Amgen’s Stock Performance Lags Behind Market Yet Analysts Show Support
Amgen Inc. (AMGN), based in Thousand Oaks, California, specializes in discovering, developing, manufacturing, and delivering human therapeutics. With a market capitalization of $160.6 billion, the company is committed to innovating novel medicines grounded in cellular and molecular biology.
Mixed Results: Market Comparison
Over the past year, Amgen’s stock has struggled relative to the broader market. While AMGN gained 13%, the S&P 500 Index ($SPX) soared nearly 35.7%. In 2024, AMGN’s stock has increased by 4.7% year-to-date, but this falls short compared to the S&P 500’s rise of 25.5% in the same period.
When compared specifically to the Invesco Pharmaceuticals ETF (PJP), AMGN’s underperformance becomes less stark. The ETF experienced an impressive gain of about 27.1% over the previous year, with a 15% rise year-to-date, surpassing AMGN’s modest gains.
Quarterly Results: Earnings Report Insights
On October 30, Amgen’s shares fell slightly following the release of its third-quarter results. The company reported an adjusted EPS of $5.58, exceeding Wall Street’s expectations of $5.11. However, its revenue of $8.5 billion fell short of forecasts, which anticipated $8.51 billion. For the full year, Amgen projects adjusted EPS between $19.20 and $20, with revenue expected to be between $33 billion and $33.8 billion.
Analyst Sentiments Favor Amgen
Analysts predict a 4.6% growth in EPS for the current fiscal year, ending in December, bringing it to $19.51 on a diluted basis. Historically, Amgen has consistently beaten earnings expectations, marking its success in the last four quarters.
A survey of 28 analysts covering AMGN reveals a consensus rating of “Moderate Buy.” This includes 13 “Strong Buy” ratings, one “Moderate Buy,” 12 “Holds,” and two “Strong Sells.” This sentiment indicates an increase in bullishness from last month when only 12 analysts recommended a “Strong Buy.”
On November 13, Piper Sandler Companies (PIPR) analyst Christopher Raymond reaffirmed a “Buy” rating on Amgen, with a price target of $344. This suggests a potential upside of 14.1% from current levels. Meanwhile, the average price target of $335.17 indicates an 11.2% premium to AMGN’s present price, while the highest target of $405 hints at a more ambitious upside potential of 34.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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.
