Biogen (BIIB) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Biogen (BIIB) closed at $232.37, marking a -0.91% move from the previous day. This change lagged the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the biotechnology company had lost 27.07% over the past month. This has lagged the Medical sector's loss of 2.31% and the S&P 500's gain of 4.3% in that time.
Wall Street will be looking for positivity from BIIB as it approaches its next earnings report date. This is expected to be April 24, 2019. On that day, BIIB is projected to report earnings of $6.83 per share, which would represent year-over-year growth of 12.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.38 billion, up 8.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $28.81 per share and revenue of $13.74 billion, which would represent changes of +9.96% and +2.16%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. BIIB currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BIIB is holding a Forward P/E ratio of 8.14. This valuation marks a discount compared to its industry's average Forward P/E of 21.57.
Meanwhile, BIIB's PEG ratio is currently 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2 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 55, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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