Biogen (BIIB) Surges 5.3%: Is This an Indication of Further Gains?

Biogen Inc. (BIIB) shares soared 5.3% in the last trading session to close at $253.84. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.9% gain over the past four weeks.

Biogen’s share price gain can likely be attributed to the growing investor optimism surrounding its pipeline progress and upcoming clinical milestones. Positive long-term phase II data from the ongoing AMETHYST study for litifilimab in cutaneous lupus erythematosus, showing sustained skin improvement through 52 weeks, has strengthened confidence in the drug’s potential. Data from phase III portion of the study are expected in the first half of 2027. Investors are also watching felzartamab’s development in kidney diseases, with phase III data expected in 2027, and upcoming phase III results for litifilimab in systemic lupus erythematosus (SLE), anticipated by year-end 2026.

This company is expected to post quarterly earnings of $2.08 per share in its upcoming report, which represents a year-over-year change of -56.8%. Revenues are expected to be $2.59 billion, up 2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Biogen, the consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BIIB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Biogen is part of the Zacks Medical - Biomedical and Genetics industry. Novavax (NVAX), another stock in the same industry, closed the last trading session 9.3% lower at $9.99. NVAX has returned 4.4% in the past month.

For Novavax, the consensus EPS estimate for the upcoming report has changed -8.1% over the past month to -$0.33. This represents a change of +46.8% from what the company reported a year ago. Novavax currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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