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

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In the latest trading session, Biogen Inc. (BIIB - Free Report) closed at $193.77, marking a -1.97% move from the previous day. This change lagged the S&P 500's daily loss of 0.74%.

Prior to today's trading, shares of the company had lost 7.88% over the past month. This has lagged the Medical sector's loss of 2.46% and the S&P 500's loss of 4.6% in that time.

Investors will be hoping for strength from Biogen Inc. as it approaches its next earnings release. On that day, Biogen Inc. is projected to report earnings of $4.42 per share, which would represent a year-over-year decline of 17.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.52 billion, down 6.4% from the year-ago period.

BIIB's full-year Zacks Consensus Estimates are calling for earnings of $16 per share and revenue of $9.91 billion. These results would represent year-over-year changes of -16.75% and -9.75%, respectively.

It is also important to note the 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% higher. Biogen Inc. currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Biogen Inc. currently has a Forward P/E ratio of 12.36. This represents a discount compared to its industry's average Forward P/E of 19.46.

Investors should also note that BIIB has a PEG ratio of 1.19 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BIIB's industry had an average PEG ratio of 1.07 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.

To follow BIIB in the coming trading sessions, be sure to utilize Zacks.com.


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