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

According to Zacks, Amgen (AMGN) currently holds a Zacks Rank of #3 (Hold) but possesses a Value Style Score of B and a VGM Score of A, indicating potential for value investors; its forward P/E ratio is 13.94. Twelve analysts have revised their fiscal year 2025 earnings estimates upwards in the last 60 days, increasing the Zacks Consensus Estimate to $20.82 per share, and AMGN has demonstrated an average earnings surprise of 8.3%.

Analysis

Amgen (AMGN) presents a nuanced investment profile, currently holding a Zacks Rank #3 (Hold) yet exhibiting strong underlying financial characteristics according to the provided Zacks analysis. The company scores favorably with a VGM Score of A and a Value Style Score of B, supported by an attractive forward P/E ratio of 13.94, indicating potential value. This valuation is complemented by positive analyst sentiment regarding its future earnings; for fiscal year 2025, twelve analysts have revised their earnings estimates upwards in the last 60 days, causing the Zacks Consensus Estimate to increase by $0.19 to $20.82 per share. Furthermore, Amgen demonstrates a consistent ability to outperform expectations, evidenced by an average earnings surprise of 8.3%. While its established products like Epogen, Neupogen, and Enbrel face headwinds from biosimilar and branded competition, this is being offset by growth from newer drugs such as Prolia, Xgeva, and Otezla, alongside a broader portfolio of recent launches and biosimilars. The overall sentiment derived from the provided signals is 'strongly positive' with a 'bullish' tone, suggesting that despite the neutral rank, the specific metrics highlighted by Zacks, particularly the strong Style Scores and positive earnings estimate revisions, indicate underlying strength and make AMGN a noteworthy stock, especially for value-focused investors.

Key Decisions for Investors

• Investors, particularly those with a value-oriented strategy, should consider placing Amgen on their short list due to its favorable Value Style Score of B, VGM Score of A, and a forward P/E ratio of 13.94, despite its current Zacks Rank #3 (Hold).
• Closely monitor future earnings releases for sustained outperformance, building on its reported 8.3% average earnings surprise, and track ongoing analyst earnings estimate revisions which have recently trended positively for fiscal year 2025.
• Evaluate the evolving revenue mix, specifically the company's ability to effectively offset declining sales from older drugs facing competition with robust growth from its newer product portfolio and pipeline advancements to gauge long-term sustainability.