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Astrazeneca (AZN) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Astrazeneca (AZN - Free Report) closed at $67.25, marking a -0.74% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, added 0.11%.

Prior to today's trading, shares of the pharmaceutical had gained 4.88% over the past month. This has outpaced the Medical sector's gain of 2.21% and the S&P 500's gain of 3.32% in that time.

Investors will be eagerly watching for the performance of Astrazeneca in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 25, 2024. On that day, Astrazeneca is projected to report earnings of $0.96 per share, which would represent no growth from the year-ago period. Alongside, our most recent consensus estimate is anticipating revenue of $12 billion, indicating a 10.26% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.01 per share and revenue of $51.01 billion, indicating changes of +10.47% and +11.34%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Astrazeneca. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% decrease. As of now, Astrazeneca holds a Zacks Rank of #3 (Hold).

Investors should also note Astrazeneca's current valuation metrics, including its Forward P/E ratio of 16.89. This represents a premium compared to its industry's average Forward P/E of 14.85.

Meanwhile, AZN's PEG ratio is currently 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated 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. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 17% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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