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Regeneron (REGN) Gains But Lags Market: What You Should Know
Regeneron (REGN - Free Report) closed at $729.91 in the latest trading session, marking a +1.1% move from the prior day. The stock lagged the S&P 500's daily gain of 1.19%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the biopharmaceutical company had lost 0.65% over the past month. This has lagged the Medical sector's gain of 0.84% and the S&P 500's gain of 4.06% in that time.
Wall Street will be looking for positivity from Regeneron as it approaches its next earnings report date. This is expected to be February 3, 2023. On that day, Regeneron is projected to report earnings of $9.91 per share, which would represent a year-over-year decline of 58.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.21 billion, down 35.24% from the year-ago period.
Investors might also notice 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. Regeneron is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Regeneron is holding a Forward P/E ratio of 17.36. Its industry sports an average Forward P/E of 20.83, so we one might conclude that Regeneron is trading at a discount comparatively.
It is also worth noting that REGN currently has a PEG ratio of 1.93. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.