Amgen (AMGN) Outpaces Stock Market Gains: What You Should Know
Amgen (AMGN) closed at $225.96 in the latest trading session, marking a +1.17% move from the prior day.
Amgen (AMGN) closed at $225.96 in the latest trading session, marking a +1.17% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%.
Coming into today, shares of the world's largest biotech drugmaker had lost 2.17% in the past month. In that same time, the Medical sector gained 2.77%, while the S&P 500 gained 3.07%.
AMGN will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMGN to post earnings of $4.13 per share. This would mark a year-over-year decline of 5.49%. Our most recent consensus estimate is calling for quarterly revenue of $6.65 billion, up 3.58% from the year-ago period.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $16.42 per share and revenue of $25.96 billion. These results would represent year-over-year changes of -1.08% and +2.12%, respectively.
Investors might also notice recent changes to analyst estimates for AMGN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. AMGN is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMGN is currently trading at a Forward P/E ratio of 13.6. For comparison, its industry has an average Forward P/E of 27.05, which means AMGN is trading at a discount to the group.
We can also see that AMGN currently has a PEG ratio of 1.62. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.62 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 202, putting it in the bottom 21% 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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