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Here's Why Amgen (AMGN) Gained But Lagged the Market Today
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The most recent trading session ended with Amgen (AMGN - Free Report) standing at $264, reflecting a +0.24% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.
Coming into today, shares of the world's largest biotech drugmaker had lost 10.58% in the past month. In that same time, the Medical sector lost 3.8%, while the S&P 500 gained 0.34%.
Market participants will be closely following the financial results of Amgen in its upcoming release. The company is expected to report EPS of $4.97, up 5.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.82 billion, up 7.66% from the year-ago period.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $19.53 per share and revenue of $33.16 billion. These results would represent year-over-year changes of +4.72% and +17.65%, respectively.
Investors should also note any recent changes to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 13.48. This expresses a discount compared to the average Forward P/E of 24.1 of its industry.
It is also worth noting that AMGN currently has a PEG ratio of 2.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.65.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why Amgen (AMGN) Gained But Lagged the Market Today
The most recent trading session ended with Amgen (AMGN - Free Report) standing at $264, reflecting a +0.24% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.
Coming into today, shares of the world's largest biotech drugmaker had lost 10.58% in the past month. In that same time, the Medical sector lost 3.8%, while the S&P 500 gained 0.34%.
Market participants will be closely following the financial results of Amgen in its upcoming release. The company is expected to report EPS of $4.97, up 5.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.82 billion, up 7.66% from the year-ago period.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $19.53 per share and revenue of $33.16 billion. These results would represent year-over-year changes of +4.72% and +17.65%, respectively.
Investors should also note any recent changes to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Amgen is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Amgen is currently exchanging hands at a Forward P/E ratio of 13.48. This expresses a discount compared to the average Forward P/E of 24.1 of its industry.
It is also worth noting that AMGN currently has a PEG ratio of 2.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.65.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.