In the latest trading session, Amneal Pharmaceuticals (AMRX - Free Report) closed at $4.51, marking a -0.66% move from the previous day. This change lagged the S&P 500's daily gain of 0.78%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 1.44%.
Prior to today's trading, shares of the pharmaceutical company had lost 16.85% over the past month. This has lagged the Medical sector's loss of 1% and the S&P 500's loss of 1.32% in that time.
AMRX will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMRX to post earnings of $0.10 per share. This would mark year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $456.18 million, up 12.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.57 per share and revenue of $1.91 billion. These totals would mark changes of +62.86% and +17.58%, respectively, from last year.
Any recent changes to analyst estimates for AMRX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.76% higher within the past month. AMRX is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, AMRX is currently trading at a Forward P/E ratio of 7.94. This represents a discount compared to its industry's average Forward P/E of 16.03.
Investors should also note that AMRX has a PEG ratio of 0.32 right now. 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. The Medical - Drugs industry currently had an average PEG ratio of 0.99 as of yesterday's close.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.