Amgen (AMGN) ended the latest trading day at $319.31, up +0.36% from the previous trading session. The company’s stock outperformed the S&P 500, which gained 0.09% for the day, while the Dow fell 0.1% and the tech-heavy Nasdaq rose 0.16%.
Heading into today, shares of the world’s largest biotechnology pharmaceutical company had gained 4.03% over the past month, while the Healthcare sector had gained 2.3%, and the S&P 500 had gained 2.83% in that same time period.
Investors will be closely watching Amgen’s performance in its upcoming earnings disclosure, as the company is expected to report EPS of $4.86, down 2.8% from the prior-year period. Meanwhile, our most recent consensus estimates are calling for revenue of $8.27 billion, up 18.34% from the prior-year period.
Looking at the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $19.47 per share and revenue of $32.98 billion, which would represent changes of +4.4% and +17.01%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Amgen. These revisions help show that short-term business trends are always changing. As such, positive estimate revisions represent analysts’ confidence in the company’s operating performance and earnings potential.
Research shows that these estimate revisions are directly correlated with near-term share price momentum, and to capitalize on this, we have created the Zacks Rank, a proprietary model which aggregates these estimate changes and provides a functioning rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven, outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past month, the Zacks Consensus EPS estimate has remained stable. Amgen currently has a Zacks Rank #3 (Hold).
In terms of valuation, Amgen is currently trading with a Forward P/E ratio of 16.34. Since its peers have an average Forward P/E of 24.31, one might conclude that Amgen is trading at a comparatively low price.
It’s also worth noting that AMGN currently has a PEG ratio of 2.87. The PEG ratio is similar to the commonly used P/E ratio, but this metric also incorporates the company’s expected earnings growth rate. The average PEG ratio for the Medical – Biomedical and Genetics sector was 2.15 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is a part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The strength of each industry group is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To track all of these stock-moving metrics, and many more, in the coming trading sessions, don’t forget to utilize Zacks.com.
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Amgen Inc. (AMGN) : Free Stock Analysis Report
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