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AstraZeneca: The Hot Stock Pick Right Now

Writer's picture: Theo DarringerTheo Darringer

Is AstraZeneca Stock a Buy for 2024?

AstraZeneca (AZN) may have had a rocky 2023, but all signs indicate that this pharmaceutical powerhouse is gearing up for a triumphant rebound in 2024. Despite a slight dip in its stock price during the last year, numerous factors suggest that AstraZeneca is poised for a significant upswing. Here's why investors should seriously consider making this stock a part of their portfolio.


AstraZeneca was a top provider for the Covid-19 Vaccine.

2023 Setback: A Bump in the Road

The company witnessed a minor downturn in 2023, facing challenges with Covid-19 vaccine sales slowing down and disappointing trial results for its lung cancer treatment. This led to its underperformance in the market compared to industry counterparts. However, these setbacks have not deterred AstraZeneca's prospects for the upcoming year.


Bullish 2024 Outlook

Market projections for AstraZeneca in 2024 and beyond are notably optimistic. The company is expected to achieve double-digit earnings growth, estimated at around 14% and 15% in 2024 and 2025, respectively. This growth will be primarily propelled by a robust portfolio of blockbuster drugs such as Farxiga and Lynparza, each forecasted to generate sales exceeding $3 billion.


Robust Portfolio and Promising Newcomers

AstraZeneca boasts a diverse business portfolio, with its oncology division being a major revenue driver. Besides its well-established lung cancer treatment Tagrisso, recent acquisitions and key drugs across various therapeutic areas, including cardiovascular health and immunology, are anticipated to significantly contribute to its top line.


Future Catalysts and Product Potential

New products in the pipeline are expected to further boost AstraZeneca's performance. Immunotherapy drug Imfinzi, along with Baxdrostat and datopotamab deruxtecan, demonstrate considerable promise in cancer treatment and hypertension management, potentially serving as significant growth catalysts.


Attractive Valuation and Growth Prospects

AstraZeneca's current valuation appears compelling for investors looking for a buy opportunity. With its shares trading at a reasonable 16.1 times forward earnings (below its historical average and the S&P 500), the stock offers an attractive entry point. Comparatively, its projected earnings-per-share growth through the decade surpasses industry averages, signaling substantial potential returns.


Summary: AstraZeneca - A Prescription for Success

Despite challenges faced in 2023 and industry-wide concerns, AstraZeneca's wide-ranging pipeline, innovative drugs, and attractive valuations position it as a compelling stock pick for investors eyeing strong growth potential. While uncertainties in drug development persist, the company's diverse offerings and favorable prospects make AstraZeneca an enticing buy for 2024.


Investors seeking a promising pharmaceutical stock with robust growth potential need to look no further than AstraZeneca. The company's strategic moves, diverse product portfolio, and anticipated launches make it a standout contender for a profitable investment in the stock market this year.






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"Will There Be a Bull Market in 2024?" Yes, despite the sluggish start, evidence suggests a bullish inclination for 2024. Market dynamics, historical trends, and expert sentiments collectively point towards an optimistic outlook for the remainder of the year.


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