Amgen (AMGN) Stock Moves -1.43%: What You Should Know
In the latest trading session, Amgen (AMGN) closed at $224.46, marking a -1.43% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the world's largest biotech drugmaker had lost 6.86% over the past month, lagging the Medical sector's loss of 5.98% and outpacing the S&P 500's loss of 8.68% in that time.
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 $4.51, down 3.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.59 billion, down 1.69% from the year-ago period.
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. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Amgen is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Amgen's current valuation metrics, including its Forward P/E ratio of 13.05. This valuation marks a discount compared to its industry's average Forward P/E of 19.64.
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 1.3 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 75, putting it in the top 30% 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.
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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