New Lifetime High Reached: Biogen Idec (BIIB)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Biogen Idec as such a stock due to the following factors:
- BIIB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $434.2 million.
- BIIB has traded 30,172 shares today.
- BIIB is trading at a new lifetime high.
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More details on BIIB:
Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurological, autoimmune, and hematologic disorders in the United States and internationally. BIIB has a PE ratio of 33.1. Currently there are 13 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Biogen Idec has been 1.8 million shares per day over the past 30 days. Biogen Idec has a market cap of $95.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.56 and a short float of 1.5% with 3.12 days to cover. Shares are up 20.8% year-to-date as of the close of trading on Thursday.
Analysis:
rates Biogen Idec as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 36.4%. Since the same quarter one year prior, revenues rose by 34.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BIIB's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BIIB has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Biotechnology industry and the overall market, BIOGEN IDEC INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Biogen Idec Ratings Report.
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