Amgen (AMGN) Outpaces Stock Market Gains: What You Should Know

Amgen (AMGN) closed the most recent trading day at $206.78, moving +1.8% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.74%.

Coming into today, shares of the world's largest biotech drugmaker had lost 5.57% in the past month. In that same time, the Medical sector lost 5.63%, while the S&P 500 gained 1.34%.

Investors will be hoping for strength from AMGN as it approaches its next earnings release, which is expected to be November 2, 2021. On that day, AMGN is projected to report earnings of $4.09 per share, which would represent a year-over-year decline of 6.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.7 billion, up 4.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.42 per share and revenue of $26.08 billion, which would represent changes of -1.08% and +2.58%, respectively, from the prior year.

Any recent changes to analyst estimates for AMGN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. AMGN is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, AMGN currently has a Forward P/E ratio of 12.37. This valuation marks a discount compared to its industry's average Forward P/E of 25.86.

It is also worth noting that AMGN currently has a PEG ratio of 1.49. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.49 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 175, which puts it in the bottom 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.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.

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