Stock market

I would buy this FTSE 100 stock without hesitation.

Image source: Getty Images

In today’s volatile market, finding reliable stocks that offer both stability and growth can be challenging. However, there are a number of FTSE 100 stocks that stand out as great investments for me. Here’s one I’ll buy next time.

Astra Zeneca

Astra Zeneca (LSE:AZN), the biopharmaceutical giant, is my first choice. FTSE 100. With a market cap of £191.4bn, it is a heavyweight in the pharmaceutical industry, focused on discovering, developing and commercializing prescription drugs.

On a discounted cash flow (DCF) basis, the firm is currently trading at 34.9% below its estimated value. Of course, this is not a guarantee of value, but certainly shows potential.

The future of the company looks bright. Analysts predict annual earnings growth of around 15 percent over the next few years, indicating strong capital growth potential. This development is not just speculative. Revenue grew by an impressive 34.6% over the past year, demonstrating its ability to deliver strong financial results.

Ticking the last box for me, AstraZeneca offers a reliable dividend yield of 2%. While not the highest in the market, the company’s payout ratio of 71% suggests that the dividend is sustainable, especially given its strong earnings growth.

Product line-up

The company’s success depends on its strong product line-up. Key drugs eg Tegreso, AmphanziAnd Lynparza In oncology, Forexiga In diabetes, and Breezetree Incomes are increasing in respiratory diseases. With a strategic focus on high-growth areas such as oncology and rare disease positions, the business looks well-positioned for the future.

During the pandemic, AstraZeneca gained its global recognition. Waxyuria Covid vaccine. But his story does not end here. Recent updates show continued innovation, such as positive Phase III trial results SepavibartA long-acting antibody to prevent covid in immunocompromised patients. This demonstrates AstraZeneca’s adaptability and commitment to meeting urgent medical needs, which may set it apart from other companies in the sector.

Risks

Of course, it’s not all good news. There is also a lot of competition to consider. With many companies racing to get new products approved, development problems can have far-reaching impacts.

The finances also show some areas of concern, such as high debt levels, but for me it’s important to put it in perspective. Too much debt is never good, but it’s also common in the pharmaceutical industry, where companies invest heavily in R&D to develop new, potentially blockbuster drugs.

At 39.2 times the company’s price-to-earnings (P/E) ratio is also quite high, and significantly higher than the sector average of 25.7 times. With seemingly substantial future earnings in the share price already, any disappointment could lead to a big sell-off.

Overall

In summary, AstraZeneca offers a compelling combination of low cost, strong growth prospects, stable profitability, and a strong product portfolio. Despite some financial concerns, its strategic focus and proven ability to deliver make it a FTSE 100 stock I would buy without hesitation. When I have cash available, I will buy as many shares as I can afford.


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button