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Underappreciated

Stock (Symbol) Stock Price

Celgene (CELG)

$76

Data is as of Expected to Report Sector

November 12, 2012

Jan 21

Healthcare

Sharek’s Take
David SharekCelgene continues to be one of the stock market’s most under appreciated stocks. CELG grew profits 26% last quarter — the slowest growth in more than a year — yet the stock is sitting with a P/E of only 15. The company’s got a full pipeline of drugs its developing, and has an estimated Long Term Growth Rate of 23%. This is a growth stock but with enough safety for conservative investors.
Ten-Year Chart
CELG_2012_Q4_10yrCELG started to make its big move in March of 2005. This was a hard one to get into because the stock was $13-$17 that month and the company only made $0.18 that year. Investors looked ahead to 2006 when they got in. Since the stock went from $15 to $66 (Oct 07), it needed time to base and digest gains. Now CELG is undervalued and ready for another run. 
Profit History
CELG_2012_Q4_PHHere in the Profit History we see CELG had a HUGE P/E from 2003-2006. Then the stock based and the P/E fell even though profits kept climbing. Now I feel CELG is worth 20 times earnings, this stock has solid upside through 2014.
Power Ranking Bottom Line
Conservative Portfolio

3 of 18

Celgene is a combination of a growth stock and a conservative stock, and is a perfect addition to most any portfolio. CELG has solid profit growth, a low P/E and the stock’s been moving higher. Celgene is ranked #3 overall in the Conservative Growth Portfolio Power Rankings.

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