Back to top

Image: Bigstock

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

Read MoreHide Full Article

Astrazeneca (AZN - Free Report) closed at $68.27 in the latest trading session, marking a +0.72% move from the prior day. This change outpaced the S&P 500's 1.22% loss on the day. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.

Prior to today's trading, shares of the pharmaceutical had lost 1.94% over the past month. This has lagged the Medical sector's loss of 1.11% and the S&P 500's gain of 0.54% in that time.

Investors will be hoping for strength from Astrazeneca as it approaches its next earnings release. In that report, analysts expect Astrazeneca to post earnings of $0.79 per share. This would mark a year-over-year decline of 5.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.55 billion, up 5.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.66 per share and revenue of $45.85 billion. These totals would mark changes of +9.91% and +3.37%, respectively, from last year.

Any recent changes to analyst estimates for Astrazeneca should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. Astrazeneca is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Astrazeneca is holding a Forward P/E ratio of 18.53. For comparison, its industry has an average Forward P/E of 14.72, which means Astrazeneca is trading at a premium to the group.

Meanwhile, AZN's PEG ratio is currently 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.76 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 165, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

AstraZeneca PLC (AZN) - free report >>

Published in