Four Analyst Calls on Monday Worth Noting: Alere Inc (ALR), SolarCity Corp (SCTY)

Amgen has traded higher by more than 25% over the last year, and after showing some weakness during its recent quarter, William Blair believes it may be time to pullback. The analyst specifically mentioned the company’s recent trend higher and combined the fact that it has no upcoming catalysts. As a result, the firm believes that upside is limited. The stock lost 1.5% of its value following this news; however Amgen is not an expensive stock. The company’s valuation is consistent with others in large pharma, with a price/sales under 4.0 and a forward P/E ratio of just 10.40. Amgen continues to grow by double digits during a time when other large pharma companies are losing revenue to the patent cliff. Therefore, I disagree with the analyst and believe the pullback is a good opportunity for investors.

Conclusion

In a previous article I wrote about analysts “following the leader” and how one upgrade/downgrade usually starts a chain effect that can dictate the trend of a stock. It is good to use this information as part of your research but you must ensure that you are assessing the stock and its valuation with your own due diligence. It is important not to make an emotional decision based on the performance of a stock, and if you refrain from making such a decision then large gains could follow.

The article Four Analyst Calls on Monday Worth Noting originally appeared on Fool.com and is written by Brian Nichols.

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