In the latest trading session, Amgen (AMGN) closed at $244.56, marking a -0.13% move from the previous day. This change was narrower than the S&P 500’s 1.26% loss on the day. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.44%.
Prior to today’s trading, shares of the world’s largest biotech drugmaker had gained 4.48% over the past month. This has lagged the Medical sector’s gain of 4.88% and the S&P 500’s gain of 6.07% in that time.
Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. On that day, Amgen is projected to report earnings of $4.19 per share, which would represent year-over-year growth of 13.24%. Our most recent consensus estimate is calling for quarterly revenue of $6.1 billion, up 3.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.57 per share and revenue of $26.04 billion. These totals would mark changes of +2.75% and +0.23%, respectively, from 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. Amgen is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Amgen’s current valuation metrics, including its Forward P/E ratio of 13.94. This represents a discount compared to its industry’s average Forward P/E of 23.91.
Meanwhile, AMGN’s PEG ratio is currently 1.47. 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. AMGN’s industry had an average PEG ratio of 1.22 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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