Buy or Sell Regeneron Stock Before Earnings?

by Rob Otman
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Regeneron (Nasdaq: REGN) is a large cap company that operates within the biotechnology industry. Its market cap is $43 billion today, and the total one-year return is 14.56% for shareholders.

Regeneron stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question, we've turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.

Our system looks at six key metrics...

Earnings-per-Share (EPS) Growth: Regeneron reported a recent EPS growth rate of 94.68%. That's above the biotechnology industry average of 73.72%. That's a great sign. Regeneron's earnings growth is outpacing that of its competitors.

Price-to-Earnings (P/E): The average price-to-earnings ratio of the biotechnology industry is 65.71. And Regeneron's ratio comes in at 39.19. It's trading at a better value than many of its competitors.

Debt-to-Equity The debt-to-equity ratio for Regeneron stock is 12.7%. That's below the biotechnology industry average of 30.48%. The company is less leveraged.

Free Cash Flow per Share Growth Regeneron's FCF has been higher than that of its competitors over the last year. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.

Profit Margins The profit margin of Regeneron comes in at 26.38% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Regeneron's profit margin is above the biotechnology average of -172.53%. So that's a positive indicator for investors.

Return on Equity Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Regeneron is 24.06%, and that's above its industry average ROE of -17.46%.

Regeneron stock passes six of our six key metrics today. That's why our Investment U Stock Grader rates it as a Strong Buy.

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Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

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