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Why the Market Dipped But Amgen (AMGN) Gained Today
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Amgen (AMGN - Free Report) closed the most recent trading day at $330.64, moving +0.04% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%.
Heading into today, shares of the world's largest biotech drugmaker had gained 0.47% over the past month, lagging the Medical sector's gain of 4.7% and the S&P 500's gain of 3.64% in that time.
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 $4.81, indicating a 3.02% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, up 23.24% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.49 per share and revenue of $33.21 billion, which would represent changes of +4.5% and +17.82%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amgen. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Right now, Amgen possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Amgen is holding a Forward P/E ratio of 16.96. Its industry sports an average Forward P/E of 23.74, so one might conclude that Amgen is trading at a discount comparatively.
It's also important to note that AMGN currently trades at a PEG ratio of 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Why the Market Dipped But Amgen (AMGN) Gained Today
Amgen (AMGN - Free Report) closed the most recent trading day at $330.64, moving +0.04% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%.
Heading into today, shares of the world's largest biotech drugmaker had gained 0.47% over the past month, lagging the Medical sector's gain of 4.7% and the S&P 500's gain of 3.64% in that time.
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 $4.81, indicating a 3.02% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, up 23.24% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.49 per share and revenue of $33.21 billion, which would represent changes of +4.5% and +17.82%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amgen. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Right now, Amgen possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Amgen is holding a Forward P/E ratio of 16.96. Its industry sports an average Forward P/E of 23.74, so one might conclude that Amgen is trading at a discount comparatively.
It's also important to note that AMGN currently trades at a PEG ratio of 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.