FTSE's Pharma Surge: A Closer Look at Leading Stocks
The FTSE 100’s recent surge has been led by the pharmaceutical sector, marking a 13.7% increase in just the last month. Let’s delve into the standout performers that are leading the rally.
AstraZeneca (AZN): +14.5% YTD
AstraZeneca’s share price jumped higher following the release of a market-beating set of results…
In the first quarter of 2024, AstraZeneca performed exceptionally well, surpassing analysts’ expectations with a 19% growth in revenue.
This impressive growth was primarily driven by increased sales of its cancer drugs. The pharma giant reported a revenue of $12.7 billion, significantly outperforming consensus estimates, which had projected $11.9 billion.
AstraZeneca also reiterated its guidance for the current year, expecting double-digit growth in both sales and earnings.
On the price chart, the shares have now moved into a key area of resistance which represent the April 2023 all-time highs. Momentum traders will be watching closely for a break and close above this resistance as it could trigger AstraZeneca’s next trend leg higher.
AZN Daily Candle Chart
Past performance is not a reliable indicator of future results
GlaxoSmithKline (GSK): +21.1% YTD
Like AstraZeneca, GSK's share price has been buoyed by a strong set of first-quarter results…
GSK’s recent trading statement showed improvements across various metrics, with revenue increasing by 10% to £7.4 billion and underlying operating profit rising by 27% to £2.4 billion, driven by robust growth in Vaccines and Speciality medicines.
GSK's momentum from last year has continued into 2024, driven by strong financial performance and supported by excellence in research & development, which resulted in four major product approvals last year.
Vaccines have emerged as a key growth driver, particularly with products like Shingrix and the recently approved RSV vaccine, Arexvy. The company's focus on HIV treatments and the shift towards long-acting innovation therapies has also contributed to growth in this segment.
On the price chart, GSK is showing strong upwards momentum with the shares breaking above swing resistance at the start of this month. However, the July 2022 cluster of swing highs should provide some resistance in the coming weeks.
GSK Daily Candle Chart
Past performance is not a reliable indicator of future results
Hikma Pharmaceuticals (HIK): +11.3% YTD
Relative to AstraZeneca and GSK, Hikma has been a laggard with prices chopping sideways within a long-term wedge pattern (see chart below).
That said, recent price action saw the shares print a large bullish reversal pattern following a market-beating trading statement…
Hikma reported a 30% increase in profit, reaching $367 million last year, with revenue hitting $2.875 billion, up by 14% from the previous year.
The core business saw operating profit up by 19%, mainly due to better profitability in both branded and generic segments. Generics experienced strong growth, with revenue up by 39% and core operating profit up by 86%. However, the company expects profits to be slightly lower in 2024 compared to last year.
We are starting to see sector laggards like Hikma picking up momentum as the front runners, AZN and GSK move towards resistance. This indicates that the FTSE’s Pharma rally may be entering into the final phases.
HIK Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
AstraZeneca (AZN): +14.5% YTD
AstraZeneca’s share price jumped higher following the release of a market-beating set of results…
In the first quarter of 2024, AstraZeneca performed exceptionally well, surpassing analysts’ expectations with a 19% growth in revenue.
This impressive growth was primarily driven by increased sales of its cancer drugs. The pharma giant reported a revenue of $12.7 billion, significantly outperforming consensus estimates, which had projected $11.9 billion.
AstraZeneca also reiterated its guidance for the current year, expecting double-digit growth in both sales and earnings.
On the price chart, the shares have now moved into a key area of resistance which represent the April 2023 all-time highs. Momentum traders will be watching closely for a break and close above this resistance as it could trigger AstraZeneca’s next trend leg higher.
AZN Daily Candle Chart
Past performance is not a reliable indicator of future results
GlaxoSmithKline (GSK): +21.1% YTD
Like AstraZeneca, GSK's share price has been buoyed by a strong set of first-quarter results…
GSK’s recent trading statement showed improvements across various metrics, with revenue increasing by 10% to £7.4 billion and underlying operating profit rising by 27% to £2.4 billion, driven by robust growth in Vaccines and Speciality medicines.
GSK's momentum from last year has continued into 2024, driven by strong financial performance and supported by excellence in research & development, which resulted in four major product approvals last year.
Vaccines have emerged as a key growth driver, particularly with products like Shingrix and the recently approved RSV vaccine, Arexvy. The company's focus on HIV treatments and the shift towards long-acting innovation therapies has also contributed to growth in this segment.
On the price chart, GSK is showing strong upwards momentum with the shares breaking above swing resistance at the start of this month. However, the July 2022 cluster of swing highs should provide some resistance in the coming weeks.
GSK Daily Candle Chart
Past performance is not a reliable indicator of future results
Hikma Pharmaceuticals (HIK): +11.3% YTD
Relative to AstraZeneca and GSK, Hikma has been a laggard with prices chopping sideways within a long-term wedge pattern (see chart below).
That said, recent price action saw the shares print a large bullish reversal pattern following a market-beating trading statement…
Hikma reported a 30% increase in profit, reaching $367 million last year, with revenue hitting $2.875 billion, up by 14% from the previous year.
The core business saw operating profit up by 19%, mainly due to better profitability in both branded and generic segments. Generics experienced strong growth, with revenue up by 39% and core operating profit up by 86%. However, the company expects profits to be slightly lower in 2024 compared to last year.
We are starting to see sector laggards like Hikma picking up momentum as the front runners, AZN and GSK move towards resistance. This indicates that the FTSE’s Pharma rally may be entering into the final phases.
HIK Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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