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

Zacks Equity Research
Cosan (CZZ) closed the most recent trading day at $14.18, moving -0.49% from the previous trading session.

Biogen (BIIB) closed the most recent trading day at $223.40, moving -0.95% from the previous trading session. This change lagged the S&P 500's 0.69% loss on the day. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq lost 0.79%.

Coming into today, shares of the biotechnology company had lost 1.61% in the past month. In that same time, the Medical sector lost 0.97%, while the S&P 500 lost 4.53%.

Wall Street will be looking for positivity from BIIB as it approaches its next earnings report date. On that day, BIIB is projected to report earnings of $7.47 per share, which would represent year-over-year growth of 28.79%. Meanwhile, our latest consensus estimate is calling for revenue of $3.46 billion, up 3.22% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $29.55 per share and revenue of $13.88 billion, which would represent changes of +12.79% and +3.21%, respectively, from the prior year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. BIIB is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BIIB is holding a Forward P/E ratio of 7.63. This valuation marks a discount compared to its industry's average Forward P/E of 25.25.

It is also worth noting that BIIB currently has a PEG ratio of 1.01. 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 1.78 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 80, putting it in the top 32% 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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