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Amgen Inc. (AMGN) is a leading biopharmaceutical company valued at a market cap of $174.2 billion, focusing on developing and delivering human therapeutics. The California-based company has a strong portfolio of treatments for conditions like oncology, cardiovascular disease, and inflammation.
The shares of this drugmaker have outperformed the broader market over the past 52 weeks. AMGN has gained 24.5% over this time frame, while the broader S&P 500 Index ($SPX) has increased 18.2%. In 2024, shares of AMGN are up 12.7%, compared to SPX’s 11.5% gain on a YTD basis.
Zooming in further, AMGN’s outperformance looks even more pronounced compared to the Horizon Kinetics Medical ETF’s (MEDX) marginal decline over the past 52 weeks and 8.6% gains on a YTD basis.
Amgen has outperformed due to investor optimism surrounding its obesity drug MariTide, which has advanced to Phase III studies, and its strong, diversified portfolio that mitigates risks. Additionally, the company's robust financial position and planned expansion in obesity-linked conditions have further bolstered investor confidence.
However, the stock fell 5% following its Q2 earnings release on Aug. 6 due to a slight miss on earnings estimates and a rise in expenses related to the development of its experimental obesity drug, MariTide.
Yet, for the current fiscal year, ending in December, analysts expect AMGN's EPS to grow 4.6% year over year to $19.50. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and two “Strong Sells.”
The configuration has remained steady over the past months.
On Aug. 7, TD Cowen maintained a “Buy” rating on AMGN and raised the price target to $381, noting the sales outperformance from several of its core products.
Currently, AMGN is trading above the mean target price of $316.86. The Street-high price target of $380 implies a potential upside of 17% from the current price levels.
On the date of publication, Sohini Mondal 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.
