Amgen (AMGN) has moved back into focus after two key updates. The company reported second quarter 2026 earnings that beat expectations and raised full year guidance, while new TEZSPIRE Phase 3 data reinforced its pipeline momentum.

Over the past year Amgen’s share price has gathered momentum, with a 30 day share price return of 16.88% and a 90 day share price return of 28.14% helping lift the stock to US$442.84. Over the same period, the 1 year total shareholder return of 60.34% and 5 year total shareholder return of 134.25% reflect how investors have responded to a mix of positive TEZSPIRE data, raised 2026 guidance and, more recently, regulatory questions around Tavneos.

Surf 54 high quality undervalued stocks hand picked for strong fundamentals if Amgen’s TEZSPIRE progress and earnings momentum have you looking for other potential compounders in a similar quality bracket.

After a rapid move to around US$442, powered by fresh TEZSPIRE data and higher 2026 guidance, Amgen now asks a simple question: Do current valuation metrics still leave enough upside to justify taking new risk here?

Most Popular Narrative: 23% Overvalued

Amgen’s last close at $442.84 sits well above the narrative fair value of $359.98. This frames the current TEZSPIRE driven enthusiasm against a more cautious long term view according to AnimalDoctorKwon.

The "Amgen 2027 Bull Case" relies on a classic top-line fallacy: assuming that macro obesity market growth and FDA's CNPV (Commissioner’s National Priority Voucher) tailwinds will automatically trigger a re-rating.

Here is the cold, data-driven reality:

Read the complete narrative.

The fair value below today’s price reflects a narrative that leans on specific revenue growth, margin resilience and a premium future earnings multiple. The exact combination of those inputs drives the $359.98 figure.

Result: Fair Value of $359.98 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if Amgen delivers stronger than expected TEZSPIRE adoption or addresses concerns around CNPV exposure, this bearish 23% overvaluation narrative could quickly lose influence.

Find out about the key risks to this Amgen narrative.

Another View On Amgen’s Valuation

The user narrative frames Amgen as 23% overvalued at $442.84 versus a $359.98 fair value. In contrast, our DCF model points to a fair value of $699.57, which is about 36.7% above the current price and indicates the stock may be undervalued based on projected cash flows. Consider which perspective better aligns with the level of risk you are willing to take.

Look into how the SWS DCF model arrives at its fair value.

Next Steps

With sentiment on Amgen split between enthusiasm and caution, it makes sense to move quickly, review the underlying data, and weigh both sides for yourself. A good place to start is with the 4 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Amgen?

If Amgen’s story has sharpened your focus, do not stop here. Use the Simply Wall St Screener to source fresh ideas that fit your style and risk tolerance.

• Chase potential mispricing by scanning a curated pool of quality stocks that look overlooked using the 54 high quality undervalued stocks.
• Strengthen your search for resilience by focusing on companies with robust finances through the list of solid balance sheet and fundamentals (52 results).
• Hunt for lesser known opportunities with solid fundamentals that the market may be ignoring via the 20 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.