Biogen Inc. (BIIB) Stock Sinks As Market Gains: What You Should Know
Biogen Inc. (BIIB) closed at $269.98 in the latest trading session, marking a -0.02% move from the prior day. This change lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Prior to today's trading, shares of the company had 0% over the past month. This has lagged the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.
Investors will be hoping for strength from Biogen Inc. as it approaches its next earnings release. The company is expected to report EPS of $3.33, down 8.01% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, down 7.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.47 per share and revenue of $9.58 billion, which would represent changes of -12.45% and -5.83%, respectively, from the prior year.
Any recent changes to analyst estimates for Biogen Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Biogen Inc. is currently a Zacks Rank #3 (Hold).
Investors should also note Biogen Inc.'s current valuation metrics, including its Forward P/E ratio of 17.45. Its industry sports an average Forward P/E of 19.07, so we one might conclude that Biogen Inc. is trading at a discount comparatively.
Meanwhile, BIIB's PEG ratio is currently 2.29. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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