Celgene (CELG) Gains But Lags Market: What You Should Know
Celgene (CELG) closed the most recent trading day at $94.36, moving +0.51% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.77%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.75%.
Coming into today, shares of the biotechnology company had lost 1.53% in the past month. In that same time, the Medical sector gained 7.75%, while the S&P 500 gained 8.19%.
CELG will be looking to display strength as it nears its nex t earnings release. In tha t report , analysts expect CELG to post earnings of $2.62 per share. This would mark year-over-year growth of 21.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.24 billion, up 11.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.72 per share and revenue of $17.12 billion, which would represent changes of +20.86% and +12.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CELG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CELG is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, CELG currently has a Forward P/E ratio of 8.75. Its industry sports an average Forward P/E of 22.92, so we one might conclude that CELG is trading at a discount comparatively.
It is also worth noting that CELG currently has a PEG ratio of 0.41. 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 was holding an average PEG ratio of 2.07 at yesterday’s closing price.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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