After Today’s Gap Down, Is AstraZeneca plc (ADR)’s Near-Term Analysis Negative?

The stock of AstraZeneca plc (ADR) (NYSE:AZN) gapped down by $0.43 today and has $26.64 target or 7.00% below today’s $28.65 share price. The 8 months technical chart setup indicates high risk for the $71.78 billion company. The gap down was reported on Mar, 1 by If the $26.64 price target is reached, the company will be worth $5.02B less. Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock is down 0.07% or $0.02 after the news, hitting $28.65 per share. About 4.85 million shares traded hands. AstraZeneca plc (ADR) (NYSE:AZN) has declined 11.74% since July 23, 2015 and is downtrending. It has underperformed by 4.40% the S&P500.

Analysts await AstraZeneca plc (ADR) (NYSE:AZN) to reports earnings on April, 22. They expect $0.51 earnings per share, down 5.56% or $0.03 from last year’s $0.54 per share. AZN’s profit will be $1.28 billion for 14.04 P/E if the $0.51 EPS becomes reality. After $0.94 actual earnings per share reported by AstraZeneca plc (ADR) for the previous quarter, Wall Street now forecasts -45.74% negative EPS growth.

Out of 4 analysts covering AstraZeneca plc (ADR) (NYSE:AZN), 1 rate it “Buy”, 0 “Sell”, while 3 “Hold”. This means 25% are positive. AstraZeneca plc (ADR) was the topic in 14 analyst reports since July 31, 2015 according to StockzIntelligence Inc.

According to Zacks Investment Research, “AstraZeneca PLC is one of the top five pharmaceutical companies in the world based on sales and is a therapeutic leader in cardiovascular, gastrointestinal, oncology, anesthesia including pain management, central nervous system (CNS) and respiratory products. They are engaged in the research, development, manufacture and marketing of ethical (prescription) pharmaceuticals and agricultural products, and the supply of healthcare services.”

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