AstraZeneca Plc shares declined 3.04% to close at $183.86 on Wednesday, trailing the S&P 500's 0.22% loss. The stock trades at 18.43 times forward earnings, a discount to the pharmaceutical industry average of 23.76. The company is scheduled to report second-quarter earnings on July 27.
AstraZeneca Plc shares declined 3.04% to close at $183.86 on Wednesday, trailing the S&P 500's 0.22% loss. The stock trades at 18.43 times forward earnings, a discount to the pharmaceutical industry average of 23.76. The company is scheduled to report second-quarter earnings on July 27.
AstraZeneca Plc shares fell 3.04% to $183.86 on Wednesday, underperforming the S&P 500's 0.22% decline and the Dow's 0.03% drop.
The stock carries a Zacks Rank of #2 (Buy), with consensus estimates rising 0.33% over the past month, according to Zacks Investment Research.
Despite the session's decline, AstraZeneca has gained 6.86% over the past month, outpacing the Medical sector's 6.47% advance and the S&P 500's 1.21% loss. The stock trades at 18.43 times forward earnings, a 22% discount to the industry average of 23.76, with a PEG ratio of 1.5 versus the industry's 1.72.
The company is scheduled to report second-quarter earnings on July 27, with analysts projecting earnings per share of $2.52, up 15.6% from a year earlier, on revenue of $15.27 billion. For the full year, the consensus calls for EPS of $10.29 and revenue of $63.18 billion.
The decline came as the broader market also retreated, with the S&P 500 losing 0.22%, the Dow falling 0.03% and the Nasdaq dropping 0.66%. AstraZeneca's drop was more than 10 times the S&P 500's decline, suggesting company-specific factors drove the move.
Analyst sentiment has been trending positive despite the price drop. Over the past month, the Zacks Consensus EPS estimate has moved upward by 0.33%, reflecting growing confidence in the company's earnings trajectory. The Zacks Rank of #2 (Buy) indicates analysts expect the stock to outperform in the near term.
AstraZeneca's valuation remains attractive relative to pharmaceutical peers. Its forward P/E of 18.43 represents a discount to the Medical - Biomedical and Genetics industry average of 23.76, while its PEG ratio of 1.5 also compares favorably to the industry's 1.72.
The upcoming earnings report on July 27 will be a key test for the stock. Analysts expect EPS growth of 15.6% year over year to $2.52 and revenue growth of 5.65% to $15.27 billion. For the full fiscal year, the consensus projects earnings of $10.29 per share on revenue of $63.18 billion, representing annual growth of 12.34% and 7.56%, respectively.
The decline puts pressure on AstraZeneca to deliver strong quarterly results. Investors will watch the July 27 earnings release for updated guidance and segment performance.
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