Biogen Inc. (BIIB) closed the most recent trading day at $274.04, moving -0.27% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 1.2%. At the same time, the Dow lost 1.1%, and the tech-heavy Nasdaq lost 2.86%.
Prior to today’s trading, shares of the company had lost 5.71% over the past month. This has lagged the Medical sector’s gain of 0.3% and the S&P 500’s loss of 4.77% in that time.
Wall Street will be looking for positivity from Biogen Inc. as it approaches its next earnings report date. The company is expected to report EPS of $3.41, up 0.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.44 billion, down 10.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.98 per share and revenue of $10.07 billion, which would represent changes of -11.65% and -8.31%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Biogen Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. Biogen Inc. is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Biogen Inc.’s current valuation metrics, including its Forward P/E ratio of 16.19. For comparison, its industry has an average Forward P/E of 19.61, which means Biogen Inc. is trading at a discount to the group.
It is also worth noting that BIIB currently has a PEG ratio of 1.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. BIIB’s industry had an average PEG ratio of 1.27 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.
To follow BIIB in the coming trading sessions, be sure to utilize Zacks.com.
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