investing

The Best Stock in New Jersey: Celgene

We analyzed publicly traded companies based in the Garden State to identify the best stock in New Jersey to buy now.

We scoured the nation to identify the best stock in every state. Celgene (symbol CELG) is the publicly traded company we picked in New Jersey. The company headquarters is located in Summit.

A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.

Celgene by the Numbers

  • Headquarters: Summit
  • Share price: $133.68
  • Market value: $104.4 billion
  • Price-earnings ratio: 17

(Prices and data are as of June 22, 2017)

Celgene is a biopharmaceutical company that develops and markets treatments for cancer and immunological diseases. Its blood-cancer drug Revlimid, at $6.9 billion in annual sales, accounted for 66% of overall revenues last year. The drug’s patents don’t expire until 2027, and the first generic version isn’t expected to hit the market until 2022. Due to increasing demand and little competition, Revlimid sales should hit $8.2 billion this year, says CFRA analyst Jeffrey Loo – a 19% annual gain that will help drive overall sales growth estimated at 18%

But Celgene also has a robust bench, which includes multiple myeloma drug Pomalyst and psoriasis drug Otezla. Also, there are 19 late-stage drug trials in the works over the next two years, and Celgene has more than $8 billion in cash on the balance sheet that analysts expect the firm to use to acquire promising smaller drug companies. Celgene executives say the company can achieve annual earnings and sales growth of 17% to 22% through 2020, targets that Loo believes are achievable. He rates the stock a “strong buy” with a 12-month price target of $156.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
4 Strategies to Reduce Taxes in Retirement
retirement planning

4 Strategies to Reduce Taxes in Retirement

Don’t let the possibility of higher taxes in the future sink your retirement income plan. Consider these four ways to help manage your taxes, keeping …
May 31, 2021
12 Housing Stocks to Ride the Red-Hot Market
investing

12 Housing Stocks to Ride the Red-Hot Market

The U.S. has a housing shortage and a love affair with home improvement, both of which could create tailwinds for this group of housing stocks.
June 8, 2021

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Is the Stock Market Closed on Memorial Day 2021?
Markets

Is the Stock Market Closed on Memorial Day 2021?

The stock market gets a full day off for Memorial Day. The bond market gets Monday off too, not to mention an early close ahead of the holiday weekend…
May 30, 2021
What Time Is the Stock Market Open Today?
Markets

What Time Is the Stock Market Open Today?

When does the stock market open? While the market does have regular hours, trading doesn't stop when the major exchanges close.
May 28, 2021
Bonds: Be Choosy for the Rest of 2021
Investing for Income

Bonds: Be Choosy for the Rest of 2021

Enough good things are happening in the economy and some fixed-income sectors (perhaps not T-bonds) to imply better second-half prospects.
May 26, 2021