Amgen Shares Plunge 1.22% to 6-Month Low Amid Earnings Decline, Clinical Uncertainties

Shares of Amgen (AMGN) fell 1.22% on September 9, 2025, marking their lowest level since June 2025, with an intraday decline of 2.23%. The stock’s underperformance reflects a confluence of near-term earnings pressures, mixed analyst sentiment, and clinical trial uncertainties.

Investor concerns were amplified by a projected 10.22% year-over-year decline in next-quarter earnings to $5.01 per share, despite positive annualized revenue growth estimates of 6.58%. The Zacks Consensus assigns Amgen a "Hold" rating, highlighting cautious optimism about short-term business trends but underscoring the lack of robust earnings revisions needed to justify a stronger price rally.

The stock’s valuation metrics further complicate its outlook. While Amgen’s forward P/E ratio of 13.44 lags behind the medical sector average of 22.21, its PEG ratio of 2.46 exceeds the sector mean of 1.75, signaling a potential misalignment between intrinsic value and growth expectations. This discrepancy has drawn both value investors and skeptics, contributing to the stock’s recent volatility.

Recent clinical data for rocatinlimab, a T-cell rebalancing therapy for atopic dermatitis, added to the mixed signals. Positive long-term efficacy results were tempered by adverse events such as gastrointestinal ulcers, raising questions about regulatory timelines and market adoption. Analysts remain divided, with Raymond James initiating a "Buy" rating while others like Leerink Partners maintain a "Hold," citing uncertainties around the drug’s commercial potential.

Amgen’s underperformance against the S&P 500 and medical sector also highlights broader investor skepticism. The stock has fallen 1.59% over the past month, trailing the sector’s 5.47% gain. Institutional activity reflects this duality: firms like New England Asset Management have increased holdings, while entities such as Amundi have sold shares, indicating hedging against near-term risks.

Macroeconomic headwinds, including global tariff threats and interest rate volatility, further weigh on the healthcare sector. However, Amgen’s $600 million R&D investment and leadership in biosimilars provide long-term growth catalysts. For now, the stock remains a cautious play, balancing strong fundamentals with near-term challenges in earnings and clinical execution.