Ani Pharmaceuticals is Thursday's selection for IBD 50 Stocks To Watch from Investor's Business Daily as the relative strength line for its shares has reached a new high.
However, recent volatility and looming tariffs on pharmaceutical companies pose severe risks to setups even for the best drug stocks in the near term.
Ani Pharmaceuticals has formed a long cup-with-handle base with a buy point of 69.45. The blue dot on the stock's IBD MarketSurge weekly chart indicates the new high for its relative strength line. The relative strength line compares the performance of a stock with the benchmark S&P 500 index.
Ani Pharmaceuticals stock carries a Composite Rating of 97 out of a best-possible 99 while its Earnings Per Share Rating stands at 70. The Relative Strength Rating also shows Ani Pharmaceuticals has outperformed 91% of other stocks in the Investor's Business Daily database.
Mutual Funds Load Up On 'Golden Cross' Stock
Mutual funds have been loading up over the past 13 weeks, giving Ani Pharmaceuticals stock an Accumulation/Distribution Rating of A-. Funds own 67% of outstanding shares. The Up/Down Volume Ratio of 1.2 also shows that demand has been high over the past 50 trading days.
The stock's 50-day moving average recently moved back over its 200-day moving average in what is called a "golden cross."
That's helped Ani Pharmaceuticals stock to now rank first in the medical generic drugs group, according to IBD Stock Checkup. The company makes drugs to treat rare diseases.
Sales growth has been steady over the past eight quarters, ranging between 13% and 66%. Earnings also have grown in seven out of the past eight quarters.
Shares Gap Up On Results
Shares gapped up on Feb. 28 after fourth-quarter results showed that both sales and earnings accelerated. Sales grew 45% to $190.6 million while earnings per share of $1.63 grew 63% from the prior year.
The company raised its full-year 2025 sales outlook to $766 million at the midpoint, up from its earlier forecast for $749 million. Earnings per share of $6.31 at the midpoint would indicate a 22% increase from 2024.
Analysts polled by FactSet estimate earnings of $6.32 a share in 2025 and $6.98 a share in 2026.
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