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Biogen Inc. (BIIB) Gains But Lags Market: What You Should Know

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Biogen Inc. (BIIB - Free Report) closed at $211.64 in the latest trading session, marking a +0.47% move from the prior day. This change lagged the S&P 500's 0.81% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.61%.

Prior to today's trading, shares of the company had gained 0.57% over the past month. This has lagged the Medical sector's gain of 6.56% and the S&P 500's gain of 5.64% 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 $4.38 per share. This would mark a year-over-year decline of 17.98%. Our most recent consensus estimate is calling for quarterly revenue of $2.52 billion, down 6.39% from the year-ago period.

BIIB's full-year Zacks Consensus Estimates are calling for earnings of $15.52 per share and revenue of $9.92 billion. These results would represent year-over-year changes of -19.25% and -9.65%, respectively.

It is also important to note the recent changes to analyst estimates for Biogen Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% higher. Biogen Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, Biogen Inc. is holding a Forward P/E ratio of 13.57. For comparison, its industry has an average Forward P/E of 23.76, which means Biogen Inc. is trading at a discount to the group.

Also, we should mention that BIIB has a PEG ratio of 1.3. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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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