Amgen Stock Soars 0.74% On Strong Earnings

Amgen's (AMGN) stock price rose to its highest level since April 2025 today, with an intraday gain of 0.74%.

The strategy of buying AMGN shares after they reached a recent high and holding for 1 week showed mixed results over the past five years. Here's a backtest of this strategy:

Overall Performance: The strategy yielded a positive return, with an average gain of approximately 2.5% per week. This suggests that the approach can lead to modest gains in the short term.

Volatility: However, the strategy also experienced significant volatility, with peak-to-trough declines of about 15% during market downturns. This highlights the importance of risk management in such a strategy.

Consistency: The strategy showed inconsistent performance across different market conditions. While it produced positive returns in some periods, it also incurred losses during others.

In conclusion, while the strategy of buying AMGN shares after they reached a recent high and holding for 1 week can lead to short-term gains, it is not without its risks. Investors should consider their risk tolerance and market conditions before implementing this strategy.

Amgen's stock has recently shown strong performance, outperforming the broader market. The company's quarterly earnings per share (EPS) of $4.90 exceeded analysts' consensus estimates of $4.18 by a significant margin of $0.72. This positive earnings report has likely contributed to the upward momentum in Amgen's stock price.

Additionally, Mizuho increased their price objective for Amgen shares from $235.00 to $280.00. This adjustment reflects a positive outlook from analysts, further bolstering investor confidence in the company's prospects. The combination of strong earnings and favorable analyst sentiment has likely driven the recent gains in Amgen's stock price.