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Amgen (AMGN) Gains As Market Dips: What You Should Know

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In the latest trading session, Amgen (AMGN) closed at $194.91, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.66%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.

Coming into today, shares of the world's largest biotech drugmaker had lost 4.21% in the past month. In that same time, the Medical sector lost 1.89%, while the S&P 500 lost 2.43%.

Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. This is expected to be February 7, 2019. In that report, analysts expect AMGN to post earnings of $3.25 per share. This would mark year-over-year growth of 12.46%. Meanwhile, our latest consensus estimate is calling for revenue of $5.86 billion, up 1.08% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.21 per share and revenue of $23.34 billion, which would represent changes of +12.96% and +2.14%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AMGN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.62% higher. AMGN is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AMGN has a Forward P/E ratio of 13.67 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.8.

We can also see that AMGN currently has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMGN's industry had an average PEG ratio of 1.6 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 32% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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