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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Amgen (AMGN - Free Report) closed at $207.63, marking a -0.77% move from the previous day. This change lagged the S&P 500's 0.48% gain on the day.

Heading into today, shares of the world's largest biotech drugmaker had lost 2.05% over the past month, lagging the Medical sector's loss of 1.65% and the S&P 500's gain of 3.46% in that time.

AMGN will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2021. In that report, analysts expect AMGN to post earnings of $4.10 per share. This would mark a year-over-year decline of 6.18%. Our most recent consensus estimate is calling for quarterly revenue of $6.7 billion, up 4.35% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.42 per share and revenue of $26.08 billion. These totals would mark changes of -1.08% and +2.58%, respectively, from last year.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. AMGN is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, AMGN is currently trading at a Forward P/E ratio of 12.74. Its industry sports an average Forward P/E of 27.94, so we one might conclude that AMGN is trading at a discount comparatively.

Investors should also note that AMGN has a PEG ratio of 1.54 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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