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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 $223.39, marking a +1.95% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.38%.

Coming into today, shares of the drug developer had gained 5.36% in the past month. In that same time, the Medical sector gained 3.51%, while the S&P 500 gained 2.33%.

RGEN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.31, up 55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $93.89 million, up 35.15% from the year-ago period.

Any recent changes to analyst estimates for RGEN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. RGEN is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that RGEN has a Forward P/E ratio of 132.11 right now. Its industry sports an average Forward P/E of 28.02, so we one might conclude that RGEN is trading at a premium comparatively.

Meanwhile, RGEN's PEG ratio is currently 4.4. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.34 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 204, putting it in the bottom 20% 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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