Why Amgen (AMGN) is a Top Value Stock for the Long-Term

Amgen (AMGN) is highlighted as a top long-term value stock, currently holding a Zacks #3 (Hold) rank but boasting a 'B' Value Style Score and 'B' VGM Score, underpinned by a 13.72 forward P/E. The biotech firm has seen positive analyst sentiment, with 11 upward revisions to its fiscal 2025 earnings estimates, now at $21.09 per share, and a history of 11.8% average earnings surprises. This combination of attractive valuation and improving earnings outlook positions AMGN as a notable consideration for value investors, despite ongoing challenges with mature product competition offset by new growth drivers.

Analysis

Amgen (AMGN) presents a compelling case for value-oriented investors, despite its neutral Zacks #3 (Hold) rating. The company's attractive valuation is quantified by a forward P/E ratio of 13.72 and supported by a 'B' rating in both the Value and overall VGM Style Scores. Critically, the forward-looking earnings outlook is improving, as evidenced by 11 upward analyst revisions for fiscal 2025 earnings over the last 60 days, which has lifted the consensus estimate by $0.27 to $21.09 per share. This positive sentiment is further backed by a historical average earnings surprise of +11.8%, indicating a consistent ability to exceed expectations. While the company faces recognized headwinds from biosimilar and branded competition on its mature blockbuster drugs like Epogen and Enbrel, this pressure is being actively counteracted by growth from newer products such as Prolia and Xgeva, alongside a broad pipeline, suggesting a strategic pivot is underway.

Key Decisions for Investors

• Value-focused investors may find Amgen's current valuation attractive, particularly given the recent positive trend in fiscal 2025 earnings estimate revisions.
• Investors should closely monitor the sales performance of Amgen's growth products against the decline of its legacy portfolio, as this balance is key to the investment thesis.
• Given the neutral 'Hold' rating, any future upgrade to the Zacks Rank could serve as a significant catalyst, signaling strengthening momentum and a potentially more opportune entry point.