Astrazeneca (AZN) ended the recent trading session at $174.93, demonstrating a -1.66% change from the preceding day’s closing price. This change lagged the S&P 500’s 1.09% gain on the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
The pharmaceutical’s stock has dropped by 5.11% in the past month, falling short of the Medical sector’s gain of 3.16% and the S&P 500’s gain of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Astrazeneca in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.1, showcasing a 3.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.27 billion, up 5.65% from the year-ago period.
AZN’s full-year Zacks Consensus Estimates are calling for earnings of $9.39 per share and revenue of $63.18 billion. These results would represent year-over-year changes of +2.51% and +7.56%, respectively.
Investors might also notice recent changes to analyst estimates for Astrazeneca. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there’s been a 8.31% fall in the Zacks Consensus EPS estimate. Right now, Astrazeneca possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Astrazeneca has a Forward P/E ratio of 18.94 right now. This valuation marks a discount compared to its industry average Forward P/E of 21.08.
It is also worth noting that AZN currently has a PEG ratio of 1.55. 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. The Medical – Biomedical and Genetics industry currently had an average PEG ratio of 1.48 as of yesterday’s close.
