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

Zacks Investment Research suggests Amgen (AMGN), currently rated a #3 (Hold), could be a compelling growth stock given its VGM Score of A and Growth Style Score of B. The company's year-over-year earnings are projected to grow by 4.9% for the current fiscal year, and the consensus estimate for fiscal 2025 has increased by $0.18 to $20.82 per share following upward revisions by 12 analysts in the last 60 days; AMGN also has an average earnings surprise of 8.3%.

Analysis

Amgen (AMGN), a significant global biotechnology company, currently carries a Zacks Rank #3 (Hold), yet presents compelling characteristics for growth-focused investors, evidenced by its VGM Score of A and a Growth Style Score of B. The company is forecasted to deliver year-over-year earnings growth of 4.9% for the current fiscal year. Indicative of positive sentiment, 12 analysts have revised their earnings estimates for Amgen upwards for fiscal 2025 within the last 60 days, leading to a $0.18 increase in the Zacks Consensus Estimate to $20.82 per share. Furthermore, Amgen has demonstrated a consistent ability to exceed market expectations, boasting an average earnings surprise of 8.3%. While Amgen's legacy products such as Epogen, Neupogen, and Enbrel are experiencing sales declines due to biosimilar and branded competition, this pressure is being partially offset by the performance of its growth drugs like Prolia and Xgeva, as well as contributions from its broader portfolio including new launches and biosimilars.

Key Decisions for Investors

• Investors should consider Amgen for their watchlists, given its strong VGM and Growth Style Scores (A and B respectively) and positive earnings estimate revisions for fiscal 2025, despite its current Zacks Rank #3 (Hold).
• The projected 4.9% earnings growth for the current fiscal year and a historical average earnings surprise of 8.3% suggest underlying operational strength, though the impact of competition on legacy products remains a key factor to monitor.
• Growth-oriented investors may find Amgen particularly interesting due to these positive indicators, but should weigh these against the challenges posed by biosimilar erosion of older drug revenues and await further confirmation of sustained growth from newer products.