Astrazeneca (AZN) Surpasses Market Performance: Key Insights

Astrazeneca (AZN) concluded the latest trading session at a price of $75.57, reflecting an increase of +1.79% from the previous day's closing. This notable performance outperformed the S&P 500, which saw a gain of 0.49% during the same day. In contrast, the Dow Jones registered a decline of 0.2%, while the technology-focused Nasdaq experienced an increase of 1.22%.

As of today, Astrazeneca's shares have risen by 2.08% over the past month. This growth is noteworthy as it surpasses the overall performance of the Medical sector, which has declined by 1.05%, and the S&P 500, which has dropped by 8.15% in the same time frame.

Investors are keenly anticipating Astrazeneca's upcoming earnings report, where the company is expected to announce an earnings per share (EPS) of $1.10. This figure indicates a growth of 6.8% compared to the same quarter of the previous year. Furthermore, the consensus among analysts is predicting total revenues of $13.6 billion for the quarter, showing a growth of 7.3% from the same period last year.

For the entire year, the Zacks Consensus Estimates forecast earnings of $4.49 per share and projected revenues of $57.14 billion. These figures represent increases of +9.25% and +5.67%, respectively, when compared to the prior year.

Investors should also pay attention to any recent changes in analyst estimates for Astrazeneca. These adjustments can reflect shifting business trends in the short term. Positive changes in estimates typically indicate analysts' confidence in the company’s business performance and profit potential.

Research indicates that these changes in estimates correlate closely with short-term stock performance. Investors can benefit from this information by using the Zacks Rank, a rating system that takes into account these estimate changes.

The Zacks Rank system categorizes stocks from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 stocks have produced an impressive average annual return of +25% since 1988. Over the past month, however, the Zacks Consensus EPS estimate for Astrazeneca has seen a slight decrease of 0.55%, leading to the company currently having a Zacks Rank of #4 (Sell).

Examining Astrazeneca's valuation, the company currently holds a Forward P/E ratio of 16.53. This figure is lower than the average Forward P/E ratio of its industry, which stands at 18.97, indicating a potentially attractive valuation.

Also noteworthy is Astrazeneca's PEG ratio of 1.43. The PEG ratio is similar to the P/E ratio, but it additionally accounts for the stock's anticipated earnings growth rate. For comparison, the average PEG ratio for the Medical - Biomedical and Genetics industry was recorded at 1.54 at the end of the trading day.

The Medical - Biomedical and Genetics industry, which Astrazeneca is part of, is positioned within the broader Medical sector. This industry currently enjoys a Zacks Industry Rank of 73, placing it within the top 30% among all industries assessed, out of more than 250 categories.

The Zacks Industry Rank is based on the average Zacks Rank of the individual companies within each sector. Studies suggest that industries in the top half according to Zacks Rank typically outperform those in the bottom half by a ratio of 2 to 1.

Investors are encouraged to monitor these stock-performance metrics and others closely.

Astrazeneca, Stocks, Market