IBB - Amgen: An Emerging GLP-1 Play Modest Mid-Teens P/E With Strong Momentum
2024-07-05 01:42:52 ET
Summary
- Amgen shares have outperformed IBB by over 40% in the past year, driven higher by a major surge post-earnings in May.
- With a current price-to-earnings multiple in the mid-teens, I assert that solid and consistent EPS growth ahead warrants a higher valuation.
- AMGN's chart is also impressive, with a long-term uptrend in place.
- I highlight key price levels to monitor and assess the options market ahead of Q2 numbers due out in August.
Amgen ( AMGN ) has been a standout in the biotech space in the past year. Shares are up more than 40% over the past 12 months, sharply outperforming the iShares Biotechnology ETF ( IBB ), of which AMGN is a holding. Though the $166 billion market cap biotech industry company has been a performance leader in its niche, the speculative biotech slice of the US stock market has underperformed the S&P 500. Big pharma, such as Eli Lilly ( LLY ) and Novo Nordisk ( NVO ) seem to capture all the attention , but I see bullish fundamentals and strong technicals with AMGN that investors should consider....
Amgen: An Emerging GLP-1 Play, Modest Mid-Teens P/E With Strong Momentum