Should I Buy AstraZeneca plc (ADR) (AZN) for My ISA: GlaxoSmithKline plc (ADR) (GSK), Amgen, Inc. (AMGN)

Management has also been working hard to restructure the business and make it more competitive. A full strategic update is due shortly, and if the market receives it favourably, that could give the share price a fillip.

Despite worries over its product pipeline, AstraZeneca plc (ADR) (NYSE:AZN) still has 71 projects in the clinical phase of development, with another 13 either approved, launched or filed. It also has a joint collaboration with Amgen, Inc. (NASDAQ:AMGN) the world’s largest biotechnology company, to sell five pipeline products.

Think income
AstraZeneca’s dividend yield may thrash cash, but naturally, the yield is riskier. The good news is that the share’s income is covered 2.3 times by earnings, so management has little need to tamper.

The group’s healthy operating margin of 29% provides further defensive solidity.

Earnings per share are set to fall 23% during the current calendar year, although I’m convinced that poor outlook is reflected in the share price.

AstraZeneca currently trades at just seven times earnings, roughly half the 15 times earnings thought to reflect a fair-valued stock. The price could take several years to bounce back, but as a reward for your patience, that 6% annual income is yours to keep.

If you like AstraZeneca plc (ADR) (NYSE:AZN), you’re in good company.

The article Should I Buy AstraZeneca for My ISA originally appeared on Fool.com and is written by Harvey Jones.

Harvey Jones owns shares of GlaxoSmithKline. The Motley Fool recommends GlaxoSmithKline.

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