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In the latest trading session, Amgen (AMGN) closed at $318.65, marking a +0.47% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq lost 1.71%.
The the stock of world's largest biotech drugmaker has risen by 8.93% in the past month, leading the Medical sector's gain of 0.53% and the S&P 500's loss of 7.03%.
Analysts and investors alike will be keeping a close eye on the performance of Amgen in its upcoming earnings disclosure. In that report, analysts expect Amgen to post earnings of $4.18 per share. This would mark year-over-year growth of 5.56%. In the meantime, our current consensus estimate forecasts the revenue to be $8.01 billion, indicating a 7.52% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.63 per share and revenue of $35 billion, which would represent changes of +3.98% and +4.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Amgen. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.14% higher. Amgen presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Amgen is currently trading at a Forward P/E ratio of 15.37. This valuation marks a discount compared to its industry's average Forward P/E of 20.29.
Investors should also note that AMGN has a PEG ratio of 2.64 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry had an average PEG ratio of 1.56 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.