Amgen (AMGN) Outperforms Broader Market: What You Need to Know
Amgen (AMGN) closed the latest trading day at $310.26, indicating a +1.56% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.19%.
The the stock of world's largest biotech drugmaker has risen by 6.62% in the past month, leading the Medical sector's gain of 1.36% and the S&P 500's gain of 2.48%.
The upcoming earnings release of Amgen will be of great interest to investors. The company's earnings report is expected on February 6, 2024. The company is forecasted to report an EPS of $4.70, showcasing a 14.91% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $8.14 billion, up 18.99% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Amgen. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Amgen presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 15.4. This valuation marks a discount compared to its industry's average Forward P/E of 22.61.
We can also see that AMGN currently has a PEG ratio of 2.72. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Amgen Inc. (AMGN) : Free Stock Analysis Report
