Tampa, Florida – Amgen, a leading biotech company, has shown remarkable growth in the past year, with its shares rising over 40% in the last 12 months. This significant increase in value has outpaced the iShares Biotechnology ETF, where Amgen is a holding. Despite being a standout performer in its niche, the speculative biotech sector in the US stock market has failed to keep up with the S&P 500. While big pharma companies like Eli Lilly and Novo Nordisk dominate the spotlight, investors should take note of Amgen’s bullish fundamentals and strong technicals.
Amgen specializes in developing, manufacturing, and marketing biologic therapies for oncology, inflammation, and rare diseases, earning it a buy rating from experts. The company is also making strides in the lucrative weight-loss market, showcasing its versatility in the healthcare industry.
In early May, Amgen reported strong quarterly results, with non-GAAP EPS of $3.96 surpassing expectations and revenues of $7.45 billion showing a 22% increase from the previous year. The company’s management provided optimistic guidance for the fiscal year, with projections of operating EPS between $19 and $20.20 and a top-line revenue range of $32.5 billion to $33.8 billion, both exceeding market consensus.
The successful first quarter for Amgen was attributed to the solid performance of key drugs like Repatha, Aranesp, and Epogen. However, sales of Enbrel, Otezia, and Neulasta were less impressive. Despite this, investors reacted positively to the earnings report, driving shares up by 11.8% – the best single-day performance in at least three years.
Looking ahead to the second quarter, analysts predict a 3.8% earnings-related stock price swing, indicating market anticipation for the upcoming results. Key areas to watch include updates on Amgen’s obesity portfolio, promising developments like AMG 133, and the performance of the MariTide medication against competitors like Wegovy and Ozempic.
While future earnings growth is expected to be modest this year, projections show potential for significant profit increases by 2026. Additionally, dividend yields are forecasted to rise at a steady rate, presenting an attractive investment opportunity for shareholders seeking long-term value.
From a technical perspective, Amgen’s solid valuation and growth prospects point towards a bullish outlook. With a history of sustained uptrends and positive momentum indicators, the company’s stock shows resilience in a volatile market. Overall, Amgen’s continued success, coupled with its strategic advancements, positions it as a noteworthy contender in the biotech industry.
