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

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Amgen (AMGN - Free Report) closed the most recent trading day at $166.70, moving -1.38% from the previous trading session. This change lagged the S&P 500's daily loss of 1.32%. Elsewhere, the Dow lost 1.41%, while the tech-heavy Nasdaq lost 1.51%.

Heading into today, shares of the world's largest biotech drugmaker had lost 4.23% over the past month, lagging the Medical sector's loss of 1.9% and outpacing the S&P 500's loss of 5.09% in that time.

Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. On that day, AMGN is projected to report earnings of $3.60 per share, which would represent a year-over-year decline of 6.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.66 billion, down 6.63% from the year-ago period.

AMGN's full-year Zacks Consensus Estimates are calling for earnings of $13.94 per share and revenue of $22.58 billion. These results would represent year-over-year changes of -3.19% and -4.94%, respectively.

Any recent changes to analyst estimates for AMGN should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. AMGN is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, AMGN currently has a Forward P/E ratio of 12.12. This represents a discount compared to its industry's average Forward P/E of 25.25.

We can also see that AMGN currently has a PEG ratio of 2.23. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.

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