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Regeneron (REGN) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Regeneron (REGN) closed at $449.53 in the latest trading session, marking a -1.34% move from the prior day. This move lagged the S&P 500's daily gain of 9.38%. At the same time, the Dow added 11.37%, and the tech-heavy Nasdaq gained 8.12%.

Coming into today, shares of the biopharmaceutical company had gained 7.11% in the past month. In that same time, the Medical sector lost 27.39%, while the S&P 500 lost 32.94%.

Investors will be hoping for strength from REGN as it approaches its next earnings release. In that report, analysts expect REGN to post earnings of $6.29 per share. This would mark year-over-year growth of 41.35%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 24.22% from the year-ago period.

REGN's full-year Zacks Consensus Estimates are calling for earnings of $29.21 per share and revenue of $8.90 billion. These results would represent year-over-year changes of +18.4% and +13.15%, respectively.

Investors might also notice recent changes to analyst estimates for REGN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.09% higher within the past month. REGN is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note REGN's current valuation metrics, including its Forward P/E ratio of 15.6. This represents a discount compared to its industry's average Forward P/E of 25.06.

It is also worth noting that REGN currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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