5 Best Weight Loss Stocks to Buy Now

3. Amgen Inc. (NASDAQ:AMGN)

Hedge Fund Holdings: 55

Based in Thousand Oaks, California, Amgen Inc. (NASDAQ:AMGN) is an American multinational biopharmaceutical company which focuses primarily on molecular biology and biochemistry. The company’s experimental weight-loss hormone Leptin is delivering stellar results, decreasing appetite and neutralizing the pleasure of eating. Amgen Inc. (NASDAQ:AMGN) posted an EPS of $4.65 in the second quarter of 2022, beating estimates of $4.40 by $0.25. With a price-to-earnings ratio of 21.29 as of October 14, the company generated a total revenue of $6.59 billion in Q2 2022.

On October 11, Morgan Stanley analyst Matthew Harrison upgraded Amgen Inc. (NASDAQ:AMGN) to Overweight from Equal Weight, conferring a price target of $279, up from $257. The analyst is of the view that the upside potential of the company  in their mid-term pipeline is greatly underappreciated, and offers a defensive position in the current macroeconomic context, with lucrative near-term options of AMG133 to counter obesity. Harrison contends that AMG133 is likely to achieve similar results in weight loss as Tirzepatide at maximum dosage.

Here is what Aristotle Capital Management had to say about Amgen Inc.(NASDAQ:AMGN) in their Q2 2022 investor letter:

“Amgen Inc. (NASDAQ:AMGN), the pharmaceutical company focused on biotechnology-based therapeutics, was also a top contributor for the quarter. The company reported solid results, with a variety of products, such as bone-strengthening drugs Prolia and EVENITY, contributing to overall revenue growth. Amgen (NASDAQ:AMGN) continued to increase the market share for cholesterol drug Repatha (a catalyst we had originally identified), delivering record quarterly sales as the drug’s usage expands with high-risk patients who have not yet had a cardiovascular event, and as barriers for prescribers, healthcare systems and patients are removed. In addition, we believe the company is poised to gain market share with its biosimilars (akin to generic versions of biologic drugs), also a previously identified catalyst. Biosimilars accounted for over $2 billion in revenue in 2021, and we believe this has the potential to more than double by the end of the decade, accelerated by six additional biosimilars (for a total of 11 products on the market). This includes the upcoming launch in the U.S. of arthritis treatment Amjetiva in January 2023. Meanwhile, the company is advancing its robust pipeline of early- and late-stage assets, with several phase III results due this year. These developments have caused us to remain enthusiastic about Amgen’s (NASDAQ:AMGN) ability to build on its decades of success developing novel treatments using biopharmaceuticals.”