The FTSE 100 has a wealth of interesting and attractive investment opportunities. I have my favourite, but what does ChatGPT think? Well, I asked it what it thought the best stock was on the index… it’s response wasn’t overly surprising.
If one had to pick a standout today, AstraZeneca (LSE:AZN) looks the strongest blend of resilience and long-term growth. Its expanding oncology pipeline, rising revenues from next-generation therapies, and disciplined capital allocation give it durability and upside. It’s not flashy, but it’s dependable, innovative, and well-positioned for the next decade.
Why doesn’t this surprise me? Well, it’s an obvious choice. It’s the largest and most prominent company on the index. It’s operating, as the AI highlights, in a field with strong secular trends and it’s something of a national champion — that often counts for something.
Of course, the notion of the ‘best’ stock is subjective. Quantitive models and stock screens can tell us which stocks are best, but that’s always dependent on how the model ranks companies. And stock picking requires a qualitative element too.
From a quantitive perspective, I do believe AstraZeneca is a strong investment opportunity. It trades around 19 times forward earnings, with this figure due to fall to 17.3 times in 2026, according to the current forecasts.
The forward price-to-earnings-to-growth (PEG) ratio now sits around 1.47 after the stock’s recent rally. This might sound expensive, but it’s around a 15% discount to the sector average.
And while it’s sitting on £24bn in net debt, this seems manageable for a company with a market cap now exceeding £210bn. The dividend yield at 1.7% is worth noting too.
The thing is, AstraZeneca looked a more attractive opportunity on paper just two months ago. Back then the stock was around 20% cheaper, and the yield proportionately large — dividend yields and share prices are inversely correlated.
My favourite FTSE 100 stock
I’m a big fan of AstraZeneca and it’s a large part of my portfolio, but I’m less inclined to buy more today after the rally.
One stock that stands out to me in the current market is Hikma (LSE:HIK). The stock trades at just 9.1 times forward earnings, with this figure expected to fall to around 8.3 times in 2026. The dividend yield at 4% is also a big valuation plus.
It’s not all great though. The company recently reduced its medium-term margin outlook and the shares fell 11%. It’s now facing relegation to the FTSE 250.
Despite this, I’m still a big fan of this generics manufacturer. And importantly, sentiment can turn quickly in this part of the market. As visibility improves and margins stabilise, I wouldn’t be surprised to see the valuation drift back toward its historical average.
There’s also plenty of opportunities in the weight-loss drugs market as patents expire. For investors with a medium-term horizon, today’s weakness could be more of an opening than a red flag. It’s worth considering.
