Amgen (AMGN) closed at $280.19 in the latest trading session, marking a -1.22% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.45%.
The stock of world's largest biotech drugmaker has fallen by 1.59% in the past month, lagging the Medical sector's gain of 5.47% and the S&P 500's gain of 3.07%.
The investment community will be paying close attention to the earnings performance of Amgen in its upcoming release. In that report, analysts expect Amgen to post earnings of $5.01 per share. This would mark a year-over-year decline of 10.22%. Alongside, our most recent consensus estimate is anticipating revenue of $8.93 billion, indicating a 5.04% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.1 per share and a revenue of $35.62 billion, signifying shifts of +6.35% and +6.58%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. Amgen is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Amgen is currently being traded at a Forward P/E ratio of 13.44. This denotes a discount relative to the industry average Forward P/E of 22.21.
We can also see that AMGN currently has a PEG ratio of 2.46. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.75.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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