Celgene (CELG - Free Report) closed at $94.45 in the latest trading session, marking a +0.27% move from the prior day. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.26%.
Heading into today, shares of the biotechnology company had gained 4.1% over the past month, lagging the Medical sector's gain of 4.33% and outpacing the S&P 500's gain of 3.23% in that time.
CELG will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. The company is expected to report EPS of $2.22, up 16.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.81 billion, up 15.8% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.76 per share and revenue of $15.09 billion, which would represent changes of +17.74% and +16.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CELG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CELG currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that CELG has a Forward P/E ratio of 12.34 right now. Its industry sports an average Forward P/E of 27.99, so we one might conclude that CELG is trading at a discount comparatively.
Also, we should mention that CELG has a PEG ratio of 0.57. 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 1.9 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 89, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.