In the latest trading session, Incyte (INCY) closed at $88.39, marking a -0.44% move from the previous day. This move lagged the S&P 500’s daily of 0%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the specialty drugmaker had lost 5.67% over the past month, lagging the Medical sector’s gain of 4.21% and the S&P 500’s gain of 3.37% in that time.
Wall Street will be looking for positivity from INCY as it approaches its next earnings report date. In that report, analysts expect INCY to post earnings of $0.58 per share. This would mark year-over-year growth of 45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $569.75 million, up 21.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.77 per share and revenue of $2.15 billion. These totals would mark changes of +166.35% and +19.4%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for INCY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. INCY is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, INCY is currently trading at a Forward P/E ratio of 32.05. This represents a premium compared to its industry’s average Forward P/E of 25.39.
Also, we should mention that INCY has a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Medical – Biomedical and Genetics industry currently had an average PEG ratio of 1.86 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.