Astrazeneca (AZN) closed at $55.13 in the latest trading session, marking a -0.27% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.46%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 1.25%.
Coming into today, shares of the pharmaceutical had lost 1.86% in the past month. In that same time, the Medical sector gained 0.49%, while the S&P 500 gained 1%.
Investors will be hoping for strength from AZN as it approaches its next earnings release. The company is expected to report EPS of $0.53, up 6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.66 billion, up 3.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.03 per share and revenue of $26.26 billion, which would represent changes of +16% and +7.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AZN. Recent revisions tend to reflect the latest near-term business trends. 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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. AZN currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AZN is holding a Forward P/E ratio of 27.26. This valuation marks a premium compared to its industry’s average Forward P/E of 15.02.
Meanwhile, AZN’s PEG ratio is currently 1.62. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.08 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 127, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Zacks.com.
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