Amgen stock price fell approximately 6 and half percent yesterday. Although that sounds like a lot, it is really nothing more than normal volatility in my humble opinion. On the other hand, it did create an opportunity to buy this already attractively valued biotech giant at an even more reasonable valuation.
The price drop was allegedly a result of the company lowering their 2021 earnings guidance despite the fact that they beat on revenues. The company also declared their normal $1.76 per quarter dividend and boosted their share buyback.
This pushed the current dividend yield to 3.08%, which makes this A- rated biotechnology giant and attractive income investment with moderate to slightly above-average capital appreciation potential.
Nevertheless, the price drop instigated a comprehensive research and due diligence initiative on my part because I am long the stock and have been since 2017.
Therefore, with this video I offer a deep dive look at Amgen (AMGN), its valuation, its future prospects and the quality and strength of its financial statement. Because, at the end of the day, there is no substitute for continuous comprehensive research and due diligence on any stock that you own.
FAST Graphs Analyze Out Loud Video:
— Chuck Carnevale
Source: FAST Graphs