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

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In the latest trading session, Amgen (AMGN - Free Report) closed at $225.99, marking a -0.39% move from the previous day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.01%.

Prior to today's trading, shares of the world's largest biotech drugmaker had lost 5.23% over the past month. This has was narrower than the Medical sector's loss of 6.56% and the S&P 500's loss of 9.7% in that time.

Amgen will be looking to display strength as it nears its next earnings release. On that day, Amgen is projected to report earnings of $4.51 per share, which would represent a year-over-year decline of 3.43%. Our most recent consensus estimate is calling for quarterly revenue of $6.59 billion, down 1.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.45 per share and revenue of $26.15 billion, which would represent changes of +2.05% and +0.66%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Amgen is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 13. For comparison, its industry has an average Forward P/E of 18.79, which means Amgen is trading at a discount to the group.

Meanwhile, AMGN's PEG ratio is currently 1.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.2 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.

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


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