| Stock (Symbol) | Stock Price | |
Regeneron (REGN) |
$538 |
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| Data is as of | Expected to Report | Sector |
September 28, 2015 |
Nov 2 – Nov 6 |
Healthcare |
| Sharek’s Take | ||
 The Biotechnology sector is getting hit today, and I will use the weakness to pick up a top stock on my radar. Regeneron (REGN) is down to around $450 today — down 16% from the $538 price when these charts were done 8/28 — and I will add it to the Growth Portfolio and Aggressive Growth Portfolio. I recently wrote about REGN and said Buy Regeneron if it Gets Down to… $426 to $487. Well, here’s our opportunity. The big story with Regeneron is it has one blockbuster drug with Eylea and another coming in Praluent. Analysts predict REGN will grow profits from $12.18 this year to $18.62 two years from now. A 50% gain in profits in two years should keep REGN as a top-tier growth stock. I think the stock is reasonable here at 37x earnings. My 2016 Fair Value is $589 and 31% higher than the current quote. |
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| One-Year Chart | ||
 REGN has been a hot stock for more than three years now, and I’ve missed numerous opportunities to get us in. Why? The stock’s P/E is usually high. |
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| Earnings Table | ||
 Profits grew 17% last qtr on a 50% sales increase.The company beat the street by 11 cents last qtr, the second straight double-digit qtr. Annual Profit Estimates have been rising but the apple of my eye is the $18 estimate for 2017. Quarterly profit growth estimates skied higher this qtr. |
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| Fair Value | ||
 REGN seems to be worth 40x earnings, and that would take the stock close to $600 by next year. Forty times the $18.62 2017 estimate would mean almost a $750 stock in two years. |
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| Ten-Year Chart | ||
 Regeneron is one of the best stocks of our generation. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
8 of 27 |
I’m excited with the opportunity to pick up shares of Regeneron on a dip, as the current market situation has creamed Biotech stocks in general (probably ETF related selling). I feel this is a core holding for growth stock investors, a stock that could go up 50% in two years. REGN will rank 8th of 27 stocks in the Growth Portfolio Power Rankings and 7th of 14 in the Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
7 of 14 |
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