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Biogen Inc. (BIIB) Stock Jumps 5%: Will It Continue to Soar?

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Biogen Inc. (BIIB - Free Report) shares ended the last trading session 5% higher at $286.14. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.2% gain over the past four weeks.

Biogen’s stock was up ahead of a crucial FDA decision on its controversial Alzheimer’s candidate, aducanumab, on June 7. If aducanumab is approved by the FDA, it will become the first medicine to be approved to reduce the clinical decline associated with Alzheimer’s disease, thus opening up a huge market opportunity for Biogen. However, in November 2020, an FDA advisory committee voted against approving aducanumab for Alzheimer’s disease.

This company is expected to post quarterly earnings of $4.64 per share in its upcoming report, which represents a year-over-year change of -54.8%. Revenues are expected to be $2.61 billion, down 29.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Biogen Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BIIB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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