Image source: Getty Images
It’s been an incredibly volatile few weeks for the stock market. Donald Trump’s ‘liberation day’ tariffs on 2 April knocked the FTSE 100 down to 7,680 by 9 April. Since that low, it’s staged an almighty comeback.
As I write, the index has bounced back to 8,586. That’s a rise of nearly 12% in just over month. It’s a remarkable turnaround and a powerful reminder of two things the Motley Fool always emphasises during a sell-off.
First: don’t sell. The moment panic kicks in, paper losses become real and the risk is missing the bounce when it comes. That’s exactly what’s happened to anyone who fled the market in April.
Second: dips are a great chance to go shopping. That’s what I did, snapping up growth stocks JD Sports Fashion and International Consolidated Airlines Group. They’re up 35% and 25% respectively over the past month. I didn’t catch the very bottom but I’m not complaining. I’m still comfortably ahead. So far.
Plenty of strength in this market
Despite the headlines, 2025 hasn’t been a disaster. The FTSE 100 is up almost 4% year to date, which isn’t bad considering all the uncertainty. Yes, it’s still shy of the 8,800 mark it hit in February but this recovery has momentum.
So what happens next? As ever, nobody knows. There’s always something to worry about – inflation, war, weather, Trump. The list never ends. I’m making no predictions.
Instead, I stick to what I know: shares look reasonably priced, with the FTSE 100 trading at about 15 times earnings. That’s not expensive. Especially when US valuations look stretched.
One giant still in waiting
One company I’ve got my eye on is drugs maker AstraZeneca (LSE: AZN). It hasn’t joined the great share price recovery party yet. The share price is down 17% over the last 12 months.
The pharmaceutical sector is still under a cloud as Trump continues to threaten tariffs and pushes for cheaper drugs. That uncertainty has hit AstraZeneca. It used to command a price-to-earnings ratio of around 25. Today, it’s below 17.
The business itself is motoring. First-quarter results on 29 April showed a 10% rise in revenue to $13.6bn, with growth across all major regions. Core operating profit rose 12%, while core earnings per share jumped 21% to $2.49. There’s plenty of innovation too, with five new Phase III readouts and 13 global approvals since the last update.
The search continues
The company is still targeting $80bn in revenue by 2030 and remains committed to investment in the US. It looks like a brilliant business going through a sticky patch for reasons largely beyond its control.
AstraZeneca is definitely one to consider buying, but things may get worse before they get better. However, waiting until everything’s rosy again could mean missing the first leg of a recovery. Which is typically the best bit.
Even after this rally, the FTSE 100 is full of companies I’d love to buy today. I’m not pretending it’s plain sailing from here. The recovery could stall.
But I’ve learned that the best times to buy are often when confidence is still fragile. That’s why I’ll keep throwing every penny I can muster at this recovery.
