Amgen (AMGN) closed at $243.51 in the latest trading session, marking a -0.55% move from the prior day. This move was narrower than the S&P 500’s daily loss of 2.01%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the world’s largest biotech drugmaker had lost 4.08% in the past month. In that same time, the Medical sector lost 2.07%, while the S&P 500 lost 6.08%.
Amgen will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.41, up 0.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, down 0.04% from the prior-year quarter.
AMGN’s full-year Zacks Consensus Estimates are calling for earnings of $17.44 per share and revenue of $26.23 billion. These results would represent year-over-year changes of +1.99% and +0.97%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. Amgen is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Amgen currently has a Forward P/E ratio of 14.04. For comparison, its industry has an average Forward P/E of 21.87, which means Amgen is trading at a discount to the group.
Meanwhile, AMGN’s PEG ratio is currently 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. AMGN’s industry had an average PEG ratio of 1.15 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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