In the latest trading session, Exelixis (EXEL - Free Report) closed at $23.76, marking a -1.29% move from the previous day. This move lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.21%.
Heading into today, shares of the drug developer had gained 13.06% over the past month, outpacing the Medical sector's loss of 3.97% and the S&P 500's loss of 1.4% in that time.
Investors will be hoping for strength from EXEL as it approaches its next earnings release, which is expected to be February 25, 2019. In that report, analysts expect EXEL to post earnings of $0.25 per share. This would mark year-over-year growth of 108.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $195.01 million, up 62.41% from the year-ago period.
It is also important to note the recent changes to analyst estimates for EXEL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. EXEL currently has a Zacks Rank of #2 (Buy).
In terms of valuation, EXEL is currently trading at a Forward P/E ratio of 19.32. For comparison, its industry has an average Forward P/E of 24.9, which means EXEL is trading at a discount to the group.
Meanwhile, EXEL's PEG ratio is currently 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.