Amgen (AMGN) closed the most recent trading day at $272.11, moving +0.99% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1% for the day. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Heading into today, shares of the world's largest biotech drugmaker had gained 3.15% over the past month, outpacing the Medical sector's loss of 1.36% and the S&P 500's loss of 2.14% in that time.
The investment community will be paying close attention to the earnings performance of Amgen in its upcoming release. The company is slated to reveal its earnings on February 4, 2025. The company is predicted to post an EPS of $5.02, indicating a 6.58% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.85 billion, up 7.92% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Amgen. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Amgen currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Amgen is at present trading with a Forward P/E ratio of 13.23. This expresses a discount compared to the average Forward P/E of 21.97 of its industry.
We can also see that AMGN currently has a PEG ratio of 2.75. 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. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.43.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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