Amgen (AMGN) ended the recent trading session at $279.22, demonstrating a -2.65% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the world's largest biotech drugmaker had lost 0.96% in the past month. In that same time, the Medical sector lost 0.33%, while the S&P 500 gained 3.08%.
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 $5.01, marking a 10.22% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.93 billion, reflecting a 5.04% rise from the equivalent quarter last year.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $21.1 per share and revenue of $35.66 billion. These results would represent year-over-year changes of +6.35% and +6.69%, respectively.
Any recent changes to analyst estimates for Amgen should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Amgen is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 13.59. This signifies a discount in comparison to the average Forward P/E of 19.48 for its industry.
We can also see that AMGN currently has a PEG ratio of 2.49. 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. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.68.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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