Back to top

Image: Bigstock

Why the Market Dipped But (AZN) Gained Today

Read MoreHide Full Article

In the latest market close, Astrazeneca (AZN - Free Report) reached $68.11, with a +0.15% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.63%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.63%.

Heading into today, shares of the pharmaceutical had gained 2.35% over the past month, outpacing the Medical sector's loss of 4.14% and the S&P 500's loss of 2.35% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Astrazeneca in its upcoming earnings disclosure. The company's earnings report is set to go public on November 9, 2023. It is anticipated that the company will report an EPS of $0.82, marking a 2.38% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $11.55 billion, showing a 5.14% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.66 per share and revenue of $45.86 billion, indicating changes of +9.91% and +3.42%, respectively, compared to the previous 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 company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Right now, Astrazeneca possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Astrazeneca is currently being traded at a Forward P/E ratio of 18.59. This indicates a premium in contrast to its industry's Forward P/E of 14.24.

Meanwhile, AZN's PEG ratio is currently 1.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.8.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


AstraZeneca PLC (AZN) - free report >>

Published in