| Stock (Symbol) | Stock Price | |
Celgene (CELG) |
$111 |
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| Data is as of | Expected to Report | Sector |
June 6, 2015 |
Jul 22 – Jul 27 |
Healthcare |
| Sharek’s Take | ||
 Celgene’s 2016’s profit growth looks great. According to Thomson Financial, analysts forecast qtrly profit growth of 41%, 41%, 40% and 40% in 2016. But there is a discrepancy. These EPS figures add up to $6.68. The 2016 yearly estimate is $6.18, which is “just” 30% growth. Either way 2016 should be a strong year. Last qtr management forecasted $7.50 in profits by 2017 and $12.50 in profits by 2020. A 25 P/E on both would net a stock price of $188 in 2017 and $313 in 2020. Celgene has a solid pipeline to fuel future growth, plus the added stability of being a drug company with consistent profit growth. The P/E of 23 is great considering profit growth is expected to be at least 26% a qtr the next seven qtrs. CELG is my #2 ranked stock in my Power Rankings. |
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| One-Year Chart | ||
 Stock hasn’t done anything in 2015. Sometimes CELG goes sideways for many months, often with no reason as to why. Everything here looks good. Solid. |
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| Earnings Table | ||
 Celgene has 20% revenue growth last qtr and 27% sales growth. The company buys back shares which helps EPS.The company beat by a penny, as usual. Nothing here. Annual Profit Estimates have been on a slight decline for a few qtrs now. Quarterly profit growth is expected to be in the high 20% range this year, then accelerate to 40% in 2016. |
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| Fair Value | ||
 Here is where you can see 2016 profit growth is expected to be 30% ($6.18 vs. $4.75). 40% or 30%? Still, solid. I feel CELG is worth 30x earnings and could be 67% higher next year. |
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| Ten-Year Chart | ||
 Celgene’s stock lagged its profit growth after the market crash of 2008 as investors flooded into stocks that could bounce back better on an economic recovery. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 23 |
Celgene is the perfect stock for my portfolios right now. Biotechs are hot again, and CELG is delivering consistent +26% profit growth. The P/E of 23 makes the stock undervalued, and we could see another solid move higher as 2016’s profits come into focus. |
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Aggressive Growth Portfolio
2 of 8 |
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