Biogen Inc. (BIIB) closed the most recent trading day at $283.44, moving -1.94% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 2.49%. Meanwhile, the Dow lost 2.25%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today’s trading, shares of the company had lost 3.65% over the past month. This has lagged the Medical sector’s gain of 5.8% and the S&P 500’s gain of 1.14% 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 $3.41, up 0.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.44 billion, down 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.98 per share and revenue of $10.07 billion. These totals would mark changes of -11.65% and -8.33%, respectively, from last year.
Any recent changes to analyst estimates for Biogen Inc. should also be noted by investors. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Biogen Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Biogen Inc. is holding a Forward P/E ratio of 17.03. For comparison, its industry has an average Forward P/E of 17.93, which means Biogen Inc. is trading at a discount to the group.
Meanwhile, BIIB’s PEG ratio is currently 1.7. 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. BIIB’s industry had an average PEG ratio of 1.35 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 58, putting it in the top 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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