Amgen (AMGN) ended the recent trading session at $355.60, demonstrating a +1.66% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.83%.
The world's largest biotech drugmaker's shares have seen a decrease of 7.37% over the last month, not keeping up with the Medical sector's loss of 3.18% and the S&P 500's gain of 0.8%.
The upcoming earnings release of Amgen will be of great interest to investors. The company is forecasted to report an EPS of $4.74, showcasing a 3.27% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.51 billion, indicating a 4.42% growth compared to the corresponding quarter of the prior year.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $22.22 per share and revenue of $37.86 billion. These results would represent year-over-year changes of +1.74% and +3.02%, respectively.
Any recent changes to analyst estimates for Amgen should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Amgen is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 15.74. This represents a discount compared to its industry average Forward P/E of 20.64.
One should further note that AMGN currently holds a PEG ratio of 3.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Biomedical and Genetics industry had an average PEG ratio of 1.64 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 41% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amgen Inc. (AMGN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).