Corporate America (SPY, $289.34) Splurges $384 billion on Share Buybacks, While Capital Spending Remains Healthy
During the first half of 2018, S&P 500 companies spent $384 billion on buying back shares from shareholders, according to a Goldman Sachs report. That marks a whopping +48% increase since last year.
Apple went ahead with $45 billion worth of buybacks during the first half of 2018, which is triple the amount its spent during the same time period last year. Other companies with substantial share repurchase increases includes Amgen, Cisco, AbbVie and Oracle (as mentioned in the Goldman Sachs report).
For the full year 2018, share buyback authorizations among all US companies will exceed $1 trillion for the first time ever (according to Goldman Sachs projections). Share buybacks lower the number of outstanding shares of a company, thereby potentially pushing up the earnings per share metric – which in turn usually boost stock prices. Buybacks also indicate a firm’s healthy cash position, and therefore tend to bolster its stock price at least for the near-term.
Goldman Sachs estimated that buybacks are garnering the largest share of cash spending by S&P 500 firms - a departure from 19 out of the past 20 years where capital spending accounted for the biggest share.
Business spending still increased in the first half of 2018 – at 19% from last year – albeit at a slower rate compared to buybacks. Goldman Sachs predicts that capital spending is on pace for the fastest growth in at least 25 years.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AMGN in upward trend: 10-day moving average broke above 50-day moving average on October 01, 2026
The 10-day moving average for AMGN crossed bullishly above the 50-day moving average on October 01, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where AMGN's RSI Oscillator exited the oversold zone, 17 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 63%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Moving Average Convergence Divergence (MACD) for AMGN just turned positive on September 24, 2026. Looking at past instances where AMGN's MACD turned positive, the stock continued to rise in 31 of 48 cases over the following month. The odds of a continued upward trend are 65%.
Following a +2.18% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMGN advanced for three days, in 191 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
AMGN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AMGN as a result. In 36 of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 49%.
AMGN moved below its 50-day moving average on October 01, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMGN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 47%.
The Aroon Indicator for AMGN entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (19.342) is normal, around the industry mean (19.199). P/E Ratio (25.971) is within average values for comparable stocks, (34.793). Projected Growth (PEG Ratio) (2.524) is also within normal values, averaging (5.738). Dividend Yield (0.024) settles around the average of (0.025) among similar stocks. P/S Ratio (5.371) is also within normal values, averaging (4.033).
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.
The Tickeron SMR rating for this company is 15 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 27 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. AMGN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of human therapeutic products based on cellular biology
Industry PharmaceuticalsMajor
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