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Amgen (AMGN) Ascends While Market Falls: Some Facts to Note

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Amgen (AMGN - Free Report) ended the recent trading session at $322.67, demonstrating a +1.12% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Heading into today, shares of the world's largest biotech drugmaker had lost 3.6% over the past month, lagging the Medical sector's loss of 2.05% and the S&P 500's gain of 2.43% 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's earnings report is set to go public on October 30, 2024. The company is forecasted to report an EPS of $5.13, showcasing a 3.43% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.51 billion, indicating a 23.24% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.49 per share and revenue of $33.21 billion. These totals would mark changes of +4.5% and +17.82%, respectively, from last year.

Any recent changes to analyst estimates for Amgen should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Amgen boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 16.38. This valuation marks a discount compared to its industry's average Forward P/E of 22.57.

It's also important to note that AMGN currently trades at a PEG ratio of 2.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMGN's industry had an average PEG ratio of 2.14 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.

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.

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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