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

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In the latest trading session, Amgen (AMGN) closed at $228.59, marking a +1.5% move from the previous day. The stock lagged the S&P 500's daily gain of 1.86%. Meanwhile, the Dow gained 1.79%, and the Nasdaq, a tech-heavy index, added 0.4%.

Coming into today, shares of the world's largest biotech drugmaker had lost 1.52% in the past month. In that same time, the Medical sector lost 1.79%, while the S&P 500 lost 5.05%.

Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. The company is expected to report EPS of $4.01, up 8.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.1 billion, up 3.39% from the year-ago period.

AMGN's full-year Zacks Consensus Estimates are calling for earnings of $17.52 per share and revenue of $26.04 billion. These results would represent year-over-year changes of +2.46% and +0.23%, respectively.

Any recent changes to analyst estimates for Amgen should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.64% lower. Amgen is currently a Zacks Rank #3 (Hold).

In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 12.86. This valuation marks a discount compared to its industry's average Forward P/E of 20.5.

We can also see that AMGN currently has a PEG ratio of 1.58. 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 1.12 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 153, which puts it in the bottom 40% 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.

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


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