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Amgen (AMGN) Outperforms Broader Market: What You Need to Know

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Amgen (AMGN - Free Report) closed the most recent trading day at $296.85, moving +2.18% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.

Shares of the world's largest biotech drugmaker have appreciated by 0.33% over the course of the past month, underperforming the Medical sector's gain of 2.8%, and the S&P 500's gain of 5.13%.

Market participants will be closely following the financial results of Amgen in its upcoming release. It is anticipated that the company will report an EPS of $5.21, marking a 4.83% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.86 billion, up 5.59% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.82 per share and a revenue of $35.22 billion, signifying shifts of +4.94% and +5.36%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Amgen. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Amgen is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 13.95. For comparison, its industry has an average Forward P/E of 18.69, which means Amgen is trading at a discount to the group.

One should further note that AMGN currently holds a PEG ratio of 2.63. 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 1.36 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 Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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