Yahoo Finance Amgen (AMGN) Gains As Market Dips: What You Should Know
In the latest trading session, Amgen (AMGN) closed at $238.48, marking a +0.73% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.
Coming into today, shares of the world's largest biotech drugmaker had gained 0.99% in the past month. In that same time, the Medical sector gained 0.9%, while the S&P 500 gained 0.07%.
Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $3.92 per share. This would mark a year-over-year decline of 7.76%. Our most recent consensus estimate is calling for quarterly revenue of $6.2 billion, down 0.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.73 per share and revenue of $28.1 billion. These totals would mark changes of +0.23% and +6.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Amgen is currently a Zacks Rank #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 13.36. Its industry sports an average Forward P/E of 19.44, so we one might conclude that Amgen is trading at a discount comparatively.
Also, we should mention that AMGN has a PEG ratio of 1.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amgen Inc. (AMGN) : Free Stock Analysis Report
