Once I requested ChatGPT what one of the best UK shares to purchase proper now are, Rolls-Royce, BP, and Greggs all obtained honourable mentions. However its high decide was FTSE 100 agency AstraZeneca (LSE:AZN).

That stunned me a bit – the inventory has barely outperformed the FTSE 100 this yr, but it surely’s nonetheless lots cheaper than it was a yr in the past. Nonetheless, I’ve to confess the chatbot made a fairly good case.

AstraZeneca

AstraZeneca’s current half-year outcomes have been fairly spectacular. Revenues have been up 18%, pushed by robust gross sales of its personal medicine and its collaborative initiatives with different organisations.

That’s spectacular, however the true key’s the outlook. In keeping with ChatGPT, the corporate has a strong pipeline with round 40 initiatives in Section III trials. 

The inventory can be well-liked with analysts – the common price goal is round 36% above the present share price. If it reaches that degree within the subsequent yr, it would properly be one of the best UK inventory to personal.

Regardless of this, I’m not seeking to purchase shares in AstraZeneca in the meanwhile. I’ve nothing in opposition to what ChatGPT says concerning the inventory, however I discover it very laborious to know the corporate intimately. 

The pipeline is an efficient instance. The typical approval price for Section III medicine is round 60% however that doesn’t inform me a lot concerning the firm particularly.

Given this, shopping for the inventory can be a speculative – and subsequently dangerous – transfer for me. So whereas ChatGPT may be on to one thing, AstraZeneca isn’t high of my record of UK shares to purchase proper now.

A special thought

WH Smith (LSE:SMWH) didn’t even characteristic on ChatGPT’s record of high shares. However I don’t suppose it takes lots of specialist information to see why that is an funding that might work out properly over time.

The corporate isn’t doing something massively modern by way of most cancers therapies or weight problems medicine. However it has simply made a giant transfer that I believe is each vital and straightforward to know.

Formally, WH Smith has simply offered off its excessive avenue retailers. For my part, it virtually gave them away, however I don’t thoughts that because it means the agency can give attention to its way more promising journey division.

These are shops positioned in airports, hospitals, and prepare stations. In different phrases, venues the place there’s a lot much less competitors than there may be on the excessive avenue.

That’s to not say there aren’t any dangers. A worldwide recession might be the most important menace to the inventory market total and relying on journey demand makes WH Smith extra uncovered than most. 

Nonetheless, the inventory has an enterprise worth of £1.79bn and the journey shops generate round £189m in buying and selling income. On that foundation, I believe the inventory is properly price contemplating. 

Investing rules

Will WH Smith do higher than AstraZeneca sooner or later? I don’t know – lots is dependent upon what occurs with the pharmaceutical firm’s ongoing trials. 

If issues go properly, the inventory could possibly be an impressive funding. However I’m not ready to see this for myself, so I’m not shopping for the inventory. 

Extra importantly, I don’t see a have to depend on ChatGPT for inventory concepts. I believe there are many UK shares that look engaging in the meanwhile that I could make sense of, so I’m specializing in these.