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Amgen (AMGN) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Amgen (AMGN - Free Report) closed at $269.35, marking a -0.56% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.59%.

The world's largest biotech drugmaker's shares have seen a decrease of 0.09% over the last month, not keeping up with the Medical sector's gain of 3.38% and the S&P 500's gain of 5.08%.

Analysts and investors alike will be keeping a close eye on the performance of Amgen in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.67, indicating a 14.18% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.07 billion, reflecting a 18.01% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.62 per share and revenue of $28.12 billion, indicating changes of +5.26% and +6.83%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Amgen. Recent revisions tend to reflect the latest near-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. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. As of now, Amgen holds a Zacks Rank of #3 (Hold).

Looking at valuation, Amgen is presently trading at a Forward P/E ratio of 14.55. Its industry sports an average Forward P/E of 15.35, so one might conclude that Amgen is trading at a discount comparatively.

Meanwhile, AMGN's PEG ratio is currently 2.59. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.61.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% 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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