10 Cheap Pharmaceutical Stocks to Buy According to Analysts

7. AstraZeneca PLC (NASDAQ:AZN)

Price Target Upside: 21.98% 

British pharma giant, AstraZeneca PLC (NASDAQ:AZN) is placed 7th on our list of cheap pharmaceutical stocks. The business creates pharmaceuticals for uncommon, metabolic, cardiovascular, renal, and oncological conditions. BofA reaffirmed its Buy recommendation for the stock on February 12th, citing a £145 price objective. Based on the stock’s value, which is deemed attractive at roughly 14 times its anticipated 2026 profits per share, the company has a bright outlook. BofA believes that the stock may rise to 18 times its projected 2026 P/E due to mid-term guidance that points to a high single-digit compound annual growth rate for sales.

The net cash flow from operating activities of AstraZeneca PLC (NASDAQ:AZN) increased by $1.5 billion in 2024. The $2.2 billion in capital expenditures was in line with the anticipated 50% increase over 2023. While paying off approximately $7 billion in debt, the corporation also grew through strategic acquisitions, such as Fusion, Icosavax, and Amolyt. The business also increased its dividend to $3.10 per share in 2024 and aims to boost it again to $3.20 in 2025. With solid growth momentum despite significant hurdles, the company anticipates that overall sales will expand at a high single-digit rate in 2025, while core EPS will climb by a low double-digit percentage.

In Q3 2024, 42 hedge funds owned AstraZeneca PLC (NASDAQ:AZN), compared to 49 funds the previous quarter, according to data from Insider Monkey.