Trade-Ideas: Celgene (CELG) Is Today's Post-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Celgene ( CELG) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Celgene as such a stock due to the following factors:

  • CELG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $469.6 million.
  • CELG is down 2% today from today's close.

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More details on CELG:

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases in the United States and Internationally. CELG has a PE ratio of 41. Currently there are 13 analysts that rate Celgene a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Celgene has been 4.8 million shares per day over the past 30 days. Celgene has a market cap of $94.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.91 and a short float of 1.8% with 3.19 days to cover. Shares are up 5.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Celgene as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 160.60% and other important driving factors, this stock has surged by 37.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CELG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CELGENE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CELGENE CORP increased its bottom line by earning $2.40 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($4.75 versus $2.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 157.0% when compared to the same quarter one year prior, rising from $279.70 million to $718.90 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 22.1%. Since the same quarter one year prior, revenues rose by 20.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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.

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