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

Zacks Equity Research
Principal Financial (PFG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Biogen (BIIB) closed at $237.58 in the latest trading session, marking a -0.9% move from the prior day. This change lagged the S&P 500's 0.61% loss on the day. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 0.56%.

Prior to today's trading, shares of the biotechnology company had lost 23.03% over the past month. This has lagged the Medical sector's gain of 2.13% and the S&P 500's gain of 5.68% in that time.

BIIB will be looking to display strength as it nears its next earnings release, which is expected to be April 24, 2019. The company is expected to report EPS of $6.87, up 13.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.35 billion, up 7.1% from the year-ago period.

BIIB's full-year Zacks Consensus Estimates are calling for earnings of $28.65 per share and revenue of $13.71 billion. These results would represent year-over-year changes of +9.35% and +1.95%, respectively.

Investors should also note any recent changes to analyst estimates for BIIB. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. BIIB is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, BIIB is currently trading at a Forward P/E ratio of 8.37. This valuation marks a discount compared to its industry's average Forward P/E of 21.31.

Also, we should mention that BIIB has a PEG ratio of 0.94. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.

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


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