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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 $239.30, moving +1.11% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the company had gained 0.49% in the past month. In that same time, the Medical sector lost 4.1%, while the S&P 500 gained 0.22%.

Wall Street will be looking for positivity from Biogen Inc. as it approaches its next earnings report date. The company is expected to report EPS of $3.33, down 27.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.63 billion, down 7.95% from the year-ago period.

Investors should also note any 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Biogen Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Biogen Inc. is holding a Forward P/E ratio of 12.49. For comparison, its industry has an average Forward P/E of 17.92, which means Biogen Inc. is trading at a discount to the group.

Investors should also note that BIIB has a PEG ratio of 1.2 right now. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.07 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 162, 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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