Is Most-Watched Stock Amgen Inc. (AMGN) Worth Betting on Now?

Core Viewpoint - Amgen (AMGN) has shown a strong performance recently, with a return of +4.9% over the past month, outperforming the S&P 500 composite's +1.1% change, indicating potential positive momentum for the stock [2]. Earnings Estimate Revisions - For the current quarter, Amgen is expected to report earnings of $5.01 per share, reflecting a year-over-year increase of +6.4%. However, the Zacks Consensus Estimate has decreased by -3.6% in the last 30 days [5]. - The consensus earnings estimate for the current fiscal year stands at $19.56, indicating a year-over-year change of +4.9%, with a slight increase of +0.7% over the past month [5]. - For the next fiscal year, the consensus estimate is $20.52, also showing a +4.9% change from the previous year, with a +0.7% increase in the last month [6]. Revenue Growth Projections - Amgen's consensus sales estimate for the current quarter is $8.84 billion, indicating a year-over-year growth of +7.9%. The estimates for the current and next fiscal years are $33.18 billion and $34.31 billion, reflecting changes of +17.7% and +3.4%, respectively [9]. Last Reported Results - In the last reported quarter, Amgen achieved revenues of $8.5 billion, representing a year-over-year increase of +23.2%. The EPS for this period was $5.58, compared to $4.96 a year ago [10]. - The reported revenues were slightly below the Zacks Consensus Estimate of $8.51 billion, resulting in a surprise of -0.04%. However, the EPS exceeded expectations by +9.2% [11]. Valuation Metrics - Amgen is graded B in the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers [15]. - The evaluation of Amgen's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), suggests that the stock may be undervalued relative to its historical values and peers [13][14]. Conclusion - The current Zacks Rank of 3 suggests that Amgen may perform in line with the broader market in the near term, despite the mixed signals from earnings estimates and valuation metrics [16].