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Exelixis (EXEL) Gains But Lags Market: What You Should Know

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Exelixis (EXEL - Free Report) closed the most recent trading day at $17.60, moving +0.69% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 2.1%.

Heading into today, shares of the drug developer had lost 0.43% over the past month, lagging the Medical sector's gain of 0.34% and the S&P 500's gain of 0.54% in that time.

Wall Street will be looking for positivity from EXEL as it approaches its next earnings report date. This is expected to be February 26, 2020. On that day, EXEL is projected to report earnings of $0.15 per share, which would represent a year-over-year decline of 59.46%. Meanwhile, our latest consensus estimate is calling for revenue of $240.92 million, up 5.39% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for EXEL. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 22.5% lower. EXEL is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note EXEL's current valuation metrics, including its Forward P/E ratio of 29.25. Its industry sports an average Forward P/E of 29.25, so we one might conclude that EXEL is trading at a no noticeable deviation comparatively.

It is also worth noting that EXEL currently has a PEG ratio of 3.56. 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. EXEL's industry had an average PEG ratio of 1.7 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 74, which puts it in the top 30% 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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