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Biogen Inc. (BIIB) Gains But Lags Market: What You Should Know

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Biogen Inc. (BIIB - Free Report) closed at $235.41 in the latest trading session, marking a +0.4% move from the prior day. This change lagged the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the company had lost 6.26% in the past month. In that same time, the Medical sector gained 2.26%, while the S&P 500 gained 0.39%.

Biogen Inc. will be looking to display strength as it nears its next earnings release. On that day, Biogen Inc. is projected to report earnings of $3.32 per share, which would represent a year-over-year decline of 27.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.63 billion, down 7.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.18 per share and revenue of $10.87 billion, which would represent changes of -43.09% and -19.14%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Biogen Inc.These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Biogen Inc. is currently a Zacks Rank #3 (Hold).

Digging into valuation, Biogen Inc. currently has a Forward P/E ratio of 12.23. Its industry sports an average Forward P/E of 23.56, 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 1.17 right now. 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 1.68 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 159, which puts it in the bottom 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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