The U.S. labor market is showing signs of cooling following the Federal Reserve’s aggressive interest-rate increases to combat high inflation. October’s job report was strong by historical standards, as the…
unemployment rate rose marginally to 3.7% last month from 3.5% in September.
On top of it, Regional Fed presidents Thomas Barkin and Susan Collins recently indicated that they see the possibility for slower rate hikes. “I think the implication for that is probably a slower pace of increases, a longer pace of increases and a potentially higher point,” Barkin told CNBC.
Furthermore, investors are focused on Tuesday’s midterm elections, which will determine control of Congress and could spur moves in the stock market. Historically, midterm elections have ushered in positive market sentiment.
Given this backdrop, fundamentally strong stocks Amgen Inc. (AMGN), Fortinet Inc. (FTNT), and BJ’s Wholesale Club Holdings, Inc. (BJ) might be solid additions to your watchlist right now.
Amgen Inc. (AMGN)
AMGN discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience. It distributes its products through pharmaceutical wholesale distributors and direct-to-consumer channels.
On October 20, AMGN announced that it had completed its acquisition of ChemoCentryx, Inc. (CCXI), a biopharmaceutical company, for $52 per share in cash, representing aggregate merger consideration of approximately $3.7 billion. The acquisition enhances AMGN’s inflammation and nephrology portfolio.
Moreover, on October 6, AMGN announced the opening of a new research and development site in San Francisco’s Oyster Point. The new site is expected to constitute the company’s second-largest research and development facility.
TOP 10 STOCKS FOR THE YEAR AHEAD
On October 28, AMGN declared a $1.94 per share dividend for the fourth quarter of 2022, payable on December 8, 2022. This reflects the shareholder return ability of the company.
AMGN’s non-GAAP operating income rose 7.4% year-over-year and came in at $3.28 billion for the third quarter that ended September 30, 2022. Its non-GAAP net income increased 8.9% year-over-year to $2.53 billion, while its non-GAAP EPS grew 15.2% year-over-year to $4.70.
AMGN’s revenue is expected to increase 4% year-over-year to $6.49 billion in the fiscal first quarter ending March 2023. Its EPS is expected to increase 5.5% year-over-year to $4.49 in the same quarter. Additionally, it surpassed EPS estimates in all four trailing quarters, which is impressive.
Over the past year, the stock has gained 25.9% to close the last trading session at $269.04. It has gained 19.6% year-to-date.
AMGN’s POWR Ratings reflect this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. AMGN has an A grade for Quality. Within the Biotech industry, it is ranked #10 out of 386 stocks.
Beyond what is stated above, we’ve also rated AMGN for Sentiment, Growth, Momentum, Value, and Stability. Get all AMGN ratings here.
Fortinet Inc. (FTNT)
FTNT offers comprehensive, integrated, and automated cybersecurity solutions worldwide. It provides FortiGate hardware and software licenses for various security and networking services.
On November 2, FTNT announced…
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