Amgen (AMGN) is back in focus after first quarter results showed higher revenue and net income versus a year earlier, along with fresh full year guidance and a new US$300 million US manufacturing investment.

The stock has given investors a 32.3% total shareholder return over the past year, even as the 90 day share price return is down 8.1%. This suggests that earlier momentum has cooled while the latest earnings, guidance and US$300 million manufacturing expansion have reset expectations.

If Amgen’s healthcare focus has your attention, this could be a good moment to scan other potential opportunities across 33 healthcare AI stocks

With Amgen shares up 32.3% over the past year but easing 8.1% over the past 90 days, and trading close to analyst targets yet at a sizeable modelled intrinsic discount, should you see value here or assume markets are already pricing in future growth?

Most Popular Narrative: 3.9% Undervalued

At a last close of $336.45 against a narrative fair value of $350.03, Amgen is framed as modestly undervalued, with that gap driven by detailed earnings and cash flow assumptions rather than market momentum.

Advancements in personalized and targeted therapies, reflected in the robust late-stage pipeline (e.g., MariTide for obesity/type 2 diabetes, Repatha and olpasiran for cardiovascular, multiple bispecific T-cell engagers for oncology), position Amgen to launch high-margin, first-in-class products that drive both top-line growth and margin expansion in the coming years.

Read the complete narrative. Read the complete narrative.

Curious what kind of revenue path and margin profile are baked into that valuation, and how rich a future earnings multiple those assumptions rely on? The full narrative lays out a step by step case that connects product launches, profitability and discount rate choices into one fair value line for Amgen.

Result: Fair Value of $350.03 (UNDERVALUED)

However, you still need to keep an eye on pressure from drug pricing reforms and rising biosimilar competition, which could challenge both margins and long term earnings assumptions.

Next Steps

If this mix of optimism and concern feels balanced, now is the moment to look through the data yourself and decide where you stand with 4 key rewards and 1 important warning sign.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.