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Amgen (AMGN) Stock Moves -0.3%: What You Should Know

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Amgen (AMGN - Free Report) closed at $283.58 in the latest trading session, marking a -0.3% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 1.34%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.62%.

Coming into today, shares of the world's largest biotech drugmaker had gained 7.61% in the past month. In that same time, the Medical sector lost 2.87%, while the S&P 500 lost 1.57%.

Market participants will be closely following the financial results of Amgen in its upcoming release. The company plans to announce its earnings on October 31, 2023. The company's upcoming EPS is projected at $4.62, signifying a 1.7% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.93 billion, reflecting a 4.23% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.31 per share and a revenue of $27.24 billion, representing changes of +3.5% and +3.49%, respectively, from the prior year.

Any recent changes to analyst estimates for Amgen should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. Amgen is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Amgen is presently trading at a Forward P/E ratio of 15.54. This expresses a discount compared to the average Forward P/E of 16.97 of its industry.

Investors should also note that AMGN has a PEG ratio of 3.67 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.93.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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