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Regeneron (REGN) Gains But Lags Market: What You Should Know

Regeneron (REGN) closed at $821.67 in the latest trading session, marking a +1.25% move from the prior day. The stock lagged the S&P 500's daily gain of 1.44%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 5.21%.

Prior to today's trading, shares of the biopharmaceutical company had gained 5.54% over the past month. This has outpaced the Medical sector's gain of 2.17% and the S&P 500's gain of 2.28% in that time.

Investors will be hoping for strength from Regeneron as it approaches its next earnings release. The company is expected to report EPS of $9.49, down 17.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.94 billion, down 1.01% from the prior-year quarter.

REGN's full-year Zacks Consensus Estimates are calling for earnings of $40.85 per share and revenue of $12.48 billion. These results would represent year-over-year changes of -9.18% and +2.53%, respectively.

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Investors might also notice recent changes to analyst estimates for Regeneron. These revisions help to show the ever-changing nature of near-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. Regeneron is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Regeneron is currently trading at a Forward P/E ratio of 19.87. This valuation marks a discount compared to its industry's average Forward P/E of 20.56.

Also, we should mention that REGN has a PEG ratio of 1.99. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.95 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report

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