A look at Amgen
Headquartered in Thousand Oaks, California, Amgen (AMGN) is a biotechnology company. Amgen discovers, develops, and delivers drugs for various therapeutic areas, including cardiovascular, neuroscience, and oncology.
The above chart shows revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.
Amgen stock has risen ~8.2% in 3Q17. It has risen ~25.9% year-to-date as of October 20, 2017.
Wall Street analysts estimate that the stock has the potential to rise ~3.0% over the next 12 months. Their recommendations show a 12-month target price of $190.50 per share compared to the last price of $184.12 per share on October 19, 2017.
There are 24 analysts tracking Amgen stock. Ten of them recommend a “buy,” and 14 recommend a “hold.” None of them recommend a “sell.” The consensus rating for Amgen stands at 2.42, which represents a “strong buy” for value investors.
Analysts’ revenue estimates
Amgen’s revenues are mainly driven by growth in revenues at constant exchange rates, while its revenues are negatively impacted by foreign exchange.
Wall Street analysts estimate revenues of $5.8 billion in 3Q17, a ~1.0% fall compared to 3Q16, and EPS of $4.79.
To divest the company-specific risks, investors can consider ETFs such as the iShares US Healthcare (IYH), which holds 4.1% of its total assets in Amgen (AMGN). IYH also holds 6.2% in Pfizer (PFE), 10.8% in Johnson & Johnson (JNJ), and 4.2% in AbbVie (ABBV).