Celgene Corporation Stock Buy Recommendation Reiterated (CELG)

NEW YORK (TheStreet) -- Celgene Corporation (Nasdaq:CELG) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+ . The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:

• CELG's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 15.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
• CELG's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CELG has a quick ratio of 2.47, which demonstrates the ability of the company to cover short-term liquidity needs.
• Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, CELGENE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
• Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases primarily in the United States and Europe. The company has a P/E ratio of 19.9, equal to the average drugs industry P/E ratioand above the S&P 500 P/E ratio of 17.7. Celgene has a market cap of $30.02 billion and is part of the health care sector and drugs industry. Shares are up 0.8% year to date as of the close of trading on Thursday.

You can view the full Celgene Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

For more information on Celgene Corporation click any of the following:

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• Celgene Corporation Earnings

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• Celgene Corporation Growth Rates

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• Celgene Corporation Cash Flow

• Celgene Corporation Income Statement