Amneal Pharmaceuticals AMRX shares rallied 7.3% in the last trading session to close at $6.34. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.2% gain over the past four weeks.

The rise in share price is attributable to positive investor expectations for the company’s prospects. Amneal is involved in the development, marketing, and distribution of a diverse portfolio of over 270 pharmaceutical products, including generics, injectables, biosimilars and specialty branded pharmaceuticals. Management expects to generate revenues in the range of $2.55 and $2.65 billion in 2024, suggesting a 7-11% growth over the year-ago period.

This pharmaceutical company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $614.46 million, up 10.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Amneal, the consensus EPS estimate for the quarter has been revised 5.9% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Amneal belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Century Therapeutics, Inc. IPSC, closed the last trading session 1.1% higher at $4.80. Over the past month, IPSC has returned 1.1%.

Century Therapeutics' consensus EPS estimate for the upcoming report has changed +14.7% over the past month to -$0.54. Compared to the company's year-ago EPS, this represents a change of -1.9%. Century Therapeutics currently boasts a Zacks Rank of #2 (Buy).

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AMNEAL PHARMACEUTICALS, INC. (AMRX) : Free Stock Analysis Report

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