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Are Investors Undervaluing Biogen (BIIB) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Biogen (BIIB - Free Report) . BIIB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that BIIB has a P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BIIB's current P/B looks attractive when compared to its industry's average P/B of 3.91. BIIB's P/B has been as high as 2.62 and as low as 1.55, with a median of 2.13, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BIIB has a P/S ratio of 2.63. This compares to its industry's average P/S of 6.73.
Finally, investors should note that BIIB has a P/CF ratio of 10.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.58. BIIB's P/CF has been as high as 23.12 and as low as 10.23, with a median of 17.74, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Biogen is likely undervalued currently. And when considering the strength of its earnings outlook, BIIB sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Biogen (BIIB) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Biogen (BIIB - Free Report) . BIIB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that BIIB has a P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BIIB's current P/B looks attractive when compared to its industry's average P/B of 3.91. BIIB's P/B has been as high as 2.62 and as low as 1.55, with a median of 2.13, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BIIB has a P/S ratio of 2.63. This compares to its industry's average P/S of 6.73.
Finally, investors should note that BIIB has a P/CF ratio of 10.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.58. BIIB's P/CF has been as high as 23.12 and as low as 10.23, with a median of 17.74, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Biogen is likely undervalued currently. And when considering the strength of its earnings outlook, BIIB sticks out at as one of the market's strongest value stocks.