Amgen (AMGN) Stock Sinks As Market Gains: Here's Why

The most recent trading session ended with Amgen (AMGN) standing at $273.41, reflecting a -0.85% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.82% for the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 1.77%.Shares of the world's largest biotech drugmaker witnessed a loss of 7.73% over the previous month, trailing the performance of the Medical sector with its loss of 4.06% and the S&P 500's gain of 0.8%.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 $4.97 per share. This would mark year-over-year growth of 5.52%. Our most recent consensus estimate is calling for quarterly revenue of $8.82 billion, up 7.66% from the year-ago period.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.51 per share and a revenue of $33.16 billion, indicating changes of +4.61% and +17.65%, respectively, from the former year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amgen. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.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, 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. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Amgen is currently sporting a Zacks Rank of #3 (Hold).Looking at its valuation, Amgen is holding a Forward P/E ratio of 14.13. For comparison, its industry has an average Forward P/E of 24.46, which means Amgen is trading at a discount to the group.We can also see that AMGN currently has a PEG ratio of 3.05. 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. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.81.The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, 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.Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amgen Inc. (AMGN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks