Advertisement
UK markets close in 7 hours 1 minute
  • FTSE 100

    7,959.82
    +27.84 (+0.35%)
     
  • FTSE 250

    19,795.90
    -14.76 (-0.07%)
     
  • AIM

    741.80
    -0.31 (-0.04%)
     
  • GBP/EUR

    1.1678
    +0.0009 (+0.08%)
     
  • GBP/USD

    1.2591
    -0.0047 (-0.38%)
     
  • Bitcoin GBP

    56,158.02
    +698.12 (+1.26%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CRUDE OIL

    81.64
    +0.29 (+0.36%)
     
  • GOLD FUTURES

    2,215.60
    +2.90 (+0.13%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,497.16
    +20.07 (+0.11%)
     
  • CAC 40

    8,238.84
    +34.03 (+0.41%)
     

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

In the latest trading session, Amgen (AMGN) closed at $249.75, marking a -0.78% move from the previous day. This change lagged the S&P 500's daily gain of 1.21%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 0.16%.

Prior to today's trading, shares of the world's largest biotech drugmaker had gained 2.56% over the past month. This has outpaced the Medical sector's gain of 0.38% and lagged the S&P 500's gain of 3.2% in that time.

Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. This is expected to be August 4, 2022. In that report, analysts expect Amgen to post earnings of $4.40 per share. This would mark year-over-year growth of 0.46%. Our most recent consensus estimate is calling for quarterly revenue of $6.54 billion, up 0.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.38 per share and revenue of $26.26 billion. These totals would mark changes of +1.64% and +1.1%, respectively, from last year.

ADVERTISEMENT

It is also important to note the recent changes to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Amgen currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 14.49. For comparison, its industry has an average Forward P/E of 24.47, which means Amgen is trading at a discount to the group.

Investors should also note that AMGN has a PEG ratio of 2.08 right now. 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 industry currently had an average PEG ratio of 1.46 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.

To follow AMGN in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research