12 Best ADR Stocks to Buy According to Hedge Funds

8. AstraZeneca PLC (NASDAQ:AZN)

Number of Hedge Fund Holders: 55

AstraZeneca PLC (NASDAQ:AZN), one of the best ADR stocks, is a UK-based global biopharmaceutical company focused on the discovery, development, and commercialization of prescription medicines. Its core therapeutic areas include oncology, cardiovascular, renal and metabolism (CVRM), respiratory, and rare diseases. The company has a strong pipeline and product portfolio featuring drugs such as Tagrisso, Farxiga, and Symbicort. AZN also engages in strategic collaborations with biotech firms, academic institutions, and global health organizations to advance research and expand access to treatments.

AstraZeneca PLC (NASDAQ:AZN) delivered a strong performance in 2024, with total revenue rising by 21% and core EPS up 19%. The company demonstrated efficient cost management, as core operating expenses increased by only 14%, showcasing operational leverage. Significant progress was made in its R&D pipeline, with nine high-value pivotal trials initiated during the year, representing over $5 billion in non-risk-adjusted peak revenue potential. AZN continued to advance toward its goal of launching 20 new medicines by 2030, having already secured approvals for eight, including its latest, Datroway. Looking to 2025, the company expects revenue growth in the high single digits and a low double-digit increase in core EPS despite some upcoming challenges.

While AstraZeneca PLC (NASDAQ:AZN) faces headwinds such as the US Inflation Reduction Act impacts, China’s volume-based procurement, and the patent expiry of Brilinta, the company remains confident in continued demand for its innovative therapies across global markets. Its pipeline remains robust, with over 90 late-stage clinical trials ongoing, each averaging more than $1 billion in potential peak sales and collectively offering more than $15 billion in non-risk-adjusted revenue prospects.

AZN is also expanding its global manufacturing footprint with new facilities for antibody-drug conjugates in Singapore, cell therapies in Maryland, active pharmaceutical ingredients in Ireland, and inhaled treatments in China.