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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 $263.72, marking a -0.97% move from the previous day. This change lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.

Prior to today's trading, shares of the company had lost 2.86% over the past month. This has lagged the Medical sector's gain of 0.86% and the S&P 500's gain of 0.58% in that time.

Biogen Inc. will be looking to display strength as it nears its next earnings release. On that day, Biogen Inc. is projected to report earnings of $3.97 per share, which would represent a year-over-year decline of 16.77%. Our most recent consensus estimate is calling for quarterly revenue of $2.38 billion, down 5.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.25 per share and revenue of $9.69 billion. These totals would mark changes of -13.7% and -4.8%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Biogen Inc.These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.49% lower. Biogen Inc. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Biogen Inc.'s current valuation metrics, including its Forward P/E ratio of 17.46. This represents a discount compared to its industry's average Forward P/E of 19.

We can also see that BIIB currently has a PEG ratio of 2.88. 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 2.19 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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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