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

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Celgene (CELG - Free Report) closed the most recent trading day at $97.43, moving +0.47% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 1.41%, and the tech-heavy Nasdaq gained 1.75%.

Prior to today's trading, shares of the biotechnology company had gained 3.19% over the past month. This has outpaced the Medical sector's loss of 1.21% and the S&P 500's gain of 0.46% 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 $2.73 per share. This would mark year-over-year growth of 19.21%. Our most recent consensus estimate is calling for quarterly revenue of $4.46 billion, up 14.55% from the year-ago period.

CELG's full-year Zacks Consensus Estimates are calling for earnings of $10.87 per share and revenue of $17.44 billion. These results would represent year-over-year changes of +22.55% and +14.11%, respectively.

Investors should also note any recent changes to analyst estimates for CELG. These recent revisions tend to reflect the evolving nature of short-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.

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 remained stagnant within the past month. CELG currently has a Zacks Rank of #3 (Hold).

In terms of valuation, CELG is currently trading at a Forward P/E ratio of 8.92. Its industry sports an average Forward P/E of 26.67, so we one might conclude that CELG is trading at a discount comparatively.

Investors should also note that CELG has a PEG ratio of 0.41 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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