Here's Why Biogen Inc. (BIIB) Fell More Than Broader Market
The latest trading session saw Biogen Inc. (BIIB) ending at $221.74, denoting a -0.98% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq decreased by 0.55%.
Coming into today, shares of the company had lost 9.37% in the past month. In that same time, the Medical sector gained 5.93%, while the S&P 500 gained 3.98%.
The investment community will be closely monitoring the performance of Biogen Inc. in its forthcoming earnings report. The company is expected to report EPS of $3.47, up 2.06% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.32 billion, indicating a 5.67% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.48 per share and a revenue of $9.45 billion, indicating changes of +5.16% and -3.91%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Biogen Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate has moved 1.51% lower within the past month. Biogen Inc. presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Biogen Inc. is presently trading at a Forward P/E ratio of 14.46. This denotes a discount relative to the industry's average Forward P/E of 22.45.
Investors should also note that BIIB has a PEG ratio of 1.87 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Biogen Inc. (BIIB) : Free Stock Analysis Report
