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
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $322.2 million.
- AMGN has traded 3.7 million shares today.
- AMGN traded in a range 212.4% of the normal price range with a price range of $5.55.
- AMGN traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More 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 1.6%. AMGN has a PE ratio of 18.3. Currently there are 8 analysts that rate Amgen a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for Amgen has been 3.2 million shares per day over the past 30 days. Amgen has a market cap of $87.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.39 and a short float of 1.3% with 3.23 days to cover. Shares are up 33.9% year to date as of the close of trading on Wednesday.
rates Amgen as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 26.95% and other important driving factors, this stock has surged by 37.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- AMGEN INC has improved earnings per share by 26.9% 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 $5.51 versus $4.03 in the prior year. This year, the market expects an improvement in earnings ($7.45 versus $5.51).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Biotechnology industry average. The net income increased by 23.6% when compared to the same quarter one year prior, going from $1,107.00 million to $1,368.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 9.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- You can view the full Amgen Ratings Report.