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

Zacks Equity Research

Amarin (AMRN) closed at $6.68 in the latest trading session, marking a -1.18% move from the prior day. This move lagged the S&P 500's daily gain of 2.62%. Elsewhere, the Dow gained 3.16%, while the tech-heavy Nasdaq added 2.06%.

AMRN will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMRN to post earnings of -$0.04 per share. This would mark a year-over-year decline of 300%. Our most recent consensus estimate is calling for quarterly revenue of $146.64 million, up 45.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $665.69 million, which would represent changes of +50% and +54.9%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AMRN. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.16% higher. AMRN currently has a Zacks Rank of #2 (Buy).

In terms of valuation, AMRN is currently trading at a Forward P/E ratio of 270.4. This represents a premium compared to its industry's average Forward P/E of 29.03.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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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