Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Amgen (AMGN - Free Report) closed at $231.10, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.33%.

Coming into today, shares of the world's largest biotech drugmaker had gained 4.84% in the past month. In that same time, the Medical sector lost 2.67%, while the S&P 500 lost 6.24%.

Amgen will be looking to display strength as it nears its next earnings release. In that report, analysts expect Amgen to post earnings of $4.01 per share. This would mark year-over-year growth of 8.38%. Meanwhile, our latest consensus estimate is calling for revenue of $6.1 billion, up 3.39% from the prior-year quarter.

AMGN's full-year Zacks Consensus Estimates are calling for earnings of $17.52 per share and revenue of $26.04 billion. These results would represent year-over-year changes of +2.46% and +0.23%, respectively.

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 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 0.56% lower within the past month. Amgen currently has a Zacks Rank of #3 (Hold).

Investors should also note Amgen's current valuation metrics, including its Forward P/E ratio of 13.38. This represents a discount compared to its industry's average Forward P/E of 20.14.

Also, we should mention that AMGN has a PEG ratio of 1.64. 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. AMGN's industry had an average PEG ratio of 1.05 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.

To follow AMGN in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Amgen Inc. (AMGN) - free report >>

Published in