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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know

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Amgen (AMGN - Free Report) closed at $303 in the latest trading session, marking a -0.06% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.1%.

Heading into today, shares of the world's largest biotech drugmaker had gained 11.74% over the past month, outpacing the Medical sector's gain of 6.12% and the S&P 500's gain of 2.75% in that time.

The upcoming earnings release of Amgen will be of great interest to investors. The company's upcoming EPS is projected at $4.69, signifying a 14.67% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.14 billion, up 18.99% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Amgen. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. Amgen is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 15.29. For comparison, its industry has an average Forward P/E of 22.55, which means Amgen is trading at a discount to the group.

It is also worth noting that AMGN currently has a PEG ratio of 2.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.66.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.

To follow AMGN in the coming trading sessions, be sure to utilize Zacks.com.


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