What Makes Amgen (AMGN) a New Buy Stock

Core Viewpoint - Amgen (AMGN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to significant stock price movements based on these estimates [3]. Amgen's Earnings Outlook - For the fiscal year ending December 2025, Amgen is expected to earn $20.85 per share, which remains unchanged from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Amgen has increased by 1.2%, reflecting a positive trend in earnings estimates [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [6]. - The upgrade of Amgen to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].