Celgene (CELG - Free Report) closed at $75.09 in the latest trading session, marking a +1.1% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.64%.
Prior to today's trading, shares of the biotechnology company had lost 15.11% over the past month. This has lagged the Medical sector's loss of 3.98% and the S&P 500's loss of 4.95% in that time.
CELG will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect CELG to post earnings of $2.31 per share. This would mark year-over-year growth of 15.5%. Our most recent consensus estimate is calling for quarterly revenue of $3.97 billion, up 14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.80 per share and revenue of $15.20 billion. These totals would mark changes of +18.28% and +16.93%, respectively, from last year.
Investors should also note any 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. 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 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 2.49% lower within the past month. CELG is currently a Zacks Rank #3 (Hold).
In terms of valuation, CELG is currently trading at a Forward P/E ratio of 8.44. For comparison, its industry has an average Forward P/E of 27.74, which means CELG is trading at a discount to the group.
We can also see that CELG currently has a PEG ratio of 0.39. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.87 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 82, putting it in the top 32% 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.