong performers lately, with the stock up 19.4% over the past month. The stock hit a new 52-week high of $155.27 in the previous session. Repligen has gained 63.5% since the start of the year compared to the 2% move for the Zacks Medical sector and the 5.9% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2020, Repligen reported EPS of $0.42 versus consensus estimate of $0.28 while it beat the consensus revenue estimate by 5.76%.
For the current fiscal year, Repligen is expected to post earnings of $1.13 per share on $317.07 million in revenues. This represents a 5.61% change in EPS on a 17.33% change in revenues. For the next fiscal year, the company is expected to earn $1.32 per share on $373.7 million in revenues. This represents a year-over-year change of 17.4% and 17.86%, respectively.
Repligen may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Repligen has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 134.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 107.3X versus its peer group's average of 16.3X. Additionally, the stock has a PEG ratio of 6.1. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Repligen currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Repligen passes the test. Thus, it seems as though Repligen shares could have potential in the weeks and months to come.
How Does Repligen Stack Up to the Competition?
Shares of Repligen have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including OSMOTICA PHARM (OSMT), Tiziana Life Sciences PLC Sponsored (TLSA), and Bristol Myers Squibb (BMY), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 38% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Repligen, even beyond its own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Repligen Corporation (RGEN) : Free Stock Analysis Report
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
OSMOTICA PHARM (OSMT) : Free Stock Analysis Report
Tiziana Life Sciences PLC Sponsored ADR (TLSA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research