According to analysts, the current year’s gain is expected to be almost 200%, and the following year’s gain is expected to be nearly 16%. All this progress has resulted in a rise in the share price.
Some shares could have been purchased for 3,010p in 2012. Currently, they are worth about 10,900p. In other words, FTSE 100 giant has gained almost 265% in a short period.
Would it be too late for me to purchase AstraZeneca shares today? One of the most compelling reasons to buy some shares is that the company continues investing millions in R&D.
It’s a case of success that begets success in a positive upward spiral. As July’s half-year report stated: “Strong revenue performance and R&D success enable further investment in the pipeline and new launches.”
However, a blockbuster drug is not guaranteed, even if R&D efforts are successful. A company can easily miss earnings estimates because of operational challenges and setbacks.
See here the Live Prices of AstraZeneca Stock.
Reason to avoid
In the past few years, the company’s earnings have decreased instead of increasing. Almost 40% of them plunged by the end of 2018. The company was now free from its long purgatory period.
After that, earnings rocketed up more than 70% the following year. Fortunately, city analysts predict that the trend will continue for the foreseeable future.
Despite all the earnings struggles faced by AstraZeneca, the share price has been trending upward since 2013. The savvy investors, such as Neil Woodford (the same Neil Woodford you knew when he was still good), saw this coming.
Technical analysis
On Monday, Daiichi Sankyo (TYO: 4568), the company’s co-developer, saw its stock jump 15%, while AstraZeneca shares rose 2.5%.
The shares of AstraZeneca PLC (AZN: LSE) closed on Wednesday at 11,002.00, -2.55% lower than their 52-week high of 11,289.62, set on July 18, 2022. The range for the past 52 weeks.
