Shares of Regeneron (REGN) are moving so fast its hard to get in. I researched the stock a bit last week. It was $282. The data was used to build the charts and tables below. Today REGN closed at $319, up 13% since Thursday. REGN reported earnings yesterday, and sales of Regeneron’s blockbuster drug Eylea were above expectations.
The problem I’m having with this stock is its rich — selling for 69 times this year’s earnings right now. Let’s look at the data and I’ll talk more.
One Year Chart
This one year chart was done when REGN was $282 last week, and the data is 2013 Q4. I had trouble getting prior years Annual Profits because the annual reports had numbers different from my other sources. Sometimes every source had a different number. I like consistency in reporting, REGN doesn’t give that.
Profit growth is all over the map, with sales of Eylea affected by year-end inventory stocking and the anticipation of Eylea being approved for diabetic macular edema late this year.
Fair Value
This is a hard stock to value. If I put a P/E of 50 on REGN I get a $268 fair value, and a $390 fair value next year. But I’m not confident om my predictions, as I don’t have a grasp of what the P/E should be and also estimates are changing. Just this week 2014’s estimates fell from $5.36 to $4.65 — yet the stock popped.
Sharek’s Take
Regeneron is clearly one of the hottest stocks in the market. It’s doubled in the past year and didn’t buckle in the face of a stock market correction earlier this month. Momentum is high right now and the stock’s getting a lot of airtime on TV and writeups in news publications. I’m not one to follow the crowd and don’t want to chase this stock like a lemming.
View the Earnings Table here. View the Profit History here.View the Ten Year Chart here.
