Amgen Inc.

🇺🇸NASDAQ Global Select
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Amgen Inc. stock analysis AMGN overview
Slightly Bearish -10

Amgen (AMGN) Stock Falls Amid Market Uptick: What Investors Need to Know

📉 Amgen stock closed at $361.13, dropping 1.4% while major indices like the S&P 500 and Nasdaq posted gains.

🔍 The company's shares have fallen an additional 0.8% over the last month, outperforming the sector's broader decline.

💰 Analysts expect earnings per share of $4.74 for the upcoming quarter, representing a projected 3.27% year-over-year decrease.

📈 Revenue is forecast to hit $8.51 billion for the quarter, with a full-year target of $37.86 billion showing slight growth.

🛠 The Zacks Consensus EPS estimate has adjusted slightly lower by 0.15% recently based on short-term business trends.

📊 Amgen currently holds a Zacks Rank of #3 (Hold), which is neutral compared to the Strong Buy or Sell categories.

💵 The stock trades at a Forward P/E ratio of 16.48, trading at a discount relative to the industry average of 18.95.

📉 A PEG ratio of 3.65 is significantly higher than the sector average of 1.54, reflecting differences in earnings growth expectations.

🏭 The Medical - Biomedical and Genetics industry ranks in the bottom 43% across all tracked industries by Zacks metrics.

🔮 Zacks Investment Research encourages investors to monitor these valuation and estimate revision metrics for upcoming trading sessions.

Bullish Signals
  • Amgen's revenue is projected to grow 4.42% year-over-year in the upcoming quarter, with analysts expecting $8.51 billion in total revenue.
  • Full-year consensus estimates indicate that Amgen's earnings and revenue are both expected to increase by 1.74% and 3.02%, respectively, compared to last year.
  • The stock is currently trading at a Forward P/E ratio of 16.48, which represents a discount compared to the industry average Forward P/E of 18.95.
  • Amgen holds a Zacks Rank of #3 (Hold), and historically, stocks in the top-rated industries have outperformed bottom industries by a factor of 2 to 1.
Risk Factors
  • Amgen's stock has underperformed the broader market, falling -1.4% while the S&P 500 rose and the Nasdaq increased 0.47%.
  • Shares have declined 0.8% over the last month, trailing the wider medical sector loss of 4.79% and the S&P 500's broader decline.
  • Analysts anticipate a 3.27% year-over-year drop in earnings per share (EPS) to $4.74 upon its upcoming earnings release.
  • The Consensus EPS estimate has decreased by 0.15% over the past month, reflecting waning analyst confidence or deteriorating business trends.
  • Amgen holds a Zacks Rank of #3 (Hold), whereas top-ranked industries historically outperform the bottom half by a factor of 2 to 1.
  • The Medical - Biomedical and Genetics industry ranks in the bottom 43% among all industries, suggesting limited relative strength compared to peers.
Full Analysis
Amgen's shares closed at $361.13, reflecting a 1.4% decline that significantly underperformed major indices like the S&P 500 and Nasdaq which posted gains earlier in the day. Over the past month, Amgen has dropped 0.8%, falling more sharply than the broader medical sector or the S&P 500. Market attention is now focused on the company's upcoming quarterly earnings, with analyst consensus estimates projecting an earnings per share (EPS) of $4.74, representing a slight year-over-year decline of 3.27%. Revenue is expected to reach $8.51 billion, marking a 4.42% increase compared to the same quarter last year. Analyst expectations for the full year show EPS growth to $22.22 per share and revenue of $37.86 billion, with both metrics projecting modest positive changes from the prior year. Regarding valuation, Amgen trades at a forward price-to-earnings ratio of 16.48, which is below its industry average of 18.95. However, the company carries a PEG ratio of 3.65, considerably higher than the medical industry average of 1.54. Additionally, the broader medical-biomedical and genetics industry holds a Zacks Industry Rank of 140, placing it in the bottom 43% of all tracked industries based on historical performance data derived from individual stock ratings within those groups.