Biogen stock tends to disappoint in February
It's been an interesting start to the year, with plenty of geopolitical developments for investors to unpack. The market managed monthly wins in January, but as we get into February, it's not a bad idea to keep an eye on stocks that have had a tendency to underperform. For your convenience, Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the 25 worst stocks on the S&P 500 over the last decade.
Biogen Inc (NASDAQ:BIIB) is one of the worst stocks on the list. Per White, BIIB averages a February loss of 4.2% over the past 10 years, and has finished the month positive only two times. A couple other pharma stocks landed on the list as well: Pfizer (PFE) and Vertex Pharmaceuticals (VRTX).
BIIB has been climbing since Jan. 20, but a February drop could bring it right back down toward support at the $160 level. Watch out for post-earnings volatility, however, as the company is set to announce its fourth-quarter results before the open on Friday, Feb. 6.
The stock finished five of its last eight post-earnings sessions lower, including a 4.3% gap lower last February. Ahead of the event, Zacks Research pointed out that the company's multiple sclerosis (MS) drugs are facing more competition, and the revenue for those drugs has likely declined. Options traders are pricing in a 7% move for Friday's trading, much larger than the average two-year move of 2.6%.