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Astrazeneca (AZN) Stock Sinks As Market Gains: What You Should Know

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Astrazeneca (AZN - Free Report) closed at $73.63 in the latest trading session, marking a -0.31% move from the prior day. This change lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.

Coming into today, shares of the pharmaceutical had gained 12.57% in the past month. In that same time, the Medical sector gained 5.81%, while the S&P 500 gained 5.67%.

Investors will be hoping for strength from Astrazeneca as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Astrazeneca is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 10.53%. Meanwhile, our latest consensus estimate is calling for revenue of $11.34 billion, down 0.44% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.60 per share and revenue of $46.35 billion. These totals would mark changes of +8.11% and +4.51%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Astrazeneca. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Astrazeneca is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Astrazeneca is holding a Forward P/E ratio of 20.5. Its industry sports an average Forward P/E of 14.93, so we one might conclude that Astrazeneca is trading at a premium comparatively.

It is also worth noting that AZN currently has a PEG ratio of 1.52. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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