2. AstraZeneca PLC (NASDAQ:AZN)
52 Week Range: $60.47 – $87.55
Current Share Price: $87.45
Short interest rate: 0.27%
Number of Hedge Fund Holders: 49
Headquartered in Cambridge, the United Kingdom, AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company focusing on discovering, developing, and commercializing prescription medicines. The company boasts of a diversified product portfolio that includes 12 blockbuster medicines with sales exceeding $1 billion in number of indications.
It remains one of the best 52-week high stocks to buy, according to short sellers, given that the new products it has launched in recent years have done well. Additionally, the company has made strategic acquisitions to strengthen its product portfolio and competitive advantage. The investments have been the catalyst behind the company’s organic revenue growth rate of 10.45% over the past 12 months.
Oncology remains AstraZeneca PLC (NASDAQ:AZN)’s biggest segment and a key driver of value. Consequently, it has been enhancing its cancer treatment offerings by expanding the indications for current drugs and advancing its pipeline of cancer therapy candidates. Cancer treatments account for approximately 40% of AstraZeneca’s overall revenues, with a 17% increase in 2021, a 19% rise in 2022, and a 21% growth expected in 2023.
AstraZeneca PLC (NASDAQ:AZN) is also advancing rapidly into various fields such as heart health, immune system research, and uncommon illnesses. A notable achievement includes the approval of Voydeya, a medication for managing hemolysis outside of the blood vessels in adults suffering from the rare condition known as paroxysmal nocturnal hemoglobinuria (PNH).
The stock trades at 19 forward earnings, lower than the industry average of 20.58, implying potential undervaluation even on trading near 52-week highs. AstraZeneca PLC (NASDAQ:AZN) comes with a 1.70% dividend yield, ideal for income-focused investors. The company has been paying dividends for 32 consecutive years, affirming its commitment to shareholder value.
As of the second quarter, the stock is held by 49 hedge funds, which amounts to almost $2.33 billion. Fisher Asset Management is the largest investor in the company and has shares worth $776.47 million as of June 30.
In its Q2 2024 investor letter, Baron Health Care Fund commented on AstraZeneca PLC (NASDAQ:AZN):
“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.”
