Amgen (AMGN – Free Report) closed at $258.59 in the latest trading session, marking a -1.01% move from the prior day. This move lagged the S&P 500’s daily gain of 0.55%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.
The upcoming earnings release of Amgen will be of great interest to investors. In that report, analysts expect Amgen to post earnings of $5.02 per share. This would mark year-over-year growth of 6.58%. Our most recent consensus estimate is calling for quarterly revenue of $8.85 billion, up 7.92% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.12% lower. As of now, Amgen holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Amgen is holding a Forward P/E ratio of 12.84. For comparison, its industry has an average Forward P/E of 22.82, which means Amgen is trading at a discount to the group.
Meanwhile, AMGN’s PEG ratio is currently 2.67. 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 1.54 at yesterday’s closing price.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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