Biogen Inc. (BIIB) closed the most recent trading day at $212.55, moving -0.67% from the previous trading session. This change was narrower than the S&P 500’s 1.21% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.49%.
Heading into today, shares of the company had gained 5% over the past month, lagging the Medical sector’s gain of 8.27% and the S&P 500’s gain of 5.85% 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 $4.39 per share, which would represent a year-over-year decline of 17.79%. Meanwhile, our latest consensus estimate is calling for revenue of $2.52 billion, down 6.52% from the prior-year quarter.
BIIB’s full-year Zacks Consensus Estimates are calling for earnings of $15.51 per share and revenue of $9.9 billion. These results would represent year-over-year changes of -19.3% and -9.81%, respectively.
It is also important to note the recent changes to analyst estimates for Biogen Inc.Recent revisions tend to reflect the latest near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Biogen Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Biogen Inc. is currently trading at a Forward P/E ratio of 13.8. Its industry sports an average Forward P/E of 22.82, so we one might conclude that Biogen Inc. is trading at a discount comparatively.
Investors should also note that BIIB has a PEG ratio of 1.32 right now. 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 1.28 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 144, which puts it in the bottom 44% 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.
To follow BIIB in the coming trading sessions, be sure to utilize Zacks.com.
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