UPDATE: New reports confirm that two stocks on the FTSE 100 are emerging as some of the most profitable in the UK market. AstraZeneca and HSBC have showcased remarkable financial metrics that investors should watch closely.
As of July 2025, AstraZeneca displays a net profit margin of 16.2%, far exceeding many peers in the pharmaceutical sector. This strong performance is underscored by a return on equity (ROE) of 22%, reflecting the company’s efficiency in converting shareholder equity into profit. However, the company faces potential risks, including the upcoming patent expiration of its key drug Farxiga, expected to impact up to £7.7 billion in revenue next year.
Meanwhile, HSBC is also making headlines with a year-to-date return on tangible equity (RoTE) of 17.6%. This robust performance is attributed to diverse revenue streams, particularly in wealth management. Despite this success, HSBC’s recent decision to dissolve its dedicated geopolitical risk team raises concerns, as experts warn that banks ignoring geopolitical factors could face up to 30% higher earnings volatility during crises.
Both companies are not just profitable; they represent significant growth potential in their respective sectors. Investors are urged to consider these stocks carefully, as AstraZeneca and HSBC may lead the way in the UK market.
Looking ahead, investors should keep a close eye on AstraZeneca’s innovation strategies to mitigate risks from patent expirations and monitor HSBC’s response to geopolitical risks that could affect its profitability. With the financial landscape evolving rapidly, these two stocks could be pivotal for both seasoned investors and newcomers looking to navigate the FTSE 100.
For those considering investments, now is the time to evaluate whether to act on these promising stocks. The urgency to stay informed is paramount as market conditions continue to shift.
