Healthcare Stocks Are Showing Life Beyond Lilly and GLP-1s
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2024
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Source: Barron's
Healthcare Sector Performance: Eli Lilly's stock has surged nearly 60% this year due to the popularity of GLP-1 drugs, while the broader healthcare sector is recovering from a decline in earnings following the end of the Covid-19 vaccine boom. The Health Care Select Sector SPDR ETF (XLV) is up about 12% in 2024, with expectations for a 20% increase in earnings by 2025.
Investment Opportunities: Analysts suggest looking beyond major players like Lilly and Novo Nordisk, highlighting potential in companies such as Amgen, AstraZeneca, and Sanofi, driven by aging populations and ongoing innovation. Additionally, the political landscape appears less threatening for the healthcare industry, which may benefit investors seeking stability.
Analyst Views on AZN
Wall Street analysts forecast AZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AZN is 102.75 USD with a low forecast of 95.00 USD and a high forecast of 108.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 90.540
Low
95.00
Averages
102.75
High
108.00
Current: 90.540
Low
95.00
Averages
102.75
High
108.00
About AZN
AstraZeneca PLC is a United Kingdom-based science-led biopharmaceutical company. The Company focuses on the discovery, development, and commercialization of prescription medicines. The Company operates across therapy areas, including Oncology; Cardiovascular, Renal and Metabolism (CVRM); Respiratory and Immunology (R&I); Vaccines and Immune Therapies (V&I), and Rare Disease. In the Oncology area, its key products include Tagrisso, Imfinzi, Calquence, Lynparza, and Enhertu. The key products of CVRM area include Farxiga/Forxiga, Brilinta/Brilique, Crestor, and Lokelma. In the R&I area, the key products are Symbicort, Fasenra, Breztri/Trixeo, and Tezspire. In the V&I Therapies area, the products are Beyfortus and FluMist. The products in the Rare Disease area are Ultomiris, Soliris, Strensiq, and Koselugo. It has about 191 projects in its development pipeline, including 19 new molecular entities (NMEs) in the late-stage pipeline. The Company distributes its products in over 125 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
