U.S. Markets close in 3 hrs 33 mins

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

Zacks Equity Research

Amgen (AMGN) closed the most recent trading day at $241.94, moving -0.37% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.05%.

Prior to today's trading, shares of the world's largest biotech drugmaker had gained 8.17% over the past month. This has outpaced the Medical sector's gain of 5.44% and the S&P 500's gain of 2.48% in that time.

Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. In that report, analysts expect AMGN to post earnings of $3.43 per share. This would mark year-over-year growth of 0.29%. Our most recent consensus estimate is calling for quarterly revenue of $5.98 billion, down 3.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.57 per share and revenue of $23.15 billion, which would represent changes of +1.18% and -2.5%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AMGN. Recent revisions tend to reflect the latest 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.

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. Within the past 30 days, our consensus EPS projection has moved 1.04% higher. AMGN is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, AMGN is holding a Forward P/E ratio of 16.67. For comparison, its industry has an average Forward P/E of 24.92, which means AMGN is trading at a discount to the group.

We can also see that AMGN currently has a PEG ratio of 2.31. 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. AMGN's industry had an average PEG ratio of 1.76 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 61, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.