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Amarin (AMRN) Outpaces Stock Market Gains: What You Should Know

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Amarin (AMRN - Free Report) closed the most recent trading day at $19.40, moving +0.41% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.19%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the biopharmaceutical company had lost 9.47% in the past month. In that same time, the Medical sector gained 1.85%, while the S&P 500 gained 3.72%.

AMRN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.03, up 133.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $133.55 million, up 72.7% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for AMRN. These recent revisions tend to reflect the evolving nature of short-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. 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 240.82% lower. AMRN currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AMRN has a Forward P/E ratio of 123.32 right now. This represents a premium compared to its industry's average Forward P/E of 28.55.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow AMRN in the coming trading sessions, be sure to utilize Zacks.com.


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