Biogen (BIIB) Gains But Lags Market: What You Should Know
In the latest trading session, Biogen (BIIB) closed at $230.86, marking a +0.19% move from the previous day. The stock lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Heading into today, shares of the biotechnology company had lost 0.07% over the past month, lagging the Medical sector's gain of 2.28% and the S&P 500's gain of 0.1% in that time.
Wall Street will be looking for positivity from BIIB as it approaches its next earnings report date. The company is expected to report EPS of $7.47, up 28.79% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.46 billion, up 3.22% from the prior-year quarter.
BIIB's full-year Zacks Consensus Estimates are calling for earnings of $29.57 per share and revenue of $13.88 billion. These results would represent year-over-year changes of +12.86% and +3.21%, respectively.
Investors might also notice recent changes to analyst estimates for BIIB. 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.
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 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 0.04% lower. BIIB currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BIIB has a Forward P/E ratio of 7.79 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.92.
We can also see that BIIB currently has a PEG ratio of 0.93. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.76 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 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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