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Amgen (AMGN) Gains But Lags Market: What You Should Know
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Amgen (AMGN - Free Report) closed at $244.79 in the latest trading session, marking a +1.06% move from the prior day. This move lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the world's largest biotech drugmaker had lost 2.47% over the past month, outpacing the Medical sector's loss of 6.45% and the S&P 500's loss of 5.51% in that time.
Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. In that report, analysts expect Amgen to post earnings of $4.27 per share. This would mark a year-over-year decline of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $6.59 billion, down 1.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.45 per share and revenue of $26.15 billion, which would represent changes of +2.05% and +0.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Amgen. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.19% higher. Amgen currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 13.88. Its industry sports an average Forward P/E of 19.75, 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 1.95. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.36 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 78, putting it in the top 31% 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.
To follow AMGN in the coming trading sessions, be sure to utilize Zacks.com.
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Amgen (AMGN) Gains But Lags Market: What You Should Know
Amgen (AMGN - Free Report) closed at $244.79 in the latest trading session, marking a +1.06% move from the prior day. This move lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the world's largest biotech drugmaker had lost 2.47% over the past month, outpacing the Medical sector's loss of 6.45% and the S&P 500's loss of 5.51% in that time.
Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. In that report, analysts expect Amgen to post earnings of $4.27 per share. This would mark a year-over-year decline of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $6.59 billion, down 1.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.45 per share and revenue of $26.15 billion, which would represent changes of +2.05% and +0.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Amgen. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.19% higher. Amgen currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 13.88. Its industry sports an average Forward P/E of 19.75, 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 1.95. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.36 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 78, putting it in the top 31% 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.
To follow AMGN in the coming trading sessions, be sure to utilize Zacks.com.