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Here's Why Amgen (AMGN) Gained But Lagged the Market Today
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The latest trading session saw Amgen (AMGN - Free Report) ending at $307.81, denoting a +1.09% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
Shares of the world's largest biotech drugmaker have appreciated by 9.01% over the course of the past month, outperforming the Medical sector's gain of 3.16% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Amgen in its forthcoming earnings report. The company is scheduled to release its earnings on February 6, 2024. It is anticipated that the company will report an EPS of $4.70, marking a 14.91% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.14 billion, indicating a 18.99% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Amgen is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 15.35. Its industry sports an average Forward P/E of 22.48, so one might conclude that Amgen is trading at a discount comparatively.
Meanwhile, AMGN's PEG ratio is currently 2.72. 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 had an average PEG ratio of 1.76 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Amgen (AMGN) Gained But Lagged the Market Today
The latest trading session saw Amgen (AMGN - Free Report) ending at $307.81, denoting a +1.09% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
Shares of the world's largest biotech drugmaker have appreciated by 9.01% over the course of the past month, outperforming the Medical sector's gain of 3.16% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Amgen in its forthcoming earnings report. The company is scheduled to release its earnings on February 6, 2024. It is anticipated that the company will report an EPS of $4.70, marking a 14.91% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.14 billion, indicating a 18.99% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Amgen is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 15.35. Its industry sports an average Forward P/E of 22.48, so one might conclude that Amgen is trading at a discount comparatively.
Meanwhile, AMGN's PEG ratio is currently 2.72. 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 had an average PEG ratio of 1.76 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.