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Astrazeneca (AZN) Dips More Than Broader Markets: What You Should Know

Astrazeneca (AZN) closed at $56.02 in the latest trading session, marking a -1.87% move from the prior day.

This story originally appeared on Zacks

Astrazeneca (AZN) closed the most recent trading day at $56.02, moving -1.87% from the previous trading session. This change lagged the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.24%.

- Zacks

Coming into today, shares of the pharmaceutical had gained 0.67% in the past month. In that same time, the Medical sector lost 0.71%, while the S&P 500 lost 0.62%.

Investors will be hoping for strength from Astrazeneca as it approaches its next earnings release. On that day, Astrazeneca is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 44.44%. Our most recent consensus estimate is calling for quarterly revenue of $11.13 billion, up 50.17% from the year-ago period.

AZN's full-year Zacks Consensus Estimates are calling for earnings of $2.59 per share and revenue of $36.19 billion. These results would represent year-over-year changes of +28.86% and +35.95%, respectively.

It is also important to note the recent changes to analyst estimates for Astrazeneca. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% higher. Astrazeneca is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Astrazeneca is currently trading at a Forward P/E ratio of 22.02. This represents a premium compared to its industry's average Forward P/E of 13.99.

Also, we should mention that AZN has a PEG ratio of 1.24. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.12 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 109, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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