Biotech behemoth Genentech (DNA) is out with earnings tomorrow. The stock was Tim’s final trade last night, but what do the other guys think ahead of its earnings?
Tim says everyone is expecting a calmer quarter this time around. Genentech has managed Wall Street expectations, predicting numbers on the flat side. And while the numbers are important, volatility in the options is down and Tim would still recommend it here as a good buying point, on the assumption the rest of the year will be stronger.
Guy notes the company will average 27% earnings growth in the next four years, and it only trades at 28 times earnings. He’s a buyer. And after looking at the long-term chart for Genentech, Jeff is going long too. The guys are following the Risk Doctor with this stock, and the consensus is bullish.