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Biogen Inc. (BIIB) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Biogen Inc. (BIIB - Free Report) closed at $267.43, marking a -0.19% move from the previous day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.25%.

Shares of the company witnessed a gain of 5.78% over the previous month, beating the performance of the Medical sector with its loss of 2.91% and the S&P 500's loss of 1.6%.

Analysts and investors alike will be keeping a close eye on the performance of Biogen Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 8, 2023. The company's upcoming EPS is projected at $3.99, signifying a 16.35% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.39 billion, down 4.86% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $9.7 billion, which would represent changes of -13.64% and -4.65%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Biogen Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Biogen Inc. presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Biogen Inc. is presently being traded at a Forward P/E ratio of 17.56. This denotes a premium relative to the industry's average Forward P/E of 17.2.

Investors should also note that BIIB has a PEG ratio of 2.9 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.96.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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