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Amgen (AMGN) Gains But Lags Market: What You Should Know

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Amgen (AMGN - Free Report) closed the most recent trading day at $184.28, moving +0.14% from the previous trading session. This move lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the world's largest biotech drugmaker had gained 8.86% over the past month. This has outpaced the Medical sector's gain of 3.02% and the S&P 500's gain of 3.62% in that time.

Investors will be hoping for strength from AMGN as it approaches its next earnings release. On that day, AMGN is projected to report earnings of $3.59 per share, which would represent a year-over-year decline of 6.27%. Our most recent consensus estimate is calling for quarterly revenue of $5.66 billion, down 6.63% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.92 per share and revenue of $22.58 billion. These totals would mark changes of -3.33% and -4.94%, respectively, from last year.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. AMGN is currently a Zacks Rank #3 (Hold).

In terms of valuation, AMGN is currently trading at a Forward P/E ratio of 13.23. This represents a discount compared to its industry's average Forward P/E of 23.78.

It is also worth noting that AMGN currently has a PEG ratio of 2.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 2.06 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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