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Celgene (CELG) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Celgene (CELG - Free Report) closed at $67.54, marking a +1.18% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.

Coming into today, shares of the biotechnology company had lost 9.6% in the past month. In that same time, the Medical sector lost 2.5%, while the S&P 500 lost 4.06%.

Wall Street will be looking for positivity from CELG as it approaches its next earnings report date. This is expected to be January 24, 2019. The company is expected to report EPS of $2.31, up 15.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.97 billion, up 14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.80 per share and revenue of $15.20 billion, which would represent changes of +18.28% and +16.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CELG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.49% lower. CELG is currently a Zacks Rank #3 (Hold).

Looking at its valuation, CELG is holding a Forward P/E ratio of 7.68. Its industry sports an average Forward P/E of 23.16, so we one might conclude that CELG is trading at a discount comparatively.

We can also see that CELG currently has a PEG ratio of 0.35. 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 1.61 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 82, which puts 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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