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Amgen (AMGN) Dips More Than Broader Market: What You Should Know

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The latest trading session saw Amgen (AMGN - Free Report) ending at $314.90, denoting a -1.49% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.92%. On the other hand, the Dow registered a loss of 0.96%, and the technology-centric Nasdaq decreased by 1.6%.

Heading into today, shares of the world's largest biotech drugmaker had lost 3.4% over the past month, outpacing the Medical sector's loss of 4.16% and lagging the S&P 500's gain of 2.68% in that time.

Market participants will be closely following the financial results of Amgen in its upcoming release. The company plans to announce its earnings on October 30, 2024. In that report, analysts expect Amgen to post earnings of $5.11 per share. This would mark year-over-year growth of 3.02%. At the same time, our most recent consensus estimate is projecting a revenue of $8.51 billion, reflecting a 23.32% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.48 per share and revenue of $33.22 billion. These totals would mark changes of +4.45% and +17.85%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. At present, Amgen boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Amgen is presently being traded at a Forward P/E ratio of 16.41. This denotes a discount relative to the industry's average Forward P/E of 22.73.

One should further note that AMGN currently holds a PEG ratio of 2.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 2.37 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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