Amgen’s Performance Shows Mixed Results Amid Market Trends

With a market capitalization of $151.2 billion, Amgen Inc. (AMGN) stands as a prominent American biotechnology company based in Thousand Oaks, California. Established in 1980, Amgen focuses on discovering, developing, manufacturing, and delivering human therapeutics, establishing itself as one of the world’s leading independent biotech firms.

In the past 52 weeks, Amgen’s stock has not kept pace with the broader market. While AMGN shares have increased by 1%, the S&P 500 Index ($SPX) has escalated by 12.3%. However, year-to-date (YTD), AMGN has shown resilience with a 7.9% gain, contrasting with the SPX’s decline of 3.3%.

Market Comparison and Sector Performance

Examining the details further, Amgen outperformed the Health Care Select Sector SPDR Fund’s (XLV) drop of 1.4% over the last year, although its growth this year has been modest.

Q1 Earnings Results and Future Outlook

On May 1, Amgen reported its Q1 2025 earnings, prompting a 2.5% drop in its shares. The company surpassed Wall Street’s expectations with an adjusted EPS of $4.90 and revenues of $8.1 billion. Noteworthy performances from products like Prolia and Repatha contributed to strong sales growth; however, Enbrel and Tepezza saw declines.

Looking ahead, Amgen reaffirmed its full-year guidance and aims to expand its pipeline, including the promising obesity drug MariTide and various clinical-stage programs. The company is also allocating $900 million to enhance its U.S. manufacturing capabilities.

For fiscal 2025, which concludes in December, analysts project that AMGN’s EPS will rise by 3.8% year-over-year to $20.59. The company has consistently beaten consensus earnings estimates over the last four quarters, demonstrating a strong earnings surprise history.

Analyst Ratings and Price Targets

The consensus rating among the 30 analysts monitoring the stock is a “Moderate Buy.” This rating is based on 13 “Strong Buy” recommendations, one “Moderate Buy,” 13 “Holds,” one “Moderate Sell,” and two “Strong Sells.”

This configuration indicates a slight decline from the previous month, when the stock had 14 “Strong Buy” ratings.

On May 2, RBC Capital Markets adjusted its price target for Amgen from $324 to $320 while maintaining an “Outperform” rating, following the company’s Q4 2024 earnings report, which exceeded expectations.

Amgen’s average price target of $317.69 suggests a potential upside of 13% from current market values. The highest price target of $400 indicates a more optimistic improvement potential of 42.2% from current pricing levels.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are provided for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.