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Amgen (AMGN) Stock Slides as Market Rises: Facts to Know Before You Trade

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Amgen (AMGN - Free Report) ended the recent trading session at $272.44, demonstrating a -5.84% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.

Prior to today's trading, shares of the world's largest biotech drugmaker had gained 6.5% outpaced the Medical sector's loss of 0.85% and the S&P 500's gain of 0.5%.

Market participants will be closely following the financial results of Amgen in its upcoming release. The company's earnings per share (EPS) are projected to be $5.21, reflecting a 4.83% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 5.59% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $20.82 per share and a revenue of $35.22 billion, demonstrating changes of +4.94% and +5.36%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Amgen. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. Amgen presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Amgen currently has a Forward P/E ratio of 13.9. For comparison, its industry has an average Forward P/E of 19.6, which means Amgen is trading at a discount to the group.

We can additionally observe that AMGN currently boasts a PEG ratio of 2.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 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.

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


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