With no single headline event setting the tone, Amphastar Pharmaceuticals (AMPH) draws attention through its recent trading pattern, including a 3.4% move over the past week and a last close of $27.62.

That recent 1-day share price return of 3.37% and 7-day share price return of 2.30% comes on top of a 90-day share price return of 6.31%. The 1-year total shareholder return of a 21.65% decline contrasts with a 41.50% total shareholder return over five years, suggesting short term momentum is picking up even as longer term holders have experienced a mixed journey.

If Amphastar’s move has you thinking more broadly about healthcare, this could be a good moment to scan opportunities across healthcare stocks and see what else stands out on your watchlist.

With Amphastar posting steady recent returns and trading around $27.62, the key question is whether the current price understates its earnings power, or if the market is already pricing in its future growth potential?

Most Popular Narrative Narrative: 13.7% Undervalued

Compared with the last close at $27.62, the most followed narrative points to a higher fair value, setting up a clear valuation gap to unpack.

While Amphastar is investing in capacity expansion and proprietary pipeline products, rising R&D and capital expenditures (up 14% YoY) could weigh on profitability, especially if new product launches in crowded or commoditized segments (like GLP-1s) result in only modest incremental revenues.

Want to see what sits behind this valuation gap? The narrative leans heavily on moderate revenue growth, slightly thinner margins, and a future earnings multiple below the wider pharma group. Curious how those pieces fit together?

Result: Fair Value of $32 (UNDERVALUED)

However, there is still a chance that a stronger pipeline than expected or faster uptake of products like BAQSIMI could support higher earnings than this narrative assumes.

Build Your Own Amphastar Pharmaceuticals Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a tailored Amphastar view in just a few minutes, starting with Do it your way.

A great starting point for your Amphastar Pharmaceuticals research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Amphastar is already on your radar, do not stop there. Widen your search and let a few focused stock lists spark fresh ideas for your shortlist.

• Hunt for potential value by scanning these 876 undervalued stocks based on cash flows that might offer pricing that does not fully reflect their underlying cash flows.
• Spot potential income ideas through these 11 dividend stocks with yields > 3% that combine yield with business fundamentals you can investigate further.
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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.