| Stock (Symbol) | Stock Price | |
Celgene (CELG) |
$87 |
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| Data is as of | Expected to Report | Sector |
August 6, 2014 |
Oct 23 |
Healthcare |
| Sharek’s Take | ||
 Celgene just broke out and is on its way to $100. The company really didn’t do anything special to earn the breakout, it was more of a sector move. Biotechs have been weak for a few months, and are now starting to perk up again. Celgene’s biggest drug Revlimid is expanding use by getting approval for recently diagnosed multiple-myeloma patients, and this should give the company a big boost in revenue next year. Profits are also expecting a big boost of 33% next year. Stocks that pass $90 usually go straight to $100, and CELG is looking like it’s doing so. Further out, my 2015 Fair Value is $132, which is 27 times earnings. |
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| One-Year Chart | ||
 This one-year chart shows a perfect cup-and-handle, which often leads to big stock gains. The move started with the big move down from $83 to $68, then the rally back up to $90. The most important leg is the last one, which must tilt down to shake out weak investors who grow tired of losing a dollar-a-day (so the stock is free to soar). This just happened last month. This data was compiled 8/6 and today (8/20) CELG is already $93. |
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| Earnings Table | ||
 Sales growth was 18% last quarter, and that’s par for the course for Celgene. Profit growth was also 18%.CELG beat the street by a penny last quarter and usually comes within a coupe cents of street estimates. Annual Profit Estimates continue to edge higher each quarter. Quarterly profit growth is expected to be in the low 20% range for much of the next year. |
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| Fair Value | ||
 Although CELG hasn’t gotten a median annual P/E of 27 since 2007, but I think the company still deserves that valuation. A slightly higher P/E combined with a 33% boost in profits next year gives this stock huge upside. |
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| Ten-Year Chart | ||
 Celgene’s been remarkable the past few years, and the 33% profit growth expected next year should be even more fuel for this flame. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
10 of 25 |
Celgene has broken out and is now on the road higher. The stock’s timely and has huge upside. The only issue is CELG is only expected to grow profits 25% a qtr the next 4 qtrs and I have many faster growing companies high up in my Power Rankings. |
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Aggressive Growth Portfolio
N/A |
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