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Biogen Inc. (BIIB) Stock Sinks As Market Gains: What You Should Know

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Biogen Inc. (BIIB - Free Report) closed at $338.24 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%.

Prior to today's trading, shares of the company had gained 0.27% over the past month. This has lagged the Medical sector's gain of 2.3% and the S&P 500's gain of 3.02% in that time.

Wall Street will be looking for positivity from BIIB as it approaches its next earnings report date. On that day, BIIB is projected to report earnings of $4.21 per share, which would represent a year-over-year decline of 52.38%. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, down 20.88% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.69 per share and revenue of $10.75 billion, which would represent changes of -44.54% and -20.07%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BIIB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. BIIB is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that BIIB has a Forward P/E ratio of 18.13 right now. For comparison, its industry has an average Forward P/E of 26.77, which means BIIB is trading at a discount to the group.

We can also see that BIIB currently has a PEG ratio of 1.74. 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 1.65 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 201, which puts it in the bottom 21% 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.

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