Amneal Pharmaceuticals (AMRX) shares rallied 6% in the last trading session to close at $8.30. 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 9.8% loss over the past four weeks.

The sudden soaring of the stock price can be attributed to positive investor expectations regarding the strong market potential of its generics as well as specialty pharmaceutical products portfolios. 

This pharmaceutical company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $707.4 million, up 14.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Amneal, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Amneal is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Ocular Therapeutix (OCUL), finished the last trading session 3.9% lower at $6.73. OCUL has returned -12.2% over the past month.

For Ocular Therapeutix , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.24. This represents a change of +14.3% from what the company reported a year ago. Ocular Therapeutix currently has a Zacks Rank of #3 (Hold).

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

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This article originally published on Zacks Investment Research (zacks.com).

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