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Amgen (AMGN) Gains But Lags Market: What You Should Know
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Amgen (AMGN - Free Report) closed the most recent trading day at $263.16, moving +0.67% from the previous trading session. This change lagged the S&P 500's 1.75% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 7.84%.
Prior to today's trading, shares of the world's largest biotech drugmaker had lost 8.72% over the past month. This has lagged the Medical sector's gain of 0.28% and the S&P 500's loss of 4.4% 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 $4.02 per share. This would mark a year-over-year decline of 7.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.74 billion, down 1.57% from the year-ago period.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $17.62 per share and revenue of $26.23 billion. These results would represent year-over-year changes of +3.04% and +0.95%, respectively.
Investors might also notice 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.
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.
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 0.13% lower. Amgen currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Amgen is holding a Forward P/E ratio of 14.84. For comparison, its industry has an average Forward P/E of 19.5, which means Amgen is trading at a discount to the group.
It is also worth noting that AMGN currently has a PEG ratio of 1.94. 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 was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amgen (AMGN) Gains But Lags Market: What You Should Know
Amgen (AMGN - Free Report) closed the most recent trading day at $263.16, moving +0.67% from the previous trading session. This change lagged the S&P 500's 1.75% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 7.84%.
Prior to today's trading, shares of the world's largest biotech drugmaker had lost 8.72% over the past month. This has lagged the Medical sector's gain of 0.28% and the S&P 500's loss of 4.4% 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 $4.02 per share. This would mark a year-over-year decline of 7.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.74 billion, down 1.57% from the year-ago period.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $17.62 per share and revenue of $26.23 billion. These results would represent year-over-year changes of +3.04% and +0.95%, respectively.
Investors might also notice 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.
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.
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 0.13% lower. Amgen currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Amgen is holding a Forward P/E ratio of 14.84. For comparison, its industry has an average Forward P/E of 19.5, which means Amgen is trading at a discount to the group.
It is also worth noting that AMGN currently has a PEG ratio of 1.94. 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 was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.