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Alexion Pharmaceuticals (ALXN) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Alexion Pharmaceuticals (ALXN) closed at $109.82 in the latest trading session, marking a -1.39% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.

Coming into today, shares of the drugmaker had gained 3.15% in the past month. In that same time, the Medical sector gained 5.4%, while the S&P 500 gained 1.82%.

Wall Street will be looking for positivity from ALXN as it approaches its next earnings report date. The company is expected to report EPS of $2.53, up 18.22% from the prior-year quarter. 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 might also notice recent changes to analyst estimates for ALXN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. ALXN currently has a Zacks Rank of #2 (Buy).

In terms of valuation, ALXN is currently trading at a Forward P/E ratio of 10.76. This valuation marks a discount compared to its industry's average Forward P/E of 24.59.

We can also see that ALXN currently has a PEG ratio of 0.77. 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 1.76 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 56, putting it in the top 22% 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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