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

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In the latest trading session, Amgen (AMGN - Free Report) closed at $196.69, marking a +0.31% move from the previous day. This change lagged the S&P 500's 0.91% gain on the day. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 1.02%.

Coming into today, shares of the world's largest biotech drugmaker had lost 0.4% in the past month. In that same time, the Medical sector lost 5.07%, while the S&P 500 lost 2.74%.

Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. This is expected to be October 29, 2019. On that day, AMGN is projected to report earnings of $3.47 per share, which would represent a year-over-year decline of 5.96%. Meanwhile, our latest consensus estimate is calling for revenue of $5.63 billion, down 4.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.31 per share and revenue of $22.81 billion. These totals would mark changes of -0.63% and -3.93%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AMGN. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. AMGN is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that AMGN has a Forward P/E ratio of 13.71 right now. For comparison, its industry has an average Forward P/E of 27.6, which means AMGN is trading at a discount to the group.

We can also see that AMGN currently has a PEG ratio of 2.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.69 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 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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