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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 $280.13, moving -1.18% from the previous trading session. This change lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.

Prior to today's trading, shares of the company had lost 1.18% over the past month. This has lagged the Medical sector's loss of 0.24% and the S&P 500's gain of 2.18% in that time.

Wall Street will be looking for positivity from Biogen Inc. as it approaches its next earnings report date. On that day, Biogen Inc. is projected to report earnings of $3.41 per share, which would represent year-over-year growth of 0.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.44 billion, down 10.66% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Biogen Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 0.07% lower. 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 17.91. Its industry sports an average Forward P/E of 20.91, 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 1.79 right now. 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 1.61 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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