Biotech and Healthcare Sectors Surge 

Green Screen Day

All of our current picks were up yesterday: Abbvie (ABBV) up 1.12%, Bluebird Bio (BLUE) up 10%, Bristol Myers (BMY) up 1.17%, Foundation Medicine (FMI) up 2.95%, Gilead Sciences (GILD) up 1.07%, IBB up 3.04%, and Roche ADR (RHHBY) up 1.08%.

We are adding Amgen, Inc. (AMGN) to our portfolio at a price of $172-173. Amgen has one of the lower PEs among the large caps, is less volatile (stock is up 5.98% YTD) and pays a 2.33% dividend. The stock was up 3.3% yesterday with good accumulation.The PEG is not great at 2.22 but the trends are improving particularly the Q/Q EPS growth of 14.9% and P/S of 5.88. Amgen has a broad product line in oncology/hematology, inflammation, bone health and nephrology with sales of $22.47B. AMGN is a dividend play with low volatility and strong financials.

All large cap biopharmaceuticals were reviewed after Q2 earnings in this post. Valuations are not great but growth potential is there. All of our large cap biopharma picks pay a dividend.

Risk is on.