ANI Pharmaceuticals, Inc. (ANIP) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of ANI Pharmaceuticals (ANIP)? Shares have been on the move with the stock up 19.5% over the past month. The stock hit a new 52-week high of $63.1 in the previous session. ANI Pharmaceuticals has gained 51.8% since the start of the year compared to the -2.1% move for the Zacks Medical sector and the -11.4% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 9, 2023, ANI reported EPS of $1.28 versus consensus estimate of $0.64 while it beat the consensus revenue estimate by 20.41%.
Valuation Metrics
ANI may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
ANI has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.2X. On a trailing cash flow basis, the stock currently trades at 15.1X versus its peer group's average of 14.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, ANI currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if ANI fits the bill. Thus, it seems as though ANI shares could have a bit more room to run in the near term.
How Does ANIP Stack Up to the Competition?
Shares of ANIP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Exelixis, Inc. (EXEL). EXEL has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Exelixis, Inc. beat our consensus estimate by 40.91%, and for the current fiscal year, EXEL is expected to post earnings of $0.99 per share on revenue of $1.84 billion.
Shares of Exelixis, Inc. have gained 6.5% over the past month, and currently trade at a forward P/E of 20.89X and a P/CF of 32.89X.
The Medical - Biomedical and Genetics industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ANIP and EXEL, even beyond their own solid fundamental situation.
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