Amgen (AMGN) closed at $194.94 in the latest trading session, marking a -0.23% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.53%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the world’s largest biotech drugmaker had lost 5.6% in the past month. In that same time, the Medical sector lost 0.4%, while the S&P 500 gained 3.59%.
Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. On that day, AMGN is projected to report earnings of $3.47 per share, which would represent a year-over-year decline of 5.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.63 billion, down 4.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.30 per share and revenue of $22.81 billion, which would represent changes of -0.69% and -3.96%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMGN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.04% higher within the past month. AMGN is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that AMGN has a Forward P/E ratio of 13.67 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 28.16.
Meanwhile, AMGN’s PEG ratio is currently 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Medical – Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.66 based on yesterday’s closing prices.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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