AstraZeneca Stock Price and Research (NYSE: AZN)
AstraZeneca (NYSE: AZN) is a large cap company that operates within the pharmaceutical industry. Its market cap is $92 billion today and the total one-year return is 24.61% for shareholders.
AstraZeneca stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: AstraZeneca reported a recent EPS growth rate of -29.45%. That's below the pharmaceutical industry average of 2.32%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the pharmaceutical industry is 35.38. And AstraZeneca's ratio comes in at 30.53. It's trading at a better value than many of its competitors.
✗ Debt-to-Equity : The debt-to-equity ratio for AstraZeneca stock is 107%. That's above the pharmaceutical industry average of 63.66%. That's not a good sign.
✗ Free Cash Flow per Share Growth : AstraZeneca has decreased its FCF per share over the last year relative to its competitors. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins : The profit margin of AstraZeneca comes in at 22.52% today. And generally, the higher, the better. We also like to see this ratio above competitors. AstraZeneca's profit margin is above the pharmaceutical average of 9.85%. So that's a positive indicator for investors.
✓ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for AstraZeneca is 20.13% and that's above its industry average ROE of 11.79%.
AstraZeneca stock passes three of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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