AstraZeneca Just Missed Estimates, but Here's Why Bulls Aren't Worried Yet

Parnassus Investments, an investment management firm, released its “Parnassus Value Equity Fund” second-quarter 2025 investor letter. The fund focuses on owning a concentrated portfolio of U.S. large-cap stocks. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is AstraZeneca PLC (NASDAQ:AZN). AstraZeneca PLC (NASDAQ:AZN), a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. Over the past month, AstraZeneca PLC (NASDAQ:AZN) rose 4.01%, and appreciated 12.91% over the last 12 months. On July 29, 2025, AstraZeneca PLC (NASDAQ: AZN) shares closed at $73.98, with a market capitalization of $229.372 billion.

Here is what they have to say about AstraZeneca PLC (NASDAQ:AZN) in their investor letter:

"AstraZeneca PLC (NASDAQ:AZN), an Anglo-Swedish drugmaker, missed firstquarter revenue estimates as sales of key oncology drugs missed forecasts. But the company maintained its 2025 profit outlook, calling the impact of U.S. tariffs manageable."

AstraZeneca PLC (NASDAQ:AZN) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 56 hedge fund portfolios held positions in AstraZeneca PLC (NASDAQ:AZN) at the end of the first quarter of 2025, up from 55 in the previous quarter. AstraZeneca PLC (NASDAQ:AZN) exceeded earnings expectations in Q1 2025, reporting EPS of $1.30 versus the $1.10 consensus estimate. While we acknowledge the potential of AZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

AstraZeneca PLC (NASDAQ:AZN) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 56 hedge fund portfolios held positions in AstraZeneca PLC (NASDAQ:AZN) at the end of the first quarter of 2025, up from 55 in the previous quarter. AstraZeneca PLC (NASDAQ:AZN) exceeded earnings expectations in Q1 2025, reporting EPS of $1.30 versus the $1.10 consensus estimate. While we acknowledge the risk and potential of AZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered AstraZeneca PLC (NASDAQ:AZN) and Goldman Sachs’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.