In the latest trading session, Regeneron (REGN) closed at $714.57, marking a +0.65% move from the previous day. This change outpaced the S&P 500’s 0.34% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 8.98%.
Prior to today’s trading, shares of the biopharmaceutical company had lost 5.34% over the past month. This has lagged the Medical sector’s loss of 0.28% and the S&P 500’s gain of 1% in that time.
Regeneron will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2023. On that day, Regeneron is projected to report earnings of $9.91 per share, which would represent a year-over-year decline of 58.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.21 billion, down 35.24% from the year-ago period.
Any recent changes to analyst estimates for Regeneron should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.57% higher. Regeneron is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Regeneron has a Forward P/E ratio of 17.07 right now. Its industry sports an average Forward P/E of 19.88, so we one might conclude that Regeneron is trading at a discount comparatively.
Meanwhile, REGN’s PEG ratio is currently 1.9. 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 1.6 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 60, putting it in the top 24% 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.
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