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Why Amgen (AMGN) Dipped More Than Broader Market Today
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Amgen (AMGN - Free Report) closed at $305.02 in the latest trading session, marking a -0.22% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.11%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.
The world's largest biotech drugmaker's shares have seen a decrease of 2.29% over the last month, not keeping up with the Medical sector's gain of 4.12% and the S&P 500's gain of 3.51%.
Investors will be eagerly watching for the performance of Amgen in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.86, signifying a 2.8% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.27 billion, up 18.34% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.47 per share and a revenue of $32.98 billion, representing changes of +4.4% and +17.01%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Amgen. Recent revisions tend to reflect the latest near-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 0.06% higher within the past month. Right now, Amgen possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Amgen is currently being traded at a Forward P/E ratio of 15.7. Its industry sports an average Forward P/E of 22.87, so one might conclude that Amgen is trading at a discount comparatively.
We can also see that AMGN currently has a PEG ratio of 2.76. 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 industry had an average PEG ratio of 2.12 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why Amgen (AMGN) Dipped More Than Broader Market Today
Amgen (AMGN - Free Report) closed at $305.02 in the latest trading session, marking a -0.22% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.11%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.
The world's largest biotech drugmaker's shares have seen a decrease of 2.29% over the last month, not keeping up with the Medical sector's gain of 4.12% and the S&P 500's gain of 3.51%.
Investors will be eagerly watching for the performance of Amgen in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.86, signifying a 2.8% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.27 billion, up 18.34% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.47 per share and a revenue of $32.98 billion, representing changes of +4.4% and +17.01%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Amgen. Recent revisions tend to reflect the latest near-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 0.06% higher within the past month. Right now, Amgen possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Amgen is currently being traded at a Forward P/E ratio of 15.7. Its industry sports an average Forward P/E of 22.87, so one might conclude that Amgen is trading at a discount comparatively.
We can also see that AMGN currently has a PEG ratio of 2.76. 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 industry had an average PEG ratio of 2.12 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.