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In the latest market close, Amgen (AMGN) reached $262.05, with a +1.34% movement compared to the previous day. This change outpaced the S&P 500's 1.11% loss on the day. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw a decrease of 1.89%.
Shares of the world's largest biotech drugmaker witnessed a loss of 6.86% over the previous month, trailing the performance of the Medical sector with its loss of 6.22% and the S&P 500's loss of 1.7%.
Investors will be eagerly watching for the performance of Amgen in its upcoming earnings disclosure. In that report, analysts expect Amgen to post earnings of $5.02 per share. This would mark year-over-year growth of 6.58%. Simultaneously, our latest consensus estimate expects the revenue to be $8.85 billion, showing a 7.92% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Amgen. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. At present, Amgen boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 12.71. Its industry sports an average Forward P/E of 22.06, so one might conclude that Amgen is trading at a discount comparatively.
Meanwhile, AMGN's PEG ratio is currently 2.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AMGN's industry had an average PEG ratio of 1.56 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.