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Biogen Inc. (BIIB) Stock Sinks As Market Gains: What You Should Know

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Biogen Inc. (BIIB - Free Report) closed the most recent trading day at $234.48, moving -0.07% from the previous trading session. This change lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.38%.

Prior to today's trading, shares of the company had lost 7.67% over the past month. This has lagged the Medical sector's gain of 0.37% and the S&P 500's loss of 0.91% in that time.

Biogen Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Biogen Inc. to post earnings of $3.31 per share. This would mark a year-over-year decline of 27.73%. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, down 7.87% from the prior-year quarter.

BIIB's full-year Zacks Consensus Estimates are calling for earnings of $19.18 per share and revenue of $10.87 billion. These results would represent year-over-year changes of -43.09% and -19.14%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Biogen Inc. is currently sporting a Zacks Rank of #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 22.8, 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 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.65 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 157, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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