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Why Amgen (AMGN) Outpaced the Stock Market Today

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Amgen (AMGN - Free Report) closed the latest trading day at $271.48, indicating a +0.95% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.87%. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw an increase of 1.11%.

Heading into today, shares of the world's largest biotech drugmaker had lost 2.62% over the past month, outpacing the Medical sector's loss of 6.67% and the S&P 500's loss of 3.97% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Amgen in its upcoming earnings disclosure. The company's earnings report is set to go public on May 2, 2024. The company is forecasted to report an EPS of $3.76, showcasing a 5.53% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $7.39 billion, indicating a 21.11% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.45 per share and a revenue of $32.87 billion, representing changes of +4.29% and +16.59%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Amgen is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Amgen is presently being traded at a Forward P/E ratio of 13.82. Its industry sports an average Forward P/E of 22.07, so one might conclude that Amgen is trading at a discount comparatively.

We can also see that AMGN currently has a PEG ratio of 2.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.66 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

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.

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