Is AstraZeneca PLC (AZN) The Best UK Stock to Invest in Now?

AstraZeneca PLC (AZN), a leading multinational pharmaceutical and biopharmaceutical company, has been making waves in the investment community with its robust pipeline and impressive financial performance. As an income-focused investor, you might be wondering if AZN is the best UK stock to invest in at present. This article explores the reasons why AZN is an attractive investment option and why it aligns with the Income Method approach.
AstraZeneca's diverse portfolio of innovative medicines across various therapeutic areas, including oncology, cardiovascular, respiratory, and immunology, positions it well for long-term growth. In 2023, oncology contributed 43% of its total revenue, with drugs like Tagrisso and Lynparza leading the way. Biopharmaceuticals, including respiratory and immunology, accounted for 31%, while rare diseases made up 10%. The company's pipeline, with 20 new medicines expected by 2030, further enhances its growth prospects.

AstraZeneca's strategic collaborations and acquisitions have significantly bolstered its pipeline and growth prospects. In 2023, the company's revenue grew by 3.29% to $45.81 billion, with earnings surging 81.11% to $5.96 billion. This growth was driven by a 15% increase in product sales, reflecting the success of its innovative medicines across various therapeutic areas. AstraZeneca's commitment to R&D, with an expected 20 new medicines by 2030, further strengthens its pipeline. Additionally, the company aims to deliver $80 billion in total revenue by 2030, up from $45.8 billion in 2023, underscoring its confidence in its growth prospects.

AstraZeneca's commitment to R&D and innovation is a key driver of its mid- to long-term growth ambitions. In 2023, the company's R&D expenditure was $6.7 billion, representing 14.7% of its total revenue. This investment has resulted in a robust pipeline of new medicines, with 20 expected to be launched by 2030. AstraZeneca's ambition is to achieve $80 billion in total revenue by 2030, up from $45.8 billion in 2023, driven by growth in its existing oncology, biopharmaceuticals, and rare disease portfolios, as well as these new medicines. The company's focus on productivity and operating leverage is expected to deliver a mid-30s percentage core operating margin by 2026, further supporting its growth ambitions.

In conclusion, AstraZeneca PLC (AZN) is an attractive investment option for income-focused investors. Its diverse portfolio, strategic collaborations, and commitment to R&D position it well for long-term growth. With an expected 20 new medicines by 2030 and an ambitious $80 billion revenue target, AZN is poised to deliver consistent, inflation-protected income. As an investor, you can capitalize on the undervaluations created by market perceptions and invest in funds like the Cohen & Steers Quality Income Realty Fund (RQI) for their stable yields and potential for capital gains. Additionally, consider diversifying your portfolio with investments in funds like the XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and REITs like AWP and GOOD. Lastly, reliable income-generating investments like Scotiabank offer high dividends and are supported by strong institutional stability. By adhering to the Income Method and investing in AstraZeneca, you can secure steady returns and build a robust retirement portfolio.