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Regeneron (REGN) Gains But Lags Market: What You Should Know

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In the latest trading session, Regeneron (REGN - Free Report) closed at $612.49, marking a +0.84% move from the previous day. The stock lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq added 0.05%.

Prior to today's trading, shares of the biopharmaceutical company had lost 11.13% over the past month. This has lagged the Medical sector's loss of 2.37% and the S&P 500's loss of 4.31% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $2.77 billion, down 46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $42.38 per share and revenue of $11.57 billion. These totals would mark changes of -43.24% and -28.03%, respectively, from last year.

Any recent changes to analyst estimates for Regeneron 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% higher. Regeneron is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Regeneron has a Forward P/E ratio of 14.33 right now. This valuation marks a discount compared to its industry's average Forward P/E of 21.22.

We can also see that REGN currently has a PEG ratio of 1.79. 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 was holding an average PEG ratio of 1.11 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

To follow REGN in the coming trading sessions, be sure to utilize Zacks.com.


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