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Amgen (AMGN) Stock Dips While Market Gains: Key Facts

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Amgen (AMGN - Free Report) ended the recent trading session at $332.80, demonstrating a -0.73% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Coming into today, shares of the world's largest biotech drugmaker had gained 2.22% in the past month. In that same time, the Medical sector gained 2.67%, while the S&P 500 gained 1.54%.

The investment community will be closely monitoring the performance of Amgen in its forthcoming earnings report. The company is expected to report EPS of $5.13, up 3.43% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $8.51 billion, indicating a 23.24% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.49 per share and a revenue of $33.21 billion, signifying shifts of +4.5% and +17.82%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Amgen currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Amgen is presently trading at a Forward P/E ratio of 17.2. This valuation marks a discount compared to its industry's average Forward P/E of 23.02.

Also, we should mention that AMGN has a PEG ratio of 2.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Biomedical and Genetics industry had an average PEG ratio of 2.28 as trading concluded yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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