The latest trading session saw Amgen (AMGN) ending at $267.10, denoting a -1.14% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.12% for the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.
The world's largest biotech drugmaker's stock has climbed by 1.38% in the past month, exceeding the Medical sector's loss of 2.25% and the S&P 500's loss of 3.45%.
The investment community will be closely monitoring the performance of Amgen in its forthcoming earnings report. The company is expected to report EPS of $5.02, up 6.58% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.85 billion, up 7.92% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amgen. Such recent modifications usually signify the changing landscape of near-term business trends. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.05% higher within the past month. Amgen is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Amgen currently has a Forward P/E ratio of 13.27. For comparison, its industry has an average Forward P/E of 22.48, which means Amgen is trading at a discount to the group.
It is also worth noting that AMGN currently has a PEG ratio of 2.76. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.43.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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