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Amgen (AMGN) Advances But Underperforms Market: Key Facts

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Amgen (AMGN - Free Report) closed the latest trading day at $275.48, indicating a +0.01% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day.

The upcoming earnings release of Amgen will be of great interest to investors. It is anticipated that the company will report an EPS of $4.69, marking a 14.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.13 billion, indicating a 18.95% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.63 per share and a revenue of $28.13 billion, indicating changes of +5.31% and +6.86%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. Currently, Amgen is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 14.78. This indicates a discount in contrast to its industry's Forward P/E of 17.15.

We can also see that AMGN currently has a PEG ratio of 2.63. 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 industry currently had an average PEG ratio of 1.88 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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