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

The latest trading session saw Amgen (AMGN) ending at $298.50, denoting a -0.86% adjustment from its last day's close. This change lagged the S&P 500's 0.23% gain on the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

The world's largest biotech drugmaker's shares have seen a decrease of 5.63% over the last month, not keeping up with the Medical sector's gain of 2.69% and the S&P 500's gain of 3.96%.

The investment community will be closely monitoring the performance of Amgen in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4.86, marking a 2.8% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.27 billion, up 18.34% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.47 per share and a revenue of $32.98 billion, indicating changes of +4.4% and +17.01%, respectively, from the former year.

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Any recent changes to analyst estimates for Amgen should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Right now, Amgen possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 15.47. Its industry sports an average Forward P/E of 23.81, so one might conclude that Amgen is trading at a discount comparatively.

It is also worth noting that AMGN currently has a PEG ratio of 2.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.95.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Amgen Inc. (AMGN) : Free Stock Analysis Report

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