Amgen (AMGN) Advances While Market Declines: Information for Investors

In the latest trading session, Amgen (AMGN) closed at $262.05, reflecting a +1.34% change from the previous day. This increase stands in contrast to the overall performance of the market, where the S&P 500 fell by 1.11%, the Dow dropped 0.42%, and the Nasdaq, heavily influenced by technology stocks, experienced a decrease of 1.89%.

Despite this daily gain, Amgen's share price has declined by 6.86% over the past month. This performance is weaker than that of the Medical sector, which saw an overall decline of 6.22%, as well as the S&P 500, which decreased by 1.7%. Investors are closely monitoring upcoming earnings reports to gain insight into the company’s financial health.

In its forthcoming earnings report, analysts predict that Amgen will announce earnings of $5.02 per share. This projection would represent a year-over-year growth of 6.58%. Expectations for revenue are also positive, with a consensus estimate of $8.85 billion, indicating a 7.92% increase compared to the same quarter last year.

It's important for investors to keep track of recent updates regarding analyst estimates for Amgen. Changes in these estimates are often indicative of shifting business trends, with positive adjustments typically reflecting a favorable outlook for the company's performance and profitability.

Research indicates that these changes in estimates are closely tied to future stock price movements. To assist investors with interpretation, a proprietary model known as the Zacks Rank has been developed. This model considers estimate changes and provides a rating system to help guide investment decisions.

The Zacks Rank operates on a scale from #1 (Strong Buy) to #5 (Strong Sell) and has been proven to outperform the market historically, with #1 ranked stocks achieving an average annual return of +25% since 1988. Over the last month, the consensus estimate for earnings per share (EPS) has increased by 0.06%. Currently, Amgen holds a Zacks Rank of #3, categorized as a 'Hold'.

Looking at valuation metrics, Amgen currently trades at a Forward Price-to-Earnings (P/E) ratio of 12.71. In comparison, the average Forward P/E for its industry is 22.06, suggesting that Amgen might be trading at a discount relative to its peers.

Additionally, Amgen's Price/Earnings to Growth (PEG) ratio stands at 2.64. This ratio, like the P/E ratio, takes into account the company's expected earnings growth. For context, the industry average PEG ratio was 1.56 at the last market close.

The Medical - Biomedical and Genetics industry, which includes Amgen, is part of the larger Medical sector. This industry currently holds a Zacks Industry Rank of 66, positioning it within the top 27% of over 250 different industries.

The Zacks Industry Rank evaluates the strength of various industry groups by analyzing the average Zacks Rank of the stocks within them. Historically, industries in the top 50% have outperformed those in the bottom half by a factor of two to one.

Investors are encouraged to utilize Zacks.com to stay informed of these changing metrics and their implications for upcoming trading sessions.

Amgen, investors, earnings