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Incyte (INCY) Gains But Lags Market: What You Should Know

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Incyte (INCY - Free Report) closed the most recent trading day at $76.46, moving +0.51% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.01%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.43%.

Prior to today's trading, shares of the specialty drugmaker had lost 13.61% over the past month. This has lagged the Medical sector's loss of 1.91% and the S&P 500's gain of 0.19% in that time.

Wall Street will be looking for positivity from INCY as it approaches its next earnings report date. This is expected to be February 13, 2020. In that report, analysts expect INCY to post earnings of $0.58 per share. This would mark year-over-year growth of 45%. Meanwhile, our latest consensus estimate is calling for revenue of $569.75 million, up 21.64% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for INCY. These recent revisions tend to reflect the evolving nature of short-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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. INCY is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, INCY currently has a Forward P/E ratio of 22.87. Its industry sports an average Forward P/E of 27.7, so we one might conclude that INCY is trading at a discount comparatively.

Investors should also note that INCY has a PEG ratio of 0.71 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.51 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 78, which puts it in the top 31% 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.


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