Amgen (AMGN) – Bullish
|Biotech giant Amgen, Inc. (NASDAQ: AMGN) reports on Monday after the close, with analysts expecting a 15% decline in profits from a year ago. AMGN has been on something of a regulatory roll of late, with the most recent being an FDA OK to continue with its revenue-producing anemia drug.The company has beaten analyst estimates in four of the past five quarters, and the stock generally does well after reporting. With AMGN breaking above a trading range that has restricted the shares since May, look for earnings to shove the stock toward its April high in the $61 area.
Sentiment toward AMGN is mixed, although the put/call ratio is coming off an annual high. That tells us that pessimism among options traders may be unwinding, a signal that has produced positive price action in the past few months. Go with an AMGN call option to take advantage of the continued momentum.
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