Amgen (AMGN) Ascends While Market Falls: Some Facts to Note
Amgen (AMGN) ended the recent trading session at $304.08, demonstrating a +0.2% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the world's largest biotech drugmaker had gained 8.99% over the past month, outpacing the Medical sector's gain of 3.8% and the S&P 500's gain of 1.2% in that time.
The investment community will be paying close attention to the earnings performance of Amgen in its upcoming release. The company is slated to reveal its earnings on February 6, 2024. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 14.91% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.14 billion, up 18.99% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Amgen. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Amgen is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 15.3. This denotes a discount relative to the industry's average Forward P/E of 22.08.
Investors should also note that AMGN has a PEG ratio of 2.71 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. The Medical - Biomedical and Genetics industry had an average PEG ratio of 1.84 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
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.
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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Amgen Inc. (AMGN) : Free Stock Analysis Report
