Is the FTSE 100’s most valuable company still worth me buying after Q3 results?
FTSE 100 pharmaceutical titan AstraZeneca (LSE: AZN) surged past its previous 3 September 2024 high on 11 November.
This came after the release of its Q3 2025 results and made it the largest UK-listed stock by market value.
After such a rise, many investors have been left asking whether there can be any room for further gains. So, is there?
Were the results that good?
Q3 revenue jumped 12% year on year to $15.19bn (£11.59bn) â ahead of analystsâ expectations of $14.79bn. Core earnings per share (EPS) were up 14% to $2.38 â also outstripping forecasts (for $2.29).
These numbers meant that over the first nine months of this year, revenue has surged 11% to $43.24bn. Core EPS has soared 15% to $7.04.
AstraZeneca also highlighted 16 positive Phase III readouts and 31 regulatory approvals, underscoring its product pipelineâs strength in depth. Phase III readouts, incidentally, are the final testing stage for a new drug before it goes for final regulatory approval.
Any other factors?
These forecast-busting numbers laid the groundwork for the share price surge, I think. But three other elements conspired to drive the stock into record-breaking territory.
The first was an announcement to lower prescription medicine prices in the US. AstraZenecaâs chief financial officer said the firm is confident it can handle the financial hit from the deal with Washington.
The second was an agreement for the US Department of Commerce to delay its tariff assessment on the firm for three years. This will enable AstraZeneca to ensure that all its medicines sold in the US are made there.
And the third came from the 10 November Phase III trial results for its Baxdrostat drug. These showed significant reductions in treatment-resistant high blood pressure. Around 1.4bn people are so afflicted, and in the US alone, around 50% do not have their blood pressure under control.
Whatâs it mean for earnings growth?
Ultimately, it is growth in earnings (or âprofitsâ) that drives any stock price higher over the long run.
A risk for AstraZeneca is a failure in any of its multiple drug development pipeline. These programmes are extremely expensive in terms of time and money, and a lack of success might hit the bottom line.
That said, the firm reiterated in the Q3 results document that 2025âs total revenue will increase by a high single-digit percentage. At the same time, it said that core EPS would increase by a low double-digit percentage.
It also reiterated its target of delivering $80bn of revenue by 2030, against $54.073bn in 2024.
So, is it still worth me buying the stock?
The discounted cash flow valuation model uses cash flow forecasts for a firm to pinpoint where its shares should trade. These in turn factor in earnings growth forecasts for the business.
In AstraZenecaâs case, analysts forecast that its earnings will grow by a very robust 14.6% a year to end-2027.
And the DCF shows the shares are 36% undervalued at their current £134.93 price. Therefore, their âfair valueâ is £210.83.
As there is still a huge amount of value left in the stock I will be buying more soon.
However, I also have my eye on other highly undervalued growth stocks.
The post Is the FTSE 100âs most valuable company still worth me buying after Q3 results? appeared first on The Motley Fool UK.
Should you invest £1,000 in AstraZeneca PLC right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if AstraZeneca PLC made the list?
More reading
- History suggests the FTSE 100 will do this after the UK Autumn Budget
- I asked ChatGPT what FTSE 100 shares I should buy. It said…
- Why I’m buying FTSE 100 shares over US growth stocks in 2026
- How much passive income do you need from your ISA to retire at 60?
- Here’s when the next stock market crash will happen, according to this billionaire investor!
Simon Watkins has positions in AstraZeneca Plc. The Motley Fool UK has recommended AstraZeneca Plc. 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.
