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Celgene (CELG) Gains As Market Dips: What You Should Know

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Celgene (CELG - Free Report) closed the most recent trading day at $99.42, moving +0.05% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Coming into today, shares of the biotechnology company had gained 3.82% in the past month. In that same time, the Medical sector gained 1.37%, while the S&P 500 gained 3.23%.

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 $2.73 per share, which would represent year-over-year growth of 19.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.46 billion, up 14.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.91 per share and revenue of $17.44 billion, which would represent changes of +23% and +14.11%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CELG. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. CELG currently has a Zacks Rank of #3 (Hold).

Digging into valuation, CELG currently has a Forward P/E ratio of 9.11. Its industry sports an average Forward P/E of 28.25, so we one might conclude that CELG is trading at a discount comparatively.

Meanwhile, CELG's PEG ratio is currently 0.46. 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 was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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.

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