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Amgen (AMGN) Gains But Lags Market: What You Should Know
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Amgen (AMGN - Free Report) closed at $196.41 in the latest trading session, marking a +0.12% move from the prior day. This change lagged the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the world's largest biotech drugmaker had gained 2.42% over the past month. This has outpaced the Medical sector's loss of 2.71% and the S&P 500's loss of 4.97% in that time.
Investors will be hoping for strength from AMGN as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $3.25, up 12.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.86 billion, up 1.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.24 per share and revenue of $23.34 billion, which would represent changes of +13.2% and +2.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AMGN. Recent revisions tend to reflect the latest 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.
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 0.01% lower within the past month. AMGN is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMGN has a Forward P/E ratio of 13.78 right now. Its industry sports an average Forward P/E of 23.61, so we one might conclude that AMGN is trading at a discount comparatively.
It is also worth noting that AMGN currently has a PEG ratio of 2.04. 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 1.53 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 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Amgen (AMGN) Gains But Lags Market: What You Should Know
Amgen (AMGN - Free Report) closed at $196.41 in the latest trading session, marking a +0.12% move from the prior day. This change lagged the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the world's largest biotech drugmaker had gained 2.42% over the past month. This has outpaced the Medical sector's loss of 2.71% and the S&P 500's loss of 4.97% in that time.
Investors will be hoping for strength from AMGN as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $3.25, up 12.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.86 billion, up 1.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.24 per share and revenue of $23.34 billion, which would represent changes of +13.2% and +2.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AMGN. Recent revisions tend to reflect the latest 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.
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 0.01% lower within the past month. AMGN is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMGN has a Forward P/E ratio of 13.78 right now. Its industry sports an average Forward P/E of 23.61, so we one might conclude that AMGN is trading at a discount comparatively.
It is also worth noting that AMGN currently has a PEG ratio of 2.04. 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 1.53 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 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.