Amneal Pharmaceuticals (AMRX) shares ended the last trading session 8.6% higher at $18.08. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.5% loss over the past four weeks.
Amneal Pharmaceuticals’ share price gain can likely be attributed to the growing investor optimism following the company’s completion of its acquisition of Kashiv BioSciences. The acquisition created an integrated global biosimilars platform spanning research, development, manufacturing and commercialization. The company described the transaction as a major long-term growth pillar extending into the 2030s.
This pharmaceutical company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +35.3%. Revenues are expected to be $817.01 million, up 4.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Amneal, the consensus EPS estimate for the quarter has been revised 23.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AMRX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Amneal is part of the Zacks Medical - Drugs industry. Ionis Pharmaceuticals (IONS), another stock in the same industry, closed the last trading session 5.1% lower at $44.84. IONS has returned -20.8% in the past month.
Ionis Pharmaceuticals' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1. Compared to the company's year-ago EPS, this represents a change of -63.9%. Ionis Pharmaceuticals currently boasts a Zacks Rank of #3 (Hold).
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AMNEAL PHARMACEUTICALS, INC. (AMRX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).