In the latest trading session, Amarin (AMRN - Free Report) closed at $21.23, marking a +1.34% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.35%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.56%.
Prior to today's trading, shares of the biopharmaceutical company had lost 3.94% over the past month. This has lagged the Medical sector's gain of 3.32% and the S&P 500's gain of 4.69% in that time.
AMRN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.02, up 122.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $131.08 million, up 69.51% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for AMRN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 35.71% higher. AMRN is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMRN is currently trading at a Forward P/E ratio of 322.31. This represents a premium compared to its industry's average Forward P/E of 25.18.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.