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Amgen (AMGN) Gains But Lags Market: What You Should Know
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Amgen (AMGN - Free Report) closed at $240.47 in the latest trading session, marking a +0.7% move from the prior day. This move lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the world's largest biotech drugmaker had gained 5.18% over the past month, outpacing the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $4.19 per share. This would mark year-over-year growth of 13.24%. Our most recent consensus estimate is calling for quarterly revenue of $6.1 billion, up 3.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.54 per share and revenue of $26.04 billion. These totals would mark changes of +2.57% and +0.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Amgen currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 13.62 right now. Its industry sports an average Forward P/E of 22.78, so we one might conclude that Amgen is trading at a discount comparatively.
It is also worth noting that AMGN currently has a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.15 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 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Amgen (AMGN) Gains But Lags Market: What You Should Know
Amgen (AMGN - Free Report) closed at $240.47 in the latest trading session, marking a +0.7% move from the prior day. This move lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the world's largest biotech drugmaker had gained 5.18% over the past month, outpacing the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $4.19 per share. This would mark year-over-year growth of 13.24%. Our most recent consensus estimate is calling for quarterly revenue of $6.1 billion, up 3.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.54 per share and revenue of $26.04 billion. These totals would mark changes of +2.57% and +0.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Amgen currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 13.62 right now. Its industry sports an average Forward P/E of 22.78, so we one might conclude that Amgen is trading at a discount comparatively.
It is also worth noting that AMGN currently has a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.15 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 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.