Amarin Corporation plc (ADR) (NASDAQ: AMRN)
There’s been quite a bit of talk about Amarin stock. While some have strong feelings that it’s not a good long term investment option, others, including myself beg to differ. So, today we’ll talk about why I think Amarin is a great investment option.
AMRN Earnings Estimate Revisions
One of the biggest things that comes to mind when it comes to Amarin’s growth in the stock market is the recent earnings estimate revisions we’ve seen. In fact, throughout the past month, we’ve seen several revisions. This tells us that big money is becoming more bullish on the stock; which could, in and of itself, push the stocks value up. Here are some of the revisions we’ve seen…
- Current Quarter Estimates – Analysts are now predicting a loss of $0.11 per share; rather than the loss of $0.12 per share that was being predicted previously.
- Current Year Estimates – For the current year, Zacks reduced their loss projections from $0.42 per share to $0.39 per share.
Tides Are Changing In BioTech
When looking into the biotech industry as a whole we’re seeing analyst upgrades, earnings prediction increases, and more all across the board. The reality is that when the tides start to change, they tend to pic up even the struggling boats in the space. While, I think Amarin is on the right track and doesn’t need help, the changing tides in the industry should pick up the pace at which the stock is growing.
Where We’re Headed From Here
As I’ve mentioned in previous posts, I think AMRN is a great long term investment option. While the company is currently operating at a loss, it has a track record of reducing the losses and is moving closer to gains territory. Although we are going to see turbulence here and there, as we do with any small cap biotech stock, I think this one’s on a rocky road to the top!
What Do You Think?
Where do you think Amarin stock is headed? Let us know in the comments below!