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Biogen Inc. (BIIB) Dips More Than Broader Markets: What You Should Know

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Biogen Inc. (BIIB - Free Report) closed the most recent trading day at $274.72, moving -1.62% from the previous trading session. This change lagged the S&P 500's 0.08% loss on the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 11.55%.

Coming into today, shares of the company had lost 2.14% in the past month. In that same time, the Medical sector gained 0.62%, while the S&P 500 lost 1.03%.

Investors will be hoping for strength from Biogen Inc. as it approaches its next earnings release. The company is expected to report EPS of $3.41, up 0.59% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.44 billion, down 10.67% from the prior-year quarter.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.15% lower. Biogen Inc. currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Biogen Inc. is currently trading at a Forward P/E ratio of 17.64. This represents a discount compared to its industry's average Forward P/E of 20.24.

It is also worth noting that BIIB currently has a PEG ratio of 1.76. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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.

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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