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JimVanMeerten (67.58)

Amgen - NASDAQ 100 gem

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May 23, 2011 – Comments (0) | RELATED TICKERS: MGCD

One of the most consistently rising stocks on the NASDAQ 100 list according to Barchart is Amgen (AMGN) with 15 advances in the last 20 sessions.  The company has well established brand drugs like Aranesp, Epogen and Embrel and looks to bring new drugs into the pipeline.  My only concern is what health care reform may mean to the whole pharma industry. The momentum recently has been impressive.


Amgen Inc. (AMGN) discovers, develops and delivers innovative human therapeutics. A biotechnology pioneer, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. With a deep and broad pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people's lives.

Factors to Consider:

Technical Factors:

1 - 80% Barchart technical buy signal

2 - Trend Spotter buy signal

3 - Above its 20, 50 and 100 day moving averages

4 - 15 new highs and up 11.95% in the last month

5 - Relative Strength Index 72.43% and rising

6 - Trades around 60.44 with a 50 day moving average of 55.67

Fundamental Factors:

1 - This is one of Wall Street's favorite pharmas with brokerage analysts issuing 13 strong, buy 9 buy and 7 hold recommendations

2 - Sales are projected to increase by 1.30% this year and 3.60% next year

3 - Next year earnings are expected to increase by 8.70% and 6.75% annually for the next 5 years

General Investor Sentiment:

1 - Motley Fool readers really like this pharma with 2,724 readers expressing an opinion

2 - CAPS members vote 1,982 to 64 for the stock to beat the market

3 - The more experienced All Stars agree with a similar 553 to 25 vote for the same result

Summary:  This is a pharma with an A++ financial strength and a 90% score in stock price stability and earnings predictability.  Investors needing a pharma to round out their holding could see a 20% annual total return over the next 5 years without taking on a lot of risks with the addition of Amgen (AMGN) to their portfolio.

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