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

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Biogen Inc. (BIIB - Free Report) closed the most recent trading day at $244.14, moving +1.76% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.

Prior to today's trading, shares of the company had gained 7.15% over the past month. This has outpaced the Medical sector's gain of 5.28% and the S&P 500's gain of 4.56% 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 $4.06 per share. This would mark a year-over-year decline of 11.35%. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, down 7.95% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Biogen Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Biogen Inc. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Biogen Inc. currently has a Forward P/E ratio of 12.51. Its industry sports an average Forward P/E of 23.07, so we one might conclude that Biogen Inc. is trading at a discount comparatively.

We can also see that BIIB currently has a PEG ratio of 1.2. 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. BIIB's industry had an average PEG ratio of 1.65 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 161, putting 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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