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Celgene (CELG) Gains But Lags Market: What You Should Know

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Celgene (CELG - Free Report) closed at $85.26 in the latest trading session, marking a +0.95% move from the prior day. The stock lagged the S&P 500's daily gain of 1.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 2.02%.

Heading into today, shares of the biotechnology company had lost 3.44% over the past month, lagging the Medical sector's gain of 1.05% and the S&P 500's gain of 1.5% in that time.

Investors will be hoping for strength from CELG as it approaches its next earnings release. On that day, CELG is projected to report earnings of $2.49 per share, which would represent year-over-year growth of 21.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.01 billion, up 13.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.73 per share and revenue of $17.14 billion. These totals would mark changes of +20.97% and +12.17%, respectively, from last year.

Any recent changes to analyst estimates for CELG should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CELG currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, CELG is holding a Forward P/E ratio of 7.87. This valuation marks a discount compared to its industry's average Forward P/E of 21.55.

Investors should also note that CELG has a PEG ratio of 0.36 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.58 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 72, which puts it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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