AstraZeneca share price: 4 reasons I’d buy after its Covid-19 vaccine results

AstraZeneca share price: 4 reasons I’d buy after its Covid-19 vaccine results

first_img “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Manika Premsingh owns shares of AstraZeneca. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Manika Premsingh | Monday, 23rd November, 2020 | More on: AZN AstraZeneca share price: 4 reasons I’d buy after its Covid-19 vaccine results Image source: Getty Images. center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The FTSE 100 pharmaceutical giant AstraZeneca (LSE: AZN) has reported 70% success in its Covid-19 vaccine, developed along with University of Oxford. For a lay person like me, this looks like a positive. But, it also appears to be less positive than the results that either Pfizer and Moderna had this month. Both companies reported around 95% success rate in vaccine trials. This probably explains why the AstraZeneca share price is down almost 2% today. I’ll be very surprised if the AstraZeneca share price falls much further from here, though. There are four reasons why I think so.#1. Measurement differencesDifferences in measuring vaccine success could be one reason why the AstraZeneca-Oxford vaccine looks relatively less effective. The vaccine takes into account all cases from severe to mild. If it only considered prevention of severe cases, the efficacy rate would be higher, according to the Oxford Vaccine Group. Also, the vaccine itself has shown different success rates based on the amount of vaccine administered. I think only time will tell how effective each of the vaccines are. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…#2. AstraZeneca’s practical solutionIt’s possible, of course, that the Pfizer and Moderna vaccines are indeed more effective. But, according to a Financial Times report, AZN’s vaccine has practical advantages over them. It can be stored in the refrigerator, for instance. By comparison, the other vaccines need to be stored at extremely low temperatures that will required specialised solutions. It’s also available at a much lower cost, which is helpful in reaching more people. #3. Sale at costThis has been made possible quite likely because AZN has always maintained that it will sell the Covid-19 vaccine at cost price. With no profits in it, I don’t see how investors were going to gain from this particular initiative alone. Following from that, I don’t see why its share price should be affected at all. In fact, on the contrary, it’s another feather in AZN’s cap. Moreover, it plays a part in exorcising Covid-19 from our lives. That’s good for everyone, including AstraZeneca and its share price.#4. AZN share price was always highWhile Covid-19 has created a lot of buzz around the AstraZeneca stock, it was a star performer even earlier. Priced at over £80 for a single share, AZN looks pricey in absolute terms. It’s also so relatively speaking. Its price to earnings (P/E) ratio is 43 times, which is way higher than most other FTSE 100 stocks. Moreover, it has been high for a while now. When I first wrote about the stock last year, its P/E was even higher at over 60 times. I had argued then that we shouldn’t see the stock as ‘expensive’. Rather, the P/E should be seen as the premium investors place on buying it. My view on it hasn’t changed. I think the dip is once again, an opportunity to buy. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address See all posts by Manika Premsinghlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *