Biogen, a profitable and massive selling biopharmaceutical company, is now up for sale for long-term investors. The shares of Biogen have been a subject of a downward pressure since it hit an all-time high of $475. But this downward movement is merely temporary and this creates a good avenue for long-term investors to start accumulating shares while the shares are prices are still at a lower price.
Long-term investors are a type of investors that intend to put their investment for more than a year. They invest only on stable companies. These investors patiently waits until their stock grow as the companies they invest in grow through the years.
Biogen trades at a 12 month of price-to-earnings ratio of 14.75. It has an estimated forward ratio of 11.98.
The company is known to have a very solid growth potential and having these discounted price represents a bargain.
Peter Lynch, one of the most successful investor of all time, uses a method that will help investor get a clearer view of this opportunity. He created a chart that showed the earnings and stock price per share. He will then equate this to $1 per share to $15 stock price. The results allowed Lynch to know if the stock is overvalued or undervalued. This method had helped him achieve a superior gain in the stock market.
It is a good opportunity for investors to start purchasing shares of solid companies while the prices are still low. Solid companies like Biogen hold promising stocks with many qualities of successful investments.
One of the standout qualities of Biogen is its Return on Equity or ROE. Return on Equity is the company’s ability to make use of their investment funds to increase their earnings. Having 15% ROE is considered good.
From 2009 to 2015, Biogen’s ROE is constantly increasing. From an ROE of 16.13 in 2009, it increases to 33.90 at this year.
Other good sign that point to Biogen as good long-term investment is that the company’s price-to-sales ratio is almost near to a three-year low, price-to-book ratio is close to three-year low, P/E ratio is near five-year low, and stock price is close to two year low.
Among the biotech companies, Biogen has a brighter future. This company will continue to be the industry’s leader in providing top of the line therapeutic drugs.
Biogen has proven its worth in terms of high growth potential and a good track record of performance. Long-term investors who will grab the opportunity of buying the shares at a discounted price will surely reap their reward. Investors just need to be patient in waiting until the company will be able to regain its glory.
Biogen the Rising Tiger
Biogen continues to be one of the most stable biotech players in the industry. For years, the company maintained its growth as one of the industry leaders in the drug making industry. Investors who want to invest in stable companies should consider Biotech as one of their options. While the stock is at a lower price, investors should take advantage of this opportunity. It will not be too long before the company can regain its top spot in the market.