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Astrazeneca (AZN) Gains But Lags Market: What You Should Know

In the latest trading session, Astrazeneca (AZN) closed at $63.83, marking a +0.42% move from the previous day.

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This story originally appeared on Zacks

Astrazeneca (AZN) closed at $63.83 in the latest trading session, marking a +0.42% move from the prior day. This change lagged the S&P 500's 0.65% gain on the day.

- Zacks

Prior to today's trading, shares of the pharmaceutical had gained 6.13% over the past month. This has outpaced the Medical sector's gain of 4.93% and lagged the S&P 500's gain of 6.38% in that time.

AZN will be looking to display strength as it nears its next earnings release, which is expected to be November 12, 2021. On that day, AZN is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 38.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.82 billion, up 49.3% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $36.04 billion, which would represent changes of +31.84% and +35.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AZN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.53% lower. AZN currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that AZN has a Forward P/E ratio of 24 right now. For comparison, its industry has an average Forward P/E of 14.17, which means AZN is trading at a premium to the group.

Also, we should mention that AZN has a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.



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