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Biogen Inc. (BIIB) Gains But Lags Market: What You Should Know
Biogen Inc. (BIIB - Free Report) closed at $211.68 in the latest trading session, marking a +0.34% move from the prior day. The stock lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the company had gained 1.73% over the past month, lagging the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from Biogen Inc. as it approaches its next earnings report date. The company is expected to report EPS of $4.37, down 18.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.52 billion, down 6.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.50 per share and revenue of $9.92 billion. These totals would mark changes of -19.35% and -9.68%, respectively, from last year.
Any recent changes to analyst estimates for Biogen Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Biogen Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Biogen Inc. is holding a Forward P/E ratio of 13.61. This valuation marks a discount compared to its industry's average Forward P/E of 22.78.
Meanwhile, BIIB's PEG ratio is currently 1.31. 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 1.15 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.