We recently published a list of 8 High Growth UK Stocks to Invest In. In this article, we are going to take a look at where Autolus Therapeutics (NASDAQ:AUTL) stands against other high growth UK stocks to invest in.
According to a KPMG report, the United Kingdom’s GDP growth is projected to slow in the second half of 2024 but is expected to rise slightly to 1.2% in 2025. This growth will likely be driven by a less restrictive monetary policy and ongoing improvements in real wages, which could boost consumption and business investment. However, in the longer term, GDP growth may be limited to around 1.1% per year due to historically slow productivity growth.
UK inflation is forecasted to rise to 3% by early 2025, after dropping below 2%, this increase is attributed to the ongoing economic recovery and the impact of interest rate cuts on the economy. The Bank of England is expected to take a cautious approach to easing monetary policy, with the base rate expected to reach 3.5% by the end of 2025. This indicates that the central bank will be careful not to overstimulate the economy, in order to avoid overheating and inflationary pressures.
UK consumers have been saving a larger portion of their income, which may continue to limit spending growth. While some of this increase in savings could reverse as interest rates fall, a significant portion is likely to remain, driven by long-term demographic trends and heightened caution in response to a more volatile economic environment. In terms of investment, the forecast predicts that overall investment growth will accelerate as further interest rate cuts reduce the burden on business investment.
UK Equities: Attractive Investment Opportunity
Nannette Hechler-Fayd’herbe, Chief Information Officer in Europe, the Middle East, and Africa at Lombard Odier, a Swiss private bank specializing in wealth and asset management, in an interview on Bloomberg, shared her perspectives on the current investment landscape, emphasizing the importance of spreading investment risk more broadly across multi-asset portfolios. Hechler-Fayd’herbe expresses her affinity for UK equities, citing their attractive valuations and sector composition.
She notes that UK equities are trading at forward price-to-earnings ratios similar to those of emerging markets, making them an appealing investment opportunity. The UK equity index, in particular, offers a favorable exposure to the energy sector, which is poised to benefit from a better-than-expected global economy. Additionally, in the event of geopolitical escalation, the energy sector is likely to benefit from higher prices, making it an attractive hedge.
Hechler-Fayd’herbe highlights the sector composition of the UK equity market as a key factor in its appeal. The market’s exposure to the energy sector, combined with its relatively lower volatility and higher dividend yields compared to European equities, makes it an attractive investment opportunity. She also notes that the UK equity market’s dividend yield is more attractive compared to European equities, providing a more stable source of income for investors.
Hechler-Fayd’herbe believes that the Bank of England’s interest rate cuts would potentially lead to a rally in UK equities. Overall, Hechler-Fayd’herbe’s comments suggest that UK equities offer an attractive combination of value, income, and sector composition, making them a compelling investment opportunity in the current market environment.
Our Methodology
To compile our list of the 8 high-growth UK stocks to invest in, we used the Finviz and Yahoo stock screeners to find the 60 largest companies in the UK. We then narrowed our choices to 8 stocks with the highest 5-year revenue growth. We also included their hedge fund sentiment, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their of their revenue growth.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A laboratory technician carefully studying a microscope with a biopharmaceutical product inside.
Autolus Therapeutics (NASDAQ:AUTL)
5-Year Revenue CAGR: 29.30%
No of Hedge Funds: 24
Autolus Therapeutics (NASDAQ:AUTL) is a clinical-stage biopharmaceutical company that specializes in developing T-cell therapies for the treatment of cancer. Autolus Therapeutics (NASDAQ:AUTL) proprietary technology platform engineers T-cells to specifically target and destroy cancer cells, offering a highly personalized approach to cancer treatment.
Autolus Therapeutics’ (NASDAQ:AUTL) obe-cel, an autologous cell therapy for a type of blood and bone marrow cancer, has shown impressive results in clinical trials, with an objective response rate (ORR) of 78% in patients with r/r B-ALL, compared to an ORR of 65% for Tecartus, a competing therapy developed by Gilead Sciences. Additionally, obe-cel has demonstrated a favorable safety profile, with only 3% of patients experiencing grade 3 or higher cytokine release syndrome and 7% experiencing grade 3 or higher ICANS.
The market opportunity for obe-cel is significant, with an estimated 8,000 new cases of adults diagnosed globally each year. Autolus Therapeutics (NASDAQ:AUTL) anticipates that the addressable market for obe-cel will be approximately 3,000 patients, which translates to a market opportunity of around $1.5 billion.
One of the key advantages of obe-cel is its differentiated mechanism of action, which allows for a shorter half-life and less toxicity compared to other cancer cell therapies. Additionally, obe-cel is administered as two infusions using a tumor burden-guided dosing schedule, which could make it more appealing to patients and physicians. With a potential price point of around $450,000, obe-cel could be competitive with other cancer cell therapies on the market.
Autolus Therapeutics (NASDAQ:AUTL) is also exploring the use of obe-cel in autoimmune diseases, including systemic lupus erythematosus (SLE), another chronic autoimmune disease. The company has promised data from a study on SLE patients before the end of this year, which could provide additional insight for growth.
Autolus Therapeutics (NASDAQ:AUTL) has also established partnerships with three major pharmaceutical companies, including BioNTech, Moderna, and Bristol Myers Squibb, which could provide additional opportunities for growth and revenue.
Autolus Therapeutics’ (NASDAQ:AUTL) obe-cel has the potential to become a best-in-class cell therapy for the treatment of cancers. Industry analysts have a consensus Buy rating on the stock, with a target price of $10.40, indicating a potential gain of 86.10% from its current price.
Overall, AUTL ranks 3rd on our list of high growth UK stocks to invest in. While we acknowledge the potential of AUTL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AUTL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.