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Learn more about Incyte Corporation’s (INCY) stock grades for Growth, Momentum and Estimate Revisions and determine whether this biotechnology & medical research stock meets your investment needs.
 

Investing in Incyte Corporation Stock

Incyte Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. Its portfolio includes compounds in various stages, ranging from preclinical to late-stage development, and commercialized products, such as JAKAFI (ruxolitinib) and ICLUSIG (ponatinib). JAKAFI (ruxolitinib) is indicated for the treatment of patients with intermediate or high risk myelofibrosis (MF) and for the treatment of patients with polycythemia vera (PV) having had an inadequate response to or are intolerant of hydroxyurea. As of December 31, 2016, the Food and Drug Administration had granted JAKAFI orphan drug status for MF, PV and essential thrombocythemia. The primary target for ICLUSIG is B Cell Receptor-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. The Company also has a portfolio of selective janus associated kinases 1 (JAK1) inhibitors.

Read on to learn how Incyte Corporation grades on certain key metrics to see whether it meets your investment needs.
 

Latest Incyte Corporation (INCY) Stock News

As of August 30, 2021, Incyte Corporation had a $16.7 billion market capitalization, compared to the Biotechnology & Medical Research median of $312.4 million, Incyte Corporation’s stock is down 12.5% in 2021, up 0.8% in the previous five trading days and down 19.0% in the past year. Currently, Incyte Corporation’s price-earnings ratio is 49.8. Incyte Corporation’s trailing 12-month revenue is $2.7 billion with a 12.4% profit margin. Year-over-year quarterly sales growth most recently was 2.6%. Analysts expect adjusted earnings to reach $3.054 per share for the current fiscal year. Incyte Corporation does not currently pay a dividend.

The Biotechnology and Medical Research sub-industry has a positive outlook, as experts expect strong drug sales growth primarily due to COVID-19. Furthermore, as conditions begin to return to normal, companies should see an increase in in-person subscription sales as more people begin to see doctors and physicians on a regular basis. As of January 2021, the Democrats have control of the House, Senate, and the Presidency by way of a slight majority. It is expected that the Biden Administration will push for lower drug prices by negotiating a price point that is agreeable to Republicans. While major biotechnology and pharmaceutical companies such as Pfizer and Moderna have already rolled out their own COVID-19 vaccines, other companies have the chance to follow suit, as new variants of the virus continue to remain a factor. Moreover, COVID-19 vaccines look to be a significant revenue stream for firms in the foreseeable future. The growth of this sub-industry hinges on how many new drug approvals there are per year. Due to the focus on COVID-19 related drugs, their has been a notable slowdown in approving drugs and vaccines not related to the pandemic. As conditions return to normal, it is expected that more drugs will be approved, thus driving respective sub-industry growth.

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Grading Incyte Corporation Stock

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors with that daunting task, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A-F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Incyte Corporation’s stock grades for value, growth and quality.

Learn more about A+ Investor here!

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Incyte Corporation’s Growth Grade

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures several dimensions of growth, including year-over-year increases in sales and earnings, long(er)-term historical sales and earnings growth rates and analyst-forecasted long-term earnings growth.

The components consider a company’s success in growing its sales, earnings per share and operating cash on a year-over-year basis for the latest reported fiscal quarter and on an annualized basis over the last five years. High rates, especially compared to the sector median, lead to better scores.

Incyte Corporation has a Growth Score of 30, which is Weak.

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Incyte Corporation’s Momentum Grade

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Incyte Corporation has a Momentum Score of 13, which is Very Weak.
 

Incyte Corporation’s Earnings Estimate Grade

Earnings estimate revision scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises-or at least continued sales growth (the exact opposite is generally true, too)

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Earnings estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Incyte Corporation has a Earnings Estimate Score of 48, which is Neutral.

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Other Incyte Corporation Grades

In addition to Growth, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor quality grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Incyte Corporation’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Incyte Corporation Stock: Bottom Line

Overall, Incyte Corporation stock has a Growth Grade of D, Momentum Grade of F and Estimate Revisions Grade of C.

Whether this is a good investment depends on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs and understand your portfolio at a more detailed level.

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