The stock market witnessed significant selling pressure following the Fed’s second interest rate hike this year. Since Fed officials seemed convinced of the necessity of more aggressive hikes for curbing lingering core inflation, investors feared the possibility of the economy slipping into recession. With the expectation that the Fed will try to prevent possible future stagflation while deciding the future interest rate hikes, the major benchmark stock indexes ended last week with a modest rally.
Goldman Sachs' Peter Oppenheimer also opines that the market could bounce back gradually, with equities seeming attractive for medium- to long-term buyers. The Dow Jones Industrial Average managed to gain marginally last Friday.
With the expectation of recovery of the Dow Jones Industrial Average in the upcoming months, quality Dow Jones stocks Amgen Inc. (AMGN) and Visa Inc. (V) could be solid additions to your portfolio now. These stocks are rated ‘Buy’ in our proprietary POWR Ratings system.
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 areas.
On April 18, 2022, AMGN announced positive results from its Phase 3 study- evaluating the efficacy of ABP 654 compared to STELARA® (ustekinumab) for plaque psoriasis in adults. David M. Reese, AMGN’s M.D., executive vice president of Research and Development, said, “Amgen remains committed to providing patients who live with inflammatory diseases access to high-quality biosimilar medicines. We look forward to continuing to expand our inflammation portfolio to offer patients a variety of treatment options.”
AMGN’s revenue came in at $6.24 billion, up 5.7% year-over-year, for the first quarter ended March 31, 2022. Its non-GAAP net income came in at $2.34 billion, up 9% year-over-year, while its non-GAAP EPS increased 14.9% year-over-year to $4.25.
For fiscal 2023, analysts expect AMGN’s revenue to increase 4.1% to $27.28 billion in 2023. Its EPS is estimated to grow 9.1% to $19.05 in 2023. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past six months, the stock has gained 15.1% to close Friday’s trading session at $243.40.
AMGN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a 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 and a B grade for Growth and Stability. It is ranked #7 of 388 stocks in the Biotech industry. Click here to see AMGN’s Value, Momentum, and Sentiment ratings.
Visa Inc. (V)
V operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.
On April 26, 2022, V’s Chairman and CEO Alfred F. Kelly, Jr. said, “While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery and through the enablement of traditional and newer ways to pay globally.”
V’s net revenues came in at $7.19 billion for the second quarter ended March 31, 2022, up 25.5% year-over-year. Its non-GAAP net income came in at $3.84 billion, up 26.6% year-over-year, while its non-GAAP EPS came in at $1.79, up 29.7% year-over-year.
V’s revenue is expected to increase 19% to $28.68 billion in 2022. Its EPS is estimated to rise 21% to $7.15 in 2022. It also surpassed the consensus EPS estimates in each of the trailing four quarters. V has lost 6.6% over the past month to close Friday’s session at $199.23.
V has an overall B grade, equating to a Buy in our POWR Ratings system. It has a B grade for Growth, Sentiment, and Quality. Again, it is ranked #7 of 49 stocks in the Consumer Financial Services industry. Click here to see the additional ratings for V (Value, Momentum, and Stability).
AMGN shares were trading at $244.08 per share on Monday afternoon, up $0.68 (+0.28%). Year-to-date, AMGN has gained 9.42%, versus a -15.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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