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Amgen (AMGN) Gains As Market Dips: What You Should Know

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In the latest trading session, Amgen (AMGN) closed at $225.77, marking a +0.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the world's largest biotech drugmaker had gained 10.66% in the past month. In that same time, the Medical sector gained 4.04%, while the S&P 500 gained 4.4%.

Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $4.10 per share. This would mark year-over-year growth of 7.61%. Meanwhile, our latest consensus estimate is calling for revenue of $6.9 billion, up 4% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.84 per share and revenue of $26.05 billion. These totals would mark changes of +1.45% and +2.46%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Amgen currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Amgen currently has a Forward P/E ratio of 13.37. This valuation marks a discount compared to its industry's average Forward P/E of 24.24.

We can also see that AMGN currently has a PEG ratio of 1.61. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.67 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 158, putting it in the bottom 38% 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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