Celgene (CELG - Free Report) closed the most recent trading day at $89.25, moving +1.17% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 0.65%.
Prior to today's trading, shares of the biotechnology company had lost 6.2% over the past month. This has lagged the Medical sector's gain of 2.43% and the S&P 500's gain of 0.86% 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. On that day, CELG is projected to report earnings of $2.22 per share, which would represent year-over-year growth of 16.23%. Our most recent consensus estimate is calling for quarterly revenue of $3.81 billion, up 15.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.76 per share and revenue of $15.11 billion, which would represent changes of +17.74% and +16.27%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CELG. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CELG is currently a Zacks Rank #3 (Hold).
In terms of valuation, CELG is currently trading at a Forward P/E ratio of 10.08. Its industry sports an average Forward P/E of 31.31, so we one might conclude that CELG is trading at a discount comparatively.
It is also worth noting that CELG currently has a PEG ratio of 0.46. 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 2.13 as of yesterday's close.
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 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.