Amgen Inc. (AMGN): A Bull Case Theory

We came across a bullish thesis on Amgen Inc. (AMGN) on Substack by Disruptive analytics. In this article, we will summarize the bulls’ thesis on AMGN. Amgen Inc. (AMGN)’s share was trading at $291.16 as of Feb 14th. AMGN’s trailing and forward P/E were 38.51 and 14.27 respectively according to Yahoo Finance.

A biopharmaceutical team in a laboratory analyzing new compounds to develop therapeutics.

Amgen (AMGN) remains undervalued at its current stock price of around $290, with a fair value estimate of $335 per share. The market underestimates the company’s innovative pipeline, particularly in oncology, bolstered by its acquisition of Horizon Therapeutics. This acquisition adds significant potential to its portfolio, especially in oncology. Additionally, Amgen’s involvement in the development of successful obesity treatments, which could lead to a multi-billion dollar opportunity starting in 2026, is not yet reflected in its stock price. While the stock has been volatile, fluctuating between $260 and $305 over the past couple of months, it provides an attractive income opportunity with a 3% dividend yield. The first dividend installment was received by investors recently, reinforcing the appeal of holding the stock as it continues to be undervalued, with the potential for significant long-term upside if its growth drivers are realized.

Amgen Inc. (AMGN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held AMGN at the end of the third quarter which was 69 in the previous quarter. While we acknowledge the risk and potential of AMGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.