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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Amgen (AMGN - Free Report) closed at $272.26, marking a -1.63% move from the previous day. This move lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the world's largest biotech drugmaker had lost 2.99% over the past month. This has lagged the Medical sector's gain of 4.79% and the S&P 500's gain of 0.09% in that time.
Amgen will be looking to display strength as it nears its next earnings release. On that day, Amgen is projected to report earnings of $4.06 per share, which would represent a year-over-year decline of 6.88%. Meanwhile, our latest consensus estimate is calling for revenue of $6.75 billion, down 1.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.66 per share and revenue of $26.22 billion. These totals would mark changes of +3.27% and +0.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Amgen. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. 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.
Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 15.67 right now. This represents a discount compared to its industry's average Forward P/E of 18.13.
Investors should also note that AMGN has a PEG ratio of 2.04 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.35 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 59, putting it in the top 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Amgen (AMGN - Free Report) closed at $272.26, marking a -1.63% move from the previous day. This move lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the world's largest biotech drugmaker had lost 2.99% over the past month. This has lagged the Medical sector's gain of 4.79% and the S&P 500's gain of 0.09% in that time.
Amgen will be looking to display strength as it nears its next earnings release. On that day, Amgen is projected to report earnings of $4.06 per share, which would represent a year-over-year decline of 6.88%. Meanwhile, our latest consensus estimate is calling for revenue of $6.75 billion, down 1.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.66 per share and revenue of $26.22 billion. These totals would mark changes of +3.27% and +0.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Amgen. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. 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.
Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 15.67 right now. This represents a discount compared to its industry's average Forward P/E of 18.13.
Investors should also note that AMGN has a PEG ratio of 2.04 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.35 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 59, putting it in the top 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.