Trade-Ideas: Amgen (AMGN) Is Today's "Perilous Reversal" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Amgen (AMGN) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Amgen as such a stock due to the following factors:
- AMGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $350.8 million.
- AMGN has traded 1.3 million shares today.
- AMGN is down 3.1% today.
- AMGN was up 7.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AMGN with the Ticky from Trade-Ideas. See the FREE profile for AMGN NOW at Trade-IdeasMore details on AMGN: Amgen Inc., a biotechnology medicines company, engages in the discovery, development, manufacture, and marketing of human therapeutic products in the areas of supportive cancer care, inflammation, nephrology, and bone diseases primarily in the United States, Europe, and Canada. The stock currently has a dividend yield of 1.8%. AMGN has a PE ratio of 17.7. Currently there are 7 analysts that rate Amgen a buy, no analysts rate it a sell, and 13 rate it a hold.The average volume for Amgen has been 3.3 million shares per day over the past 30 days. Amgen has a market cap of $79.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.52 and a short float of 1.1% with 2.63 days to cover. Shares are up 22.5% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Amgen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.73% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMGN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, AMGEN INC's return on equity exceeds that of both the industry average and the S&P 500.
- AMGEN INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMGEN INC increased its bottom line by earning $5.51 versus $4.03 in the prior year. This year, the market expects an improvement in earnings ($7.42 versus $5.51).
- You can view the full Amgen Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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