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

Amgen (AMGN) recently concluded the trading session at $258.59, reflecting a decrease of -1.01% compared to the previous day. This performance is notable as it fell short of the S&P 500's gain of 0.55% on the same day. While the Dow Jones Industrial Average saw a slight dip of 0.06%, the technology-focused Nasdaq index recorded a notable increase of 1.24%.

Investors are particularly keen to see Amgen's upcoming earnings report, where analysts anticipate earnings of $5.02 per share. This figure represents a year-over-year growth of 6.58%. The consensus among analysts also estimates quarterly revenue to reach $8.85 billion, marking an increase of 7.92% compared to the same period last year.

It is important for investors to stay vigilant regarding any recent changes in analyst forecasts for Amgen. Such revisions usually indicate the latest trends in the company's short-term business performance. Positive updates in estimates can reflect a favorable outlook among analysts concerning the company's profitability and overall business health.

Research shows that revisions in estimates are closely linked to short-term momentum in share prices. To leverage this relationship, the Zacks Rank system has been developed, which considers these estimate changes to provide a comprehensive rating structure. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has demonstrated a reliable track record of outperformance, with #1 ranked stocks returning an average annual gain of +25% since 1988.

Over the past month, the Zacks Consensus EPS estimate for Amgen has decreased by 0.12%, currently placing Amgen at a Zacks Rank of #3 (Hold).

In terms of valuation metrics, Amgen's Forward P/E ratio stands at 12.84. This places it at a discount compared to the industry average Forward P/E of 22.82, suggesting a potentially attractive valuation relative to its peers.

Additionally, Amgen's PEG ratio is currently reported at 2.67. While the PEG ratio is similarly used to evaluate companies in relation to their expected earnings growth, the average PEG ratio in the Medical - Biomedical and Genetics industry is 1.54. This comparison indicates that Amgen may be priced higher in relation to its growth potential versus industry norms.

The Medical - Biomedical and Genetics industry, to which Amgen belongs, is part of the broader Medical sector. Currently, this industry has a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries assessed. The Zacks Industry Rank evaluates the strength of various industry groups based on the average Zacks Rank of individual stocks within those groups, with evidence suggesting that the highest-ranked industries tend to outperform their lower-ranked counterparts by a factor of 2 to 1.

As the trading sessions progress, investors are encouraged to monitor these stock-related metrics and other relevant indicators closely.

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