Exelixis Inc. (NASDAQ: EXEL) is a leading biotech company specializing in the discovery, development, and commercialization of cancer treatments. As the biotech sector experiences increased volatility and investor attention, Exelixis stock (EXEL) has become a focal point for traders and long-term investors alike. Given its strong pipeline of oncology treatments and steady revenue growth, many are questioning: Is EXEL stock a good buy today?
Over the past year, EXEL stock performance has been influenced by drug approvals, clinical trial results, and broader market trends. Investors are keen to understand whether Exelixis stock forecast suggests a strong upside or if the risks outweigh the potential gains. With a robust R&D pipeline, solid financials, and competitive positioning in the biotech space, Exelixis presents an intriguing investment opportunity.
So, should you buy EXEL stock today? This article will analyze key factors, including financial performance, growth drivers, risks, and expert opinions to help you decide.
Exelixis (EXEL) Stock Overview
Exelixis (EXEL) has shown moderate fluctuations in its recent trading session, reflecting both market sentiment and the biotech sector’s overall performance. The stock opened at $37.05 but saw intraday volatility, reaching a day low of $36.97 before rebounding to a day high of $37.64. It closed at $36.92, slightly lower than the previous close of $37.05, indicating a minor pullback.
With a market capitalization of $10.5 billion, Exelixis remains a key player in the biotech industry, leveraging its innovative oncology pipeline for future growth. The company’s P/E ratio stands at 21.32, suggesting a reasonable valuation compared to industry peers. The earnings per share (EPS) is 1.76, reflecting strong profitability, while the book value per share is 7.34, providing insight into the company’s underlying financial strength.
Trading volume for the session stood at 2 million shares, indicating steady investor interest in EXEL stock. The stock’s free float is 97.3%, meaning most of its shares are available for public trading, contributing to liquidity and price movement.
With cash flow per share at $0.55, Exelixis continues to maintain a solid financial position, allowing for sustained research and development investments.
Over the past 12 months, EXEL stock price has shown moderate volatility, influenced by earnings reports, FDA approvals, and biotech sector trends. The stock has traded between $17 and $25, reflecting shifts in investor sentiment. EXEL stock vs biotech stocks comparison reveals that while some competitors have struggled, Exelixis has maintained steady momentum.
Financial Performance & Earnings Analysis
Earnings and Revenue Growth
A key aspect of EXEL stock analysis is evaluating its financial health. Exelixis has reported consistent revenue growth, with total revenue surpassing $1.5 billion in recent quarters, primarily driven by Cabometyx sales. Exelixis revenue growth has been fueled by strong demand for its cancer treatments and ongoing licensing agreements.
Exelixis (EXEL) Income Statement Analysis
Exelixis has demonstrated strong revenue growth and profitability over the past five quarters, showcasing its financial stability and operational efficiency. The latest Q3 2024 earnings report (as of September 27, 2024) highlights an increase in revenue while maintaining a high gross profit margin.
Revenue Trends
- Q3 2024 Revenue: $539.54 million, up from $471.92 million in Q3 2023.
- Q2 2024 Revenue: $637.18 million, the highest in the past five quarters.
- Q1 2024 Revenue: $425.23 million, reflecting a temporary decline from Q4 2023.
Despite quarterly fluctuations, Exelixis has maintained a steady upward trend in revenue, driven primarily by strong sales of its flagship drug, Cabometyx, and expansion in the oncology sector.
Profitability & Cost Management
- Gross Profit Q3 2024: $522.21 million, up from $453.15 million in Q3 2023.
- Gross Profit Margin: 96.8% (Q3 2024), maintaining a high profitability level.
- Cost of Revenue: $17.33 million (Q3 2024), reflecting strong cost control.
With a consistently high gross profit ratio (above 95%), Exelixis is efficiently managing
This positive income statement reinforces investor confidence, making EXEL stock a compelling option for those looking for growth in the biotech sector.
Cash Reserves
Despite high R&D spending, Exelixis maintains a strong cash position, reducing financial risks. EXEL stock earnings report shows a positive EPS trend, reinforcing investor confidence.
Growth Drivers and Future Potential
Strong Drug Pipeline and R&D Expansion
A major reason investors ask, “Is EXEL stock a good buy?” is its future growth potential. Exelixis has a promising pipeline of oncology drugs, with multiple treatments in Phase 2 and Phase 3 clinical trials.
Partnerships and Market Expansion
Exelixis (NASDAQ: EXEL) has been actively advancing its oncology portfolio through Phase 2 and Phase 3 clinical trials and strategic collaborations. Here are some notable examples:
Clinical Trials
- STELLAR-305 Trial: Initiated in December 2023, this Phase 2/3 pivotal trial evaluates zanzalintinib in combination with pembrolizumab versus pembrolizumab alone in patients with previously untreated PD-L1-positive recurrent or metastatic squamous cell carcinoma of the head and neck (SCCHN).
- CONTACT-02 Study: A global Phase 3 trial assessing cabozantinib combined with atezolizumab compared to a second novel hormonal therapy in patients with metastatic castration-resistant prostate cancer (mCRPC). Detailed final overall survival results were presented in September 2024.
- CABINET Study: This Phase 3 pivotal trial demonstrated that cabozantinib significantly improved progression-free survival in patients with advanced neuroendocrine tumors. Final results were presented at ESMO 2024 and published in the New England Journal of Medicine.
Strategic Partnerships
- Merck & Co.: In October 2024, Exelixis entered a clinical development collaboration with Merck to evaluate the combination of zanzalintinib and KEYTRUDA® (pembrolizumab) in a Phase 3 trial for head and neck cancer.
- Catalent: Exelixis has a collaboration and license agreement with Catalent’s Redwood Bioscience subsidiary to develop multiple antibody-drug conjugates (ADCs) using Catalent’s proprietary SMARTag® technology.
- GlaxoSmithKline (GSK): Exelixis established a broad alliance with GSK to discover and develop novel therapeutics across various disease areas, enhancing its research capabilities and market reach.
These clinical advancements and strategic collaborations underscore Exelixis’ commitment to expanding its oncology pipeline and enhancing its therapeutic offerings
Stock Forecast and Growth Potential
Industry experts believe Exelixis stock forecast remains bullish, given its consistent R&D success and upcoming drug launches.
If Exelixis secures additional FDA approvals, the EXEL stock forecast for 2025 looks strong.
Exelixis (NASDAQ: EXEL) has shown steady momentum in recent trading sessions, with the stock closing at $37.53 in the past two weeks. According to market predictions, EXEL stock is expected to reach $39.18 in the next two weeks, representing a potential upside. The upper predicted price target stands at $40.63, suggesting that bullish sentiment could push the stock higher if favorable catalysts, such as positive clinical trial results or strong earnings, emerge. On the downside, the lower predicted price estimate is $37.83, indicating that the stock may see limited downside risks in the near term.
Given these projections, EXEL stock appears to be trading within a stable range, with investors watching closely for further developments in drug approvals, partnerships, and broader biotech market trends. These factors could influence whether EXEL stock breaks past its upper resistance level or trends towards its lower predicted price.
Risks and Challenges to Consider
Regulatory and Market Risks
While Exelixis has seen success, investors should consider the risks of biotech investing:
- FDA approval delays can impact stock momentum
- Increased competition from biotech giants
- Patent expiration concerns affecting future revenue
Macroeconomic Impact on Biotech Stocks
The biotech sector is highly sensitive to interest rates, healthcare policies, and regulatory changes. If market conditions shift, EXEL stock risks could become more pronounced.
Expert & Analyst Opinions
Wall Street Analysts on EXEL Stock
Exelixis (NASDAQ: EXEL) has received a mix of analyst ratings, reflecting diverse market perspectives on the stock’s future trajectory. Wells Fargo’s Derek Archila recently downgraded EXEL stock from Overweight to Equal-Weight, with a price target of $36.00 as of February 24, 2025, signaling a neutral outlook.
On the bullish side, HC Wainwright & Co.’s Robert Burns reaffirmed his Buy rating on February 13, 2025, setting a price target of $40.00, suggesting confidence in EXEL’s growth potential. Similarly, Guggenheim’s Michael Schmidt reiterated a Buy rating with a $42.00 price target, highlighting strong long-term prospects.
Meanwhile, Barclays’ Peter Lawson maintained an Equal-Weight rating, raising his price target from $25.00 to $29.00, indicating moderate optimism. Likewise, Sudan Loganathan from Stephens & Co. reiterated an Equal-Weight rating with a $29.00 target, reflecting a cautious stance on the stock’s near-term performance.
These mixed ratings indicate that while some analysts remain bullish on EXEL stock’s upside, others prefer a wait-and-see approach, making future earnings reports, clinical trial results, and regulatory approvals key catalysts for stock movement.
Institutional Investor Trends
Exelixis (NASDAQ: EXEL) enjoys significant institutional support, with approximately 89.14% of its shares held by major financial institutions. MAN GROUP PLC stands as the largest corporate investor, holding 658.86K shares valued at $15.63 million, representing a 0.22% stake in the company. Meanwhile, CITIGROUP INC owns 424.91K shares, worth approximately $10.08 million, translating to a 0.14% ownership stake.
This high institutional ownership signals strong confidence from major financial players, as large firms typically invest in stocks with long-term growth potential. Such backing often adds stability to the stock, reducing volatility and reinforcing investor sentiment. If institutional investors continue to increase their positions, it could serve as a bullish indicator for EXEL stock in the coming months.
Should You Buy, Hold, or Sell EXEL Stock?
Investment Strategy for EXEL
Given strong revenue growth, a promising drug pipeline, and positive analyst sentiment, EXEL stock presents a solid investment opportunity for long-term biotech investors. However, short-term traders should watch for FDA approvals and earnings reports before making a decision.
- Buy for long-term growth if you believe in Exelixis’ drug pipeline.
- Hold if you are waiting for a stronger price breakout.
- Sell if you think competition or regulatory risks outweigh growth potential.
Conclusion – Final Verdict on ‘Is EXEL Stock a Good Buy?’
To answer the question, “Is EXEL stock a good buy?”—the data suggests Exelixis remains a strong contender in the biotech industry. With a solid financial base, growing product pipeline, and positive analyst outlook, the stock offers long-term growth potential.
For biotech investors seeking stable revenue growth and innovation-driven expansion, EXEL stock may be a great buy today. However, market risks, regulatory hurdles, and competitive pressures should be carefully evaluated before making a decision.
Final Thoughts:
- Long-term investors: EXEL stock offers growth potential in the oncology space.
- Short-term traders: Monitor earnings and FDA approvals before making moves.
Would you invest in Exelixis stock? Share your thoughts in the comments!