Wall Street analysts’ estimates
Wall Street analysts expect Amgen’s (AMGN) revenues to decrease marginally by ~0.1% to $5.769 billion during the third quarter—compared to revenues of $5.773 billion during the third quarter of 2017. The EPS is estimated to be $3.45 for the third quarter—compared to the EPS of $3.27 for the third quarter of 2017.
The above chart shows analysts’ recommendations for Amgen stock over the last 12 months.
Amgen’s stock price has increased nearly 4.2% in the last 12 months. So far, the stock price has increased ~8.0% in 2018. Analysts’ estimates show that the stock could return ~9.2% over the next 12 months. Analysts’ recommendations show a 12-month target price of $205.15 per share—compared to the last price of $187.88 per share as of October 24.
As of October 25, there are 24 analysts tracking Amgen. Five analysts recommended a “strong buy,” six recommended a “buy,” and 13 recommended a “hold” for Amgen. None of the analysts recommended a “sell” for the stock. The changes in analysts’ estimates and recommendations are based on changing trends in stock price and the company’s performance.
The consensus rating for Amgen stands at 2.33, which represents a “buy” for long-term growth investors and a “moderate buy” for value investors.
As on October 25, Amgen trades at a forward PE multiple of 13.0x—compared to the industry average of 15.4x. Amgen trades at a forward EV-to-EBITDA multiple of 9.5x—compared to the industry average of 12.1x.
Notably, the Invesco Dynamic Biotechnology & Genome ETF (PBE) holds 5.6% of its total investments in Amgen, 5.1% in Biogen (BIIB), 3.3% in Ionis Pharmaceuticals (IONS), and 5.4% in Regeneron Pharmaceuticals (REGN).