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

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Amgen (AMGN - Free Report) closed the most recent trading day at $247.69, moving +0.91% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.53%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the world's largest biotech drugmaker had lost 1.17% over the past month, outpacing the Medical sector's loss of 3.31% and the S&P 500's loss of 3.1% in that time.

Wall Street will be looking for positivity from Amgen as it approaches its next earnings report date. In that report, analysts expect Amgen to post earnings of $4.27 per share. This would mark a year-over-year decline of 8.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.59 billion, down 1.69% from the year-ago period.

AMGN's full-year Zacks Consensus Estimates are calling for earnings of $17.45 per share and revenue of $26.15 billion. These results would represent year-over-year changes of +2.05% and +0.66%, respectively.

Investors might also notice recent changes to analyst estimates for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.21% higher within the past month. 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 14.06. This valuation marks a discount compared to its industry's average Forward P/E of 19.47.

It is also worth noting that AMGN currently has a PEG ratio of 1.98. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.43 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 71, putting it in the top 29% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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