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ANI Pharmaceuticals, Inc. (ANIP) Hits Fresh High: Is There Still Room to Run?

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Have you been paying attention to shares of ANI Pharmaceuticals (ANIP - Free Report) ? Shares have been on the move with the stock up 19.4% over the past month. The stock hit a new 52-week high of $64.85 in the previous session. ANI Pharmaceuticals has gained 56% since the start of the year compared to the -3.2% move for the Zacks Medical sector and the -12% return for the Zacks Medical - Biomedical and Genetics industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 9, 2023, ANI reported EPS of $1.28 versus consensus estimate of $0.64 while it beat the consensus revenue estimate by 20.41%.

For the current fiscal year, ANI is expected to post earnings of $3.72 per share on $441.73 million in revenues. This represents a 174.26% change in EPS on a 39.62% change in revenues. For the next fiscal year, the company is expected to earn $4.35 per share on $474.92 million in revenues. This represents a year-over-year change of 16.76% and 7.51%, respectively.

Valuation Metrics

ANI may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

ANI has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 16.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.4X. On a trailing cash flow basis, the stock currently trades at 15.5X versus its peer group's average of 13.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, ANI currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if ANI fits the bill. Thus, it seems as though ANI shares could have a bit more room to run in the near term.

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