Will these FTSE-listed stocks be among the top performers during the next bull run? These five Fools are confident!
AstraZeneca
What it does: AstraZeneca is a global biopharmaceutical company focused on oncology, rare diseases, cardiovascular, and other areas.
Written by Ben McPoland. AstraZeneca (LSE: AZN) is the largest company in the world London Stock Exchange with a market capitalization of £191bn. Whenever a new bull market takes off, I think the size of a pharma firm can help drive a bit of it.
The company aims to grow its revenue to $80bn between now and 2030. That would represent a 75% increase, which would be impressive for an already large business. It also invests money “disruptive innovations that will shape the future of medicine and drive long-term growth“.
As part of this, it recently acquired biotech Fusion Pharmaceuticals for up to $2.4bn, and Gracell Biotechnologies, the inventor of CAR-T cell therapy. It has also licensed an experimental pill from China's Eccogene to try to tap into the growing anti-obesity drug market.
Investors often find out more about new growth stories like this during bull markets.
That said, litigation is an ever-present risk in the industry, as are patent expirations, regulatory changes, and the inevitable disappointment of a clinical trial. However, I think AstraZeneca has the potential to continue to do well in the UK market in the long term.
Ben McPoland is a shareholder in AstraZeneca.
Burberry
What it does: Burberry is a leading British brand with 229 stores worldwide.
Written by Andrew Mackie. One sector that I fully expect to be at the forefront of big gains in the next bull market is luxury retail. But at the moment, the industry is suffering from many angles. Burberry (LSE:BRBY) has been its worst performer. Its share price has fallen more than 70% in just 15 months.
Its strategy to position itself as a brand of Modern British Luxury has yet to materialize. Despite saying in a recent trading update that its strategy will not change, I fully expect that the new CEO will move quickly from the decisions made by his predecessor.
The rate of decline in the stock price surprised me. But a company that has been around for as long as Burberry, doesn't always get everything right.
The customer base of the luxury market continues to grow across generations and geographies. I fully expect that it will provide growth and stability in the future. I view share price weakness as an opportunity. Indeed, the more it falls, the more stocks I intend to buy.
Andrew Mackie is a Burberry shareholder.
ITV
What it does: ITV is a television network owner and creator of TV content
Written by Alan Oscroft. Investors have been moving away from big tech stocks, inflation is slowing, and central banks look set to cut interest rates by the day.
To me that means one thing. Investors should, with a little luck, bounce back into some of the stocks they've avoided over the past few years. And I think ITV (LSE: ITV) could be one of them.
ITV's share price has been rising this year, but is still at its lowest level since before the 2020 crash. And I just don't think its rating reflects its power.
Competition should be the biggest risk, and I fear that investor caution may moderate the share price for a while. And at 14 times valuation, the shares don't look too cheap.
But that could drop to less than 10 by 2026 forecasts. And higher cash flow should keep dividends growing, from 6% on the cards in 2024.
Alan Oscroft has no position at ITV.
Oxford Biomedica
What it does: A gene and cell company focused on the development of gene-based medicines.
Written by Mark David Hartley. Oxford Biomedica (LSE: OXB) is a world-class leader in cell and gene therapy, serving the pharmaceutical and biotechnology industries. It specializes in developing treatments and cures for chronic and deadly viruses such as HIV.
Despite its impressive development, it is not yet profitable. Its results for FY 2023 revealed a loss of £1.63 per share, with a net loss of £157m and revenue down 36%. Like many young technology companies, it has been spending heavily on R&D, leading to losses. Whether that gamble pays off remains to be seen.
Although the share price is down 22% in 12 months, it has improved recently, rising 51% in Q2 this year.
Based on future cash flow estimates, some analysts consider it to be 70% undervalued and believe the company will be profitable by 2026. With the growing need for medical advances, I agree and think it will take off in the next few years.
Mark Hartley is a shareholder in Oxford Biomedica
Scottish Mortgage Investment Trust
What it does: Scottish Mortgage is a Baillie Gifford fund that aims to “owns the world's fastest growing public and private companies”.
[fool_chart_ticker =LSE:SMT]Written by Charlie Keough. One stock I see making the next buck in a bull market Scottish Mortgage Investment Trust (LSE: SMT).
It owns some of the most exciting growing companies in the world, such as Elon Musk's SpaceX. These companies suffer in high-interest-rate environments, so trust has been strained over the past few years.
But with downsizing around the corner, investor sentiment should change significantly for these types of companies. Falling rates are good for disruptive businesses who own Scottish Mortgage because it means lower borrowing costs.
The risk with investing in a trust is that its share price can be volatile, giving its weight to growth stocks. In addition, about a quarter of its assets are private companies. Pinpointing the value of these businesses can be difficult.
However, we saw what the stock could do when it rose more than 100% in 2020. And it's down 41.9% from its peak in 2021. Therefore, we are currently trading at a 9% discount to its net assets. value.
Of course, past performance is not an indicator of future returns. But I remain optimistic that, despite rising 10.6% year to date, we could see Scottish Mortgages rise significantly in the coming months and years.
Charlie Keough is a shareholder in Scottish Mortgage.
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