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Amgen (AMGN) Stock Moves -1%: What You Should Know

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In the latest trading session, Amgen (AMGN - Free Report) closed at $178.40, marking a -1% move from the previous day. This change was narrower than the S&P 500's 2.71% loss on the day. Meanwhile, the Dow lost 2.91%, and the Nasdaq, a tech-heavy index, lost 2.21%.

Coming into today, shares of the world's largest biotech drugmaker had lost 6.52% in the past month. In that same time, the Medical sector lost 8.61%, while the S&P 500 lost 8.68%.

Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $3.25, up 12.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.86 billion, up 1.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.24 per share and revenue of $23.35 billion, which would represent changes of +13.2% and +2.18%, respectively, from the prior year.

Any recent changes to analyst estimates for AMGN should also be noted by investors. 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 company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. AMGN is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, AMGN currently has a Forward P/E ratio of 12.66. For comparison, its industry has an average Forward P/E of 21.73, which means AMGN is trading at a discount to the group.

Also, we should mention that AMGN has a PEG ratio of 1.87. 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. AMGN's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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