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Amgen (AMGN) Gains As Market Dips: What You Should Know

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In the latest trading session, Amgen (AMGN - Free Report) closed at $309.89, marking a +1.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq lost 0.79%.

Heading into today, shares of the world's largest biotech drugmaker had lost 1.11% over the past month, lagging the Medical sector's gain of 0.03% and the S&P 500's gain of 3.59% in that time.

Investors will be eagerly watching for the performance of Amgen in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.86, signifying a 2.8% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.27 billion, indicating a 18.34% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.47 per share and a revenue of $32.98 billion, representing changes of +4.4% and +17.01%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Amgen. Recent revisions tend to reflect the latest near-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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Amgen is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Amgen is holding a Forward P/E ratio of 15.72. Its industry sports an average Forward P/E of 23.51, so one might conclude that Amgen is trading at a discount comparatively.

Meanwhile, AMGN's PEG ratio is currently 2.76. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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