Please ensure Javascript is enabled for purposes of website accessibility

A Big Upgrade for Exelixis

By Dave Mock – Updated Apr 6, 2017 at 1:53AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This bullish call comes from more than just one analyst.

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track records of the firms behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 135,000 members, many of whom demonstrate better investing insight than published analysts do.

Enough top-performing CAPS members have turned bullish on Exelixis (NASDAQ:EXEL) recently to upgrade it from the four-star rank it has held for months to a more formidable five stars. A total of 2,336 members have given their opinion on Exelixis, with many of them offering analysis and commentary explaining the recent optimism.

Many CAPS members like to point to Exelixis' growing pipeline of drugs and licensing deals -- including eight cancer compounds and three others that it's working with on its own. Its latest partnership with sanofi-aventis (NYSE:SNY) rocked the market with the announcement that Exelixis will get $140 million up front with the opportunity for $1 billion more.

It also struck an excellent deal last December with Bristol-Myers Squibb (NYSE:BMY) for its brain cancer drug, XL184, after GlaxoSmithKline (NYSE:GSK) had turned it down. The drug is in clinical trials and has the potential to treat several types of cancer.

Larger players see big potential in cancer drugs, as evidenced by Johnson & Johnson's (NYSE:JNJ) agreement to acquire prostate cancer drug maker Cougar Biotechnology, and the high investor interest surrounding Dendreon's (NASDAQ:DNDN) Provenge and Pfizer's (NYSE:PFE) Sutent.

While many other small drug companies struggle in a tight market, Exelixis has now brought in more than $400 million through licensing deals since late last year, giving it a solid cushion of cash for the near future, and leading the CEO to claim the company's in the best financial shape it's ever been in.                 

To see what the very best CAPS analysts are saying now about Exelixis -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free.

More Foolishness:

Always looking ahead, the Motley Fool Rule Breakers service has recommended Exelixis to beat the market over the long haul. To see what other rule-breaking stocks Fool co-Founder David Gardner and his team are picking today, take a free 30-day trial.

Fool contributor Dave Mock recently upgraded his martini with a better grade of olives. He owns shares of Pfizer and Johnson & Johnson. Pfizer is an Inside Value selection. Johnson & Johnson is an Income Investor recommendation. The Fool owns shares of Exelixis. The Fool's disclosure policy moonlights as Squeaky the Clown at kids' birthday parties.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exelixis, Inc. Stock Quote
Exelixis, Inc.
EXEL
$16.28 (-1.75%) $0.29
Sanofi Stock Quote
Sanofi
SNY
$38.40 (-1.87%) $0.73
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$166.72 (0.33%) $0.54
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$44.08 (-1.10%) $0.49
Bristol Myers Squibb Company Stock Quote
Bristol Myers Squibb Company
BMY
$70.71 (-0.81%) $0.58
GSK Stock Quote
GSK
GSK
$29.36 (-2.17%) $0.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.