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Amgen (AMGN) Gains But Lags Market: What You Should Know

Zacks Equity Research

Amgen (AMGN) closed the most recent trading day at $176.01, moving +0.07% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.58%.

Heading into today, shares of the world's largest biotech drugmaker had lost 4.84% over the past month, lagging the Medical sector's loss of 3.36% and the S&P 500's gain of 1.36% in that time.

AMGN will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2019. The company is expected to report EPS of $3.57, down 6.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.65 billion, down 6.8% from the year-ago period.

AMGN's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $22.54 billion. These results would represent year-over-year changes of -3.54% and -5.09%, respectively.

Investors might also notice recent changes to analyst estimates for AMGN. These recent revisions tend to reflect the evolving nature of short-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. AMGN currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AMGN is holding a Forward P/E ratio of 12.66. This valuation marks a discount compared to its industry's average Forward P/E of 23.13.

Investors should also note that AMGN has a PEG ratio of 2.15 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMGN's industry had an average PEG ratio of 1.84 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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

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