Celgene Corp

Celgene Corp ( CELG - Analyst Report ) is up more than 25% in the last two months after spiking from a short-term low in August. With another good quarter in hand and a bullish growth projection, this Zacks #1 Rank stock is a biotech with momentum.

Company Description

Celgene Corp is an integrated biotech company that specializes in developing and commercializing various cancer and immune-inflamatory products. The company was founded in 1980 and has a market cap of $30 billion.

Celgene has been on a tear for the last two months, gaining more than 25% as shares continue to rebound from an August low. The momentum also came ahead of record Q3 results from October 27 that came in ahead of expectations.

Third-Quarter Results

Revenue for the period was up 38% from last year to $1.22 billion. Earnings also came in strong at 81 cents, a sharp increase from last year's 60 cents.

The good quarter was driven by REVLIMID, the company's bone marrow and blood cell drug, with sales up 28% from last year to $820 million on market share gains and higher treatment duration.

Estimates

We haven't seen any movement in estimates yet as the analysts continue to update their models, but as it stands, the current-year estimate is projecting 33% growth while the next-year estimate is calling for an 18% increase in earnings.

Valuation

But in spite of the gains, the valuation picture still looks solid, with a PEG ratio of 1.11 only slightly above the benchmark of 1 for value.

12-Month Chart

On the chart, shares have rebounded sharply from the short-term low from August, hitting a new multi-year high in the process. Take a look below.

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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.