Company name: AstraZeneca
Ticker: AZN.US (New York Stock Exchange)
Target Price: $62
Projected Yield: 12%
Time Line: 3 to 6 months
AstraZeneca is a pharmaceutical holding based in the UK and Sweden, which focuses on researching and producing pharmaceuticals. The core business is oncology treatment and internal medicine, while the company is also developing a vaccine against COVID-19.
What's the Idea?
Capitalize on the stock that could rise with COVID-19 vaccine development and the growth in cancer drugs sales.
Buy AstraZeneca Shares >>
Why Trade AstraZeneca?
Reason 1: Development of a COVID-19 Vaccine
The company's stock price is significantly influenced by the news about developing a vaccine against COVID-19. AstraZeneca is working on it in collaboration with the University of Oxford. This vaccine is considered one of the most promising and is currently undergoing stage 3 of clinical trials.
Reason 2: Vaccine Supply Contracts
AstraZeneca has already entered into a number of agreements for vaccine supply, including those in the US, the UK, the EU, India, Brazil, Argentina, and Mexico. With a total amount of 1.10 billion doses, the average price per dose is around $4.00. Other countries may also join this list. The implementation of the concluded contracts can increase the company's annual earnings by over 18%.
Reason 3: Excellent Financial Results
AstraZeneca posted positive financial results for the first six months of 2020. Sales of cancer drugs in Q2 were up by 29.50% YoY, with the three major cancer drugs posting earnings growth of 32%, 46%, and 48%. This trend may continue, as the global cancer incidence rate is not decreasing.
The company's strategy of increasing new drug sales is working successfully: in the first six months of 2020, new drugs accounted for 50% of total earnings, up from 40% a year before.
How to Use the Investment Idea
- Buy AstraZeneca shares at the current price.
- Allocate no more than 3% to 4% of your midterm transaction budget.
- Sell the stock when the price is at $62 per share.
How to Buy AstraZeneca Shares?
If you don't have an investment account yet, open it now: this can be done online, in just 10 minutes. All you need to do is fill out a short form and verify your account.
After opening an account, you can buy shares in either of the following ways:
Freedom24 Web Platform: Go to the Web Terminal section, type AZN.US (AstraZeneca ticker in the NYSE) in the search box, and select AstraZeneca PLC ADS. in the search results. Open a secure session in the trading window on the right, select the number of shares you want to buy, and click Buy.
Freedom24 iPhone App: Go to the Price screen and tab the search icon in the top right corner. In the search dialog that shows up, type AZN.US (AstraZeneca ticker in the NYSE), and select AstraZeneca PLC ADS in the search results. You will then see AstraZeneca stock in the market watch; tap it and go to the Order tab in the dialog that shows up. Specify the number of shares you want to buy and click Buy.
Buy AstraZeneca Stock: Don't Miss the Opportunity to Capitalize on COVID-19 Vaccine!
Buy AstraZeneca Shares >>
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