Biogen Inc. (BIIB) closed at $239.92 in the latest trading session, marking a -0.03% move from the prior day. This change was narrower than the S&P 500’s 0.26% loss on the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today’s trading, shares of the company had gained 5.02% over the past month. This has lagged the Medical sector’s gain of 5.77% and outpaced the S&P 500’s gain of 4.82% in that time.
Biogen Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.32, down 27.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, down 7.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.17 per share and revenue of $10.87 billion. These totals would mark changes of -43.12% and -19.14%, respectively, from last year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% lower. Biogen Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Biogen Inc. currently has a Forward P/E ratio of 12.52. This valuation marks a discount compared to its industry’s average Forward P/E of 23.35.
Investors should also note that BIIB has a PEG ratio of 1.2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Medical – Biomedical and Genetics was holding an average PEG ratio of 1.67 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 162, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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