Can This Healthcare Stock Keep Going After a Nearly 70% Surge?

• Amneal Pharmaceuticals (AMRX) is trading at new 5-year highs with strong technical momentum.
• AMRX has gained 69% over the past year.
• Shares maintain a 100% “Buy” technical opinion on Barchart.
• Analyst sentiment is positive, with multiple “Strong Buy” ratings and price targets as high as $15. 

Today’s Featured Stock

Valued at $3.98 billion, Amneal Pharmaceuticals (AMRX) is an integrated specialty pharmaceutical company. It focuses on developing, manufacturing, and distributing generic, brand, and biosimilar products. The company operates primarily in North America, Asia, and Europe.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AMRX checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct. 22, the stock has gained 27.56%.

Barchart Technical Indicators for Amneal Pharmaceuticals

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Amneal Pharma scored a new 5-year high of $13.37 on Jan. 7.

• AMRX has a Weighted Alpha of +83.10.
• Amneal Pharma has a 100% “Buy” opinion from Barchart.
• The stock gained 68.74% over the past year.
• AMRX has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $13.23 with a 50-day moving average of $12.
• Amneal Pharma made 12 new highs and gained 9.03% in the last month.
• Relative Strength Index (RSI) is at 68.22.
• There’s a technical support level around $12.76.

Don’t Forget the Fundamentals

• $3.98 billion market capitalization.
• 18.81x trailing price-earnings ratio.
• Revenue is expected to grow 7.83% this year and another 6.67% next year.
• Earnings are estimated to increase 37.67% this year and an additional 16.04% next year.

Analyst and Investor Sentiment on Amneal Pharmaceuticals

• Wall Street analysts tracked by Barchart have given 5 “Strong Buy” and 1 “Hold” opinion on the stock with price targets between $13 and $15.
• Value Line ranks the stock “Average.”
• CFRA’s MarketScope Advisor rates the stock as “Hold.”
• Morningstar thinks with the stock’s recent runup, it’s still fairly valued.
• 9,200 investors are monitoring the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
• Short Interest is just 1.70% of the float.

The Bottom Line on Amneal Pharmaceutical

Wall Street views this stock favorably and predicts decent increases in both revenue and earnings. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.