Stock price when the opinion was issued
Is overlooked in pharma. It boasts an amazing oncology business, including recent positive trial data on phase 2 and 3 lung cancer drugs, which could be breakthroughs. Shares have doubled in the last 5 years and has been climbing since 2016. Last April they delivered a blowout quarter with an earnings beat and a bullish forecast including a 8.5% compound annual growth rate based on doubling multi-billion drugs to 25 by 2030. Also, they are developing obesity drugs.
Very strong R&D pipeline, with new products expected. Off recent share price highs, which is a good time to buy. Margins very strong on new products. Expecting earnings to rise in the immediate future. Low double digit EPS @ 16x earnings a very strong value proposition. Will continue to hold for the long term.
They rallied last summer, then faced headwinds last fall when a cancer drug failed to perform in trials and there was an investigation in their large Chinese business. Both problems are clearing now. They have a drug pipeline that should become a great growth story. Trades at 15x PE.
Our PAST TOP PICK with AZN is progressing well. To remain disciplined, we recommend trailing up the stop (from $64) to $71 at this time.