Back to top

Image: Bigstock

Amgen (AMGN) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Amgen (AMGN - Free Report) closed the most recent trading day at $255.46, moving +0.03% from the previous trading session. This change outpaced the S&P 500's 1.48% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the world's largest biotech drugmaker had gained 9.05% over the past month, outpacing the Medical sector's gain of 0.83% and the S&P 500's gain of 0.08% in that time.

Investors will be hoping for strength from Amgen as it approaches its next earnings release, which is expected to be April 27, 2022. In that report, analysts expect Amgen to post earnings of $4.20 per share. This would mark year-over-year growth of 13.51%. Our most recent consensus estimate is calling for quarterly revenue of $6.07 billion, up 2.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.67 per share and revenue of $26.1 billion. These totals would mark changes of +3.33% and +0.48%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. Amgen is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Amgen has a Forward P/E ratio of 14.46 right now. This valuation marks a discount compared to its industry's average Forward P/E of 23.34.

Meanwhile, AMGN's PEG ratio is currently 1.53. 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 1.31 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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