Amgen (AMGN) closed at $218.82 in the latest trading session, marking a -0.88% move from the prior day. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.
Coming into today, shares of the world's largest biotech drugmaker had lost 4.96% in the past month. In that same time, the Medical sector lost 2.13%, while the S&P 500 gained 3.98%.
Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $4.46 per share. This would mark a year-over-year decline of 4.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 1.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.12 per share and revenue of $27.73 billion, which would represent changes of +2.43% and +5.35%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Amgen currently has a Zacks Rank of #3 (Hold).
Investors should also note Amgen's current valuation metrics, including its Forward P/E ratio of 12.19. For comparison, its industry has an average Forward P/E of 19.42, which means Amgen is trading at a discount to the group.
We can also see that AMGN currently has a PEG ratio of 1.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMGN's industry had an average PEG ratio of 1.84 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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