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Amgen (AMGN) Stock Sinks As Market Gains: What You Should Know
Amgen (AMGN - Free Report) closed at $232.95 in the latest trading session, marking a -0.75% move from the prior day. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Coming into today, shares of the world's largest biotech drugmaker had lost 2.42% in the past month. In that same time, the Medical sector lost 3.29%, while the S&P 500 lost 2.95%.
Investors will be hoping for strength from Amgen as it approaches its next earnings release. On that day, Amgen is projected to report earnings of $3.92 per share, which would represent a year-over-year decline of 7.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.2 billion, down 0.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.72 per share and revenue of $28.1 billion. These totals would mark changes of +0.17% and +6.74%, respectively, from last year.
Any recent changes to analyst estimates for Amgen should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.1% 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 13.24. This represents a discount compared to its industry's average Forward P/E of 18.52.
It is also worth noting that AMGN currently has a PEG ratio of 1.89. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 92, 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.