For the quarter ended March 2026, Bloomin' Brands (BLMN - Free Report) reported revenue of $1.06 billion, up 1% over the same period last year. EPS came in at $0.67, compared to $0.59 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.04 billion, representing a surprise of +1.77%. The company delivered an EPS surprise of +17.59%, with the consensus EPS estimate being $0.57.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Bloomin' Brands performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of restaurants - System-wide total: 1,452 versus the four-analyst average estimate of 1,461.Comparable restaurant sales - U.S. - Fleming?s Prime Steakhouse and Wine Bar: 0.8% compared to the 0.4% average estimate based on four analysts.Comparable restaurant sales - U.S. - Carrabba?s Italian Grill: 1.3% versus 0.8% estimated by four analysts on average.Comparable restaurant sales - U.S. - Outback Steakhouse: -0.3% compared to the 0.3% average estimate based on four analysts.Comparable restaurant sales - U.S. - Combined U.S.: 0.9% versus 0.4% estimated by four analysts on average.Geographic Revenue- Total U.S.: $1.04 billion compared to the $1.02 billion average estimate based on two analysts.Geographic Revenue- Total U.S.- Franchise and other revenues: $10.26 million versus $9.55 million estimated by two analysts on average.Geographic Revenue- Total U.S.- Restaurant sales: $1.03 billion versus the two-analyst average estimate of $1.01 billion.Geographic Revenue- International Franchise- Franchise revenues: $7.57 million versus the two-analyst average estimate of $8.91 million.Revenues- Restaurant sales: $1.04 billion versus $1.02 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.Revenues- Franchise and other revenues: $17.85 million versus $18.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -11.1% change.Revenues- All other revenues: $9.65 million compared to the $9.79 million average estimate based on two analysts.View all Key Company Metrics for Bloomin' Brands here>>>
Shares of Bloomin' Brands have returned +1.8% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Bloomin' Brands and Dine Brands Global both reported higher revenue in the first quarter, as value offers, menu updates and turnaround efforts helped to offset still-elevated costs and cautious consumer spending.
The company pointed to improving performance at Outback Steakhouse as pricing actions, operational initiatives and higher guest spending helped support margins and sales growth.
• BMLN shares are consolidating. Where is BMLN stock headed?
Quarterly DetailsThe company reported first-quarter adjusted earnings per share of 67 cents, beating the analyst consensus estimate of 57 cents.
Quarterly sales of $1.059 billion (+1% year over year) outpaced the Street view of $1.04 billion, primarily due to higher comparable restaurant sales.
“Outback brand scores continue to improve, highlighting our craveable steaks and food quality,” said CEO Mike Spanos. “We are making progress on our turnaround and remain committed to driving long-term, sustainable, and profitable growth for Bloomin’ Brands.”
Adjusted operating income margin in the quarter under review contracted to 5.9% from 6.1%.
Restaurant-level operating margin expanded to 14% from 13.9% a year ago. The increase was primarily driven by higher average check per person due to pricing, cost-saving and productivity initiatives, and lower advertising expense, partially offset by inflation-driven increases in commodity, operating, and labor costs.
OutlookBloomin Brands is looking for second-quarter adjusted earnings per share of 27 cents to 32 cents, versus 22 cents analyst estimate.
The firm affirmed 2026 adjusted earnings per share guidance of 75 cents to 90 cents.
The firm expects U.S. comparable restaurant sales to grow between 1% and 2% in the second quarter of 2026.
BLMN Price Action: Bloomin’ Brands shares are trading higher by 48.35% to $8.55 at last check on Wednesday.
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SummaryBloomin' Brands delivered a better-than-expected Q1, with a 40% stock rally driven by positive comps and EPS growth.Q1 revenues rose 1.0% to $1.06B, with positive comps in all brands except Outback; Bonefish Grill led at 6.1%.Margins remained largely stable year-over-year, with adjusted EPS at $0.67, a $0.10 beat, aided by restructuring adjustments.We remain neutral, as a single strong quarter is insufficient; Q2 guidance implies continued EPS decline versus last year.Looking for a helping hand in the market? Members of BAD BEAT Investing get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off RiverNorthPhotography/iStock Unreleased via Getty Images
We remain neutral on Bloomin' Brands, Inc. (BLMN). When the company reported its 2025 earnings a few months ago, we covered the performance and noted that in our opinion, it was just not good
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Screen picks broker-upgraded stocks: HELE, BG, AVT, BLMN and SEM. Filter favors low price/sales, $5 shares, 100k plus daily volume and large market caps. Inflation spike and higher oil prices cloud Fed cuts, yet equities can still offer chances. Inflation has climbed sharply in recent months, while ongoing geopolitical tensions have driven global oil prices higher. In March, inflation reached its highest level in nearly a year as the conflict with Iran triggered a surge in energy prices. Inflation had also increased in February. The spike in inflation further weakened expectations of an interest rate cut in the near term, with several Federal Reserve officials now even weighing the possibility of a rate hike.
Last month, the Federal Reserve kept interest rates unchanged amid growing investor concerns about the health of the economy. Despite this volatile environment, investors should not shy away from equities. Instead, they should keep an eye on broker-favored stocks such as Helen of Troy (HELE - Free Report) , Bunge Global (BG - Free Report) , Avnet (AVT - Free Report) , Bloomin' Brands (BLMN - Free Report) and Select Medical (SEM - Free Report) ,
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Criteria# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Helen of Troy is advancing its growth strategy through a focused portfolio of Leadership Brands, including OXO, Hydro Flask and Osprey, which continue to deliver solid performance supported by innovation, new product launches and strong e-commerce execution across channels and key retail partners.
The company’s Elevate for Growth agenda, along with Project Pegasus, is driving efficiency, cost optimization and supply-chain improvements, helping mitigate tariff pressures and enhance long-term profitability. Strategic initiatives such as global expansion, digital commerce investments, social selling and active portfolio management are expected to support growth, while strong cash flow generation is aiding debt reduction and improving overall financial flexibility.
Helen of Troy, currently sporting a Zacks Rank #1 (Strong Buy), expects its current-quarter revenues to increase 0.9% year over year. HELE’s earnings surpassed the consensus mark in two of the last four quarters, missed once and matched once. The average miss is 5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge is a global agribusiness and food company worldwide. The company is executing a fundamental transformation anchored by the Viterra merger, expanding global origination, and processing scale and logistics efficiency. Management is prioritizing synergy capture, portfolio optimization and disciplined capital allocation to strengthen cash flows, reduce earnings volatility and enhance long-term returns across agricultural cycles.
Bunge, currently sporting a Zacks Rank #1, expects its 2026 earnings per share to increase 26.4% on a year-over-year basis. BG’s earnings surpassed the consensus mark in each of the last four quarters, the average beat being 27.5%.
Avnet, a leading global technology distributor and solutions provider, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 9.5%, on average. The Zacks Consensus Estimate for the current quarter has increased 11.6% over the past 60 days.
Avnet is benefiting from the strength of the defense and data center end markets. A continued focus on enhancing IoT capabilities is helping it expand into newer markets and gain customers. Better sales execution is anticipated to aid revenue growth in the near term.
Bloomin’ Brands is one of the world’s largest casual and upscale dining restaurant operators. Bloomin’ Brands manages and operates nearly 1,500 restaurants in the United States and internationally.
Bloomin’ Brands, currently carrying a Zacks Rank #3 (Hold), expects its 2026 earnings per share to decrease 28.1% on a year-over-year basis. The Zacks Consensus Estimate for the current year has remained stable over the past seven days.
Select Medical is benefiting from steady volume-led growth, supported by rising patient admissions, improving occupancy and disciplined capacity expansion across its specialty care platform. Strategic acquisitions, JVs, and planned facility additions are strengthening its market position and enhancing long-term revenue visibility. An aging population and increasing demand for post-acute care further support growth.
Select Medical, currently carrying a Zacks Rank #3, expects its 2026 earnings per share to increase 9.5% on a year-over-year basis. The Zacks Consensus Estimate for the current quarter has increased 7.4% over the past 60 days.
Dividends are a driving force of the investment world, providing investors with access to company profits and a reliable income stream. Add in the signals provided by insider buying, and the stage is set for market-beating total returns over time. The question is whether insider buying and dividends, on their own, are enough to merit investor confidence—and the answer may be "no." Factors such as growth, profitability, and market interest must also be considered to maximize returns and avoid unnecessary losses.
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Bankwell Financial Group Grows, Improves ProfitsBankwell Financial Group NASDAQ: BWFG is a small commercial bank holding company headquartered in New Canaan, Connecticut, serving as the parent company of Bankwell Bank. The company is growing, improving its deposit base, widening its margin, and reducing dependence on third-party services.
Bankwell Financial Group Today
BWFG
Bankwell Financial Group
$55.46 +0.31 (+0.55%)
As of 10:26 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$33.85▼
$56.40Dividend Yield1.44%
P/E Ratio11.15
Price Target$52.00
The stock price is rising, and insiders are buying into the rally. Insider activity is noteworthy because it was very tepid for years until Q3 2025, and then it exploded. Activity has remained solid since, with numerous insiders acquiring shares, and driving total ownership over 20%.
Bankwell Financial Group’s dividend is worthwhile. The stock yields about 1.5% with shares near $50, the payout ratio is low at about 15%, and annual distribution increases are becoming a possibility. A dividend increase would serve as a market catalyst, potentially triggering an influx of new capital.
Analyst and institutional trends are relatively strong for a bank this small. Institutions own about 36% of the stock and have been aggressively accumulating. The trailing 12-month pace as of mid-May was approximately $4-to-$1, with bullish behavior sustained for seven consecutive quarters. Analyst trends are less robust, with only four tracked, but they rate the stock as a consensus Moderate Buy. The only downside is that analysts view the stock as fairly valued as of mid-May, so another catalyst is needed. The upcoming fiscal Q2 2026 earnings report may provide it, but the consensus forecast isn’t promising, suggesting the third consecutive quarter with revenue near $31 million.
Bloomin’ Brands: Insiders Betting Big on Dividend ReinstatementBloomin’ Brands NASDAQ: BLMN is technically not a dividend stock, having suspended its payment in 2025 to focus on balance sheet health and a company turnaround.
Bloomin' Brands Today
$8.44 +0.38 (+4.75%)
As of 10:28 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$5.19▼
$10.70P/E Ratio33.78
Price Target$8.78
The turnaround, however, already shows signs of traction, suggesting dividends will be reinstated at some future date, potentially within the next four to eight quarters. That’s a long time to wait, but other catalysts for the share price exist, including the traction seen in the fiscal Q1 release and its impact on sell-side sentiment. Insiders, meanwhile, including numerous directors, are buying shares with the market at long-term lows.
Sell-side sentiment, as reflected by the analysts and institutions that track the market and drive its action, is shifting. While still in the early phases, analysts, who had been reducing price targets and sentiment ratings, shifted to a more bullish posture following the report. Institutions likewise reverted to accumulation. Analysts' revisions include numerous price target increases, affirming potential for a double-digit rebound.
Nike Directors Buy Shares Conspicuously in Q2Nike NYSE: NKE is not out of the weeds, and its dividend is threatened by reduction; however, the company has over $8 billion in cash, can sustain the payment, and is tracking for a turnaround. Signs of managerial confidence are evident in the CEO's purchases and, again, in those of directors, including a million-dollar acquisition by Apple's NASDAQ: AAPL CEO Tim Cook. The only question is when the dividend payout ratio will improve—and that is expected to begin this year.
NIKE Today
$45.46 -0.50 (-1.08%)
As of 10:28 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$41.35▼
$80.17Dividend Yield3.61%
P/E Ratio29.99
Price Target$60.89
Nike's dividend is a winner for investors. Trading near long-term valuations and share prices, the yield is 4%, and there is another reason to own it.
The company is on track to be included in the Dividend Aristocrat Index this year. Index inclusion is a catalyst, as it will trigger increased ownership by funds pegged to the index. In this scenario, the combined effects of business improvement, dividend increases, and index inclusion can drive a robust stock price recovery.
Analysts and institutions give mixed signals about Nike’s stock price direction. Analysts who rate Nike as a consensus Hold carry a 45% Buy-side bias but are significantly reducing their price targets, leading to the low-end range. While consensus forecasts 45% upside, current trends suggest a 45% downside is more likely. The good news is that institutions are likely buyers. They sold at the end of last year, but only minimally, and have reverted to buying in 2026. Nike’s stock price is likely near its bottom and may move lower to confirm it before the stock price recovers. A recovery could begin soon, potentially triggered by full year 2026 results.
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Key Takeaways Screen flags BG, ADM, AVT, AAL and BLMN as Middle East tensions and higher oil prices fuel volatility. Filters for net broker upgrades, rising next-quarter estimates, low P/S, $5 plus price and solid volume.AAL expects record May 21-Sept. 8, 2026 travel: 75M passengers, 750K flights. The ongoing tensions in the Middle East have resulted in significant uncertainty, making the U.S. stock market highly volatile. The continued restrictions in the Strait of Hormuz and the resultant jump in oil prices compounded the stock market misery. A hotter-than-expected U.S. consumer inflation data for April and the recent slump in tech stocks, following their aggressive profit booking, add to the list of concerns.
Despite the current turmoil, turning one’s back on equities is never advisable. So, what’s the way forward? One way is to adhere to broker advice. In the absence of proper guidance, individual investors may end up selecting the wrong stocks for their portfolio. This might lead them to waste the hard-earned money they invested in the stock market.
As brokers indulge in extensive research on stocks under their coverage, they have access to much more detailed information on a company. We believe investors would do well to keep an eye on broker-favored stocks, such as Bunge Global (BG - Free Report) , Archer Daniels Midland (ADM - Free Report) , Avnet (AVT - Free Report) , American Airlines (AAL - Free Report) , and Bloomin’ Brands (BLMN - Free Report) .
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendations and upward revisions of earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is included. The price/sales ratio takes care of a company’s top line, making the strategy foolproof.
Screening Criteria# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian = Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Bunge Global is an agribusiness and food company worldwide, executing a fundamental transformation anchored by the Viterra merger, expanding global origination, processing scale and logistics efficiency. Bunge remains committed to its capital allocation priorities, paying dividends and repurchasing shares, while also reinvesting in growth.
Currently sporting a Zacks Rank #1 (Strong Buy), Bunge expects its 2026 earnings per share to increase 26.4% on a year-over-year basis. BG’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 27.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer Daniels has been actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company’s Nutrition segment is showing signs of recovery, led by improving performance in Human Nutrition.
Archer Daniels, currently carrying a Zacks Rank #2 (Buy), expects its 2026 earnings per share to increase 32.4% on a year-over-year basis. ADM’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 5.4%.
Avnet is benefiting from strong demand in AI infrastructure, networking and industrial markets. The company is also benefiting from demand for components that support AI infrastructure. AI buildouts are increasing demand for products tied to power management, cooling systems, connectors, capacitors, resistors and sensors. Better sales execution is anticipated to aid revenue growth in the near term.
Avne Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 9.5%, on average. The Zacks Consensus Estimate for the current quarter has increased 20.6% over the past 60 days.
American Airlines is based in Fort Worth, TX. Strong air travel demand, despite high fuel costs, is aiding AAL. American Airlines expects to fly over 4.2 million customers across more than 40,000 flights from May 21 through May 26. The busiest day in terms of travel is likely to be May 22. AAL expects record travel during the entire summer season (May 21-Sept. 8, 2026). During the period, the airline expects to fly a record 75 million passengers across 750,000 flights.
The company’s high debt levels are worrisome. The carrier’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat is 2.6%. American Airlines currently carries a Zacks Rank #3 (Hold).
Bloomin’ Brands is one of the world’s largest casual and upscale dining restaurant operators. Bloomin’ Brands manages and operates nearly 1,500 restaurants in the United States and internationally.
Bloomin’ Brands, currently carrying a Zacks Rank #3, expects its 2026 earnings per share to decrease 22.8% on a year-over-year basis. The Zacks Consensus Estimate for the current year has remained stable over the past seven days.
Amphastar Pharmaceuticals (AMPH) is rated a Buy, with ~81% upside to a $33 fair value, despite margin pressures for 2026. AMPH faces declining sales in legacy products but expects mid- to high-single-digit revenue growth in 2026, led by Baqsimi and new launches. I estimate operating margin to dip to 22% in 2026 due to increased expenses, recovering to 26% by 2030 as higher-margin pipeline products ramp up.
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH – Get Free Report)’s share price crossed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $25.36 and traded as low as $19.27. Amphastar Pharmaceuticals shares last traded at $19.59, with a volume of 534,127 shares.
Analysts Set New Price Targets Several research analysts have recently commented on AMPH shares. Needham & Company LLC lowered their target price on shares of Amphastar Pharmaceuticals from $34.00 to $30.00 and set a “buy” rating on the stock in a report on Friday, February 27th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Amphastar Pharmaceuticals in a research note on Monday, December 29th. Wells Fargo & Company reduced their price target on Amphastar Pharmaceuticals from $34.00 to $30.00 and set an “overweight” rating on the stock in a research report on Friday, February 27th. Finally, Barclays began coverage on Amphastar Pharmaceuticals in a research note on Tuesday, December 9th. They set an “equal weight” rating and a $30.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $29.50.
Read Our Latest Stock Analysis on Amphastar Pharmaceuticals
Amphastar Pharmaceuticals Price Performance The business’s 50-day simple moving average is $23.86 and its two-hundred day simple moving average is $25.36. The stock has a market cap of $888.80 million, a price-to-earnings ratio of 9.65, a price-to-earnings-growth ratio of 1.60 and a beta of 0.93. The company has a debt-to-equity ratio of 0.77, a current ratio of 4.02 and a quick ratio of 2.90.
Amphastar Pharmaceuticals (NASDAQ:AMPH – Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported $0.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.97 by ($0.24). The firm had revenue of $183.11 million during the quarter, compared to analyst estimates of $190.48 million. Amphastar Pharmaceuticals had a return on equity of 17.58% and a net margin of 13.63%. Research analysts expect that Amphastar Pharmaceuticals, Inc. will post 3.49 earnings per share for the current year.
Institutional Inflows and Outflows Hedge funds and other institutional investors have recently made changes to their positions in the business. Farther Finance Advisors LLC boosted its position in shares of Amphastar Pharmaceuticals by 356.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 944 shares of the company’s stock worth $25,000 after purchasing an additional 737 shares in the last quarter. FNY Investment Advisers LLC bought a new position in shares of Amphastar Pharmaceuticals in the 3rd quarter worth $26,000. Global Retirement Partners LLC lifted its holdings in shares of Amphastar Pharmaceuticals by 219.0% in the 3rd quarter. Global Retirement Partners LLC now owns 1,024 shares of the company’s stock worth $27,000 after purchasing an additional 703 shares in the last quarter. Quarry LP acquired a new stake in Amphastar Pharmaceuticals in the 3rd quarter valued at $32,000. Finally, GAMMA Investing LLC grew its position in Amphastar Pharmaceuticals by 37.8% in the 4th quarter. GAMMA Investing LLC now owns 1,685 shares of the company’s stock valued at $45,000 after purchasing an additional 462 shares during the period. 65.09% of the stock is owned by institutional investors and hedge funds.
About Amphastar Pharmaceuticals (Get Free Report)
Amphastar Pharmaceuticals, Inc is a specialty pharmaceutical company headquartered in Rancho Cucamonga, California. Founded in 2004, Amphastar focuses on the development, manufacturing and commercialization of injectable and inhalation products. The company’s manufacturing facilities in California produce both generic and proprietary formulations designed to address urgent and chronic medical conditions.
Amphastar’s portfolio includes a range of injectable generics such as epinephrine, naloxone and lidocaine, serving hospital, emergency medical and retail pharmacy channels.
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SG Americas Securities LLC purchased a new stake in Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH – Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 93,515 shares of the company’s stock, valued at approximately $2,504,000. SG Americas Securities LLC owned about 0.20% of Amphastar Pharmaceuticals at the end of the most recent reporting period.
Other institutional investors also recently modified their holdings of the company. New York State Common Retirement Fund lifted its stake in Amphastar Pharmaceuticals by 86.4% in the 3rd quarter. New York State Common Retirement Fund now owns 90,169 shares of the company’s stock valued at $2,403,000 after purchasing an additional 41,800 shares during the last quarter. Capital Fund Management S.A. acquired a new position in Amphastar Pharmaceuticals during the second quarter worth approximately $931,000. Rice Hall James & Associates LLC bought a new stake in Amphastar Pharmaceuticals in the third quarter valued at approximately $3,447,000. SummerHaven Investment Management LLC acquired a new stake in shares of Amphastar Pharmaceuticals in the third quarter valued at approximately $1,018,000. Finally, Quantbot Technologies LP lifted its position in shares of Amphastar Pharmaceuticals by 188.8% in the second quarter. Quantbot Technologies LP now owns 60,955 shares of the company’s stock valued at $1,400,000 after buying an additional 39,846 shares during the last quarter. 65.09% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth A number of research analysts recently weighed in on the company. Needham & Company LLC decreased their target price on Amphastar Pharmaceuticals from $34.00 to $30.00 and set a “buy” rating on the stock in a report on Friday, February 27th. Barclays began coverage on Amphastar Pharmaceuticals in a report on Tuesday, December 9th. They set an “equal weight” rating and a $30.00 price target for the company. Wells Fargo & Company reduced their price objective on shares of Amphastar Pharmaceuticals from $34.00 to $30.00 and set an “overweight” rating for the company in a research report on Friday, February 27th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Amphastar Pharmaceuticals in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, Amphastar Pharmaceuticals has a consensus rating of “Hold” and a consensus price target of $29.50.
Check Out Our Latest Report on AMPH
Amphastar Pharmaceuticals Price Performance Amphastar Pharmaceuticals stock opened at $20.45 on Friday. The company has a market capitalization of $927.82 million, a price-to-earnings ratio of 10.07, a PEG ratio of 1.71 and a beta of 0.92. The company has a current ratio of 4.02, a quick ratio of 2.90 and a debt-to-equity ratio of 0.77. Amphastar Pharmaceuticals, Inc. has a 12 month low of $17.03 and a 12 month high of $31.26. The stock’s 50 day moving average is $23.52 and its 200-day moving average is $25.24.
Amphastar Pharmaceuticals (NASDAQ:AMPH – Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($0.24). Amphastar Pharmaceuticals had a net margin of 13.63% and a return on equity of 17.58%. The firm had revenue of $183.11 million during the quarter, compared to the consensus estimate of $190.48 million. Equities research analysts expect that Amphastar Pharmaceuticals, Inc. will post 3.49 EPS for the current year.
About Amphastar Pharmaceuticals (Free Report)
Amphastar Pharmaceuticals, Inc is a specialty pharmaceutical company headquartered in Rancho Cucamonga, California. Founded in 2004, Amphastar focuses on the development, manufacturing and commercialization of injectable and inhalation products. The company’s manufacturing facilities in California produce both generic and proprietary formulations designed to address urgent and chronic medical conditions.
Amphastar’s portfolio includes a range of injectable generics such as epinephrine, naloxone and lidocaine, serving hospital, emergency medical and retail pharmacy channels.
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RANCHO CUCAMONGA, CA / ACCESS Newswire / April 6, 2026 / Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) ("Amphastar" or the "Company") announced today that Bill Peters, CFO, Tony Marrs, EVP of Regulatory Affairs and Clinical Operations, and Dan Dischner, SVP of Corp. Communication, will be presenting at the 25th Annual Needham Healthcare Conference on Tuesday, April 14, 2026, at 11:45 am ET. For access to the webcast, visit Amphastar Pharmaceuticals' website at http://ir.amphastar.com. This webcast will be available for 30 days following the presentation.
About Amphastar Pharmaceuticals, Inc.
Amphastar is a biopharmaceutical company that focuses on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells active pharmaceutical ingredients, or API products. Most of the Company's finished products are contracted and distributed through group purchasing organizations, drug wholesalers, and drug retailers. More information and resources are available at www.amphastar.com.
Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar.
Forward-Looking Statements
All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth and our ability to continue to scale, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the impact of our products, including their potential for continued revenue growth, the strategic trajectory of and market for our product pipeline, our long-term strategic vision, our ability to leverage our existing expertise and technology, the impacts of any licensing agreements and ability to commercialize additional therapies, our in-house manufacturing expertise, our ability to deliver high quality, affordable therapies to patients, our commercial momentum and position in the market. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and our other filings or reports that we may file with the SEC. In particular, there can be no guarantee that our sales strategies will be successful, or that we will continue to experience significant sales of BAQSIMI®. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov. The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.
Contact Information:
Amphastar Pharmaceuticals, Inc.
Bill Peters
Chief Financial Officer
(909) 476-3416
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Amphastar Pharmaceuticals (AMPH - Free Report) . AMPH is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.81, while its industry has an average P/E of 14.54. Over the last 12 months, AMPH's Forward P/E has been as high as 12.02 and as low as 6.09, with a median of 8.31.
Another valuation metric that we should highlight is AMPH's P/B ratio of 1.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.16. AMPH's P/B has been as high as 3.57 and as low as 1.28, with a median of 1.87, over the past year.
Finally, investors will want to recognize that AMPH has a P/CF ratio of 6.90. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMPH's P/CF compares to its industry's average P/CF of 13.78. Over the past year, AMPH's P/CF has been as high as 12.69 and as low as 5.15, with a median of 7.33.
These are just a handful of the figures considered in Amphastar Pharmaceuticals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMPH is an impressive value stock right now.
Investors interested in stocks from the Medical - Generic Drugs sector have probably already heard of Amphastar Pharmaceuticals (AMPH - Free Report) and Doctor Reddy's (RDY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Amphastar Pharmaceuticals has a Zacks Rank of #2 (Buy), while Doctor Reddy's has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMPH has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AMPH currently has a forward P/E ratio of 6.61, while RDY has a forward P/E of 24.19. We also note that AMPH has a PEG ratio of 1.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RDY currently has a PEG ratio of 21.79.
Another notable valuation metric for AMPH is its P/B ratio of 1.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDY has a P/B of 2.8.
These metrics, and several others, help AMPH earn a Value grade of A, while RDY has been given a Value grade of C.
AMPH sticks out from RDY in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMPH is the better option right now.
RANCHO CUCAMONGA, CA / ACCESS Newswire / April 30, 2026 / Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) announced today that the Company will release results for its first quarter of 2026, ended March 31, 2026, after the market closes on Thursday, May 7, 2026, and will hold a conference call to discuss its financial results at 2:00 p.m. Pacific Time.
To access the conference call, dial toll-free 877-407-0989, for international calls, dial 201-389-0921, ten minutes before the conference.
The call can also be accessed on the Investors page on the Company's website www.amphastar.com. The webcast replay of the call will be available on our Company website within 24 hours after the end of the live conference call.
About Amphastar Pharmaceuticals, Inc.
Amphastar is a biopharmaceutical company that focuses on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells active pharmaceutical ingredient, or API products. Most of the Company's finished products are contracted and distributed through group purchasing organizations, drug wholesalers, and drug retailers. More information and resources are available at www.amphastar.com.
Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar.
Forward Looking Statements
All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth and our ability to continue to scale, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the impact of our products, including their potential for continued revenue growth, the strategic trajectory of and market for our product pipeline, our long-term strategic vision, our ability to leverage our existing expertise and technology, the impacts of any licensing agreements and ability to commercialize additional therapies, our in-house manufacturing expertise, our ability to deliver high quality, affordable therapies to patients, our commercial momentum and position in the market. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and our other filings or reports that we may file with the SEC. In particular, there can be no guarantee that our sales strategies will be successful, or that we will continue to experience significant sales of BAQSIMI®. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov. The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.
Contact Information:
Amphastar Pharmaceuticals, Inc.
Bill Peters
Chief Financial Officer
(909) 476-3416
RANCHO CUCAMONGA, CA / ACCESS Newswire / May 6, 2026 / Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) announced today that Bill Peters, CFO, and Tony Marrs, EVP of Regulatory Affairs and Clinical Operations, will be presenting at the 2026 Bank of America Health Care Conference on Wednesday, May 13, 2026, at 3:00 pm PT. For access to the webcast, visit Amphastar Pharmaceuticals' website at http://ir.amphastar.com. This webcast will be available for 30 days following the presentation.
About Amphastar Pharmaceuticals, Inc.
Amphastar is a biopharmaceutical company that focuses on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells active pharmaceutical ingredients, or API products. Most of the Company's finished products are contracted and distributed through group purchasing organizations, drug wholesalers, and drug retailers. More information and resources are available at www.amphastar.com.
Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar.
Forward-Looking Statements
All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth and our ability to continue to scale, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the impact of our products, including their potential for continued revenue growth, the strategic trajectory of and market for our product pipeline, our long-term strategic vision, our ability to leverage our existing expertise and technology, the impacts of any licensing agreements and ability to commercialize additional therapies, our in-house manufacturing expertise, our ability to deliver high quality, affordable therapies to patients, our commercial momentum and position in the market. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and our other filings or reports that we may file with the SEC. In particular, there can be no guarantee that our sales strategies will be successful, or that we will continue to experience significant sales of BAQSIMI®. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov. The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.
Contact Information:
Amphastar Pharmaceuticals, Inc.
Bill Peters
Chief Financial Officer
(909) 476-3416
Earnings Net revenues of $171.2 million for the three months ended March 31, 2026
GAAP net income of $6.4 million, or $0.14 per share, for the first quarter
Adjusted non-GAAP net income of $19.5 million, or $0.42 per share, for the first quarter
Company to hold a conference call today at 2:00 p.m. Pacific Time
RANCHO CUCAMONGA, CA / ACCESS Newswire / May 7, 2026 / Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) ("Amphastar" or the "Company"), a biopharmaceutical company focused on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products, today reported results for the three months ended March 31, 2026.
"In the first quarter of 2026, we continued to strengthen our commercial foundation and core business, highlighted by the approval and subsequent launch of Ipratropium Bromide HFA, while also making meaningful advancements across our pipeline that will support our long‑term strategy," said Dr. Jack Zhang, Amphastar's President and Chief Executive Officer. "To begin the year, we broadened our portfolio through an exclusive license agreement for a fully synthetic corticotropin compound. At the same time, we remain committed to investing in our proprietary pipeline and capabilities, which we believe will support sustainable long-term growth."
Three Months Ended
March 31,
2026
2025
(in thousands, except per share data)
Net revenues
$
171,171
$
170,528
GAAP net income
$
6,420
$
25,285
Adjusted non-GAAP net income*
$
19,478
$
36,871
GAAP diluted EPS
$
0.14
$
0.51
Adjusted non-GAAP diluted EPS*
$
0.42
$
0.74
________________________________
* Adjusted non-GAAP net income and adjusted non-GAAP diluted EPS are non-GAAP financial measures. Please see the discussion in the section entitled "Non-GAAP Financial Measures" and the reconciliation of GAAP to non-GAAP financial measures in Table III of this press release.
First Quarter Results
Three Months Ended
March 31,
Change
2026
2025
Dollars
%
(in thousands)
Net revenues:
BAQSIMI®
$
32,434
$
38,355
$
(5,921
)
(15
)%
Primatene MIST®
29,763
29,051
712
2
%
Epinephrine
19,213
18,587
626
3
%
Lidocaine
13,460
13,644
(184
)
(1
)%
Glucagon
9,170
20,843
(11,673
)
(56
)%
Other products
67,131
50,048
17,083
34
%
Total net revenues
$
171,171
$
170,528
$
643
0
%
Changes in net revenues as compared to the first quarter of the prior year were primarily driven by:
BAQSIMI® sales decreased primarily due to a lower average selling price, as a result of a change in gross-to-net discounts due to changes in chargebacks and rebates and changes to the customer mix, impacting sales of approximately $8.0 million. This decrease was partially offset by an increase in unit volumes, contributing $2.0 million in sales driven by our continued marketing efforts
Primatene MIST® sales increased due to an increase in unit volumes
Epinephrine sales increased primarily due to an increase in demand for our epinephrine pre-filled syringe, as a result of other supplier shortages, contributing $4.1 million in sales. This increase was partially offset by a decrease in our epinephrine multi-dose vial product, as a result of increased competition, impacting sales by $3.5 million
Glucagon sales decreased primarily due to a decrease in unit volumes, impacting sales by $6.1 million, as well as a lower average selling price, which impacted sales by $5.6 million, as a result of competition and the continued shift to ready to use glucagon products such as BAQSIMI®
Other pharmaceutical product sales increased primarily due to recently launched products including an increase in albuterol sales of $2.8 million, iron sucrose sales of $1.4 million and teriparatide sales of $2.2 million, which we launched in August 2024, August 2025, and December 2025, respectively. An increase in dextrose sales, driven by heightened demand resulting from supplier shortages in the market also positively impacted sales
Three Months Ended
March 31,
Change
2026
2025
Dollars
%
(in thousands)
Net revenues
$
171,171
$
170,528
$
643
0
%
Cost of revenues
100,849
85,277
15,572
18
%
Gross profit
$
70,322
$
85,251
$
(14,929
)
(18
)%
as % of net revenues
41.1
%
50.0
%
Changes in the cost of revenues and gross margin were primarily driven by:
Lower average selling price for our higher margin products, such as BAQSIMI®, glucagon, phytonadione, and our epinephrine multi-dose vial product
Increased manufacturing expenses due to the expansion of our manufacturing facility in Rancho Cucamonga, CA
Three Months Ended
March 31,
Change
2026
2025
Dollars
%
(in thousands)
Selling, distribution, and marketing
$
11,927
$
11,866
$
61
1
%
General and administrative
18,028
15,996
2,032
13
%
Research and development
26,737
20,096
6,641
33
%
General and administrative expenses increased primarily due to an increase in legal expenses, expenses associated with implementing a new ERP system and salary and personnel-related expenses
Research and development expenses increased primarily due to spending for our insulin, inhalation, and proprietary pipeline products. Additionally, we had a $2.0 million upfront payment for the licensing agreement that we entered into with Nanjing Hanxin Pharmaceutical Technology Co., Ltd., during the quarter
Three Months Ended
March 31,
Change
2026
2025
Dollars
%
(in thousands)
Non-operating expenses:
Interest income
$
2,400
$
2,089
$
311
15
%
Interest expense
(6,553
)
(6,286
)
(267
)
4
%
Other income (expenses), net
575
(2,234
)
2,809
(126
)%
Total non-operating expenses, net
$
(3,578
)
$
(6,431
)
$
2,853
(44
)%
The change in non-operating expenses, net, is primarily a result of foreign currency fluctuation, as well as mark-to-market adjustments relating to our interest rate swap contracts during the three months ended March 31, 2026.
Cash flow provided by operating activities for the three months ended March 31, 2026, was $47.8 million.
Pipeline Information
The Company currently has one abbreviated new drug application ("ANDA") and one biosimilar insulin candidate filed with the FDA targeting products with a combined market size exceeding $1.6 billion, along with two biosimilar products in development targeting products with a market size exceeding $3.7 billion, and two generic products in development targeting products with a market size of over $0.8 billion. This market information is based on IQVIA data for the 12 months ended March 31, 2026. The Company is developing multiple proprietary products with injectable, topical and intranasal dosage forms.
The Company's proprietary pipeline also includes four recently in-licensed products including three proprietary peptides targeting oncology and ophthalmology indications, and a fully synthetic corticotropin compound designed to address inflammatory and autoimmune conditions.
Conference Call Information
The Company will hold a conference call to discuss its financial results today, May 7, 2026, at 2:00 p.m. Pacific Time.
To access the conference call, dial toll-free (877) 407-0989 or (201) 389-0921 for international callers, ten minutes before the conference.
The call can also be accessed on the Investors page on the Company's website, www.amphastar.com.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company is disclosing non-GAAP financial measures when providing financial results. The Company believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. As a result, the Company is disclosing certain non-GAAP results, including (i) Adjusted non-GAAP net income (loss) and (ii) Adjusted non-GAAP diluted EPS, which generally excludes amortization expense, share-based compensation, impairment charges, certain debt issuance costs, legal settlements, and other one-time events in order to supplement investors' and other readers' understanding and assessment of the Company's financial performance because the Company's management uses these measures internally for forecasting, budgeting, and measuring its operating performance. Whenever the Company uses such non-GAAP measures, it will provide a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP measures set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.
Market Data
This press release contains market data that we obtained from industry sources. These sources do not guarantee the accuracy or completeness of the information. Although we believe that our industry sources are reliable, we do not independently verify the information. The market data may include projections that are based on a number of other projections. While we believe these assumptions to be reasonable and sound as of the date of this press release, actual results may differ from the projections.
About Amphastar Pharmaceuticals, Inc.
Amphastar is a biopharmaceutical company that focuses on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells active pharmaceutical ingredient, or API products. Most of the Company's finished products are contracted and distributed through group purchasing organizations, drug wholesalers, and drug retailers. More information and resources are available at www.amphastar.com.
Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar.
Forward Looking Statements
All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth and our ability to continue to scale, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the impact of our products, including their potential for continued revenue growth, the strategic trajectory of and market for our product pipeline, our long-term strategic vision, our ability to leverage our existing expertise and technology, the impacts of any licensing agreements and ability to commercialize additional therapies, our in-house manufacturing expertise, our ability to deliver high-quality, affordable therapies to patients, our commercial momentum and position in the market. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, and our other filings or reports that we may file with the SEC. In particular, there can be no guarantee that our sales strategies will be successful, or that we will continue to experience significant sales of BAQSIMI®. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov. The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.
Contact Information:
Amphastar Pharmaceuticals, Inc.
Bill Peters
Chief Financial Officer
(909) 476-3416
Table I
Amphastar Pharmaceuticals, Inc.
Condensed Consolidated Statement of Operations
(Unaudited; in thousands, except per share data)
Three Months Ended
March 31,
2026
2025
Net revenues
$
171,171
$
170,528
Cost of revenues
100,849
85,277
Gross profit
70,322
85,251
Operating expenses:
Selling, distribution, and marketing
11,927
11,866
General and administrative
18,028
15,996
Research and development
26,737
20,096
Total operating expenses
56,692
47,958
Income from operations
13,630
37,293
Non-operating expenses:
Interest income
2,400
2,089
Interest expense
(6,553
)
(6,286
)
Other income (expenses), net
575
(2,234
)
Total non-operating expenses, net
(3,578
)
(6,431
)
Income before income taxes
10,052
30,862
Income tax provision
3,632
5,577
Net income
$
6,420
$
25,285
Net income per share:
Basic
$
0.14
$
0.53
Diluted
$
0.14
$
0.51
Weighted-average shares used to compute net income per share:
Basic
45,322
47,641
Diluted
46,458
49,890
Table II
Amphastar Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
March 31,
December 31,
2026
2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
170,939
$
170,177
Restricted cash
235
235
Short-term investments
121,012
112,635
Restricted short-term investments
2,200
2,200
Accounts receivable, net
147,848
143,560
Inventories
170,194
176,890
Income tax refunds and deposits
9,605
17,167
Prepaid expenses and other assets
11,650
13,152
Total current assets
633,683
636,016
Property, plant, and equipment, net
307,231
310,567
Finance lease right-of-use assets
185
221
Operating lease right-of-use assets
71,496
42,931
Goodwill and intangible assets, net
559,623
565,965
Other assets
33,480
31,135
Deferred tax assets
42,464
42,464
Total assets
$
1,648,162
$
1,629,299
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
152,688
$
148,348
Income taxes payable
414
239
Current portion of long-term debt
1,671
1,641
Current portion of operating lease liabilities
9,705
7,928
Total current liabilities
164,478
158,156
Long-term reserve for income tax liabilities
5,926
5,926
Long-term debt, net of current portion and unamortized debt issuance costs
609,801
608,749
Long-term operating lease liabilities, net of current portion
65,201
37,684
Other long-term liabilities
29,365
29,979
Total liabilities
874,771
840,494
Commitments and contingencies
Stockholders' equity:
Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding
-
-
Common stock: par value $0.0001; 300,000,000 shares authorized; 62,134,449 and 44,636,846 shares issued and outstanding, respectively, as of March 31, 2026 and 61,779,883 and 45,645,497 shares issued and outstanding, respectively, as of December 31, 2025
6
6
Additional paid-in capital
543,816
535,380
Retained earnings
673,301
666,881
Accumulated other comprehensive loss
(5,736
)
(5,314
)
Treasury stock
(437,996
)
(408,148
)
Total stockholders' equity
773,391
788,805
Total liabilities and stockholders' equity
$
1,648,162
$
1,629,299
Table III
Amphastar Pharmaceuticals, Inc.
Reconciliation of Non-GAAP Measures
(Unaudited; in thousands, except per share data)
Three Months Ended
March 31,
2026
2025
GAAP net income
$
6,420
$
25,285
Adjusted for:
Intangible asset amortization
6,270
6,240
Share-based compensation
9,274
8,393
Litigation provision
1,000
-
Income tax provision on pre-tax adjustments
(3,486
)
(3,047
)
Adjusted non-GAAP net income
$
19,478
$
36,871
Adjusted non-GAAP net income per share:
Basic
$
0.43
$
0.77
Diluted
$
0.42
$
0.74
Weighted-average shares used to compute adjusted non-GAAP net income per share:
Amphastar Pharmaceuticals (AMPH - Free Report) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.7 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -40.28%. A quarter ago, it was expected that this specialty pharmaceutical company would post earnings of $0.97 per share when it actually produced earnings of $0.73, delivering a surprise of -24.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Amphastar, which belongs to the Zacks Medical - Generic Drugs industry, posted revenues of $171.17 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.27%. This compares to year-ago revenues of $170.53 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Amphastar shares have lost about 10.8% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Amphastar?While Amphastar has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Amphastar was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $176.69 million in revenues for the coming quarter and $3.30 on $744.46 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Generic Drugs is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
RenovoRx, Inc. (RNXT - Free Report) , another stock in the broader Zacks Medical sector, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 14.
This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 6.7% lower over the last 30 days to the current level.
RenovoRx, Inc.'s revenues are expected to be $0.5 million, up 150% from the year-ago quarter.
Amphastar Pharmaceuticals (AMPH - Free Report) reported $171.17 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 0.4%. EPS of $0.42 for the same period compares to $0.74 a year ago.
The reported revenue represents a surprise of +0.27% over the Zacks Consensus Estimate of $170.71 million. With the consensus EPS estimate being $0.70, the EPS surprise was -40.28%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Amphastar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net revenues- Primatene MIST: $29.76 million versus $28.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.5% change.Net revenues- Epinephrine: $19.21 million versus the two-analyst average estimate of $16.71 million. The reported number represents a year-over-year change of +3.4%.Net revenues- BAQSIMI: $32.43 million versus the two-analyst average estimate of $40.83 million. The reported number represents a year-over-year change of -15.4%.Net revenues- Glucagon: $9.17 million versus $13.23 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -56% change.Net revenues- Lidocaine: $13.46 million versus the two-analyst average estimate of $14.54 million. The reported number represents a year-over-year change of -1.4%.View all Key Company Metrics for Amphastar here>>>
Shares of Amphastar have returned +17.2% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Top 2 Small Cap Healthcare Stocks to Buy Before Rate CutsAmphastar Pharmaceuticals NASDAQ: AMPH executives said the company is taking steps to address rebate and discounting pressure on BAQSIMI while maintaining its full-year revenue outlook, according to remarks at the BofA Annual Healthcare Conference.
Bill Peters, chief financial officer of Amphastar, said the biggest surprise coming out of the first quarter was the impact of “double discounting” tied to 340B programs on BAQSIMI, the company’s nasal glucagon product acquired from Eli Lilly. Peters said certain buyers were purchasing BAQSIMI at mandated 340B prices while still collecting rebates when dispensing to insured patients.
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Promising Small Biotech Amphastar Sees Actionable Pullback “That was the biggest change,” Peters said. “It reduced the BAQSIMI sales significantly from where we thought they would be in the quarter.”
BAQSIMI Pricing Pressure and Mitigation Steps Peters said Amphastar began using an external firm at the start of May to adjudicate and validate claims, a process the company believes should eliminate most inappropriate claims. The company also implemented a 3% price increase for BAQSIMI on May 1.
While Peters said the second quarter will still reflect some of the same challenges seen in the first quarter, he said the company expects pricing to improve over the next couple of quarters.
“We believe that if we can stop this pricing behavior, then we can return to growth for the product for the rest of the year,” Peters said.
He added that BAQSIMI prescription trends remained positive, with an 8% increase in units during the quarter. Peters said the company expects the third-party adjudication process to remain in place going forward, adding some general and administrative expense but helping protect future revenue recognition.
International BAQSIMI Footprint to Narrow Peters said BAQSIMI is sold in about 25 countries, with the United States representing roughly 80% of revenue. Amphastar had committed to Lilly to continue selling BAQSIMI in every market where Lilly had sold it for at least three years, a period that ends in June.
After reviewing its international markets, Peters said Amphastar identified a handful of countries where BAQSIMI was unprofitable and plans to begin discontinuations in July. He said the process will be gradual in some markets due to inventory and notice requirements, including one country where sales will continue until the first quarter of next year.
“None of these countries are really that meaningful or material to our top line, and they’re all negative to the bottom line,” Peters said. “By reducing our footprint, while we’ll have a reduction in sales of BAQSIMI, we’ll have an increase in profitability.”
Longer term, Peters reiterated Amphastar’s peak sales target of $250 million to $275 million for BAQSIMI. He said the key growth driver is improving compliance with glucagon prescriptions among insulin users. According to Peters, annual glucagon prescription fills among insulin users have increased from about 10% when Amphastar acquired BAQSIMI to 12% today, and the company’s forecast assumes reaching 15% to 16% compliance.
Legacy Products and Margin Outlook On Amphastar’s base business, Peters said glucagon has faced new competition over the past year and a half, but the rate of decline has softened. He said the company believes the product is close to a floor, though upcoming quarters may still be below first-quarter levels.
Peters also discussed epinephrine, noting pressure in multi-dose vials as the market expanded from two competitors to as many as five. However, he said Amphastar’s prefilled syringe epinephrine product benefited in the first quarter because another supplier has not been shipping.
Gross margin was 41% in the first quarter, which Peters described as a temporary low point. He said the company expects margins to recover, helped by higher-margin product launches and growth from BAQSIMI and Primatene MIST. He noted that sales of active pharmaceutical ingredients from Amphastar’s China facility will add revenue but at lower margins.
Peters also said insulin, expected next year, may carry a margin near or slightly below the corporate average on its own but should improve factory utilization in both the U.S. finished-product facility and the China API facility.
AMP-007, Biosimilars and Inhalation Pipeline Peters said AMP-007 launched in mid-April and has shown strong factory sales so far. He said Amphastar is currently the only generic on the market and has Hatch-Waxman six-month exclusivity until mid-October, unless an authorized generic launches. He added that the product’s sales are expected to exceed the assumptions used in Amphastar’s initial 2025 guidance, helping offset lower-than-expected BAQSIMI sales.
Amphastar reaffirmed its expectation for full-year revenue growth in the mid-to-high single digits.
Tony Marrs, executive vice president of regulatory affairs and clinical operations, said Amphastar’s development history in aseptic manufacturing, complex generics, immunogenicity work and clinical trials has positioned it to take on more complex programs, including biosimilars and proprietary products.
Marrs said the company is developing insulin aspart and believes insulin is a middle ground between traditional generics and more complex biologics. Peters added that Amphastar is working on three biosimilars, including two insulins, and is targeting areas where it believes it has manufacturing or API advantages rather than crowded biologic categories.
On GLP-1 products, Peters said Amphastar expects certain markets to be crowded but noted that the company plans to sell at least two GLP-1 APIs this year from its China facility, one tied to a proprietary product and another as a more generic API.
The company also continues to view inhalation as a key technology area. Peters said Amphastar is working on a next-generation Primatene MIST using a “green propellant,” while Marrs said the company’s Boston-area inhalation manufacturing facility has capacity and room for expansion.
Capital Allocation Peters said Amphastar’s first priority remains funding its growing research and development program, followed by capital expenditures and business development. However, he said the company has accelerated share repurchases because management views the stock as undervalued.
During the first quarter, Amphastar spent nearly $30 million buying back shares, representing almost 3% of shares outstanding. Peters said that with the stock price in a similar position to March levels, investors should expect the company to accelerate purchases again.
About Amphastar Pharmaceuticals NASDAQ: AMPHAmphastar Pharmaceuticals, Inc is a specialty pharmaceutical company headquartered in Rancho Cucamonga, California. Founded in 2004, Amphastar focuses on the development, manufacturing and commercialization of injectable and inhalation products. The company's manufacturing facilities in California produce both generic and proprietary formulations designed to address urgent and chronic medical conditions.
Amphastar's portfolio includes a range of injectable generics such as epinephrine, naloxone and lidocaine, serving hospital, emergency medical and retail pharmacy channels.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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RANCHO CUCAMONGA, CA / ACCESS Newswire / May 27, 2026 / Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) announced today that Bill Peters, CFO, and Jacob Liawatidewi, EVP of Corporate Administration, will be presenting at the 2026 Jefferies Healthcare Conference on Wednesday, June 3, 2026, at 4:55 p.m. ET. For access to the webcast, visit Amphastar Pharmaceuticals' website at http://ir.amphastar.com. This webcast will be available for 30 days following the presentation.
About Amphastar Pharmaceuticals, Inc.
Amphastar is a biopharmaceutical company that focuses on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells active pharmaceutical ingredients, or API products. Most of the Company's finished products are contracted and distributed through group purchasing organizations, drug wholesalers, and drug retailers. More information and resources are available at www.amphastar.com.
Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar.
Forward-Looking Statements
All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth and our ability to continue to scale, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the impact of our products, including their potential for continued revenue growth, the strategic trajectory of and market for our product pipeline, our long-term strategic vision, our ability to leverage our existing expertise and technology, the impacts of any licensing agreements and ability to commercialize additional therapies, our in-house manufacturing expertise, our ability to deliver high quality, affordable therapies to patients, our commercial momentum and position in the market. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 7, 2026, and our other filings or reports that we may file with the SEC. In particular, there can be no guarantee that our sales strategies will be successful, or that we will continue to experience significant sales of BAQSIMI®. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov. The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.
Contact Information:
Amphastar Pharmaceuticals, Inc.
Bill Peters
Chief Financial Officer
(909) 476-3416
Top 2 Small Cap Healthcare Stocks to Buy Before Rate CutsAmphastar Pharmaceuticals NASDAQ: AMPH executives told investors at the Jefferies Healthcare Conference that the company is maintaining expectations for mid- to high-single-digit revenue growth in 2026, supported by a new generic launch, Primatene Mist growth and selected API sales from its China business.
Bill Peters, chief financial officer of Amphastar, said the company continues to build on its base in complex generic and hospital injectable products while expanding into proprietary and biosimilar medicines. Peters said Amphastar has about a half-dozen proprietary products and three biosimilars in development, using experience gained from complex generics, peptides, clinical trials and human factors studies.
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Generic Atrovent Launch Seen as Key Growth Driver Promising Small Biotech Amphastar Sees Actionable Pullback Executives said the company’s generic ipratropium bromide product, a generic version of Atrovent, is expected to be the largest driver of revenue growth this year. Amphastar launched the product in mid-April and, according to Jacob Liawatidewi, executive vice president of corporate administration, is currently the only generic on the market.
Liawatidewi said Amphastar successfully brought the product through a Paragraph IV challenge and has six months of exclusivity, which he said runs until Oct. 6. He added that the company has not heard of other ANDA filers, though that does not mean none exist. Based on Amphastar’s development work, Liawatidewi said the product has a “high bar” for bioequivalence studies and could remain durable as a sole generic “for a few years” before competitors catch up.
Using IQVIA sales data of about $112 million for 2025, Liawatidewi said rebates likely overstate the market size. He estimated the full generic market could be about $55 million after adjustments, with Amphastar potentially capturing more than 50% and possibly as much as 80% as the sole generic. That could represent roughly $40 million in annual sales, assuming no authorized generic enters the market.
BAQSIMI Pricing Pressure and 340B Issue Executives also discussed BAQSIMI, the nasal glucagon product Amphastar acquired from Eli Lilly. Peters said the company lowered BAQSIMI guidance to flat to up single digits for the year after a weaker first quarter, but still expects companywide revenue growth to remain in the mid- to high-single-digit range.
Liawatidewi said BAQSIMI was affected by 340B “double discounting,” in which contract pharmacies serving 340B hospitals buy product at a discounted 340B price and then submit rebates tied to commercial insurance or pharmacy benefit managers. Peters said that issue contributed to about a 20% pricing decrease in the first quarter compared with the prior year.
Amphastar engaged a third-party service provider in May to mitigate the issue. Peters said the vendor has experience with larger pharmaceutical companies and believes it can eliminate about 80% of the double discounting. He said the impact should begin to appear partially in the second quarter and more fully by the third quarter. Amphastar also took a 3% price increase beginning in May to help offset the pricing pressure.
The company is also reassessing BAQSIMI sales outside the United States. Peters said Amphastar was contractually obligated to continue selling BAQSIMI in every country where Lilly had sold it for three years, a period ending in late June. After July 1, Amphastar plans to discontinue sales in five or six countries where the product loses money due to low prices or regulatory costs, though sales could continue temporarily in some markets due to inventory or notice-period requirements.
Biosimilar Insulin Aspart Targeted for 2027 Launch Peters said Amphastar’s biosimilar insulin aspart product is under regulatory review, and the company continues to expect a launch in 2027. Amphastar is seeking interchangeability, which Peters described as a higher hurdle. He said the company believes it has provided sufficient data and responded to FDA concerns in a way that could support an interchangeable designation, though approval as a biosimilar without interchangeability remains possible.
Peters said IQVIA data place the insulin aspart market at about $1.4 billion in sales, while cautioning that IQVIA data tend to overstate actual sales. If approved, Amphastar expects to be the fourth player in the market, the third biosimilar and potentially the second interchangeable biosimilar. Asked whether annual sales of $25 million to $50 million were reasonable, Peters said the higher end could be achievable with interchangeability.
Pipeline and Business Development Focus Liawatidewi said Amphastar’s synthetic corticotropin program remains in preclinical work intended to support an IND filing in 2027 or early 2027. He said Amphastar has not yet aligned with the FDA on whether the product would be viewed as comparable to existing porcine-based corticotropin or as a true new chemical entity. He added that Amphastar would most likely redo data generated in China by its licensing partner for U.S. submission.
Peters also discussed three in-licensed peptide-based assets from a Chinese biotech company, including two oncology products and one wet age-related macular degeneration product. The most advanced disclosed product is a potential pancreatic cancer therapy that uses a peptide conjugate to help direct molecules toward tumors. Peters said Amphastar’s experience with peptide APIs and finished products contributed to the company’s interest in those programs.
On capital allocation, Peters said Amphastar is focused on fully funding R&D, capital expenditures and its share repurchase program. The company added $50 million to the buyback program in March. Peters said future excess cash may be directed toward business development, particularly proprietary products closer to market or already de-risked through clinical trials, and that Amphastar could borrow for the right opportunity. He said the BAQSIMI transaction, which included $500 million up front plus deferred and milestone payments, would represent the “outer limit” of deal size the company could pursue.
Margins Expected to Improve From First Quarter Peters said first-quarter gross margin represented an “absolute trough” and should improve in subsequent quarters as BAQSIMI pricing pressure eases. He said R&D spending is expected to remain high and could increase as a percentage of sales, while G&A should decline as a percentage of sales after a temporary uptick tied to efficiency projects and new systems. Selling expense is expected to remain relatively consistent as a percentage of sales, with potential for improvement over time through economies of scale.
About Amphastar Pharmaceuticals NASDAQ: AMPHAmphastar Pharmaceuticals, Inc is a specialty pharmaceutical company headquartered in Rancho Cucamonga, California. Founded in 2004, Amphastar focuses on the development, manufacturing and commercialization of injectable and inhalation products. The company's manufacturing facilities in California produce both generic and proprietary formulations designed to address urgent and chronic medical conditions.
Amphastar's portfolio includes a range of injectable generics such as epinephrine, naloxone and lidocaine, serving hospital, emergency medical and retail pharmacy channels.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Amphastar Pharmaceuticals Right Now?Before you consider Amphastar Pharmaceuticals, you'll want to hear this.
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SAN DIEGO, June 08, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating whether Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) or certain of its executive officers violated federal securities laws. The investigation focuses on investors’ losses and whether they may be recovered under federal securities laws.
What if I purchased Amphastar securities?
If you purchased Amphastar securities and suffered losses on your investment, join our investigation now: Click Here to Join the Investigation.
Or for more information, contact Jim Baker at [email protected] or (619) 814-4471.
There is no cost or obligation to you.
Background of the Investigation
On May 7, 2026, Amphastar reported its financial results for the first quarter of 2026. The Company disclosed that BAQSIMI revenues decreased 15% year-over-year to $32.4 million, compared to $38.4 million in the prior-year period, despite an 8% increase in units sold.
Amphastar attributed the BAQSIMI revenue decline to lower average selling prices, stating that the lower average selling price was driven by higher rebates and higher 340B pharmacy discounts, some of which may have been duplicated. The Company also stated that it now expected BAQSIMI revenue growth to be flat to up low single digits for 2026 due to the previously mentioned pricing pressures.
Following these disclosures, Amphastar’s stock price fell more than 20% on May 8, 2026, causing significant losses to investors.
On May 13, 2026, Amphastar provided additional detail regarding BAQSIMI at the Bank of America Global Healthcare Conference. Management stated that “the biggest surprise was the impact of the double discounting” from 340B programs on BAQSIMI.
In light of these disclosures, Johnson Fistel is investigating whether Amphastar complied with federal securities laws. If you suffered losses, contact Johnson Fistel for more information.
About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
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Top 2 Small Cap Healthcare Stocks to Buy Before Rate CutsAmphastar Pharmaceuticals NASDAQ: AMPH is positioning itself for a broader shift from complex generics toward proprietary medicines and biosimilars, Chief Financial Officer and Executive Vice President of Finance Bill Peters told investors at the East Coast IDEAS Conference.
Peters described Amphastar as a “fully integrated pharmaceutical company” with in-house product development, active pharmaceutical ingredient manufacturing, finished product manufacturing in the United States, and marketing and distribution capabilities. He said the company’s operating model is built around what management calls a “3 H focus”: high-quality products, high efficiency of operations and high technology to drive the pipeline.
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Promising Small Biotech Amphastar Sees Actionable Pullback According to Peters, Amphastar historically focused on complex generics, including enoxaparin, but has been moving its pipeline toward proprietary products that the company believes can generate more durable cash flows. He said that in 2021, roughly two-thirds of Amphastar’s pipeline consisted of generics, with 21% proprietary products and 16% biosimilars. The company set a goal to shift within five years to a mix of 50% proprietary products, 35% biosimilars and 15% generics.
“We are very close to those numbers today, and I think by the end of the year, we’ll be even closer,” Peters said.
R&D spending expected to rise as proprietary pipeline expands Peters said Amphastar spends more on research and development than many generic drug companies, reflecting its effort to move into branded and proprietary products. He said R&D spending increased significantly last year and represented about 11.9% of revenue after a trough year in 2024. Amphastar expects that percentage to continue increasing over the next few years as it advances more proprietary programs.
The company’s technical capabilities include particle engineering, drug characterization, immunogenicity evaluation, peptide and protein development, and biosimilar work. Peters cited Primatene MIST, the only FDA-approved over-the-counter asthma inhaler, as an example of Amphastar’s formulation capabilities. He also pointed to the company’s glucagon kit, which he said was the first generic version of Eli Lilly’s product and remained the only generic on the market for four years due to its complexity.
Amphastar’s current infrastructure includes three U.S. manufacturing facilities for finished products and two overseas facilities, in China and France, for active pharmaceutical ingredient production.
Proprietary programs include epinephrine nasal spray, peptides and synthetic corticotropin Peters highlighted several proprietary development programs, including AMP-101, an intranasal version of epinephrine for anaphylaxis that is currently in Phase 1 studies. Other early-stage programs include AMP-105, AMP-107 and AMP-109, which Amphastar in-licensed from a Chinese biotech firm last year. Peters said AMP-105 and AMP-109 are oncology programs, while AMP-107 targets wet age-related macular degeneration.
For AMP-107, Peters said Amphastar is working on an eye-drop approach that could potentially reduce reliance on injections into the eye. He described AMP-109 as a peptide-coupled docetaxel program being tested in pancreatic cancer models. Peters also discussed AMP-110, a synthetic human corticotropin that he said is similar to Acthar Gel and targets a market Amphastar expects could reach about $1 billion by the time it reaches the market.
In response to an investor question, Peters said the company intends to take proprietary programs at least through Phase 2 before evaluating whether to continue development internally or partner with a larger pharmaceutical company. He noted that later-stage oncology trials can be expensive.
“To do all of these products all through Phase 3 would probably require more money than we would be able to commit at this time,” Peters said. “I think it’ll be a good problem to have if we get to that point.”
BAQSIMI and Primatene MIST remain key branded products Peters said Amphastar has achieved branded product success with BAQSIMI, an intranasal glucagon product acquired from Eli Lilly that treats hypoglycemia. Amphastar sells BAQSIMI in the United States and 25 other countries. Peters said the company forecasts peak annual BAQSIMI sales of $250 million to $275 million and long-term incremental adjusted peak EPS of $2 to $2.50 per share from the product.
For Primatene MIST, Peters said Amphastar is increasing physician sampling and launching a new advertising campaign. The product generated $109 million in sales last year, making it Amphastar’s second-largest product, and the company is forecasting high-single-digit growth this year. Amphastar is also developing a lower-global-warming-potential propellant formulation and has received one patent related to that formulation, with another in development.
Biosimilars, inhalation products and diabetes portfolio Amphastar’s biosimilar pipeline includes insulin aspart, recombinant human insulin and AMP-028, an undisclosed biosimilar for which Peters said the company believes it has a strategic advantage in active pharmaceutical ingredient production. The company expects a commercial launch of insulin aspart in 2027 and plans to file recombinant human insulin with the FDA in the first half of next year.
Peters also discussed a generic GLP-1 program, which he said targets a molecule with estimated U.S. IQVIA sales of about $300 million. In response to a question, he said IQVIA figures often overstate actual sales and that Amphastar expects the market to be crowded with generic entrants. He said the product could be incremental to sales but is not expected to be a major growth driver.
The company recently launched ipratropium bromide in April after approval in February, and Peters said Amphastar is currently the only generic seller of that product. He described it as a significant launch for 2026.
Capital structure supports near-term R&D plans, CFO says During the question-and-answer session, Peters said Amphastar has the capital structure to support its R&D plans through Phase 2 for its key proprietary programs. He said the company has $285 million in cash, an undrawn $200 million revolving debt facility in the United States and generates more than $200 million in annual EBITDA.
Peters said Amphastar carries about $600 million of debt, including a $250 million term loan and $345 million of convertible debt securities. He said the company believes it can refinance the debt when due, likely paying down some portion while refinancing the rest.
“With the cash we can generate right now, we can take care of the R&D responsibilities that we have for the next five years,” Peters said.
About Amphastar Pharmaceuticals NASDAQ: AMPHAmphastar Pharmaceuticals, Inc is a specialty pharmaceutical company headquartered in Rancho Cucamonga, California. Founded in 2004, Amphastar focuses on the development, manufacturing and commercialization of injectable and inhalation products. The company's manufacturing facilities in California produce both generic and proprietary formulations designed to address urgent and chronic medical conditions.
Amphastar's portfolio includes a range of injectable generics such as epinephrine, naloxone and lidocaine, serving hospital, emergency medical and retail pharmacy channels.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) is scheduled to present at the BofA Securities Health Care Conference on Wednesday, May 13, 2026.
Tenet Healthcare (THC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this hospital operator have returned -4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The Zacks Medical - Hospital industry, to which Tenet belongs, has lost 2.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Tenet is expected to post earnings of $4.15 per share, indicating a change of +3.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $17.56 points to a change of +4.7% from the prior year. Over the last 30 days, this estimate has changed +1.5%.
For the next fiscal year, the consensus earnings estimate of $17.58 indicates a change of +0.1% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Tenet is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Tenet, the consensus sales estimate of $5.42 billion for the current quarter points to a year-over-year change of +2.8%. The $21.98 billion and $22.41 billion estimates for the current and next fiscal years indicate changes of +3.1% and +1.9%, respectively.
Last Reported Results and Surprise HistoryTenet reported revenues of $5.37 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $4.82 for the same period compares with $4.36 a year ago.
Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of -0.36%. The EPS surprise was +14.49%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Tenet Healthcare Corporation (THC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $4.82, which surpassed the Zacks Consensus Estimate by 14.5%. The bottom line increased 10.6% year over year.
Net operating revenues advanced 2.8% year over year to $5.37 billion. The top line marginally missed the consensus mark by 0.4%.
The quarterly results benefited from strong same-facility revenue growth and higher adjusted admissions, along with solid contributions from acquisitions that supported the Ambulatory Care segment. However, the upside was partly offset by an unfavorable payer mix and higher operating costs, particularly elevated supply expenses.
Inside THC’s Q1 PerformanceAdjusted net income of $422 million climbed 1.9% year over year in the quarter.
Adjusted EBITDA of $1.2 billion surpassed our estimate of $1.1 billion, driven by solid same-facility revenue growth and disciplined expense management. However, the metric dipped 0.1% year over year due to an unfavorable payer mix, reflecting lower exchange admissions. Adjusted EBITDA margin contracted 70 basis points year over year to 21.6%.
Salaries, wages and benefits increased 2.6% year over year to $2.2 billion in the first quarter, while supply costs rose 6% and net other operating expenses increased 2.9%.
Q1 Segmental DetailsAmbulatory Care: The segment’s net operating revenues climbed 10.6% year over year to $1.3 billion in the quarter, driven by strong growth in consolidated same-facility net patient service revenues, contributions from facility acquisitions and an expansion of service lines. The metric topped our estimate by 2.3%.
Adjusted EBITDA was $484 million, which advanced 6.1% year over year. The metric missed our estimate by 2.6%. Adjusted EBITDA margin deteriorated 150 bps year over year to 36.7%.
Hospital Operations and Services: The segment recorded net operating revenues of $4.05 billion, which inched up 0.5% year over year driven by higher adjusted admissions, partly offset by an unfavorable payer mix. The metric missed our model estimate by 1.6%.
Adjusted EBITDA decreased 4.1% year over year to $678 million in the quarter, affected by an unfavorable payer mix. Adjusted EBITDA margin of 16.7% was down 80 bps year over year.
THC’s Financial Position (as of March 31, 2026)Tenet Healthcare exited the first quarter with cash and cash equivalents of $2.97 billion, which improved from the 2025-end level of $2.88 billion. Total assets of $31.2 billion rose from the 2025-end figure of $29.7 billion.
Long-term debt, net of the current portion, amounted to $13.1 billion, which inched up marginally from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $81 million.
Total shareholders’ equity of $4.8 billion increased from the 2025-end level of $4.2 billion.
THC generated $1.6 billion of net cash from operations in the first quarter of 2026, which advanced 101.3% year over year. Free cash flows improved 127.6% year over year to $1.5 billion in the quarter.
THC’s Share Repurchase UpdateTHC bought back 1.35 million of common shares worth $318 million in the first quarter.
THC Provides Outlook for 2026Net operating revenues are projected in the range of $21.5-$22.3 billion, unchanged from prior guidance and up from $21.3 billion in 2025. Hospital segment revenues are expected to be between $16 billion and $16.6 billion, while the Ambulatory Care unit is forecasted to generate $5.5–$5.7 billion.
Adjusted EBITDA is likely to remain between $4.485 billion and $4.785 billion in 2026, compared with the 2025 figure of $4.566 billion. Adjusted EBITDA margin is estimated to be in the 20.9-21.5% band, the mid-point of which indicates a decline from the 2025 level of 21.4%. Adjusted EPS for 2026 is anticipated to be in the band of $16.38-$18.68, up from the previous guidance of $16.19-$18.47.
Net cash provided by operating activities is now expected to be between $3.64 billion and $4.09 billion. Free cash flow is now estimated to remain between $2.94 billion and $3.29 billion. Capital expenditures are projected in the range of $700-$800 million.
Tenet Healthcare currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Medical Companies Perform?Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and The Ensign Group, Inc. (ENSG - Free Report)
HCA Healthcare reported first-quarter 2026 adjusted earnings per share of $7.15, slightly below the Zacks Consensus Estimate of $7.17, though up 10.9% year over year. Revenues increased 4.3% to $19.1 billion but narrowly missed the consensus estimate by 0.1%. HCA’s performance was affected by declines in same-facility inpatient and outpatient surgeries, along with elevated operating expenses, partially offset by modest growth in emergency room visits.
UnitedHealth Group reported first-quarter 2026 adjusted earnings per share of $7.23, which surpassed the Zacks Consensus Estimate of $6.46 and increased 0.4% year over year. Revenues rose 2% to $111.7 billion and exceeded the consensus estimate by 2.1%. UNH’s performance was driven by growth in commercial fee-based membership and strength in Optum Rx, partially offset by weakness in Optum Health and a decline in risk-based membership.
Ensign Group reported a first-quarter 2026 adjusted EPS of $1.85, which beat the Zacks Consensus Estimate by 3.4%. The bottom line improved 21.7% year over year. Operating revenues advanced 18.4% year over year to $1.4 billion. The top line marginally missed the consensus mark by 0.07%. ENSG’s strong performance was driven by higher occupancy, patient days and contributions from newly acquired and transitioning facilities, along with growth in rental income. However, these gains were partly offset by increased expenses.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.05; value investors should take notice.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.66 to $17.56 per share. THC boasts an average earnings surprise of +20.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, THC should be on investors' short list.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Tenet Healthcare (THC - Free Report) . THC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We also note that THC holds a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. THC's industry currently sports an average PEG of 1.60. Over the past 52 weeks, THC's PEG has been as high as 1.30 and as low as 0.55, with a median of 0.81.
Finally, investors will want to recognize that THC has a P/CF ratio of 7.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. THC's current P/CF looks attractive when compared to its industry's average P/CF of 7.65. Over the past 52 weeks, THC's P/CF has been as high as 7.76 and as low as 2.83, with a median of 4.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tenet Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THC feels like a great value stock at the moment.
Tenet Healthcare (THC - Free Report) closed the last trading session at $196.66, gaining 0% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $248.1 indicates a 26.2% upside potential.
The mean estimate comprises 20 short-term price targets with a standard deviation of $20.8. While the lowest estimate of $210.00 indicates a 6.8% increase from the current price level, the most optimistic analyst expects the stock to surge 46.5% to reach $288.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for THC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why THC Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2%, as seven estimates have moved higher compared to no negative revision.
Moreover, THC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much THC could gain, the direction of price movement it implies does appear to be a good guide.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Tenet Healthcare (THC - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Tenet currently has an average brokerage recommendation (ABR) of 1.39, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.39 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 16 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 72.7% and 13.6% of all recommendations.
Brokerage Recommendation Trends for THC
Check price target & stock forecast for Tenet here>>>
The ABR suggests buying Tenet, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in THC?Looking at the earnings estimate revisions for Tenet, the Zacks Consensus Estimate for the current year has increased 2% over the past month to $17.64.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Tenet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Tenet may serve as a useful guide for investors.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. THC has a Momentum Style Score of B, and shares are up 3.2% over the past four weeks.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.34 to $17.64 per share. THC boasts an average earnings surprise of +20.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, THC should be on investors' short list.
Tenet Healthcare (THC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this hospital operator have returned -2% over the past month versus the Zacks S&P 500 composite's +4.6% change. The Zacks Medical - Hospital industry, to which Tenet belongs, has lost 5.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Tenet is expected to post earnings of $4.15 per share, indicating a change of +3.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.1% over the last 30 days.
The consensus earnings estimate of $17.64 for the current fiscal year indicates a year-over-year change of +5.1%. This estimate has changed +2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $17.66 indicates a change of +0.1% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed +1.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Tenet is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Tenet, the consensus sales estimate of $5.41 billion for the current quarter points to a year-over-year change of +2.6%. The $22.02 billion and $22.37 billion estimates for the current and next fiscal years indicate changes of +3.4% and +1.6%, respectively.
Last Reported Results and Surprise HistoryTenet reported revenues of $5.37 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $4.82 for the same period compares with $4.36 a year ago.
Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of -0.36%. The EPS surprise was +14.49%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
On May 21, 2026, Tenet Healthcare Corp (THC) shares fell 5.0% to a current price of $178.00. This decline comes in the context of a 52-week range of $146.60 to
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Tenet Healthcare (THC - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this hospital operator a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Tenet is 24.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 5.3% this year, crushing the industry average, which calls for EPS growth of -10.2%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Tenet is 20.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 17.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.5% over the past 3-5 years versus the industry average of 3.9%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Tenet. The Zacks Consensus Estimate for the current year has surged 2.2% over the past month.
Bottom LineTenet has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Tenet well for outperformance, so growth investors may want to bet on it.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.84; value investors should take notice.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $17.67 per share. THC boasts an average earnings surprise of +20.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, THC should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. THC has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.3% for the current fiscal year.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $17.67 per share. THC boasts an average earnings surprise of +20.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, THC should be on investors' short list.
Tenet Healthcare Corporation remains a compelling Buy, supported by strong financial performance and deeply discounted valuation versus peers. Despite a recent 22.7% stock decline and regulatory headwinds, THC's Ambulatory Care segment shows resilience, with revenue up from $1.19B to $1.32B and profit growth. Management guides for 2026 revenue of $21.5B–$22.3B, EBITDA of $4.485B–$4.785B, and adjusted net profits of $1.425B–$1.625B.
Tenet Healthcare (THC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this hospital operator have returned -15.3% over the past month versus the Zacks S&P 500 composite's +4.6% change. The Zacks Medical - Hospital industry, to which Tenet belongs, has lost 10.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Tenet is expected to post earnings of $4.08 per share, indicating a change of +1.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $17.61 points to a change of +5% from the prior year. Over the last 30 days, this estimate has changed +0.6%.
For the next fiscal year, the consensus earnings estimate of $17.63 indicates a change of +0.2% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Tenet is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Tenet, the consensus sales estimate for the current quarter of $5.39 billion indicates a year-over-year change of +2.3%. For the current and next fiscal years, $22.02 billion and $22.43 billion estimates indicate +3.3% and +1.9% changes, respectively.
Last Reported Results and Surprise HistoryTenet reported revenues of $5.37 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $4.82 for the same period compares with $4.36 a year ago.
Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of -0.36%. The EPS surprise was +14.49%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Tenet Healthcare (THC - Free Report) closed at $161.37, marking a -2.11% move from the previous day. This change lagged the S&P 500's 0.41% gain on the day. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.
Shares of the hospital operator have depreciated by 15.25% over the course of the past month, underperforming the Medical sector's gain of 0.14%, and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Tenet Healthcare in its upcoming release. The company is forecasted to report an EPS of $4.08, showcasing a 1.49% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.39 billion, indicating a 2.27% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.61 per share and a revenue of $22.02 billion, signifying shifts of +4.95% and +3.32%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.6% higher within the past month. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 9.36. This signifies no noticeable deviation in comparison to the average Forward P/E of 9.36 for its industry.
Meanwhile, THC's PEG ratio is currently 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Hospital industry was having an average PEG ratio of 1.09.
The Medical - Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 48% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Tenet Healthcare (THC - Free Report) .
Tenet currently has an average brokerage recommendation (ABR) of 1.39, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.39 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 16 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 72.7% and 13.6% of all recommendations.
Brokerage Recommendation Trends for THC
Check price target & stock forecast for Tenet here>>>
While the ABR calls for buying Tenet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is THC Worth Investing In?Looking at the earnings estimate revisions for Tenet, the Zacks Consensus Estimate for the current year has increased 0.7% over the past month to $17.61.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Tenet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Tenet may serve as a useful guide for investors.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Tenet Healthcare (THC - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this hospital operator is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Tenet is 24.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 4.9% this year, crushing the industry average, which calls for EPS growth of -10.1%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Tenet is 20.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 17.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.5% over the past 3-5 years versus the industry average of 3.9%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Tenet have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.7% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Tenet a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Tenet is a potential outperformer and a solid choice for growth investors.
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, EnerSys is sporting a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This means that ENS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ENS currently has a forward P/E ratio of 17.87, while ETN has a forward P/E of 28.49. We also note that ENS has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ETN currently has a PEG ratio of 2.44.
Another notable valuation metric for ENS is its P/B ratio of 4.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 7.46.
These metrics, and several others, help ENS earn a Value grade of B, while ETN has been given a Value grade of D.
ENS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ENS is likely the superior value option right now.
ETN trades above its 200-day SMA as backlog jumps and AI data-center demand boosts growth, yet a premium valuation may warrant waiting for a better entry.
The biggest growth stories in the market right now aren't happening with the chip makers. They're happening one layer beneath them.
Keith Kaplan, CEO of TradeSmith, has spent recent months mapping what he calls the "choke points" of the AI build-out—the physical bottlenecks where trillion-dollar demand is running into a world that can't supply fast enough. His argument: the largest fortunes of this AI cycle won't go to the visible players. They'll go to the companies that those players can't function without.
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The $700 Billion ProblemBy the end of 2025, the four largest U.S. hyperscalers—Microsoft NASDAQ: MSFT, Alphabet NASDAQ: GOOGL, Amazon NASDAQ: AMZN, and Meta Platforms NASDAQ: META—are expected to spend more than $700 billion on AI infrastructure. That number climbs toward $1 trillion by 2027 and, according to projections shared by NVIDIA NASDAQ: NVDA during its most recent earnings call, could reach $3 to $4 trillion in total economic impact within three to five years.
That money isn't going into software. It's going into football-field-sized buildings, gigawatt-scale power systems, and transmission lines that don't exist yet. Think of it as demand being squeezed through a very narrow pipe: no matter how much water is upstream, the flow is whatever the choke point allows.
Kaplan identifies five of those choke points, and a stock for each.
Memory: The Chip Inside the ChipHigh-bandwidth memory (HBM) is what allows a GPU to actually function.
Micron Technology Today
MU
Micron Technology
$993.67 -2.20 (-0.22%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$103.38▼
$1,089.29Dividend Yield0.06%
P/E Ratio46.85
Price Target$737.63
Without it, AI chips don't work. Micron Technology NASDAQ: MU is the only American producer of HBM, and its output for 2025 was completely sold out before the year began. Capacity for 2026 is already largely committed.
As NVIDIA transitions its Rubin chips from HBM3E to HBM4, Micron's position in the supply chain only strengthens. Annual revenue is tracking toward $58 billion, and net income is already at $24 billion. Kaplan sees this as a three-to-five-year hold, with the next earnings report on June 24 as an early signal of where demand is heading.
Photonics: The Speed of Light Between ChipsCoherent Today
$382.67 +19.09 (+5.25%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$76.88▼
$440.00P/E Ratio182.93
Price Target$379.64
When data leaves one chip, it has to communicate with thousands of others, and copper wire can't keep up. The solution is silicon photonics: light passed through fiber at speeds copper simply can't match.
Coherent Corp. NYSE: COHR is the leading supplier of the optical transceivers that make this happen, converting electrical signals into pulses of light and back again at every connection in an AI cluster. NVIDIA took a $2 billion stake in Coherent earlier this year—a signal, Kaplan argues, of just how central the company is to the next phase of AI build-out.
Thermal Management: Keeping It From MeltingTop-end AI chips now draw up to 1,200 watts each.
Vertiv Today
$300.36 +2.48 (+0.83%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$110.06▼
$379.93Dividend Yield0.08%
P/E Ratio75.26
Price Target$326.39
Put 72 of them in a rack, and you've got the heat output of a small apartment in a space about the size of a refrigerator. Air cooling can't handle it. Direct-to-chip liquid cooling can carry heat 3,500 times more efficiently than air at the same flow rate.
Vertiv Holdings NYSE: VRT already supplies most of the large hyperscaler build-outs with its cooling distribution units. With a market cap above $100 billion and annual revenue over $10 billion, it's not a speculative name—and a recent pullback of more than 10% over the week before Memorial Day is what Kaplan would view as an attractive entry point ahead of its July 29 earnings.
Power Generation: Nuclear Is Back OnlineConstellation Energy Today
CEG
Constellation Energy
$250.85 +4.14 (+1.68%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$240.51▼
$412.70Dividend Yield0.68%
P/E Ratio21.81
Price Target$377.40
A single AI data center now consumes the power of a mid-sized city. Meta's Hyperion facility is currently operating at 2 gigawatts and is expected to scale to 5. Meeting that kind of baseload demand 24 hours a day, seven days a week means natural gas and nuclear. Both are booming.
Constellation Energy NASDAQ: CEG is the largest nuclear operator in the U.S., with 21 reactors and a 20-year deal signed with Microsoft in September 2024 to bring Three Mile Island back online. Constellation is investing $1.6 billion to revive the plant and deliver 835 megawatts of dedicated capacity.
The shift in who's buying nuclear power tells the story: a decade ago, the biggest buyers were utilities. Today, they're software companies. Amazon's 17-year, $18 billion power purchase agreement with Talen Energy NASDAQ: TLN underscores just how aggressively Big Tech is moving to lock up baseload supply.
The stock is flat over the past three months, a consolidation Kaplan views as a setup ahead of early August earnings, not a sign the thesis has broken.
The Grid: The Last Mile That Takes the LongestEaton Today
$393.65 +0.01 (+0.00%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$311.92▼
$435.43Dividend Yield1.12%
P/E Ratio38.47
Price Target$420.95
Even after the power plant is built, getting electricity to the data center can take years. Transformer lead times have stretched from 12 months to two and a half years. Heavy gas turbines are running up to seven years out. In some northern Virginia utility territories, grid hookups for projects filed after 2024 won't be available until at least 2028.
Eaton Corporation NYSE: ETN has been solving exactly this problem for more than 100 years. Transformers, switchgear, power distribution—the infrastructure that connects every data center to the actual grid.
Data centers are now Eaton's fastest-growing end market, and the company is sitting on multi-year backlogs with a $148 billion market cap and nearly $30 billion in annual revenue. The stock has been largely flat for the past three months, which Kaplan reads as quiet accumulation. Next earnings: August 4.
A 5-Year Mega Trend Still in Its Early InningsMemory spend as a share of hyperscaler budgets has shifted from 8% to 30% in just two years. U.S. data centers could account for 17% of all national electricity consumption by 2030, up from 4% today. These aren't projections being whispered—they're numbers already reshaping capital allocation across the economy.
The question most investors are asking is whether they've missed it. Kaplan's view: not even close. The stocks may be up, but the infrastructure hasn't been built yet. That gap is exactly where the opportunity lives.
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