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Amgen (AMGN) ended the recent trading session at $314.38, demonstrating a -0.53% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.77%. Meanwhile, the Dow gained 1.42%, and the Nasdaq, a tech-heavy index, added 2.28%.
Shares of the world's largest biotech drugmaker witnessed a gain of 4.3% over the previous month, beating the performance of the Medical sector with its loss of 1.17% and the S&P 500's loss of 5.73%.
Investors will be eagerly watching for the performance of Amgen in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.18, reflecting a 5.56% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.01 billion, up 7.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.63 per share and revenue of $35 billion, indicating changes of +3.98% and +4.72%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Amgen. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. As of now, Amgen holds a Zacks Rank of #3 (Hold).
In the context of valuation, Amgen is at present trading with a Forward P/E ratio of 15.32. This expresses a discount compared to the average Forward P/E of 18.52 of its industry.
Also, we should mention that AMGN has a PEG ratio of 2.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.