We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Biogen (BIIB - Free Report) . BIIB is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors will also notice that BIIB has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BIIB's industry has an average PEG of 1.87 right now. Within the past year, BIIB's PEG has been as high as 1.95 and as low as 0.97, with a median of 1.49.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BIIB has a P/S ratio of 2.61. This compares to its industry's average P/S of 6.92.
Finally, we should also recognize that BIIB has a P/CF ratio of 8.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BIIB's current P/CF looks attractive when compared to its industry's average P/CF of 10.51. BIIB's P/CF has been as high as 15.50 and as low as 6.69, with a median of 7.96, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Biogen is likely undervalued currently. And when considering the strength of its earnings outlook, BIIB sticks out as one of the market's strongest value stocks.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Biogen (BIIB) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Biogen (BIIB - Free Report) . BIIB is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors will also notice that BIIB has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BIIB's industry has an average PEG of 1.87 right now. Within the past year, BIIB's PEG has been as high as 1.95 and as low as 0.97, with a median of 1.49.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BIIB has a P/S ratio of 2.61. This compares to its industry's average P/S of 6.92.
Finally, we should also recognize that BIIB has a P/CF ratio of 8.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BIIB's current P/CF looks attractive when compared to its industry's average P/CF of 10.51. BIIB's P/CF has been as high as 15.50 and as low as 6.69, with a median of 7.96, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Biogen is likely undervalued currently. And when considering the strength of its earnings outlook, BIIB sticks out as one of the market's strongest value stocks.