Trade-Ideas: Amgen (AMGN) Is Today's Post-Market Leader 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 post-market leader 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 $409.6 million.
  • AMGN is up 2.8% today from today's close.

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More details on AMGN:

Amgen Inc., a biotechnology company, discovers, develops, manufactures, and delivers human therapeutics in the areas of oncology, hematology, inflammation, bone health, nephrology, cardiovascular, and general medicine worldwide. The stock currently has a dividend yield of 2%. AMGN has a PE ratio of 19.9. Currently there are 7 analysts that rate Amgen a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Amgen has been 3.0 million shares per day over the past 30 days. Amgen has a market cap of $93.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.37 and a short float of 1.3% with 2.59 days to cover. Shares are up 7.5% 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, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • AMGN's revenue growth trails the industry average of 36.6%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $1,142.00 million or 8.86% when compared to the same quarter last year. In addition, AMGEN INC has also vastly surpassed the industry average cash flow growth rate of -71.74%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • AMGEN INC's earnings per share declined by 25.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMGEN INC increased its bottom line by earning $6.65 versus $5.51 in the prior year. This year, the market expects an improvement in earnings ($8.10 versus $6.65).

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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