Amgen Inc. (AMGN), headquartered in Thousand Oaks, California, discovers, develops, manufactures, and delivers human therapeutics. With a market cap of $160.6 billion, the company focuses on human therapeutics and concentrates on innovating novel medicines based on cellular and molecular biology.
Shares of this drug manufacturing giant have underperformed the broader market over the past year. AMGN has gained 13% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.7%. In 2024, AMGN stock is up 4.7%, compared to the SPX’s 25.5% rise on a YTD basis.
Narrowing the focus, AMGN’s underperformance looks less pronounced compared to the Invesco Pharmaceuticals ETF (PJP). The exchange-traded fund has gained about 27.1% over the past year. Moreover, the ETF’s 15% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
On Oct. 30, AMGN shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $5.58 beat Wall Street expectations of $5.11. The company’s revenue was $8.5 billion, missing Wall Street forecasts of $8.51 billion. AMGN expects full-year adjusted EPS to be between $19.20 and $20, and revenue to be between $33 billion and $33.8 billion.
For the current fiscal year, ending in December, analysts expect AMGN’s EPS to grow 4.6% to $19.51 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 28 analysts covering AMGN stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” 12 “Holds,” and two “Strong Sells.”
This configuration is more bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”
On Nov. 13, Piper Sandler Companies (PIPR) analyst Christopher Raymond maintained a “Buy” rating on AMGN with a price target of $344, implying a potential upside of 14.1% from current levels.
The mean price target of $335.17 represents a 11.2% premium to AMGN’s current price levels. The Street-high price target of $405 suggests an ambitious upside potential of 34.4%.
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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.
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