In the latest trading session, Alexion Pharmaceuticals (ALXN) closed at $110.46, marking a +0.65% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.09%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.23%.
Coming into today, shares of the drugmaker had gained 0.2% in the past month. In that same time, the Medical sector gained 6.06%, while the S&P 500 gained 3.81%.
ALXN will be looking to display strength as it nears its next earnings release. On that day, ALXN is projected to report earnings of $2.53 per share, which would represent year-over-year growth of 18.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.29 billion, up 14.69% from the year-ago period.
ALXN’s full-year Zacks Consensus Estimates are calling for earnings of $10.35 per share and revenue of $4.91 billion. These results would represent year-over-year changes of +30.68% and +18.76%, respectively.
Investors should also note any recent changes to analyst estimates for ALXN. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. ALXN is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, ALXN currently has a Forward P/E ratio of 10.6. For comparison, its industry has an average Forward P/E of 25.9, which means ALXN is trading at a discount to the group.
Investors should also note that ALXN has a PEG ratio of 0.76 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. ALXN’s industry had an average PEG ratio of 1.78 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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 Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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