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Why Amgen (AMGN) Dipped More Than Broader Market Today

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Amgen (AMGN - Free Report) closed the most recent trading day at $316.74, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily loss of 0.18%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the world's largest biotech drugmaker have depreciated by 4.66% over the course of the past month, underperforming the Medical sector's loss of 3.03% and the S&P 500's gain of 4.46%.

Investors will be eagerly watching for the performance of Amgen in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. The company's earnings per share (EPS) are projected to be $5.11, reflecting a 3.02% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.51 billion, reflecting a 23.32% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.48 per share and a revenue of $33.22 billion, signifying shifts of +4.45% and +17.85%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Amgen presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Amgen is at present trading with a Forward P/E ratio of 16.51. This indicates a discount in contrast to its industry's Forward P/E of 22.73.

Investors should also note that AMGN has a PEG ratio of 2.86 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.3 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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