Yahoo Finance Amgen (AMGN) Laps the Stock Market: Here's Why
Amgen (AMGN) ended the recent trading session at $270, demonstrating a +1.33% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw an increase of 1.68%.
Shares of the world's largest biotech drugmaker have depreciated by 3.46% over the course of the past month, outperforming the Medical sector's loss of 4.72% and lagging the S&P 500's gain of 0.8%.
The upcoming earnings release of Amgen will be of great interest to investors. The company's earnings report is expected on May 2, 2024. The company is forecasted to report an EPS of $3.83, showcasing a 3.77% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $7.44 billion, reflecting a 21.93% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.49 per share and revenue of $32.94 billion, indicating changes of +4.5% and +16.83%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.07% higher. Currently, Amgen is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Amgen is at present trading with a Forward P/E ratio of 13.67. For comparison, its industry has an average Forward P/E of 23.42, which means Amgen is trading at a discount to the group.
It is also worth noting that AMGN currently has a PEG ratio of 2.52. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Amgen Inc. (AMGN) : Free Stock Analysis Report
