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Amgen (AMGN) Surpasses Market Returns: Some Facts Worth Knowing
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Amgen (AMGN - Free Report) closed the most recent trading day at $265.44, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.39%, and the technology-dominated Nasdaq saw an increase of 1.35%.
Coming into today, shares of the world's largest biotech drugmaker had gained 2.76% in the past month. In that same time, the Medical sector lost 5.19%, while the S&P 500 lost 6.19%.
Analysts and investors alike will be keeping a close eye on the performance of Amgen in its upcoming earnings disclosure. The company is expected to report EPS of $4.68, down 0.43% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.94 billion, reflecting a 4.27% rise from the equivalent quarter last year.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $18.35 per share and revenue of $27.26 billion. These results would represent year-over-year changes of +3.73% and +3.55%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. As of now, Amgen holds a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 14.22. Its industry sports an average Forward P/E of 16.52, so one might conclude that Amgen is trading at a discount comparatively.
One should further note that AMGN currently holds a PEG ratio of 3.28. 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 2.05 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Amgen (AMGN) Surpasses Market Returns: Some Facts Worth Knowing
Amgen (AMGN - Free Report) closed the most recent trading day at $265.44, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.39%, and the technology-dominated Nasdaq saw an increase of 1.35%.
Coming into today, shares of the world's largest biotech drugmaker had gained 2.76% in the past month. In that same time, the Medical sector lost 5.19%, while the S&P 500 lost 6.19%.
Analysts and investors alike will be keeping a close eye on the performance of Amgen in its upcoming earnings disclosure. The company is expected to report EPS of $4.68, down 0.43% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.94 billion, reflecting a 4.27% rise from the equivalent quarter last year.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $18.35 per share and revenue of $27.26 billion. These results would represent year-over-year changes of +3.73% and +3.55%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. As of now, Amgen holds a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 14.22. Its industry sports an average Forward P/E of 16.52, so one might conclude that Amgen is trading at a discount comparatively.
One should further note that AMGN currently holds a PEG ratio of 3.28. 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 2.05 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.