Trade-Ideas: Amgen (AMGN) Is Today's "Storm The Castle" Stock

Trade-Ideas LLC identified Amgen (AMGN) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Amgen

(

AMGN

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $596.4 million.
  • AMGN has traded 642,461 shares today.
  • AMGN is trading at 1.87 times the normal volume for the stock at this time of day.
  • AMGN crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AMGN:

Amgen Inc., a biotechnology company, engages in discovering, developing, manufacturing, and delivering human therapeutics worldwide. It offers products for the treatment of illness in the areas of oncology/hematology, cardiovascular, inflammation, bone health, nephrology, and neuroscience. The stock currently has a dividend yield of 2.7%. AMGN has a PE ratio of 14. Currently there are 6 analysts that rate Amgen a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Amgen has been 2.8 million shares per day over the past 30 days. Amgen has a market cap of $112.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.26 and a short float of 1.1% with 1.86 days to cover. Shares are down 6.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amgen as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • AMGEN INC has improved earnings per share by 18.5% in the most recent quarter compared to the same quarter a year ago. 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 $9.07 versus $6.70 in the prior year. This year, the market expects an improvement in earnings ($11.10 versus $9.07).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 17.1% when compared to the same quarter one year prior, going from $1,623.00 million to $1,900.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.5%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for AMGEN INC is currently very high, coming in at 91.01%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.37% is above that of the industry average.

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