Exelixis (EXEL): Assessing the Stock’s Valuation After Its Recent Strong Run

Exelixis (EXEL) shares have delivered a roughly 10% gain over the past month, continuing a trend that has caught the interest of long-term investors. Recent returns stand out when compared to broader biotech performance in the same period.

See our latest analysis for Exelixis.

Exelixis isn’t just enjoying a strong month. The stock’s 1-month share price return of nearly 10% and a year-to-date gain above 25% point to real momentum building. The 1-year total shareholder return of 19% and an impressive 3-year figure above 150% further highlight the company’s sustained appeal for patient investors.

If the recent run-up in Exelixis has sparked your curiosity, this could be the perfect moment to broaden your search and discover See the full list for free.

With shares running higher and the company posting strong growth in revenue and profits, the pressing question is whether Exelixis is still trading below its fair value or if the recent surge already reflects future prospects. Is there more upside, or has the market caught up to the story?

Most Popular Narrative: 4.7% Undervalued

With Exelixis shares closing at $42.51 and the most widely followed narrative assigning a fair value of $44.61, the current market price sits just below the consensus estimate. The story behind this figure is rooted in transformative shifts expected across Exelixis' portfolio and pipeline.

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.

Curious which key growth levers justify this valuation? The boldest assumptions hinge on sustained profit expansion and shifting profit multiples. Find out what specific projections fuel the optimism in this narrative. The details may surprise you.

Result: Fair Value of $44.61 (UNDERVALUED)

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

However, persistent competition and any future loss of exclusivity for Cabometyx could threaten revenue growth and challenge the current narrative's optimism.

Find out about the key risks to this Exelixis narrative.

Build Your Own Exelixis Narrative

If you want to take a different view or prefer to dive into the numbers yourself, it’s quick and easy to build your own narrative. Do it your way.

A great starting point for your Exelixis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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