Stock (Symbol) |
Amgen (AMGN) |
Stock Price |
$157 |
Sector |
| Healthcare |
Data is as of |
| November 12, 2015 |
Expected to Report |
| Jan 25 – Jan 29 |
Company Description |
 Amgen Inc. (Amgen) is a biotechnology company. The Company is engaged in discovering, developing, manufacturing and delivering human therapeutics. The Company’s sales and marketing forces are located in the United States and Europe. In the United States, it sells its products to pharmaceutical wholesale distributors. The Company also markets certain products directly to consumers through direct-to-consumer print and television advertising, as well as through the Internet. Outside the United States, the Company sells its products to healthcare providers and/or pharmaceutical wholesale distributors. The Company’s products include Neulasta (pegfilgrastim)/NEUPOGEN (filgrastim), Enbrel (etanercept), XGEVA/Prolia (denosumab), ESAs (erythropoiesis-stimulating agents), Sensipar/Mimpara (cinacalcet), Kyprolis and Evolocumab, among others. Source: Thomson Financial |
Sharek’s Take |
 Amgen (AMGN) is the daddy of biotech stocks, having gone from $1 in 1990 to $157 today. This is a safe stock, earning Value Line’s top rating of safety in addition to being the first biotech company to pay a dividend (2011). Today the company has multiple blockbusters on the market, and a robust pipeline with 10 new drugs expected by 2019 in addition to a cholesterol-cutting injection Repatha which was approved in the U.S in August. Testing has shown this drug to be slightly superior to a similar drug produced by Regeneron. Regeneron is a new biotech company, and to me this shows this wily old veteran hasn’t lost a step. With a P/E of just 15, an estimated long-term growth rate of 10%, and a 2% yield, this is an excellent investment for conservative investors and I will add it to the Conservative Growth Portfolio. |
One Year Chart |
 AMGN had a great qtr last qtr, but we can’t get too excited as qtrly estimates show +6%, +3%, +4% and 0% profit growth coming the next 4 qtrs. But the company has beaten the street the prior 6 qtrs so these numbers are likely too low. At 15x earnings I feel AMGN is at a good price to take a position in. Note, AMGN is expected to grow profits just 6% in 2016, but for years management has started annual estimates low then raised during the year. |
Fair Value |
 2015 will be the 7th straight year for record earnings at Amgen. My Fair Value on AMGN is 16x earnings, which could be low considering this stock is a double-digit grower delivering a 2% yield. This stock looks to provide solid total return for conservative investors. |
Bottom Line |
 Although this chart shows a dead-money period from 2006-2011, the stock has since rebounded nicely as the company has been growing profits an average of 17% the past four years, which is quite an accomplishment for such a large firm.Amgen is one of the all-time great stock market winners, going from $1 to $157 since 1990. Today the company is well-rounded, with a robust pipeline of new drugs coming, a $2 billion buyback program (compared to a $120 billion market cap), a 2% yield, 10% estimated LTG, and top rating of safety. AMGN is a perfect selection for the Conservative Growth Portfolio. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 20 of 31 |
