Exelixis (EXEL): market overreacted? What's the stock forecast?

3:47 pm ET, 10 May 2018

Exelixis, Inc. (NASDAQ: EXEL) stock is down almost 15% today after the company reported that its colorectal cancer drug that was tested in combination with Roche's Tecentriq, and the combo failed study goals. What is the EXEL price forecast?

In response to this failure, some analysts cut the EXEL price target, though not significantly.  RBC and Suntrust Robinson cut the target to $35 and $36, respectively.  

The market might have overreacted to the news.  A 15% decline is Exelixis' worst single-day loss since 2017.  The stock price now is below June 2017 levels. 

Analysts remain committed to the biotech stock. Of the 12 brokerages covering EXEL, eight rate it a "strong buy", while the rest rate it a "hold".  See more details below from Finstead Research. 

Traders have been betting bullishly in recent weeks.  At the options marketplaces, speculators have bought to open 4,828 calls on EXEL stock in the last 10 days, compared to just 808 puts.  Bulls have outnumbers the bears by a 6-to-1 ratio.

Over the last year, EXEL returned -12.75%. This return is lower than Biotechnology sector (46.86%), Healthcare industry (34.43%), and S&P 500 (12.43%) returns.

For the latest news on EXEL, please consult Finstead (type "EXEL news", "EXEL price" or "EXEL price target" to get the latest). 

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Exelixis, Inc. (EXEL) Stock Guide

Updated at: 7:05 am ET, 12 Jul 2020

Before we start: if you're looking for EXEL stock price, you can quickly find it out by visiting Finny and typing "EXEL quote". If you're looking for a quick scoop on EXEL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "EXEL". You'll get all this info in one place. Or you can just type "EXEL news" to get the latest stock news.

Looking to buy or sell Exelixis, Inc. (EXEL)? Interested in getting the full scoop on EXEL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this EXEL stock guide, we'll address key questions about EXEL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are EXEL earnings?
2. When is EXEL earnings date?
3. What is EXEL stock forecast (i.e., prediction)?
4. EXEL buy or sell? What is EXEL Finny Score?
5. What are the reasons to buy EXEL? Why should I buy EXEL stock?
6. What are the reasons to sell EXEL? Why should I sell EXEL stock?
7. What are EXEL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are EXEL earnings?

EXEL trailing 12-month earnings per share (EPS) is $0.93.

2. When is EXEL earnings date?

EXEL earnings date is July 29, 2020.

Analyst Predictions

3. What is EXEL stock forecast (i.e., prediction)?

Based on EXEL analyst price targets, EXEL stock forecast is $26.69 (for a year from now). That means the average analyst price target for EXEL stock is $26.69. The prediction is based on 10 analyst estimates.

The low price target for EXEL is $20.00, while the high price target is $35.00.

EXEL analyst rating is Buy.

Analysis

4. EXEL buy or sell? What is EXEL Finny Score?

#{finnyScore:73}Our quantitative analysis shows 8 reasons to buy and 3 reasons to sell EXEL, resulting in Finny Score of 73.

5. What are the reasons to buy EXEL? Why should I buy EXEL stock?

Here are the reasons to buy EXEL stock:

  • Cabozantinib has shown activity in a variety of cancers, and label expansion could significantly expand the drug’s market opportunity.
  • Its partnerships allow Exelixis to reap benefits from drug candidate progression with limited development cost obligations.
  • Exelixis' partnerships with larger players such as Roche/Genentech, Bristol, and Merck help fund drug development and lend credibility to the firm's potential.
  • EXEL quarterly revenue growth was 5.30%, higher than the industry and sector average revenue growth (0.52% and 1.16%, respectively). See EXEL revenue growth chart.
  • EXEL profitability is improving. The YoY profit margin change was 70.76 percentage points. See EXEL profitability chart.
  • EXEL Price/Book ratio is 4.33, which is low compared to its industry peers’ P/B ratios. See EXEL forward Price/Book ratio chart.
  • EXEL Price/Sales ratio is 7.75, which is low compared to its industry peers’ P/S ratios. See EXEL forward Price/Sales ratio chart.
  • EXEL average analyst rating is Buy. See EXEL analyst rating chart.
  • EXEL cash to debt ratio is 19.93, higher than the average industry (0.16) and sector (0.16) cash to debt ratio. See EXEL cash to debt chart.
  • EXEL Enterprise Value/Revenue multiple is 7.22, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See EXEL Enterprise Value/Revenue chart.
  • EXEL Enterprise Value/EBITDA multiple is 20.33, which is low compared to its industry peers’ Enterprise Value/EBITDA ratios. See EXEL Enterprise Value/EBITDA chart.

6. What are the reasons to sell EXEL? Why should I sell EXEL stock?

Let's look at the reasons to sell EXEL stock (i.e., the bear case):

  • Exelixis has yet to hit sustainable levels of profitability, and its future hinges on the success of its cabozantinib franchise, which competes in crowded oncologic indications.
  • The failure of cabozantinib in the prostate cancer indication highlights the risks associated with Exelixis' key oncology program.
  • Exelixis has prioritized cabozantinib's label expansion at the expense of its early-stage pipeline, which could curb the company’s long-term potential.
  • EXEL forward P/E ratio is 26.34, which is high compared to its industry peers’ P/E ratios. See EXEL forward P/E ratio chart.
  • EXEL short share of float is 6.07%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See EXEL short share of float chart.
  • EXEL short interest (days to cover the shorts) ratio is 3.52. The stock garners more short interest than the average industry, sector or S&P 500 stock. See EXEL short interest ratio chart.

Key Stats

7. What are EXEL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for EXEL:

Metrics EXEL
Price $23.01
Average Price Target / Upside $26.69 / 15.99%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Biotechnology
Sector Healthcare
Number of Employees 484
Market Cap $7.59B
Forward P/E Ratio 26.34
Price/Book Ratio 7.75
Revenue (TTM) $979.2M
YoY Quarterly Revenue Growth 5.30%
Profit Margin 30.01%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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