Celgene: A High-Growth Stock Trading At A Cheap Price
Celgene Corporation (CELG) - Healthcare, Biotechnology Industry
By: Helmuth Newin
Celgene declined by more than 45% over the last six months due to three major disappointments.
This decline means that this rapidly growing company trades at values that are considered very cheap.
Its healthy balance sheet, strong cash flow generation, cheap price multiples, and technical support should act as a limit to the downside.
A great pipeline of late-stage blockbusters and high growth from current products could provide a boost to its current share price.
Celgene (CELG) offers a good combination of value and growth at the current price. The company trades at 10.5 price to forward-looking earnings and the earnings are expected to grow by 19% annually until 2020 and potentially beyond. Its balance sheet and cash flow generation are very strong, which limits the size of further decline. Its shares declined by 45% over the last 6 months due to three main disappointments that I discuss in the article. In my point of view, the market fears are exaggerated and the fundamental value of Celgene remains strong and should prevail in the future.
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