Back to top

Image: Bigstock

Here's Why Biogen Inc. (BIIB) Fell More Than Broader Market

Read MoreHide Full Article

Biogen Inc. (BIIB - Free Report) ended the recent trading session at $253.39, demonstrating a -1.58% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the company have depreciated by 0.09% over the course of the past month, outperforming the Medical sector's loss of 5.22% and the S&P 500's loss of 3.95%.

The upcoming earnings release of Biogen Inc. will be of great interest to investors. The company's earnings report is expected on November 8, 2023. The company's earnings per share (EPS) are projected to be $3.98, reflecting a 16.56% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, down 4.82% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.27 per share and revenue of $9.71 billion. These totals would mark changes of -13.58% and -4.6%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Biogen Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. Biogen Inc. presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Biogen Inc. currently has a Forward P/E ratio of 16.86. This expresses no noticeable deviation compared to the average Forward P/E of 16.86 of its industry.

It's also important to note that BIIB currently trades at a PEG ratio of 2.79. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Biogen Inc. (BIIB) - free report >>

Published in