Amneal Pharmaceuticals (AMRX) Gains But Lags Market: What You Should Know
In the latest trading session, Amneal Pharmaceuticals (AMRX) closed at $4.86, marking a +0.21% move from the previous day. The stock lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, added 0.28%.
Heading into today, shares of the pharmaceutical company had lost 2.02% over the past month, lagging the Medical sector's gain of 3.14% and the S&P 500's gain of 2.96% in that time.
Wall Street will be looking for positivity from AMRX as it approaches its next earnings report date. This is expected to be August 6, 2020. In that report, analysts expect AMRX to post earnings of $0.10 per share. This would mark year-over-year growth of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $456.18 million, up 12.74% from the prior-year quarter.
AMRX's full-year Zacks Consensus Estimates are calling for earnings of $0.57 per share and revenue of $1.91 billion. These results would represent year-over-year changes of +62.86% and +17.58%, respectively.
Any recent changes to analyst estimates for AMRX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.76% higher. AMRX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AMRX is holding a Forward P/E ratio of 8.48. This represents a discount compared to its industry's average Forward P/E of 16.92.
Also, we should mention that AMRX has a PEG ratio of 0.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMRX's industry had an average PEG ratio of 1.12 as of yesterday's close.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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