In the latest trading session, Celgene (CELG - Free Report) closed at $94.09, marking a -0.96% move from the previous day. This change lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the biotechnology company had gained 11.42% over the past month, outpacing the Medical sector's gain of 2.13% and the S&P 500's gain of 5.68% in that time.
Wall Street will be looking for positivity from CELG as it approaches its next earnings report date. In that report, analysts expect CELG to post earnings of $2.50 per share. This would mark year-over-year growth of 21.95%. Meanwhile, our latest consensus estimate is calling for revenue of $4.01 billion, up 13.21% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $17.15 billion, which would represent changes of +21.08% and +12.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CELG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. CELG currently has a Zacks Rank of #3 (Hold).
In terms of valuation, CELG is currently trading at a Forward P/E ratio of 8.85. For comparison, its industry has an average Forward P/E of 21.31, which means CELG is trading at a discount to the group.
We can also see that CELG currently has a PEG ratio of 0.4. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.03 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 67, putting it in the top 27% 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.