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 19.8% over the past month. The stock hit a new 52-week high of $70.5 in the previous session. ANI Pharmaceuticals has gained 22.7% since the start of the year compared to the 6.2% move for the Zacks Medical sector and the 1.3% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great 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 February 29, 2024, ANI reported EPS of $1 versus consensus estimate of $0.8 while it beat the consensus revenue estimate by 7.02%.
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 B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.5X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 13.2X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, ANI currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 meets the list of requirements. Thus, it seems as though ANI shares could have potential in the weeks and months to come.
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 B.
Earnings were strong last quarter. Exelixis, Inc. beat our consensus estimate by 6.45%, and for the current fiscal year, EXEL is expected to post earnings of $1.46 per share on revenue of $1.91 billion.
Shares of Exelixis, Inc. have gained 0.7% over the past month, and currently trade at a forward P/E of 14.99X and a P/CF of 28.44X.
The Medical - Biomedical and Genetics industry is in the top 32% 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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ANI Pharmaceuticals, Inc. (ANIP) : Free Stock Analysis Report
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