BIIB Stock: Is Biogen Still A Buy After The 14% Spike?

Biogen (BIIB) shares recorded their fifth consecutive day of increases, accumulating a total return of 14% during this span. The company’s market value has increased by approximately $3.3 billion over the past 5 days, bringing its current market capitalization to around $23 billion. The stock is currently 1.5% higher than its closing value at the end of 2024. In comparison, the year-to-date return for the S&P 500 stands at 14.2%. This can be attributed to the regulatory approval of its Alzheimer’s treatment, Leqembi, in China. While Eisai is responsible for booking all Leqembi sales, Biogen recognizes its 50% share of the drug’s profits and losses. Biogen’s revenue from Leqembi reached $160 million in the latest quarter, a figure expected to increase significantly in the coming quarters due to the Chinese approval.

Beyond Leqembi, BIIB develops treatments for neurological and neurodegenerative disorders, which encompass therapies for multiple sclerosis, non-Hodgkin lymphoma, chronic lymphocytic leukemia, rheumatoid arthritis, and pemphigus vulgaris. Following this surge, is BIIB still a good investment – or is it time to secure profits? Dive deeper with Buy or Sell BIIB.

That being said, if you seek an upside with less volatility than holding an individual stock like BIIB, consider the High Quality Portfolio. It has comfortably outperformed its benchmark—a combination of the S&P 500, Russell, and S&P MidCap indexes—and has achieved returns exceeding 91% since its inception. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

Comparing BIIB Stock Returns with the S&P 500

The table below compares the performance of BIIB stock against the S&P 500 index over various periods, including the current winning streak:

What is the significance? Momentum frequently occurs before confidence solidifies. A series of wins spanning multiple days can indicate increasing investor assurance or trigger subsequent buying. Monitoring these trends can aid in capitalizing on strength or preparing for a strategically timed entry when momentum subsides. However, substantial gains can be followed by abrupt reversals – but how has BIIB reacted after previous declines? Refer to BIIB Dip Buyer Analysis for further details.

Gains and Losses Streaks: S&P 500 Constituents

As of now, 80 S&P constituents have experienced 3 or more days of consecutive gains, and 55 constituents have undergone 3 or more days of consecutive losses.

While BIIB stock appears appealing in light of its winning streak, investing in a single stock without comprehensive analysis can be risky. Consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.