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Amgen (AMGN) Dips More Than Broader Markets: What You Should Know

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Amgen (AMGN - Free Report) closed the most recent trading day at $227.40, moving -0.33% from the previous trading session. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the world's largest biotech drugmaker had lost 3.79% over the past month, lagging the Medical sector's gain of 3.63% and the S&P 500's gain of 3.58% in that time.

AMGN will be looking to display strength as it nears its next earnings release. On that day, AMGN is projected to report earnings of $3.38 per share, which would represent a year-over-year decline of 7.14%. Meanwhile, our latest consensus estimate is calling for revenue of $6.61 billion, up 6.62% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.15 per share and revenue of $25.39 billion. These totals would mark changes of +8.97% and +8.66%, respectively, from last 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. AMGN currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AMGN has a Forward P/E ratio of 14.13 right now. This represents a discount compared to its industry's average Forward P/E of 22.51.

Investors should also note that AMGN has a PEG ratio of 1.88 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.52 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 210, putting it in the bottom 18% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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