Trade-Ideas LLC identified

Biogen

(

BIIB

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Biogen 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 $908.4 million.
  • BIIB has traded 600,067 shares today.
  • BIIB is trading at 2.61 times the normal volume for the stock at this time of day.
  • BIIB is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on BIIB:

Biogen 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 19. Currently there are 14 analysts that rate Biogen a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Biogen has been 2.7 million shares per day over the past 30 days. Biogen has a market cap of $67.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.59 and a short float of 2% with 1.42 days to cover. Shares are down 19.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Biogen as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • BIOGEN INC has improved earnings per share by 30.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BIOGEN INC increased its bottom line by earning $12.39 versus $7.82 in the prior year. This year, the market expects an improvement in earnings ($15.81 versus $12.39).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 29.8% when compared to the same quarter one year prior, rising from $714.51 million to $927.28 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 7.0%. 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 1.57, 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 INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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