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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Amgen (AMGN)
Thousand Oaks, CA-based Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, inflammation, bone health and rare diseases markets. The company used advances in cellular and molecular biology to develop two of the biotech industry’s earliest and most successful drugs, Epogen (anemia) and Neupogen (white blood cell stimulant). Amgen successfully launched two next-generation products, Aranesp and Neulasta. Meanwhile, the acquisition of Immunex Corporation gave Amgen access to the multi-blockbuster drug, Enbrel. However, all these older drugs are facing declining sales due to biosimilar or branded competition, which is being somewhat offset by its blockbuster growth drugs like Prolia and Xgeva. Other products are Repatha, Blincyto, Vectibix, Nplate, Kyprolis, Evenity, Otezla, Aimovig, Lumakras/Lumykras, Tezspire, Imdelltra, Tavneos and Kanjinti, Mvasi and Amgevita biosimilars.
AMGN is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 13.5X for the current fiscal year compared to the Medical - Biomedical and Genetics industry's P/E of 17.5X. Additionally, AMGN has a PEG Ratio of 2.5 and a Price/Cash Flow ratio of 9.2X. Value investors should also note AMGN's Price/Sales ratio of 4.4X.
A company's earnings performance is important for value investors as well. For fiscal 2025, eight analysts revised their earnings estimate higher in the last 60 days for AMGN, while the Zacks Consensus Estimate has increased $0.07 to $20.70 per share. AMGN also holds an average earnings surprise of 8.3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AMGN to their portfolios.