| Stock (Symbol) | Stock Price | |
Celgene (CELG) |
$69 |
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| Data is as of | Expected to Report | Sector |
July 31, 2012 |
Oct 22 |
Healthcare |
| Sharek’s Take | ||
 Celgene (CELG) will be added to the Aggressive Growth Portfolio and will replace Body Central (BODY) in the Growth Portfolio today. Drug stocks are hot right now, and CELG has some of the best growth and possesses huge upside to its Fair Value.
CELG is one of the most undervalued growth stocks around — and has been so for almost a year. I’ve had CELG on my radar for quite sometime and was waiting for a perfect entry point, which I believe is now. First let me say CELG recently dropped when European regulators didn’t approve Celgene’s bread-and-butter drug Revlimid for additional uses. Earnings estimates dropped a bit last quarter on the news (as did the stock) and CELG missed quarterly estimates by 5 cents 2QtrsAgo. Last quarter CELG beat the street and annual estimates increased — shooting the stock higher on the news. |
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| One-Year Chart | ||
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I love the 14 P/E compared to profit Estimates of 25% coming up (bottom right). |
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| Earnings Table | ||
 Profits rose 37% last quarter as sales increased a modest 13%. Expect that kind of sales growth each quarter.
CELG beat the street by 3 cents last quarter, it had missed the previous two quarters. The stock’s outlook has turned back up. |
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| Fair Value | ||
 CELG is undervalued by 40%, the stock could go from $70 to $110 by next year. |
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| Ten-Year Chart | ||
 This is a great stock. CELG had a really high P/E back in 2004-2006 as profits were rising exponentially. Since then the stock has been basing. I think now is the time for CELG to make another big move higher. The breakout point is $80 and the stock is really worth $97. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
6 of 15 |
Celgene has huge upside and good growth. I love the 14 P/E we are paying for this 25% grower. Also, drug stocks are hot and CELG should see money flowing its way. Celgene is ranked 6 of 15 stocks in the Growth Portfolio Power Rankings. It’s 6th of 7 stocks in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
6 of 7 |
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I was wanting CELG when the stock was low and now I see I’ve missed the bottom. But honestly, estimates were falling when the stock was $60, this is a better time to get in — CELG has turned back up.