Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks
03-03

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and 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 boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Amgen are trading at a forward earnings multiple of 14.9X, as well as a PEG Ratio of 2.6, a Price/Cash Flow ratio of 10.1X, and a Price/Sales ratio of 5X.

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 $0.25 to $20.63 per share. AMGN also holds an average earnings surprise of 5.2%.

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.

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Amgen Inc. (AMGN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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