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Amgen Inc. (AMGN), incorporated in 1980 and headquartered in Thousand Oaks, California, is a biotech titan that crafts life-saving therapies that combat everything from cancer and osteoporosis to autoimmune disorders. Known for breakthroughs like Enbrel, Prolia, and Repatha, it blends cutting-edge science with strategic alliances to tackle humanity's toughest health challenges. Amgen, boasting a market cap of over $152 billion, serves patients worldwide.
Companies worth $10 billion or more are described as “large-cap stocks,” and Amgen fits this category. Anchored by blockbuster drugs like Enbrel and Aranesp, the biopharma giant, with strong financials and a forward-thinking approach, stands tall in a competitive industry - proving it’s not just big by name but by its relentless drive to innovate and dominate.
Amgen is currently trading 20.2% below its 52-week high of $346.85, reached on July 25. Shares of Amgen dipped 16.1% over the three months, significantly underperforming the broader Dow Jones Industrials Average’s ($DOWI) 9.2% gain during the same time frame.
Over the long term, AMGN stock has gained 1.7% over the past 52 weeks. By comparison, the DOWI has risen 23.3% over the past year.
To confirm the recent bearish trend, AMGN has traded below its 50-day and 200-day moving averages since November.
Amgen’s stock recently took a hit, diverging from a rising market, after the accidental leak of clinical trial data for its anti-obesity drug, MariTide. A patient’s bone density loss raised concerns despite Amgen’s assurances of no safety risks. This tarnished MariTide’s promising narrative, leaving investors uneasy.
Although Amgen’s strong earnings and solid pipeline provide some comfort, the Oct. 30 Q3 earnings report showed mixed results - beating earnings expectations but missing revenue forecasts. With full-year EPS projections between $19.20 and $20 and revenue estimates estimated to be between $33 billion and 33.8 billion, investors are cautiously waiting for Amgen to regain its momentum.
In contrast to AMGN's price performance, rival Gilead Sciences, Inc. (GILD) has outperformed relative to AMGN. Over the past 52 weeks, GILD stock has surged 19.1%.
Amgen’s financial performance has analysts cautiously optimistic. The stock has a consensus rating of “Moderate Buy” from 30 analysts in coverage, and the mean price target of $330.64 suggests that the stock could rally as much as 18.8% from the current price levels.
