1) AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 49
Short % of Shares Outstanding (August 15, 2024): 0.27%
AstraZeneca PLC (NASDAQ:AZN) is a global science-led biopharmaceutical company, focusing on the discovery development, and commercialization of prescription medicines.
AstraZeneca PLC (NASDAQ:AZN) seems to be well-placed for long-term growth given the patent-protected drugs and the developing pipeline. Also, the strong replenishment of new drugs should act as a critical tailwind. Notably, the smart strategic decisions on drug pricing and product governance are expected to support the company’s revenue growth.
AstraZeneca PLC (NASDAQ:AZN) continues to focus on lowering the liability risks associated with its portfolio as it focuses more on life-threatening diseases with acute treatment. The company’s top line is expected to be supported by the drugs which are less probable litigation targets.
Strong pricing power concerning AstraZeneca PLC (NASDAQ:AZN)’s portfolio of drugs should continue to act as a core pillar for the leading pharmaceutical giant. As we know, pricing dynamics tend to have a significant impact on public access to basic healthcare services, and this company enjoys a history of fair US price increases when it comes to its oncology portfolio.
AstraZeneca PLC (NASDAQ:AZN) upgraded its full-year guidance to mid-teens percentage increases in both total revenue and core EPS. This reflects its underlying business strength. The critical growth drivers include positive phase 3 trial results, new drug approvals, and healthy performance seen across major markets like the US, Europe, and China.
Analysts at TD Cowen upped their target price on the shares of AstraZeneca PLC (NASDAQ: AZN) from $90.00 to $95.00, giving it a “Buy” rating on 12th August. As per Insider Monkey’s 2Q 2024 database, 49 hedge funds held stakes in AstraZeneca PLC (NASDAQ:AZN).
Baron Funds, an investment management company, released its second quarter 2024 investor letter. Here is what the fund said:
“Performance in pharmaceuticals and health care distributors was bolstered by solid gains from AstraZeneca PLC (NASDAQ:AZN) and McKesson Corporation, respectively. AstraZeneca is a global biopharmaceutical company with a focus on three main therapy areas based on its core competencies: oncology, cardiovascular and metabolic diseases, and respiratory illnesses. AstraZeneca’s shares increased given incremental positive news flow (LAURA, ADRIATIC, and DESTINY-Breast06 clinical trials) surrounding the oncology franchise. The company also published long-term guidance for the first time, projecting $80 billion in revenue by 2030, or 75% higher than 2023’s $45.8 billion. This projection implies an annual growth rate of 8% over seven years, compared with the 5% to 7% targets set by GSK and Johnson & Johnson and the 5% target set by Novartis.”
While we acknowledge the potential of AZN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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