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Regeneron (REGN) Dips More Than Broader Markets: What You Should Know

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Regeneron (REGN - Free Report) closed at $586.84 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the biopharmaceutical company had lost 14.34% over the past month, lagging the Medical sector's loss of 5.23% and the S&P 500's loss of 3.32% in that time.

Wall Street will be looking for positivity from Regeneron as it approaches its next earnings report date. The company is expected to report EPS of $9.94, down 61.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.77 billion, down 46% from the prior-year quarter.

REGN's full-year Zacks Consensus Estimates are calling for earnings of $42.38 per share and revenue of $11.57 billion. These results would represent year-over-year changes of -43.24% and -28.03%, respectively.

It is also important to note the recent changes to analyst estimates for Regeneron. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. Regeneron is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Regeneron is holding a Forward P/E ratio of 13.87. Its industry sports an average Forward P/E of 20.6, so we one might conclude that Regeneron is trading at a discount comparatively.

Meanwhile, REGN's PEG ratio is currently 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.09 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 108, which puts it in the top 43% 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.

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