Shares in AstraZeneca PLC show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 42% by 2022.
● The group's high margin levels account for strong profits.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The company's enterprise value to sales, at 4.28 times its current sales, is high.
● With a 2020 P/E ratio at 31.67 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
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AstraZeneca PLC is one of the world's leading pharmaceutical groups. Net sales break down by source of income as follows:
- product sales (94.2%). Net sales break down by treatment area between oncology (39.8%), cardiovascular, renal and metabolic diseases (24.4%), respiratory and autoimmune diseases (14.6%), and other (21.2%; inflammatory diseases, neurological diseases, gastrointestinal and infectious diseases);
- collaboration revenue (5.8%).
Net sales are distributed geographically as follows: the United Kingdom (8.8%), Europe (21.6%), the United States (40.3%), Americas (5.9%) and Africa/Asia/Australia (23.4%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
