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Astrazeneca (AZN) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with Astrazeneca (AZN - Free Report) standing at $78.38, reflecting a -0.66% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.36%.

The pharmaceutical's shares have seen a decrease of 8.14% over the last month, not keeping up with the Medical sector's gain of 1.44% and the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Astrazeneca in its upcoming release. The company's upcoming EPS is projected at $1.07, signifying a 22.99% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $13.14 billion, up 14.37% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $52.48 billion. These totals would mark changes of +11.57% and +14.55%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Astrazeneca. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 an unchanged state. As of now, Astrazeneca holds a Zacks Rank of #3 (Hold).

Looking at valuation, Astrazeneca is presently trading at a Forward P/E ratio of 19.47. This represents a premium compared to its industry's average Forward P/E of 15.96.

One should further note that AZN currently holds a PEG ratio of 1.49. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.69.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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