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Amarin (AMRN) Surges 12.5%: Is This an Indication of Further Gains?

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Amarin (AMRN - Free Report) shares soared 12.5% in the last trading session to close at $18.84. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.4% gain over the past four weeks.

The price surge can be attributed to growing investor confidence regarding the company’s sole marketed drug, Vascepa, which is approved as an adjunct to diet for treating severe hypertriglyceridemia or elevated triglyceride levels.

This biopharmaceutical company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +131%. Revenues are expected to be $42.36 million, up 0.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Amarin, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AMRN going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Amarin is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Fortrea Holdings Inc. (FTRE - Free Report) , finished the last trading session 1.6% lower at $9.45. FTRE has returned -8.7% over the past month.

For Fortrea Holdings Inc., the consensus EPS estimate for the upcoming report has changed -13.3% over the past month to $0.15. This represents a change of -34.8% from what the company reported a year ago. Fortrea Holdings Inc. currently has a Zacks Rank of #3 (Hold).


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