Biogen Inc. (BIIB) Dips More Than Broader Markets: What You Should Know
Biogen Inc. (BIIB) closed at $285.94 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 1.3% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 5.51%.
Heading into today, shares of the company had gained 4.75% over the past month, outpacing the Medical sector's loss of 0.54% and lagging the S&P 500's gain of 6.41% in that time.
Investors will be hoping for strength from Biogen Inc. as it approaches its next earnings release, which is expected to be February 15, 2023. The company is expected to report EPS of $3.48, up 2.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.45 billion, down 10.56% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Biogen Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Biogen Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Biogen Inc. is currently trading at a Forward P/E ratio of 18.4. Its industry sports an average Forward P/E of 20.83, so we one might conclude that Biogen Inc. is trading at a discount comparatively.
It is also worth noting that BIIB currently has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.61 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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