Amgen Outperforms Medical Sector in 2023

Amgen (AMGN) is outperforming the Medical sector with a year-to-date return of 14%, compared to an average of -3.9% for the sector. The company has a Zacks Rank of #2 (Buy) and has seen a 1.2% increase in its full-year earnings estimate over the past three months. Aldeyra Therapeutics (ALDX) is also outperforming the sector, with a return of 0.4% and a Zacks Rank of #1 (Strong Buy).

Amgen (AMGN) has been a standout performer in the Medical sector, with a year-to-date return of 14%, significantly outperforming the sector's average return of -3.9% [2]. The biotech giant has seen its stock price appreciate over the past month, driven by positive earnings estimate revisions and a recent upgrade to a Zacks Rank #2 (Buy) [1].

The Zacks Rank system, which classifies stocks based on earnings estimate revisions, has been instrumental in signaling Amgen's upward trajectory. Over the past three months, analysts have steadily raised their full-year earnings estimates for Amgen, with a 1.2% increase in the Zacks Consensus Estimate [1]. This upward trend in earnings expectations is a key driver of stock price movements, as institutional investors use these estimates to value shares and make investment decisions [1].

Amgen's recent earnings report, scheduled for August 5, 2025, is expected to show year-over-year growth of 4.83% in earnings per share, with revenue growth of 5.59% [2]. These projections are in line with the company's improving business outlook, as reflected in the upward revisions to earnings estimates. Analysts are projecting full-year earnings of $20.83 per share and revenue of $35.24 billion, indicating a 4.99% and 5.43% increase, respectively, compared to the previous year [2].

Despite the recent positive momentum, Amgen's stock is currently trading at a Forward P/E ratio of 14.42, which is a discount compared to the industry average of 19.22 [2]. This valuation makes Amgen an attractive option for investors seeking a balance between growth potential and relative affordability.

Aldeyra Therapeutics (ALDX), another biotech company, is also outperforming the Medical sector, with a year-to-date return of 0.4% and a Zacks Rank of #1 (Strong Buy) [1]. However, Amgen's recent upgrade to a Zacks Rank #2 (Buy) positions it as a solid candidate for producing market-beating returns in the near term.

In conclusion, Amgen's strong earnings estimate revisions and recent Zacks Rank upgrade make it an attractive investment opportunity within the Medical sector. Investors should keep an eye on the company's earnings report and continue to monitor its valuation and earnings growth prospects.

References:
[1] https://finviz.com/news/104347/what-makes-amgen-amgn-a-new-buy-stock
[2] https://finance.yahoo.com/news/amgen-amgn-falls-more-steeply-215003294.html