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Trending Higher

Stock (Symbol) Stock Price

Celgene (CELG)

$76

Data is as of Expected to Report Sector

November 12, 2012

Jan 21

Healthcare

Sharek’s Take
David SharekCelgene (CELG) was on the warpath during the 2nd half of 2012. The only thing slowing it down was a stock market correction. But now the market’s correction is done and CELG is almost back towards its highs while the market has some catching up to do. That tells me Celgene is a market leader.
 
This stock has a lot going for it. 25% profit growth, a 14 P/E, a safe sector (drugs). I expect CELG to continue its path higher into next year.
One-Year Chart

I’m very pleased with the look of this one-year chart. It’s all green, no red. As I stated last quarter, I love the 14 P/E compared to profit Estimates of 25% coming up (bottom right). I see this stock headed to $100.

Earnings Table
Profits increased 26% last quarter on a 14% rise in sales. You can expect teen revenue growth with CELG. Profits should grow faster.
  
CELG beat by 2 cents, it was the second beat in a row following two misses.
 
Annual Profit Estimates increased. I really like the fact 2013 estimates jumped after they dropped last quarter.
 
Quarterly estimates look good for the next two qtrs, but I’ll have to keep an eye on the following quarters — growth could slow.
I don’t know if this will transpire, but we need some quarterly increases. We didn’t get that this time.
Fair Value
CELG has excellent upside and is a conservative investment.
Ten-Year Chart
Both the one-year and ten-year charts look great. This is certainly one of my top stocks to own. CELG broke resistance twice this year and there’s little doubt in my mind it will do it again very shortly. Notice profit growth is expected to be a healthy 29% this year.
Power Ranking Bottom Line
Growth Portfolio

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Celgene’s been trending higher and from here it looks like the trend is our friend. This stock is putting out 25% profit growth with a P/E of only 14. There’s huge upside here. The only negative is it looks like profit growth could slow to the mid-teens in mid 2013. I’ll keep an eye on this.
 
Celgene is ranked 5 of 17 stocks in the Growth Portfolio Power Rankings. I like the safety CELG provides this balanced portfolio. It’s 7th of 9 stocks in the Aggressive Growth Portfolio, because this portfolio is geared for more aggressive investors.

Aggressive Growth Portfolio

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