Celgene Corp – Momentum (CELG)

ZacksCelgene Corp (CELG) is fresh off the heels of a new multi-year high, rebounding sharply after shares fell with the market in early August. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock is showing some nice upward momentum.

Company Description

Celgene Corp is a biopharmaceutical company that specializes in cancer and antiinflamatory diseases. The company was founded in 1980 and has a market cap of $29 billion.

Celgene is one of the few stocks that has retraced back to its 52-week high after the recent sell off. The bullish movement comes on the heels of strong Q2 results from late July that came in ahead of expectations.

Second-Quarter Results

Revenue for the period was up 38% from last year to $1.18 billion. Earnings also looked good, coming in at 78 cents, one penny ahead of the Zacks Consensus Estimate.

The good quarter was led by the company’s top seller, REVLIMID, a cancer drug that saw sales increase 35% from last year to $795 million.

Celgene’s breast cancer drug ABRAXANE saw sales jump to $95 million. Vidaza, another bone marrow cancer drug saw sales increase 23% to $162 million.

Estimates

We saw some pretty solid movement in estimates off the good quarter, with the current year adding 15 cents to $3.25. The next-year estimate is pegged at $3.83, a bullish 18% growth projection.

Valuation

With a PEG ratio of 1.11, CELG trades at a slight premium to the benchmark of 1 for value.

12-Month Chart

On the chart, CELG has rebounded nicely after taking a dip with the market in early August. As it stands, shares are trading at a multi-year high.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.

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