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At 11,016p, the AstraZeneca (LSE: AZN) share price has risen by just over 12% this year. But the ride has been bumpy. Nevertheless, news on 3 October may help to propel the stock higher in the long term.
The chart shows a tight sideways price range over the past year. And that can be a good thing if it allows underlying operational progress in a business to catch up with its valuation.
Earnings growth ahead
City analysts are optimistic about the potential of the pharmaceutical business to grow its earnings. Ever since the research and development (R&D) pipeline burst into life a few years ago, profits have been tearing higher.
AstraZeneca has proved that R&D can power growth when it clicks. And the pipeline has been spitting out good-selling new medicines for some time.
Looking ahead, analysts expect normalised earnings to grow by almost 90% this year and by around 16% in 2024 – there’s no doubt that AstraZeneca is clinging to its growth mojo.
But litigation can be a fact of life…
