Trade-Ideas: Biogen (BIIB) Is Today's Post-Market Leader Stock

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.

Trade-Ideas LLC identified Biogen ( BIIB) as a post-market leader 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 $1.1 billion.
  • BIIB is up 2% today from today's close.

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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 27.9. Currently there are 12 analysts that rate Biogen a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Biogen has been 2.0 million shares per day over the past 30 days. Biogen has a market cap of $90.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.62 and a short float of 1.3% with 0.89 days to cover. Shares are up 13.7% year-to-date as of the close of trading on Wednesday.

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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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. 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:
  • Powered by its strong earnings growth of 72.77% and other important driving factors, this stock has surged by 30.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 INC reported significant earnings per share improvement 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 ($16.78 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 71.4% when compared to the same quarter one year prior, rising from $479.96 million to $822.54 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 21.4%. Since the same quarter one year prior, revenues rose by 20.0%. 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 1.98, which demonstrates the ability of the company to cover short-term liquidity needs.

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