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        <title>Hikma Pharmaceuticals PLC (LSE:HIK) Share Price, History, &amp; News | The Motley Fool UK</title>
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        <description>The Motley Fool UK: Share Tips, Investing and Stock Market News</description>
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	<title>Hikma Pharmaceuticals PLC (LSE:HIK) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-hik/</link>
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            <item>
                                <title>This tax season, consider FTSE 100 dividend stocks to buy for a fresh ISA</title>
                <link>https://www.fool.co.uk/2026/04/04/this-tax-season-consider-ftse-100-dividend-stocks-to-buy-for-a-fresh-isa/</link>
                                <pubDate>Sat, 04 Apr 2026 05:46:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1669336</guid>
                                    <description><![CDATA[<p>When a new tax season rolls around, smart ISA investors start hunting for sustainable dividend stocks to buy. Mark Hartley thinks he’s found one with potential.</p>
<p>The post <a href="https://www.fool.co.uk/2026/04/04/this-tax-season-consider-ftse-100-dividend-stocks-to-buy-for-a-fresh-isa/">This tax season, consider FTSE 100 dividend stocks to buy for a fresh ISA</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>When eyeing up dividend stocks to buy for a new ISA, it&#8217;s not just about grabbing the highest yields. The dividend could be a trap if not backed by solid profits, strong cash flow and a sensible balance sheet.</p>



<p>When relying on dividends for long-term income, you need to understand the whole picture &#8212; not just one headline number.</p>



<h2 class="wp-block-heading" id="h-what-to-look-for-beyond-yield">What to look for beyond yield</h2>



<p>With income shares, earnings coverage is key. You want a company that pays out only a portion of its profits, leaving room to reinvest in the business when needed.</p>



<p>Cash coverage matters too: actual cash flow should comfortably cover dividends, not borrowing or selling assets. That&#8217;s why debt is also critical &#8212; a highly leveraged company has less room to manoeuvre when interest rates rise or profits dip.</p>



<p>Payment history is the final check. A long, consistent record of paying and ideally growing dividends tells you management takes income investors seriously.</p>



<p>Plenty of UK names tick many of these boxes, albeit with caveats. <strong>LondonMetric Property</strong> benefits from regulated income and has a solid track record, but coverage is thin. <strong>British American Tobacco</strong>’s payouts are supported by strong earnings, but cash flow cover is tighter than ideal. And <strong>Diageo</strong>, while historically a reliable dividend grower, has recently suffered serious share price losses.</p>



<p>But among them, one dividend stock stands out as particularly appealing to me right now.</p>



<h2 class="wp-block-heading" id="h-a-sustainable-dividend-payer">A sustainable dividend payer</h2>



<p>From a coverage point of view, I find <strong>Hikma Pharmaceuticals </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE: HIK</a>) particularly appealing and worth further research. The group has just reported another year of double‑digit revenue growth, with 2024 sales up 10% and profits rising sharply. It recently increased its total <a href="https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/" target="_blank" rel="noreferrer noopener">dividend</a> to 84c per share, a further 5% raise after last year’s 11% boost – that’s confidence in future cash generation.</p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>On today’s numbers, the shares offer a dividend <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">yield</a> of about 5.1%, with a payout ratio around 45%. Cash flow covers the dividend roughly 3.3 times, and the company has now clocked up 21 years of uninterrupted payments. Those are exactly the kind of characteristics I look for with payouts that are sustainable, not stretched.</p>



<p>Under the surface, Hikma has a diversified business across injectables, branded medicines and generics, with strong positions in North America and the MENA region. Demand for affordable treatments and hospital drugs tends to be fairly resilient through the economic cycle.</p>



<p>There are risks, of course. Drug pricing pressure, regulatory setbacks or margin squeezes in its injectables division could all hit profits and sentiment. And like any global pharma name, it’s exposed to currency conversion losses and geopolitical risk.</p>



<h2 class="wp-block-heading" id="h-why-this-matters-for-a-fresh-isa">Why this matters for a fresh ISA</h2>



<p>For passive income investors, holding reliable dividend payers inside an ISA can be a powerful combo: you get regular cash coming in, and those dividends are shielded from UK tax.</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<p>That income can be reinvested to build your pot faster while you are still working, then switched to spending money later on.</p>



<p>In my view, considering solid names like Hikma with higher-yielders gives an ISA a stronger foundation – one that still delivers income while reducing volatility.</p>
<p>The post <a href="https://www.fool.co.uk/2026/04/04/this-tax-season-consider-ftse-100-dividend-stocks-to-buy-for-a-fresh-isa/">This tax season, consider FTSE 100 dividend stocks to buy for a fresh ISA</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>3 epic shares potentially undervalued by 44%</title>
                <link>https://www.fool.co.uk/2026/04/01/3-epic-shares-potentially-undervalued-by-44/</link>
                                <pubDate>Wed, 01 Apr 2026 06:16:00 +0000</pubDate>
                <dc:creator><![CDATA[James Beard]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1666809</guid>
                                    <description><![CDATA[<p>James Beard runs the rule over three incredible shares that analysts reckon are worth 44% more than they're valued  today (31 March).</p>
<p>The post <a href="https://www.fool.co.uk/2026/04/01/3-epic-shares-potentially-undervalued-by-44/">3 epic shares potentially undervalued by 44%</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>Finding undervalued shares is the key to successful investing. But what does this mean in practice? Let’s explore this further and take a look at three potentially cheap stocks.</p>



<h2 class="wp-block-heading" id="h-intrinsic-value">Intrinsic value</h2>



<p>Billionaire investor Warren Buffett likes to build stakes in companies whose share prices don’t reflect the underlying (he calls it the “<em>intrinsic</em>”) value of their businesses. This involves making an assessment of the expected future operating cash flows and then adjusting these to reflect the fact that £1 in a year’s time is worth less than it is today.</p>



<p>This is a common approach used by analysts and helps them come up with price targets for the stocks they cover.</p>



<h2 class="wp-block-heading" id="h-a-banker">A banker?</h2>



<p>Brokers&#8217; consensus is that <strong>Barclays</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-barc/">LSE:BARC</a>) is 42% undervalued at the moment (31 March). However, their wide range of estimates (450p-590p) is proof that valuing companies is more of an art than a science. Having said that, even the most pessimistic believes the bank’s shares are 18% under-priced.</p>


<div class="tmf-chart-singleseries" data-title="Barclays Plc Price" data-ticker="LSE:BARC" data-range="5y" data-start-date="2021-04-01" data-end-date="" data-comparison-value=""></div>



<p>Why? Well, it appears to be on a bit of a roll at the moment. Its 2025 earnings were 13% higher than in 2024. It’s now aiming for a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/">return on tangible equity</a> of at least 14% in 2028. It was 11.3% in 2025. Also, via dividends and <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buybacks</a>, the bank hopes to return more than £15bn to shareholders over the next three years.</p>



<p>Threats include an economic slowdown, particularly in the UK and US. Also, falling interest rates could affect its margin.</p>



<p>But with a price-to-book ratio of less than one and the second lowest price-to-earnings (P/E) ratio of the <strong>FTSE 100</strong>’s five banks, I think Barclays looks pretty cheap at the moment and could be considered by value investors.</p>



<h2 class="wp-block-heading" id="h-uncertain-times">Uncertain times</h2>



<p><strong>Hikma Pharmaceuticals</strong>&#8216; (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE:HIK</a>) shares tanked in February after the drugs maker withdrew its medium-term guidance and downgraded its earnings forecast for 2026.</p>



<p>The group’s injectables business is currently struggling. It’s facing increased competition for some of its higher-value products. And tariffs on its imports into the US have been an issue.</p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="2021-04-01" data-end-date="" data-comparison-value=""></div>



<p>However, I&#8217;m confident that its business will recover. It’s investing heavily and has 118 products in its pipeline. What’s more, the stock’s P/E ratio’s now at a five-year low. Also, it offers an above-average dividend (no guarantees). Further, analysts reckon the stock’s 48% undervalued.</p>



<p>But this is a turnaround story. Its share price is likely to be a bit of a slow burner. However, I still think it’s worth considering.</p>



<h2 class="wp-block-heading" id="h-cheers">Cheers!</h2>



<p><strong>Diageo</strong>’s (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-dge/">LSE:DGE</a>) also seeking to recapture former glories. It’s battling industry-wide trends of people drinking less and a move towards more expensive labels.</p>


<div class="tmf-chart-singleseries" data-title="Diageo Plc Price" data-ticker="LSE:DGE" data-range="5y" data-start-date="2021-04-01" data-end-date="" data-comparison-value=""></div>



<p>But with a reputation for cutting out the fat and streamlining businesses, I reckon the group’s new boss, Sir Dave Lewis, is just what’s needed. And he has some solid foundations on which to build.</p>



<p>The group owns some of the biggest brands in the business, including <em>Guinness</em> and <em>Smirnoff</em>. It also covers all price points in its key markets. Despite its troubles, it remains the world’s number-one for spirits.</p>



<p>Analysts have a target that’s 43% higher than today’s share price. Remarkably, Diageo’s shares are now changing hands close to a 14-year low. On balance, I think it remains one for patient investors to consider.</p>
<p>The post <a href="https://www.fool.co.uk/2026/04/01/3-epic-shares-potentially-undervalued-by-44/">3 epic shares potentially undervalued by 44%</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Income stocks: aim to earn £5,000 while sleeping in 2026</title>
                <link>https://www.fool.co.uk/2026/03/14/income-stocks-aim-to-earn-5000-while-sleeping-in-2026/</link>
                                <pubDate>Sat, 14 Mar 2026 07:31:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1659636</guid>
                                    <description><![CDATA[<p>Who doesn’t love the idea of waking up to find cash magically appearing in their bank account? Here’s how dividend shares can unlock a passive income.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/14/income-stocks-aim-to-earn-5000-while-sleeping-in-2026/">Income stocks: aim to earn £5,000 while sleeping in 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>With the right income stocks, investors can instantly start earning money while being fast asleep. And for those with a substantial £100,000 in cash savings, investing this money into a diversified portfolio of 5%-yielding dividend shares can immediately unlock a £5,000 passive income overnight in 2026.</p>



<p>Yet even modest investors can enjoy similarly-sized payouts over the long run.</p>



<h2 class="wp-block-heading" id="h-using-dividends-to-earn-a-second-income">Using dividends to earn a second income</h2>



<p>Let’s say someone has a more modest £500 to spare each month for investments. How long will it take to transform this capital into a £5,000 second income stream?</p>



<p>By drip feeding £500 into a low-cost <strong>FTSE 100</strong> <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/tracker-funds-and-index-trackers/">tracker fund</a>, investors can expect to earn close to around 8% a year over the long run. And at this rate of return, a £100,000 nest egg could be built in roughly 11 years. At this point, a portfolio could be reallocated to high-quality, 5%-yielding income stocks to enjoy a £5,000 passive income stream.</p>



<p>Of course, stock-picking&#8217;s far from an easy task. Even when choosing between typically more mature dividend-paying shares, investing in the wrong companies could actually destroy wealth rather than create it.</p>



<p>So what do investors need to look out for?</p>



<h2 class="wp-block-heading" id="h-inspecting-5-yields">Inspecting 5% yields</h2>



<p>When yields start stretching beyond the stock market’s typical 4% average, it tends to be a warning of increased risk. The task for stock pickers is to determine whether the risk&#8217;s worth the potential reward.</p>



<p>Looking across the <strong>FTSE 100</strong> today, one income stock that stands out is <strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE:HIK</a>). Despite having a superb track record of hiking shareholder payouts every year for the last 14 years, the recent tumble in its share price means the yield is now at its highest since the group’s IPO two decades ago.</p>



<p>The story starts back in November, when the firm announced a one-year delay for its new manufacturing plant in Bedford, Ohio. Given that this facility served as a crucial capacity driver for its high-growth Injectables division, performance concerns started creeping in.</p>



<p>Skip ahead to last month, and those concerns were realised. While Hikma’s full-year results for 2025 largely met expectations, weaker guidance, including the complete withdrawal of the previous medium-term target, understandably spooked the market. That resulted in a <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">painful sell-off</a> that pushed the yield to its current 5.2% level.</p>



<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-a-buying-opportunity-in-disguise">A buying opportunity in disguise?</h2>



<p>Despite the short-term challenges, the long-term outlook for Hikma continues to look rather promising. Its vast pipeline of generics perfectly positions the business to capitalise on the incoming patent cliff of the wider pharmaceutical sector.</p>



<p>At the same time, the recent pressure on profit margins is expected to steadily reverse once its new plant comes online in 2027. In the meantime, the group’s $185m of shareholder payouts remains comfortably covered by $741m of operating profits.</p>



<p>Of course, that doesn’t guarantee Hikma to be a winning investment. Changes in US drug price regulation could throw a disruptive spanner in the works. And any further delays to its Bedford facility could see margin pressures dragged on for longer that could limit dividend growth moving forward.</p>



<p>Nevertheless, with investors punishing Hikma shares quite brutally, this stock now looks like an interesting potential income opportunity, despite the risks.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/14/income-stocks-aim-to-earn-5000-while-sleeping-in-2026/">Income stocks: aim to earn £5,000 while sleeping in 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>No savings at 40? Here are 5 cheap shares to consider buying in February</title>
                <link>https://www.fool.co.uk/2026/02/01/no-savings-at-40-here-are-5-cheap-shares-to-consider-buying-in-february/</link>
                                <pubDate>Sun, 01 Feb 2026 08:47:00 +0000</pubDate>
                <dc:creator><![CDATA[Harvey Jones]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1642391</guid>
                                    <description><![CDATA[<p>Harvey Jones picks out some incredibly cheap shares on the FTSE 100, that he thinks could have huge recovery potential. He also highlights some risks.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/01/no-savings-at-40-here-are-5-cheap-shares-to-consider-buying-in-february/">No savings at 40? Here are 5 cheap shares to consider buying in February</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The <strong>FTSE 100</strong> has had a strong year, up around 20% with dividends on top, but there are still plenty of cheap shares to be had. Bargain hunters shouldn’t feel they’ve missed their moment. So what’s out there right now?</p>



<p>Using the price-to-earnings (P/E) ratio as a starting point, I&#8217;ll start by highlighting <strong>JD Sports Fashion</strong>, which has a P/E of just 6.6, budget carrier <strong>easyJet</strong> (7.2) and British Airways owner <strong>International Consolidated Airlines Group</strong>, or IAG (8.7).</p>



<p>I’ve highlighted all three several times recently, so I&#8217;m flagging five others that could be worth a look. As always, the decision depends on the individual investor, including their attitude to risk, time horizon and which shares they already hold.</p>



<h2 class="wp-block-heading" id="h-ftse-100-bargain-buys">FTSE 100 bargain buys?</h2>



<p>I should also warn that a cheap share isn’t necessarily <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/how-to-be-a-good-investor/">good value</a>. Often there’s a very good reason why it looks inexpensive.</p>



<p>If I had no savings at 40, I’d be keen to buy a spread of bargain shares to help power my wealth through both <a href="https://www.fool.co.uk/personal-finance/share-dealing/guides/should-i-buy-growth-or-income-shares/">dividends and growth</a> over the 25 years or so to retirement. That’s enough time to give beaten-up stocks a chance to fight back to form.</p>



<p>One possible recovery play is&nbsp;<strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE: HIK</a>). Its shares have plunged by a third in the past year and its market value has dropped below £3.5bn, so it could even slip into the <strong>FTSE 250</strong>.</p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Hikma specialises in generic medicines, cheaper versions of drugs whose patents have expired, and could benefit as weight-loss drugs come off patent, particularly in the Middle East and China where demand is strong.</p>



<h2 class="wp-block-heading" id="h-hikma-s-growth-forecasts-are-jaw-dropping">Hikma&#8217;s growth forecasts are jaw-dropping</h2>



<p>The shares trade on a lowly P/E of just 9.35, while the trailing dividend yield has edged above 4%. However, the business is far from firing on all cylinders. On 6 November, Hikma trimmed full-year revenue and profit guidance. One month after that warning, its CEO stepped down after just two years in the role.</p>



<p>Here’s the eye-catching bit. The one-year consensus broker share price target is 2,216p. If correct, that would see the shares rocket 45% from today’s 1,529p. Some of those broker forecasts may pre-date recent setbacks, though, so investors should treat them with caution.</p>



<p>Hikma neatly illustrates the risks and rewards of buying cheap shares. There&#8217;s a big opportunity here, but no guarantee Hikma will seize it. Worth considering, but with a <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term view</a>. Don&#8217;t ever buy a stock expecting to make a killing in a year.</p>



<p>Here are four more bargains to consider. Long-term income seekers who don’t mind holding tobacco stocks might look at&nbsp;<strong>Imperial Brands</strong>, trading on a P/E of 9.7 and yielding 5.25%.&nbsp;<strong>BT Group</strong>&nbsp;and oil giant&nbsp;<strong>Shell</strong>&nbsp;both look reasonably priced too, with identical P/Es of 10.2.</p>



<p>Personally, I’ve gone big on distribution specialist&nbsp;<strong>Bunzl</strong>, which trades on a P/E of 10.5. I’d wanted to buy Bunzl for yonks, and when the price plunged 40% over the past year, I grabbed my chance. Bunzl may take a few years to return to form, but still looks like a solid operation to me.</p>



<p>There are plenty more recovery opportunities across the FTSE 100. But investors do need to do some homework to work out which fallen giants are best placed to bounce back, and which may stay cheap for all the wrong reasons.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/01/no-savings-at-40-here-are-5-cheap-shares-to-consider-buying-in-february/">No savings at 40? Here are 5 cheap shares to consider buying in February</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>This FTSE 100 stock could be poised for a whopping 40% growth in 2026, or more</title>
                <link>https://www.fool.co.uk/2026/01/31/this-ftse-100-stock-could-be-poised-for-a-whopping-40-growth-in-2026-or-more/</link>
                                <pubDate>Sat, 31 Jan 2026 08:20:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1639003</guid>
                                    <description><![CDATA[<p>This potential growth stock has one of the most bullish share price outlooks among analysts out of the entire FTSE 100 right now.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/31/this-ftse-100-stock-could-be-poised-for-a-whopping-40-growth-in-2026-or-more/">This FTSE 100 stock could be poised for a whopping 40% growth in 2026, or more</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE: HIK</a>) was far from the best <strong>FTSE 100</strong> performer in 2025. Over the past 12 months, the price has fallen more than 25%, and over five years, we&#8217;re looking at a 35% decline. But if we turn to forecasts for 2026, wow, what a difference a year could make.</p>



<p>The current analyst consensus indicates a share price target 40% ahead of where it is at the time of writing. And the top of the range even raises the possibility of a 60% profit! These are the kind of gains we usually associate more with smaller-cap stocks than the giants in the top London index.</p>



<p>So are City folk living in dreamland, or might their optimism be justified? Let&#8217;s take a look.</p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-what-it-does">What it does</h2>



<p>Hikma makes a range of generic medicines, which are essentially copycat drugs produced after the original developers&#8217; patents expire. Hikma&#8217;s market is widely international. And it covers branded drugs, oral medications, and other products. </p>



<p>But injectables contribute most to Hikma&#8217;s revenue, accounting for $683m in the first half of the current year (41% of the total). These are widely used in the US, with Hikma one of the biggest three suppliers.</p>



<p>Demand looks likely to get a boost from weight loss drugs. The active stuff in Ozempic and Wegovy will soon be hitting expiry dates in a number of countries &#8212; China, Canada, UAE etc. And demand in the Middle East is especially high.</p>



<h2 class="wp-block-heading" id="h-what-next">What next</h2>



<p>All this leads to some impressive <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/broker-forecasts/" target="_blank" rel="noreferrer noopener">forecasts</a> for the next few years. Analysts expect to see earnings per share (EPS) climbing over 50% between 2024 and 2027. If they&#8217;re right, that could put Hikma shares on a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio by then of only around 8.5. That&#8217;s way below the long-term FTSE 100 average P/E of closer to 15.</p>



<p>Speaking of the FTSE 100, Hikma currently has the lowest market-cap in the whole index &#8212; and there are 10 bigger stocks leading the <strong>FTSE 250</strong> and vying to take its place. Unless something changes, Hikma might not be in the top index for much longer. It&#8217;s been in and out a few times already, and we&#8217;d expect tracker funds to sell if it exits again.</p>



<p>November&#8217;s trading update wasn&#8217;t exactly sparkling either. Everything was apparently going as expected in the second half. But the company only expects between 7% and 9% revenue growth for the full year. Things will have to crank up a bit if those analyst forecasts are to be achieved.</p>



<h2 class="wp-block-heading" id="h-buy-in-2026">Buy in 2026?</h2>



<p>So a couple of things could go against Hikma in the year ahead. With US international trade so uncertain these days, I&#8217;m also wary of investing in a company doing so much business there.</p>



<p>Still, those forecasts are tempting. And if the share price targets are close, Hikma has to be a growth stock to consider in 2026.</p>



<p></p>
<p>The post <a href="https://www.fool.co.uk/2026/01/31/this-ftse-100-stock-could-be-poised-for-a-whopping-40-growth-in-2026-or-more/">This FTSE 100 stock could be poised for a whopping 40% growth in 2026, or more</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 FTSE 100 stocks to consider for passive income in 2026</title>
                <link>https://www.fool.co.uk/2026/01/27/2-ftse-100-stocks-to-consider-for-passive-income-in-2026/</link>
                                <pubDate>Tue, 27 Jan 2026 16:16:00 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1639984</guid>
                                    <description><![CDATA[<p>Ben McPoland highlights a pair of dividend shares that rarely attract as much attention as other names from the FTSE 100 index. </p>
<p>The post <a href="https://www.fool.co.uk/2026/01/27/2-ftse-100-stocks-to-consider-for-passive-income-in-2026/">2 FTSE 100 stocks to consider for passive income in 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The <strong>FTSE 100</strong> has started 2026 in the same direction it has headed for five straight years &#8212; higher. Yet most Footsie stocks still offer a much higher dividend yield than your average <strong>S&amp;P 500</strong> company. </p>



<p>Here, I&#8217;ll spotlight two shares that are worth checking out for passive income. </p>



<h2 class="wp-block-heading" id="h-pharmaceuticals">Pharmaceuticals </h2>



<p>Let&#8217;s start with <strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE:HIK</a>), which makes generic drugs for markets across North America, Europe, the Middle East, and North Africa. These are medicines that contain the same active ingredients as a branded drug, but can be sold more cheaply because the original patent has expired.</p>



<p>As we can see below, the share price hasn&#8217;t performed well in recent years. However, this has pushed the forward-looking <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> to 4.1%. This is significantly higher than its five-year average.  </p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="2021-01-27" data-end-date="2026-01-27" data-comparison-value=""></div>



<p>I find this attractive because Hikma is solidly profitable and the payout is covered nearly three times over by forecast earnings. In theory, this leaves plenty of room for dividend increases moving forward. </p>



<p>One thing that could drive future revenue and earnings growth for the company is generic GLP-1 weight-loss drugs. The patents for these will soon start expiring in many developing markets around the world. </p>



<p>According to Grand View Research, the global GLP-1 receptor agonist market is projected to reach more than $200bn by 2033, up from $70.1bn in 2025.</p>



<p>However, not every firm can copy these injections due to the technical complexity of the manufacturing process. Hikma, though, is already a global player in sterile injectables, so appears very well-positioned to pick up a fair slice of the action.  </p>



<p>It&#8217;s worth noting that the average analyst price target here is 2,216p, which is around 42% above the current price. While such targets (and dividends) are never assured, it&#8217;s a steep mismatch for a FTSE 100 stock.  </p>



<p>Finally, the stock is trading cheaply right now, with a forward <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings ratio</a> of just 8.9. </p>



<h2 class="wp-block-heading" id="h-insurance">Insurance </h2>



<p>Next up is car insurance giant <strong>Admiral</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-adm/">LSE:ADM</a>), whose share price has slumped 28% since August. On paper, this leaves the stock offering a tasty forward yield of 8%. </p>


<div class="tmf-chart-singleseries" data-title="Admiral Group Plc Price" data-ticker="LSE:ADM" data-range="5y" data-start-date="2021-01-27" data-end-date="2026-01-27" data-comparison-value=""></div>



<p>However, a stock rarely loses more than a quarter of its value in six months for no reason. And in Admiral&#8217;s case, it has been cutting the price of its insurance policies to stay competitive. </p>



<p>While that&#8217;s great for drivers, and should help it retain many of its 11m customers (myself included), it might mean a period of softer earnings growth. Car insurance is a very competitive market, after all, and switching costs are low.  </p>



<p>Meanwhile, Admiral is changing the way it funds its employee share scheme. This is likely to result in lower special dividends for a period, which casts a bit of doubt over the 8% forecast yield.  </p>



<p>However, the insurer&#8217;s normal dividend will still come from 65% of post-tax profits, with any surplus distributed on top. And Admiral&#8217;s competitive advantages, which are based on better data and technological capabilities than rivals, remain intact. </p>



<p>As such, I regard this as a top high-yield dividend stock to consider for passive income, despite some near-term uncertainty.   </p>
<p>The post <a href="https://www.fool.co.uk/2026/01/27/2-ftse-100-stocks-to-consider-for-passive-income-in-2026/">2 FTSE 100 stocks to consider for passive income in 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Down 33%, is there a once-in-a-decade opportunity in this FTSE 100 stock?</title>
                <link>https://www.fool.co.uk/2026/01/20/down-33-is-there-a-once-in-a-decade-opportunity-in-this-ftse-100-stock/</link>
                                <pubDate>Tue, 20 Jan 2026 11:50:57 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1636474</guid>
                                    <description><![CDATA[<p>This FTSE 100 firm has a potentially very large commercial opportunity emerging in the next couple of years. But does the UK stock offer any value?</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/20/down-33-is-there-a-once-in-a-decade-opportunity-in-this-ftse-100-stock/">Down 33%, is there a once-in-a-decade opportunity in this FTSE 100 stock?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE:HIK</a>) has been a very disappointing <strong>FTSE 100</strong> stock over multiple timeframes. It&#8217;s down 33% since February 2025 and nearly 39% off in five years.</p>



<p>Indeed, the share price is the same today as it was back in March 2014! So it&#8217;s ultimately gone nowhere for more than a decade.</p>



<p>However, there&#8217;s a potentially very lucrative opportunity coming over the hill for the pharmaceutical company. So could now be a once-in-a-decade opportunity to consider scooping up shares on the cheap? Let&#8217;s dig in.</p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="2021-01-20" data-end-date="2026-01-20" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-what-does-hikma-do">What does Hikma do?</h2>



<p>As a quick reminder, Hikma manufactures generic medicines. These are basically copycat drugs that can be produced once a <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-healthcare-stocks-in-the-uk/">pharma</a> company&#8217;s original patent expires.</p>



<p>One of Hikma&#8217;s divisions sells branded generics across 17 markets in the Middle East and North Africa, while Hikma&nbsp;Rx supplies oral, respiratory and other generic specialty products to the North American retail market.</p>



<p>However, its biggest segment is Injectables, which focuses on liquid medicines for hospitals and healthcare centres. In the US, it&#8217;s a top-three supplier of generic injectables. </p>



<p>This division&#8217;s more <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">profitable</a> &#8212; a 30%-33% core operating margin &#8212; because injectable drugs are harder to make than pills and there&#8217;s less competition.</p>



<h2 class="wp-block-heading" id="h-what-s-this-once-in-a-decade-opportunity-then">What&#8217;s this once-in-a-decade opportunity then?</h2>



<p>This leads us onto GLP-1 weight-loss drugs. Unlike simple pills, GLP-1s are complex injectables. They require sterile manufacturing and delivery pens. Most small generic players can&#8217;t make them, but Hikma can.</p>



<p>In 2026 and 2027, patents for semaglutide (the core ingredient in Ozempic and Wegovy) begin expiring in Brazil, China, Canada, India, the<strong> </strong>UAE, and elsewhere.&nbsp;</p>



<p>Crucially, Hikma already proved it could move fast by launching the first generic Liraglutide in the US in late 2024. This is a diabetes drug that mimics the hormone GLP-1 to help control blood sugar and appetite.&nbsp;</p>



<p>In countries such as Saudi Arabia and the UAE, demand for GLP-1s is very high. So a Hikma generic that’s significantly cheaper would likely enjoy huge demand. </p>



<p>To be clear then, Hikma isn&#8217;t trying to invent<em> </em>the next GLP-1 breakthrough. It’s aiming to manufacture cheaper versions for the tens of millions of people in the Middle East and North Africa who today can&#8217;t afford the pricier branded products.&nbsp; </p>



<h2 class="wp-block-heading" id="h-cheap-valuation">Cheap valuation </h2>



<p>Now, as exciting as this sounds, there will still be plenty of competition in this space. <strong>Teva Pharmaceuticals</strong> in particular is one of Hikma&#8217;s fiercest rivals in the generic drugs market, while patents for semaglutide don&#8217;t expire in Europe and the US until the early 2030s.</p>



<p>Meanwhile, Hikma&#8217;s experiencing margin pressure in its Injectables business due to a delay in a new US manufacturing facility and global supply chain pressures. </p>



<p>By 2027, it anticipates a 30% margin in this segment, down from 32%-33% this year. So this hasn&#8217;t helped the share price.</p>



<p>Nevertheless, the business still expects to reach $5bn in revenue by 2030 (about a 50% rise from 2025). And the stock looks really cheap today at just 8.6 times forward earnings. That&#8217;s a noticeable discount to both the FTSE 100 and wider pharma industry.</p>



<p>Finally, the stock&#8217;s sporting a well-covered 4.2% dividend yield. So there&#8217;s a decent bit of income on offer here.</p>



<p>Weighing things up, I reckon this FTSE 100 stock&#8217;s worth considering as a cheap way to play the global GLP-1 revolution.</p>



<p></p>
<p>The post <a href="https://www.fool.co.uk/2026/01/20/down-33-is-there-a-once-in-a-decade-opportunity-in-this-ftse-100-stock/">Down 33%, is there a once-in-a-decade opportunity in this FTSE 100 stock?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Down 22% with a P/E of 9, is Hikma one of the best passive income picks right now?</title>
                <link>https://www.fool.co.uk/2026/01/17/down-22-with-a-p-e-of-9-is-hikma-one-of-the-best-passive-income-picks-right-now/</link>
                                <pubDate>Sat, 17 Jan 2026 08:19:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1632422</guid>
                                    <description><![CDATA[<p>Mark Hartley digs deeper to uncover the real story behind Hikma Pharmaceuticals' big price drop, and whether it presents a passive income opportunity.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/17/down-22-with-a-p-e-of-9-is-hikma-one-of-the-best-passive-income-picks-right-now/">Down 22% with a P/E of 9, is Hikma one of the best passive income picks right now?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE: HIK</a>) looks like a potentially a strong passive income stock. Its price is down 22% over the past year, as operational challenges forced management to revise earnings expectations. Several factors drove the drop, most notably the delayed launch of a recently-acquired facility in Bedford, Ohio.</p>



<p>As a result, full operational efficiency has been pushed back to late 2027, with commercial revenue benefits now only arriving in 2028. So the question is, does today’s depressed price present an opportunity &#8212; or a value trap?</p>


<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-valuation-assessment">Valuation assessment</h2>



<p>The falling price means Hikma now looks attractively undervalued, with a price-to-earnings (P/E) ratio of only 9.3. Add to this an above-average dividend yield of 4.1%, and the stock exhibits both income and value potential.</p>



<p>But the Bedford delay is just the tip of an iceberg, adding to a swathe of other issues. From guidance cuts and currency headwinds to higher costs amid US pricing pressure, Hikma has its work cut out if it hopes to recover.</p>



<p>Management&#8217;s therefore pursuing a multi-year turnaround strategy but results may take some time to materialise.&nbsp;</p>



<h2 class="wp-block-heading" id="h-my-verdict">My verdict?</h2>



<p>Hikma may look cheap but I think it could still get cheaper. Investors buying now may find themselves underwater for another year or more. So when it comes to passive income, I think there are better options on the FTSE 100.</p>



<p>One I think is worth considering right now is <strong>Admiral Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-adm/">LSE: ADM</a>). It&#8217;s down 17% from its 2025 high, leaving it with a relatively attractive forward P/E ratio of 12.7. What&#8217;s more, it&#8217;s estimated to be trading at 49% below fair value, using a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/discounted-cash-flow-dcf/" target="_blank" rel="noreferrer noopener">discounted cash flow</a> (DCF) model.</p>


<div class="tmf-chart-singleseries" data-title="Admiral Group Plc Price" data-ticker="LSE:ADM" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>But its income potential is the real story. With a yield of 7.7% and over two decades of uninterrupted payments, it&#8217;s a dividend star. Earnings have compounded at an annualised rate of 30% over the past three years and its <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/" target="_blank" rel="noreferrer noopener">return on equity</a> (ROE) is an eye-watering 65.4%.</p>



<p>Admittedly, its average 12-month price target growth of 14% is much lower than Hikma&#8217;s 40%, but the income reliability makes it the preferable choice, in my book.</p>



<p>It&#8217;s not a guaranteed payday though. As with any stock, there are risks. Recent earnings were temporarily inflated due to prior period reserve releases, essentially the result of cautious estimates from past years proving less costly than expected.</p>



<p>These are one-time accounting gains, not recurring profits. When these reserve releases dry up (as they inevitably do when markets normalise), reported earnings could drop sharply.</p>



<h2 class="wp-block-heading" id="h-the-bottom-line">The bottom line</h2>



<p>When looking closer, Hikma&#8217;s discount price may not be the best value opportunity today. While it&#8217;s still got strong recovery potential, it could be a while before investors see the benefit.</p>



<p>Admiral, on the other hand, while still carrying some valuation risk, has far stronger income potential. For long-term investors eyeing passive income, I think it&#8217;s a better stock to consider today.</p>



<p>But it&#8217;s not the only one. If you&#8217;re worried about the impact of global rate changes, stocks such as <strong>Unilever</strong> and <strong>National Grid</strong> have both defensive and income qualities.</p>



<p>As always, a highly-diversified portfolio offers the best chance to ride out volatility while still targeting reliable returns.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/17/down-22-with-a-p-e-of-9-is-hikma-one-of-the-best-passive-income-picks-right-now/">Down 22% with a P/E of 9, is Hikma one of the best passive income picks right now?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>I asked ChatGPT for the best FTSE 100 stock! Here&#8217;s what it said&#8230;</title>
                <link>https://www.fool.co.uk/2025/11/23/i-asked-chatgpt-for-the-best-ftse-100-stock-heres-what-it-said/</link>
                                <pubDate>Sun, 23 Nov 2025 07:23:00 +0000</pubDate>
                <dc:creator><![CDATA[Dr. James Fox]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1607123</guid>
                                    <description><![CDATA[<p>The FTSE 100 is full of interesting and attractive investment opportunities. Dr James Fox explores what AI considers to be the best. </p>
<p>The post <a href="https://www.fool.co.uk/2025/11/23/i-asked-chatgpt-for-the-best-ftse-100-stock-heres-what-it-said/">I asked ChatGPT for the best FTSE 100 stock! Here&#8217;s what it said&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The <strong>FTSE 100 </strong>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&#8230; it&#8217;s response wasn&#8217;t overly surprising.</p>



<p><em>If one had to pick a standout today, <strong>AstraZeneca</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-azn/">LSE:AZN</a>) 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.</em></p>



<p>Why doesn&#8217;t this surprise me? Well, it&#8217;s an obvious choice. It&#8217;s the largest and most prominent company on the index. It&#8217;s operating, as the AI highlights, in a field with strong secular trends and it&#8217;s something of a national champion &#8212; that often counts for something.</p>



<div class="tmf-chart-singleseries" data-title="AstraZeneca Plc Price" data-ticker="LSE:AZN" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Of course, the notion of the &#8216;best&#8217; stock is subjective. Quantitive models and stock screens can tell us which stocks are best, but that&#8217;s always dependent on how the model ranks companies. And stock picking requires a qualitative element too. </p>



<p>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. </p>



<p>The forward <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/the-peg-ratio/">price-to-earnings-to-growth (PEG)</a> ratio now sits around 1.47 after the stock&#8217;s recent rally. This might sound expensive, but it&#8217;s around a 15% discount to the sector average.</p>



<p>And while it&#8217;s sitting on £24bn in <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-balance-sheet/">net debt</a>, this seems manageable for a company with a market cap now exceeding £210bn. The dividend yield at 1.7% is worth noting too. </p>



<p>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 &#8212; dividend yields and share prices are inversely correlated. </p>



<h2 class="wp-block-heading" id="h-my-favourite-ftse-100-stock">My favourite FTSE 100 stock</h2>



<p>I&#8217;m a big fan of AstraZeneca and it&#8217;s a large part of my portfolio, but I&#8217;m less inclined to buy more today after the rally. </p>



<p>One stock that stands out to me in the current market is <strong>Hikma </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE:HIK</a>). 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. </p>



<p>It&#8217;s not all great though. The company recently reduced its medium-term margin outlook and the shares fell 11%. It&#8217;s now facing relegation to the <strong>FTSE 250</strong>.</p>



<div class="tmf-chart-singleseries" data-title="Hikma Pharmaceuticals Plc Price" data-ticker="LSE:HIK" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Despite this, I&#8217;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.&nbsp;</p>



<p>There&#8217;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&#8217;s worth considering. </p>
<p>The post <a href="https://www.fool.co.uk/2025/11/23/i-asked-chatgpt-for-the-best-ftse-100-stock-heres-what-it-said/">I asked ChatGPT for the best FTSE 100 stock! Here&#8217;s what it said&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>I asked ChatGPT for the best FTSE 100 stocks for a rotation out of tech! Here’s what it said</title>
                <link>https://www.fool.co.uk/2025/11/08/i-asked-chatgpt-for-the-best-ftse-100-stocks-for-a-rotation-out-of-tech-heres-what-it-said/</link>
                                <pubDate>Sat, 08 Nov 2025 06:08:00 +0000</pubDate>
                <dc:creator><![CDATA[Dr. James Fox]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1600194</guid>
                                    <description><![CDATA[<p>ChatGPT certainly has some uses when it comes to stock picking, but it’s far from being an expert. Dr James Fox explores its FTSE 100 take.</p>
<p>The post <a href="https://www.fool.co.uk/2025/11/08/i-asked-chatgpt-for-the-best-ftse-100-stocks-for-a-rotation-out-of-tech-heres-what-it-said/">I asked ChatGPT for the best FTSE 100 stocks for a rotation out of tech! Here’s what it said</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The <strong>FTSE 100</strong> offers very little in the way of tech exposure. And when I asked ChatGPT for the best FTSE 100 stocks for a rotation out of tech, it correctly highlighted that. </p>



<p>It noted that the index is heavily weighted towards financials, mining and oil. This is true, but hardly rocket science.</p>



<p>I was unimpressed by its stock suggestions and the reasoning for them. These included <strong>HSBC</strong>, <strong>BP</strong>, <strong>Unilever</strong>, <strong>Rio Tinto </strong>and <strong>Diageo</strong>.</p>



<p>Yes, these certainly aren’t tech stocks, but I fear ChatGPT has just sent me the most prevalent names in non-tech sectors. </p>



<p>Stock-specific benefits were also lacking. It said it chose HSBC because it offers banking exposure beyond the UK. This is true, but the most important factor in any investment decision should always be the stock’s valuation.</p>



<p>This is a common theme throughout its recommendations. It even said that Diageo was ‘recently’ noted as the “<em>best FTSE 100 stocks to watch in 2025</em>”. Well I have news for you ChatGPT, it’s almost 2026 and that article was desperately incorrect.</p>



<h2 class="wp-block-heading" id="h-how-can-chatgpt-be-useful">How can ChatGPT be useful?</h2>



<p>I think the above goes some way to show that ChatGPT has its limitations. My peers and I often use it for research and even for developing models and creating code — if needed.</p>



<p>That latter point I find really useful. Quantitative models are quite simple to create. You give a weighting to certain metrics, such as the <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/the-peg-ratio/">price-to-earnings-to-growth (PEG)</a> ratio and operating margin, and then create a formula that ranks the stocks accordingly.</p>



<p>ChatGPT can be useful here. All you have to do is provide it with the data. But beyond that &#8212; not really.</p>



<h2 class="wp-block-heading" id="h-so-where-to-invest">So, where to invest?</h2>



<p>One FTSE 100 company that I personally believe is worth considering because of the data is generics producer <strong>Hikma Pharmaceuticals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hik/">LSE:HIK</a>).</p>



<p>The Amman-founded company currently trades at just 10.2 <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">times forward earnings</a>. This is expected to fall to 9.3 times in 2026 with earnings improving 19.3% this year and 11.2% next year. These are figures based on projections, which can be incorrect.</p>



<p>These figures also give us a PEG ratio of 0.9. This typically suggests a stock is good value. The dividend yield also contributes to the valuation’s appeal, with a forward yield around 3.6%.</p>



<p>However, we need to account for £1.3bn in debt, which is substantial considering the market cap just below £4bn. Not only does this impact the maths, but debt can weigh on earnings growth.</p>



<p>Nonetheless, I believe the valuation picture is attractive. Even when accounting for the fact that generics companies typically trade at a discount to their pharmaceutical and biotech peers, I still think the valuation picture is strong and worth considering.</p>



<p>Moving to qualitative factors, Hikma could receive a boost in the coming years as patents on popular weight-loss drugs expire. This would allow it to enter the market with its own lower-cost alternative without the vast associated R&amp;D.</p>
<p>The post <a href="https://www.fool.co.uk/2025/11/08/i-asked-chatgpt-for-the-best-ftse-100-stocks-for-a-rotation-out-of-tech-heres-what-it-said/">I asked ChatGPT for the best FTSE 100 stocks for a rotation out of tech! Here’s what it said</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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