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Astrazeneca (AZN) Advances But Underperforms Market: Key Facts

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Astrazeneca (AZN - Free Report) closed the latest trading day at $67.45, indicating a +0.16% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Heading into today, shares of the pharmaceutical had gained 1.74% over the past month, outpacing the Medical sector's loss of 2.46% and the S&P 500's gain of 0.48% in that time.

Market participants will be closely following the financial results of Astrazeneca in its upcoming release. The company plans to announce its earnings on April 25, 2024. The company is expected to report EPS of $0.96, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $12 billion, indicating a 10.26% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $51.01 billion. These totals would mark changes of +10.47% and +11.34%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Astrazeneca. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Astrazeneca is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Astrazeneca is currently being traded at a Forward P/E ratio of 16.79. This represents a premium compared to its industry's average Forward P/E of 14.32.

We can additionally observe that AZN currently boasts a PEG ratio of 1.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.73.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 218, placing it within the bottom 14% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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