Here's Why Biogen Inc. (BIIB) Fell More Than Broader Market
The latest trading session saw Biogen Inc. (BIIB) ending at $217.23, denoting a -1.71% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 1.02% for the day. At the same time, the Dow lost 1.04%, and the tech-heavy Nasdaq lost 1.65%.
Coming into today, shares of the company had lost 8.61% in the past month. In that same time, the Medical sector gained 4.07%, while the S&P 500 gained 3.64%.
Investors will be eagerly watching for the performance of Biogen Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.47, reflecting a 2.06% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.32 billion, down 5.66% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.48 per share and a revenue of $9.47 billion, indicating changes of +5.16% and -3.73%, respectively, from the former year.
Any recent changes to analyst estimates for Biogen Inc. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.6% downward. Biogen Inc. is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Biogen Inc. is currently being traded at a Forward P/E ratio of 14.28. This indicates a discount in contrast to its industry's Forward P/E of 22.69.
Meanwhile, BIIB's PEG ratio is currently 1.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.47.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Biogen Inc. (BIIB) : Free Stock Analysis Report
