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

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In the latest trading session, Regeneron (REGN - Free Report) closed at $591.13, marking a -1.09% move from the previous day. This move lagged the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the biopharmaceutical company had lost 9.3% in the past month. In that same time, the Medical sector lost 4.6%, while the S&P 500 lost 8.06%.

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.

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.

Investors should also note any recent changes to analyst estimates for Regeneron. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.38% higher within the past month. 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 14.1 right now. For comparison, its industry has an average Forward P/E of 20.61, which means Regeneron is trading at a discount to the group.

We can also see that REGN currently has a PEG ratio of 1.76. 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 1.11 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 95, putting it in the top 38% 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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