Amgen (AMGN) Advances While Market Declines: Some Information for Investors
Amgen (AMGN) closed the most recent trading day at $297.00, moving +1.38% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.07%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.03%.
Shares of the world's largest biotech drugmaker witnessed a gain of 1.02% over the previous month, beating the performance of the Medical sector with its loss of 1.3%, and underperforming the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Amgen in its upcoming release. The company plans to announce its earnings on August 5, 2025. The company's earnings per share (EPS) are projected to be $5.21, reflecting a 4.83% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 5.59% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.82 per share and revenue of $35.22 billion, indicating changes of +4.94% and +5.36%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Amgen. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. As of now, Amgen holds a Zacks Rank of #3 (Hold).
With respect to valuation, Amgen is currently being traded at a Forward P/E ratio of 14.07. This denotes a discount relative to the industry average Forward P/E of 19.02.
One should further note that AMGN currently holds a PEG ratio of 2.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.38 at the close of the market yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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