£ 10,000 invested in Astrazeneca shares 1 year now is worth …

Has increased 15.6%, so £ 10,000 invested in Astrazeneca (LSE: AZN) The shares of a year ago, now they would be worth approximately £ 11,560. Clearly, this is not a bad yield for investors who would also have received around £ 240 in the form of dividends.

What is behind the ascent?

The increase in the prices of Astrazeneca shares is attributed to its solid financial performance, particularly in 2024, where total income and central profits per action (EPS) grew 21% and 19%, respectively. The company's oncology segment led the position with an increase in income of 24%. Other areas such as cardiovascular and respiratory therapies also contributed to growth.

However, it has not been a gentle increase. The action has dropped several times, particularly at the end of 2024 due to the challenges in China. The arrest of the president and other executives of the country of Astrazeneca, together with an investigation into the alleged collection of illegal data, led sales to fall in the region. This caused a temporary decrease in the price of shares.

In more general terms, the long -term potential of the company is a great advantage for investors. The company aims to deliver $ 80 billion in total revenues for the end of the decade, compared to $ 54 billion, which drives improved profits during the period. In addition, the approach and positioning of Astrazeneca in oncology is undoubtedly a strategic strength, since the company continues to advance innovative treatments that address the critical needs not satisfied in cancer attention.

Dig more deeply and seems undervalued

Despite China's problem, which can have limited financial repercussions, but could damage their reputation in the country, many analysts believe that Astrazeneca is undervalued. Morgan Stanley recently began coverage with an overweight rating, citing action as a “convincing entry point“Due to its solid pipe and exposure to high-value markets such as Oncology, cardiovascular/renal treatments and next generation immuno-outshance. The bank anticipates the expansion of two digit backward (net income or profits) in 2025, driven by key medications such as key medications such as A substance, in Inheru, and Teszpire.

From an assessment perspective, Astrazeneca may seem more expensive than some of its Megapasco pharmaceutical fellow. For example, your price -gain price ratio (p/e) 17.5 times is very high that Pfizer at 8.6 times. However, it is a different image when we use growth adjusted metrics. The strong growth projections of Astrazeneca lead us to a price ratio to growth (PEG) of 1.3 versus Pfizer's 3.3. In more general terms, this PEG relationship represents a 23% discount on the average of the health sector.

The final result

Astrazeneca's income objective depends on the company that sets 20 new medicines and invests in disruptive innovation and sustainable practices. However, things are never simple in pharmacy and biotechnology. In fact, companies can spend billions only to achieve test data that do not show a significant improvement against the reference treatment. This introduces a degree of risk for investors.

However, with a robust pipe and a strong wallet, I am supporting Astrazeneca to succeed in the long term. Simply, I am considering adding to my position, which is mainly in my sipp, and leaving it for a decade. There may be ups and downs, but your focus on oncology and investments in disruptive innovations are long -term drivers.