4-Star Stocks Poised to Pop: Amgen

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech giant Amgen (Nasdaq: AMGN  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Amgen's business and see what CAPS investors are saying about the stock right now.

Amgen facts

Headquarters (founded)

Thousand Oaks, Calif. (1980)

Market Cap

$53.46 billion

Industry

Biotechnology

Trailing-12-Month Revenue

$14.7 billion

Management

Chairman/CEO Kevin Sharer (since 2000)

CFO Robert Bradway (since 2007)

Return on Equity (average, last three years)

18%

Competitors

Johnson & Johnson (NYSE: JNJ  )

Merck (NYSE: MRK  )

Novartis (NYSE: NVS  )

CAPS Members Bullish on AMGN Also Bullish on

General Electric (NYSE: GE  )

CAPS Members Bearish on AMGN Also Bearish on

Ford Motor (NYSE: F  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 582 of the 609 All-Star members who have rated Amgen -- some 95.5% -- believe the stock will outperform the S&P 500 going forward. These bulls include sumbawa and TSIF, both of whom are ranked in the top 20% of our community.

Last month, sumbawa tapped Amgen as a brilliant biotech bargain: "Low valuation, low debt, strong cash flow, promising pipeline. Stock will probably hold up well in any forthcoming correction."

In a pitch from two weeks ago, TSIF kindly updates our community on Amgen's high-profile bone drug:

Amgen is a profitable biotech with some good products. Cash to debt is excellent, cash flow good and strong margins. It has strong partners for some of its products such as Wyeth (NYSE: WYE  ) and Johnson & Johnson. Even with strong products the key to success is new product releases. Next up for Amgen is a date with the FDA on October 19th for hopefully a decision on Denosumab for osteoporosis and some cancer indicators. Amgen is a good bet with or without product approval to be a market outperformer. The odds for approval on October 19th for Denosumab sweeten the prospects to a green thumb from me.

What do you think about Amgen, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor pick. Novartis AG is a Motley Fool Global Gains selection. Try any of our Foolish newsletters today, free for 30 days.The Fool's disclosure policy always gets a perfect score.


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