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Why Amgen (AMGN) Dipped More Than Broader Market Today

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Amgen (AMGN - Free Report) ended the recent trading session at $317.48, demonstrating a -0.7% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.04%.

The world's largest biotech drugmaker's stock has dropped by 3.3% in the past month, exceeding the Medical sector's loss of 3.8% and lagging the S&P 500's gain of 1.25%.

Market participants will be closely following the financial results of Amgen in its upcoming release. The company plans to announce its earnings on October 30, 2024. On that day, Amgen is projected to report earnings of $5.13 per share, which would represent year-over-year growth of 3.43%. 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 project earnings of $19.49 per share and a revenue of $33.21 billion, demonstrating changes of +4.5% and +17.82%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amgen. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 0.02% higher. Amgen currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 16.4. This denotes a discount relative to the industry's average Forward P/E of 23.19.

Investors should also note that AMGN has a PEG ratio of 2.84 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 2.13.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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