Amgen has gained 71.8% since InvestingPro's ProPicks AI added it to its Dominate the Dow strategy in December 2024. The biotech pays a dividend and earns steady cash from approved drugs, unlike peers such as Moderna and Biogen that depend on trial results. Third-quarter adjusted earnings of $6.45 per share beat estimates by 12.0%. Revenue rose about 9% to $10.4 billion, and free cash flow reached $3.5 billion in the second quarter. Amgen has raised its dividend for 16 consecutive years and yields 2.2%. The stock returned 59.8% over the past year. Risks include biosimilar competition for Prolia and XGEVA, pricing pressure on Enbrel, and debt from the Horizon acquisition.

Amgen shares have returned 65.7% over the past year, and the stock trades at 26.5 times adjusted trailing earnings. Buyers are betting on profit growing faster than sales. Consensus forecasts call for $12.5 billion in profit in FY2026 and $13.2 billion in FY2027. That implies 5.9% profit growth against 4.1% sales growth in FY2027, lifting net margin to 32.6%. Amgen is already ahead on sales. Revenue rose 8.2% over the twelve months to September 2026, and on November 3 management raised its FY2026 revenue guidance midpoint to $39.3 billion from $38.8 billion. The risk is profit. Non-GAAP R&D spending grew 11% in the third quarter, outpacing the 8% rise in product sales. Analysts' FY2027 estimates range from $22.89 to $26.11 a share.

A Motley Fool analysis picks Pfizer over Amgen as the better healthcare stock for 2027, citing its lower valuation and wider reach. Amgen's 2025 revenue rose about 10% to $36.7 billion, with net income of $7.7 billion. Pfizer's revenue fell about 1.6% to $62.6 billion, while net income reached $7.8 billion. Pfizer carries far less debt, with a debt-to-equity ratio of about 0.8x against Amgen's 6.3x. Its forward price-to-earnings ratio is 10.2x, compared with 20.8x for Amgen. Amgen offers better growth prospects, the author says, but Pfizer's low valuation and scale make it "the better bet today.