Going Long on Regeneron (REGN)
Regeneron Pharmaceuticals (REGN) is a stock that has seen an appreciation in its stock price since the beginning of the year. This trading idea focuses on the company's financial performance and its potential for future growth.
Key Metrics:
Gross Profit Ratio: Regeneron's gross profit ratio currently stands at 87.18%. This metric measures the efficiency and effectiveness of the company by dividing its gross profit by its total net sales.
Research and Development (R&D) Expenditures: Regeneron invests $1 billion annually in R&D. This indicates the company's commitment to innovation and the development of new products.
EBITDA: The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) is currently $1.20 billion. This metric provides insights into the company's operating performance.
Debt Ratio: Regeneron's debt ratio, which is the ratio of total debts to total assets, stands at 8.81. This indicates a relatively low level of debt compared to its assets.
Trading Strategy: This trading idea focuses on companies with a moderate investment horizon and a somewhat high risk tolerance. The strategy is to buy the asset, REGN.
Idea Core Logic: This strategy looks for companies that have a high gross profit ratio, indicating efficient and effective performance. It also focuses on companies that invest significantly in R&D, as this suggests a commitment to innovation and future growth. Additionally, companies with a high EBITDA and a low debt ratio are preferred, as they indicate strong financial performance and a healthy balance sheet.
In the case of Regeneron Pharmaceuticals, it meets all these criteria with a gross profit ratio of 87.18%, 1 billion annual R&D expenditures, 1.20 billion EBITDA, and a debt ratio of 8.81. These factors suggest that Regeneron has a strong financial position and potential for future growth, making it an attractive investment opportunity.
Technical Outlook
Regeneron (REGN) bulls are looking to push the stock past a key resistance level at $759.49 as the next upside milestone if bulls maintain their dominance. Technical analysis indicates that a strong downtrend may be forthcoming with short positions being favored when the Commodity Channel Index (CCI) falls below -100.
In today's session, Regeneron continued its 12-day uptrend by gaining 0.29%. The stock climbed to $779.89, showing positive momentum.
In terms of returns, Regeneron has outperformed the Nasdaq by 0.88% so far this year. It currently has a market cap of $83.25 billion.
There were 382,219 shares traded on the day, slightly below the average daily volume of 392,139 shares.
Regeneron recently released its earnings figures, reporting 3.16 billion in revenue and earnings per share of 10.24. Market analysts had forecasted revenues of 3 billion and an EPS of 9.92. For the next earnings report, Regeneron is expected to announce revenues of 3.22 billion and an EPS of 10.8.
Technical analysis indicates a possible new, strong downtrend for Regeneron. The Commodity Channel Index (CCI) indicator is below -100, suggesting that the market price is unusually low and below its moving average. A bullish engulfing candlestick pattern has also appeared on Regeneron's price chart.
Key Metrics:
Gross Profit Ratio: Regeneron's gross profit ratio currently stands at 87.18%. This metric measures the efficiency and effectiveness of the company by dividing its gross profit by its total net sales.
Research and Development (R&D) Expenditures: Regeneron invests $1 billion annually in R&D. This indicates the company's commitment to innovation and the development of new products.
EBITDA: The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) is currently $1.20 billion. This metric provides insights into the company's operating performance.
Debt Ratio: Regeneron's debt ratio, which is the ratio of total debts to total assets, stands at 8.81. This indicates a relatively low level of debt compared to its assets.
Trading Strategy: This trading idea focuses on companies with a moderate investment horizon and a somewhat high risk tolerance. The strategy is to buy the asset, REGN.
Idea Core Logic: This strategy looks for companies that have a high gross profit ratio, indicating efficient and effective performance. It also focuses on companies that invest significantly in R&D, as this suggests a commitment to innovation and future growth. Additionally, companies with a high EBITDA and a low debt ratio are preferred, as they indicate strong financial performance and a healthy balance sheet.
In the case of Regeneron Pharmaceuticals, it meets all these criteria with a gross profit ratio of 87.18%, 1 billion annual R&D expenditures, 1.20 billion EBITDA, and a debt ratio of 8.81. These factors suggest that Regeneron has a strong financial position and potential for future growth, making it an attractive investment opportunity.
Technical Outlook
Regeneron (REGN) bulls are looking to push the stock past a key resistance level at $759.49 as the next upside milestone if bulls maintain their dominance. Technical analysis indicates that a strong downtrend may be forthcoming with short positions being favored when the Commodity Channel Index (CCI) falls below -100.
In today's session, Regeneron continued its 12-day uptrend by gaining 0.29%. The stock climbed to $779.89, showing positive momentum.
In terms of returns, Regeneron has outperformed the Nasdaq by 0.88% so far this year. It currently has a market cap of $83.25 billion.
There were 382,219 shares traded on the day, slightly below the average daily volume of 392,139 shares.
Regeneron recently released its earnings figures, reporting 3.16 billion in revenue and earnings per share of 10.24. Market analysts had forecasted revenues of 3 billion and an EPS of 9.92. For the next earnings report, Regeneron is expected to announce revenues of 3.22 billion and an EPS of 10.8.
Technical analysis indicates a possible new, strong downtrend for Regeneron. The Commodity Channel Index (CCI) indicator is below -100, suggesting that the market price is unusually low and below its moving average. A bullish engulfing candlestick pattern has also appeared on Regeneron's price chart.
Comment:
Long idea correctly picked. Take profit taken at 840 (a recent top) after which bullish sentiment collapsed.