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Biogen Inc. (BIIB) Dips More Than Broader Market: What You Should Know

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Biogen Inc. (BIIB - Free Report) closed at $216.69 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 0.27%.

The the stock of company has fallen by 2.34% in the past month, lagging the Medical sector's loss of 0.57% and the S&P 500's gain of 3.05%.

Investors will be eagerly watching for the performance of Biogen Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.48, signifying a 2.35% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.32 billion, indicating a 5.66% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $15.48 per share and revenue of $9.47 billion, which would represent changes of +5.16% and -3.75%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Biogen Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. At present, Biogen Inc. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Biogen Inc. is currently exchanging hands at a Forward P/E ratio of 14.09. For comparison, its industry has an average Forward P/E of 24.18, which means Biogen Inc. is trading at a discount to the group.

Also, we should mention that BIIB has a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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