The stock of Amgen Inc. (AMGN), one of the leading biotechnology companies globally, attracts the attention of many investors in 2024, amid mixed expectations regarding its performance in the market. 

These expectations are based on various economic factors and developments related to the company, including macroeconomic effects such as falling interest rates and geopolitical risks. 

Based on analysts' evaluations and forecasts, Amgen stock could trade within a range of $215 to $381, reflecting differing views on its ability to make additional gains before the end of the year. 

Recommendations for the stock vary between "buy" and "hold," with some analysts pointing to potential gains if global economic conditions continue to improve, or if the company manages to deliver strong financial results. 

On the other hand, others believe that risks associated with the biotechnology sector, including regulatory challenges and increasing competition, may limit its ability to reach new record levels in the near future. 

Nevertheless, Amgen's ability to innovate in its products and future strategies, along with a supportive economic environment, could be decisive factors in determining the stock's trajectory. 

The possibility of Amgen (AMGN) stock hitting new record highs before the end of 2024 or even next year remains strong, but it depends on a variety of economic factors and the company’s future performance. 

Some institutions and banks indicate that Amgen stock could reach levels between $362 and $381, supported by the company’s strategies and investments in research and development, particularly in areas like rare disease treatments and biological therapy innovations. 

The stock's performance remains tied to global economic developments and international trade movements, especially regarding interest rates and monetary policies. 

If the decline in interest rates continues with relative market stability, it could increase investor appetite for high-yield assets like biotechnology stocks, which may enhance the chances of Amgen stock rising. 

Additionally, some analysts believe that the future performance of the stock will largely depend on Amgen's ability to develop new drugs and achieve sustainable profits, especially as the reliance on biological therapies grows. 

If the company manages to launch new products, expand its customer base, and increase sales, it could see strong jumps in stock price during 2025. 

About the Biotechnology Sector

The biotechnology sector is an advanced field that relies on the applications of biology and technology to develop products and services aimed at improving human, animal, and environmental health. 

This sector encompasses a wide range of companies focused on research and development in areas such as biological drugs, gene therapies, and protein- and cell-based medicines. 

By using innovative tools, biotechnology companies aim to offer advanced solutions to treat chronic and complex diseases such as cancer, immune disorders, and rare diseases. 

One of the main characteristics that distinguish the biotechnology sector is continuous innovation. Therefore, this industry requires significant investments in research and development, as companies allocate large budgets to discover and develop new treatments. 

Although this represents a risk, the potential returns are enormous when any of these treatments succeed in obtaining regulatory approval and commercialization. 

Some of the major companies in this sector, such as Amgen and Johnson & Johnson, rely on generating massive profits from the pioneering treatments they have developed. 

Biotechnology also plays a crucial role in agricultural and environmental industries, particularly in developed countries. 

For example, genetic engineering is used to develop crops resistant to pests and harsh climate conditions, boosting agricultural productivity and contributing to food security. 

The biotechnology sector faces significant challenges, including regulatory pressures and the high costs of research and development. 

Laws and complex regulations to obtain approvals from health authorities, such as the US Food and Drug Administration (FDA), can delay the marketing of new products, affecting profits. 

Overall, the biotechnology sector remains one of the most dynamic and investment-attractive sectors, characterized by high growth opportunities, especially with ongoing advancements in fields such as gene therapy and personalized medicine. 

Importance of the Biotechnology Sector

• Developing medical treatments: Biotechnology is a cornerstone in developing new treatments for difficult and chronic diseases like cancer, diabetes, and rare diseases. 
• Food security and agriculture: In agriculture, biotechnology helps improve crops by developing new genetically modified plant varieties resistant to pests, drought, and spoilage. 
• Economic contribution: The biotechnology sector is one of the fastest-growing and most invested sectors globally. 
• Environment and planet protection: Biotechnology contributes to developing innovative environmental solutions, such as biofuels and pollution treatment. 

About Amgen

Amgen (AMGN) is one of the largest global companies specializing in biotechnology. It was founded in 1980 and is headquartered in Thousand Oaks, California, USA. 

Amgen focuses on developing and manufacturing innovative drugs to treat serious diseases such as cancer, heart disease, bone diseases, chronic inflammation, and autoimmune diseases. 

Amgen heavily relies on scientific research and biotechnologies to develop therapies based on biological molecules (biologics) and therapeutic proteins. 

Some of the drugs developed by the company are among the best-selling in the world in their fields, such as cancer drugs and blood disorder medications. 

Amgen is known for developing drugs like Enbrel to treat rheumatoid arthritis and Neulasta to boost the immune system in cancer patients. 

The company is also expanding its drug portfolio through research and development and acquiring other biotechnology companies. 

Amgen is listed on the NASDAQ under the symbol AMGN and is one of the leading biotechnology companies globally. 

Amgen Q2 2024 Earnings

Amgen reported strong performance in the second quarter of 2024, with total revenues reaching $8.4 billion, an increase of 20% compared to the previous year. 

This exceeded the market's average expectations of $7.44 billion. 

Product sales performance was the primary driver of this revenue growth, rising by 20% to reach $8.04 billion, driven mainly by a 26% increase in volume. 

Despite this revenue growth, the company faced challenges due to rising operating expenses, leading to a drop in earnings per share according to GAAP standards to $1.38, compared to $2.57 in the corresponding quarter of 2023, a decrease of 46%, mainly attributed to increased costs and tax impacts. 

Amgen also worked to reduce its debt, cutting $1.4 billion of outstanding debt during this quarter, bringing the total reductions to $2 billion since the beginning of the year. 

Regarding dividend distributions, the company continued its dividend payout policy, raising dividends by 6% year-over-year, bringing the payout to $2.25 per share. 

Amgen Earnings Outlook for 2024 and 2025

2024 Forecast

The company’s earnings are expected to reach good levels due to the launch of new products and continued strong demand for the biological drugs it develops. 

Amgen is also expected to benefit from cost control strategies and debt reduction, which will enhance its profit margins. 

Earnings per share are expected to improve as inflationary pressures ease and international sales increase. 

Amgen's revenues in 2024 are expected to reach around $33.2 billion, a growth of 7.36% over the previous year, with earnings per share expected to reach approximately $19.44, an increase of 4.2% over 2023 earnings. 

2025 Forecast

Amgen is expected to continue its upward trajectory, boosting investments in research and development, particularly in biotechnology and gene therapy fields. 

Improvements in this sector could increase the company's market value and support its future profits. 

With continued favorable economic trends and expansion in emerging markets, Amgen could exceed expectations given the growing global demand for biological drugs. 

Amgen's revenues in 2025 are expected to reach approximately $34.2 billion, a growth of 10.62% over the previous year, with earnings per share expected to reach approximately $20.63, an increase of 6.1% over 2024 earnings. 

Key Challenges Facing Amgen

• Intense competition: Amgen faces fierce competition from numerous other pharmaceutical and biotechnology companies, which puts pressure on its market share. 
• Rising costs: The company faces increasing operating costs, including research and development and manufacturing expenses. 
• Government regulations: Government regulations play a major role in the pharmaceutical industry. 
• Economic challenges: Economic impacts such as inflation or recession can affect consumers’ ability to afford medications. 
• Rapid technological advancements: The biotechnology sector requires quick responses to technological advancements. 
• Intellectual property protection: Amgen needs to protect its patents to ensure competitors don't surpass its technologies. 
• Shift toward generic drugs: As patents for some popular drugs expire, competition from generic drugs increases. 

Amgen Stock Analysis Summary

• Amgen stock forecast this week: Continued stock fluctuation between $310 and $340. 
• Amgen stock forecast in October: The stock is likely to post a monthly loss in October. 
• Amgen stock forecast for 2024: The stock is widely expected to hit record levels above $345. 
• Amgen stock forecast for 2025: If Amgen stock surpasses $400, the next target will be $500 in the first half of 2025. 

Amgen Stock Key Price Points

• November 1984: Amgen stock hit an all-time low of $0.055. 
• July 2024: Amgen stock hit an all-time high of $344.45. 
• September 2024: Amgen stock posted an all-time closing high of $337.38. 

Best Performance of Amgen Stock in History

• 1991: Best annual performance ever for Amgen stock, recording a rise of 265%. 
• Q1 1991: Best quarterly performance ever for Amgen stock, recording a rise of 111%. 
• December 1987: Best monthly performance ever for Amgen stock, recording a rise of 46%. 

Worst Performance of Amgen Stock in History

• 2007: Worst annual performance ever for Amgen stock, recording a drop of 32%. 
• Q1 1993: Worst quarterly performance ever for Amgen stock, recording a drop of 47%. 
• February 1993: Worst monthly performance ever for Amgen stock, recording a drop of 42%. 

Key Events in Amgen's History

• June 1983: Amgen shares began trading on Wall Street at a price of $0.244. 
• May 1990: Amgen stock traded above $1 for the first time ever. 
• August 2014: Amgen stock surpassed $100 for the first time. 
• November 2019: Amgen stock traded above $200 for the first time ever. 
• January 2024: Amgen stock surpassed $300 for the first time. 

Top Amgen Stock Forecasts for 2024

• Wells Fargo: The company expects Amgen stock to reach $335 by the end of 2024. 
• TD Cowen: The firm expects Amgen stock to reach $383 by the end of 2024. 
• Bernstein: The firm expects Amgen stock to reach $380 by the end of 2024. 

• Cantor Fitzgerald: The firm expects Amgen stock to reach $405 by the end of 2024. 
• Bank of America: The bank expects Amgen stock to reach $340 by the end of 2024. 
• Goldman Sachs: The group expects Amgen stock to reach $355 by the end of 2024. 
• Morgan Stanley: The group expects Amgen stock to reach $330 by the end of 2024. 
• Citigroup: The group expects Amgen stock to reach $310 by the end of 2024. 
• UBS: The German bank expects Amgen stock to reach $300 by the end of 2024. 
• JP Morgan: The group expects Amgen stock to reach $320 by the end of 2024. 
• Wedbush: The firm expects Amgen stock to reach $310 by the end of this year. 

Factors Impacting Amgen's Forecast

• Company’s financial performance: Revenue and earnings play a key role in the stock’s forecast, including new products and sales. 
• Research and development strategies: The company’s success in developing new drugs boosts the stock’s valuation. 
• Regulatory and legislative factors: Obtaining drug approvals from regulatory bodies is an important factor for Amgen. 
• Market competition: Intense competition affects Amgen's market share. 
• Global economic conditions: Inflation and interest rates play a role in the healthcare sector’s performance. 
• Market volatility: The stock is influenced by both economic news and company-related news. 
• Geopolitical tensions: These affect the macro economy and consequently the stock. 

Frequently Asked Questions about Amgen

Is Amgen Stock a Good Investment?

Amgen stock is currently trading around $320. 

In light of most forecasts pointing towards an upward trend until the end of the year, we believe levels between $320 and $300 are suitable for investment, with a target above $350 in 2024 and near $450 in 2025. 

How to Invest in Amgen?

1. Buy shares directly: Buying Amgen shares (AMGN) on the stock exchange is the most straightforward way to invest. 
2. Invest via Exchange-Traded Funds (ETFs): You can indirectly invest in Amgen through these funds. 
3. Long-term investment: Holding Amgen shares to benefit from the company's future growth. 
4. Stock speculation: Day trading or speculative strategies on Amgen stock rely on market knowledge. 
5. Convertible bonds investment: An opportunity to invest in Amgen's debt and later convert it into shares. 
6. Financial options (Options): Using options to control the stock price in the future. 

Will Amgen Stock Hit $350 in 2024?

In light of recent developments around the future of U.S. interest rates and the current pricing reflecting two rate cuts in November and December, the biotechnology sector will be one of the biggest beneficiaries of market liquidity and lower borrowing costs. 

Therefore, it is not entirely out of the question for Amgen stock to rise to $380 in 2024, with a strong push beyond this level in 2025. 

Is Amgen Stock Expected to Rise in 2024?

Yes, Amgen stock is expected to continue its upward trajectory this year, as most major institutions, banks, and experts forecast an upward trend. 

Top Biotechnology Companies Listed on U.S. Stock Markets

• Gilead Sciences: A leader in developing treatments for viral diseases like HIV and Hepatitis C. 
• Biogen: Specializes in developing treatments for neurological diseases such as multiple sclerosis and Alzheimer's disease. 
• Regeneron Pharmaceuticals: A leading company in developing treatments for infectious diseases, autoimmune diseases, and cancer. 
• Moderna: Became prominent after developing the mRNA vaccine for COVID-19. 
• Eli Lilly: Heavily invests in biotechnology and develops treatments for diseases such as cancer and diabetes. 

Largest Companies in the World by Market Cap in 2024

1. Apple Inc. - $3.58 trillion market cap. 
2. NVIDIA - $3.52 trillion market cap. 
3. Microsoft - $3.19 trillion market cap. 
4. Alphabet (Google) - $2.04 trillion market cap. 
5. Amazon - $1.99 trillion market cap. 
6. Saudi Aramco - $1.74 trillion market cap. 
7. Meta (Facebook) - $1.47 trillion market cap. 
8. Taiwan Semiconductor Manufacturing Co. Ltd. - $1.03 trillion market cap. 
9. Berkshire Hathaway - $996 billion market cap. 
10. Broadcom - $838 billion market cap. 

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AMGEN Inc. (AMGN) Technical Analysis

Amgen stock started a long-term upward trend journey in August 2011, beginning at $47.75 and reaching the recent all-time high of $346.48. The stock has shown some downward correction, and the following chart illustrates the general upward trend:

Since mid-last year, the stock has been moving within an upward channel that enhances the chances of continuing the main upward trend. However, it might need to revisit the support of this channel around $295.00, according to trading rules within price channels, before rising again, according to the suggested scenario shown in the image above. This aligns with the short-term stock analysis, where we see from the daily chart that the stock is undergoing a downward correction from $211.43, illustrated in the following image:

The stock is now testing the Fibonacci 23.6% correction level, which forms an important support at $314.60. Breaking it will push the price to target areas of $294.90, which could extend to $279.00 initially before making any new positive attempts.

On the other hand, the stock is forming a negative technical pattern, represented by a triple top that could confirm the downward correction extending to the above-mentioned targets, supported by the negative pressure from the 50-moving average.

Technical View

Another technical view appears in the short-term frames, where the recent trades are confined within a bullish pennant pattern. The stock is now testing its support level, and a rebound upwards from the current levels and a break of $335.45 will confirm the positive effect of this pattern, then pushing it to resume the main upward trend.

Conclusion

To sum up, the stock is facing conflicting factors that may cause mixed trading, with a need to monitor key levels that will determine the next direction. These levels are as follows:

• Support level $314.60: Breaking this level will push the price to carry out the downward correction mentioned above, potentially extending to target areas of $263.00 if the previously mentioned correction levels are exceeded.
 
• Resistance level $335.45: Breaking this level will halt the corrective downward scenario and lead to new gains that extend to areas of $373.00.
 

Ethereum price (ETHUSD) achieved initial break to 23.6% Fibonacci correction level to reinforce the expectations of continuing the correctional bearish trend in the upcoming sessions, paving the way to target 2548.15$ followed by 2496.22$ that represent our next negative stations.

The expected trading range for today is between 2500.00$ support and 2700.00$ resistance.

Trend forecast: Bearish

Bitcoin price (BTCUSD) faces negative pressure to break 66980.00$ level and attempts to hold below it, to head towards turning to decline for the rest of the day and target 65485.00$ areas mainly.

Therefore, the bearish bias will be suggested for the rest of the day, supported by stochastic current negativity, noting that breaching 66980.00$ and holding above it again will reactivate the bullish wave that its next target located at 68050.00$.

The expected trading range for today is between 65500.00$ support and 68000.00$ resistance.

Trend forecast: Bearish

Brent oil price is testing the key support 75.36$, and as we mentioned this morning, the price needs to hold above this level to keep the bullish trend valid and active for the upcoming period, supported by the EMA50, reminding you that our next target is located at 76.84$, while breaking 75.36$ represents the key to suffer additional losses and head to visit 73.90$ areas.

The expected trading range for today is between 74.70$ support and 77.70$ resistance.

Trend forecast: Bullish