Amgen (AMGN) ended the recent trading session at $330.05, demonstrating a -3.39% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the world's largest biotech drugmaker had gained 8.33% outpaced the Medical sector's gain of 2.01% and the S&P 500's gain of 0.86%.
Analysts and investors alike will be keeping a close eye on the performance of Amgen in its upcoming earnings disclosure. On that day, Amgen is projected to report earnings of $4.74 per share, which would represent a year-over-year decline of 10.73%. Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 4.2% escalation compared to the year-ago quarter.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $21.28 per share and revenue of $36.36 billion. These results would represent year-over-year changes of +7.26% and 0%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Amgen. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. Amgen presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is presently being traded at a Forward P/E ratio of 15.75. This valuation marks a discount compared to its industry average Forward P/E of 22.11.
It is also worth noting that AMGN currently has a PEG ratio of 3.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.56.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 107, positioning it in the top 44% 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.
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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