Amneal Pharmaceuticals (AMRX) Stock Sinks As Market Gains: What You Should Know
Amneal Pharmaceuticals (AMRX) closed at $4.33 in the latest trading session, marking a -0.69% move from the prior day. This change lagged the S&P 500's 0.77% gain on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 1.49%.
Heading into today, shares of the pharmaceutical company had lost 3.54% over the past month, lagging the Medical sector's gain of 4.73% and the S&P 500's gain of 5.03% 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. The company is expected to report EPS of $0.10, up 11.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $447.96 million, up 10.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $1.90 billion, which would represent changes of +60% and +16.97%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AMRX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 2.36% lower. AMRX currently has a Zacks Rank of #4 (Sell).
In terms of valuation, AMRX is currently trading at a Forward P/E ratio of 7.83. Its industry sports an average Forward P/E of 16.7, so we one might conclude that AMRX is trading at a discount comparatively.
It is also worth noting that AMRX currently has a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMRX's industry had an average PEG ratio of 1.17 as of yesterday's close.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.