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

Zacks Equity Research
Sierra Bancorp (BSRR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, Amgen (AMGN) closed at $174.45, marking a -0.06% move from the previous day. This change lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.53%.

Prior to today's trading, shares of the world's largest biotech drugmaker had gained 1.39% over the past month. This has outpaced the Medical sector's loss of 1.29% and the S&P 500's loss of 3.77% in that time.

Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. In that report, analysts expect AMGN to post earnings of $3.60 per share. This would mark a year-over-year decline of 6.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.66 billion, down 6.63% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.94 per share and revenue of $22.58 billion. These totals would mark changes of -3.19% and -4.94%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AMGN. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.12% higher. AMGN is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AMGN's current valuation metrics, including its Forward P/E ratio of 12.52. This valuation marks a discount compared to its industry's average Forward P/E of 25.25.

Meanwhile, AMGN's PEG ratio is currently 2.3. 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. AMGN's industry had an average PEG ratio of 1.82 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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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