Wall Street loves coming up with cute little phrases, whether that be “FANG” or the more recent Magnificent 7. However, Thornburg portfolio manager Nicholas Anderson would like investors to be familiar with a new concept: targeting the best Fantastic 5 stocks for potentially blistering upside.
Focused on European mega-capitalization plays, these five enterprises have delivered market-beating performance recently. We’re talking about companies with a market value exceeding $200 billion. Yet even with this tremendous weight, these select firms have nimbly risen above the muck. Even better, many investors still aren’t giving these ideas the time of day.
That could spell opportunity for the astute investor looking for the next arena in which to grow their funds. By moving in now, people can building a position before the crowd wakes up. With that in mind, below are (possibly) the best Fantastic 5 stocks to consider.
AstraZeneca (AZN)
One of the world’s biggest biopharmaceutical firms, AstraZeneca (NASDAQ:AZN) focuses on the discovery, development, manufacture and commercialization of prescription medicines. Fundamentally, AstraZeneca represents one of the best Fantastic 5 stocks thanks to the perpetually relevant narrative. Basically, wealth accrual means little without health. Therefore, the sector should command perpetual investment dollars. And AstraZeneca features an enviable product portfolio along with advanced acumen.
Even better, the performance of AZN speaks for itself. Since the second half of April this year, shares have been flying. In turn, analysts rate AstraZeneca a unanimous strong buy with an $85.80 price target. Further, the high-side target lands at $97.
During the trailing 12 months (TTM), the company posted net income of $6.33 billion, translating to earnings per share of $2.03. Revenue during the cycle reached $47.61 billion. For fiscal 2024, covering experts are looking for EPS expansion of 11% to hit $4.03. On the top line, sales may rise to $52.01 billion, implying 13.5% upside.
It has the key ingredients to rank among the best Fantastic 5 stocks.
ASML Holding (ASML)
Based in the Netherlands, ASML Holding (NASDAQ:ASML) develops, produces, markets, sells and services advanced semiconductor equipment systems for chipmakers. Most notably, the company focuses on specialty solutions, including lithography, metrology and inspection systems. Without ASML, tech firms would have difficulty producing the intricate silicon wafers that undergird so many of our innovations. Thus, it’s one of the best Fantastic 5 stocks to buy.
Largely, the results speaking for themselves. Between the second quarter of last year to Q1 2024, ASML posted earnings per share of around $4.86. This print resulted in an average earnings surprise of 8.28%. While it’s not the most remarkable performance out there, here’s the thing: ASML beat its bottom-line targets all four times.
During the TTM period, the tech giant posted net income of $7.11 billion, translating to EPS of $19.45. Revenue in the cycle hit $26.1 billion. For fiscal 2024, covering experts are looking for ESP of $20.64, which admittedly is a 2.7% decline from last year. Also, sales of $29.99 billion represents a modest 2% growth.
However, EPS and revenue may jump to $32.29 and $39.69 billion, respectively, in fiscal 2025. Thus, patience may pay off.
Novo Nordisk (NVO)
Falling under the biotechnology sector, Novo Nordisk (NYSE:NVO) easily ranks among the best Fantastic 5 stocks to buy. Per its public profile, the Danish enterprise operates in two segments: Diabetes and Obesity Care and Rare Diseases. Both units are critical for the broader healthcare industry. However, it must be said that the former category has seemingly attracted all the attention.
Novo Nordisk has been riding the wave of success of its weight-loss drugs, particularly Wegovy. Even better, the company enjoys a burgeoning addressable market. For example, in the U.S., the rising obesity rate has become a public health crisis. What’s more, this trend didn’t just materialize yesterday. No, it was decades in the making and it may take decades to resolve.
Cynically, that may mean sustained upside for NVO stock. During the TTM period, Novo Nordisk posted net income of $89.28 billion, translating to EPS of $2.88. Revenue hit $244.24 billion. For fiscal 2024, experts anticipate EPS of $3.47 on sales of $42.3 billion. We’re talking earnings growth of 30.5% and sales growth of nearly 28%.
NVO is easily one of the best Fantastic 5 stocks to add to your portfolio.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
