Is Incyte Stock Outperforming the S&P 500?

Wilmington, Delaware-based Incyte Corporation (INCY) is a biopharmaceutical company that discovers, develops, and commercializes treatments in oncology, inflammation, and autoimmune diseases. Valued at a market cap of $16.5 billion, the company’s portfolio includes drugs such as Jakafi, Monjuvi, Pemazyre, and Opzelura. 

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Incyte fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the biotechnology industry. The company’s strong R&D focus and global partnerships enhance its ability to bring breakthrough therapies to patients. Its strength lies in its deep expertise in targeted therapies and immunology, supported by a proven track record of successful drug development in oncology and dermatology. 

This biopharmaceutical company is currently trading 3.7% below its 52-week high of $87.99, reached on Sep. 4. Shares of INCY have surged 23.8% over the past three months, outperforming the S&P 500 Index’s ($SPX) 12.2% return during the same time frame.

In the longer term, INCY has rallied 28.9% over the past 52 weeks, outpacing SPX's 17.4% uptick over the same time period. Moreover, on a YTD basis, shares of INCY are up 22.7%, compared to SPX’s 13.8% rise.

To confirm its bullish trend, INCY has been trading above its 200-day moving average since early June, with slight fluctuations, and has remained above its 50-day moving average since mid-May.

On Jul. 29, shares of INCY surged 10.3% after its strong Q2 earnings release. The company’s quarterly revenue improved 16.5% year-over-year to $1.2 billion, surpassing consensus estimates by 6.1%. Moreover, its adjusted EPS came in at $1.57, a sharp turnaround from a loss of $1.82 recorded in the same period last year and 12.9% ahead of analyst expectations. 

While INCY has outperformed the broader market, it has considerably lagged behind its rival, Alnylam Pharmaceuticals, Inc. (ALNY), which soared 67.6% over the past 52 weeks and 95% on a YTD basis. 

Given INCY’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 26 analysts covering it. While the company is trading above its mean price target of $83.28, its Street-high price target of $110 suggests a 29.8% potential upside from its current price levels.