Buy Recommendation Reiterated For Biogen Idec Inc

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.

NEW YORK ( TheStreet) -- Biogen Idec (Nasdaq: BIIB) has been reiterated by TheStreet Ratings as a buy with a ratings score of 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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:
  • The revenue growth came in higher than the industry average of 11.8%. Since the same quarter one year prior, revenues rose by 31.9%. 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 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 76.67% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BIIB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BIOGEN IDEC INC has improved earnings per share by 22.8% 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 IDEC INC increased its bottom line by earning $5.76 versus $5.03 in the prior year. This year, the market expects an improvement in earnings ($8.85 versus $5.76).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Biotechnology industry average. The net income increased by 22.4% when compared to the same quarter one year prior, going from $398.40 million to $487.62 million.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $57.4 billion and is part of the health care sector and drugs industry. Shares are up 66.1% year to date as of the close of trading on Monday.

You can view the full Biogen Idec Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

Why Investors Shouldn't Worry About Trump's Tough Talk on Drug Prices

Why Investors Shouldn't Worry About Trump's Tough Talk on Drug Prices

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

These 2 Biotech Stocks Still Have Upside

These 2 Biotech Stocks Still Have Upside

Building in Biotech, Adding to Twitter

Building in Biotech, Adding to Twitter

Biogen, Celgene Jump on Earnings; Ford's Acquisitions Fail to Move Stock--ICYMI

Biogen, Celgene Jump on Earnings; Ford's Acquisitions Fail to Move Stock--ICYMI