ILast trading session, Astrazeneca (AZN) closed at $65.25, marking a -0.17% move from the previous day. That change was narrower than the S&P 500’s 0.93% daily loss. Elsewhere, the Dow Jones lost 0.43%, while the tech-heavy Nasdaq lost 0.17%.
Prior to today’s trading, shares of the pharmaceutical company had gained 1.41% in the past month. This lagged the medical sector’s gain of 6.13% and the S&P 500’s gain of 6.31% during this period.
Wall Street will be looking for positivity from Astrazeneca as its next earnings release date approaches. That is expected to be July 29, 2022. On that day, Astrazeneca is expected to report earnings of $0.78 per share, which would represent year-over-year growth of 73.33%. Meanwhile, Zacks consensus estimate for revenue calls for net sales of $10.49 billion, up 27.66% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $3.29 per share and revenue of $43.54 billion, which would represent swings of +24.15% and +16, 37%, respectively, compared to the previous year.
Investors might also notice recent changes in analyst estimates for Astrazeneca. These revisions generally reflect the latest short-term trading trends, which may change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with No. 1 stocks offering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has fallen 0.24% over the past month. Astrazeneca currently holds a Zacks rank of #3 (Hold).
Valuation is also important, so investors should note that Astrazeneca has a Forward P/E ratio of 19.85 at this time. Its industry sports an average Forward P/E of 12.32, so we could conclude that Astrazeneca is trading at a premium comparatively.
It should also be noted that AZN currently has a PEG ratio of 1.24. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Large Cap Pharmaceuticals shares hold, on average, a PEG ratio of 2.14 based on yesterday’s closing prices.
The large-cap pharmaceutical industry is part of the medical sector. This industry currently has a Zacks Industry Rank of 165, which places it in the bottom 35% of all 250+ industries.
The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
To follow AZN in upcoming trading sessions, be sure to use Zacks.com.
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