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Amgen (AMGN) Gains But Lags Market: What You Should Know

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In the latest trading session, Amgen (AMGN - Free Report) closed at $228.93, marking a +0.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.

Coming into today, shares of the world's largest biotech drugmaker had gained 0.37% in the past month. In that same time, the Medical sector lost 7.9%, while the S&P 500 lost 4.63%.

Investors will be hoping for strength from Amgen as it approaches its next earnings release, which is expected to be February 7, 2022. On that day, Amgen is projected to report earnings of $4.14 per share, which would represent year-over-year growth of 8.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.92 billion, up 4.31% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.19% lower. Amgen is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Amgen's current valuation metrics, including its Forward P/E ratio of 12.97. Its industry sports an average Forward P/E of 17.15, so we one might conclude that Amgen is trading at a discount comparatively.

It is also worth noting that AMGN currently has a PEG ratio of 1.54. 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 1.1 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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