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Repligen (RGEN) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Repligen (RGEN - Free Report) closed at $222.06, marking a +1.9% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.57%.

Prior to today's trading, shares of the drug developer had gained 6.78% over the past month. This has outpaced the Medical sector's gain of 4.66% and the S&P 500's gain of 4.69% in that time.

Investors will be hoping for strength from RGEN as it approaches its next earnings release. On that day, RGEN is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 55%. Meanwhile, our latest consensus estimate is calling for revenue of $93.89 million, up 35.15% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for RGEN. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant. RGEN is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that RGEN has a Forward P/E ratio of 131.5 right now. For comparison, its industry has an average Forward P/E of 27.5, which means RGEN is trading at a premium to the group.

It is also worth noting that RGEN currently has a PEG ratio of 4.38. 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. RGEN's industry had an average PEG ratio of 1.32 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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