Astrazeneca (AZN) Outperforms Broader Market: Key Insights

Astrazeneca (AZN - Free Report) wrapped up its latest trading session at a price of $75.57, reflecting a notable increase of +1.79% from its previous closing value. This rise surpassed the broader market, as the S&P 500 saw a smaller gain of 0.49% on the same day. Meanwhile, the Dow experienced a decline of 0.2%, and the technology-focused Nasdaq increased by 1.22%.

Over the past month, Astrazeneca's stock has appreciated by 2.08%, which contrasts sharply with the Medical sector's decline of 1.05% and the S&P 500's larger loss of 8.15% during the same timeframe.

Investors are eagerly awaiting Astrazeneca's upcoming earnings report. Analysts expect the company to announce earnings per share (EPS) of $1.10, which would signify a 6.8% growth compared to the same quarter last year. Additionally, consensus estimates forecast revenue to reach $13.6 billion, marking a 7.3% increase year-over-year.

For the full fiscal year, Zacks Consensus Estimates anticipate earnings of $4.49 per share and revenue of approximately $57.14 billion. These figures indicate an annual growth of +9.25% for earnings and +5.67% for revenue when compared to the former year.

It is also essential for investors to consider any recent changes in analyst forecasts for Astrazeneca. Such revisions can provide insight into shifting business trends in the short term. Positive adjustments in estimates often reflect analysts' confidence in the company's operational performance and its potential for profit.

Research has shown that changes in earnings estimates are closely linked to stock price movements in the near term. Investors may leverage these insights through the Zacks Rank system, which evaluates these estimate changes and offers a straightforward, actionable rating framework.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks rated #1 have produced an exceptional average annual return of +25% since 1988. Recently, the Zacks Consensus EPS estimate for Astrazeneca has decreased by 0.55%. Presently, the company holds a Zacks Rank of #4 (Sell).

Regarding its valuation, Astrazeneca possesses a Forward P/E ratio of 16.53. This figure is below the average Forward P/E of 18.97 for its industry, indicating a comparatively appealing valuation.

Astrazeneca's PEG ratio stands at 1.43, a metric that considers both the P/E ratio and the expected earnings growth rate. This is favorable compared to the industry average PEG ratio of 1.54 at the close of the market yesterday.

The Medical - Biomedical and Genetics industry is a segment of the larger Medical sector and currently boasts a Zacks Industry Rank of 73, placing it in the top 30% out of over 250 industries.

This rankings system is based on the average Zacks Rank of individual companies within each sector. Historical data indicate that top-rated industries outperform lower-ranked ones by a factor of two to one.

Investors should keep a close watch on these pivotal metrics and additional factors influencing stock performance on relevant platforms.

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