And the specialty drug manufacturer could rise even more due to strong sales and new regulatory approvals. But another likely reason is Big Money lifting the stock.
Big Money Starts to Like Amphastar
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Amphastar has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been taking interest in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money interest in AMPH. The green bar signals big trading volume as the stock ramped up in price:
In the last year, the stock received its first Big Money buy signal since 2016. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
- Year-to-date outperformance vs. Health Care Select Sector SPDR ETF (+47.9% vs. XLV)
Outperformance is important for leading stocks.
Amphastar Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Amphastar has been growing and is profitable. Take a look:
- 1-year sales growth rate (+25.1%)
- 3-year EPS growth rate (+2,082.8%)
- Profit margin (+14.2%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, AMPH has recently become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
AMPH has a lot of qualities that are attracting Big Money. It made this list for the first time recently on 04/19/2022, losing 16.2% since. But I wouldn’t be surprised to see it grow more in the years ahead. The blue bar below shows when Amphastar was a top pick:
It’s been a hot stock in the health care sector according to the MAPsignals process. I wouldn’t be surprised if AMPH makes additional appearances in the years to come. Let’s tie this all together.
Amphastar Price Prediction
The Amphastar rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds no positions in AMPH at the time of publication.
Learn more about the MAPsignals process here.