Amgen (AMGN) Stock Sinks As Market Gains: Here's Why

Core Viewpoint - Amgen's stock performance has lagged behind the broader market, with a recent decline of 7.73% over the past month, while the Medical sector and S&P 500 showed lesser declines and gains respectively [1] Financial Performance Expectations - Analysts anticipate Amgen will report earnings of $4.97 per share, reflecting a year-over-year growth of 5.52$8.82 billion, indicating a 7.66% increase from the previous year [2] - For the entire fiscal year, earnings are projected at $19.51 per share and revenue at$33.16 billion, representing growth of 4.61% and 17.65% respectively [3] Analyst Projections and Market Sentiment - Recent shifts in analyst projections for Amgen are crucial as they often indicate changes in near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Amgen as 3 (Hold), with a slight increase of 0.03% in the consensus EPS estimate over the past month [6] Valuation Metrics - Amgen's Forward P/E ratio stands at 14.13, significantly lower than the industry average of 24.46, indicating that Amgen is trading at a discount compared to its peers [7] - The company has a PEG ratio of 3.05, compared to the industry average of 1.81, suggesting that while Amgen's earnings growth is expected, it is currently valued higher relative to that growth [8] Industry Context - The Medical - Biomedical and Genetics industry, to which Amgen belongs, has a Zacks Industry Rank of 63, placing it in the top 26% of over 250 industries, indicating strong performance potential [8][9]