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

Zacks Equity Research

Amarin (AMRN) closed at $19.04 in the latest trading session, marking a -1.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the biopharmaceutical company had lost 9.93% over the past month, lagging the Medical sector's loss of 1.25% and the S&P 500's gain of 1.18% in that time.

Wall Street will be looking for positivity from AMRN as it approaches its next earnings report date. In that report, analysts expect AMRN to post earnings of $0.01 per share. This would mark year-over-year growth of 111.11%. Meanwhile, our latest consensus estimate is calling for revenue of $134.45 million, up 73.87% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for AMRN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 203.76% lower. AMRN is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, AMRN is holding a Forward P/E ratio of 321.83. Its industry sports an average Forward P/E of 28.12, so we one might conclude that AMRN is trading at a premium comparatively.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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