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Amgen (AMGN) Dips More Than Broader Markets: What You Should Know

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Amgen (AMGN) closed at $235.70 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.5%.

Prior to today's trading, shares of the world's largest biotech drugmaker had lost 2.91% over the past month. This has lagged the Medical sector's loss of 2.15% and was narrower than the S&P 500's loss of 6.69% in that time.

Investors will be hoping for strength from Amgen as it approaches its next earnings release. On that day, Amgen is projected to report earnings of $4.41 per share, which would represent year-over-year growth of 0.68%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, down 0.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.44 per share and revenue of $26.23 billion. These totals would mark changes of +1.99% and +0.97%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Amgen. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.3% lower within the past month. Amgen currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 13.58 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.68.

Also, we should mention that AMGN has a PEG ratio of 2.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.03 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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