| Stock (Symbol) | Stock Price | |
Celgene (CELG) |
$164 |
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| Data is as of | Expected to Report | Sector |
February 27, 2014 |
Apr 21 – Apr 25 |
Healthcare |
| Sharek’s Take | ||
 Biotech stocks are all the rage these days. The NASDAQ Biotech Index (NBI) rose 55% last year, and is up an additional 19% so far this year (through 2/26). Lots of Biotech stocks are now extremely extended, and dangerous to buy at this time on a technical basis, but Celgene (CELG) is one that is buyable here — and it’s one of the most stable Biotech stocks to own. Celgene has a deep pipeline of new drugs coming that could push profits up to $15 a share 2-3 years, and the stock’s only $164. My guess is CELG will double in price in two years. |
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| One-Year Chart | ||
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| Earnings Table | ||
 Revenue growth accelerated to 21% last quarter from only 9% two quarters ago. But profit growth slowed from 21% to 14%.CELG missed estimates by two cents last quarter. Annual Profit Estimates, 2015 estimates got a big boost and I see the first 2016 estimate is $12.31 (plenty of time for this to get to $15. Quarterly profit growth looks good, CELG should grow profits at least 20% this year. |
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| Fair Value | ||
 I was lucky to pick up CELG when the P/E was in the low-teens, as it was under-loved when the economy rebounded and investors went into economically sensitive stocks. Now I think the P/E should be 27 as this business has good momentum and stability. If CELG makes $15 in 2016 and gets a 22 P/E we would have our double. |
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| Ten-Year Chart | ||
 You can clearly see the 2012-2013 run-up in the ten-year chart. Now the current base makes me feel more confident in these shares. This would have been a great stock to pick up a decade ago. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
14 of 27 |
Although I feel Celgene can double in two years, there are other stocks with better momentum right now. These other names have profit’s growing at double the rate of CELG’s and have to be ranked higher in the Power Rankings. |
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Aggressive Growth Portfolio
N/A |
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This one-year chart looks good, showing CELG sitting in a safe base now. 