Astrazeneca (AZN) ended the recent trading session at $76.28, demonstrating a -1.03% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.49%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.72%.
The stock of pharmaceutical has fallen by 4.21% in the past month, lagging the Medical sector's gain of 1.93% and the S&P 500's gain of 2.99%.
Market participants will be closely following the financial results of Astrazeneca in its upcoming release. The company's earnings per share (EPS) are projected to be $1.13, reflecting a 8.65% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $14.86 billion, reflecting a 9.57% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.58 per share and a revenue of $58.6 billion, indicating changes of +11.44% and +8.37%, respectively, from the former year.
Any recent changes to analyst estimates for Astrazeneca should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.55% increase. At present, Astrazeneca boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Astrazeneca currently has a Forward P/E ratio of 16.82. This represents a discount compared to its industry average Forward P/E of 20.1.
One should further note that AZN currently holds a PEG ratio of 1.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical – Biomedical and Genetics industry held an average PEG ratio of 1.64.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% echelons of all 250+ industries.
