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Biogen (BIIB) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
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Biogen (BIIB) closed at $227.33 in the latest trading session, marking a +1.33% move from the prior day. This move outpaced the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 1.66%.

Coming into today, shares of the biotechnology company had lost 1.8% in the past month. In that same time, the Medical sector lost 1.73%, while the S&P 500 lost 2.76%.

Wall Street will be looking for positivity from BIIB as it approaches its next earnings report date. In that report, analysts expect BIIB to post earnings of $7.47 per share. This would mark year-over-year growth of 28.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.46 billion, up 3.22% from the year-ago period.

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.

Any recent changes to analyst estimates for BIIB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.11% lower. BIIB currently has a Zacks Rank of #3 (Hold).

Digging into valuation, BIIB currently has a Forward P/E ratio of 7.59. This valuation marks a discount compared to its industry's average Forward P/E of 22.2.

Meanwhile, BIIB's PEG ratio is currently 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.77 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 70, putting it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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