AI Analyst Summary
Amgen's bull thesis rests on extraordinary EPS growth of 64.9% YoY driven by its expanding rare-disease and inflammation portfolio — including MariTide (obesity candidate) and continued Repatha/EVENITY uptake — while a compressing forward P/E of 17.1x suggests the market is not yet fully pricing in earnings power. Management has beaten EPS estimates in each of the last 4 quarters, underscoring operational discipline. The primary risk is that the consensus price target of $383.66 sits below the current price, implying analysts see near-term downside and limited re-rating potential at current levels.
Fundamentals
Pe
Trailing P/E 25.8x / Forward P/E 17.1x · 3.0/5
Trailing P/E of 25.8x is broadly in line with large-cap pharma peers, but the forward P/E of 17.1x suggests meaningful earnings expansion ahead. Not a deep-value setup, but reasonably priced relative to growth.
Peg
PEG 2.18 · 2.0/5
A PEG of 2.18 is above the attractive threshold of 1.0 and signals the stock is moderately expensive relative to its growth rate. While earnings growth is strong, the elevated PEG limits valuation upside.
Analyst Rating
Hold consensus (2.5) · 3.0/5
With 29 analysts covering the stock (14 Buy / 16 Hold / 4 Sell) and a consensus rating of 2.5, sentiment sits at the boundary between Buy and Hold. Broad coverage provides reliability, but conviction is lukewarm with more than half of analysts on the sidelines or negative.
Earnings Trend
EPS Growth +64.9% YoY / Revenue Growth +9.5% YoY · 4.0/5
YoY earnings growth of 64.9% is well above the 25% threshold for a top score, and revenue growth of 9.5% provides solid underlying support. The outsized EPS growth likely reflects margin expansion and/or one-time tailwinds, so sustainability warrants monitoring, preventing a score of 5.
Price Target Beat
EPS Beat Rate: 4 of 4 quarters · 4.0/5
Amgen has beaten EPS estimates in all 4 of the most recent quarters. While the 8-quarter history is incomplete, the perfect recent beat rate reflects disciplined execution and conservative guidance. Scored 4 given the limited window.
Management
Consistent execution with strong EPS beat record · 4.0/5
A 4-for-4 recent EPS beat rate, combined with robust earnings growth and stable analyst coverage, points to a management team executing well on cost discipline and product mix. Capital allocation appears sound, though the mixed analyst conviction tempers a top score.
● See the full picture
Get today's top-scored picks, ranked for you.
Compass screens thousands of stocks every morning and hands you a short list of high-conviction picks — scored, explained, and re-ranked to your risk profile.
Start free for 3 days →
No credit card. Then $9/month. Cancel anytime.
How Compass scores stocks
Compass pre-filters thousands of U.S. equities by fundamentals, then an AI analyst scores each finalist 1–5 across six measures — spanning valuation, growth, analyst sentiment, and management quality — into one composite score, refreshed every market morning. Browse all covered stocks →
Not financial advice.
Compass is an analytical tool, not a registered investment adviser or broker-dealer.
Scores and recommendations are generated by AI, may be inaccurate or out of date, and are
not investment, financial, legal, or tax advice. Investing involves risk, including loss of
principal. Do your own research and consult a licensed financial professional.
About Compass.