Amgen (AMGN) closed the most recent trading day at $265.70, moving -0.64% from the previous trading session. This change was narrower than the S&P 500’s 0.9% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the world’s largest biotech drugmaker had lost 6.92% in the past month. In that same time, the Medical sector gained 2.93%, while the S&P 500 lost 2.66%.
Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. The company is expected to report EPS of $4.03, down 7.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.75 billion, down 1.47% from the prior-year quarter.
AMGN’s full-year Zacks Consensus Estimates are calling for earnings of $17.62 per share and revenue of $26.22 billion. These results would represent year-over-year changes of +3.04% and +0.93%, 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. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Amgen is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Amgen currently has a Forward P/E ratio of 15.18. This valuation marks a discount compared to its industry’s average Forward P/E of 17.52.
Meanwhile, AMGN’s PEG ratio is currently 1.98. 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. The Medical – Biomedical and Genetics was holding an average PEG ratio of 1.34 at yesterday’s closing price.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.
To follow AMGN in the coming trading sessions, be sure to utilize Zacks.com.
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