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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know
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Amgen (AMGN - Free Report) closed the most recent trading day at $228.43, moving -0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Prior to today's trading, shares of the world's largest biotech drugmaker had lost 6.26% over the past month. This has lagged the Medical sector's loss of 3.71% and the S&P 500's loss of 4.07% 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 $3.92 per share. This would mark a year-over-year decline of 7.76%. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, down 0.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.72 per share and revenue of $28.1 billion, which would represent changes of +0.17% and +6.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Amgen should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.79% lower within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Amgen is holding a Forward P/E ratio of 12.9. For comparison, its industry has an average Forward P/E of 18.36, which means Amgen is trading at a discount to the group.
Also, we should mention that AMGN has a PEG ratio of 1.84. 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. AMGN's industry had an average PEG ratio of 1.53 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 93, which puts it in the top 37% 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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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know
Amgen (AMGN - Free Report) closed the most recent trading day at $228.43, moving -0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Prior to today's trading, shares of the world's largest biotech drugmaker had lost 6.26% over the past month. This has lagged the Medical sector's loss of 3.71% and the S&P 500's loss of 4.07% 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 $3.92 per share. This would mark a year-over-year decline of 7.76%. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, down 0.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.72 per share and revenue of $28.1 billion, which would represent changes of +0.17% and +6.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Amgen should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.79% lower within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Amgen is holding a Forward P/E ratio of 12.9. For comparison, its industry has an average Forward P/E of 18.36, which means Amgen is trading at a discount to the group.
Also, we should mention that AMGN has a PEG ratio of 1.84. 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. AMGN's industry had an average PEG ratio of 1.53 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 93, which puts it in the top 37% 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.