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Is AZN a good stock to buy? We came across a bullish thesis on AstraZeneca PLC on South Sea Investing’s Substack. In this article, we will summarize the bulls’ thesis on AZN. AstraZeneca PLC's share was trading at $195.78 as of April 21st. AZN’s trailing and forward P/E were 30.69 and 19.23 respectively according to Yahoo Finance.

AstraZeneca PLC has evolved from its origins in the 19th-century chemicals industry into one of the world’s leading pharmaceutical companies, with roots tracing back to Nobel Industries and the formation of Imperial Chemical Industries (ICI). The modern company emerged after the 1993 demerger of Zeneca from ICI and its subsequent merger with Astra AB in 1999, combining complementary strengths across therapeutic areas.

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Today, AstraZeneca operates across oncology, rare diseases, and biopharmaceuticals, with oncology as its crown jewel contributing roughly 44% of revenue, supported by blockbuster drugs like Tagrisso, Imfinzi, and Enhertu. The 2021 acquisition of Alexion strengthened its rare diseases segment, while biopharmaceuticals remain a major contributor with products such as Farxiga.

The company’s transformation under CEO Pascal Soriot has been pivotal, particularly in navigating the early-2010s patent cliff through increased R&D investment and pipeline expansion. AstraZeneca now boasts nearly 200 projects, including over 100 in late-stage Phase 3 trials, reinforcing its competitive moat in a high-barrier industry defined by long development cycles and regulatory complexity. Financially, strong revenue growth, a PEG ratio of around 0.72, and a 45% EPS CAGR from 2022–2025 suggest the market may still be underappreciating its earnings trajectory.

Geographically, the U.S. is its largest market, and recent policy risks have been mitigated through a $50 billion investment commitment securing tariff exemptions and favorable pricing arrangements. Combined with demographic tailwinds such as aging populations and rising cancer incidence, AstraZeneca is well-positioned for long-term growth. With ambitious targets of $80 billion in revenue by 2030, a strong pipeline, and proven leadership, the company presents a compelling case supported by both structural industry drivers and internal execution.

Previously, we covered a bullish thesis on Pfizer Inc. (PFE) by Akim Guerreiro in September 2024, which highlighted the company’s high dividend yield, post-COVID normalization impact, and recovery potential driven by its pipeline and strategic acquisitions. PFE’s stock price has depreciated by approximately 6.34% since our coverage. South Sea Investing shares a similar view but emphasizes on AstraZeneca’s stronger pipeline depth and oncology leadership.

AstraZeneca PLC is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held AZN at the end of the fourth quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of AZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.