A Fresh Look at Exelixis (EXEL) Valuation After Strong Earnings and New $750 Million Buyback

Exelixis (EXEL) just turned heads with its latest earnings report, showing clear jumps in both revenue and net income compared to last year. In addition to higher annual guidance, the company revealed a new $750 million buyback plan.

See our latest analysis for Exelixis.

Exelixis has been on a tear, with the share price up nearly 25% year-to-date and a robust 1-year total shareholder return of 21% reflecting momentum tied to strong earnings, higher guidance, and a hefty $750 million buyback. Brief leadership changes and active participation in industry conferences signal a company that is building confidence, not losing it. For investors, both recent gains and the stellar 3-year total return of 150% suggest Exelixis is firmly on the market’s radar.

If you’re interested in discovering what other healthcare growth stories are unfolding, why not check out the landscape using our healthcare stocks discovery tool: See the full list for free.

With shares sitting near all-time highs and strong results fueling optimism, investors are left asking whether Exelixis is still undervalued or if all that future growth is already priced in, leaving little room for new buyers.

Most Popular Narrative: 3.9% Undervalued

With Exelixis closing at $42.35 and the narrative’s fair value set at $44.06, the stock sits just below what analysts project. The stage is set for a debate over whether future growth and pipeline catalysts can truly propel further gains.

The recent introduction and rapid uptake of CABOMETYX in neuroendocrine tumors, combined with its continued strength and market leadership in renal cell carcinoma, signals an expanding patient base in tumor types with high unmet need. This is poised to drive strong, durable revenue growth as aging populations and rising cancer incidence increase long-term demand for oncology therapeutics.

Read the complete narrative.

There's a bold set of assumptions backing this tiny “undervalued” edge. Profits are projected to soar, margins are expected to widen, and analyst disagreements bubble beneath the surface. What makes this narrative tick? Find out which bullish forecasts and growth levers underpin the fair value estimation—there may be surprises lurking in the fine print.

Result: Fair Value of $44.06 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, future revenue remains heavily reliant on Cabometyx. Rising competition could threaten Exelixis' momentum if growth falters or margins compress.

Find out about the key risks to this Exelixis narrative.

Build Your Own Exelixis Narrative

If you want a different perspective or would rather dig into the details yourself, try building your own Exelixis story in just a few minutes by using Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Exelixis.

Looking for More Investment Ideas?

Set yourself apart by uncovering unique ways to grow your portfolio. Miss out now and you could overlook tomorrow’s most exciting opportunities simply waiting to be found.

• Unlock resilient monthly income when you review these 15 dividend stocks with yields > 3% with strong yields and reliable payout histories.
• Catch industry giants and upstarts shaping our AI-powered future by checking out these 27 AI penny stocks filled with promising tech disruptors.
• Target undiscovered value with these 882 undervalued stocks based on cash flows presenting stocks trading below intrinsic cash flow estimates right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com