Amgen On its Way to New All-Time Highs

by Sam Collins | January 10, 2013 1:35 am

Amgen (NASDAQ:AMGN[1]) — This biotech company has been a leader in the development of genetically based research and treatment for cancer, anemia, rheumatoid arthritis, and a host of other major illnesses. It markets five of the world’s best-selling biotech drugs.

On Wednesday, S&P lowered its earnings estimates for 2012 by $0.10 to $6.43, but raised its 2013 estimate by $0.10 to $7.17 ($0.18 more than when we included it in our Top Stocks to Buy for January[2].) AMGN has a dividend yield of 2.1% and is recognized as a company with a very high cash position, giving it the flexibility for acquisition and further drug developments.

The stock is trading in a bullish consolidation channel with resistance at $92 and support at $85. Note the triple buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), and the buy signal from the MACD.

Our trading target for AMGN is raised to $100, but it is also recommended as a long-term investment.

AMGN Chart
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