10 Best Safe Stocks To Buy According to Analysts

2. Amgen Inc. (NASDAQ:AMGN)

Analyst Upside as of December 9, 2024: 23%

10-Year Revenue Growth Rate: 5.12%

Number of Hedge Fund Holders: 68

Amgen Inc. (NASDAQ:AMGN) is a biotechnology company headquartered in California, United States, with a commitment to work for patients suffering from serious illnesses. In the third quarter of 2024, the company grew its revenue by 23% and product sales by 24%, driven by a 29% growth in volume. 10 products of its entire portfolio experienced at least double-digital growth in sales during the quarter.

Amgen Inc. (NASDAQ:AMGN) is a safe stock to buy and we say that because of its cash flow situation. During the quarter, the company generated $3.3 billion of free cash flow up from $2.5 billion in the third quarter of 2023. The company attributes its growing cash flow to its business performance and the timing of working capital items. The company’s cash flow performance also allowed AMGN to pay a dividend of $2.25 per share, a 6% increase from the same quarter in 2023. Similarly, AMGN also saw a significant reduction in its principal debt by almost $4.5 billion, year-to-date.

In addition to its strong financial performance and liquidity, Amgen Inc. (NASDAQ:AMGN) is also emerging as a leader in biotechnology by directing more investments to research and development. In the third quarter alone, the company saw a 34% increase in R&D expenses, primarily directed at later-stage clinical programs, marketed product support, and research and early pipeline. Overall, the company’s expansion strategy coupled with its business performance, reflects its financial strength and position in the industry.

PGIM Jennison Health Sciences Fund stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:

“Amgen Inc. (NASDAQ:AMGN) is a large cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes / obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”