Amgen (AMGN) Gains As Market Dips: What You Should Know
Amgen (AMGN) closed at $247.09 in the latest trading session, marking a +0.05% move from the prior day. This move outpaced the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the world's largest biotech drugmaker had gained 4.78% over the past month. This has outpaced the Medical sector's gain of 2.19% and the S&P 500's loss of 1.89% in that time.
Investors will be hoping for strength from Amgen as it approaches its next earnings release, which is expected to be August 4, 2022. The company is expected to report EPS of $4.40, up 0.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.53 billion, up 0.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.37 per share and revenue of $26.23 billion. These totals would mark changes of +1.58% and +0.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.19% lower. Amgen currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Amgen currently has a Forward P/E ratio of 14.22. Its industry sports an average Forward P/E of 21.92, so we one might conclude that Amgen is trading at a discount comparatively.
Investors should also note that AMGN has a PEG ratio of 1.98 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
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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