| Stock (Symbol) | Stock Price | |
Celgene (CELG) |
$105 |
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| Data is as of | Expected to Report | Sector |
October 30, 2014 |
Jan 29 |
Healthcare |
| Sharek’s Take | ||
 Celgene is one of my top stocks for 2015. Next year, Celgene’s top-selling drug Revlimid is expanding use by getting approval for recently diagnosed multiple-myeloma patients, and this should give the company a revenue jolt. CELG has a 28 P/E on 2014 estimates, but it sells for just 22x 2015 profit estimates, even though profits are expected to climb 32% next year. This stock has huge upside in addition to certainty & consistency. I feel CELG will become more appreciated in 2015 as some of the top Internet stocks are expected to have slower profit growth, and I anticipate CELG could rise from $105 to $146 in a year. |
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| One-Year Chart | ||
 This stock broke out the day it reported earnings. That’s such a good sign. And look at how profit growth is expected to escalate over the next couple of qtrs. This chart is all green. |
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| Earnings Table | ||
 Sales growth was 18% last quarter, and that’s usually what sales grow at. Profit growth was 24%, up from 18% 2QrtsAgo.CELG only beat by 3 cents, this company isn’t big ion beating the street by a lot. Annual Profit Estimates are around what they were last quarter. Quarterly profit growth is expected to accelerate next quarter, and there’s a chance profit growth could average 30% over the next four qtrs. |
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| Fair Value | ||
 This stock has had an abnormally low P/E since 2012 as investors have focused on high growth names. But now I anticipate profit growth slowing with some big Internet stocks next year and that should bring more investors CELG’s way. |
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| Ten-Year Chart | ||
 CELG looks to be extended, but that’s only because the stock was too low during the 2008-2011 time frame. Note profit growth has averaged 48% the per year past decade while the stock’s gone up 40% per year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
6 of 24 |
Celgene has been delivering above average profit growth for years, but I feel 2015 will prove to be a banner year for the stock as money should flow out of Internet stocks which are set to deliver slower growth. |
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Aggressive Growth Portfolio
6 of 12 |
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