Incyte Stock: Is INCY Outperforming the Health Care Sector?

Incyte Corporation (INCY), headquartered in Wilmington, Delaware, discovers, develops, and commercializes therapeutics for hematology/oncology, as well as inflammation and autoimmunity areas. Valued at $11.7 billion by market cap, the company follows the science to find solutions for patients with unmet medical needs. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and INCY perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the biotechnology industry. INCY has a strong portfolio of approved products, including its leading drug JAKAFI for rare blood cancers. Its diverse pipeline in oncology and dermatology demonstrates a commitment to innovation and addressing unmet medical needs, providing multiple revenue streams and reducing dependency on a single product.

Despite its notable strength, INCY slipped 27.9% from its 52-week high of $83.95, achieved on Nov. 8, 2024. Over the past three months, INCY stock declined 12.5%, underperforming the Health Care Select Sector SPDR Fund’s (XLV) 5.1% gains during the same time frame.

In the longer term, shares of INCY dipped 8% over the past six months, underperforming XLV’s six-month gains of 4.6%. However, the stock climbed 6.3% over the past 52 weeks, outperforming XLV’s 1.2% losses over the last year.

To confirm the recent bearish trend, INCY has been trading below its 50-day moving average since early March. The stock is trading below its 200-day moving average since mid-March. 

On Feb. 10, INCY shares closed down more than 7% after reporting its Q4 results. Its adjusted EPS of $1.43 missed Wall Street expectations of $1.53. The company’s revenue was $1.18 billion, exceeding Wall Street forecasts of $1.15 billion.

In the competitive arena of biotechnology, Alnylam Pharmaceuticals, Inc. (ALNY) has taken the lead over INCY, showing resilience with 80.7% gains over the past 52 weeks and a 1.8% downtick on a six-month basis.

Wall Street analysts are moderately bullish on INCY’s prospects. The stock has a consensus “Moderate Buy” rating from the 24 analysts covering it, and the mean price target of $74.75 suggests a potential upside of 23.5% from current price levels.