Amgen (AMGN) closed the most recent trading day at $280.35, moving +1.03% from the previous trading session. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.31%.
The world's largest biotech drugmaker's stock has dropped by 0.7% in the past month, falling short of the Medical sector's gain of 3.46% and the S&P 500's gain of 5.05%.
The upcoming earnings release of Amgen will be of great interest to investors. The company is forecasted to report an EPS of $5.21, showcasing a 4.83% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 5.59% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $20.82 per share and revenue of $35.22 billion. These totals would mark changes of +4.94% and +5.36%, respectively, from last year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Amgen presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Amgen currently has a Forward P/E ratio of 13.33. For comparison, its industry has an average Forward P/E of 19.83, which means Amgen is trading at a discount to the group.
One should further note that AMGN currently holds a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.37.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
