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Amgen (AMGN) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Amgen (AMGN - Free Report) reached $264.07, with a -0.59% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 1.15%.

Prior to today's trading, shares of the world's largest biotech drugmaker had lost 2.24% over the past month. This has was narrower than the Medical sector's loss of 6.07% and lagged the S&P 500's loss of 1.09% in that time.

The investment community will be paying close attention to the earnings performance of Amgen in its upcoming release. The company is slated to reveal its earnings on May 2, 2024. On that day, Amgen is projected to report earnings of $3.81 per share, which would represent a year-over-year decline of 4.27%. Our most recent consensus estimate is calling for quarterly revenue of $7.4 billion, up 21.17% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.46 per share and revenue of $32.88 billion, indicating changes of +4.34% and +16.64%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% lower. Amgen is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Amgen is holding a Forward P/E ratio of 13.65. This valuation marks a discount compared to its industry's average Forward P/E of 21.96.

It is also worth noting that AMGN currently has a PEG ratio of 2.47. 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. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.83.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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