Our Stock of the Week is Amneal Pharmaceuticals (AMRX). AMRX develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. In 2017, privately-owned Amneal merged with publicly listed California-based generic drug specialist Impax Laboratories to create the fifth-largest generic drug company in the US.
In 2019, AMRX purchased a 65% stake in Kentucky-based AvKARE, which provides pharmaceuticals, medical and surgical products, and services primarily to governmental agencies. It also bought a 98% stake in Kashiv Speciality Pharmaceuticals, a provider of drug delivery platforms.
AMRX now has a broad range of offerings. In November, the CEO stated, “We are on track to launch more than 40 new generic products in 2023. Our new biosimilars are outperforming, and IPX203 for Parkinson’s remains on track to launch in 2024. Looking ahead, we expect continued strong growth and momentum across our business.”
Only two analysts cover the company, but their earnings estimates average $0.60 for 2024. Earnings for the fourth quarter should be out within the next two weeks.
The stock is a value play, but the chart is developing well as it rides its 50-day simple moving average and a trend line. $6 is the first hurdle before it tests the highs around $6.25.
As always, we will not chase the stock on Monday but will look to aggressively trade it as the price action develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in AMRX. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
