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Amgen (AMGN) Stock Moves -0.2%: What You Should Know

·3 min read

Amgen (AMGN) closed the most recent trading day at $227.66, moving -0.2% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the world's largest biotech drugmaker had lost 8.96% over the past month, lagging the Medical sector's loss of 5.51% and the S&P 500's loss of 7.59% in that time.

Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $4.27 per share. This would mark a year-over-year decline of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $6.59 billion, down 1.69% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.45 per share and revenue of $26.15 billion. These totals would mark changes of +2.05% and +0.66%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 0.21% higher. Amgen is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 13.07 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.28.

Also, we should mention that AMGN has a PEG ratio of 1.84. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.36 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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