In the latest trading session, Biogen Inc. (BIIB) closed at $218.40, marking a -0.92% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.48%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the company had gained 5.16% over the past month, outpacing the Medical sector’s gain of 0.83% and the S&P 500’s gain of 0.08% in that time.
Wall Street will be looking for positivity from Biogen Inc. as it approaches its next earnings report date. This is expected to be May 3, 2022. On that day, Biogen Inc. is projected to report earnings of $4.36 per share, which would represent a year-over-year decline of 18.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, down 7.24% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.51 per share and revenue of $9.91 billion. These totals would mark changes of -19.3% and -9.79%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Biogen Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.66% lower. Biogen Inc. is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Biogen Inc.’s current valuation metrics, including its Forward P/E ratio of 14.21. For comparison, its industry has an average Forward P/E of 23.34, which means Biogen Inc. is trading at a discount to the group.
Also, we should mention that BIIB has a PEG ratio of 1.36. 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 1.31 at yesterday’s closing price.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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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