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Amgen (AMGN) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Amgen (AMGN - Free Report) closed at $227.66, marking a +0.88% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Coming into today, shares of the world's largest biotech drugmaker had gained 1.53% in the past month. In that same time, the Medical sector lost 1.55%, while the S&P 500 gained 3.18%.
Amgen will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. On that day, Amgen is projected to report earnings of $4.46 per share, which would represent a year-over-year decline of 4.09%. Our most recent consensus estimate is calling for quarterly revenue of $6.67 billion, up 1.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18 per share and revenue of $27.46 billion, which would represent changes of +1.75% and +4.33%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-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. 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.
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. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 12.53. For comparison, its industry has an average Forward P/E of 19.21, which means Amgen is trading at a discount to the group.
Meanwhile, AMGN's PEG ratio is currently 1.79. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.89 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 101, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Amgen (AMGN) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Amgen (AMGN - Free Report) closed at $227.66, marking a +0.88% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Coming into today, shares of the world's largest biotech drugmaker had gained 1.53% in the past month. In that same time, the Medical sector lost 1.55%, while the S&P 500 gained 3.18%.
Amgen will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. On that day, Amgen is projected to report earnings of $4.46 per share, which would represent a year-over-year decline of 4.09%. Our most recent consensus estimate is calling for quarterly revenue of $6.67 billion, up 1.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18 per share and revenue of $27.46 billion, which would represent changes of +1.75% and +4.33%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-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. 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.
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. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 12.53. For comparison, its industry has an average Forward P/E of 19.21, which means Amgen is trading at a discount to the group.
Meanwhile, AMGN's PEG ratio is currently 1.79. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.89 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 101, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.