{"id":12814049,"date":"2025-04-28T11:20:52","date_gmt":"2025-04-28T15:20:52","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12814049"},"modified":"2025-04-28T11:20:52","modified_gmt":"2025-04-28T15:20:52","slug":"philstockworld-top-trade-alert-april-28-2025-astrazeneca-azn","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2025\/04\/28\/philstockworld-top-trade-alert-april-28-2025-astrazeneca-azn\/","title":{"rendered":"PhilStockWorld Top Trade Alert &#8211; April 28, 2025 &#8211; Astrazeneca (AZN)"},"content":{"rendered":"<p><strong>We were just going over 10 stocks with high Return on Capital (ROC) that have been down in the dumps recently and several turned into trade ideas for the Member Portfolios.<\/strong><\/p>\n<p><strong>Among them was AZN, which is in the Healthcare Sector that we like in this environment and their UK base gives them Global diversity that means they will not be at the whi<\/strong><strong>m of Trump&#8217;s tariffs <\/strong>(we hope!)<strong>.\u00a0\u00a0<\/strong><\/p>\n<p>The following is Anya&#8217;s analysis followed by my trade idea for the LTP:<\/p>\n<p><span style=\"color: #800080;\"><strong>4. AstraZeneca PLC (AZN)<\/strong><\/span><\/p>\n<p><span style=\"color: #800080;\"><a style=\"color: #800080;\" href=\"https:\/\/publish.finviz.com\/042825\/AZNw103812812i.png\" target=\"_blank\" rel=\"nofollow noopener noreferrer ugc\"><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/042825\/AZNw103812812i.png\" alt=\"comment image\" \/><\/a><\/span><\/p>\n<ul>\n<li><span style=\"color: #800080;\">Situation:\u00a0A global biopharmaceutical giant, AZN has a strong ROC (87) and is currently 20.7% below its 52-week high.<sup>37<\/sup><\/span><\/li>\n<li><span style=\"color: #800080;\">Performance &amp; Drivers:\u00a0AstraZeneca reported very strong full-year 2024 results in February 2025, with total revenue up 21% (CER) and Core EPS up 19%.<sup>38<\/sup>\u00a0Growth was driven by key oncology drugs (Tagrisso, Enhertu) and strength across CVRM and R&amp;I segments.<sup>38<\/sup>\u00a0The stock\u2019s pullback might be related to broader market\/healthcare sector weakness or specific pipeline\/competitive concerns not detailed in the provided notes (e.g., competition for specific drugs).<\/span><\/li>\n<li><span style=\"color: #800080;\">Valuation:\u00a0The forward P\/E ratio is around 15x\u00a0<sup>39<\/sup>, which appears reasonable for a large-cap pharma company with its growth profile. The PEG ratio is near 1.0\u00a0<sup>39<\/sup>, often suggesting fair value relative to expected growth.<\/span><\/li>\n<li><span style=\"color: #800080;\">Outlook &amp; Upside (Rest of 2025):\u00a0The company guided for high single-digit revenue growth and low double-digit Core EPS growth for FY25.<sup>38<\/sup>\u00a0Achieving this guidance and positive pipeline developments are key.\u00a0Upside Potential:\u00a0Moderate but solid. A 10-15% appreciation by year-end seems achievable if the company executes on its guidance and market sentiment towards pharma improves.<\/span><\/li>\n<li><span style=\"color: #800080;\">Verdict:\u00a0Looks like solid value. The pullback seems more related to market factors than company fundamentals, given the strong recent results and outlook.<\/span><\/li>\n<\/ul>\n<p><strong><span class=\"ql-emojiblot\" data-name=\"sunglasses\"><span class=\"wpd-content-em wpdem-sunglasses\">\ud83d\ude0e<\/span><\/span>\u00a0Health Care is one of the only sectors we\u2019re confident in. As it turns out, AZN is fairly range-bound and makes for a nice Butterfly Portfolio Play: Sell 10 AZN 2027 $70 puts at $8.20 ($8,200), Buy 20 AZN 2027 $60 calls at $17 ($34,000), Sell 15 AZN 2027 $80 calls at $7 ($10,500), Sell 7 AZN July $70 calls for $4.50 ($3,150) and Sell 5 AZN $70 puts for $3 ($1,500). The long spread is $15,300 and we\u2019ve sold $4,650 (30.3%) using just 81 of our 627 days.<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We were just going over 10 stocks with high Return on Capital (ROC) that have been down in the dumps recently and several turned into trade ideas for the Member Portfolios. Among them was AZN, which is in the Healthcare Sector that we like in this environment and their UK base gives them Global diversity [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12814050,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26305],"tags":[],"class_list":{"0":"post-12814049","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-trades"},"_links":{"self":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12814049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/comments?post=12814049"}],"version-history":[{"count":1,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12814049\/revisions"}],"predecessor-version":[{"id":12814051,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12814049\/revisions\/12814051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media\/12814050"}],"wp:attachment":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media?parent=12814049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/categories?post=12814049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/tags?post=12814049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}