Amgen (AMGN) closed at $245.48 in the latest trading session, marking a -0.38% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.08%. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq added 0.22%.
Heading into today, shares of the world’s largest biotech drugmaker had gained 2.37% over the past month, outpacing the Medical sector’s gain of 1.97% and the S&P 500’s gain of 1.03% 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 $4.44 per share, which would represent year-over-year growth of 1.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.54 billion, up 0.17% from the year-ago period.
AMGN’s full-year Zacks Consensus Estimates are calling for earnings of $17.51 per share and revenue of $26.26 billion. These results would represent year-over-year changes of +2.4% and +1.1%, respectively.
Investors might also notice recent changes to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 0.11% higher within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Amgen’s current valuation metrics, including its Forward P/E ratio of 14.07. This valuation marks a discount compared to its industry’s average Forward P/E of 22.05.
Meanwhile, AMGN’s PEG ratio is currently 2.11. 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. Medical – Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.18 based on yesterday’s closing prices.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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