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22000.0 | 2023-12-02 00:00:00 UTC | 2 Dividend Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-dividend-stocks-to-buy-and-hold-forever-2 | nan | nan | Over long periods, dividend stocks tend to outperform their non-dividend-paying counterparts. There are likely several reasons for this, one of which is that sustaining a dividend program requires a solid underlying business. So corporations that are able to consistently pay dividends and raise their payouts tend to have other things going their way. That makes these stocks great targets for investors focused on the long game.
And with that in mind, let's consider two dividend stocks worth holding onto now: AbbVie (NYSE: ABBV) and Visa (NYSE: V).
1. AbbVie
AbbVie's dividend profile looks great on paper. It's a Dividend King with 52 consecutive years of payout hikes -- if you include the time it spent as a unit of Abbott Laboratories. AbbVie's yield at its current share price is 4.48%, compared to the S&P 500's average of 1.62%. Since its spinoff as an independent entity in January 2013, the drugmaker has raised its dividend by an impressive 288%.
However, the detractors will quickly point out that AbbVie's key asset, Humira, is now facing generic competition. AbbVie's sales have been dropping this year as a result. That's also the reason for the company's poor stock market performance in 2023. Still, patent cliffs are nothing new, and they are more than manageable for well-established pharmaceutical giants.
AbbVie's research and development pipeline has already produced two new immunology drugs, Skyrizi and Rinvoq, that between them treat the same conditions as Humira. Management expects their combined annual sales will surpass those of Humira by 2027.
AbbVie has produced many more important assets in several therapeutic areas. There is migraine treatment Qulipta, and the newly approved cancer treatment Epkinly, among others. AbbVie can also count on more established products such as its Botox franchise, cancer treatment Venclexta, and depression therapy Vraylar. AbbVie won't stop expanding its lineup. The company's pipeline features more than 90 products.
Even a handful of approvals per year should lead to a broader revenue base over time. Eventually, the effects of Humira's slumping sales will stop impacting AbbVie's financial results. It will return to growth and continue to reward shareholders with dividend increases for a long time. Since it is already a Dividend King, it would be unlikely for AbbVie management to skip an annual increase or cut the payout if that could be avoided, as to do so would mean being kicked out of that exclusive club.
AbbVie's underlying business, despite the Humira patent cliff, remains solid and built to perform well in the long run. And given the healthcare giant's dividend profile, income-seeking investors can't go wrong with this stock.
2. Visa
Visa is a leader in its space, providing a payment processing platform that allows credit card transactions to run smoothly. It makes money on fees every time a customer uses a card with its logo -- and millions of those transactions take place every single day. And as long as people keep spending money, especially as they increasingly switch away from cash and checks, Visa will have plenty of room to increase its revenues and profits.
That's especially the case since it benefits from a powerful network effect. The ever-rising numbers of merchants that accept its cards and consumers who use them make its ecosystem progressively stronger. That's why knocking Visa off its pedestal would be extremely difficult for any upstart contender.
Meanwhile, the company continues to deliver excellent financial results. In its fiscal 2023, which ended on Sept. 30, Visa's revenue increased by 11% to $32.7 billion, while its net income rose 15% to $17.3 billion. Visa's strong financial results last quarter weren't an anomaly.
V Revenue (Annual) data by YCharts.
Note Visa's impressive profit margin of nearly 53% for its fiscal 2023. The company generates high margins since it no longer needs to spend money building its payment network. The network is already in place, and additional transactions don't add additional expenses. Visa's strong underlying business only makes its dividend program more attractive.
Nor do investors have to worry about its payouts being suspended or cut. The company has raised its dividends by an incredible 420% in the past 10 years. While Visa's yield of 0.82% at its current share price isn't impressive, its cash payout ratio of 19% is quite conservative. So long-term investors shouldn't focus too much on the company's yield today.
Visa is ideally positioned to continue delivering above-average financial results, stock market returns, and dividend increases for a long time.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Since it is already a Dividend King, it would be unlikely for AbbVie management to skip an annual increase or cut the payout if that could be avoided, as to do so would mean being kicked out of that exclusive club. And with that in mind, let's consider two dividend stocks worth holding onto now: AbbVie (NYSE: ABBV) and Visa (NYSE: V). AbbVie AbbVie's dividend profile looks great on paper. | And with that in mind, let's consider two dividend stocks worth holding onto now: AbbVie (NYSE: ABBV) and Visa (NYSE: V). AbbVie AbbVie's dividend profile looks great on paper. AbbVie's yield at its current share price is 4.48%, compared to the S&P 500's average of 1.62%. | And with that in mind, let's consider two dividend stocks worth holding onto now: AbbVie (NYSE: ABBV) and Visa (NYSE: V). AbbVie AbbVie's dividend profile looks great on paper. AbbVie's yield at its current share price is 4.48%, compared to the S&P 500's average of 1.62%. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! And with that in mind, let's consider two dividend stocks worth holding onto now: AbbVie (NYSE: ABBV) and Visa (NYSE: V). AbbVie AbbVie's dividend profile looks great on paper. |
22001.0 | 2023-12-02 00:00:00 UTC | 5 S&P 500 Stocks That Pay a Generous Dividend | ABBV | https://www.nasdaq.com/articles/5-sp-500-stocks-that-pay-a-generous-dividend | nan | nan | The S&P 500 is the benchmark for the investing world. This well-known index comprises 500 of the largest and most visible corporations in the United States, the world's leading economy.
It's also a great hunting ground for phenomenal long-term stock ideas to fit any investing strategy. Dividend investors are a large group with a specific investing strategy, buying stocks that will help them build large income streams from dividends. Many of these dividend enthusiasts rely on these five generous dividend-paying S&P 500 stocks for their huge payouts.
Let's find out a bit more about these five stocks.
Image source: Getty Images
1. Altria Group
American tobacco giant Altria Group (NYSE: MO) has made millions for shareholders over the past century selling Marlboro cigarettes in the United States. The company's golden years are far behind it now that the general public is better informed about the dangers of smoking. Still, the addictive properties of nicotine give Altria the pricing power to continue growing profits despite smoking rates declining since the 1960s.
Cigarettes are cheap to manufacture, so the company has few operating expenses. Most of Altria's profits go to shareholders as dividends. The company's dividend payout ratio is roughly 80% of cash flow. Altria's raised the dividend 58 times over the past 54 years, meaning investors are getting paid more over time. Shares offer a generous 9.3% dividend yield at today's share price.
2. AbbVie
Pharmaceuticals are a lucrative industry, especially if the company manages to develop a blockbuster drug. Patents protect proprietary formulas from competition for several years and allow the company to benefit from its development efforts. AbbVie (NYSE: ABBV) was a significant benefactor for several years from the success of Humira, the world's top-selling drug. Unfortunately, its patent protection expired recently. But don't worry; the company used its Humira profits to build the rest of the company into a juggernaut and it has several other drugs ready or in development to take up the slack.
AbbVie has become a favorite among dividend investors. Not only is the yield juicy at 4.5%, but the payout has also grown by an average of 17% annually over the past decade. The dividend payout ratio is still manageable at 42% of cash flow, so investors could see a nice one-two combo of yield and dividend growth moving forward.
3. Verizon Communications
Virtually everyone in America has a cellphone or smartphone. The importance of smartphones to consumers' everyday lives has made telecommunications companies like Verizon Communications (NYSE: VZ) more like utility companies. People seemingly pay their phone bills as religiously as their water or electricity. This creates steady revenue streams for Verizon, which results in fertile ground for steady and increasing dividend payments.
Verizon must invest constantly in upgrading and maintaining its wireless network, so investors should look at net income instead of cash flow to judge the dividend. Fortunately, Verizon spends just half its earnings on the dividend, so investors should be in good shape with its 7.1% dividend yield.
4. Philip Morris International
Marlboro is a worldwide brand, but Altria only sells it in America. Philip Morris International (NYSE: PM) was spun off from Altria over a decade ago and owns international rights to Marlboro. That shortens its dividend history, but Philip Morris has raised its dividend yearly as a public company. That streak currently stands at 15 years. The dividend payout ratio is high at 103%, but profits could grow and bring that ratio down over the coming years.
How? Philip Morris has done a great job innovating and moving into growing nicotine categories. It developed IQOS, a device that heats (but doesn't burn) tobacco to produce vapor. It also acquired Swedish Match, which makes the Zyn brand of oral nicotine pouches. Philip Morris is bringing these opportunities to global markets, including America, so the stock has long-term growth potential.
5. AT&T
A small group of significant players dominates the U.S. wireless communications market. Verizon is second-largest to AT&T (NYSE: T), which holds a 47% share. Today, AT&T is a different company from what it's been for most of the decade. It tried, failed, and exited the entertainment industry and is now concentrating on telecommunications again. The stock offers a dividend yield of more than 6.8%.
It's not all rosy. The company still carries $138 billion in long-term debt, scars from its former entertainment ambitions. However, the dividend payout ratio is back to under half of net income after management cut the dividend once to free up more money to pay off its debt. Financially, AT&T seems back on its feet, giving investors confidence to continue the dividends.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Pharmaceuticals are a lucrative industry, especially if the company manages to develop a blockbuster drug. AbbVie (NYSE: ABBV) was a significant benefactor for several years from the success of Humira, the world's top-selling drug. AbbVie has become a favorite among dividend investors. | AbbVie Pharmaceuticals are a lucrative industry, especially if the company manages to develop a blockbuster drug. AbbVie (NYSE: ABBV) was a significant benefactor for several years from the success of Humira, the world's top-selling drug. AbbVie has become a favorite among dividend investors. | AbbVie Pharmaceuticals are a lucrative industry, especially if the company manages to develop a blockbuster drug. AbbVie (NYSE: ABBV) was a significant benefactor for several years from the success of Humira, the world's top-selling drug. AbbVie has become a favorite among dividend investors. | AbbVie Pharmaceuticals are a lucrative industry, especially if the company manages to develop a blockbuster drug. AbbVie (NYSE: ABBV) was a significant benefactor for several years from the success of Humira, the world's top-selling drug. AbbVie has become a favorite among dividend investors. |
22002.0 | 2023-12-01 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-26 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22003.0 | 2023-12-01 00:00:00 UTC | Pharma Stock Roundup: ABBV to Buy Immunogen, NVS Ups Mid-Term Sales View & More | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-abbv-to-buy-immunogen-nvs-ups-mid-term-sales-view-more | nan | nan | This week, AbbVie ABBV announced a definitive agreement to acquire cancer biotech Immunogen at a premium valuation of $10.1 billion. Novartis NVS raised its mid-term sales growth outlook by 1%. Sanofi SNY and partner Regeneron’s second phase III chronic obstructive pulmonary disease (COPD) study showed that their blockbuster drug Dupixent significantly reduced exacerbations in such patients.Merck MRK announced positive data from a phase III study evaluating V116, its investigational 21-valent pneumococcal conjugate vaccine (PCV) specifically designed to protect adults.
Recap of the Week’s Most Important Stories
AbbVie to Buy Immunogen for $10.1B: AbbVie has offered to buy ImmunoGen, which will add its new ovarian cancer drug Elahere (mirvetuximab soravtansine), a first-in-class antibody-drug conjugate (ADC), to its portfolio. Per the deal terms, AbbVie will pay Immunogen $31.26 per share in cash, which adds up to a total equity value of approximately $10.1 billion.
Elahere, which is approved for platinum-resistant ovarian cancer, will accelerate AbbVie’s presence in the ovarian cancer market. Elahere is also being evaluated in multiple studies, both as monotherapy and in combination with other drugs, for ovarian cancer, which will expand the drug’s use in earlier lines of therapy and additional patient populations. Immunogen has some promising ADC candidates in its pipeline, like pivekimab sunirine (in phase II studies for blastic plasmacytoid dendritic cell neoplasm) and IMGN-151 (in phase I for ovarian cancer).
The transaction is expected to close in mid-2024, subject to shareholder and regulatory approval. The boards of directors of both companies have approved the transaction.
The FDA granted Breakthrough Therapy Designation (BTD) to epcoritamab for treating relapsed or refractory (R/R) follicular lymphoma (FL) after two or more therapies. Epcoritamab was approved (accelerated approval) by the name of Epkinly/Tepkinly (Epkinly’s brand name in EU) for R/R diffuse large B-cell lymphoma (DLBCL) in the United States and EU in 2023. The EMA also validated a Type II application for epcoritamab for the same indication. The FDA’s BTD and validated European application are based on data from the FL cohort of the phase I/II EPCORE NHL study.
AbbVie announced positive top-line data from the phase II LUMINOSITY study evaluating telisotuzumab-vedotin, also called Teliso-V, for patients with previously treated non-small cell lung cancer (NSCLC) with c-Met overexpression. Data from the LUMINOSITY study showed that the overall response rate (ORR) in the c-Met high group of patients was 35.0%. ORR is the study’s primary endpoint. The ORR in the c-Met Intermediate group of patients was 23%.
Novartis Ups Mid-Term Sales Outlook: Novartisraised its sales outlook for the mid-term on the R&D day. It now expects sales to witness a CAGR of 5% in the 2022-2027 timeframe compared to earlier expectations of 4%. Its core operating income margin is expected to be around 40% by 2027. In October 2023, Novartis spun off Sandoz, its generics and biosimilars division, into a new publicly traded standalone company. The company is now only focused on its pharmaceutical business, which has four therapeutic areas that offer potential for consistent growth. These areas are Cardiovascular-Renal-Metabolic, Immunology, Neuroscience and Oncology. Several of Novartis’ newly launched drugs, like Kisqali, are gaining traction, which should drive sales growth.
Sanofi’s Dupixent Meets Goal in 2nd COPD Study: Sanofi/Regeneron announced that a pivotal phase III study called NOTUS, which evaluated Dupixent for treating moderate-to-severe COPD, met its primary endpoint. In the study, Dupixent significantly reduced exacerbations by 34% compared to placebo.
In fact, treatment with the drug also led to rapid and significant improvement in lung function by 12 weeks, which was sustained at 52 weeks. These were the study’s key secondary endpoints. Notus is the second COPD study on Dupixent to show positive data. In March, the company announced results from the first study, called BOREAS, which showed that Dupixent led to a significant reduction in moderate or severe acute exacerbations by 30% compared with placebo.
Based on data from both studies, the companies expect to file regulatory applications seeking approval of Dupixent for the COPD indication by the end of 2023.
Merck’s V116 Shows Upbeat Responses in New Study: Merck announced positive data from phase III study on V116, which supported the immunogenicity of the 21-valent PCV compared to the standard of care, pneumococcal 20-valent conjugate vaccine or PCV20. In the cohort which included adults 50 years of age and older, vaccination with V116 resulted in non-inferior immune responses to PCV20 for all 10 shared serotypes, while responses were superior for 10 of the 11 serotypes included in V116 but not included in PCV20.
In the second cohort, which evaluated adults 18 to 49 years of age, the immune responses elicited by V116 were non-inferior to those elicited by adults 50 to 64 years of age. V116 targets serotypes that account for 83% of all invasive pneumococcal diseases in older adults in the United States, and it includes eight serotypes not covered by currently licensed vaccines
The FDA granted priority review to a supplemental biologics license application (sBLA) seeking approval for Keytruda plus Padcev as a first-line treatment for patients with locally advanced or metastatic urothelial carcinoma. The sBLA is based on data from phase III KEYNOTE-A39 study. In the study, the combination of Keytruda plus Padcev significantly improved overall survival, reducing the risk of death by 53% compared to chemotherapy. The FDA’s decision is expected on May 9, 2024.
The NYSE ARCA Pharmaceutical Index rose 0.6% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AbbVie rose the most (2.8%) while Novo Nordisk declined the most (1.4%).
In the past six months, Lilly has risen the most (33.6%), while Pfizer has declined the most (20.6%).
(See the last pharma stock roundup here: NVO & LLY to Expand Manufacturing Capacity in Europe & More)
What's Next in the Pharma World?
Watch for pipeline and regulatory updates next week.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie announced positive top-line data from the phase II LUMINOSITY study evaluating telisotuzumab-vedotin, also called Teliso-V, for patients with previously treated non-small cell lung cancer (NSCLC) with c-Met overexpression. This week, AbbVie ABBV announced a definitive agreement to acquire cancer biotech Immunogen at a premium valuation of $10.1 billion. Recap of the Week’s Most Important Stories AbbVie to Buy Immunogen for $10.1B: AbbVie has offered to buy ImmunoGen, which will add its new ovarian cancer drug Elahere (mirvetuximab soravtansine), a first-in-class antibody-drug conjugate (ADC), to its portfolio. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. This week, AbbVie ABBV announced a definitive agreement to acquire cancer biotech Immunogen at a premium valuation of $10.1 billion. Recap of the Week’s Most Important Stories AbbVie to Buy Immunogen for $10.1B: AbbVie has offered to buy ImmunoGen, which will add its new ovarian cancer drug Elahere (mirvetuximab soravtansine), a first-in-class antibody-drug conjugate (ADC), to its portfolio. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. This week, AbbVie ABBV announced a definitive agreement to acquire cancer biotech Immunogen at a premium valuation of $10.1 billion. Recap of the Week’s Most Important Stories AbbVie to Buy Immunogen for $10.1B: AbbVie has offered to buy ImmunoGen, which will add its new ovarian cancer drug Elahere (mirvetuximab soravtansine), a first-in-class antibody-drug conjugate (ADC), to its portfolio. | Image Source: Zacks Investment Research In the last five trading sessions, AbbVie rose the most (2.8%) while Novo Nordisk declined the most (1.4%). This week, AbbVie ABBV announced a definitive agreement to acquire cancer biotech Immunogen at a premium valuation of $10.1 billion. Recap of the Week’s Most Important Stories AbbVie to Buy Immunogen for $10.1B: AbbVie has offered to buy ImmunoGen, which will add its new ovarian cancer drug Elahere (mirvetuximab soravtansine), a first-in-class antibody-drug conjugate (ADC), to its portfolio. |
22004.0 | 2023-11-30 00:00:00 UTC | Health Care Sector Update for 11/30/2023: SNGX, IMGN, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-11-30-2023%3A-sngx-imgn-abbv | nan | nan | Health care stocks were higher Thursday afternoon, with the NYSE Health Care Index adding 0.7% and the Health Care Select Sector SPDR Fund (XLV) up 0.7%.
The iShares Biotechnology ETF (IBB) rose 1.1%.
In corporate news, Soligenix (SNGX) shares soared 183% after it said Thursday the US Food and Drug Administration has cleared its investigational new drug application for a phase 2a trial of SGX945, or dusquetide, as a potential treatment for aphthous ulcers in Behcet's Disease.
AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 83% and AbbVie was up 2.4%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 83% and AbbVie was up 2.4%. The iShares Biotechnology ETF (IBB) rose 1.1%. | ImmunoGen shares surged 83% and AbbVie was up 2.4%. AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. Health care stocks were higher Thursday afternoon, with the NYSE Health Care Index adding 0.7% and the Health Care Select Sector SPDR Fund (XLV) up 0.7%. | AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 83% and AbbVie was up 2.4%. Health care stocks were higher Thursday afternoon, with the NYSE Health Care Index adding 0.7% and the Health Care Select Sector SPDR Fund (XLV) up 0.7%. | AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 83% and AbbVie was up 2.4%. Health care stocks were higher Thursday afternoon, with the NYSE Health Care Index adding 0.7% and the Health Care Select Sector SPDR Fund (XLV) up 0.7%. |
22005.0 | 2023-11-30 00:00:00 UTC | AbbVie to buy ImmunoGen for $10.1 billion to boost cancer drug portfolio | ABBV | https://www.nasdaq.com/articles/abbvie-to-buy-immunogen-for-%2410.1-billion-to-boost-cancer-drug-portfolio | nan | nan | Adds details throughout
Nov 30 (Reuters) - AbbVie ABBV.N said on Thursday it will buy drugmaker ImmunoGen IMGN.O for $10.1 billion, boosting its presence in the market for cancer treatments.
The drugmaker will pay $31.26 per ImmunoGen share in cash, representing a premium of 94.6% to the last closing price.
This transaction is expected to close in the middle of 2024, AbbVie said.
(Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details throughout Nov 30 (Reuters) - AbbVie ABBV.N said on Thursday it will buy drugmaker ImmunoGen IMGN.O for $10.1 billion, boosting its presence in the market for cancer treatments. This transaction is expected to close in the middle of 2024, AbbVie said. The drugmaker will pay $31.26 per ImmunoGen share in cash, representing a premium of 94.6% to the last closing price. | Adds details throughout Nov 30 (Reuters) - AbbVie ABBV.N said on Thursday it will buy drugmaker ImmunoGen IMGN.O for $10.1 billion, boosting its presence in the market for cancer treatments. This transaction is expected to close in the middle of 2024, AbbVie said. The drugmaker will pay $31.26 per ImmunoGen share in cash, representing a premium of 94.6% to the last closing price. | Adds details throughout Nov 30 (Reuters) - AbbVie ABBV.N said on Thursday it will buy drugmaker ImmunoGen IMGN.O for $10.1 billion, boosting its presence in the market for cancer treatments. This transaction is expected to close in the middle of 2024, AbbVie said. The drugmaker will pay $31.26 per ImmunoGen share in cash, representing a premium of 94.6% to the last closing price. | Adds details throughout Nov 30 (Reuters) - AbbVie ABBV.N said on Thursday it will buy drugmaker ImmunoGen IMGN.O for $10.1 billion, boosting its presence in the market for cancer treatments. This transaction is expected to close in the middle of 2024, AbbVie said. The drugmaker will pay $31.26 per ImmunoGen share in cash, representing a premium of 94.6% to the last closing price. |
22006.0 | 2023-11-30 00:00:00 UTC | AbbVie To Acquire ImmunoGen For $31.26/shre In All-cash Deal Of About $10.1 Bln | ABBV | https://www.nasdaq.com/articles/abbvie-to-acquire-immunogen-for-%2431.26-shre-in-all-cash-deal-of-about-%2410.1-bln | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) and ImmunoGen, Inc. (IMGN) announced Thursday AbbVie will acquire ImmunoGen, and its flagship cancer therapy ELAHERE (mirvetuximab soravtansine-gynx), a first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC).
Under the terms of the transaction, AbbVie will acquire all outstanding shares of ImmunoGen for $31.26 per share in cash. The transaction values ImmunoGen at a total equity value of approximately $10.1 billion.
The boards of directors of both companies have approved the transaction. This transaction is expected to close in the middle of 2024, subject to ImmunoGen shareholder approval, regulatory approvals, and other customary closing conditions.
The acquisition accelerates AbbVie's commercial and clinical presence in the solid tumor space. Additionally, ImmunoGen's follow-on pipeline of promising next-generation ADCs further complements AbbVie's ADC platform and existing programs.
ImmunoGen's oncology portfolio has the potential to help drive long-term revenue growth for AbbVie's oncology franchise. As a fast-growing solid tumor therapy, ELAHERE provides AbbVie with a potential multi-billion-dollar on-market medicine with expansion opportunities in the ovarian cancer market.
The proposed transaction is expected to be accretive to diluted earnings per share (EPS) beginning in 2027.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) and ImmunoGen, Inc. (IMGN) announced Thursday AbbVie will acquire ImmunoGen, and its flagship cancer therapy ELAHERE (mirvetuximab soravtansine-gynx), a first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC). The acquisition accelerates AbbVie's commercial and clinical presence in the solid tumor space. As a fast-growing solid tumor therapy, ELAHERE provides AbbVie with a potential multi-billion-dollar on-market medicine with expansion opportunities in the ovarian cancer market. | (RTTNews) - AbbVie Inc. (ABBV) and ImmunoGen, Inc. (IMGN) announced Thursday AbbVie will acquire ImmunoGen, and its flagship cancer therapy ELAHERE (mirvetuximab soravtansine-gynx), a first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC). Under the terms of the transaction, AbbVie will acquire all outstanding shares of ImmunoGen for $31.26 per share in cash. As a fast-growing solid tumor therapy, ELAHERE provides AbbVie with a potential multi-billion-dollar on-market medicine with expansion opportunities in the ovarian cancer market. | (RTTNews) - AbbVie Inc. (ABBV) and ImmunoGen, Inc. (IMGN) announced Thursday AbbVie will acquire ImmunoGen, and its flagship cancer therapy ELAHERE (mirvetuximab soravtansine-gynx), a first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC). Under the terms of the transaction, AbbVie will acquire all outstanding shares of ImmunoGen for $31.26 per share in cash. The acquisition accelerates AbbVie's commercial and clinical presence in the solid tumor space. | Under the terms of the transaction, AbbVie will acquire all outstanding shares of ImmunoGen for $31.26 per share in cash. As a fast-growing solid tumor therapy, ELAHERE provides AbbVie with a potential multi-billion-dollar on-market medicine with expansion opportunities in the ovarian cancer market. (RTTNews) - AbbVie Inc. (ABBV) and ImmunoGen, Inc. (IMGN) announced Thursday AbbVie will acquire ImmunoGen, and its flagship cancer therapy ELAHERE (mirvetuximab soravtansine-gynx), a first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC). |
22007.0 | 2023-11-30 00:00:00 UTC | AbbVie Should Consider a Dividend Cut -- Here's Why | ABBV | https://www.nasdaq.com/articles/abbvie-should-consider-a-dividend-cut-heres-why | nan | nan | Since its split from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has been the third best-performing stock in terms of total returns on capital (assuming the dividend was reinvested) on the esteemed list of Dividend Kings. These special companies have raised their dividends for at least 50 years, and AbbVie inherited this status from its former parent company Abbott.
AbbVie's top-shelf performance has been due to two main factors. First up, the company successfully expanded Humira's label at a breakneck pace over this period, transforming it into the world's first pharma product to exceed $20 billion a year in sales.
Image source: Getty Images.
Second, AbbVie stock has been highly prized among investors for its all-star dividend program. Since its split from Abbott, the drugmaker has raised its dividend at a compound annual growth rate of 11.94%. That's one of the fastest dividend growth rates within the entire group of Dividend Kings.
However, the company's decade-plus era of ultra-high growth has abruptly come to an end this year as a result of Humira biosimilars entering the U.S. market. Although management appears confident that this down period won't last more than two years, the biopharma should still consider a dividend reduction.
An undeniable trend
When analysts break down why a company may want to consider a dividend reduction, the argument usually centers around metrics such as free cash flow, the payout ratio, the debt-to-equity ratio, etc. And there's a case to be made for AbbVie slashing its dividend based on some of these key financial metrics.
Its payout ratio of 162.8% and long-term debt-to-equity ratio of 459.9% aren't exactly confidence-inspiring, after all. But there's another, lesser-known reason for AbbVie to consider taking such a drastic measure.
With a forward-looking annualized yield of 4.49%, AbbVie's dividend sits in a precarious spot from a risk premium standpoint. Specifically, Dividend Kings with yields greater than 3.8% all lost shareholders money over the prior 12 months. What's more, stocks on this list with yields greater than the S&P 500 average all failed to produce market-beating returns over this period. Peer-reviewed academic studies on the subject have generally attributed this phenomenon to the perceived risk premium associated with above-average dividend yields.
In short, AbbVie's yield, which is almost 3x higher than the S&P 500 average, doesn't bode well for its share-price appreciation prospects in the near term, especially with the company's top and bottom lines moving in the wrong direction. A dividend reduction would improve this situation and also allow the company to redirect capital toward value-creating activities such as deleveraging its balance sheet, business development, and/or accelerating the development of key pipeline candidates.
Final thoughts
Will AbbVie cut the dividend? It's highly unlikely.
The company seems intent on working through this Humira patent cliff in order to maintain its status as a world-class dividend stock. Management has also repeatedly expressed its confidence in the ability of newer immunology offerings, like Skyrizi and Rinvoq, to offset Humira's declining revenue in fairly short order. If that plan works out, a dividend cut won't prove necessary.
Investors, though, should bear in mind that AbbVie is attempting to do something very few pharma companies have been able to successfully achieve. History is replete with pharma companies that thought they had a solid succession plan in place for their flagship medication, only to get thrown off track by unexpected setbacks. Examples include AstraZeneca and Prilosec, Teva Pharmaceutical Industries and Copaxone, GSK and Advair, among many others.
Moreover, several big pharmas are angling to cut into AbbVie's immunology market share with novel compounds, such as TL1A therapeutics. AbbVie, with its deep experience and robust pipeline in the space, may be able to stave off these competitive threats, but it's far from a sure thing.
Until AbbVie definitively proves that its succession plan for Humira will pan out, its shares are probably going to lag behind the broader markets. A dividend cut won't change this fact but would provide additional capital to the company to ramp up its growth initiatives.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In short, AbbVie's yield, which is almost 3x higher than the S&P 500 average, doesn't bode well for its share-price appreciation prospects in the near term, especially with the company's top and bottom lines moving in the wrong direction. Since its split from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has been the third best-performing stock in terms of total returns on capital (assuming the dividend was reinvested) on the esteemed list of Dividend Kings. These special companies have raised their dividends for at least 50 years, and AbbVie inherited this status from its former parent company Abbott. | Since its split from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has been the third best-performing stock in terms of total returns on capital (assuming the dividend was reinvested) on the esteemed list of Dividend Kings. These special companies have raised their dividends for at least 50 years, and AbbVie inherited this status from its former parent company Abbott. AbbVie's top-shelf performance has been due to two main factors. | Since its split from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has been the third best-performing stock in terms of total returns on capital (assuming the dividend was reinvested) on the esteemed list of Dividend Kings. These special companies have raised their dividends for at least 50 years, and AbbVie inherited this status from its former parent company Abbott. Second, AbbVie stock has been highly prized among investors for its all-star dividend program. | Second, AbbVie stock has been highly prized among investors for its all-star dividend program. Since its split from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has been the third best-performing stock in terms of total returns on capital (assuming the dividend was reinvested) on the esteemed list of Dividend Kings. These special companies have raised their dividends for at least 50 years, and AbbVie inherited this status from its former parent company Abbott. |
22008.0 | 2023-11-30 00:00:00 UTC | Health Care Sector Update for 11/30/2023: IMGN, ABBV, XENE, CALT, XLV, IBB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-11-30-2023%3A-imgn-abbv-xene-calt-xlv-ibb | nan | nan | Health care stocks were gaining premarket Thursday with the iShares Biotechnology ETF (IBB) advancing by 0.7% recently while the Health Care Select Sector SPDR Fund (XLV) was up 0.3%.
ImmunoGen (IMGN) was rallying by over 83% amid an agreement for AbbVie (ABBV) to acquire ImmunoGen and its ovarian cancer therapy Elahere. The deal will value ImmunoGen at about $10.1 billion.
Xenon Pharmaceuticals (XENE) was up more than 4% after it priced an underwritten public offering of 8.5 million shares of its common stock at $32.50 per share for expected gross proceeds of $300 million.
Calliditas Therapeutics (CALT) said it launched a phase 2 clinical trial to evaluate setanaxib in patients with Alport syndrome, a disease that damages the blood vessels in the kidneys. Calliditas Therapeutics was down 1.2% pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ImmunoGen (IMGN) was rallying by over 83% amid an agreement for AbbVie (ABBV) to acquire ImmunoGen and its ovarian cancer therapy Elahere. Health care stocks were gaining premarket Thursday with the iShares Biotechnology ETF (IBB) advancing by 0.7% recently while the Health Care Select Sector SPDR Fund (XLV) was up 0.3%. Xenon Pharmaceuticals (XENE) was up more than 4% after it priced an underwritten public offering of 8.5 million shares of its common stock at $32.50 per share for expected gross proceeds of $300 million. | ImmunoGen (IMGN) was rallying by over 83% amid an agreement for AbbVie (ABBV) to acquire ImmunoGen and its ovarian cancer therapy Elahere. Health care stocks were gaining premarket Thursday with the iShares Biotechnology ETF (IBB) advancing by 0.7% recently while the Health Care Select Sector SPDR Fund (XLV) was up 0.3%. Calliditas Therapeutics (CALT) said it launched a phase 2 clinical trial to evaluate setanaxib in patients with Alport syndrome, a disease that damages the blood vessels in the kidneys. | ImmunoGen (IMGN) was rallying by over 83% amid an agreement for AbbVie (ABBV) to acquire ImmunoGen and its ovarian cancer therapy Elahere. Health care stocks were gaining premarket Thursday with the iShares Biotechnology ETF (IBB) advancing by 0.7% recently while the Health Care Select Sector SPDR Fund (XLV) was up 0.3%. Calliditas Therapeutics (CALT) said it launched a phase 2 clinical trial to evaluate setanaxib in patients with Alport syndrome, a disease that damages the blood vessels in the kidneys. | ImmunoGen (IMGN) was rallying by over 83% amid an agreement for AbbVie (ABBV) to acquire ImmunoGen and its ovarian cancer therapy Elahere. Health care stocks were gaining premarket Thursday with the iShares Biotechnology ETF (IBB) advancing by 0.7% recently while the Health Care Select Sector SPDR Fund (XLV) was up 0.3%. The deal will value ImmunoGen at about $10.1 billion. |
22009.0 | 2023-11-30 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, J&J, Eli Lilly, Pfizer | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-jj-eli-lilly-pfizer | nan | nan | For Immediate Release
Chicago, IL – November 30, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE.
Here are highlights from Wednesday’s Analyst Blog:
4 Large Drug Stocks to Watch as IBD Market Gains Traction
In recent years, there has been a surge in the prevalence of gastrointestinal disorders, particularly inflammatory bowel disease (IBD). It includes two conditions, Crohn's disease (“CD") and ulcerative colitis (“UC”), both characterized by chronic inflammation in the gastrointestinal tract.
There has been a consistent rise in ulcerative colitis and Crohn's disease cases due to genetic factors, environmental factors and lifestyle changes. In addition, immune system irregularities, higher diagnosis rates, increased focus on early diagnosis and favorable reimbursement policies in developed countries are driving demand for IBD treatments. According to a report by Fortune Business Insights, the global IBD market is expected to witness a CAGR of 5.7% from 2023 to 2030.
Several big drugmakers have products to treat UC and CD and are also developing new medicines with novel mechanisms of action to help patients achieve long-term clinical remission. Some of the key players are AbbVie, J&J, Eli Lilly, Pfizer, Novartis, Merck, Sanofi, Gilead and Amgen. Some of these companies have also in-licensed rights to IBD candidates with improved clinical profiles from smaller drugmakers in the past 2-3 years.
For example, in June, Merck acquired small biotech Prometheus Biosciences, which added MK-7240 (formerly PRA023) to its pipeline. MK-7240, a novel TL1A inhibitor, is being developed for the treatment of immune-mediated diseases, including UC, CD and other autoimmune conditions. In October, Sanofi in-licensed rights to jointly develop and commercialize Teva Pharmaceutical’s IBD candidate, TEV’574, also an anti-TL1A therapy. TEV’574 is presently being evaluated in a phase IIb study for UC and CD.
Out of the abovementioned companies, we are discussing four big drugmakers in detail. We believe these have the potential to make the most of the prospects in this growing healthcare segment.
AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. Its newer immunology products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. Rinvoq is approved for both CD and UC. While Skyrizi is approved for CD, regulatory applications for UC are under review in the United States, with approval anticipated in 2024.
With approvals for many new indications, sales of these drugs could be higher in future quarters. These have the potential to replace blockbuster drug Humira, which has started facing generic erosion in the United States since early 2023. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027
J&J also boasts a strong immunology portfolio with drugs like Stelara and Tremfya. Stelara, a much older drug, is already approved to treat CD and UC. Stelara is also being studied for pediatric ulcerative colitis and pediatric Crohn's Disease in phase III studies. Stelara generated sales of more than $8 billion in the first nine months of 2023.
J&J’s other successful and rather newer immunology drug is Tremfya, which recorded sales of $2.2 billion in the first nine months of 2023. Tremfya, now approved for psoriasis, is in phase III development for CD and UC. J&J expects Tremfya to be a $5 billion product with potential approvals in CD and UC.
Eli Lilly gained FDA approval for Omvoh (mirikizumab) in October for the treatment of moderately to severely active UC in adults. It was the first Lilly drug to be approved for a type of IBD in the United States and is important for the growth of its immunology portfolio.
Omvoh is expected to be launched in the United States in a few weeks.It has already been launched in Japan and the EU for the UC indication, with planned additional launches in the EU later this year.The drug is in late-stage development for Crohn's disease,with regulatory applications expected to be filed in 2024.
Pfizer gained FDA approval for its oral, once-daily, selective sphingosine-1-phosphate (S1P) receptor modulator called Velsipity (etrasimod) to treat moderately to severely active UC in October. Etrasimod is also in late-stage development for CD. Etrasimod was added to Pfizer’s inflammation and immunology portfolio with the March 2022 acquisition of Arena Pharmaceuticals.
Other than these four companies, Amgen is developing efavaleukin alfa for UC in mid-stage studies and Gilead plans to initiate a phase II study on an oral first-in-class TPL-2 inhibitor for ulcerative colitis later this year.
Conclusion
Investors keen on opportunities in the healthcare space should closely monitor the growth trajectory of the IBD market as it holds great promise. The evolving treatment landscape, driven by innovative therapies and a focus on early diagnosis, positions the market for sustained growth in the coming years. As the demand for effective and patient-centric IBD treatments rises, investment in this dynamic sector could prove to be rewarding.
AbbVie, J&J, Lilly and Pfizer have a Zacks Rank #3 (Hold) each currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE. Some of the key players are AbbVie, J&J, Eli Lilly, Pfizer, Novartis, Merck, Sanofi, Gilead and Amgen. AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. | Stocks recently featured in the blog include: AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some of the key players are AbbVie, J&J, Eli Lilly, Pfizer, Novartis, Merck, Sanofi, Gilead and Amgen. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE. Some of the key players are AbbVie, J&J, Eli Lilly, Pfizer, Novartis, Merck, Sanofi, Gilead and Amgen. | Stocks recently featured in the blog include: AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE. Some of the key players are AbbVie, J&J, Eli Lilly, Pfizer, Novartis, Merck, Sanofi, Gilead and Amgen. AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. |
22010.0 | 2023-11-30 00:00:00 UTC | Is it a Good Idea to Invest in Harpoon (HARP) Stock Now? | ABBV | https://www.nasdaq.com/articles/is-it-a-good-idea-to-invest-in-harpoon-harp-stock-now | nan | nan | Harpoon Therapeutics HARP develops a novel class of T cell engagers, leveraging its proprietary Tri-specific T cell Activating Construct (TriTAC) platform. The company has made significant progress in the development of its key pipeline candidates, HPN328 and HPN217, in recent months.
In October, Harpoon Therapeutics presented positive interim data from a phase I/II study of T cell engager HPN328 in patients with small cell lung cancer (SCLC) and other neuroendocrine tumor types (such as prostate cancer, small cell cervical, small cell bladder, and large cell lung cancer) at the European Society for Medical Oncology. The preliminary response data for all tumor types and patient cohorts treated with 1 mg priming dose was 35%, including three confirmed complete responses. In SCLC, the confirmed response rate was 32%, while in other neuroendocrine tumor types, the confirmed response rate was 42%.
This was the largest data set so far for HPN328, showing compelling activity of HPN328 with the potential for best-in-class efficacy. The clinical benefit observed in the study, particularly the response data in the 1 mg priming dose cohorts, was encouraging. Based on this data, Harpoon plans to select the recommended phase II dose or doses by the of this year to study multiple tumor types like SCLC and other neuroendocrine tumor types. Harpoon will meet with regulators in the first half of 2024 to discuss its development plans for HPN328.
Harpoon is also conducting a phase I/II dose escalation study evaluating the combination therapy of HPN328 with Roche’s Tecentriq in patients with SCLC.
In October, Harpoon completed financing supported by a top-tier investor syndicate for up to approximately $150 million, which it believes will extend its cash runway into 2026. The financing will also fund its late-stage clinical studies of HPN 328 in multiple tumors.
Another important pipeline candidate is HPN217, which is being developed in a phase I study for relapsed, refractory multiple myeloma (RRMM). In September, HPN217 demonstrated early and durable responses at the target dose of 12 mg. Earlier, AbbVie ABBV had an option agreement to in-license the worldwide exclusive license to the HPN217 program. However, in September, AbbVie terminated the option agreement and Harpoon now exclusively owns the program.
Harpoon’s stock has risen 39.3% so far this year against a decrease of 12.9% for the industry.
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Harpoon Therapeutics has a Zacks Rank #2 (Buy) currently. In the past 60 days, estimates for Harpoon Therapeutics’ 2023 loss per share have narrowed from $5.83 to $1.93. During the same period, loss per share estimates for 2024 have improved from $5.60 to $3.23 per share.
Harpoon Therapeutics’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 47.59%.
Harpoon Therapeutics, Inc. Price and Consensus
Harpoon Therapeutics, Inc. price-consensus-chart | Harpoon Therapeutics, Inc. Quote
Other Stocks to Consider
Some other top-ranked drug/biotech companies worth considering are Novo Nordisk NVO and Dynavax Technologies Corporation DVAX. While Novo Nordisk sports a Zacks Rank #1 (Strong Buy), Dynavax Technologies has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.57 to $2.62 over the past 30 days. Estimates for 2024 have jumped from $2.99 per share to $3.07 over the same timeframe. NVO’s stock has surged 50.5% year to date.
Earnings of Novo Nordisk beat estimates in two of the last four quarters, missed in one and matched estimates in one, delivering an earnings surprise of 0.58% on average.
In the past 30 days, estimates for Dynavax Technologies’ 2023 loss per share have narrowed from 22 cents to 12 cents. During the same period, earnings per share estimates for 2024 have improved from 8 cents to 18 cents. Year to date, shares of DVAX have rallied 25.5%.
DVAX’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 293.21%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier, AbbVie ABBV had an option agreement to in-license the worldwide exclusive license to the HPN217 program. However, in September, AbbVie terminated the option agreement and Harpoon now exclusively owns the program. Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report To read this article on Zacks.com click here. Earlier, AbbVie ABBV had an option agreement to in-license the worldwide exclusive license to the HPN217 program. However, in September, AbbVie terminated the option agreement and Harpoon now exclusively owns the program. | Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report To read this article on Zacks.com click here. Earlier, AbbVie ABBV had an option agreement to in-license the worldwide exclusive license to the HPN217 program. However, in September, AbbVie terminated the option agreement and Harpoon now exclusively owns the program. | Earlier, AbbVie ABBV had an option agreement to in-license the worldwide exclusive license to the HPN217 program. However, in September, AbbVie terminated the option agreement and Harpoon now exclusively owns the program. Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22011.0 | 2023-11-30 00:00:00 UTC | AbbVie (ABBV) Posts Encouraging Data From Lung Cancer Study | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-posts-encouraging-data-from-lung-cancer-study | nan | nan | AbbVie ABBV announced top-line data from the single-arm phase II LUMINOSITY study on its investigational antibody-drug conjugate (ADC) candidate, telisotuzumab-vedotin (Teliso-V), in previously treated non-small cell lung cancer (NSCLC) patients with c-Met overexpression.
Management split its analysis between patients with high and intermediate c-Met expression. Data from the study showed that study participants treated with Teliso V achieved an overall response rate (ORR) of 35% across c-Met high patients and 23% across c-Met intermediate patients.
These results were lower than the interim results shared by AbbVie last year in January, wherein response rates of 53.8% and 25% were reported across c-Met high and c-Met intermediate patients, respectively.
Despite lower results, treatment with Teliso-V achieved meaningful clinical outcomes in other endpoints of the LUMINOSITY study, including median duration of response (DoR) and median overall survival (OS). Treatment with Teliso-V achieved a median DoR of 9 months and 7.2 months and a median OS of 14.6 months and 14.2 months across c-Met high and c-Met intermediate patients, respectively. The safety profile of Teliso-V was consistent with previous findings and no new safety concerns were identified.
AbbVie plans to discuss the above results with the FDA and other regulatory authorities across the globe with the intent to seek accelerated approval for Teliso-V in c-Met overexpressing NSCLC.
Year to date, shares of AbbVie have declined 14.3% against the industry‘s 3.8% rise.
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Per management, c-Met overexpression is found in 25% of advanced EGFR wild-type NSCLC patients and is also associated with a poor prognosis for these patients. Currently, there are no approved therapies for patients with c-Met overexpressing NSCLC.
Teliso-V has been developed by AbbVie to target c-Met protein, which is overexpressed in many solid tumors, including NSCLC. Management is evaluating Teliso-V as a monotherapy in the late-stage TeliMET NSCLC-01 study in patients with previously treated c-Met overexpressing EGFR wild-type non-squamous NSCLC.
AbbVie is conducting an early-stage study evaluating Teliso-V in combination with several other approved drugs, including AstraZeneca’s AZN EGFR inhibitor Tagrisso (osimertinib) across a range of c-Met-expressing solid tumors.
One of AstraZeneca’s blockbuster drugs, Tagrisso is approved by the FDA to treat certain types of EGFR+ non-small cell lung cancer (NSCLC) indications. In the first nine months of 2023, AstraZeneca recorded $4.4 billion from Tagrisso product sales.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Key Picks
AbbVie currently carries a Zacks Rank #3 (Hold).A couple of better-ranked stocks in the overall healthcare sector include CytomX Therapeutics CTMX and Puma Biotechnology PBYI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for CytomX Therapeutics’ 2023 loss per share have improved from 37 cents to 6 cents. During the same period, the loss estimates per share for 2024 have narrowed from 51 cents to 21 cents. Shares of CytomX have lost 16.9% in the year-to-date period.
CytomX Therapeutics’ earnings beat estimates in three of the last four quarters while missing the estimates on one occasion. On average, the company witnessed an average surprise of 45.44%. In the last reported quarter, CytomX Therapeutics’ earnings beat estimates by 123.53%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have increased from 67 cents to 73 cents. During the same period, the earnings estimates per share for 2024 have risen from 55 cents to 62 cents. Shares of PBYI have lost 8.3% in the year-to-date period.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while meeting the mark on one occasion, witnessing an average surprise of 76.55%. In the last reported quarter, Puma Biotechnology’s earnings beat estimates by 13.33%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV announced top-line data from the single-arm phase II LUMINOSITY study on its investigational antibody-drug conjugate (ADC) candidate, telisotuzumab-vedotin (Teliso-V), in previously treated non-small cell lung cancer (NSCLC) patients with c-Met overexpression. AbbVie is conducting an early-stage study evaluating Teliso-V in combination with several other approved drugs, including AstraZeneca’s AZN EGFR inhibitor Tagrisso (osimertinib) across a range of c-Met-expressing solid tumors. These results were lower than the interim results shared by AbbVie last year in January, wherein response rates of 53.8% and 25% were reported across c-Met high and c-Met intermediate patients, respectively. | AbbVie ABBV announced top-line data from the single-arm phase II LUMINOSITY study on its investigational antibody-drug conjugate (ADC) candidate, telisotuzumab-vedotin (Teliso-V), in previously treated non-small cell lung cancer (NSCLC) patients with c-Met overexpression. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report To read this article on Zacks.com click here. These results were lower than the interim results shared by AbbVie last year in January, wherein response rates of 53.8% and 25% were reported across c-Met high and c-Met intermediate patients, respectively. | These results were lower than the interim results shared by AbbVie last year in January, wherein response rates of 53.8% and 25% were reported across c-Met high and c-Met intermediate patients, respectively. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold).A couple of better-ranked stocks in the overall healthcare sector include CytomX Therapeutics CTMX and Puma Biotechnology PBYI, each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report To read this article on Zacks.com click here. | These results were lower than the interim results shared by AbbVie last year in January, wherein response rates of 53.8% and 25% were reported across c-Met high and c-Met intermediate patients, respectively. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold).A couple of better-ranked stocks in the overall healthcare sector include CytomX Therapeutics CTMX and Puma Biotechnology PBYI, each sporting a Zacks Rank #1 (Strong Buy). AbbVie ABBV announced top-line data from the single-arm phase II LUMINOSITY study on its investigational antibody-drug conjugate (ADC) candidate, telisotuzumab-vedotin (Teliso-V), in previously treated non-small cell lung cancer (NSCLC) patients with c-Met overexpression. |
22012.0 | 2023-11-30 00:00:00 UTC | Health Care Sector Update for 11/30/2023: JNJ, SNGX, ABBV, IMGN | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-11-30-2023%3A-jnj-sngx-abbv-imgn | nan | nan | Health care stocks were advancing late Thursday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.9%.
The iShares Biotechnology ETF (IBB) rose 1.1%.
In corporate news, Johnson & Johnson's (JNJ) MedTech unit said Thursday it has completed the $400 million acquisition of privately held medical device maker Laminar. Johnson & Johnson shares rose 1.8%.
Soligenix (SNGX) shares soared 143% after it said Thursday that the US Food and Drug Administration has cleared its investigational new drug application for a phase 2a trial of SGX945, or dusquetide, as a potential treatment for aphthous ulcers in Behcet's Disease.
AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 82% and AbbVie was up 2.8%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 82% and AbbVie was up 2.8%. In corporate news, Johnson & Johnson's (JNJ) MedTech unit said Thursday it has completed the $400 million acquisition of privately held medical device maker Laminar. | AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 82% and AbbVie was up 2.8%. Health care stocks were advancing late Thursday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.9%. | AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. ImmunoGen shares surged 82% and AbbVie was up 2.8%. Health care stocks were advancing late Thursday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.9%. | ImmunoGen shares surged 82% and AbbVie was up 2.8%. AbbVie (ABBV) and ImmunoGen (IMGN) said Thursday that they have signed an agreement for AbbVie to buy ImmunoGen and its ovarian cancer therapy Elahere. Health care stocks were advancing late Thursday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.9%. |
22013.0 | 2023-11-30 00:00:00 UTC | This Combination of 3 Stocks Provides Monthly Income | ABBV | https://www.nasdaq.com/articles/this-combination-of-3-stocks-provides-monthly-income | nan | nan | Receiving steady dividend payouts is always a great feeling, as paydays are always the best. Of course, most dividends are paid quarterly.
However, by targeting companies that pay out dividends in different months, investors can construct a portfolio that allows them to get paid monthly.
For example –
The first stock pays dividends in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December.
As we can see, this type of portfolio would undoubtedly be attractive to income-focused investors.
Interestingly enough, three stocks – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – would allow investors to reap a monthly income. Let’s take a closer look at each one.
Cardinal Health
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers, and manufacturers. The company’s dividends are paid in January, April, July, and October.
The stock is currently a Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year particularly notable, up 15% over the last year and suggesting year-over-year growth of 20%.
Image Source: Zacks Investment Research
CAH shares presently yield a solid 1.9% annually paired with a sustainable payout ratio sitting at 32% of its earnings. The company has long displayed a shareholder-friendly nature, further reflected by its inclusion into the elite Dividend Aristocrats group.
In addition, it’s worth noting that CAH shares have been big-time outperformers as of late, up nearly 23% over the last three months and seeing notable buying pressure following its latest quarterly release.
Image Source: Zacks Investment Research
Concerning the release, Cardinal Health exceeded the Zacks Consensus EPS Estimate by 23% and posted a modest revenue surprise, with both items showing notable growth relative to the year-ago figures. And to top off the results, the company raised its FY24 guidance, now expecting diluted EPS in a band of $6.75 - $7.00 (previously $6.50 - $6.75).
AbbVie
AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. The company currently holds the rank of a Dividend King, showing an unparalleled commitment to shareholders.
ABBV shares yield a sizable 4.3% annually, well above its respective Zacks – Large Cap Pharmaceutical industry average of 2.2%. The company has increased its payout six times over the last five years, translating to a solid 9.1% five-year annualized dividend growth rate.
Please note that the chart below is on an annual basis. ABBV pays dividends in February, May, August, and November.
Image Source: Zacks Investment Research
The company jumped into the news recently following the announcement of an acquisition of ImmunoGen and its flagship cancer therapy, ELAHERE. The acquisition is expected to accelerate AbbVie’s entry into the commercial market for ovarian cancer, anticipated to close in the middle of 2024 and valued at roughly $10.1 billion.
Archer Daniels Midland
Archer Daniels Midland is one of the leading producers of food and beverage ingredients and goods made from various agricultural products. The company’s dividends are paid in March, June, September, and December.
Like CAH, analysts have been notably bullish surrounding its current year outlook, with the $7.26 Zacks Consensus EPS Estimate up 14% over the last year.
Image Source: Zacks Investment Research
ADM shares presently yield 2.5% annually, with the payout growing by 6% annualized over the last five years. The company is also a member of the Dividend Aristocrats club.
Image Source: Zacks Investment Research
Bottom Line
Dividends provide a nice boost, limiting the impact of drawdowns in other positions and providing passive income.
And if investors select their stocks in a structured manner, they can create a portfolio that pays them monthly.
When combined, all three stocks above – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – construct a portfolio that allows monthly income.
In addition, all three have consistently boosted their payouts over the years, providing investors with strong reliability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The acquisition is expected to accelerate AbbVie’s entry into the commercial market for ovarian cancer, anticipated to close in the middle of 2024 and valued at roughly $10.1 billion. Interestingly enough, three stocks – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – would allow investors to reap a monthly income. AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | When combined, all three stocks above – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – construct a portfolio that allows monthly income. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Interestingly enough, three stocks – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – would allow investors to reap a monthly income. | When combined, all three stocks above – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – construct a portfolio that allows monthly income. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Interestingly enough, three stocks – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – would allow investors to reap a monthly income. | Interestingly enough, three stocks – Cardinal Health CAH, AbbVie ABBV, and Archer Daniels Midland ADM – would allow investors to reap a monthly income. AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. ABBV shares yield a sizable 4.3% annually, well above its respective Zacks – Large Cap Pharmaceutical industry average of 2.2%. |
22014.0 | 2023-11-30 00:00:00 UTC | Why Abbvie Stock Popped Today | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-popped-today | nan | nan | The big asset buy in the healthcare industry provided a healthy pop to the two companies involved on Thursday. The stock price of the buyer, sector mainstay AbbVie (NYSE: ABBV), enjoyed a nearly 3% lift after the news was announced, contrasting quite favorably to the sagging S&P 500 index's 0.7% slip.
AbbVie is buying ImmunoGen
Before market open that day, AbbVie and ImmunoGen (NASDAQ: IMGN) announced in a joint press release that the former company is to acquire the latter. AbbVie is to pay $31.26 per share in cash for ImmunoGen in a transaction valued at roughly $10.1 billion. That per-share figure is nearly double ImmunoGen's closing price on Wednesday, indicating AbbVie's thirst for the deal.
ImmunoGen is a biotech company that focuses on cancer therapies. It has been in the news this year; in May, it reported that one of the drugs it's developed, Elahere, had performed well in a late-stage clinical trial to treat a certain type of ovarian cancer. The drug received its first approval from the Food and Drug Administration just over one year ago.
It isn't surprising that a company deeply involved in the hot and very competitive oncology segment would be sold at a premium.
AbbVie is eager to expand its presence in this field; in the press release, the company's CEO, Richard Gonzalez, was quoted as saying that the deal "demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies.
The deal should close next year
In the press release, AbbVie and ImmunoGen revealed that the boards of directors of both companies approved the acquisition. It is now subject to ratification by ImmunoGen shareholders, in addition to approval from the relevant regulatory bodies. The two companies expect the sale to close in mid-2024.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock price of the buyer, sector mainstay AbbVie (NYSE: ABBV), enjoyed a nearly 3% lift after the news was announced, contrasting quite favorably to the sagging S&P 500 index's 0.7% slip. The deal should close next year In the press release, AbbVie and ImmunoGen revealed that the boards of directors of both companies approved the acquisition. AbbVie is buying ImmunoGen Before market open that day, AbbVie and ImmunoGen (NASDAQ: IMGN) announced in a joint press release that the former company is to acquire the latter. | AbbVie is buying ImmunoGen Before market open that day, AbbVie and ImmunoGen (NASDAQ: IMGN) announced in a joint press release that the former company is to acquire the latter. The deal should close next year In the press release, AbbVie and ImmunoGen revealed that the boards of directors of both companies approved the acquisition. The stock price of the buyer, sector mainstay AbbVie (NYSE: ABBV), enjoyed a nearly 3% lift after the news was announced, contrasting quite favorably to the sagging S&P 500 index's 0.7% slip. | AbbVie is buying ImmunoGen Before market open that day, AbbVie and ImmunoGen (NASDAQ: IMGN) announced in a joint press release that the former company is to acquire the latter. AbbVie is eager to expand its presence in this field; in the press release, the company's CEO, Richard Gonzalez, was quoted as saying that the deal "demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies. The deal should close next year In the press release, AbbVie and ImmunoGen revealed that the boards of directors of both companies approved the acquisition. | The deal should close next year In the press release, AbbVie and ImmunoGen revealed that the boards of directors of both companies approved the acquisition. The stock price of the buyer, sector mainstay AbbVie (NYSE: ABBV), enjoyed a nearly 3% lift after the news was announced, contrasting quite favorably to the sagging S&P 500 index's 0.7% slip. AbbVie is buying ImmunoGen Before market open that day, AbbVie and ImmunoGen (NASDAQ: IMGN) announced in a joint press release that the former company is to acquire the latter. |
22015.0 | 2023-11-30 00:00:00 UTC | AbbVie Stock (NYSE:ABBV): Bet on a Smart Drugmaker and Dealmaker | ABBV | https://www.nasdaq.com/articles/abbvie-stock-nyse%3Aabbv%3A-bet-on-a-smart-drugmaker-and-dealmaker | nan | nan | Is AbbVie (NYSE:ABBV) a drugmaker to wager on now? I believe it's a very smart move to consider buying a few shares, especially in light of recent positive news about AbbVie. So, I am bullish on ABBV stock because there are identifiable catalysts that could lead to major share price appreciation.
AbbVie is a large American drug manufacturer with a market cap that's slightly over $250 billion. It's often been considered a relatively safe company to invest in, and passive income seekers are certainly happy to collect AbbVie's hefty dividend distributions every quarter.
However, 2023 hasn't been a stellar year for ABBV stock. On the other hand, the stock was firmly in the green in the most recent trading session, and after discovering some of the good news, you might choose to take a moderately-sized share position in the stock.
A Win for Patients and for AbbVie's Shareholders
Some stock traders might consider this to be the less important of two recent news items. However, it's still highly significant for AbbVie and for the medical community. Specifically, AbbVie disclosed positive results from a Phase 2 clinical trial for Teliso-V, a cancer drug. Actually, Teliso-V is only one of two drugs that AbbVie is currently developing for non-small cell lung cancer. However, AbbVie's other proposed drug for this disease, Livmoniplimab, is only in Phase 1 of its clinical trials.
Frankly, I'm surprised that ABBV stock only moved slightly higher yesterday on the Teliso-V update. Encouragingly, AbbVie found a "compelling" 35% overall response rate in patients with c-Met High and a 23% response rate in patients with c-Met intermediate.
Perhaps the market just wants to wait for AbbVie to get full Food and Drug Administration (FDA) approval for Teliso-V. I feel that this is the wrong investment strategy, though. If and when AbbVie gets FDA approval for this cancer treatment, ABBV stock would probably shoot higher immediately. There would be hardly any time for retail traders to respond.
In other words, it's still not too late to think about holding a few shares of AbbVie stock. Just one regulatory approval could send it to new heights after a year in the doldrums.
AbbVie Makes Significant Acquisition for Promising Cancer Therapies
As it turns out, Teliso-V and Livmoniplimab won't be the only notable cancer therapy candidates in AbbVie's pipeline. That's because AbbVie is acquiring biotechnology company ImmunoGen (NASDAQ:IMGN) for $31.26 per share in cash, or roughly $10.1 billion in total.
ABBV stock moved up a couple of percentage points on the news, but it still has plenty of room to run, in my opinion. That's because the proposed Immunogen acquisition will, according to AbbVie, "accelerate" the company's "entry into the commercial market for ovarian cancer."
To be careful, I'm calling it a "proposed" acquisition, but it's practically a done deal. The boards of directors of AbbVie and ImmunoGen have approved the acquisition, and it's expected to close in the middle of next year.
It's not difficult to figure out why AbbVie would be willing to pay more than $10 billion for ImmunoGen's assets. Indeed, AbbVie clearly spelled out the benefits. ImmunoGen's Elahere (mirvetuximab soravtansine-gynx) is the "first targeted medicine to show meaningful survival benefit in platinum-resistant ovarian cancer."
Furthermore, AbbVie anticipates that Elahere will provide the company with a "potential multi-billion-dollar on-market medicine with expansion opportunities in earlier lines of therapy and larger segments of the ovarian cancer market." In other words, a $10.1 billion investment in ImmunoGen now could yield huge returns for AbbVie, as well as life-changing results for certain cancer patients.
Is AbbVie Stock a Buy, According to Analysts?
On TipRanks, ABBV comes in as a Moderate based on eight Buys and five Hold ratings assigned by analysts in the past three months. The average AbbVie stock price target is $168.15, implying 18.1% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell ABBV stock, the most accurate analyst covering the stock (on a one-year timeframe) is Chris Schott of JPMorgan (NYSE:JPM), with an average return of 17.9% per rating and a 79% success rate. Click on the image below to learn more.
Conclusion: Should You Consider AbbVie Stock?
AbbVie already has promising cancer treatments in the pipeline. However, the proposed Immunogen acquisition could materially expand AbbVie's lineup of cancer-fighting drug candidates. Therefore, I view AbbVie as a drugmaker that's willing to make a smart deal to augment its profit potential. Consequently, I'm bullish on ABBV stock and would definitely consider owning a few shares.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It's often been considered a relatively safe company to invest in, and passive income seekers are certainly happy to collect AbbVie's hefty dividend distributions every quarter. Furthermore, AbbVie anticipates that Elahere will provide the company with a "potential multi-billion-dollar on-market medicine with expansion opportunities in earlier lines of therapy and larger segments of the ovarian cancer market." Is AbbVie (NYSE:ABBV) a drugmaker to wager on now? | Specifically, AbbVie disclosed positive results from a Phase 2 clinical trial for Teliso-V, a cancer drug. Encouragingly, AbbVie found a "compelling" 35% overall response rate in patients with c-Met High and a 23% response rate in patients with c-Met intermediate. AbbVie Makes Significant Acquisition for Promising Cancer Therapies As it turns out, Teliso-V and Livmoniplimab won't be the only notable cancer therapy candidates in AbbVie's pipeline. | If and when AbbVie gets FDA approval for this cancer treatment, ABBV stock would probably shoot higher immediately. AbbVie Makes Significant Acquisition for Promising Cancer Therapies As it turns out, Teliso-V and Livmoniplimab won't be the only notable cancer therapy candidates in AbbVie's pipeline. That's because the proposed Immunogen acquisition will, according to AbbVie, "accelerate" the company's "entry into the commercial market for ovarian cancer." | I believe it's a very smart move to consider buying a few shares, especially in light of recent positive news about AbbVie. AbbVie Makes Significant Acquisition for Promising Cancer Therapies As it turns out, Teliso-V and Livmoniplimab won't be the only notable cancer therapy candidates in AbbVie's pipeline. In other words, a $10.1 billion investment in ImmunoGen now could yield huge returns for AbbVie, as well as life-changing results for certain cancer patients. |
22016.0 | 2023-11-29 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-11 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22017.0 | 2023-11-29 00:00:00 UTC | Medtronic Stock: Bull vs. Bear | ABBV | https://www.nasdaq.com/articles/medtronic-stock%3A-bull-vs.-bear-0 | nan | nan | Medtronic (NYSE: MDT) is a medical device giant that has generated billions of dollars in earnings over time thanks to its diabetes, cardiovascular, neuroscience, and medical-surgical platforms. The company's growth stagnated in recent years, though, so management set out on a path to transform the business -- with a focus on efficiency and investing in high-growth areas.
However, the medical device leader's share price hasn't yet begun to reflect the company's positive moves. In fact, the stock hasn't done much this year, rising about 1.2%. Considering all this, is Medtronic a buy today, or would it be better to avoid the stock and seek out other opportunities? Motley Fool contributors Adria Cimino and Keith Speights offer their bull and bear cases.
Image source: Getty Images.
A bullish view on Medtronic
Adria Cimino: Though Medtronic stock hasn't yet taken off, there's reason to believe that could happen down the road -- and lead to lasting gains. That's because the company has been successfully managing its transformation and making moves that should lead to long-term growth.
For example, Medtronic is investing in high-growth areas such as artificial intelligence (AI) and robotics -- and seeing results. In its fiscal 2024 second quarter, which ended Oct. 27, the company's GI Genius platform, which is powered by AI, helped Medtronic's endoscopy business to grow by 13%.
The company also is moving closer to bringing its Hugo robotic system to U.S. operating rooms. U.S. regulators recently approved the start of a pivotal trial for Hugo in hernia surgery. More than 1 million hernia repairs are done in the U.S. annually, so this could be a significant market for Medtronic.
Management says that considering the revamp of the business, it expects to consistently deliver mid-single-digit percentage revenue growth -- and it has managed to do this for the past four quarters. The company reported that level of growth or better across its businesses in the most recent quarter, and posted strong growth across geographies, too.
So, Medtronic is on the right track when it comes to earnings. At the same time, when you invest in this medical device giant, you'll also benefit from its dividend policy. The company aims to return at least 50% of free cash flow to shareholders every year, and has put a focus on dividends.
Today, Medtronic trades at a lower price-to-forward-earnings ratio than it did a couple of years ago. At the same time, growth prospects look stronger. So, right now there's reason to be bullish on Medtronic shares.
MDT PE Ratio (Forward) data by YCharts.
The bear case against Medtronic
Keith Speights: Honestly, I can't make a scary, growling, fierce bear case against Medtronic. All in all, it's a decent company and stock. However, I can make a sleepy, drooling, flabby bear case against Medtronic.
Let's start with growth. Medtronic delivered year-over-year revenue growth of 5.3% in its latest fiscal quarter. That's perhaps slightly more exciting than watching paint dry.
What about the company's earnings more than doubling year over year? This might sound fantastic. It's important to note, though, that this seemingly impressive growth was in GAAP (generally accepted accounting principles) earnings. On a non-GAAP basis (which Wall Street watches more closely), Medtronic's earnings declined 3%. Not so fantastic.
One could reasonably argue that Medtronic is more of a stock for income investors than growth investors. As a result, the company's dividend should be viewed as more important than its growth. I agree. And I think that Medtronic's dividend yield of nearly 3.5% at the current share price is attractive. So is the medical device giant's 46-year streak of dividend increases. On the other hand, there are other stocks that offer even higher dividend yields with even more impressive records of dividend hikes. (AbbVie immediately jumps to mind.)
I'll also acknowledge that Medtronic's forward price-to-earnings multiple of 15.5 is a lot better than many stocks these days. Again, though, you won't have to look hard to find stocks with great dividends that are even more attractively valued.
The bottom line is that Medtronic is a decent stock in a market where you can buy alternatives that are a lot better than just decent. That might not constitute a scary, growling, fierce bear case against Medtronic, but it's nonetheless a valid reason for investors to look elsewhere.
Should you favor the bullish or the bearish view?
As the bear argument points out, other companies beat Medtronic when it comes to dividends and earnings growth. So Medtronic doesn't look like an absolute must-buy stock. Still, this medical device giant has the products and market position to deliver steady earnings growth over time -- and that could lead to steady share price gains, too.
Whether or not you should buy Medtronic will depend on your investment strategy. Aggressive investors will likely find better opportunities elsewhere. But cautious investors with diversified portfolios may readily scoop up shares of this medical device player for the stability of its businesses and its commitment to dividend growth.
10 stocks we like better than Medtronic
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Adria Cimino has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (AbbVie immediately jumps to mind.) Keith Speights has positions in AbbVie. Medtronic (NYSE: MDT) is a medical device giant that has generated billions of dollars in earnings over time thanks to its diabetes, cardiovascular, neuroscience, and medical-surgical platforms. | (AbbVie immediately jumps to mind.) Keith Speights has positions in AbbVie. A bullish view on Medtronic Adria Cimino: Though Medtronic stock hasn't yet taken off, there's reason to believe that could happen down the road -- and lead to lasting gains. | (AbbVie immediately jumps to mind.) Keith Speights has positions in AbbVie. A bullish view on Medtronic Adria Cimino: Though Medtronic stock hasn't yet taken off, there's reason to believe that could happen down the road -- and lead to lasting gains. | (AbbVie immediately jumps to mind.) Keith Speights has positions in AbbVie. As a result, the company's dividend should be viewed as more important than its growth. |
22018.0 | 2023-11-29 00:00:00 UTC | 4 Large Drug Stocks to Watch as IBD Market Gains Traction | ABBV | https://www.nasdaq.com/articles/4-large-drug-stocks-to-watch-as-ibd-market-gains-traction | nan | nan | In recent years, there has been a surge in the prevalence of gastrointestinal disorders, particularly inflammatory bowel disease (IBD). It includes two conditions, Crohn's disease (“CD") and ulcerative colitis (“UC”), both characterized by chronic inflammation in the gastrointestinal tract.
There has been a consistent rise in ulcerative colitis and Crohn's disease cases due to genetic factors, environmental factors and lifestyle changes. In addition, immune system irregularities, higher diagnosis rates, increased focus on early diagnosis and favorable reimbursement policies in developed countries are driving demand for IBD treatments. According to a report by Fortune Business Insights, the global IBD market is expected to witness a CAGR of 5.7% from 2023 to 2030.
Several big drugmakers have products to treat UC and CD and are also developing new medicines with novel mechanisms of action to help patients achieve long-term clinical remission. Some of the key players are AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE, Novartis, Merck, Sanofi, Gilead and Amgen. Some of these companies have also in-licensed rights to IBD candidates with improved clinical profiles from smaller drugmakers in the past 2-3 years.
For example, in June, Merck acquired small biotech Prometheus Biosciences, which added MK-7240 (formerly PRA023) to its pipeline. MK-7240, a novel TL1A inhibitor, is being developed for the treatment of immune-mediated diseases, including UC, CD and other autoimmune conditions. In October, Sanofi in-licensed rights to jointly develop and commercialize Teva Pharmaceutical’s IBD candidate, TEV’574, also an anti-TL1A therapy. TEV’574 is presently being evaluated in a phase IIb study for UC and CD.
Out of the abovementioned companies, we are discussing four big drugmakers in detail. We believe these have the potential to make the most of the prospects in this growing healthcare segment.
AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. Its newer immunology products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. Rinvoq is approved for both CD and UC. While Skyrizi is approved for CD, regulatory applications for UC are under review in the United States, with approval anticipated in 2024.
With approvals for many new indications, sales of these drugs could be higher in future quarters. These have the potential to replace blockbuster drug Humira, which has started facing generic erosion in the United States since early 2023. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027
J&J also boasts a strong immunology portfolio with drugs like Stelara and Tremfya. Stelara, a much older drug, is already approved to treat CD and UC. Stelara is also being studied for pediatric ulcerative colitis and pediatric Crohn's Disease in phase III studies. Stelara generated sales of more than $8 billion in the first nine months of 2023.
J&J’s other successful and rather newer immunology drug is Tremfya, which recorded sales of $2.2 billion in the first nine months of 2023. Tremfya, now approved for psoriasis, is in phase III development for CD and UC. J&J expects Tremfya to be a $5 billion product with potential approvals in CD and UC.
Eli Lilly gained FDA approval for Omvoh (mirikizumab) in October for the treatment of moderately to severely active UC in adults. It was the first Lilly drug to be approved for a type of IBD in the United States and is important for the growth of its immunology portfolio.
Omvoh is expected to be launched in the United States in a few weeks.It has already been launched in Japan and the EU for the UC indication, with planned additional launches in the EU later this year.The drug is in late-stage development for Crohn's disease,with regulatory applications expected to be filed in 2024.
Pfizer gained FDA approval for its oral, once-daily, selective sphingosine-1-phosphate (S1P) receptor modulator called Velsipity (etrasimod) to treat moderately to severely active UC in October. Etrasimod is also in late-stage development for CD. Etrasimod was added to Pfizer’s inflammation and immunology portfolio with the March 2022 acquisition of Arena Pharmaceuticals.
Other than these four companies, Amgen is developing efavaleukin alfa for UC in mid-stage studies and Gilead plans to initiate a phase II study on an oral first-in-class TPL-2 inhibitor for ulcerative colitis later this year.
Conclusion
Investors keen on opportunities in the healthcare space should closely monitor the growth trajectory of the IBD market as it holds great promise. The evolving treatment landscape, driven by innovative therapies and a focus on early diagnosis, positions the market for sustained growth in the coming years. As the demand for effective and patient-centric IBD treatments rises, investment in this dynamic sector could prove to be rewarding.
AbbVie, J&J, Lilly and Pfizer have a Zacks Rank #3 (Hold) each currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some of the key players are AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE, Novartis, Merck, Sanofi, Gilead and Amgen. AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027 J&J also boasts a strong immunology portfolio with drugs like Stelara and Tremfya. | Some of the key players are AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE, Novartis, Merck, Sanofi, Gilead and Amgen. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. | AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027 J&J also boasts a strong immunology portfolio with drugs like Stelara and Tremfya. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some of the key players are AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE, Novartis, Merck, Sanofi, Gilead and Amgen. | AbbVie has one of the strongest portfolios of immunology drugs and pipeline candidates. Some of the key players are AbbVie ABBV, J&J JNJ, Eli Lilly LLY, Pfizer PFE, Novartis, Merck, Sanofi, Gilead and Amgen. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027 J&J also boasts a strong immunology portfolio with drugs like Stelara and Tremfya. |
22019.0 | 2023-11-29 00:00:00 UTC | Mastering Market Trends: The 7 Best Blue-Chip Stocks for Today’s Economy | ABBV | https://www.nasdaq.com/articles/mastering-market-trends%3A-the-7-best-blue-chip-stocks-for-todays-economy | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Blue chip stocks are generally a strong investment for any stage of the economic cycle and tend to take advantage of overarching trends. That remains as true today as it was yesterday and will be tomorrow. Today’s economy is marked by a lot of unsteadiness. Prices and inflation continue to be high but appear to be improving.
The labor sector is particularly unique at the moment. Trends, including remote work, the gig economy and more, are affecting the sector in profound ways. Perhaps most importantly, artificial intelligence (AI) is here to stay. AI promises to change the economy of today and the future in profound ways. The best blue-chip stocks listed below are well-positioned for the current economy.
Microsoft (MSFT)
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Microsoft (NASDAQ:MSFT) has truly emerged as one of the very best blue chip stocks and stocks period for investors. The firm continues to dominate with products that are an integral part of the economy. Its Office Suite continues to be the gold standard and is ubiquitous among workers across all sectors and industries. Furthermore, the company has carved out a very strong space in the cloud with its Azure product suite.
You can’t mention Microsoft without mentioning AI, OpenAI and its strong pivot into artificial intelligence overall. Microsoft famously invested $13 billion in OpenAI early in 2023. That gave the company an early position in the generative AI sector that will persist.
In short, few firms are better positioned for today’s economy. Its Office Suite is essential for workers who stay in the office or work remotely. The company has applied AI to that suite of products, which promises to increase efficiency across the greater economy. Its position in all things generative AI simply makes the company a very strong choice for any investor thinking about the changes occurring across the economic realm.
Nvidia (NVDA)
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It’s fairly easy to argue that no stock is better positioned for today’s economy than Nvidia (NASDAQ:NVDA). I say that because if you ask the average person about the most important force in today’s economy, they’ll probably say AI.
Of course, Nvidia is the dominant force when it comes to artificial intelligence. Its chips, simply put, are the best for almost every AI application. That’s why the company’s H100 chips continue to be the gold standard and benefit from such strong demand.
Nvidia’s competitors had been playing catch up but none could seriously challenge its H100 chips. The gap between Nvidia and its competition is likely to widen. The company very recently announced the H200 chip. That chip is likely to be commercially available in the second quarter of 2024. That means NVDA’s strength in everything generative AI and large language models is only going to get stronger, making it arguably the number one stock of today.
3M (MMM)
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3M (NYSE:MMM) isn’t particularly well aligned with today’s economic market trends. However, it is especially undervalued among blue chip stocks. It’s worth looking at for that reason because the company is managing the situation quite well.
Anyone familiar with 3M is aware that it is facing a series of lawsuits. Those legal cases threaten to cut deeply into its earnings and have caused share prices to plummet in 2023. In fact, share prices have fallen by roughly 20% throughout the year.
The company’s earnings fell recently too, partly due to settlements for its faulty earplug lawsuit. 3M has also reached preliminary approval for a PFAS settlement. The thrust of the entire saga is that the company is largely out of the woods. Further, 3M’s dividend remains intact. That’s vitally important to its stock and overall attractiveness. Investors who can look past the moral arguments against 3M will find a lot to like in terms of value at the moment.
AbbVie (ABBV)
AbbVie (NYSE:ABBV) exemplifies how pharmaceutical firms can best navigate the inherent product cycles within the sector. The company’s ability to deftly maneuver as its blockbuster drug Humira begins to fade is the primary reason to invest in the stock.
Certainly, it isn’t out of danger yet but the company continues to move in the right direction. Humira sales, which accounted for $3.55 billion of the firm’s $13.93 billion in revenues, declined by 36% in the period. The drug anchors AbbVie’s rheumatology segment, which declined by 11.3%. While that might sound negative, Skyrizi and Rinvoq, the company’s two up-and-coming rheumatology drugs, grew at rates of 52% and 59%, respectively.
The point here is simple: AbbVie posted better-than-expected results during the quarter. It continues to show improvement and an ability to find rheumatology revenues that promise to fill the gap left as Humira comes off patent. Investing in the stock is a wise idea for income investors. ABBV shares include a dividend yielding 4.5% and the company just increased its payments by 4.7%.
Fiverr (FVRR)
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Fiverr (NYSE:FVRR) is a great stock investment for those interested in the drastic shifts in the labor market. The company runs an e-commerce platform that allows freelancers and other gig workers to bid for jobs.
Investors may be wary of Fiverr given that remote work stocks including WeWork (OTCMKTS:WEWKQ) have failed so spectacularly. But Fiverr is fundamentally different from WeWork. The companies have unique business models and most importantly, Fiverr is pivoting into profitability. WeWork was never close to it.
Fiverr released earnings a few weeks ago. Those earnings showed that revenues grew by more than 12%, reaching $92.5 million. The companies that buy services through Fiverr’s platform are spending more money. That suggests demand for gig economy workers is strengthening. It also speaks to a strong underlying business overall.
In short, there is no better stock for the gig economy than Fiverr as the company pivots into profitability — $3 million worth in Q3.
American Express (AXP)
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American Express (NYSE:AXP) benefits from a few trends that are vitally important in today’s economy. The company serves a more affluent customer base that is becoming stronger and stronger. Further, AXP services credit cards used at historic rates as cash-strapped consumers continue to charge more and more on their cards.
Investors would be hard-pressed to find a better credit card stock to invest in at the moment. American Express’ recent earnings report speaks strongly to that notion. The company reported its 6th straight quarter of record revenues, reaching $15.4 billion during the period.
The company increased its provision for credit loss by 58% to $1.23 billion. Despite that, American Express saw its income increase by 30%, reaching $2.45 billion. As American credit card debt surpasses the $1 trillion threshold, there is no firm better positioned to take advantage. AXP shares continue to prove worthiness quarter after quarter.
Salesforce (CRM)
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Salesforce (NYSE:CRM) continues to be a strong blue chip stock choice because it is very well positioned in relation to multiple economic trends.
For one, we’ve likely reached peak interest rates. That means we could soon see interest rate cuts from the Federal Reserve. In fact, the current expectation is that the Fed will cut interest rates in early to mid-2024. In doing so, the Federal Reserve will spur a period of rapid investment as cheaper lending ensues.
As a result, enterprises of all sizes will heavily invest in customer relationship management tools. Salesforce is the predominant name in that space and accounts for roughly 20% of the market. Additionally, Salesforce has invested heavily in AI and is collaborating with predominant firms in Silicon Valley to develop those tools.
It isn’t difficult to see the potential positive outcome here: Salesforce’s AI investment should lead to an increased ability to manage customer relationships. In turn, companies using its software should be able to increase their top-line results. Thus, more and more firms will buy Salesforce’s CRM, resulting in increased top-line results for the company.
On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) AbbVie (NYSE:ABBV) exemplifies how pharmaceutical firms can best navigate the inherent product cycles within the sector. The drug anchors AbbVie’s rheumatology segment, which declined by 11.3%. The point here is simple: AbbVie posted better-than-expected results during the quarter. | AbbVie (ABBV) AbbVie (NYSE:ABBV) exemplifies how pharmaceutical firms can best navigate the inherent product cycles within the sector. The drug anchors AbbVie’s rheumatology segment, which declined by 11.3%. The point here is simple: AbbVie posted better-than-expected results during the quarter. | AbbVie (ABBV) AbbVie (NYSE:ABBV) exemplifies how pharmaceutical firms can best navigate the inherent product cycles within the sector. The drug anchors AbbVie’s rheumatology segment, which declined by 11.3%. The point here is simple: AbbVie posted better-than-expected results during the quarter. | AbbVie (ABBV) AbbVie (NYSE:ABBV) exemplifies how pharmaceutical firms can best navigate the inherent product cycles within the sector. The drug anchors AbbVie’s rheumatology segment, which declined by 11.3%. The point here is simple: AbbVie posted better-than-expected results during the quarter. |
22020.0 | 2023-11-28 00:00:00 UTC | 3 Defensive Dividend Stocks to Protect Your Portfolio | ABBV | https://www.nasdaq.com/articles/3-defensive-dividend-stocks-to-protect-your-portfolio | nan | nan | After a historically bad performance during the first half of the year, dividend stocks have come under quite a bit of scrutiny lately. A new Bloomberg analysis of the dividend stock underperformance in 2023 observed, “Investors wanted exposure to companies with a history of paying out profits as a precaution amid the Federal Reserve’s most aggressive tightening cycle in 40 years. Instead they were saddled with underperforming companies that proved especially vulnerable when yields shot higher.”
Clearly, dividend stocks are facing a tough time in this market. However, it's worth pointing out that there are still some names in the group that combine consistent dividend income with steady growth. Here, we've highlighted three of those names - all top-rated by analysts, with room for upside in the year ahead.
Domino's Pizza
Domino's Pizza (DPZ) is a name synonymous with success in the pizza industry, boasting more than 20,000 locations worldwide. Founded in 1960, Domino's has evolved into a global powerhouse in the fast-food sector, with a market capitalization of approximately $12.91 billion.
Particularly noteworthy is the company's quarterly dividend of $1.21 per share, for a forward yield of 1.31%. Domino's has raised its dividend consistently for a decade, with a very sustainable payout ratio of 32% - indicating a strategic balance between rewarding shareholders and reinvesting in the business. With $80.9 million in cash and equivalents and a robust free cash flow of $362.9 million, Domino's financial resilience is evident.
Innovation is also at the forefront of Domino's strategy. Its partnership with Microsoft (MSFT) for AI-driven solutions, in-store logistics, and personalized ordering indicates a commitment to technological growth alongside income generation.
In 2023, Domino's Pizza stock has gained just about 13%. That's not quite on pace with the broader S&P 500 Index ($SPX), but it's considerably better than some of the broader dividend stock benchmarks.
www.barchart.com
In the most recent quarter, Domino's reported adjusted earnings of $4.18 per share, which topped expectations - even as revenue of $1.03 billion fell slightly short. Looking ahead, analysts are targeting 15% EPS growth for this fiscal year, followed by roughly 9% for FY 2024.
www.barchart.com
Domino's Pizza has an average "Moderate Buy" rating from 25 analysts, with 14 of those calling it a “Strong Buy." The average 12-month price target of $406.30 implies expected upside of 5% from current levels.
www.barchart.com
Home Depot
Founded in 1978, Home Depot (HD) is a major player in the home improvement retail sector, and operates over 2,300 stores across North America. The retailer caters to a diverse clientele, including DIY enthusiasts and professional contractors.
In 2023, Home Depot's stock is slightly negative on the year - lagging both the S&P 500 and the Dow Jones Industrial Average ($DOWI) - due to unfavorable macroeconomic trends and sector-specific issues that pressured both housing and retail.
www.barchart.com
Home Depot has increased its dividend annually for 14 years, and the quarterly payout now stands at $2.09 per share, offering a forward yield of 2.69%. The payout ratio stands at just 13%, indicating plenty of room for future dividend growth.
In fact, income investors will note that HD's cash from operations rose by 49% to $4.23 billion in the latest quarter, highlighting the company's effective cash management.
Meanwhile, quarterly EPS of $3.81 and revenue of $37.71 billion both topped analysts' expectations. On average, Wall Street expects HD to return to EPS growth in fiscal 2025.
www.barchart.com
The stock is a "Moderate Buy" among the 27 analysts in coverage, with 15 “Strong Buys,” 1 “Moderate Buy,” and 11 “Holds.” The average 12-month price target of $336.32 represents a premium of 8% to current levels.
www.barchart.com
AbbVie
Chicago-based AbbVie Inc. (ABBV) started out as a spin-off from Abbott Laboratories (ABT) in 2013. Specializing in pharmaceutical research and development, AbbVie focuses on immunology, oncology, neuroscience, and virology. The company's portfolio includes top drugs such as Humira, Skyrizi, and Rinvoq. Its growth strategy encompasses in-house innovation and strategic acquisitions, including the 2020 purchase of Allergan, which expanded its range to medical aesthetics.
In 2023, AbbVie's stock is down about 10% on the year, due in large part to declining sales of its key drug, Humira - which faces stiff competition from biosimilars after losing patent protection. The broader market volatility and rising interest rates have also impacted AbbVie's stock.
www.barchart.com
Despite these challenges, including a decline in Botox sales, AbbVie remains fundamentally robust, with a diverse product portfolio and significant investment in research and development. In the third quarter of 2023, ABBV reported adjusted earnings of $2.95 per share, while revenues declined by 6.0% to $13.93 billion. The results topped Wall Street's expectations, continuing a trend of bottom-line beats for ABBV.
www.barchart.com
AbbVie stands out with a strong dividend record, offering a quarterly dividend of $1.55 per share, backed by over a decade of growth. The forward yield is 4.47%, with a balanced payout ratio of 49%.
The average analyst rating for AbbVie is a "Moderate Buy," with 8 “Strong Buys” and 2 “Moderate Buys" outweighing 8 “Hold” ratings. The average 12-month price target of $171.81 implies expected upside of 23.5% from current levels.
www.barchart.com
On the date of publication, Faizan Farooque did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In 2023, AbbVie's stock is down about 10% on the year, due in large part to declining sales of its key drug, Humira - which faces stiff competition from biosimilars after losing patent protection. www.barchart.com AbbVie Chicago-based AbbVie Inc. (ABBV) started out as a spin-off from Abbott Laboratories (ABT) in 2013. Specializing in pharmaceutical research and development, AbbVie focuses on immunology, oncology, neuroscience, and virology. | The average analyst rating for AbbVie is a "Moderate Buy," with 8 “Strong Buys” and 2 “Moderate Buys" outweighing 8 “Hold” ratings. www.barchart.com AbbVie Chicago-based AbbVie Inc. (ABBV) started out as a spin-off from Abbott Laboratories (ABT) in 2013. Specializing in pharmaceutical research and development, AbbVie focuses on immunology, oncology, neuroscience, and virology. | www.barchart.com AbbVie stands out with a strong dividend record, offering a quarterly dividend of $1.55 per share, backed by over a decade of growth. www.barchart.com AbbVie Chicago-based AbbVie Inc. (ABBV) started out as a spin-off from Abbott Laboratories (ABT) in 2013. Specializing in pharmaceutical research and development, AbbVie focuses on immunology, oncology, neuroscience, and virology. | www.barchart.com Despite these challenges, including a decline in Botox sales, AbbVie remains fundamentally robust, with a diverse product portfolio and significant investment in research and development. www.barchart.com AbbVie Chicago-based AbbVie Inc. (ABBV) started out as a spin-off from Abbott Laboratories (ABT) in 2013. Specializing in pharmaceutical research and development, AbbVie focuses on immunology, oncology, neuroscience, and virology. |
22021.0 | 2023-11-28 00:00:00 UTC | Should You Invest in the Invesco Pharmaceuticals ETF (PJP)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-pharmaceuticals-etf-pjp-0 | nan | nan | Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $247.98 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index before fees and expenses.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.07%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV).
The top 10 holdings account for about 55.25% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Pharmaceuticals ETF has lost about -10.25% so far, and is down about -10.03% over the last 12 months (as of 11/28/2023). PJP has traded between $67.88 and $81.07 in this past 52-week period.
The ETF has a beta of 0.63 and standard deviation of 15.96% for the trailing three-year period, making it a high risk choice in the space. With about 25 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PJP is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. VanEck Pharmaceutical ETF has $383.77 million in assets, iShares U.S. Pharmaceuticals ETF has $567.76 million. PPH has an expense ratio of 0.36% and IHE charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV). Click to get this free report Invesco Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005. | Click to get this free report Invesco Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV). Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005. | Click to get this free report Invesco Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV). VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. | Looking at individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV). Click to get this free report Invesco Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005. |
22022.0 | 2023-11-28 00:00:00 UTC | AbbVie (ABBV) Lymphoma Drug Gets FDA Breakthrough Therapy Tag | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-lymphoma-drug-gets-fda-breakthrough-therapy-tag | nan | nan | AbbVie ABBV along with partner Genmab GMAB announcedthat the FDA has granted breakthrough therapy designation (“BTD”) to epcoritamab for treating adults with relapsed or refractory (“R/R”) follicular lymphoma (“FL”), after two or more lines of therapies.
The FDA grants BTD to expedite the development and review of therapies for severe or life-threatening diseases where preliminary clinical evidence shows that therapy may provide substantial improvements over available treatments.
Alongside the above news, AbbVie and Genmab also announced that the European Medicines Agency (“EMA”) has validated a regulatory filing for epcoritamab in the same indication. If approved, R/R FL would become the second conditionally approved indication for epcoritamab in the European Union.
Epcoritamab received accelerated approval from the FDA in May to treat R/R diffuse large B-cell lymphoma (“DLBCL”). The drug is being marketed under the trade name Epkinly. In September, the drug received was granted conditional approval in the European Union for a similar indication under the trade name Tepkinly.
The BTD and EMA filing validation were supported by data from the FL cohort of the phase I/II EPCORE NHL-1 study. Data from the study, previously reported in June, showed that patients who were treated with epcoritamab demonstrated an overall response rate of 82%, with the median duration of response yet to be reached.
Year to date, shares of AbbVie have declined 13.9% against the industry‘s 5.7% rise.
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FL is the most common form of indolent or slow-growing form of non-Hodgkin's lymphoma (“NHL”), while DLBCL is the most common form of aggressive or fast-growing form of NHL.
Epcoritamab is being developed by AbbVie in collaboration with Genmab as part of an oncology collaboration deal signed in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates.
Per the terms of the collaboration deal, AbbVie and Genmab share commercial responsibilities for epcoritamab in the United States and Japan. AbbVie is responsible for global commercialization.
AbbVie and Genmab are evaluating epcoritamab both as a monotherapy and as a combination regimen across lines of therapy in a range of hematologic malignancies. This includes three late-stage studies — a monotherapy study in patients with R/R DLBCL and two combination studies evaluating epcoritamab combination therapies in patients with newly diagnosed DLBCL and R/R FL.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Key Picks
AbbVie currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Novo Nordisk NVO and Puma Biotechnology PBYI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.22 to $2.62. During the same period, the earnings estimates per share for 2024 have risen from $2.57 to $3.07. Shares of NVO have surged 53.5% in the year-to-date period.
Novo Nordisk’s earnings beat estimates in two of the last four quarters while meeting the mark on one occasion and missing the estimates on another. On average, the company witnessed an average surprise of 0.58%. In the last reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have increased from 67 cents to 72 cents. During the same period, the earnings estimates per share for 2024 have risen from 55 cents to 62 cents. Shares of PBYI have risen 6.2% in the year-to-date period.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while meeting the mark on one occasion, witnessing an average surprise of 76.55%. In the last reported quarter, Puma Biotechnology’s earnings beat estimates by 13.33%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Alongside the above news, AbbVie and Genmab also announced that the European Medicines Agency (“EMA”) has validated a regulatory filing for epcoritamab in the same indication. AbbVie and Genmab are evaluating epcoritamab both as a monotherapy and as a combination regimen across lines of therapy in a range of hematologic malignancies. AbbVie ABBV along with partner Genmab GMAB announcedthat the FDA has granted breakthrough therapy designation (“BTD”) to epcoritamab for treating adults with relapsed or refractory (“R/R”) follicular lymphoma (“FL”), after two or more lines of therapies. | Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report Genmab A/S Sponsored ADR (GMAB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV along with partner Genmab GMAB announcedthat the FDA has granted breakthrough therapy designation (“BTD”) to epcoritamab for treating adults with relapsed or refractory (“R/R”) follicular lymphoma (“FL”), after two or more lines of therapies. Alongside the above news, AbbVie and Genmab also announced that the European Medicines Agency (“EMA”) has validated a regulatory filing for epcoritamab in the same indication. | AbbVie ABBV along with partner Genmab GMAB announcedthat the FDA has granted breakthrough therapy designation (“BTD”) to epcoritamab for treating adults with relapsed or refractory (“R/R”) follicular lymphoma (“FL”), after two or more lines of therapies. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report Genmab A/S Sponsored ADR (GMAB) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie ABBV along with partner Genmab GMAB announcedthat the FDA has granted breakthrough therapy designation (“BTD”) to epcoritamab for treating adults with relapsed or refractory (“R/R”) follicular lymphoma (“FL”), after two or more lines of therapies. Alongside the above news, AbbVie and Genmab also announced that the European Medicines Agency (“EMA”) has validated a regulatory filing for epcoritamab in the same indication. |
22023.0 | 2023-11-27 00:00:00 UTC | AbbVie, Genmab Issue Positive FDA, EMA Updates For Epcoritamab To Treat R/R Follicular Lymphoma | ABBV | https://www.nasdaq.com/articles/abbvie-genmab-issue-positive-fda-ema-updates-for-epcoritamab-to-treat-r-r-follicular | nan | nan | (RTTNews) - Drug makers AbbVie (ABBV) and Genmab (GMAB) announced Monday positive updates from the U.S. Food and Drug Administration or FDA and European Medicines Agency or EMA for epcoritamab (Epkinly / Tepkinly) for relapsed or refractory (R/R) follicular lymphoma (FL).
Epcoritamab, co-developed by AbbVie and Genmab, is an investigational T-cell engaging bispecific antibody administered subcutaneously for R/R FL, a complex blood cancer with limited treatment options. Epcoritamab is approved under the brand name EPKINLY in the United States and TEPKINLY in the European Union.
The FDA has granted Breakthrough Therapy Designation or BTD to epcoritamab-bysp (EPKINLY) for the treatment of adult patients with R/R FL after two or more therapies.
In addition, the EMA has validated a Type II application for epcoritamab (TEPKINLY) for the same indication. If approved, R/R FL would be the second conditionally approved indication for epcoritamab in the European Union.
The company noted that its U.S. And Europe updates are supported by data from the Phase 1/2 EPCORE NHL-1 clinical trial evaluating the safety and preliminary efficacy of subcutaneous epcoritamab.
The companies will present data from the FL cohort of the trial, including an optimized dosing schedule allowing for outpatient administration, at the upcoming Annual Meeting and Exposition of the American Society of Hematology (ASH) in December 2023.
As per the oncology collaboration deal between AbbVie and Genmab, the companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization.
Mariana Cota Stirner, vice president, therapeutic area head for hematology, AbbVie, said, "Together with Genmab, we are continuing to investigate epcoritamab as a potential core therapy for multiple B-cell malignancies, including diffuse large B-cell lymphoma and now follicular lymphoma."
Genmab and AbbVie continue to evaluate the use of epcoritamab as a monotherapy, and in combination, across lines of therapy in a range of hematologic malignancies.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Epcoritamab, co-developed by AbbVie and Genmab, is an investigational T-cell engaging bispecific antibody administered subcutaneously for R/R FL, a complex blood cancer with limited treatment options. (RTTNews) - Drug makers AbbVie (ABBV) and Genmab (GMAB) announced Monday positive updates from the U.S. Food and Drug Administration or FDA and European Medicines Agency or EMA for epcoritamab (Epkinly / Tepkinly) for relapsed or refractory (R/R) follicular lymphoma (FL). As per the oncology collaboration deal between AbbVie and Genmab, the companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. | (RTTNews) - Drug makers AbbVie (ABBV) and Genmab (GMAB) announced Monday positive updates from the U.S. Food and Drug Administration or FDA and European Medicines Agency or EMA for epcoritamab (Epkinly / Tepkinly) for relapsed or refractory (R/R) follicular lymphoma (FL). Mariana Cota Stirner, vice president, therapeutic area head for hematology, AbbVie, said, "Together with Genmab, we are continuing to investigate epcoritamab as a potential core therapy for multiple B-cell malignancies, including diffuse large B-cell lymphoma and now follicular lymphoma." Epcoritamab, co-developed by AbbVie and Genmab, is an investigational T-cell engaging bispecific antibody administered subcutaneously for R/R FL, a complex blood cancer with limited treatment options. | (RTTNews) - Drug makers AbbVie (ABBV) and Genmab (GMAB) announced Monday positive updates from the U.S. Food and Drug Administration or FDA and European Medicines Agency or EMA for epcoritamab (Epkinly / Tepkinly) for relapsed or refractory (R/R) follicular lymphoma (FL). Epcoritamab, co-developed by AbbVie and Genmab, is an investigational T-cell engaging bispecific antibody administered subcutaneously for R/R FL, a complex blood cancer with limited treatment options. Mariana Cota Stirner, vice president, therapeutic area head for hematology, AbbVie, said, "Together with Genmab, we are continuing to investigate epcoritamab as a potential core therapy for multiple B-cell malignancies, including diffuse large B-cell lymphoma and now follicular lymphoma." | Epcoritamab, co-developed by AbbVie and Genmab, is an investigational T-cell engaging bispecific antibody administered subcutaneously for R/R FL, a complex blood cancer with limited treatment options. (RTTNews) - Drug makers AbbVie (ABBV) and Genmab (GMAB) announced Monday positive updates from the U.S. Food and Drug Administration or FDA and European Medicines Agency or EMA for epcoritamab (Epkinly / Tepkinly) for relapsed or refractory (R/R) follicular lymphoma (FL). As per the oncology collaboration deal between AbbVie and Genmab, the companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. |
22024.0 | 2023-11-27 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-25 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22025.0 | 2023-11-26 00:00:00 UTC | 3 Fantastic Dividend Stocks to Buy Sooner Rather Than Later | ABBV | https://www.nasdaq.com/articles/3-fantastic-dividend-stocks-to-buy-sooner-rather-than-later | nan | nan | Are you a pro when it comes to procrastination? Some investors take so long to make a decision on buying stocks that they miss out on great upside moves. And when those stocks pay juicy dividends, they also miss out on income.
Three Motley Fool contributors think they've found fantastic dividend stocks to buy sooner rather than later. Here's why they chose AbbVie (NYSE: ABBV), Eli Lilly (NYSE: LLY), and Gilead Sciences (NASDAQ: GILD).
A bright future
Keith Speights (AbbVie): You could look at where things stand right now for AbbVie and decide to avoid this stock. The drugmaker's revenue and earnings are declining. So is AbbVie's share price.
However, savvy investors know to look ahead to a company's future rather than its present (or its past). AbbVie has a bright future ahead, in my view.
The sinking sales and profits are due to the loss of exclusivity for AbbVie's top-selling drug, Humira. Anyone who paid attention to the company knew this was inevitable.
Anyone paying attention, though, should also know that AbbVie already has two newer autoimmune disease drugs (Rinvoq and Skyrizi) on the market that should, together, significantly exceed Humira's peak annual sales by 2027. Anyone paying attention would also know that AbbVie fully expects to return to what CFO Rob Michael referred to in the latest quarterly update as "robust revenue growth" in 2025, thanks to these two drugs and other rising stars in the company's lineup.
I do think, though, that looking at AbbVie's past is warranted in one key respect. The company has increased its dividend for 52 consecutive years. That track record qualifies AbbVie as a Dividend King. Its dividend yield of nearly 4.5% is also appealing.
With AbbVie's dismal stock performance this year and a forward earnings multiple of only 12.5x, it's clear that many investors are focusing more on the present instead of the future. Sooner or later, more investors will realize what a great stock AbbVie is. That's why I think buying it sooner rather than later is a smart move.
The dividend is the icing on the cake
Prosper Junior Bakiny (Eli Lilly): Biopharmaceutical giant Eli Lilly has attracted plenty of attention this year because of its work in the diabetes and weight loss markets, where it is one of the undisputed leaders. Sales of obesity drugs are expected to skyrocket through the end of the decade, providing a significant tailwind for the company. Lilly recently earned approval in the U.S. for Zepbound to help diabetes patients manage their weight.
Zepbound was first approved last year (as Mounjaro) to treat diabetes, and since then, its revenue has rapidly grown. Now, the pace will pick up even further, an exciting prospect for Lilly and its shareholders. But there is more to the company. Lilly's entire lineup and pipeline are impressive and should help it deliver strong financial results and market-beating returns for the foreseeable future.
The drugmaker's portfolio of approved therapies includes such products as cancer medicine Verzenio and immunosuppressant Taltz, among others. Meanwhile, Eli Lilly is awaiting U.S. approval for potential Alzheimer's disease treatment donanemab. These products don't tell the whole story. It's no wonder Lilly has crushed the market this year.
And while it isn't known for its dividend, it excels in that department as well. Sure, Lilly's yield is only 0.76%. But the company has increased its payouts by an impressive 75% in the past five years. Just as important, Lilly's robust underlying business should allow it to continue rewarding shareholders with dividend increases for a long time. So, Eli Lilly is an excellent stock for growth-oriented investors and income seekers.
Gilead Sciences pays a high dividend and is an underrated growth stock
David Jagielski (Gilead Sciences): One dividend stock that looks incredibly attractive right now is Gilead Sciences. Its yield is 4%, more than double the S&P 500 average of 1.6%.
And there's an incentive to buy and hold this stock for the long haul, as Gilead has been increasing its dividend payments regularly over the years. Its current quarterly dividend of $0.75 is 32% higher than the $0.57 it was paying investors five years ago. Gilead's modest payout ratio of 64% also implies there's room for even more dividend hikes in the future.
Even more attractive is that the stock is trading within a few dollars of its 52-week low. And at a forward price-to-earnings multiple of less than 11, it's a relatively cheap buy. By comparison, the average healthcare stock trades at a multiple of 19.
Gilead has a solid, stable HIV business that generates single-digit revenue growth. For the three-month period ending Sept. 30, HIV product sales of $4.7 billion were up 4% year over year.
It also has a fast-growing oncology business that grew at a rate of 33% last quarter. Oncology drug Trodelvy has been particularly impressive, with its sales rising by 58% to $283 million. Gilead posts high gross margins, around 86% of revenue, putting it in an excellent position to expand its profits along with the solid revenue growth it generates.
Overall, I think this is a fantastic healthcare stock for long-term investors as it provides a good mix of stability, dividends, and growth.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Anyone paying attention, though, should also know that AbbVie already has two newer autoimmune disease drugs (Rinvoq and Skyrizi) on the market that should, together, significantly exceed Humira's peak annual sales by 2027. Anyone paying attention would also know that AbbVie fully expects to return to what CFO Rob Michael referred to in the latest quarterly update as "robust revenue growth" in 2025, thanks to these two drugs and other rising stars in the company's lineup. Here's why they chose AbbVie (NYSE: ABBV), Eli Lilly (NYSE: LLY), and Gilead Sciences (NASDAQ: GILD). | Here's why they chose AbbVie (NYSE: ABBV), Eli Lilly (NYSE: LLY), and Gilead Sciences (NASDAQ: GILD). A bright future Keith Speights (AbbVie): You could look at where things stand right now for AbbVie and decide to avoid this stock. So is AbbVie's share price. | Here's why they chose AbbVie (NYSE: ABBV), Eli Lilly (NYSE: LLY), and Gilead Sciences (NASDAQ: GILD). A bright future Keith Speights (AbbVie): You could look at where things stand right now for AbbVie and decide to avoid this stock. So is AbbVie's share price. | Here's why they chose AbbVie (NYSE: ABBV), Eli Lilly (NYSE: LLY), and Gilead Sciences (NASDAQ: GILD). A bright future Keith Speights (AbbVie): You could look at where things stand right now for AbbVie and decide to avoid this stock. So is AbbVie's share price. |
22026.0 | 2023-11-24 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-24 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22027.0 | 2023-11-24 00:00:00 UTC | AbbVie Inc. (ABBV) Is a Trending Stock: Facts to Know Before Betting on It | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-10 | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this drugmaker have returned -4.6% over the past month versus the Zacks S&P 500 composite's +8.2% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $2.92 per share for the current quarter, representing a year-over-year change of -18.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.4%.
The consensus earnings estimate of $11.21 for the current fiscal year indicates a year-over-year change of -18.6%. This estimate has changed +2.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.14 indicates a change of -0.7% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $14.04 billion for the current quarter points to a year-over-year change of -7.2%. The $54.06 billion and $53.9 billion estimates for the current and next fiscal years indicate changes of -6.9% and -0.3%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.93 billion in the last reported quarter, representing a year-over-year change of -6%. EPS of $2.95 for the same period compares with $3.66 a year ago.
Compared to the Zacks Consensus Estimate of $13.7 billion, the reported revenues represent a surprise of +1.65%. The EPS surprise was +3.15%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 1% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #2 (Buy). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 1% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #2 (Buy). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 1% over this period. | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 1% over this period. AbbVie is expected to post earnings of $2.92 per share for the current quarter, representing a year-over-year change of -18.9%. |
22028.0 | 2023-11-24 00:00:00 UTC | Could AbbVie Stock Help You Become a Millionaire? | ABBV | https://www.nasdaq.com/articles/could-abbvie-stock-help-you-become-a-millionaire | nan | nan | If you want an investment to make you a millionaire, you need three things. The first is some decent money to invest in the stock market, ideally at least $20,000. The second is time and patience -- big returns don't come quickly unless you're taking on significant risks. The third is an above-average return, which comes from owning a solid growth stock that can beat the market over the long haul.
Could AbbVie (NYSE: ABBV) be that stock for you? It is one of the largest healthcare companies in the world, and its revenue has grown by more than $20 billion since 2019. Can this growth-oriented business help you achieve market-beating returns and get your portfolio to more than $1 million?
You can buy the stock at a discount
Investors are discounting AbbVie's stock today, and that can be a huge advantage for growth investors looking for a stock to hold on to for the long haul as it could help secure big returns later on. AbbVie shares are only trading at 12 times its estimated future earnings, which is a big discount to the 19 times forward price-to-earnings multiple that the Health Care Select Sector SPDR Fund averages right now.
AbbVie is facing some challenges ahead, particularly as its top-selling drug Humira generates less revenue due to rising competition. But there's no shortage of reasons to be optimistic about the company's long-term future.
Plenty of growth on the horizon
What's appealing about AbbVie's business is that although it's in the midst of a transition, with immunology drugs Skyrizi and Rinvoq replacing Humira and eventually making up for its decline in revenue, it does have other catalysts out there.
Its pipeline, for instance, has more than 50 programs that are either in middle or late stages of development. Not all of them will be successful, but AbbVie may be able to generate a handful of big wins. If so, they can collectively add to the company's top and bottom lines, and provide the business good opportunities for growth.
AbbVie already has some promising blockbuster drugs on the way. Besides Skyrizi and Rinvoq, which are the company's rising stars, it has other assets it can rely on for sales. Schizophrenia medication Vraylar may be able to bring in up to $4 billion in annual revenue at its peak, according to analysts. Another promising product is migraine treatment Ubrelvy, which estimates suggest can bring in at least $1 billion at its peak.
Strong financials allow more opportunities
If you're investing for the long haul, you also need to know whether the business's financials are strong. Patents expire, and a pharmaceutical company will always need money to invest in research and development to help set it up for future revenue. While AbbVie does have some great assets, to truly be a stock with millionaire-making potential, it would need to offer even more.
What's promising about AbbVie is that its operations are highly profitable. Over the trailing 12 months, the company has reported an operating profit of $15.8 billion on revenue of $55.1 billion, for an operating margin of 29%.
An even more important metric for growth investors is free cash flow (FCF) -- the cash flow the company has left over after paying for its capital expenditures. In essence, this is what's available to either distribute to shareholders or invest back into the business. In the past four quarters, AbbVie's FCF has totaled $24.7 billion. That's a healthy amount of free cash.
But one caveat: AbbVie also pays a dividend (it currently yields 4.5%), and over the past year it has spent $10.4 billion on those payouts. The company still has a good chunk of free cash flow after paying dividends, but it's important to remember that all that cash isn't simply available for growth initiatives.
Overall, however, AbbVie is well-funded and is generating strong enough cash flow that it can both spend and invest in promising opportunities.
Can AbbVie's stock make you a millionaire?
If you're asking if AbbVie can make you a millionaire, you may be asking whether the stock can grow to more than 30 times its current share price. That's because most investors probably can't afford to invest more than $30,000 into a single stock. You'd actually need better than a 30-fold return for $30,000 to turn into $1 million; your investment would need to grow to over 33 times its current value. And the less money you invest, the greater the return will need to be.
Rounding down and assuming you need a 30x return or greater, that means AbbVie would eventually need to be worth more than $7.3 trillion. That's what its market capitalization would be if it grew to more than 30 times what it is today. It's a huge return, but if it rose at a rate of 12% for a period of 30 years, it would reach that valuation.
It's not an easy task, and could be a long shot (though the S&P 500 has averaged a return of more than 10% in the long run). But even if it's unsuccessful, AbbVie can still make for a solid growth stock to buy and hold for the long haul.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is facing some challenges ahead, particularly as its top-selling drug Humira generates less revenue due to rising competition. Plenty of growth on the horizon What's appealing about AbbVie's business is that although it's in the midst of a transition, with immunology drugs Skyrizi and Rinvoq replacing Humira and eventually making up for its decline in revenue, it does have other catalysts out there. Could AbbVie (NYSE: ABBV) be that stock for you? | You can buy the stock at a discount Investors are discounting AbbVie's stock today, and that can be a huge advantage for growth investors looking for a stock to hold on to for the long haul as it could help secure big returns later on. But even if it's unsuccessful, AbbVie can still make for a solid growth stock to buy and hold for the long haul. Could AbbVie (NYSE: ABBV) be that stock for you? | You can buy the stock at a discount Investors are discounting AbbVie's stock today, and that can be a huge advantage for growth investors looking for a stock to hold on to for the long haul as it could help secure big returns later on. 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. Could AbbVie (NYSE: ABBV) be that stock for you? | You can buy the stock at a discount Investors are discounting AbbVie's stock today, and that can be a huge advantage for growth investors looking for a stock to hold on to for the long haul as it could help secure big returns later on. Overall, however, AbbVie is well-funded and is generating strong enough cash flow that it can both spend and invest in promising opportunities. Could AbbVie (NYSE: ABBV) be that stock for you? |
22029.0 | 2023-11-23 00:00:00 UTC | Should WisdomTree U.S. High Dividend ETF (DHS) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-high-dividend-etf-dhs-be-on-your-investing-radar-10 | nan | nan | Launched on 06/16/2006, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.07 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.35%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 20.60% of the portfolio. Financials and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.84% of total assets, followed by Chevron Corp (CVX) and Abbvie Inc (ABBV).
The top 10 holdings account for about 39.99% of total assets under management.
Performance and Risk
DHS seeks to match the performance of the WisdomTree U.S. High Dividend Index before fees and expenses. The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.
The ETF has lost about -6.26% so far this year and is down about -8.21% in the last one year (as of 11/23/2023). In the past 52-week period, it has traded between $73.70 and $89.39.
The ETF has a beta of 0.82 and standard deviation of 14.70% for the trailing three-year period, making it a medium risk choice in the space. With about 382 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DHS is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.41 billion in assets, Vanguard Value ETF has $99.92 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
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WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.84% of total assets, followed by Chevron Corp (CVX) and Abbvie Inc (ABBV). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 06/16/2006, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.84% of total assets, followed by Chevron Corp (CVX) and Abbvie Inc (ABBV). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 06/16/2006, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.84% of total assets, followed by Chevron Corp (CVX) and Abbvie Inc (ABBV). Alternatives WisdomTree U.S. High Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.84% of total assets, followed by Chevron Corp (CVX) and Abbvie Inc (ABBV). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. |
22030.0 | 2023-11-23 00:00:00 UTC | Dual Powerhouses: 7 Dividend Stocks Marrying High Yield With High Growth | ABBV | https://www.nasdaq.com/articles/dual-powerhouses%3A-7-dividend-stocks-marrying-high-yield-with-high-growth | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While it’s always important to consider passive-income providers, they often lack an underlying growth impetus, which subsequently makes the concept of high-yield dividend growth stocks so compelling. You can get your growth and also enjoy dividend payments.
To be sure, the adage of something being too good to be true applies. At the end of the day, if an enterprise represents one of the extreme varieties of high-yield dividend stocks, there’s usually a reason for it. Generally, it’s not a good one.
On the other hand, the same can be said about blisteringly strong growth stocks. If an enterprise typically commands robust double-digit revenue expansion, it probably hasn’t reached the maturity phase where paying passive income would make sense.
However, the market features thousands upon thousands of publicly traded opportunities. At some point, you will find an enticing balance between relatively high growth and also high dividends. With that, below are the high-yield dividend growth stocks to consider.
Coca-Cola (KO)
Source: monticello / Shutterstock
A stalwart in the soft drink industry, Coca-Cola (NYSE:KO) doesn’t just dominate its core sector; it also represents an icon of American capitalism. As such, it’s a mature business. We’re talking about a company whose roots extend back to the late 1800s! So, it’s one of the high-yield dividend stocks but can it also be classified among growth stocks?
At first glance, the answer might appear to be “no.” Per investment data aggregator Gurufocus, Coca-Cola runs a three-year revenue growth rate of 4.6% on a per-share basis. That’s actually worse than 52.58% of the non-alcoholic beverages space. At the same time, 2022’s revenue haul of $43 billion represented a big boost (for a mature enterprise) against its prior year print of $38.7 billion.
Also, the company is on track against a trailing-12-month (TTM) basis to ring up sales of $45 billion. With Coca-Cola offering a forward yield of 3.21%, KO is one of the top high-yield dividend growth stocks to consider.
Phillips 66 (PSX)
Source: Jonathan Weiss / Shutterstock.com
A hydrocarbon energy enterprise, Phillips 66 (NYSE:PSX) mainly specializes in the downstream component of the industry’s value chain; in other words, refining and marketing. As well, it features some business in the midstream (storage and transportation) realm. While the underlying sector had its ups and downs this year, PSX gained over 15% of equity value since the January opener.
Given how geopolitical tensions aren’t likely to improve anytime soon, PSX should be on your radar for high-yield dividend growth stocks. Yes, electric vehicles are the future. However, the economic print shows that middle-income folks just can’t make the transition right now. That should give many years of relevance for Phillips 66. Regarding the financials, the company sports a better-than-average three-year revenue growth rate of 14.9%.
Just as well, PSX offers a forward yield of 3.61%, simultaneously making it one of the high-yield dividend stocks. Even better, the payout ratio sits at 31.13%, which means investors shouldn’t fret about yield sustainability.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
As I’ve mentioned many times before, I dig pharmaceutical giant AbbVie (NYSE:ABBV) for its Allergan acquisition. Through the buyout, AbbVie now controls Botox, a highly potent neurotoxic protein used for smoothing wrinkles. I love the long-term narrative here because, unlike other generations, Millennials and Generation Z will have difficulty letting go.
While social critics often joke about young people’s need for safe spaces and whatnot, they do have a point. Part of the maturing process involves accepting life circumstances, both good and bad. Unfortunately, nobody can prevent pain in this world. However accommodating such an unrealistic proposition leads to unrealistic expectations, such as expecting to look young indefinitely.
That’s a huge fundamental catalyst that should augment AbbVie’s already-impressive three-year revenue growth rate of 13.4%. Just as well, the company represents one of the top high-yield dividend stocks thanks to its forward yield of 4.48%. Also, the payout ratio is reasonable at 55.7%.
Oh yeah, we’re talking 51 years of consecutive payout increases. So, I think it’s one of the high-yield dividend growth stocks available.
Duke Energy (DUK)
Source: Jonathan Weiss / Shutterstock.com
Now, before you lay into me, Duke Energy (NYSE:DUK) as a utility giant wouldn’t automatically be considered one of the distinctive growth stocks. As you know, utility companies tend to be boring affairs. They’re not necessarily about growth but rather consistent profitability. So, most people can see DUK as a standalone example of high-yield dividend stocks.
Still, let’s look at this narrative from a relative perspective. Sure, Duke’s three-year revenue growth rate of 2.8% isn’t anywhere close to remarkable. Indeed, it’s not even good compared to the rest of the industry. However, in 2022, the company posted revenue of $28.8 billion, a decent jump from the prior year’s $24.6 billion. On a TTM basis, Duke’s looking at $29.2 billion in sales.
Also, cost-of-living expenses are pushing millennials to areas which Duke serves, such as the Carolinas. It’s positioned where the money will be, not necessarily where it is right now. And that just makes the company’s 4.56% forward yield all the more attractive. Definitely, it’s one of the high-yield dividend growth stocks to consider.
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
One of the riskier ideas among high-yield dividend growth stocks, Pfizer (NYSE:PFE) requires faith. By that, I’m talking about the ability to anticipate revenue growth that just isn’t there yet. Sure, Pfizer may enjoy a three-year revenue growth rate of 34.4%, a massively impressive statistic. However, that stemmed from the Covid-19 period, when the company offered a return-to-normalcy pathway.
Unfortunately for PFE stakeholders, dramatically fading fears of the SARS-CoV-2 virus meant that Pfizer had nowhere to go but down. Nevertheless, Pfizer likely benefited from the acumen forged during its development of the underlying messenger-RNA vaccine. Armed with this tech, it can now address other diseases or medical needs. Plus, in Q3, Pfizer enjoyed sequential quarter-to-quarter growth.
Could that be a turning point? I don’t know. It’s a risk, like I said earlier. But what I do know is that the company offers a forward yield of 5.48%. That makes PFE one of the top high-yield dividend stocks with robust growth potential.
Philip Morris (PM)
Source: Vytautas Kielaitis / Shutterstock
A controversial and seemingly irrelevant enterprise, Philip Morris (NYSE:PM) might seem like a joke idea for high-yield dividend growth stocks. To paraphrase the old school “Where’s the Beef” commercials, investors are right to ask, “where’s the growth?” Research shows that global smoking rates have declined for both men and women.
If you ask anyone on the street, that doesn’t sound like a promising thesis for growth stocks. However, as I have argued frequently over the past several months, Philip Morris should benefit from sales of tobacco alternatives: I’m referring to e-cigarettes or vaporizers (or whatever industry aficionados want to call them). And it turns out, this counterintuitive narrative was the correct one.
Per CNBC, while the tobacco giant’s revenue total missed analysts’ estimates, sales for its heated tobacco and oral nicotine products remained robust. Heated tobacco products are also know as heat-not-burn devices are electronic devices.
Lastly, Philip Morris commands a forward yield of 5.66%. If you can handle the risk, PM offers a balanced opportunity among high-yield dividend stocks.
Vici Properties (VICI)
Source: T. Schneider / Shutterstock
Saving the riskiest idea for last, Vici Properties (NYSE:VICI) will require nerves of steel. And depending on how circumstances go regarding the potentially fading revenge travel phenomenon, I could talk about VICI in a not-so-pleasant context in the future. I’m just letting you know upfront. With that said, the company makes a historically strong case for growth stocks to consider.
Per Gurufocus, Vici’s three-year revenue growth rate stands at 13.2%. That’s above 87.72% of industry players As well, VICI trades at forward earnings ratio of 11.96X, translating to an undervalued profile. It’s quite possible that shares are de-risked, which might appeal to contrarians. Further, with a TTM revenue of $3.45 billion, that’s well above the 2022 haul of $2.6 billion.
But can this mercurial growth trek continue? I believe it’s a pensive situation, considering the state of the consumer economy. However, for those that do want to take the risk, the company offers a forward yield of 5.81%. For such a high yield, the payout ratio is relatively reasonable at 62%.
As for analysts, it lands as a strong buy consensus. So, VICI could be one of the high-yield dividend growth stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com As I’ve mentioned many times before, I dig pharmaceutical giant AbbVie (NYSE:ABBV) for its Allergan acquisition. Through the buyout, AbbVie now controls Botox, a highly potent neurotoxic protein used for smoothing wrinkles. That’s a huge fundamental catalyst that should augment AbbVie’s already-impressive three-year revenue growth rate of 13.4%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com As I’ve mentioned many times before, I dig pharmaceutical giant AbbVie (NYSE:ABBV) for its Allergan acquisition. Through the buyout, AbbVie now controls Botox, a highly potent neurotoxic protein used for smoothing wrinkles. That’s a huge fundamental catalyst that should augment AbbVie’s already-impressive three-year revenue growth rate of 13.4%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com As I’ve mentioned many times before, I dig pharmaceutical giant AbbVie (NYSE:ABBV) for its Allergan acquisition. Through the buyout, AbbVie now controls Botox, a highly potent neurotoxic protein used for smoothing wrinkles. That’s a huge fundamental catalyst that should augment AbbVie’s already-impressive three-year revenue growth rate of 13.4%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com As I’ve mentioned many times before, I dig pharmaceutical giant AbbVie (NYSE:ABBV) for its Allergan acquisition. Through the buyout, AbbVie now controls Botox, a highly potent neurotoxic protein used for smoothing wrinkles. That’s a huge fundamental catalyst that should augment AbbVie’s already-impressive three-year revenue growth rate of 13.4%. |
22031.0 | 2023-11-22 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-10 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22032.0 | 2023-11-21 00:00:00 UTC | 3 "Boring" Stocks That Could Make You Rich | ABBV | https://www.nasdaq.com/articles/3-boring-stocks-that-could-make-you-rich | nan | nan | You don't have to invest exclusively in the so-called "exciting" stocks to get rich. Actually, the stocks that generate the most excitement for investors over the short term can often be big losers over the long term.
Of course, the amount of wealth needed to feel rich will be different for different investors. And no stock is guaranteed to make money.
However, I think that there are quite a few stocks that most investors probably wouldn't consider all that exciting that offer the potential for outstanding total returns over the long run. Here are three "boring" stocks that could make you rich.
1. AbbVie
It could be tempting to view AbbVie (NYSE: ABBV) as a has-been. The company achieved tremendous success in the past with its blockbuster autoimmune-disease drug Humira.
However, Humira no longer enjoys patent exclusivity in the U.S. or key European markets. As a result, AbbVie's revenue, profits, and share price have fallen in 2023.
AbbVie should still make long-term investors a lot of money, though. Its dividend alone helps quite a bit toward that goal. AbbVie's dividend yield currently stands at nearly 4.5%. I expect the dividend to become even better in the future, considering that the company is a Dividend King, with 51 consecutive years of dividend increases.
We don't have to depend only on AbbVie's dividend. The company already has a couple of worthy successors to Humira on the market with Rinvoq and Skyrizi. AbbVie thinks these two drugs will generate combined sales by 2027 that will be even greater than what Humira delivered at its peak.
In addition, AbbVie's product lineup includes several other rising stars such as migraine drugs Qulipta and Ubrelvy and antipsychotic therapy Vraylar. The company's pipeline features more than 90 programs in clinical development, and over 50 of them are in mid- or late-stage testing.
2. Ares Capital
You won't see a ton of coverage for business development companies (BDCs), which lend to middle-market businesses. Neither the BDCs nor their customers tend to attract significant interest from investors. But I think there's at least one BDC stock that should be on many investors' radar screens: Ares Capital (NASDAQ: ARCC).
The main reason why I think Ares Capital can make investors a lot of money over the long run is because that's what it has done in the past. The stock's average annual total return since going public in 2004 tops 12%. That's much better than the S&P 500's performance during the same period.
Can Ares Capital keep up its winning ways? I think so. It ranks as the largest publicly traded BDC. The company's portfolio is more diversified than most of its peers.
Ares Capital also focuses on the upper end of the middle market. These factors reduce the risk for its portfolio and help it make money on its investments.
Much of Ares Capital's total return comes from its dividend. As a BDC, the company must return at least 90% of its income to shareholders in the form of dividends to be exempt from federal taxes. Ares Capital's dividend yield currently tops 9.7%.
3. Enterprise Products Partners L.P.
Pipelines don't rev up investors' excitement nearly as much as the latest hot technology will. However, they generate steady cash flow month in and month out. Enterprise Products Partners L.P. (NYSE: EPD) operates more than 50,000 miles of pipelines that transport natural gas liquids (NGLs), natural gas, and other hydrocarbons.
Like AbbVie and Ares Capital, Enterprise Products Partners rewards investors handsomely through its dividends (which, as a limited partnership, the company refers to as distributions). Enterprise's distribution yield is over 7.6%. The midstream energy leader has increased its distribution for 25 consecutive years, with a compound annual growth rate of roughly 7%.
With its great distributions, Enterprise's share price doesn't have to do much of anything for investors to make a boatload of money over the long term. I suspect, though, that the stock will move higher (just as it has over the last three years), thanks to increasing demand for NGLs and natural gas.
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Keith Speights has positions in AbbVie, Ares Capital, and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition, AbbVie's product lineup includes several other rising stars such as migraine drugs Qulipta and Ubrelvy and antipsychotic therapy Vraylar. Like AbbVie and Ares Capital, Enterprise Products Partners rewards investors handsomely through its dividends (which, as a limited partnership, the company refers to as distributions). AbbVie It could be tempting to view AbbVie (NYSE: ABBV) as a has-been. | Like AbbVie and Ares Capital, Enterprise Products Partners rewards investors handsomely through its dividends (which, as a limited partnership, the company refers to as distributions). See the 10 stocks *Stock Advisor returns as of November 20, 2023 Keith Speights has positions in AbbVie, Ares Capital, and Enterprise Products Partners. AbbVie It could be tempting to view AbbVie (NYSE: ABBV) as a has-been. | Like AbbVie and Ares Capital, Enterprise Products Partners rewards investors handsomely through its dividends (which, as a limited partnership, the company refers to as distributions). See the 10 stocks *Stock Advisor returns as of November 20, 2023 Keith Speights has positions in AbbVie, Ares Capital, and Enterprise Products Partners. AbbVie It could be tempting to view AbbVie (NYSE: ABBV) as a has-been. | AbbVie It could be tempting to view AbbVie (NYSE: ABBV) as a has-been. As a result, AbbVie's revenue, profits, and share price have fallen in 2023. AbbVie should still make long-term investors a lot of money, though. |
22033.0 | 2023-11-21 00:00:00 UTC | Ignore Eli Lilly. These 2 Stocks Are Better Buys Right Now | ABBV | https://www.nasdaq.com/articles/ignore-eli-lilly.-these-2-stocks-are-better-buys-right-now | nan | nan | All eyes have been on Eli Lilly (NYSE: LLY) in recent times as it prepared to increase its earnings potential in the billion-dollar weight-loss treatment market. Lilly already has generated blockbuster revenue from Mounjaro, a diabetes drug doctors have also prescribed for weight loss. And now growth may really take off. The company scored a big win earlier this month when regulators approved the drug Zepbound for weight management.
Lilly's success and further potential in this market have driven the share price and valuation higher, meaning some of the good news may be priced in at today's level. I still think Lilly is a great long-term stock to own, but right now, a couple of other pharma companies represent better buying opportunities. They're trading at bargain prices and also may offer you top rewards over time. So today, you may want to ignore Eli Lilly and instead scoop up these cheap but promising players.
Image source: Getty Images.
1. Pfizer
Many investors took off, leaving the shares down 40% this year, as Pfizer's (NYSE: PFE) COVID-19 vaccine and treatment started to face declining demand. As we head toward a post-pandemic world, it's not surprising these products will generate lower revenue than they did at the height of the health crisis. At the same time, Pfizer expects some other key products to lose exclusivity this decade, which will weigh on earnings.
Now here's why I wouldn't let that stop me from buying Pfizer shares. The company has prepared for these challenges through one of its biggest-ever string of product launches. It aims to release 19 new products over 18 months and already has completed 13. These products acquired through business deals may help the company reach $84 billion in revenue by 2030. That's up by 65% from pre-coronavirus days.
That revenue forecast doesn't include coronavirus-product revenue, and those vaccine and treatment products still may bring in billions of dollars for Pfizer. So, as recurrent revenue sources primarily during flu/vaccination season, they could add to annual growth.
2. AbbVie
AbbVie (NYSE: ABBV) also faces a pretty big challenge today, but like Pfizer, the pharma giant entered this moment with tools to spur a new era of growth. The company's top-selling drug -- which also is the world's best-selling drug -- recently lost exclusivity. Humira at its peak last year brought in more than $21 billion in revenue across seven treatment areas.
Now, though, sales are declining for the product, and that's clearly weighing on AbbVie's earnings. In the most recent quarter, Humira sales fell 36% to $3.5 billion, and AbbVie reported declines in revenue and profit.
But, if you look at AbbVie through a long-term lens, the situation looks much brighter. The company is grooming two newer immunology drugs -- Rinvoq and Skyrizi -- to take over where Humira leaves off, and this is already getting started. AbbVie has won approvals in eight indications combined for both drugs. Rinvoq and Skyrizi are set to deliver more than $11 billion in revenue this year. And the company forecasts that together their revenue will top that of Humira by 2027.
AbbVie also sells a variety of other blockbusters in areas including neuroscience, oncology, and aesthetics that could add to growth over time.
Why are Pfizer and AbbVie better buys?
Pfizer and AbbVie both have great long-term prospects even if they might stagnate a bit in the near term. This near-term pressure means they're trading for a bargain right now and at a much lower level than Lilly.
PFE PE Ratio (Forward) data by YCharts.
Of course, it's important to put this into perspective. Lilly's revenue climbed in the double digits in the most recent quarter, and the company isn't facing the same headwinds as Pfizer and AbbVie. So, Lilly's valuation isn't ridiculous considering its earnings today and future potential.
But, as mentioned earlier, the reason to forget Lilly and pick up Pfizer and AbbVie has to do with opportunity. These struggling players offer bright prospects down the road, but today you can buy them for a bargain. And that's why now is the moment to get in on these stocks that may offer you enormous growth from these levels if you hold on for the long term.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie also sells a variety of other blockbusters in areas including neuroscience, oncology, and aesthetics that could add to growth over time. Lilly's revenue climbed in the double digits in the most recent quarter, and the company isn't facing the same headwinds as Pfizer and AbbVie. AbbVie AbbVie (NYSE: ABBV) also faces a pretty big challenge today, but like Pfizer, the pharma giant entered this moment with tools to spur a new era of growth. | AbbVie AbbVie (NYSE: ABBV) also faces a pretty big challenge today, but like Pfizer, the pharma giant entered this moment with tools to spur a new era of growth. Now, though, sales are declining for the product, and that's clearly weighing on AbbVie's earnings. In the most recent quarter, Humira sales fell 36% to $3.5 billion, and AbbVie reported declines in revenue and profit. | AbbVie AbbVie (NYSE: ABBV) also faces a pretty big challenge today, but like Pfizer, the pharma giant entered this moment with tools to spur a new era of growth. Lilly's revenue climbed in the double digits in the most recent quarter, and the company isn't facing the same headwinds as Pfizer and AbbVie. Now, though, sales are declining for the product, and that's clearly weighing on AbbVie's earnings. | Why are Pfizer and AbbVie better buys? AbbVie AbbVie (NYSE: ABBV) also faces a pretty big challenge today, but like Pfizer, the pharma giant entered this moment with tools to spur a new era of growth. Now, though, sales are declining for the product, and that's clearly weighing on AbbVie's earnings. |
22034.0 | 2023-11-21 00:00:00 UTC | J&J (JNJ) Seeks Expanded Use of Lung Cancer Drug Rybrevant | ABBV | https://www.nasdaq.com/articles/jj-jnj-seeks-expanded-use-of-lung-cancer-drug-rybrevant | nan | nan | Johnson & Johnson JNJ announced that it submitted a supplemental biologics license application (sBLA) seeking approval for the expanded use of its cancer drug, Rybrevant (amivantamab-vmjw).
The sBLA seeks Rybrevant's approval in combination with chemotherapy (carboplatin and pemetrexed) for the treatment of patients with EGFR-mutated locally advanced or metastatic non-small cell lung cancer (NSCLC) for patients whose disease has progressed on or after treatment with AstraZeneca’s Tagrisso (osimertinib).
The sBLA was based on data from the phase III MARIPOSA-2 study, which evaluated the safety and efficacy of Rybrevant plus chemotherapy in the given patient population.
Currently, Rybrevant is approved in the United States for patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations whose disease progressed on or after platinum-based chemotherapy in the United States. The European Medicines Agency had also granted conditional marketing authorization to Rybrevant for the same indication.
Shares of J&J have plunged 15.1% so far this year against the industry’s growth of 3.8%.
Image Source: Zacks Investment Research
In October 2023, the company presented data from the phase III MARIPOSA-2 study at the European Society for Medical Oncology 2023 Congress.
Data from the same showed that treatment with Rybrevant plus chemotherapy led to a significant improvement in progression-free survival (the primary endpoint) as compared with chemotherapy alone in patients with EGFR-mutated advanced NSCLC following prior osimertinib therapy.
We remind investors that another sBLA is seeking approval for Rybrevant in combination with chemotherapy (carboplatin and pemetrexed) for the first-line treatment of patients with advanced NSCLC with EGFR exon 20 insertion mutations.
Several other early to mid-stage studies are currently underway, evaluating Rybrevant in NSCLC.
Zacks Rank & Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have improved from $2.15 to $2.62. During the same period, earnings estimates for 2024 have moved up from $2.46 to $3.07. Year to date, shares of NVO have rallied 52.9%.
Earnings of Novo Nordisk beat estimates in two of the trailing four quarters, met the same once and missed on the other occasion. On average, NVO came up with a four-quarter earnings surprise of 0.58%.
In the past 60 days, estimates for AbbVie’s 2023 earnings per share have improved from $11 to $11.19. During the same period, earnings estimates for 2024 have moved up from $11.05 to $11.14. Year to date, shares of ABBV have lost 14.3%.
Earnings of AbbVie beat estimates in each of the trailing four quarters. On average, ABBV came up with a four-quarter earnings surprise of 2.49%.
In the past 60 days, estimates for Acadia Pharmaceuticals’ 2023 loss per share have narrowed from 41 cents to 34 cents. During the same period, earnings per share estimates for 2024 have moved up from 52 cents to 90 cents. Year to date, shares of ACAD have surged 44%.
Earnings of Acadia Pharmaceuticals beat estimates in two of the trailing four quarters and missed on the other two occasions. On average, ACAD came up with a four-quarter earnings surprise of 20.69%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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Johnson & Johnson (JNJ) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. In the past 60 days, estimates for AbbVie’s 2023 earnings per share have improved from $11 to $11.19. Year to date, shares of ABBV have lost 14.3%. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. In the past 60 days, estimates for AbbVie’s 2023 earnings per share have improved from $11 to $11.19. | Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past 60 days, estimates for AbbVie’s 2023 earnings per share have improved from $11 to $11.19. | Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. In the past 60 days, estimates for AbbVie’s 2023 earnings per share have improved from $11 to $11.19. Year to date, shares of ABBV have lost 14.3%. |
22035.0 | 2023-11-21 00:00:00 UTC | Should You Invest in AbbVie (ABBV) Based on Bullish Wall Street Views? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-abbvie-abbv-based-on-bullish-wall-street-views | nan | nan | When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV).
AbbVie currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.
Of the 19 recommendations that derive the current ABR, nine are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 47.4% and 10.5% of all recommendations.
Brokerage Recommendation Trends for ABBV
Check price target & stock forecast for AbbVie here>>>
The ABR suggests buying AbbVie, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ABBV a Good Investment?
Looking at the earnings estimate revisions for AbbVie, the Zacks Consensus Estimate for the current year has increased 2.1% over the past month to $11.21.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for AbbVie. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for AbbVie may serve as a useful guide for investors.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). AbbVie currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Brokerage Recommendation Trends for ABBV | AbbVie currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). Brokerage Recommendation Trends for ABBV | AbbVie currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for AbbVie may serve as a useful guide for investors. Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). | Brokerage Recommendation Trends for ABBV Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). AbbVie currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) |
22036.0 | 2023-11-21 00:00:00 UTC | ABBV vs. LLY: Which Stock Should Value Investors Buy Now? | ABBV | https://www.nasdaq.com/articles/abbv-vs.-lly%3A-which-stock-should-value-investors-buy-now | nan | nan | Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both AbbVie (ABBV) and Eli Lilly (LLY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
AbbVie has a Zacks Rank of #2 (Buy), while Eli Lilly has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ABBV has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ABBV currently has a forward P/E ratio of 12.34, while LLY has a forward P/E of 90.24. We also note that ABBV has a PEG ratio of 2.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LLY currently has a PEG ratio of 3.63.
Another notable valuation metric for ABBV is its P/B ratio of 20.13. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LLY has a P/B of 50.17.
These metrics, and several others, help ABBV earn a Value grade of B, while LLY has been given a Value grade of D.
ABBV sticks out from LLY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ABBV is the better option right now.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both AbbVie (ABBV) and Eli Lilly (LLY). AbbVie has a Zacks Rank of #2 (Buy), while Eli Lilly has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ABBV has an improving earnings outlook. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both AbbVie (ABBV) and Eli Lilly (LLY). AbbVie has a Zacks Rank of #2 (Buy), while Eli Lilly has a Zacks Rank of #3 (Hold) right now. | These metrics, and several others, help ABBV earn a Value grade of B, while LLY has been given a Value grade of D. ABBV sticks out from LLY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ABBV is the better option right now. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both AbbVie (ABBV) and Eli Lilly (LLY). | AbbVie has a Zacks Rank of #2 (Buy), while Eli Lilly has a Zacks Rank of #3 (Hold) right now. These metrics, and several others, help ABBV earn a Value grade of B, while LLY has been given a Value grade of D. ABBV sticks out from LLY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ABBV is the better option right now. Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both AbbVie (ABBV) and Eli Lilly (LLY). |
22037.0 | 2023-11-20 00:00:00 UTC | Drugmakers agree with UK govt on renewed revenue claw-back scheme | ABBV | https://www.nasdaq.com/articles/drugmakers-agree-with-uk-govt-on-renewed-revenue-claw-back-scheme | nan | nan | By Ludwig Burger
Nov 20 (Reuters) - The pharmaceutical industry has agreed terms with the British government to renew a medicines access scheme that requires drugmakers to pay part of their drug revenue to the government.
The Association of the British Pharmaceutical Industry (ABPI) said in a statement on Monday that the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) was newly agreed with the British government and with the National Health Service (NHS) England, and will run for five years until end-2028.
The Department of Health and ABPI said in a joint statement that the deal would save the NHS 14 billion pounds ($17.5 billion) over five years in medicines costs, while giving patients access to "the latest lifesaving treatments more consistently".
ABPI has said that in 2021, the VPAS rebates - or claw-back payments depending on revenues - meant companies paid around 5% of their revenue back to the NHS, but in 2022 it rose to 15% and in 2023 to 26.5% due to increased NHS demand related to the COVID-19 pandemic.
As a result, U.S. pharmaceutical majors AbbVie ABBV.N and Eli Lilly LLY.N in January withdrew from the scheme. Trade body ABPI in February called for the government to overhaul the scheme.
($1 = 0.8025 pounds)
(Reporting by Ludwig Burger; Editing by Bernadette Baum and Emelia Sithole-Matarise)
((ludwig.burger@thomsonreuters.com; +49 30 220133634;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a result, U.S. pharmaceutical majors AbbVie ABBV.N and Eli Lilly LLY.N in January withdrew from the scheme. By Ludwig Burger Nov 20 (Reuters) - The pharmaceutical industry has agreed terms with the British government to renew a medicines access scheme that requires drugmakers to pay part of their drug revenue to the government. The Association of the British Pharmaceutical Industry (ABPI) said in a statement on Monday that the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) was newly agreed with the British government and with the National Health Service (NHS) England, and will run for five years until end-2028. | As a result, U.S. pharmaceutical majors AbbVie ABBV.N and Eli Lilly LLY.N in January withdrew from the scheme. By Ludwig Burger Nov 20 (Reuters) - The pharmaceutical industry has agreed terms with the British government to renew a medicines access scheme that requires drugmakers to pay part of their drug revenue to the government. The Association of the British Pharmaceutical Industry (ABPI) said in a statement on Monday that the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) was newly agreed with the British government and with the National Health Service (NHS) England, and will run for five years until end-2028. | As a result, U.S. pharmaceutical majors AbbVie ABBV.N and Eli Lilly LLY.N in January withdrew from the scheme. By Ludwig Burger Nov 20 (Reuters) - The pharmaceutical industry has agreed terms with the British government to renew a medicines access scheme that requires drugmakers to pay part of their drug revenue to the government. The Association of the British Pharmaceutical Industry (ABPI) said in a statement on Monday that the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) was newly agreed with the British government and with the National Health Service (NHS) England, and will run for five years until end-2028. | As a result, U.S. pharmaceutical majors AbbVie ABBV.N and Eli Lilly LLY.N in January withdrew from the scheme. The Association of the British Pharmaceutical Industry (ABPI) said in a statement on Monday that the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) was newly agreed with the British government and with the National Health Service (NHS) England, and will run for five years until end-2028. ABPI has said that in 2021, the VPAS rebates - or claw-back payments depending on revenues - meant companies paid around 5% of their revenue back to the NHS, but in 2022 it rose to 15% and in 2023 to 26.5% due to increased NHS demand related to the COVID-19 pandemic. |
22038.0 | 2023-11-20 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-23 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22039.0 | 2023-11-16 00:00:00 UTC | Should SPDR S&P Dividend ETF (SDY) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-spdr-sp-dividend-etf-sdy-be-on-your-investing-radar-9 | nan | nan | The SPDR S&P Dividend ETF (SDY) was launched on 11/08/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $19.95 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 22.50% of the portfolio. Consumer Staples and Financials round out the top three.
Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV).
The top 10 holdings account for about 22.01% of total assets under management.
Performance and Risk
SDY seeks to match the performance of the S&P High Yield Dividend Aristocrats Index before fees and expenses. The S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.
The ETF has lost about -4.05% so far this year and is down about -5.83% in the last one year (as of 11/16/2023). In the past 52-week period, it has traded between $110.20 and $132.18.
The ETF has a beta of 0.87 and standard deviation of 15.57% for the trailing three-year period, making it a medium risk choice in the space. With about 124 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SDY is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.72 billion in assets, Vanguard Value ETF has $99.15 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR S&P Dividend ETF (SDY): ETF Research Reports
International Business Machines Corporation (IBM) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The SPDR S&P Dividend ETF (SDY) was launched on 11/08/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. | Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Alternatives SPDR S&P Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. |
22040.0 | 2023-11-16 00:00:00 UTC | AbbVie and Pfizer Have 1 Thing in Common: Their Biggest Products Are on the Decline. Time to Sell? | ABBV | https://www.nasdaq.com/articles/abbvie-and-pfizer-have-1-thing-in-common%3A-their-biggest-products-are-on-the-decline.-time | nan | nan | AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) are makers of two of the world's top-selling pharmaceutical products. AbbVie's immunology drug Humira brought in peak sales of more than $21 billion, while Pfizer's coronavirus vaccine generated peak sales of $37 billion -- in 2022, in both cases. With results like those, you might expect their stocks to still be soaring, but they aren't.
Instead, AbbVie and Pfizer shares have dropped by double-digit percentages this year, and for reasons that are understandable. The companies have something in common. Sales of both of their top-selling products are on the decline in a big way. Humira has lost exclusivity, and demand for Pfizer's coronavirus vaccine is declining now that we have exited the health-crisis stage of the pandemic. But does this mean you should follow the crowd and sell shares of these companies?
Image source: Getty Images.
AbbVie and the world's top-selling drug
We'll start with AbbVie. The company has a full portfolio of products in areas including immunology, neuroscience, and aesthetics, but Humira has long stood out because it's useful for patients across a wide variety of indications -- helping treat symptoms of illnesses ranging from rheumatoid arthritis to Crohn's disease. This has led to increasing sales, which peaked at a level that consistently made it the world's top-selling drug in recent years.
Of course, drugs eventually lose patent protection, so Humira's growth couldn't continue forever. However, AbbVie has prepared for this moment. The company has successfully brought a pair of newer immunology drugs -- Rinvoq and Skyrizi -- through the pipeline, and both drugs are now approved for various indications that overlap with Humira's. The goal is for the two of them, together, to surpass Humira's peak sales by 2027. And it looks like that may happen.
In the most recent quarter, Rinvoq and Skyrizi grew sales by double-digit percentages, and they're on track to deliver more than $11 billion in revenue this year. AbbVie has won five approvals for Rinvoq and three for Skyrizi -- and more may be on the way. The idea is these drugs will cover all seven of the areas Humira treats.
Meanwhile, AbbVie also can count on other blockbusters for growth, among them bipolar disorder drug Vraylar and migraine treatment Botox.
Of course, Humira's sales decline -- a 36% year-over-year drop in the latest quarter to $3.5 billion -- is weighing on earnings. And it will take time for Rinvoq and Skyrizi to compensate for those declines and grow. But considering their performances so far and AbbVie's full pipeline, it should be worth the wait. And that's why I wouldn't sell shares of AbbVie right now.
Pfizer and the world's top-selling pharma product
Pfizer's coronavirus vaccine, Comirnaty, was last year's top-selling pharmaceutical product, with its revenue even beating that of Humira. But Comirnaty's story isn't as long as that of AbbVie's biggest blockbuster.
Comirnaty, launched in late 2020 during a pandemic situation, quickly rose to the top, but now, with so many people worldwide having received at least their initial inoculations against COVID, demand for coronavirus vaccines and boosters is on the decline.
Based on the level of demand during this fall's vaccination season, Pfizer recently revised its annual guidance for Comirnaty revenue downward by $2 billion.
However, this hardly means all is lost for Comirnaty, nor for Pfizer. Comirnaty will likely continue generating significant recurrent revenues -- though not as high as during the peak years of the crisis -- for Pfizer every fall. A certain percentage of the population will continue to want annual coronavirus boosters.
Pfizer faces an additional challenge: It's set to lose exclusivity on certain blockbusters this decade, and those predictable events have led management to anticipate $17 billion in lost revenues from 2025 through 2030. But the pharma giant also has some good news for investors. It's in the middle of an 18-month stretch that features one of its busiest times for new product launches ever. It set a goal to bring 19 new products or indications to market by the end of that period, and it's most of the way there, with 13 launched. These products and Pfizer's business deals could help it reach $84 billion in revenue in 2030. That wouldn't be as high as the $100 billion in sales it reached last year thanks to Comirnaty and the COVID-19 antiviral Paxlovid. But it would be more than 60% higher than its pre-COVID revenue levels.
Pfizer and AbbVie actually have something else in common beyond the fact that their biggest sellers are on the decline. Both have paved new paths toward growth -- and those paths look promising. So, like AbbVie, Pfizer is more of a buy than a sell today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) are makers of two of the world's top-selling pharmaceutical products. AbbVie's immunology drug Humira brought in peak sales of more than $21 billion, while Pfizer's coronavirus vaccine generated peak sales of $37 billion -- in 2022, in both cases. Instead, AbbVie and Pfizer shares have dropped by double-digit percentages this year, and for reasons that are understandable. | AbbVie's immunology drug Humira brought in peak sales of more than $21 billion, while Pfizer's coronavirus vaccine generated peak sales of $37 billion -- in 2022, in both cases. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) are makers of two of the world's top-selling pharmaceutical products. Instead, AbbVie and Pfizer shares have dropped by double-digit percentages this year, and for reasons that are understandable. | AbbVie's immunology drug Humira brought in peak sales of more than $21 billion, while Pfizer's coronavirus vaccine generated peak sales of $37 billion -- in 2022, in both cases. AbbVie and the world's top-selling drug We'll start with AbbVie. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) are makers of two of the world's top-selling pharmaceutical products. | AbbVie and the world's top-selling drug We'll start with AbbVie. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) are makers of two of the world's top-selling pharmaceutical products. AbbVie's immunology drug Humira brought in peak sales of more than $21 billion, while Pfizer's coronavirus vaccine generated peak sales of $37 billion -- in 2022, in both cases. |
22041.0 | 2023-11-16 00:00:00 UTC | AbbVie Says Ubrelvy Reduced Development Of Headache If Given At Prodrome Phase Of Migraine Attack | ABBV | https://www.nasdaq.com/articles/abbvie-says-ubrelvy-reduced-development-of-headache-if-given-at-prodrome-phase-of-migraine | nan | nan | (RTTNews) - AbbVie (ABBV) Thursday said results from the Phase 3 PRODROME study showed that its approved drug Ubrelvy to treat migraine headaches, given during the prodrome phase of migraine attack, significantly reduced the likelihood of development of headache.
The prodrome is the earliest of four phases of a migraine attack and consists of various symptoms, including sensitivity to light, sound, fatigue, and neck pain, that can be an early sign that the headache phase will follow.
The results were published in The Lancet.
During the trial, patients with migraine who could identify prodromal symptoms that led to headache at least 75% of the time were given either Ubrelvy or placebo. 46% of patients treated with Ubrelvy as compared to 29% of patients treated with placebo did not have moderate or severe headaches within 24 hours after prodrome events.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) Thursday said results from the Phase 3 PRODROME study showed that its approved drug Ubrelvy to treat migraine headaches, given during the prodrome phase of migraine attack, significantly reduced the likelihood of development of headache. The prodrome is the earliest of four phases of a migraine attack and consists of various symptoms, including sensitivity to light, sound, fatigue, and neck pain, that can be an early sign that the headache phase will follow. During the trial, patients with migraine who could identify prodromal symptoms that led to headache at least 75% of the time were given either Ubrelvy or placebo. | (RTTNews) - AbbVie (ABBV) Thursday said results from the Phase 3 PRODROME study showed that its approved drug Ubrelvy to treat migraine headaches, given during the prodrome phase of migraine attack, significantly reduced the likelihood of development of headache. During the trial, patients with migraine who could identify prodromal symptoms that led to headache at least 75% of the time were given either Ubrelvy or placebo. 46% of patients treated with Ubrelvy as compared to 29% of patients treated with placebo did not have moderate or severe headaches within 24 hours after prodrome events. | (RTTNews) - AbbVie (ABBV) Thursday said results from the Phase 3 PRODROME study showed that its approved drug Ubrelvy to treat migraine headaches, given during the prodrome phase of migraine attack, significantly reduced the likelihood of development of headache. The prodrome is the earliest of four phases of a migraine attack and consists of various symptoms, including sensitivity to light, sound, fatigue, and neck pain, that can be an early sign that the headache phase will follow. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) Thursday said results from the Phase 3 PRODROME study showed that its approved drug Ubrelvy to treat migraine headaches, given during the prodrome phase of migraine attack, significantly reduced the likelihood of development of headache. The prodrome is the earliest of four phases of a migraine attack and consists of various symptoms, including sensitivity to light, sound, fatigue, and neck pain, that can be an early sign that the headache phase will follow. The results were published in The Lancet. |
22042.0 | 2023-11-15 00:00:00 UTC | iShares Russell 1000 Growth ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-russell-1000-growth-etf-experiences-big-inflow-8 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $847.1 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 263,200,000 to 266,150,000). Among the largest underlying components of IWF, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, Costco Wholesale Corp (Symbol: COST) is up about 1.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.6%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $209.27 per share, with $288.47 as the 52 week high point — that compares with a last trade of $287.92. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWF, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, Costco Wholesale Corp (Symbol: COST) is up about 1.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.6%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of IWF, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, Costco Wholesale Corp (Symbol: COST) is up about 1.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.6%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $209.27 per share, with $288.47 as the 52 week high point — that compares with a last trade of $287.92. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of IWF, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, Costco Wholesale Corp (Symbol: COST) is up about 1.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $847.1 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 263,200,000 to 266,150,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $209.27 per share, with $288.47 as the 52 week high point — that compares with a last trade of $287.92. | Among the largest underlying components of IWF, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, Costco Wholesale Corp (Symbol: COST) is up about 1.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $847.1 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 263,200,000 to 266,150,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $209.27 per share, with $288.47 as the 52 week high point — that compares with a last trade of $287.92. |
22043.0 | 2023-11-15 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-9 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22044.0 | 2023-11-14 00:00:00 UTC | At $100 Does Merck Stock Have Room For Growth? | ABBV | https://www.nasdaq.com/articles/at-%24100-does-merck-stock-have-room-for-growth | nan | nan | Merck (NYSE: MRK) reported its Q3 results last month, with revenues and earnings beating the street estimates, and we believe that MRK stock has ample room for growth, as discussed below. The company reported revenue of $16.0 billion and adjusted profit of $2.13 per share compared to the consensus estimates of $15.3 billion in sales and $1.96 earnings per share. In this note, we discuss Merck’s stock performance, key takeaways from its recent results, and valuation.
MRK stock has shown strong gains of 25% from levels of $80 in early January 2021 to around $100 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. However, the increase in MRK stock has been far from consistent. Returns for the stock were -6% in 2021, 45% in 2022, and -8% in 2023 (YTD).
In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 13% in 2023 (YTD) – indicating that MRK underperformed the S&P in 2021 and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Health Care sector, including LLY, UNH, and JNJ, and even for the megacap stars GOOG, TSLA, and MSFT.
In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could MRK face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump? From a valuation perspective, MRK stock looks like it has room for growth. We estimate Merck’s Valuation to be $122 per share, reflecting about 20% upside from its current price of around $100. Our forecast is based on a 14x P/E multiple for MRK and expected earnings of $8.53 on a per-share and adjusted basis for the full year 2024. We are using the 2024 earnings figure given that the 2023 adjusted EPS is expected to be much lower at $1.37 due to a $17.1 billion R&D charge related to the Prometheus and Imago acquisitions and upfront payments for collaboration agreements with Kelun-Biotech and Daiichi Sankyo. The company lowered its 2023 earnings outlook to be in the range of $1.33 and $1.38 (vs. the $2.95 and $3.05 range earlier), reflecting its recent pretax charge of $5.5 billion for the collaboration agreement with Daiichi Sankyo.
Merck’s revenue of $16.0 billion in Q3 was up 7% y-o-y, primarily due to higher sales of Keytruda, Gardasil, and its Covid-19 antiviral – Lagevrio. Excluding Lagevrio, sales were up 6%, driven by continued market share gains for Keytruda, which saw a 17% y-o-y jump in sales to $6.3 billion. For the full year 2023, the company raised its total revenue outlook to $59.7 billion and $60.2 billion versus the $58.6 billion to $59.6 billion guidance provided in August. Merck’s adjusted profit of $5.4 billion in Q3 2023 reflected a 15% growth from its $4.7 billion profit figure in the prior-year quarter. The adjusted profit of $2.13 per share was higher than the $1.85 figure in the prior year quarter.
Looking forward, Merck should continue to benefit from the label expansion of Keytruda and strong demand for its HPV vaccine – Gardasil. The company’s recent acquisitions, including Prometheus, Acceleron, and Imago, will further bolster its top and bottom-line growth in the coming years. At its current price of around $100, MRK stock trades at 12x forward earnings compared to its last five-year average of 13x, and it will likely see higher levels, in our view.
While MRK stock looks like it has some room for growth, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Nov 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return 0% -8% 74%
S&P 500 Return 4% 13% 94%
Trefis Reinforced Value Portfolio 2% 20% 518%
[1] Month-to-date and year-to-date as of 11/10/2023
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Health Care sector, including LLY, UNH, and JNJ, and even for the megacap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could MRK face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump? We are using the 2024 earnings figure given that the 2023 adjusted EPS is expected to be much lower at $1.37 due to a $17.1 billion R&D charge related to the Prometheus and Imago acquisitions and upfront payments for collaboration agreements with Kelun-Biotech and Daiichi Sankyo. | The company reported revenue of $16.0 billion and adjusted profit of $2.13 per share compared to the consensus estimates of $15.3 billion in sales and $1.96 earnings per share. For the full year 2023, the company raised its total revenue outlook to $59.7 billion and $60.2 billion versus the $58.6 billion to $59.6 billion guidance provided in August. Merck’s adjusted profit of $5.4 billion in Q3 2023 reflected a 15% growth from its $4.7 billion profit figure in the prior-year quarter. | Merck (NYSE: MRK) reported its Q3 results last month, with revenues and earnings beating the street estimates, and we believe that MRK stock has ample room for growth, as discussed below. For the full year 2023, the company raised its total revenue outlook to $59.7 billion and $60.2 billion versus the $58.6 billion to $59.6 billion guidance provided in August. Total [2] MRK Return 0% -8% 74% S&P 500 Return 4% 13% 94% Trefis Reinforced Value Portfolio 2% 20% 518% [1] Month-to-date and year-to-date as of 11/10/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company reported revenue of $16.0 billion and adjusted profit of $2.13 per share compared to the consensus estimates of $15.3 billion in sales and $1.96 earnings per share. We estimate Merck’s Valuation to be $122 per share, reflecting about 20% upside from its current price of around $100. Total [2] MRK Return 0% -8% 74% S&P 500 Return 4% 13% 94% Trefis Reinforced Value Portfolio 2% 20% 518% [1] Month-to-date and year-to-date as of 11/10/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
22045.0 | 2023-11-14 00:00:00 UTC | 7 Dividend Stocks Every Investor Should Own to Survive a Market Crash | ABBV | https://www.nasdaq.com/articles/7-dividend-stocks-every-investor-should-own-to-survive-a-market-crash | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are many ways to make money on Wall Street. One of the best proven strategies is buying and holding dividend stocks for long-term wealth creation.
Countless studies prove the superiority of income-generating stocks. The asset managers at Hartford Funds looked at the performance of the benchmark S&P 500 going back to 1930. They found that although there were periods when the index produced negative returns, dividend stocks always produced positive returns. That was backed by JPMorgan‘s asset management division which found stocks that initiated and then raised their payouts over the 40 years between 1972 and 2012 returned an average of 9.5% annually, compared to just 1.6% non-dividend-paying stocks.
Mind you these results were across periods when there were recessions, depressions, world wars, global pandemics, and geopolitical events that crippled nations. Dividend stocks always shined.
If you think the U.S.’s third-quarter economic expansion was the high-water mark, what follows are seven dividend stocks for a market crash that will protect your portfolio.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
It doesn’t look like AbbVie (NYSE:ABBV) would be a good choice for surviving a market crash. The pharmaceutical is down 14% year-to-date versus a 15% gain in the S&P 500. That’s because its lead drug Humira lost patent protection at the start of the year and generics and biosimilars have eaten away at sales. U.S. revenue for the arthritis treatment of $16 billion over the first nine months of 2023 is down 11% from last year.
Yet AbbVie has about a dozen other drugs that generate over $1 billion annually along with a strong pipeline of therapies that should come to market eventually. It’s also looking to extend existing treatments into new indications. All of these drugs keep the pharma quite profitable.
The market is offering AbbVie at a tremendous discount. The stock trades at 12 times next year’s earnings and a bargain-based 10x free cash flow (FCF). This Dividend King offers a 4.2% yield and will be solid for your portfolio over the long haul no matter what the market throws at it.
Bank of America (BAC)
Source: Shutterstock
Bank of America (NYSE:BAC) also gives the impression it’s not suitable as a buffer against a market crash. Shares of the banking giant are down 16% this year after the financial markets buckled under a number of high-profile crashes. Regulators seized Signature Bank (OTCMKTS:SBNY), Silicon Valley Bank, and First Republic Bank (OTCMKTS:FRCB). The Federal Reserve’s interest rate policies also hurt the bank more than its peers because Bank of America purchased long-term, low-yield assets during the pandemic. It is more sensitive to the high-interest rate environment we’re in.
The bank’s net interest income (NII) is pressured as a result but says the fourth quarter will be the tough period before it turns and rises next year. As the second largest U.S. bank by assets, Bank of America is still a secure institution not at risk of collapse. Its dividend is also safe and yields a healthy 3.3% annually.
Warren Buffett also loves Bank of America. He sold out of most of his financial stocks during the banking turbulence, but held tightly onto the more than one billion BAC shares he owns. He told shareholders, “we do remain with one bank…I like Bank of America and I like the management.” Investors may want to ride with Buffett on this beaten-down financial institution.
Costco (COST)
Source: Shutterstock
Even if AbbVie and Bank of America are rock-solid long-term investments, investors will appreciate Costco (NASDAQ:COST) showing superior gains in 2023. The stock is up 26% so far and will offer downside protection if the market crashes. It’s not recession-proof, but it is resistant. It relies upon high-volume,low-margin sales that can be compressed when interest rates rise.
Still, because Costco’s customer base tends to be more upscale it will decline more slowly and for shorter periods than its rivals. The typical customer at the third-largest U.S. retailer earns around $125,000 a year compared to about $80,000 at Walmart (NYSE:WMT).
According to the location data analysts at Placer.ai, Costco is the only retailer amongst superstores and warehouse clubs to show increased foot traffic every quarter of 2023. They may be cutting back on pricier purchases when in the store, but they’re coming back often.
Cotsco’s dividend isn’t going to wow you with its 0.7% yield, but it’s a consistently paid one for the past decade. Costco has also raised it every single year and paid a special $10 per share dividend during the pandemic.
LVMH Moet Hennessy Louis Vuitton (LVMUY)
Source: Vietnam stock photos / Shutterstock
Luxury retailer LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) also has the same sort of resistance to collapsing during economic pressure. Straddling the fence of accessible luxury and super-premium brands, the fashion house is considered a core premium brand. It owns 75 “houses” featuring 60 different brands including Dior, Fendi, Bvlgari, Louis Vuitton, and more. High-end wine and spirits brands include Dom Perignon, Moet & Chandon, and Hennessy.
LVMH’s customer base is the top 5% of uber-luxury spenders. They represent 40% of global luxury sales. And even if domestic sales are slowing as economic concerns rise, they’re growing internationally as tourism remains robust in Europe. Luxury market sales are expect to grow 10% this year, according to a Bain & Co. survey.
The well-heeled retailer offers protection because of its diversification across geographies and brands. It offers clothes, accessories, jewelry, and drinks. All are subject to different variables that affect them at different times. LVMH did cut its dividend during the pandemic to conserve costs as virtually all retail was shut down but has resumed its policy of increasing the payout. Earlier this year it raised the dividend 20% to 12 euro per share.
Altria (MO)
Source: viewimage / Shutterstock.com
Even if cigarette smoking is in a secular decline, Altria (NYSE:MO) deserves a spot in your portfolio for when the market crashes. Tobacco tends to be enormously resistant to economic downturns when companies like Altria are still able to raise prices.
The addictive nature of nicotine keeps smokers coming back despite rising prices. However, Altria and the rest of the industry are pursuing safer alternatives for users. Vaping, electronic cigarettes, nicotine lozenges and pouches, and more could provide more sales, profits, and opportunities in the future.
The tobacco giant’s Marlboro brand commands the largest slice of the market with a 42.3% share. In the premium market, it has a 58.9% share. Altria recently completed its acquisition of NJOY, the country’s third-largest e-cig manufacturer. It intends to focus on accelerating NJOY’s growth by distributing it to 70,000 stores by the end of the year.
British American Tobacco‘s (NYSE:BTI) Vuse brand is the leading e-cig with a 41.5% share. Runner-up Juul, which Altria finally disassociated itself from, has a 24.7% share. NJOY is far behind in third with a 2.6% share. Expect that to grow, however, as it steals market share from its rivals due to Altria’s marketing muscle.
The tobacco stock’s dividend yields 9.6% annually and trades at a deeply discounted 8x FCF.
PPG Industries (PPG)
Source: Jonathan Weiss / Shutterstock.com
When looking for dividend stocks to survive a market crash, longevity and stability are paramount. Investors get that in spades with paint and coatings specialist PPG Industries (NYSE:PPG). Founded in 1883, PPG began making dividend payments in 1899 and hasn’t stopped. It became a Dividend King in 2021 when it raised the payout for the 50th consecutive year. The dividend yields a respectable 2% annually.
Its history shows PPG knows a thing or two about thriving in market turmoil. As one of the largest players in the industry with Sherwin-Williams (NYSE:SHW) and Akzo Nobel (OTCMKTS:AKZOY), it tends to grow regardless of conditions. During booms, paint and coatings are needed for new homes and office space. During downturns, consumers find paint to be a cost-effective way to freshen a space.
PPG’s stock is up 2% this year, but 12% higher over the past 12 months. It trades at a reasonable 15 times earnings estimates and 19x FCF. That means you’re not buying at a discount, but you’re getting a consistent performer for decades to come.
T-Mobile (TMUS)
Source: r.classen / Shutterstock.com
Telecom giant T-Mobile (NASDAQ:TMUS) is last on the list of market crash stocks to own, though it shouldn’t necessarily be at the bottom of stocks to buy. Wall Street forecasts the sixth-largest global telecom will grow earnings at an eye-popping 67% a year for the next five years. In comparison, earnings at AT&T (NYSE:T) and Verizon (NYSE:VZ) will be essentially flat and no one in the industry is expected to grow faster.
T-Mobile surpassed Verizon in the third quarter to become the biggest prepaid carrier. It had 21.6 million customers compared to its rival’s 21.4 million (Ma Bell had 19.4 million). With its pending acquisitions of Mint Mobile and Ultra Mobile, T-Mobile may be padding that lead shortly.
The reason behind its growth is superior quality of service. A new survey by Ookla found the telecom had the fastest download and upload speeds, lowest latency, and best consistency. It also beat Verizon and AT&T (and everyone else) in every other category surveyed too.
With a yield of just 0.4% annually, T-Mobile’s dividend is not winning any awards, but for the safety and strength of the business, investors should not hang up on the telecom.
On the date of publication, Rich Duprey held a LONG position in ABBV, MO, PPG, and T stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com It doesn’t look like AbbVie (NYSE:ABBV) would be a good choice for surviving a market crash. Yet AbbVie has about a dozen other drugs that generate over $1 billion annually along with a strong pipeline of therapies that should come to market eventually. The market is offering AbbVie at a tremendous discount. | Costco (COST) Source: Shutterstock Even if AbbVie and Bank of America are rock-solid long-term investments, investors will appreciate Costco (NASDAQ:COST) showing superior gains in 2023. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com It doesn’t look like AbbVie (NYSE:ABBV) would be a good choice for surviving a market crash. Yet AbbVie has about a dozen other drugs that generate over $1 billion annually along with a strong pipeline of therapies that should come to market eventually. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com It doesn’t look like AbbVie (NYSE:ABBV) would be a good choice for surviving a market crash. Yet AbbVie has about a dozen other drugs that generate over $1 billion annually along with a strong pipeline of therapies that should come to market eventually. The market is offering AbbVie at a tremendous discount. | Costco (COST) Source: Shutterstock Even if AbbVie and Bank of America are rock-solid long-term investments, investors will appreciate Costco (NASDAQ:COST) showing superior gains in 2023. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com It doesn’t look like AbbVie (NYSE:ABBV) would be a good choice for surviving a market crash. Yet AbbVie has about a dozen other drugs that generate over $1 billion annually along with a strong pipeline of therapies that should come to market eventually. |
22046.0 | 2023-11-14 00:00:00 UTC | Zacks Industry Outlook Highlights Eli Lilly, Novo Nordisk, J&J and AbbVie | ABBV | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-eli-lilly-novo-nordisk-jj-and-abbvie | nan | nan | For Immediate Release
Chicago, IL – November 14, 2023 – Today, Zacks Equity Research discusses Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV.
Industry: Big Pharma
Link: https://www.zacks.com/commentary/2183148/4-large-drug-stocks-likely-to-sail-through-industry-woes
The third-quarter earnings season has just concluded for the drug and biotech sector. The performance of the large drugmakers was rather lukewarm, with most posting mixed results.
Higher tax rates due to changes in global tax regulations, concerns around the economy and inflation, regular pipeline setbacks and the slow ramp-up of newer drugs may hurt the stock prices of drug developers. Uncertainty about the impact of Medicare drug price negotiations and the Federal Trade Commission's (FTC) scrutiny of M&A deals in the sector remain overhangs. Nonetheless, innovation is likely to drive growth in the industry, with key spaces like weight loss/obesity and Alzheimer's disease drugs attracting attention. M&A activity also remains strong, which shows growth.
Among the large drugmakers, Eli Lilly, Novo Nordisk, J&J and AbbVie are worth retaining in your portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that develop multi-million dollar drugs for a broad range of therapeutic areas like neuroscience, cardiovascular and metabolism, rare diseases, immunology and oncology. Some of these companies also make vaccines, animal health, medical devices and consumer-related healthcare products. All these players invest millions of dollars in their product pipelines and line extensions of their already-marketed drugs.
Continuous innovation is a defining characteristic of pharma companies and these large drugmakers are constantly investing in drug development and the discovery of new medicines. Regular mergers and acquisitions and collaboration deals are other key features of large drug companies.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success: For big drugmakers, an innovative pipeline is a competitive necessity and key to top-line growth. Pharma companies are constantly striving to ramp up innovation and spend a significantly high portion of their revenues on R&D. Successful innovation and product line extensions in important therapeutic areas, and strong clinical study results may act as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activity. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies, sitting on huge piles of cash, regularly buy innovative small/mid-cap biotech companies to build out their pipelines. Also, the sloppy sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices and the emergence of big tech firms like Apple and Google in the healthcare industry whet the M&A appetite of large drugmakers.
Fast-growing and lucrative markets such as oncology, rare disease and cell and gene therapy are likely to remain focus areas for M&A activities. Also, collaborations and partnerships with smaller companies are in full swing. Of late, areas like obesity and inflammatory bowel disease are attracting buyout interest. Among some top deals of the year, Pfizer has offered to buy Seagen for $43 billion. The transaction is expected to be closed in late 2023 or early 2024.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share prices. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments, the slowdown in sales of some of the most high-profile older drugs, Medicare drug price negotiations and increasing FTC scrutiny of M&A deals.
Macroeconomic Uncertainty: Rising inflation and interest rates, global supply chain constraints, recent bank failures and the ongoing conflict between Russia and Ukraine have increased broader economic uncertainty. There is still uncertainty surrounding the emergence of new variants of COVID.
Zacks Industry Rank Indicates a Gloomy Outlook
The Zacks Large Cap Pharmaceuticals industry is an 11-stock group within the broader Medical sector. The group's Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #193, which places it in the bottom 23% of 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let's take a look at the industry's performance and its current valuation.
Industry Versus S&P 500 & Sector
The industry has underperformed the S&P 500 but outperformed the Zacks Medical Sector year to date.
Stocks in this industry have collectively risen 10.6% so far this year compared with the Zacks S&P 500 composite's increase of 12.3%. However, the Zacks Medical Sector has declined 9% in the said time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 17.64X compared with the S&P 500's 18.74X and the Zacks Medical Sector's 21.38X.
Over the last five years, the industry has traded as high as 18.10X, as low as 13.31X and at a median of 15.05X.
4 Large Drugmakers Trying to Survive the Industry Challenges
Novo Nordisk: It has one of the broadest diabetes portfolios in the industry, with an extensive portfolio of insulin drugs and diabetes-related products. Semaglutide remains the growth engine for the company. It is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management.
Ozempic, Rybelsus and Saxenda have been helping the company maintain momentum. Wegovy has been witnessing increased demand trends in the United States. Label expansion of these existing drugs is expected to further boost sales. Novo Nordisk has also significantly stepped up its M&A activity in the past two years.
Novo Nordisk has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Estimates for its 2023 earnings per share have increased from $2.51 to $2.62 over the past 30 days. Estimates for 2024 have jumped from $2.95 per share to $3.07 over the same timeframe. The stock has surged 49.5% year to date.
Eli Lilly: It boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Verzenio, Trulicity, Taltz and others. Sales of its new diabetes drug, Mounjaro, approved in 2022, are already benefiting from strong demand trends. Mounjaro is expected to be a key long-term top-line driver for Lilly as it has the potential to be approved for obesity and other diabetes-related diseases.
Mounjaro showed superior weight-loss reduction in clinical studies for obesity. Mounjaro was approved for the obesity indication in the United States in November. Mounjaro will be marketed by the name of Zepbound for chronic weight management. Another important medicine, Omvoh/mirikizumab was approved for ulcerative colitis in the United States and Europe this year.
Lilly expects regulatory decisions for some key pipeline candidates this year or early next year, like Omvoh/mirikizumab for Crohn's disease, Jaypirca/pirtobrutinib for chronic lymphocytic leukemiaand donanemab, among others. All these potential new product launches are expected to drive near-term growth for the company. Lilly has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Lilly's 2023 EPS has declined from $8.43 per share to $6.62 over the past 30 days, while that for 2024 has declined from $13.18 per share to $12.63. The stock has risen 63.4% so far this year.
Johnson & Johnson: With the complete separation of the Consumer Health segment into a new listed company called Kenvue, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. Kenvue now operates as a separate and fully independent company.
J&J's Pharma unit is performing at above-market levels. Growth in 2023 is being driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions. J&J has also taken meaningful steps to resolve its talc and opioid litigation issues.
J&J has a Zacks Rank #3. The Zacks Consensus Estimate for this large drugmaker's 2023 EPS has risen from $10.03 per share to $10.10 over the past 30 days. The stock has declined 16.6% year to date.
AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. Newer immunology medicines, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027.
The company has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025 with a high single-digit CAGR growth till the end of the decade.
AbbVie has a Zacks Rank #3. The Zacks Consensus Estimate for 2023 EPS has risen from $11.03 per share to $11.19 over the past 30 days, while that for 2024 has risen from $11.04 per share to $11.11. The stock has declined 14.2% so far this year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – November 14, 2023 – Today, Zacks Equity Research discusses Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV. Among the large drugmakers, Eli Lilly, Novo Nordisk, J&J and AbbVie are worth retaining in your portfolio. AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. | For Immediate Release Chicago, IL – November 14, 2023 – Today, Zacks Equity Research discusses Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Among the large drugmakers, Eli Lilly, Novo Nordisk, J&J and AbbVie are worth retaining in your portfolio. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 14, 2023 – Today, Zacks Equity Research discusses Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV. Among the large drugmakers, Eli Lilly, Novo Nordisk, J&J and AbbVie are worth retaining in your portfolio. | Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025 with a high single-digit CAGR growth till the end of the decade. For Immediate Release Chicago, IL – November 14, 2023 – Today, Zacks Equity Research discusses Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV. Among the large drugmakers, Eli Lilly, Novo Nordisk, J&J and AbbVie are worth retaining in your portfolio. |
22047.0 | 2023-11-14 00:00:00 UTC | 2 High-Yield Dividend Stocks You Can Buy Now and Hold for a Decade | ABBV | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-you-can-buy-now-and-hold-for-a-decade | nan | nan | There are no absolutely surefire ways to make big profits as an investor, but it's hard to do better than dividend-paying stocks. Businesses that commit to sharing a portion of their profits with their investors tend to outperform businesses that don't, and by a wide margin.
Over the 50-year period from 1973 through 2022, stocks in the S&P 500 index that grew or initiated dividend payments rose by 10.24% annually on average, according to Hartford Funds and Ned Davis Research. But stocks in that benchmark index that didn't pay dividends rose at an average pace of just 3.95% annually.
Image source: Getty Images.
These two companies have long histories of raising their dividend payouts. Here's why putting them in your portfolio now and holding on for at least a decade could deliver market-beating returns, and won't expose your capital to much risk.
Medtronic
Hardly anyone gets to choose when they need one of Medtronic's (NYSE: MDT) pacemakers, insulin pumps, or any of the other medical devices that it manufactures. Steadily growing sales to a growing global population have allowed Medtronic to raise its dividend payout every year for 46 consecutive years.
Yet shares of Medtronic are down by about 48% from the peak they touched in 2021. At recent share prices, the stock offers a 3.9% dividend yield -- way above the S&P 500's average of just 1.6% at the moment.
The bad news is that Medtronic's trailing free cash flow is down near a five-year low of about $4.4 billion. The company needed about 82% of the free cash flow it generated over the past 12 months to meet its dividend commitments. This means there won't be much room for big dividend bumps if profits don't start rising steadily again.
Medtronic's continuous glucose monitors haven't performed well against competing products from Dexcom and Abbott Laboratories, but they don't necessarily need to. Training surgeons to use new devices is expensive in time and other resources, so when possible, most hospitals would rather avoid it. This has helped propel Medtronic's cardiovascular and neuroscience segments to steady gains that have offset its diabetes unit's disappointing performance.
As the world's largest medical device company, Medtronic might not be the fastest-growing business in your portfolio, but a diverse product lineup could make it extremely reliable.
AbbVie
AbbVie (NYSE: ABBV) shares are down around 21% from the peak they hit in 2022. At recent prices, the stock offers a tempting 4.5% dividend yield.
The stock has offered an unusually high dividend yield since the payout's inception in 2013 (shortly after AbbVie's spinoff from Abbott Labs) because investors have been nervous about the long-term sales prospects of its lead product, the blockbuster injectable anti-inflammatory drug Humira. Humira lost patent-protected market exclusivity in the U.S. earlier this year, and in the third quarter, U.S. sales of the drug fell 39% year over year to $3.0 billion.
At an annualized rate of $12.1 billion based on those third-quarter results, U.S. sales of Humira could fall much further. But AbbVie can offset the losses by growing its sales of newer drugs. For example, Skyrizi is a psoriasis injection that launched in 2019 and it's already on pace to rack up $8.5 billion in annual sales. Rinvoq, a treatment for rheumatoid arthritis that launched around the same time as Skyrizi is on pace to reach $4.4 billion in sales this year. Those two drugs were developed to treat many of the same conditions as Humira.
AbbVie recently raised its earnings per share outlook for 2023 to a range of between $11.19 and $11.23. Humira's sales declines are expected to shrink the company's earnings next year -- but not by much. AbbVie hasn't issued a guidance range for 2024 earnings yet, but it is expecting at least $11 per share.
AbbVie's dividend payout is currently set at just $6.20 annually. This means the company could keep raising its payout for at least a few years even if its bottom line hovers around management's predicted 2024 earnings floor. Adding some shares to a portfolio now could be a great way to upgrade your future passive income streams.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock has offered an unusually high dividend yield since the payout's inception in 2013 (shortly after AbbVie's spinoff from Abbott Labs) because investors have been nervous about the long-term sales prospects of its lead product, the blockbuster injectable anti-inflammatory drug Humira. AbbVie AbbVie (NYSE: ABBV) shares are down around 21% from the peak they hit in 2022. But AbbVie can offset the losses by growing its sales of newer drugs. | AbbVie AbbVie (NYSE: ABBV) shares are down around 21% from the peak they hit in 2022. The stock has offered an unusually high dividend yield since the payout's inception in 2013 (shortly after AbbVie's spinoff from Abbott Labs) because investors have been nervous about the long-term sales prospects of its lead product, the blockbuster injectable anti-inflammatory drug Humira. But AbbVie can offset the losses by growing its sales of newer drugs. | The stock has offered an unusually high dividend yield since the payout's inception in 2013 (shortly after AbbVie's spinoff from Abbott Labs) because investors have been nervous about the long-term sales prospects of its lead product, the blockbuster injectable anti-inflammatory drug Humira. AbbVie AbbVie (NYSE: ABBV) shares are down around 21% from the peak they hit in 2022. But AbbVie can offset the losses by growing its sales of newer drugs. | AbbVie AbbVie (NYSE: ABBV) shares are down around 21% from the peak they hit in 2022. But AbbVie can offset the losses by growing its sales of newer drugs. AbbVie's dividend payout is currently set at just $6.20 annually. |
22048.0 | 2023-11-14 00:00:00 UTC | 3 Dividend Giants to Grow Wealth no Matter What the Market Is Doing | ABBV | https://www.nasdaq.com/articles/3-dividend-giants-to-grow-wealth-no-matter-what-the-market-is-doing | nan | nan | Growth stocks are known to stand out in bull markets, while stocks that are considered safer -- like a pharma company promising steady earnings -- generally excel in more difficult markets. It's a great idea to include a bit of both in your portfolio to support performance through any market environment. And there's one other extremely important element that could help your investments grow no matter what the market is doing: dividend stocks.
These players offer you payments every year regardless of their own market performance or the stock market environment. You can either keep these payments and enjoy the passive income or reinvest the dividends to further grow your position in a particular stock.
Now, the big question is: How should you choose a winning dividend player for your portfolio? It's important to consider a company's dividend track record, financial ability to continue payments, and general earnings prospects. Let's check out three dividend giants that could grow your wealth no matter what the market is doing.
Image source: Getty Images.
1. Coca-Cola
Coca-Cola (NYSE: KO) is a Dividend King, meaning it's increased its dividend for more than 50 consecutive years. This shows rewarding shareholders is a priority for the beverage powerhouse -- so it's likely to continue on that path. And Coca-Cola has the financial strength to do so, with more than $10 billion in free cash flow.
Today, you can count on an annual dividend of $1.84 per share from the company, representing a dividend yield of 3.24%. That's much higher than the 1.62% dividend yield of the S&P 500.
Meanwhile, you'll also like the fact that Coca-Cola's brand strength allows it to raise prices and continue to grow even through a difficult economic environment. In the most recent quarter, the company reported gains in revenue, earnings, and market share.
This moat, or competitive advantage, should keep the world's biggest non-alcoholic beverage maker growing over the long term. And that's great news for its dividend and shareholders.
2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) also is a Dividend King, offering evidence of its commitment to dividend growth. The pharma giant, like Coca-Cola, has plenty of free cash flow -- more than $15 billion -- to support these promises.
J&J pays an annual dividend of $4.76 at a yield of 3.23%, surpassing the yield of the S&P 500.
So, with J&J, you could collect a significant amount of passive income -- of course, the exact amount depends on how many shares you buy -- and you're likely to see that sum grow year after year.
Now is a particularly good time to get in on the J&J story as the company may be heading for a new era of growth. J&J recently spun off its consumer health unit, a slower-growth business, to favor its higher-growth businesses of pharma and medtech. The spinoff brought in proceeds of more than $13 billion -- and those and other funds focused on pharma and medtech could result in significant growth over time.
3. AbbVie
AbbVie (NYSE: ABBV) saw the light of day in 2013 when it spun off from Abbott Laboratories. And since then, the company has lifted its quarterly dividend more than 285%. The pharma player has more than $24 billion in free cash flow thanks to a solid portfolio of products including one of the world's top-selling drugs, Humira.
Right now, AbbVie pays an annual dividend of $6.20 at a yield of 4.47%, making it another dividend stock that tops the yield of the S&P 500.
Today, AbbVie is proving it has what it takes to lift its dividend even through difficult times. Humira recently lost exclusivity, which is weighing on earnings, and even though AbbVie is grooming two other immunology candidates to, together, top Humira's peak sales, this won't happen overnight. Yet the company recently emphasized its commitment to dividend growth and announced double-digit growth for those younger immunology candidates.
So, there's reason to be excited about AbbVie's ability to grow both its dividend and earnings over time.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) saw the light of day in 2013 when it spun off from Abbott Laboratories. Right now, AbbVie pays an annual dividend of $6.20 at a yield of 4.47%, making it another dividend stock that tops the yield of the S&P 500. Today, AbbVie is proving it has what it takes to lift its dividend even through difficult times. | AbbVie AbbVie (NYSE: ABBV) saw the light of day in 2013 when it spun off from Abbott Laboratories. Right now, AbbVie pays an annual dividend of $6.20 at a yield of 4.47%, making it another dividend stock that tops the yield of the S&P 500. Today, AbbVie is proving it has what it takes to lift its dividend even through difficult times. | Right now, AbbVie pays an annual dividend of $6.20 at a yield of 4.47%, making it another dividend stock that tops the yield of the S&P 500. AbbVie AbbVie (NYSE: ABBV) saw the light of day in 2013 when it spun off from Abbott Laboratories. Today, AbbVie is proving it has what it takes to lift its dividend even through difficult times. | Right now, AbbVie pays an annual dividend of $6.20 at a yield of 4.47%, making it another dividend stock that tops the yield of the S&P 500. AbbVie AbbVie (NYSE: ABBV) saw the light of day in 2013 when it spun off from Abbott Laboratories. Today, AbbVie is proving it has what it takes to lift its dividend even through difficult times. |
22049.0 | 2023-11-13 00:00:00 UTC | 4 Large Drug Stocks Likely to Sail Through Industry Woes | ABBV | https://www.nasdaq.com/articles/4-large-drug-stocks-likely-to-sail-through-industry-woes | nan | nan | The third-quarter earnings season has just concluded for the drug and biotech sector. The performance of the large drugmakers was rather lukewarm, with most posting mixed results.
Higher tax rates due to changes in global tax regulations, concerns around the economy and inflation, regular pipeline setbacks and the slow ramp-up of newer drugs may hurt the stock prices of drug developers. Uncertainty about the impact of Medicare drug price negotiations and the Federal Trade Commission’s (FTC) scrutiny of M&A deals in the sector remain overhangs. Nonetheless, innovation is likely to drive growth in the industry, with key spaces like weight loss/obesity and Alzheimer’s disease drugs attracting attention. M&A activity also remains strong, which shows growth.
Among the large drugmakers, Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV are worth retaining in your portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that develop multi-million dollar drugs for a broad range of therapeutic areas like neuroscience, cardiovascular and metabolism, rare diseases, immunology and oncology. Some of these companies also make vaccines, animal health, medical devices and consumer-related healthcare products. All these players invest millions of dollars in their product pipelines and line extensions of their already-marketed drugs. Continuous innovation is a defining characteristic of pharma companies and these large drugmakers are constantly investing in drug development and the discovery of new medicines. Regular mergers and acquisitions and collaboration deals are other key features of large drug companies.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success: For big drugmakers, an innovative pipeline is a competitive necessity and key to top-line growth. Pharma companies are constantly striving to ramp up innovation and spend a significantly high portion of their revenues on R&D. Successful innovation and product line extensions in important therapeutic areas, and strong clinical study results may act as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activity. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies, sitting on huge piles of cash, regularly buy innovative small/mid-cap biotech companies to build out their pipelines. Also, the sloppy sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices and the emergence of big tech firms like Apple and Google in the healthcare industry whet the M&A appetite of large drugmakers. Fast-growing and lucrative markets such as oncology, rare disease and cell and gene therapy are likely to remain focus areas for M&A activities. Also, collaborations and partnerships with smaller companies are in full swing. Of late, areas like obesity and inflammatory bowel disease are attracting buyout interest. Among some top deals of the year, Pfizer has offered to buy Seagen for $43 billion. The transaction is expected to be closed in late 2023 or early 2024.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share prices. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments, the slowdown in sales of some of the most high-profile older drugs, Medicare drug price negotiations and increasing FTC scrutiny of M&A deals.
Macroeconomic Uncertainty: Rising inflation and interest rates, global supply chain constraints, recent bank failures and the ongoing conflict between Russia and Ukraine have increased broader economic uncertainty. There is still uncertainty surrounding the emergence of new variants of COVID.
Zacks Industry Rank Indicates a Gloomy Outlook
The Zacks Large Cap Pharmaceuticals industry is an 11-stock group within the broader Medical sector. The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #193, which places it in the bottom 23% of 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s performance and its current valuation.
Industry Versus S&P 500 & Sector
The industry has underperformed the S&P 500 but outperformed the Zacks Medical Sector year to date.
Stocks in this industry have collectively risen 10.6% so far this year compared with the Zacks S&P 500 composite’s increase of 12.3%. However, the Zacks Medical Sector has declined 9% in the said time frame.
Year-to-Date Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 17.64X compared with the S&P 500’s 18.74X and the Zacks Medical Sector's 21.38X.
Over the last five years, the industry has traded as high as 18.10X, as low as 13.31X and at a median of 15.05X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
4 Large Drugmakers Trying to Survive the Industry Challenges
Novo Nordisk: It has one of the broadest diabetes portfolios in the industry, with an extensive portfolio of insulin drugs and diabetes-related products. Semaglutide remains the growth engine for the company. It is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Ozempic, Rybelsus and Saxenda have been helping the company maintain momentum. Wegovy has been witnessing increased demand trends in the United States. Label expansion of these existing drugs is expected to further boost sales. Novo Nordisk has also significantly stepped up its M&A activity in the past two years.
Novo Nordisk has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for its 2023 earnings per share have increased from $2.51 to $2.62 over the past 30 days. Estimates for 2024 have jumped from $2.95 per share to $3.07 over the same timeframe. The stock has surged 49.5% year to date.
Price and Consensus: NVO
Eli Lilly: It boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Verzenio, Trulicity, Taltz and others. Sales of its new diabetes drug, Mounjaro, approved in 2022, are already benefiting from strong demand trends. Mounjaro is expected to be a key long-term top-line driver for Lilly as it has the potential to be approved for obesity and other diabetes-related diseases.
Mounjaro showed superior weight-loss reduction in clinical studies for obesity. Mounjaro was approved for the obesity indication in the United States in November. Mounjaro will be marketed by the name of Zepbound for chronic weight management. Another important medicine, Omvoh/mirikizumab was approved for ulcerative colitis in the United States and Europe this year.
Lilly expects regulatory decisions for some key pipeline candidates this year or early next year, like Omvoh/mirikizumab for Crohn's disease, Jaypirca/pirtobrutinib for chronic lymphocytic leukemiaand donanemab, among others. All these potential new product launches are expected to drive near-term growth for the company. Lilly has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Lilly’s 2023 EPS has declined from $8.43 per share to $6.62 over the past 30 days, while that for 2024 has declined from $13.18 per share to $12.63. The stock has risen 63.4% so far this year.
Price and Consensus: LLY
Johnson & Johnson: With the complete separation of the Consumer Health segment into a new listed company called Kenvue, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. Kenvue now operates as a separate and fully independent company.
J&J’s Pharma unit is performing at above-market levels. Growth in 2023 is being driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions. J&J has also taken meaningful steps to resolve its talc and opioid litigation issues.
J&J has a Zacks Rank #3. The Zacks Consensus Estimate for this large drugmaker’s 2023 EPS has risen from $10.03 per share to $10.10 over the past 30 days. The stock has declined 16.6% year to date.
Price and Consensus: JNJ
AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. Newer immunology medicines, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027.
The company has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025 with a high single-digit CAGR growth till the end of the decade.
AbbVie has a Zacks Rank #3. The Zacks Consensus Estimate for 2023 EPS has risen from $11.03 per share to $11.19 over the past 30 days, while that for 2024 has risen from $11.04 per share to $11.11. The stock has declined 14.2% so far this year.
Price and Consensus: ABBV
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Eli Lilly and Company (LLY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the large drugmakers, Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV are worth retaining in your portfolio. Price and Consensus: JNJ AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027. | Click to get this free report Eli Lilly and Company (LLY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Among the large drugmakers, Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV are worth retaining in your portfolio. Price and Consensus: JNJ AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. | Click to get this free report Eli Lilly and Company (LLY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Among the large drugmakers, Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV are worth retaining in your portfolio. Price and Consensus: JNJ AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. | Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025 with a high single-digit CAGR growth till the end of the decade. Among the large drugmakers, Eli Lilly LLY, Novo Nordisk NVO, J&J JNJ and AbbVie ABBV are worth retaining in your portfolio. Price and Consensus: JNJ AbbVie: The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost revenues from its blockbuster medicine, Humira, which lost patent exclusivity in the United States in 2023. |
22050.0 | 2023-11-13 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-21 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22051.0 | 2023-11-13 00:00:00 UTC | The Zacks Analyst Blog Highlights NVIDIA, Chevron, AbbVie, Alibaba Group Holding and Morgan Stanley | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-nvidia-chevron-abbvie-alibaba-group-holding-and-morgan | nan | nan | For Immediate Release
Chicago, IL – November 13, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Chevron Corp. CVX, AbbVie Inc. ABBV, Alibaba Group Holding Ltd. BABA and Morgan Stanley MS
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for NVIDIA, Chevron and AbbVie
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., Chevron Corp. and AbbVie Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
NVIDIA shares have literally been on fire, outperforming the chips space (up +228% vs. +124.9% for the Zacks Semiconductor industry) and the broader market (+228% vs. +14.3% for the S&P 500 index) in the year-to-date period. The company is gaining from strong growth of artificial intelligence (AI), high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds.
Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space. However, NVDA's near-term prospects likely to hurt by weakening demand for chips used in the professional visualization end market.
(You can read the full research report on NVIDIA here >>>)
Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past six months (-7.4% vs. -0.6%). The company is grappled with the 2020 commodity price crash, leading to substantial spending cuts. Concerns include high sensitivity to oil prices and a 10-year reserve replacement ratio of 100%, indicating challenges in replenishing produced energy.
Considering all these factors, investors are advised to wait for a better entry point. Despite this, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana.
(You can read the full research report on Chevron here >>>)
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). The company is facing concerns about long-term sales growth since Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise's sales.
Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. Estimate movements have been mixed ahead of Q3 results. ABBV reported impressive earnings surprise in recent quarters.
Also, AbbVie has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Alibaba Group Holding Ltd., and Morgan Stanley.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Chevron Corp. CVX, AbbVie Inc. ABBV, Alibaba Group Holding Ltd. BABA and Morgan Stanley MS Here are highlights from Friday’s Analyst Blog: Top Research Reports for NVIDIA, Chevron and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., Chevron Corp. and AbbVie Inc. Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). | Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Chevron Corp. CVX, AbbVie Inc. ABBV, Alibaba Group Holding Ltd. BABA and Morgan Stanley MS Here are highlights from Friday’s Analyst Blog: Top Research Reports for NVIDIA, Chevron and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., Chevron Corp. and AbbVie Inc. Click to get this free report Morgan Stanley (MS) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Chevron Corp. CVX, AbbVie Inc. ABBV, Alibaba Group Holding Ltd. BABA and Morgan Stanley MS Here are highlights from Friday’s Analyst Blog: Top Research Reports for NVIDIA, Chevron and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., Chevron Corp. and AbbVie Inc. Click to get this free report Morgan Stanley (MS) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Chevron Corp. CVX, AbbVie Inc. ABBV, Alibaba Group Holding Ltd. BABA and Morgan Stanley MS Here are highlights from Friday’s Analyst Blog: Top Research Reports for NVIDIA, Chevron and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., Chevron Corp. and AbbVie Inc. Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). |
22052.0 | 2023-11-13 00:00:00 UTC | Investors Heavily Search AbbVie Inc. (ABBV): Here is What You Need to Know | ABBV | https://www.nasdaq.com/articles/investors-heavily-search-abbvie-inc.-abbv%3A-here-is-what-you-need-to-know-8 | nan | nan | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugmaker have returned -6.3% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $2.91 per share for the current quarter, representing a year-over-year change of -19.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.9%.
For the current fiscal year, the consensus earnings estimate of $11.19 points to a change of -18.7% from the prior year. Over the last 30 days, this estimate has changed +2.2%.
For the next fiscal year, the consensus earnings estimate of $11.11 indicates a change of -0.8% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AbbVie, the consensus sales estimate for the current quarter of $14.01 billion indicates a year-over-year change of -7.4%. For the current and next fiscal years, $53.99 billion and $53.84 billion estimates indicate -7% and -0.3% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.93 billion in the last reported quarter, representing a year-over-year change of -6%. EPS of $2.95 for the same period compares with $3.66 a year ago.
Compared to the Zacks Consensus Estimate of $13.7 billion, the reported revenues represent a surprise of +1.65%. The EPS surprise was +3.15%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $13.93 billion in the last reported quarter, representing a year-over-year change of -6%. AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. AbbVie is expected to post earnings of $2.91 per share for the current quarter, representing a year-over-year change of -19.2%. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. AbbVie is expected to post earnings of $2.91 per share for the current quarter, representing a year-over-year change of -19.2%. |
22053.0 | 2023-11-10 00:00:00 UTC | AbbVie's $21 Billion Drug Humira Is on the Decline. Should You Still Buy This Dividend Stock? | ABBV | https://www.nasdaq.com/articles/abbvies-%2421-billion-drug-humira-is-on-the-decline.-should-you-still-buy-this-dividend | nan | nan | For the past couple of years, investors looked ahead to one particular thing with dread: AbbVie's (NYSE: ABBV) blockbuster immunology drug facing competition. After all, at its peak, Humira brought in almost $21 billion in annual sales, and the treatment helped AbbVie grow revenue and deliver dividend growth over time. So it's logical to wonder whether, today, considering the Humira situation, you should think twice before buying AbbVie.
And you're not the only one. So far this year, AbbVie shares have slipped about 15%. But before turning our backs on this pharmaceutical stock, let's take a closer look at how the revenue situation is evolving -- and find out whether the share price decline is a warning of more to come, or an excellent buying opportunity for investors seeking earnings and dividend growth.
Image source: Getty Images.
A few quarters in to Humira's loss of exclusivity
We're now seen a few quarters of Humira facing competition, and things don't look as bad as we could have initially imagined. In the third quarter, Humira sales fell about 36% to $3.5 billion, about in line with expectations in the U.S. market and better than expectations internationally.
That's positive because the movement is somewhat gradual, making it easier for AbbVie to transition into its post-Humira story. And here's where we get to the really good news: AbbVie has been grooming two other candidates -- now approved in several indications -- to take over where Humira leaves off. I'm talking about newer immunology drugs Skyrizi and Rinvoq, forecast to, together, generate more than $21 billion in revenue by 2027. So if all goes well, these drugs will surpass Humira's peak sales.
Now, here's the best news. In the quarter, Skyrizi and Rinvoq showed they have what it takes to reach that goal. Here are some clues. First, Skyrizi and Rinvoq are on track to deliver more than $11 billion combined in revenue this year after their sales rose 52% and 59%, respectively, in the recent quarter.
Skyrizi has become a market leader in psoriasis treatment and is quickly gaining ground in Crohn's disease. In fact, AbbVie hopes its recent study showing stronger Skyrizi efficacy compared to market giant Stelara will lead to additional market share in Crohn's.
As for Rinvoq, in the most recent quarter it saw prescription growth across approved indications in areas of rheumatology, dermatology, and gastroenterology.
So, it's fair to say these two drugs could be on their way to compensating for the Humira loss -- and even driving additional growth.
Treating bipolar disorder and migraine
Meanwhile, AbbVie's neuroscience drugs, Vraylar for bipolar disorder and Botox treatment for migraine, also are proving to be significant growth drivers -- and AbbVie expects this to continue.
In the quarter, Botox sales rose 7%, and Vraylar sales climbed 35%. Regulators last year OKed Vraylar for use as an additional treatment for major depressive disorder, and since, AbbVie has seen solid gains in prescription growth. Both neuroscience drugs are blockbusters, generating billion-dollar annual revenue for the company.
Of course, declines in Humira are weighing on AbbVie, but this was expected, and the company prepared by renewing its portfolio. Importantly, the efforts are working. All of this is good news, even if earnings won't take off overnight.
Now let's consider the dividend. AbbVie launched back in 2013 as a spinoff of Abbott Laboratories, and since that time, it's lifted its quarterly dividend by 285%.
In the most recent quarter, it increased its payment by nearly 5% and emphasized its commitment to growing the dividend, modestly during times when earnings aren't growing, then more aggressively when earnings pick up. Over time, "we want to deliver a healthy, sustainable, growing dividend," chief operating officer Rob Michael said during the earnings call.
Is the stock a buy?
Let's get back to our question: Should you still buy this dividend stock? My answer is a big yes. AbbVie has the product portfolio necessary to spur another era of earnings growth, and we know this because these products are already starting to deliver on their promises. At the same time, the company is growing its dividend at a reasonable pace and making rewards to shareholders a priority.
Humira sales, as expected, are declining, but they aren't disastrous either. So, we can expect this blockbuster to continue offering some support to the top line.
Today, trading at about 12 times forward earnings estimates, AbbVie looks like a bargain, considering its management of the Humira situation, progress on newer drugs, and commitment to dividend growth. And that's why this pharmaceutical stock makes an excelling long-term buy right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the past couple of years, investors looked ahead to one particular thing with dread: AbbVie's (NYSE: ABBV) blockbuster immunology drug facing competition. Today, trading at about 12 times forward earnings estimates, AbbVie looks like a bargain, considering its management of the Humira situation, progress on newer drugs, and commitment to dividend growth. After all, at its peak, Humira brought in almost $21 billion in annual sales, and the treatment helped AbbVie grow revenue and deliver dividend growth over time. | After all, at its peak, Humira brought in almost $21 billion in annual sales, and the treatment helped AbbVie grow revenue and deliver dividend growth over time. Treating bipolar disorder and migraine Meanwhile, AbbVie's neuroscience drugs, Vraylar for bipolar disorder and Botox treatment for migraine, also are proving to be significant growth drivers -- and AbbVie expects this to continue. For the past couple of years, investors looked ahead to one particular thing with dread: AbbVie's (NYSE: ABBV) blockbuster immunology drug facing competition. | After all, at its peak, Humira brought in almost $21 billion in annual sales, and the treatment helped AbbVie grow revenue and deliver dividend growth over time. Treating bipolar disorder and migraine Meanwhile, AbbVie's neuroscience drugs, Vraylar for bipolar disorder and Botox treatment for migraine, also are proving to be significant growth drivers -- and AbbVie expects this to continue. Today, trading at about 12 times forward earnings estimates, AbbVie looks like a bargain, considering its management of the Humira situation, progress on newer drugs, and commitment to dividend growth. | After all, at its peak, Humira brought in almost $21 billion in annual sales, and the treatment helped AbbVie grow revenue and deliver dividend growth over time. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! For the past couple of years, investors looked ahead to one particular thing with dread: AbbVie's (NYSE: ABBV) blockbuster immunology drug facing competition. |
22054.0 | 2023-11-10 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-20 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22055.0 | 2023-11-10 00:00:00 UTC | Ironwood's (IRWD) Q3 Earnings Miss Mark, Linzess Volume Rises | ABBV | https://www.nasdaq.com/articles/ironwoods-irwd-q3-earnings-miss-mark-linzess-volume-rises | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported adjusted earnings of 12 cents per share for third-quarter 2023, missing the Zacks Consensus Estimate of 17 cents. The company had reported adjusted earnings of 28 cents per share in the year-ago quarter.
Total revenues in the reported quarter were $113.7 million, beating the Zacks Consensus Estimate of $113 million. The top line also increased almost 4.6% year over year.
Quarter in Detail
As reported by partner AbbVie Inc. ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $279 million in the United States, up 7% year over year, driven by prescription growth. Total prescription and new prescription demand for Linzess increased 8% and 16%, respectively, year over year.
Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. IRWD’s share of net profit from the sales of Linzess in the United States (included in collaborative revenues) totaled $110.1 million, increasing 5% year over year.
Linzess’ collaborative revenues from U.S. sales marginally missed our model estimate of $110.3 million.
Shares of Ironwood have lost 23.2% so far this year compared with the industry’s decline of 14.2%.
Image Source: Zacks Investment Research
We note that in June 2023, ABBV received FDA approval for Linzess label expansion for treating functional constipation in pediatric patients aged 6-17 years. Following this nod, Linzess became the first and only FDA-approved prescription therapy for functional constipation in pediatric patients.
Ironwood has agreements with two partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively.
Both Astellas and AstraZeneca have exclusive rights to develop and market the drug in their respective territories. Astellas and AZN are liable to pay royalties to Ironwood on net Linzess revenues earned in their regions.
Ironwood recorded $3.6 million in royalties and other revenues, up almost 5.9% from the prior-year quarter’s figure.
As of Sep 30, 2023, Ironwood had cash and cash equivalents worth $110.2 million compared with $175.3 million as of Jun 30, 2023.
2023 Guidance
Ironwood maintained its guidance for 2023 provided earlier this year.
The company continues to expect total revenues in the range of $435-$450 million. It also anticipates U.S. sales of Linzess to grow in the band of 6-8%, unchanged from the previous expectation.
The company also expects adjusted EBITDA of approximately ($900 million) for the year. The figure includes a one-time charge of approximately $1.1 billion from the VectivBio acquisition.
Ironwood completed the buyout of Switzerland-based biotech company VectivBio in June for approximately $1.1 billion. VectivBio focuses on the development of treatments for severe and rare gastrointestinal conditions.
With the acquisition of VectivBio, Ironwood acquired rights to develop and commercialize apraglutide. The candidate is being evaluated in the phase III STARS study for treating short-bowel syndrome patients with intestinal failure. Top-line data from the same is expected in March 2024.
Apraglutide is also being evaluated in a phase II proof-of-concept study – STARGAZE – for patients with steroid-refractory gastrointestinal acute Graft versus Host Disease. Data from the study is anticipated by the first quarter of 2024.
This apart, Ironwood is developing two other pipeline candidates, IW-3300 and CNP-104.
A phase II proof-of-concept study is evaluating IW-3300 for the potential treatment of visceral pain conditions, such as interstitial cystitis/bladder pain syndrome and endometriosis.
Meanwhile, Ironwood, in collaboration with COUR Pharmaceuticals, is developing CNP-104 for treating primary biliary cholangitis (PBC). A clinical study is being conducted by COUR Pharmaceuticals to evaluate the safety, tolerability, pharmacodynamic effects and efficacy of CNP-104 in PBC patients. Top-line data from the same is expected in the third quarter of 2024.
Ironwood Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Ironwood Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank & Stock to Consider
Ironwood currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the same sector is MEI Pharma, Inc. MEIP, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for MEI Pharma’s 2023 loss per share have improved from $6.54 to $4.89. During the same period, loss per share estimates for 2024 have narrowed from $5.14 to $4.02. Year to date, shares of MEIP have rallied 44.9%.
Earnings of MEI Pharma beat estimates in three of the trailing four quarters and met the same on the other occasion. On average, MEIP came up with a four-quarter earnings surprise of 53.58%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research We note that in June 2023, ABBV received FDA approval for Linzess label expansion for treating functional constipation in pediatric patients aged 6-17 years. Quarter in Detail As reported by partner AbbVie Inc. ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $279 million in the United States, up 7% year over year, driven by prescription growth. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report MEI Pharma, Inc. (MEIP) : Free Stock Analysis Report To read this article on Zacks.com click here. Quarter in Detail As reported by partner AbbVie Inc. ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $279 million in the United States, up 7% year over year, driven by prescription growth. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. | Quarter in Detail As reported by partner AbbVie Inc. ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $279 million in the United States, up 7% year over year, driven by prescription growth. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report MEI Pharma, Inc. (MEIP) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. | Quarter in Detail As reported by partner AbbVie Inc. ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $279 million in the United States, up 7% year over year, driven by prescription growth. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. Image Source: Zacks Investment Research We note that in June 2023, ABBV received FDA approval for Linzess label expansion for treating functional constipation in pediatric patients aged 6-17 years. |
22056.0 | 2023-11-10 00:00:00 UTC | Top Research Reports for NVIDIA, Chevron & AbbVie | ABBV | https://www.nasdaq.com/articles/top-research-reports-for-nvidia-chevron-abbvie | nan | nan | Friday, November 10, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
NVIDIA shares have literally been on fire, outperforming the chips space (up +228% vs. +124.9% for the Zacks Semiconductor industry) and the broader market (+228% vs. +14.3% for the S&P 500 index) in the year-to-date period. The company is gaining from strong growth of artificial intelligence (AI), high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds.
Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space. However, NVDA’s near-term prospects likely to hurt by weakening demand for chips used in the professional visualization end market.
(You can read the full research report on NVIDIA here >>>)
Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past six months (-7.4% vs. -0.6%). The company is grappled with the 2020 commodity price crash, leading to substantial spending cuts. Concerns include high sensitivity to oil prices and a 10-year reserve replacement ratio of 100%, indicating challenges in replenishing produced energy.
Considering all these factors, investors are advised to wait for a better entry point. Despite this, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana.
(You can read the full research report on Chevron here >>>)
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). The company is facing concerns about long-term sales growth since Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales.
Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. Estimate movements have been mixed ahead of Q3 results. ABBV reported impressive earnings surprise in recent quarters.
Also, AbbVie has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Alibaba Group Holding Limited (BABA), Comcast Corporation (CMCSA) and Morgan Stanley (MS).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Chevron (CVX) Gets Guyana Assets with Hess Buy
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Featured Reports
Alibaba (BABA) Benefits From Strength in Retail Business
Per the Zacks analyst, growing China and International Commerce businesses are benefiting Alibaba's retail business.
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Per the Zacks Analyst, Comcast benefits from an expanding high speed internet subscriber base as well as strong adoption of Xfinity, Flex and Peacock.
Buyouts Support Morgan Stanley (MS), Capital Markets A Woe
Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Yet, capital markets ambiguity and rising costs are woes.
Cadence (CDNS) to Benefit From Strong Portfolio & Buyouts
Per the Zacks analyst, Cadence's performance is being driven by demand for the company's diversified product portfolio. New products and synergies from buyouts are expected to sustain growth momentum.
Investments, Expanding Customer Base Aid Atmos Energy (ATO)
Per the Zacks analyst, Atmos Energy's investment plan will help to increase the safety and reliability of its natural gas pipelines. Increasing customer count will boost demand for its services.
eSignature Strength Boosts DocuSign (DOCU) Despite Expenses
The Zacks analyst is positive about DocuSign's top line as it is significantly benefiting from continued customer demand for eSignature. However, escalating expenses are a headwind.
Penumbra (PEN) Rides on Solid Vascular Sales, Global Growth
Penumbra's Vascular growth globally is a major positive. Per the Zacks analyst, differentiated technologies of Lightning Flash and Lightning Bolt 7 leading to strong patient outcomes is a key driver.
New Upgrades
Robust Live Events Demand Aid Live Nation Entertainment (LYV)
Per the Zacks analyst, Live Nation Entertainment is benefiting from pent-up demand for live events and robust ticket sales. Also, strong sponsorship and advertising business bodes well.
MGIC Investment (MTG) Set to Grow on New Insurance Written
Per the Zacks analyst, MGIC Investment is set to grow on new insurance written aided by the increase in the mortgage origination market and higher refinance activity.
Veradigm (MDRX) Continues to Gain From Recent Alliances
The Zacks analyst is upbeat about Veradigm's alliances over the past few months despite its operation in a highly competitive space.
New Downgrades
Sanofi (SNY) Profits to Fall in 2024 on Higher R&D, Taxes
The Zacks analyst believes Sanofi's profit outlook for 2024 was disappointing. Sanofi expects adjusted earnings to decline in the low-single-digit range in 2024 due to higher R&D costs and taxes.
Weakness in Energy Systems Segment to Hurt EnerSys (ENS)
Per the Zacks analyst, EnerSys is experiencing weakness across its Energy Systems segment due to decrease in capital spending of the telecommunication and broadband customers.
Tyson Foods (TSN) Remains Troubled by Increasing Costs
Per the Zacks analyst, Tyson Foods is seeing high input costs. The company's fiscal third-quarter gross profit margin contracted 670 basis points on elevated input cost inflation among other reasons.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Morgan Stanley (MS) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Chevron (CVX) Gets Guyana Assets with Hess Buy AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Featured Reports Alibaba (BABA) Benefits From Strength in Retail Business Per the Zacks analyst, growing China and International Commerce businesses are benefiting Alibaba's retail business. Click to get this free report Morgan Stanley (MS) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). | Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Chevron (CVX) Gets Guyana Assets with Hess Buy AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Featured Reports Alibaba (BABA) Benefits From Strength in Retail Business Per the Zacks analyst, growing China and International Commerce businesses are benefiting Alibaba's retail business. Click to get this free report Morgan Stanley (MS) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Chevron (CVX) Gets Guyana Assets with Hess Buy AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Featured Reports Alibaba (BABA) Benefits From Strength in Retail Business Per the Zacks analyst, growing China and International Commerce businesses are benefiting Alibaba's retail business. |
22057.0 | 2023-11-09 00:00:00 UTC | Deutsche Bank Initiates Coverage of Abbvie (ABBV) with Hold Recommendation | ABBV | https://www.nasdaq.com/articles/deutsche-bank-initiates-coverage-of-abbvie-abbv-with-hold-recommendation | nan | nan | Fintel reports that on November 9, 2023, Deutsche Bank initiated coverage of Abbvie (NYSE:ABBV) with a Hold recommendation.
Analyst Price Forecast Suggests 22.48% Upside
As of October 31, 2023, the average one-year price target for Abbvie is 173.95. The forecasts range from a low of 136.35 to a high of $215.25. The average price target represents an increase of 22.48% from its latest reported closing price of 142.03.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, an increase of 0.17%. The projected annual non-GAAP EPS is 11.88.
Abbvie Declares $1.48 Dividend
On September 8, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of October 13, 2023 will receive the payment on November 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $142.03 / share, the stock's dividend yield is 4.17%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=236).
The current dividend yield is 0.74 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.68. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.19%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4416 funds or institutions reporting positions in Abbvie. This is a decrease of 19 owner(s) or 0.43% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.74%, a decrease of 8.43%. Total shares owned by institutions decreased in the last three months by 0.75% to 1,396,310K shares.
The put/call ratio of ABBV is 0.67, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 56,773K shares representing 3.22% ownership of the company. In it's prior filing, the firm reported owning 57,899K shares, representing a decrease of 1.98%. The firm decreased its portfolio allocation in ABBV by 26.06% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 55,028K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 54,775K shares, representing an increase of 0.46%. The firm decreased its portfolio allocation in ABBV by 21.64% over the last quarter.
Capital International Investors holds 43,153K shares representing 2.44% ownership of the company. In it's prior filing, the firm reported owning 42,748K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in ABBV by 19.96% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 42,007K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 41,266K shares, representing an increase of 1.76%. The firm decreased its portfolio allocation in ABBV by 22.06% over the last quarter.
Geode Capital Management holds 34,953K shares representing 1.98% ownership of the company. In it's prior filing, the firm reported owning 34,045K shares, representing an increase of 2.60%. The firm decreased its portfolio allocation in ABBV by 21.49% over the last quarter.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Fintel reports that on November 9, 2023, Deutsche Bank initiated coverage of Abbvie (NYSE:ABBV) with a Hold recommendation. Analyst Price Forecast Suggests 22.48% Upside As of October 31, 2023, the average one-year price target for Abbvie is 173.95. | Fintel reports that on November 9, 2023, Deutsche Bank initiated coverage of Abbvie (NYSE:ABBV) with a Hold recommendation. Analyst Price Forecast Suggests 22.48% Upside As of October 31, 2023, the average one-year price target for Abbvie is 173.95. The projected annual revenue for Abbvie is 55,229MM, an increase of 0.17%. | Abbvie Declares $1.48 Dividend On September 8, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Fintel reports that on November 9, 2023, Deutsche Bank initiated coverage of Abbvie (NYSE:ABBV) with a Hold recommendation. Analyst Price Forecast Suggests 22.48% Upside As of October 31, 2023, the average one-year price target for Abbvie is 173.95. | Fintel reports that on November 9, 2023, Deutsche Bank initiated coverage of Abbvie (NYSE:ABBV) with a Hold recommendation. Analyst Price Forecast Suggests 22.48% Upside As of October 31, 2023, the average one-year price target for Abbvie is 173.95. The projected annual revenue for Abbvie is 55,229MM, an increase of 0.17%. |
22058.0 | 2023-11-08 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-8 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22059.0 | 2023-11-07 00:00:00 UTC | EXCLUSIVE-Activist investor Elliott targets drugmaker BioMarin -sources | ABBV | https://www.nasdaq.com/articles/exclusive-activist-investor-elliott-targets-drugmaker-biomarin-sources-0 | nan | nan | By Svea Herbst-Bayliss
NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter.
The hedge fund, which oversees some $60 billion in assets, has spent over $1 billion on the stake in BioMarin, which focuses on rare genetic disorders and is valued at about $16 billion, the sources said.
The nature of the conversations between San Rafael, California-based BioMarin and Elliott, which is headquartered in West Palm Beach, Florida, and any demands the hedge fund may have made could not be learned.
Elliott declined to comment, while a representative for BioMarin did not immediately respond to a request for comment.
BioMarin shares rose 12% to $85.36 on the news in morning trading in New York on Tuesday.
BioMarin is trying to find its footing amid a change in chief executives and slow progress in the launch of its drug Roctavian to treat hemophilia.
After the company last week lowered its 2023 guidance for Roctavian, some analysts cut sales forecasts for the coming years, even though they still see the drug hitting blockbuster status of $1 billion annually in the long run.
Prior to news of Elliott's engagement, BioMarin shares were down 24% year-to-date, significantly underperforming the iShares Biotechnology ETF IBB.O, which is down 8.6%.
The poor share price performance has led some analysts to speculate about whether the company could become a takeover target.
Analysts noted that BioMarin's hard to manufacture therapies and that its entire portfolio is excluded from Medicare prescription drug price renegotiations could appeal to buyers.
BioMarin said last week that Jean-Jacques Bienaime, 70, who has led the company since 2005, will be replaced by veteran healthcare and biotechnology executive Alexander Hardy, currently CEO of Genentech, on Dec. 1.
"A new albeit very experienced CEO gets put in place who may explore BioMarin's strategic value more aggressively," Jefferies analysts wrote on Nov. 1.
Bienaime will keep his board seat until next year's annual meeting and remain an adviser to the company through the end of 2024. Harvey will join the board and Richard Meier, who has served as lead independent director since 2015, will become chairman, replacing Bienaime.
Elliott has previously targeted other healthcare companies including Catalent CTLT.N, where it settled for board seats in August, and Syneos, participating in a consortium that took the company private this year.
Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold.
(Reporting by Svea Herbst-Bayliss; Editing by Jamie Freed)
((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. By Svea Herbst-Bayliss NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter. The nature of the conversations between San Rafael, California-based BioMarin and Elliott, which is headquartered in West Palm Beach, Florida, and any demands the hedge fund may have made could not be learned. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. By Svea Herbst-Bayliss NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter. Prior to news of Elliott's engagement, BioMarin shares were down 24% year-to-date, significantly underperforming the iShares Biotechnology ETF IBB.O, which is down 8.6%. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. By Svea Herbst-Bayliss NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter. BioMarin said last week that Jean-Jacques Bienaime, 70, who has led the company since 2005, will be replaced by veteran healthcare and biotechnology executive Alexander Hardy, currently CEO of Genentech, on Dec. 1. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. After the company last week lowered its 2023 guidance for Roctavian, some analysts cut sales forecasts for the coming years, even though they still see the drug hitting blockbuster status of $1 billion annually in the long run. The poor share price performance has led some analysts to speculate about whether the company could become a takeover target. |
22060.0 | 2023-11-07 00:00:00 UTC | EXCLUSIVE-Activist investor Elliott targets drugmaker BioMarin -sources | ABBV | https://www.nasdaq.com/articles/exclusive-activist-investor-elliott-targets-drugmaker-biomarin-sources | nan | nan | By Svea Herbst-Bayliss
NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter.
The hedge fund, which oversees some $60 billion in assets, has spent over $1 billion on the stake in BioMarin, which focuses on rare genetic disorders and is valued at $14.6 billion, the sources said.
The nature of the conversations between San Rafael, California-based BioMarin and Elliott, which is headquartered in West Palm Beach, Florida, and any demands the hedge fund may have made could not be learned.
Elliott declined to comment, while a representative for BioMarin did not immediately respond to a request for comment.
BioMarin is trying to find its footing amid a change in chief executives and slow progress in the launch of its drug Roctavian to treat hemophilia.
After the company last week lowered its 2023 guidance for Roctavian, some analysts cut sales forecasts for the coming years, even though they still see the drug hitting blockbuster status of $1 billion annually in the long run.
BioMarin shares are down 24% year-to-date, significantly underperforming the iShares Biotechnology ETF IBB.O, which is down 8.6%.
The share price fall has led some analysts to speculate about whether the company could become a takeover target.
Analysts noted that BioMarin's hard to manufacture therapies and that its entire portfolio is excluded from Medicare prescription drug price renegotiations could appeal to buyers.
BioMarin said last week that Jean-Jacques Bienaime, 70, who has led the company since 2005, will be replaced by veteran healthcare and biotechnology executive Alexander Hardy, currently CEO of Genentech, on Dec. 1.
"A new albeit very experienced CEO gets put in place who may explore BioMarin's strategic value more aggressively," Jefferies analysts wrote on Nov. 1.
Bienaime will keep his board seat until next year's annual meeting and remain an adviser to the company through the end of 2024. Harvey will join the board and Richard Meier, who has served as lead independent director since 2015, will become chairman, replacing Bienaime.
Elliott has previously targeted other healthcare companies including Catalent CTLT.N, where it settled for board seats in August, and Syneos, participating in a consortium that took the company private this year.
Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold.
(Reporting by Svea Herbst-Bayliss; Editing by Jamie Freed)
((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. By Svea Herbst-Bayliss NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter. The nature of the conversations between San Rafael, California-based BioMarin and Elliott, which is headquartered in West Palm Beach, Florida, and any demands the hedge fund may have made could not be learned. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. The share price fall has led some analysts to speculate about whether the company could become a takeover target. BioMarin said last week that Jean-Jacques Bienaime, 70, who has led the company since 2005, will be replaced by veteran healthcare and biotechnology executive Alexander Hardy, currently CEO of Genentech, on Dec. 1. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. By Svea Herbst-Bayliss NEW YORK, Nov 7 (Reuters) - Activist investor Elliott Investment Management has built a stake in BioMarin Pharmaceutical BMRN.O and has been in discussions with the biotechnology company for months about its future, according to two people familiar with the matter. BioMarin said last week that Jean-Jacques Bienaime, 70, who has led the company since 2005, will be replaced by veteran healthcare and biotechnology executive Alexander Hardy, currently CEO of Genentech, on Dec. 1. | Elliott also successfully pushed for drug makers Alexion Pharma AZN.L and Allergan ABBV.N to be sold. After the company last week lowered its 2023 guidance for Roctavian, some analysts cut sales forecasts for the coming years, even though they still see the drug hitting blockbuster status of $1 billion annually in the long run. The share price fall has led some analysts to speculate about whether the company could become a takeover target. |
22061.0 | 2023-11-07 00:00:00 UTC | 3 Dividend Stocks That Are Perfect for Beginning Investors | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-are-perfect-for-beginning-investors | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While the meme trade phenomenon helped spark interest in the equities sector, passive-income providers generally offer a more solid foundation, thus warranting a closer look at dividend stocks for beginners. To be sure, these aren’t the sexiest ideas. But they should steer you in the right direction for the long haul.
Primarily, dividend stocks for beginners allow investors to build their wealth through two mechanisms: capital gains and dividend payouts. Combined, the total return – again over the course of several years – should keep your portfolio in the black. As well, these relatively safe and predictable ideas represent confidence boosters.
Second, we may be entering into an uncertain economic environment. From high inflation to escalating global conflicts, no shortage of risk factors exists. That doesn’t necessarily mean that the market will collapse tomorrow. However, companies that pay dividends tend to be more established and stable than their growth-oriented peers.
If the smelly stuff hits the fan, you may be comforted with these proven enterprises. On that note, below are dividend stocks for beginners.
Sempra (SRE)
Source: Michael Vi / Shutterstock.com
At first glance, Sempra (NYSE:SRE) might not seem an ideal play for dividend stocks for beginners. Looking at the company’s financials, the utility firm’s cash-to-debt ratio sits at 0.04x. That’s worse than about 84% of sector rivals. As well, its Altman Z-Score of 1.07 indicates possible distress. If we were talking about any other enterprise, I might be tempted to say, move along.
However, Sempra being a utility firm in high-profile markets of Southern California affords it permanent relevance. Fundamentally, it benefits from a natural monopoly. That’s just a fancy phrase to mean that the barriers to entry are high. Even if a company wanted to compete with Sempra, it would have to go through myriad procedures and regulations. As a result, SRE prints consistent profitability.
And that obviously segues into the passive income part. Currently, Sempra offers a forward yield of 3.29%. As well, the payout ratio comes in at a reasonable 49.75%, facilitating confidence regarding yield sustainability. Lastly, analysts rate SRE a consensus moderate buy with an $80.56 average price target.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Headquartered in North Chicago, Illinois, AbbVie (NYSE:ABBV) is one of the biggest pharmaceutical firms in the world. Per its public profile, the company’s primary product is Humira, which regulators have approved for treating various autoimmune diseases. These include rheumatoid arthritis, Crohn’s disease, plaque psoriasis, and ulcerative colitis. However, investors may soon appreciate AbbVie for its Allergan buyout.
With the acquisition, the company now controls Botox, a highly potent neurotoxic protein. Through injections, patients use Botox to smooth wrinkles, thus facilitating a younger look. Fundamentally, that’s going to be important because of the generational shift for younger millennials and Generation Z. While looks have always been important, it’s even more so for these age cohorts.
Admittedly, it’s a cynical argument but that also makes ABBV one of the dividend stocks for beginners. Currently, the company carries a forward yield of 4.39%, well above the healthcare sector’s average yield of 1.58%. Moreover, analysts rate ABBV a moderate buy with a $169.67 price target, implying double-digit growth.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
As an integrated hydrocarbon energy giant, Chevron (NYSE:CVX) might appear to be facing a losing battle against relevance. With political and ideological forces gravitating toward clean and renewable energy sources, CVX doesn’t initially seem a viable long-term bet. And to be fair, its market performance isn’t exactly encouraging. Since the January opener, CVX lost almost 16% of equity value.
However, broader economic factors suggest that Chevron may have a longer-than-expected shelf life. For example, while governments have practically shoved electric vehicles down our throats, it just hasn’t clicked smoothly. EV demand has plummeted this year, taking down operators within the industry’s value chain. Put another way, people are still driving combustion-powered cars and that might not change for quite some time.
Combine this dynamic with population growth and suddenly, the world needs more energy resources, not fewer. Fundamentally, then, I’m inclined to trust Chevron’s forward yield of 4.11%. Additionally, its payout ratio of 40.52% is very reasonable, facilitating confidence in the passive income.
Finally, analysts rate CVX a moderate buy with a $183.33 target, projecting almost 25% upside.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Headquartered in North Chicago, Illinois, AbbVie (NYSE:ABBV) is one of the biggest pharmaceutical firms in the world. However, investors may soon appreciate AbbVie for its Allergan buyout. Admittedly, it’s a cynical argument but that also makes ABBV one of the dividend stocks for beginners. | Moreover, analysts rate ABBV a moderate buy with a $169.67 price target, implying double-digit growth. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Headquartered in North Chicago, Illinois, AbbVie (NYSE:ABBV) is one of the biggest pharmaceutical firms in the world. However, investors may soon appreciate AbbVie for its Allergan buyout. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Headquartered in North Chicago, Illinois, AbbVie (NYSE:ABBV) is one of the biggest pharmaceutical firms in the world. However, investors may soon appreciate AbbVie for its Allergan buyout. Admittedly, it’s a cynical argument but that also makes ABBV one of the dividend stocks for beginners. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Headquartered in North Chicago, Illinois, AbbVie (NYSE:ABBV) is one of the biggest pharmaceutical firms in the world. However, investors may soon appreciate AbbVie for its Allergan buyout. Admittedly, it’s a cynical argument but that also makes ABBV one of the dividend stocks for beginners. |
22062.0 | 2023-11-06 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-19 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: FAIL
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22063.0 | 2023-11-06 00:00:00 UTC | Is SPDR S&P Dividend ETF (SDY) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-spdr-sp-dividend-etf-sdy-a-strong-etf-right-now-10 | nan | nan | Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the SPDR S&P Dividend ETF (SDY) is a smart beta exchange traded fund launched on 11/08/2005.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. SDY has been able to amass assets over $19.55 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the S&P High Yield Dividend Aristocrats Index.
The S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for SDY, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.78%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 22.20% of the portfolio, the fund has heaviest allocation to the Industrials sector; Consumer Staples and Financials round out the top three.
Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV).
SDY's top 10 holdings account for about 22.01% of its total assets under management.
Performance and Risk
The ETF has lost about -5.75% so far this year and is down about -1.07% in the last one year (as of 11/06/2023). In the past 52-week period, it has traded between $110.20 and $132.18.
SDY has a beta of 0.87 and standard deviation of 16.09% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 124 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $47.79 billion in assets, Vanguard Value ETF has $97.84 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P Dividend ETF (SDY): ETF Research Reports
International Business Machines Corporation (IBM) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the SPDR S&P Dividend ETF (SDY) is a smart beta exchange traded fund launched on 11/08/2005. | Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Sector Exposure and Top Holdings ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. | Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. | Looking at individual holdings, 3m Co W/d (MMM) accounts for about 2.83% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the SPDR S&P Dividend ETF (SDY) is a smart beta exchange traded fund launched on 11/08/2005. |
22064.0 | 2023-11-06 00:00:00 UTC | Noteworthy ETF Inflows: VONG, ABBV, PEP, CRM | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-vong-abbv-pep-crm | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $595.0 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 197,131,844 to 205,581,844). Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, PepsiCo Inc (Symbol: PEP) is up about 0.1%, and Salesforce Inc (Symbol: CRM) is lower by about 0.8%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average:
Looking at the chart above, VONG's low point in its 52 week range is $53.82 per share, with $73.80 as the 52 week high point — that compares with a last trade of $70.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Institutional Holders of MGV
GNTX Average Annual Return
CHNG YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, PepsiCo Inc (Symbol: PEP) is up about 0.1%, and Salesforce Inc (Symbol: CRM) is lower by about 0.8%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, PepsiCo Inc (Symbol: PEP) is up about 0.1%, and Salesforce Inc (Symbol: CRM) is lower by about 0.8%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $53.82 per share, with $73.80 as the 52 week high point — that compares with a last trade of $70.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, PepsiCo Inc (Symbol: PEP) is up about 0.1%, and Salesforce Inc (Symbol: CRM) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $595.0 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 197,131,844 to 205,581,844). For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $53.82 per share, with $73.80 as the 52 week high point — that compares with a last trade of $70.67. | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, PepsiCo Inc (Symbol: PEP) is up about 0.1%, and Salesforce Inc (Symbol: CRM) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $595.0 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 197,131,844 to 205,581,844). For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $53.82 per share, with $73.80 as the 52 week high point — that compares with a last trade of $70.67. |
22065.0 | 2023-11-05 00:00:00 UTC | 3 Spectacular High-Yield Dividend Stocks to Buy in November | ABBV | https://www.nasdaq.com/articles/3-spectacular-high-yield-dividend-stocks-to-buy-in-november | nan | nan | Not all dividend stocks are in the same league. Some offer puny yields. Others, though, provide exceptionally high ones plus solid long-term growth prospects.
Three Motley Fool contributors think they've identified stocks that belong squarely in the latter group. Here's why they view drugmakers AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Pfizer (NYSE: PFE) as spectacular high-yield dividend stocks to buy in November.
Raring for a rebound
Keith Speights (AbbVie): You might wonder whether "spectacular" is an adjective that should be used with AbbVie after a brief glance at its third-quarter results. The big drugmaker's revenue fell 6% year over year to $13.9 billion. Its adjusted earnings per share sank 19.4% to $2.95. Overall, 2023 hasn't been a great year for the company with its share price down more than 10%.
I think, though, that AbbVie is raring for a rebound. Yes, the company's top-selling drug, Humira, continues to hemorrhage sales as it faces competition from biosimilars. However, sales for AbbVie's other drugs are growing faster than expected. CEO Rick Gonzalez even noted in the company's Q3earnings callthat the double-digit revenue growth for AbbVie's products, excluding Humira, represented "a considerable acceleration from the first half of the year."
Two products in AbbVie's lineup especially stand out. Sales for Rinvoq and Skyrizi soared more than 50% year over year in the third quarter. AbbVie projects that combined sales for the two drugs will eventually surpass Humira's peak annual sales. The company is also seeing strong sales momentum for its migraine therapies Ubrelvy and Qulipta and antipsychotic medication Vraylar.
Gonzalez predicted that AbbVie will "return to rapid growth in 2025." That might seem like a long way away. It's important to remember, though, that investors tend to be forward-looking. I expect AbbVie's share price will mount a comeback well before its overall sales begin to pick up momentum.
In the meantime, the stock is an income investor's dream. AbbVie's dividend yield stands at nearly 4.4%. The company is a Dividend King, recently announcing its 52nd consecutive year of dividend increases, including its time as part of Abbott Laboratories. Since spinning off from Abbott in 2013, AbbVie has boosted its dividend payout by more than 285%.
The new look won't change old habits
Prosper Junior Bakiny (Novartis): Novartis recently completed a business move that is increasingly becoming popular among pharmaceutical giants. The company spun off its generic and biosimilar unit, Sandoz, into a stand-alone entity. The transaction should allow Novartis to deliver stronger revenue growth while focusing on its core pharmaceutical business, which is already pretty impressive.
Novartis boasts a long lineup of products across several therapeutic areas, including oncology, immunology, neuroscience, cardiovascular, and more. The pipeline is equally impressive; the company has over 100 programs in the works. Consistent revenue, earnings, and cash flow -- that's what Novartis can deliver, and it is precisely what dividend investors are looking for now.
Only a stable corporation that routinely produces solid financial results has what it takes to maintain -- or even raise -- its dividend payouts year in and year out. Novartis has been doing that for a long time, and the recent business separation with Sandoz won't change a thing. The drugmaker is currently on its 26th consecutive year of dividend increases.
Novartis' yield is also impressive at 3.74% -- the average for the S&P 500 is less than half that at 1.62%. Further, the company's dividend payout ratio is at about 55%, a number that leaves enough room for more dividend hikes. A high yield isn't everything, but investors looking for one can certainly find what they are searching for in Novartis -- and then some.
The drugmaker's solid dividend profile and robust underlying business make it an excellent pick for income-seeking investors.
A beaten-down stock, but don't count it out
David Jagielski (Pfizer): Investors can score a great dividend with Pfizer. Although its operations are slowing down due to a decline in demand for its COVID-19 vaccine and pill, it can still make for a potentially great income investment. With the stock down more than 40% this year, investors appear overly concerned about the company's growth prospects. But with the decline, the stock is now yielding 5.4%, a much higher yield than usual for the healthcare stock.
The company released its latest earnings numbers on Oct. 31. For the most recent period, which ended in September, Pfizer's sales fell by 42% year over year to $13.2 billion. However, the company notes that its non-COVID products generated positive operational growth of 10%. Pfizer, unfortunately, had more bad news as it also wrote down inventory and incurred one-time charges related to its COVID-19 vaccine and pill, which led to the company incurring a loss per share of $0.42 for the period.
But in the long run, this can be a solid dividend stock to own. Last month, the company declared its 340th consecutive quarterly dividend, which equates to 85 years' worth of consistent dividend income for investors.
COVID may not be a big part of Pfizer's long-term growth picture, but the company is planning on building out its business beyond that by developing more drugs and pursuing acquisitions. Its pending deal with cancer therapy maker Seagen is part of a larger strategy that involves Pfizer adding $25 billion to its top line by the end of the decade.
Although investors are down on the stock this year, in the long run I think Pfizer will prove to be a spectacular investment to hold in your portfolio.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories, Pfizer, and Seagen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | CEO Rick Gonzalez even noted in the company's Q3earnings callthat the double-digit revenue growth for AbbVie's products, excluding Humira, represented "a considerable acceleration from the first half of the year." Here's why they view drugmakers AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Pfizer (NYSE: PFE) as spectacular high-yield dividend stocks to buy in November. Raring for a rebound Keith Speights (AbbVie): You might wonder whether "spectacular" is an adjective that should be used with AbbVie after a brief glance at its third-quarter results. | Here's why they view drugmakers AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Pfizer (NYSE: PFE) as spectacular high-yield dividend stocks to buy in November. Raring for a rebound Keith Speights (AbbVie): You might wonder whether "spectacular" is an adjective that should be used with AbbVie after a brief glance at its third-quarter results. I think, though, that AbbVie is raring for a rebound. | Here's why they view drugmakers AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Pfizer (NYSE: PFE) as spectacular high-yield dividend stocks to buy in November. Raring for a rebound Keith Speights (AbbVie): You might wonder whether "spectacular" is an adjective that should be used with AbbVie after a brief glance at its third-quarter results. I think, though, that AbbVie is raring for a rebound. | AbbVie's dividend yield stands at nearly 4.4%. Here's why they view drugmakers AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Pfizer (NYSE: PFE) as spectacular high-yield dividend stocks to buy in November. Raring for a rebound Keith Speights (AbbVie): You might wonder whether "spectacular" is an adjective that should be used with AbbVie after a brief glance at its third-quarter results. |
22066.0 | 2023-11-04 00:00:00 UTC | ABBV Quantitative Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-quantitative-stock-analysis-7 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: FAIL
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22067.0 | 2023-11-03 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-126 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
AbbVie Inc (Symbol: ABBV) $143.26 $173.27 20.95%
RLI Corp (Symbol: RLI) $134.35 $158.75 18.16%
Sherwin-Williams Co (Symbol: SHW) $245.32 $289.56 18.03%
NIKE Inc (Symbol: NKE) $105.08 $123.65 17.67%
Automatic Data Processing Inc. (Symbol: ADP) $218.56 $250.57 14.65%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
AbbVie Inc (Symbol: ABBV) 4.33% 20.95% 25.28%
RLI Corp (Symbol: RLI) 0.80% 18.16% 18.96%
Sherwin-Williams Co (Symbol: SHW) 0.99% 18.03% 19.02%
NIKE Inc (Symbol: NKE) 1.29% 17.67% 18.96%
Automatic Data Processing Inc. (Symbol: ADP) 2.29% 14.65% 16.94%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
AbbVie Inc (Symbol: ABBV) $5.64 $5.92 4.96%
RLI Corp (Symbol: RLI) $3.02 $8.06 166.89%
Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77%
NIKE Inc (Symbol: NKE) $1.22 $1.36 11.48%
Automatic Data Processing Inc. (Symbol: ADP) $4.16 $5 20.19%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc (Symbol: ABBV) $143.26 $173.27 20.95% RLI Corp (Symbol: RLI) $134.35 $158.75 18.16% Sherwin-Williams Co (Symbol: SHW) $245.32 $289.56 18.03% NIKE Inc (Symbol: NKE) $105.08 $123.65 17.67% Automatic Data Processing Inc. (Symbol: ADP) $218.56 $250.57 14.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.33% 20.95% 25.28% RLI Corp (Symbol: RLI) 0.80% 18.16% 18.96% Sherwin-Williams Co (Symbol: SHW) 0.99% 18.03% 19.02% NIKE Inc (Symbol: NKE) 1.29% 17.67% 18.96% Automatic Data Processing Inc. (Symbol: ADP) 2.29% 14.65% 16.94% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.64 $5.92 4.96% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% NIKE Inc (Symbol: NKE) $1.22 $1.36 11.48% Automatic Data Processing Inc. (Symbol: ADP) $4.16 $5 20.19% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $143.26 $173.27 20.95% RLI Corp (Symbol: RLI) $134.35 $158.75 18.16% Sherwin-Williams Co (Symbol: SHW) $245.32 $289.56 18.03% NIKE Inc (Symbol: NKE) $105.08 $123.65 17.67% Automatic Data Processing Inc. (Symbol: ADP) $218.56 $250.57 14.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.33% 20.95% 25.28% RLI Corp (Symbol: RLI) 0.80% 18.16% 18.96% Sherwin-Williams Co (Symbol: SHW) 0.99% 18.03% 19.02% NIKE Inc (Symbol: NKE) 1.29% 17.67% 18.96% Automatic Data Processing Inc. (Symbol: ADP) 2.29% 14.65% 16.94% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.64 $5.92 4.96% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% NIKE Inc (Symbol: NKE) $1.22 $1.36 11.48% Automatic Data Processing Inc. (Symbol: ADP) $4.16 $5 20.19% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $143.26 $173.27 20.95% RLI Corp (Symbol: RLI) $134.35 $158.75 18.16% Sherwin-Williams Co (Symbol: SHW) $245.32 $289.56 18.03% NIKE Inc (Symbol: NKE) $105.08 $123.65 17.67% Automatic Data Processing Inc. (Symbol: ADP) $218.56 $250.57 14.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.33% 20.95% 25.28% RLI Corp (Symbol: RLI) 0.80% 18.16% 18.96% Sherwin-Williams Co (Symbol: SHW) 0.99% 18.03% 19.02% NIKE Inc (Symbol: NKE) 1.29% 17.67% 18.96% Automatic Data Processing Inc. (Symbol: ADP) 2.29% 14.65% 16.94% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.64 $5.92 4.96% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% NIKE Inc (Symbol: NKE) $1.22 $1.36 11.48% Automatic Data Processing Inc. (Symbol: ADP) $4.16 $5 20.19% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $143.26 $173.27 20.95% RLI Corp (Symbol: RLI) $134.35 $158.75 18.16% Sherwin-Williams Co (Symbol: SHW) $245.32 $289.56 18.03% NIKE Inc (Symbol: NKE) $105.08 $123.65 17.67% Automatic Data Processing Inc. (Symbol: ADP) $218.56 $250.57 14.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.33% 20.95% 25.28% RLI Corp (Symbol: RLI) 0.80% 18.16% 18.96% Sherwin-Williams Co (Symbol: SHW) 0.99% 18.03% 19.02% NIKE Inc (Symbol: NKE) 1.29% 17.67% 18.96% Automatic Data Processing Inc. (Symbol: ADP) 2.29% 14.65% 16.94% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.64 $5.92 4.96% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% NIKE Inc (Symbol: NKE) $1.22 $1.36 11.48% Automatic Data Processing Inc. (Symbol: ADP) $4.16 $5 20.19% These five stocks are part of our full Dividend Aristocrats List. |
22068.0 | 2023-11-03 00:00:00 UTC | Is AbbVie Stock a Buy Now? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-a-buy-now-3 | nan | nan | With its diluted earnings per share (EPS) collapsing by nearly 55% in the third quarter to reach $1, it's easy to see why now might not seem like a good time to buy AbbVie (NYSE: ABBV) stock. To make matters worse, its share prices are down by more than 9% this year so far, badly underperforming the market. Despite the bumps in the road, there's reason to believe that this company's fortunes will soon start to look up.
Does this potential for improvement make AbbVie stock a buy right now, given that its turnaround clearly hasn't started yet? Let's dive in and explore why AbbVie is underperforming -- and why that might not matter in the long run.
AbbVie's problems are temporary
The third quarter was a tough three months for AbbVie. Thanks to mild to moderate contractions in its immunology, aesthetics, and oncology segments, its revenue fell by 6%, arriving at $13.9 billion. Global sales of Humira -- its psoriatic arthritis drug, and one of the best-selling medicines of all time -- imploded by 36%, bringing in only $3.5 billion.
As Humira is now over the patent cliff, and generic copies are free to gobble up its market share, the losses are expected, and they're likely to continue until there's nearly nothing left to lose. Management doesn't expect top-line growth to recover from the drug's decline until 2025, when newer medicines (and therefore newer revenue drivers) will be operating in full force to capture the same markets that Humira once led.
Humira's decline isn't the only transient problem. The business also claimed a pre-tax impairment charge of $2.1 billion for its oncology drug Imbruvica. In its rationale for claiming the impairment, management cited the Inflation Reduction Act (IRA), which gives the U.S. government's Centers for Medicare & Medicaid Services (CMS) the ability to negotiate the prices of certain medicines. As CMS will now be free to negotiate and therefore lower the selling price of Imbruvica, AbbVie expects to make less money on it in the future (which is reflected in its finances as the impairment). The chance of more new legislation driving further significant losses is not zero in the long term, but there doesn't appear to be any momentum for anything similar at present.
In fact, management is decidedly bullish on the rest of 2023. It updated and increased its guidance for its adjusted diluted EPS from a low of $10.70 to a minimum of $11.00. It also hiked its dividend by 4.7% annually. That means it's signaling to investors that the worse-than-expected results of the third quarter won't repeat in Q4 and that its finances are still strong enough to make enduring financial commitments to shareholders. Though Humira soon won't have enough market share to account for a meaningful proportion of the top line, those messages from AbbVie's leaders are likely correct.
AbbVie's recovery plan is already in full swing, and it's working
So the basis for AbbVie's poor performance last quarter is rooted in factors that won't be relevant a year from now. In other words, there's no reason to think that there's an enduring set of headwinds that'll hamper shareholder returns. But what's the argument for actually buying the stock?
All of the company's struggling segments are expected by management to return to growth within roughly 18 months. To accomplish that, AbbVie will attempt to commercialize expanded indications for its existing set of medicines, while also advancing new medicines to consideration by regulators. Six regulatory submissions requesting permission for commercialization are planned for 2024 alone. Its neuroscience segment will continue to perform strongly in the meantime, thanks to deepening market penetration with key products like its antipsychotic medicine Vraylar.
For 2025, Wall Street analysts project that AbbVie's EPS will return to growth. This will follow a brief period of stagnation, forecast as early as two years ago based on the lapsing of Humira's manufacturing exclusivity protections. Yet soon enough, that will be in the rearview mirror.
And people who buy the stock now will get the advantage of the market's lukewarm sentiment when things start to pick up down the line. Even if it takes a bit longer than expected, shareholders will still get to collect AbbVie's tasty dividend, which currently yields 4.2%.
Therefore, if you're looking for a relatively safe blue chip stock that's likely to return to steady and slow-to-moderate growth, AbbVie is a solid choice. It's unlikely to crash abruptly or fall victim to an unforeseen earnings rout. At the same time, this stock isn't the right option for investors seeking big and near-term returns -- it's one of the world's biggest pharmaceutical businesses, not a hot software company.
10 stocks we like better than AbbVie
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They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With its diluted earnings per share (EPS) collapsing by nearly 55% in the third quarter to reach $1, it's easy to see why now might not seem like a good time to buy AbbVie (NYSE: ABBV) stock. Does this potential for improvement make AbbVie stock a buy right now, given that its turnaround clearly hasn't started yet? Let's dive in and explore why AbbVie is underperforming -- and why that might not matter in the long run. | As CMS will now be free to negotiate and therefore lower the selling price of Imbruvica, AbbVie expects to make less money on it in the future (which is reflected in its finances as the impairment). With its diluted earnings per share (EPS) collapsing by nearly 55% in the third quarter to reach $1, it's easy to see why now might not seem like a good time to buy AbbVie (NYSE: ABBV) stock. Does this potential for improvement make AbbVie stock a buy right now, given that its turnaround clearly hasn't started yet? | With its diluted earnings per share (EPS) collapsing by nearly 55% in the third quarter to reach $1, it's easy to see why now might not seem like a good time to buy AbbVie (NYSE: ABBV) stock. Does this potential for improvement make AbbVie stock a buy right now, given that its turnaround clearly hasn't started yet? Let's dive in and explore why AbbVie is underperforming -- and why that might not matter in the long run. | As CMS will now be free to negotiate and therefore lower the selling price of Imbruvica, AbbVie expects to make less money on it in the future (which is reflected in its finances as the impairment). With its diluted earnings per share (EPS) collapsing by nearly 55% in the third quarter to reach $1, it's easy to see why now might not seem like a good time to buy AbbVie (NYSE: ABBV) stock. Does this potential for improvement make AbbVie stock a buy right now, given that its turnaround clearly hasn't started yet? |
22069.0 | 2023-11-02 00:00:00 UTC | Cigna raises 2023 profit forecast on lower medical costs | ABBV | https://www.nasdaq.com/articles/cigna-raises-2023-profit-forecast-on-lower-medical-costs-0 | nan | nan | By Khushi Mandowara
Nov 2 (Reuters) - The Cigna Group CI.N raised its full-year profit forecast on Thursday, banking on strength in its pharmacy benefit unit and lower-than-expected insurance claims, sending the company's shares up 1.2%.
Health insurers had warned of a jump in medical costs earlier this year as older adults return to hospitals for elective surgeries that were delayed during the pandemic.
However, Cigna joined rival health insurers UnitedHealth UNH.N and Elevance ELV.N in allaying some of those concerns by lifting their annual adjusted profit forecasts.
Cigna also reported third-quarter adjusted earnings that beat Wall Street estimates.
Its benefit-expense ratio, or the percentage of payout on claims compared to its premiums was 80.5% in the quarter, lower than analysts' estimates of 81.67%, according to LSEG data.
Revenue from the company's health insurance unit rose 14% to $12.77 billion in the quarter as memberships in its commercial plans, which usually have a higher premium, rose.
The challenges that were forecast for U.S. commercial memberships due to economic weakness in late 2023 has not yet materialised, Cigna CFO Brian Evanko said.
Cigna's Evernorth Health, which includes the pharmacy benefits management unit, reported an 8% jump in quarterly revenue to $38.6 billion.
The company said in August it expects "accelerated income growth" in the second half for Evernorth, citing increased demand for biosimilars.
Biosimilar growth at the Evernoth unit even next year will largely be driven by close copies of AbbVie's ABBV.N arthritis treatment Humira, Evanko said.
Cigna forecast annual profit of at least $24.75 per share, compared with its previous outlook of at least $24.70 per share.
The company reported an adjusted profit of $6.77 per share in the third quarter, beating estimates of $6.67.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)
((Khushi.Mandowara@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biosimilar growth at the Evernoth unit even next year will largely be driven by close copies of AbbVie's ABBV.N arthritis treatment Humira, Evanko said. By Khushi Mandowara Nov 2 (Reuters) - The Cigna Group CI.N raised its full-year profit forecast on Thursday, banking on strength in its pharmacy benefit unit and lower-than-expected insurance claims, sending the company's shares up 1.2%. Health insurers had warned of a jump in medical costs earlier this year as older adults return to hospitals for elective surgeries that were delayed during the pandemic. | Biosimilar growth at the Evernoth unit even next year will largely be driven by close copies of AbbVie's ABBV.N arthritis treatment Humira, Evanko said. Revenue from the company's health insurance unit rose 14% to $12.77 billion in the quarter as memberships in its commercial plans, which usually have a higher premium, rose. Cigna's Evernorth Health, which includes the pharmacy benefits management unit, reported an 8% jump in quarterly revenue to $38.6 billion. | Biosimilar growth at the Evernoth unit even next year will largely be driven by close copies of AbbVie's ABBV.N arthritis treatment Humira, Evanko said. By Khushi Mandowara Nov 2 (Reuters) - The Cigna Group CI.N raised its full-year profit forecast on Thursday, banking on strength in its pharmacy benefit unit and lower-than-expected insurance claims, sending the company's shares up 1.2%. Revenue from the company's health insurance unit rose 14% to $12.77 billion in the quarter as memberships in its commercial plans, which usually have a higher premium, rose. | Biosimilar growth at the Evernoth unit even next year will largely be driven by close copies of AbbVie's ABBV.N arthritis treatment Humira, Evanko said. By Khushi Mandowara Nov 2 (Reuters) - The Cigna Group CI.N raised its full-year profit forecast on Thursday, banking on strength in its pharmacy benefit unit and lower-than-expected insurance claims, sending the company's shares up 1.2%. Cigna's Evernorth Health, which includes the pharmacy benefits management unit, reported an 8% jump in quarterly revenue to $38.6 billion. |
22070.0 | 2023-11-02 00:00:00 UTC | These 2 Medical Stocks Could Beat Earnings: Why They Should Be on Your Radar | ABBV | https://www.nasdaq.com/articles/these-2-medical-stocks-could-beat-earnings%3A-why-they-should-be-on-your-radar-5 | nan | nan | Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Astrazeneca?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Astrazeneca (AZN) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.80 a share seven days away from its upcoming earnings release on November 9, 2023.
Astrazeneca's Earnings ESP sits at +0.63%, which, as explained above, is calculated by taking the percentage difference between the $0.80 Most Accurate Estimate and the Zacks Consensus Estimate of $0.79. AZN is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AZN is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is AbbVie (ABBV).
AbbVie, which is readying to report earnings on February 8, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.93 a share, and ABBV is 98 days out from its next earnings report.
AbbVie's Earnings ESP figure currently stands at +0.65% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.91.
AZN and ABBV's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AZN and ABBV's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Another solid-looking stock is AbbVie (ABBV). AbbVie, which is readying to report earnings on February 8, 2024, sits at a Zacks Rank #3 (Hold) right now. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Another solid-looking stock is AbbVie (ABBV). AbbVie, which is readying to report earnings on February 8, 2024, sits at a Zacks Rank #3 (Hold) right now. | Another solid-looking stock is AbbVie (ABBV). AbbVie, which is readying to report earnings on February 8, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.93 a share, and ABBV is 98 days out from its next earnings report. | AZN and ABBV's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Another solid-looking stock is AbbVie (ABBV). AbbVie, which is readying to report earnings on February 8, 2024, sits at a Zacks Rank #3 (Hold) right now. |
22071.0 | 2023-11-02 00:00:00 UTC | Analysts See 17% Gains Ahead For HDV | ABBV | https://www.nasdaq.com/articles/analysts-see-17-gains-ahead-for-hdv | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core High Dividend ETF (Symbol: HDV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $112.52 per unit.
With HDV trading at a recent price near $95.79 per unit, that means that analysts see 17.47% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of HDV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Clorox Co (Symbol: CLX), and PNM Resources Inc (Symbol: PNM). Although ABBV has traded at a recent price of $142.47/share, the average analyst target is 21.62% higher at $173.27/share. Similarly, CLX has 18.60% upside from the recent share price of $115.38 if the average analyst target price of $136.85/share is reached, and analysts on average are expecting PNM to reach a target price of $49.83/share, which is 18.04% above the recent price of $42.21. Below is a twelve month price history chart comparing the stock performance of ABBV, CLX, and PNM:
Combined, ABBV, CLX, and PNM represent 6.37% of the iShares Core High Dividend ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares Core High Dividend ETF HDV $95.79 $112.52 17.47%
AbbVie Inc ABBV $142.47 $173.27 21.62%
Clorox Co CLX $115.38 $136.85 18.60%
PNM Resources Inc PNM $42.21 $49.83 18.04%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of ABBV, CLX, and PNM: Combined, ABBV, CLX, and PNM represent 6.37% of the iShares Core High Dividend ETF. Three of HDV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Clorox Co (Symbol: CLX), and PNM Resources Inc (Symbol: PNM). Although ABBV has traded at a recent price of $142.47/share, the average analyst target is 21.62% higher at $173.27/share. | Three of HDV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Clorox Co (Symbol: CLX), and PNM Resources Inc (Symbol: PNM). Below is a twelve month price history chart comparing the stock performance of ABBV, CLX, and PNM: Combined, ABBV, CLX, and PNM represent 6.37% of the iShares Core High Dividend ETF. iShares Core High Dividend ETF HDV $95.79 $112.52 17.47% AbbVie Inc ABBV $142.47 $173.27 21.62% Clorox Co CLX $115.38 $136.85 18.60% PNM Resources Inc PNM $42.21 $49.83 18.04% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Three of HDV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Clorox Co (Symbol: CLX), and PNM Resources Inc (Symbol: PNM). Although ABBV has traded at a recent price of $142.47/share, the average analyst target is 21.62% higher at $173.27/share. Below is a twelve month price history chart comparing the stock performance of ABBV, CLX, and PNM: Combined, ABBV, CLX, and PNM represent 6.37% of the iShares Core High Dividend ETF. | Although ABBV has traded at a recent price of $142.47/share, the average analyst target is 21.62% higher at $173.27/share. Three of HDV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Clorox Co (Symbol: CLX), and PNM Resources Inc (Symbol: PNM). Below is a twelve month price history chart comparing the stock performance of ABBV, CLX, and PNM: Combined, ABBV, CLX, and PNM represent 6.37% of the iShares Core High Dividend ETF. |
22072.0 | 2023-11-02 00:00:00 UTC | December 22nd Options Now Available For AbbVie | ABBV | https://www.nasdaq.com/articles/december-22nd-options-now-available-for-abbvie | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the December 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 22nd contracts and identified one put and one call contract of particular interest.
The put contract at the $142.00 strike price has a current bid of $3.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $142.00, but will also collect the premium, putting the cost basis of the shares at $138.95 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $142.78/share today.
Because the $142.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.15% return on the cash commitment, or 15.67% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $142.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $144.00 strike price has a current bid of $3.65. If an investor was to purchase shares of ABBV stock at the current price level of $142.78/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $144.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.41% if the stock gets called away at the December 22nd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $144.00 strike highlighted in red:
Considering the fact that the $144.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.56% boost of extra return to the investor, or 18.65% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $142.78) to be 20%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $144.00 strike highlighted in red: Considering the fact that the $144.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the December 22nd expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $144.00 strike highlighted in red: Considering the fact that the $144.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the December 22nd expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $142.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $144.00 strike price has a current bid of $3.65. Below is a chart showing ABBV's trailing twelve month trading history, with the $144.00 strike highlighted in red: Considering the fact that the $144.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the December 22nd expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 22nd contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $144.00 strike highlighted in red: Considering the fact that the $144.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the December 22nd expiration. |
22073.0 | 2023-11-02 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-49 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: FAIL
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22074.0 | 2023-11-02 00:00:00 UTC | 3 Dividend Stocks That Are Investor Safe Havens | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-are-investor-safe-havens | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
DividendChannel.com has a list of 25 SAFE dividend stocks.
By the site’s definition, these stocks have a reasonably high yield; the quarterly dividend is accelerating, they’ve never missed or lowered dividends and they have paid dividends for at least 20 years.
Twenty years seems like a long time. However, Dividend.com lists 15 stocks that have paid dividends for a century or more. That’s truly astounding.
Anyway, buying dividend stocks that consistently pay them has an irresistible pull on many investors. I’ve never been one of those people. To me, it’s all about the total return. How you get it is irrelevant. Just get it.
As for safe havens, there aren’t any other than 100% guaranteed Treasury bills. Speaking of which, they’ve become far more popular now that interest rates have increased.
Finally, dividend stocks have some competition. A 5% dividend yield doesn’t look nearly as enticing as a 5% Treasury yield.
As a result, when searching for dividend safe havens these days, you have to be far more picky about the names you ultimately choose.
Here are my three picks from DividendChannel.com’s list of 25.
NextEra Energy (NEE)
Source: IgorGolovniov/Shutterstock.com
NextEra Energy (NYSE:NEE) is one of three stocks InvestorPlace contributor Louis Navellier said had zero hope in 2024. My colleague felt the lowering of the distribution at the Florida utility’s subsidiary NextEra Energy Partners (NYSE:NEP) was an emphatic signal to sell NEE shares.
I don’t see it the same way.
There are two segments to NextEra: Florida Power & Light (FPL), the country’s largest utility with 5.8 million customer accounts serving more than 12 million Floridians. The other is NextEra Energy Resources, the world’s largest generator of renewable energy from wind, solar and battery storage.
In Q3 2023, the company’s adjusted earnings per share increased by 10.6% to $0.94 from $0.85 a year earlier. FPL contributed 62% of earnings, with NextEra Energy Resources bringing in 46%.
In 2021, its earnings per share were $2.55. By 2026, it expects them to be as high as $4.00, a compound annual growth rate of 9.4%. As we know, dividends follow earnings. It expects to increase dividends by 10% annually through at least 2024.
The utility has increased its dividend for 29 consecutive years. It currently pays a $1.87 annual dividend yielding 3.21%. It pays out just 48% of its earnings as dividends. Over the last 10 years, it’s grown its dividend by 10.98% annually.
Its 10-year annual return is 13.5%, almost double the utilities sector. Down 30% year-to-date, it hasn’t traded this low since 2020.
Aflac (AFL)
Source: Shutterstock
Aflac (NYSE:AFL) is best known for providing supplemental insurance to companies and their employees against a serious accident or illness. That insurance covers out-of-pocket expenses not covered by your medical insurance. With healthcare costs continually moving higher, protection can provide peace of mind during these stressful moments in life.
Across the board, supplemental insurance can help meet the gap in your coverage, whether for dental insurance, critical illness or many other major types of plans.
Aflac was started in 1955 by John Amos and his brothers Paul and Bill. Aflac stands for the American Family Life Insurance Company of Columbus. In its first year, it brought in 6,400 policyholders. In June 1974, it went public on the NYSE at $7.25 a share. Since then, it hasn’t looked back.
Many people know the company through the Aflac duck that was introduced in a 2000 ad campaign. It quickly became so well known that the company added the duck to its logo in 2005.
As of June 30, the company’s net debt was $2.37 billion — a total debt of $7.09 billion less $4.72 billion in cash — or just 5% of its $47 billion market capitalization.
In 2011, Aflac paid an annual dividend of $0.62. In 2023, it will pay an estimated $1.68 for a compound annual growth rate of 7.9%. As many dividend investors like to breach, it’s not the yield that matters but the yearly growth.
Aflac’s got plenty.
AbbVie (ABBV)
AbbVie (NYSE:ABBV) hasn’t paid dividends for as long as either NextEra or Aflac — it was spun off from Abbott Laboratories (NYSE:ABT) in 2012. But since its inception, it’s increased the annual payment by 270%.
The biopharmaceutical company known for its trio of immunology drugs — Humira, Skyrizi and Rinvoq — continues to grow its drug development pipeline. It’s got several oncology drugs in Phase 3 trials or soon to be in them. It’s even developing new uses for Botox, its medication to reduce wrinkles. Studies have shown that Botox patients are less anxious after their treatments.
Everything old is new again.
The company is transitioning from one led by a single drug (Humira) to one with multiple winners. In the third quarter, while Humira’s global revenues fell by 36.2%, its immunology stablemates, Skyrizi and Rinvoq, rose by 52.1% and 59.8%.
Investors have been worried in recent years that it wouldn’t be able to replace Humira’s revenues. However, in Q3 2023, the two drugs had sales of $3.24 billion, just $310 million less than Humira.
In 2023, it expects EPS of at least $11.19, while 2024 will see earnings of at least $11.00 a share. As a result, it announced a 4.7% increase in its quarterly dividend to $1.55. The firm’s annual rate of $6.20 yields a healthy 4.4%.
On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post 3 Dividend Stocks That Are Investor Safe Havens appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) AbbVie (NYSE:ABBV) hasn’t paid dividends for as long as either NextEra or Aflac — it was spun off from Abbott Laboratories (NYSE:ABT) in 2012. My colleague felt the lowering of the distribution at the Florida utility’s subsidiary NextEra Energy Partners (NYSE:NEP) was an emphatic signal to sell NEE shares. With healthcare costs continually moving higher, protection can provide peace of mind during these stressful moments in life. | AbbVie (ABBV) AbbVie (NYSE:ABBV) hasn’t paid dividends for as long as either NextEra or Aflac — it was spun off from Abbott Laboratories (NYSE:ABT) in 2012. InvestorPlace - Stock Market News, Stock Advice & Trading Tips DividendChannel.com has a list of 25 SAFE dividend stocks. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com NextEra Energy (NYSE:NEE) is one of three stocks InvestorPlace contributor Louis Navellier said had zero hope in 2024. | AbbVie (ABBV) AbbVie (NYSE:ABBV) hasn’t paid dividends for as long as either NextEra or Aflac — it was spun off from Abbott Laboratories (NYSE:ABT) in 2012. By the site’s definition, these stocks have a reasonably high yield; the quarterly dividend is accelerating, they’ve never missed or lowered dividends and they have paid dividends for at least 20 years. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Dividend Stocks That Are Investor Safe Havens appeared first on InvestorPlace. | AbbVie (ABBV) AbbVie (NYSE:ABBV) hasn’t paid dividends for as long as either NextEra or Aflac — it was spun off from Abbott Laboratories (NYSE:ABT) in 2012. By the site’s definition, these stocks have a reasonably high yield; the quarterly dividend is accelerating, they’ve never missed or lowered dividends and they have paid dividends for at least 20 years. In 2011, Aflac paid an annual dividend of $0.62. |
22075.0 | 2023-11-01 00:00:00 UTC | Pfizer Posted a Steep Loss. Is It Time to Sell? | ABBV | https://www.nasdaq.com/articles/pfizer-posted-a-steep-loss.-is-it-time-to-sell | nan | nan | It's been about a couple of weeks since Pfizer (NYSE: PFE) promised to make Halloween extra spooky by warning us that third-quarter results would be disappointing.
It turns out the warning was more than justified. Instead of the large profit investors have gotten used to, Pfizer reported a third-quarter loss of about $2.4 billion.
Image source: Getty Images.
While the recent loss is disturbing, shares of Pfizer are already down more than 40% this year.
Is it time to sell this pharma stock, or has the market-beating gone too far? Let's weigh the challenges it faces against its strengths to find out.
What happened?
Before the market opened on Tuesday, Oct. 31, 2023, Pfizer released third-quarter results showing why its warning was necessary. Paxlovid, the antiviral tablet approved to treat COVID-19, lost its luster so quickly that it forced a $4.7 billion inventory write-down.
Pfizer's COVID-19 vaccine isn't exactly flying off pharmacy shelves, either. Another inventory write-off regarding Comirnaty raised non-cash charges during the quarter of a whopping $5.6 billion.
To combat the loss of top-line revenue, Pfizer launched a cost-cutting plan that its shareholders will probably appreciate far more than its employees. Cost cuts are expected to reduce annual operating expenses by $1 billion in 2023 and another $2.5 billion next year.
Non-COVID sales are rising
Paxlovid sales fell hard, but the rest of Pfizer's product line is quickly picking up the slack. Sales of the company's non-COVID treatments rose 10% year over year if we ignore the negative effects of the rising U.S. dollar.
Pfizer expects non-COVID revenue to rise 6% to 8% in 2023, plus a slate of new drug launches could make the next few years exciting ones to own this stock.
Respiratory syncytial virus (RSV) feels like a common cold to most of us, but it's a leading cause of hospitalization among older adults and infants. Pfizer's Abrysvo earned approval to protect older adults from RSV in May, and it's already a blockbuster with sales that hit $375 million in its first full quarter on the market. This August, Abrysvo became the first maternal immunization for RSV, which could boost its sales much higher.
In October, the U.S. Food and Drug Administration (FDA) granted Pfizer's Humira biosimilar, called Abrilada, an interchangeable designation. This allows pharmacies to dispense Pfizer's low-cost biosimilar version even if their doctor prescribes Humira, a drug that racked up $18.6 billion in U.S. sales for AbbVie (NYSE: ABBV) last year.
Vyndaqel is a treatment for transthyretin amyloid (ATTR) cardiomyopathy, a rare heart condition that isn't so rare now that there's a viable treatment available. Third-quarter sales surged 47% higher at constant currency to an annualized $3.6 billion, and sales of this treatment could march much higher. In October, the FDA rebuffed an application to treat ATTR cardiomyopathy patients with Onpattro, a treatment from Alnylam that is already approved for patients with ATTR-related nerve damage.
Later this year, or early next year, Pfizer expects to complete its $43 billion acquisition of Seagen, a cancer drug specialist. The acquisition is expected to contribute more than $10 billion in annual revenue to Pfizer's top line by 2030.
Probably not time to sell
The write-downs Pfizer reported in the third quarter are one-time events. Cash flows from Vyndaqel, Abrysvo, and the rest of its new product lineup, though, could keep rising for years to come.
At recent prices, you can sell or buy shares of Pfizer for around 19.1 times the midpoint of management's guided range for adjusted earnings in 2023. That's a fair valuation for a pharmaceutical company growing its non-COVID sales by an annual percentage in the high single digits.
You can find better stocks to buy, but selling Pfizer shares right now looks like a mistake.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This allows pharmacies to dispense Pfizer's low-cost biosimilar version even if their doctor prescribes Humira, a drug that racked up $18.6 billion in U.S. sales for AbbVie (NYSE: ABBV) last year. It's been about a couple of weeks since Pfizer (NYSE: PFE) promised to make Halloween extra spooky by warning us that third-quarter results would be disappointing. Pfizer's Abrysvo earned approval to protect older adults from RSV in May, and it's already a blockbuster with sales that hit $375 million in its first full quarter on the market. | This allows pharmacies to dispense Pfizer's low-cost biosimilar version even if their doctor prescribes Humira, a drug that racked up $18.6 billion in U.S. sales for AbbVie (NYSE: ABBV) last year. Non-COVID sales are rising Paxlovid sales fell hard, but the rest of Pfizer's product line is quickly picking up the slack. Pfizer expects non-COVID revenue to rise 6% to 8% in 2023, plus a slate of new drug launches could make the next few years exciting ones to own this stock. | This allows pharmacies to dispense Pfizer's low-cost biosimilar version even if their doctor prescribes Humira, a drug that racked up $18.6 billion in U.S. sales for AbbVie (NYSE: ABBV) last year. Pfizer expects non-COVID revenue to rise 6% to 8% in 2023, plus a slate of new drug launches could make the next few years exciting ones to own this stock. Later this year, or early next year, Pfizer expects to complete its $43 billion acquisition of Seagen, a cancer drug specialist. | This allows pharmacies to dispense Pfizer's low-cost biosimilar version even if their doctor prescribes Humira, a drug that racked up $18.6 billion in U.S. sales for AbbVie (NYSE: ABBV) last year. Pfizer expects non-COVID revenue to rise 6% to 8% in 2023, plus a slate of new drug launches could make the next few years exciting ones to own this stock. Third-quarter sales surged 47% higher at constant currency to an annualized $3.6 billion, and sales of this treatment could march much higher. |
22076.0 | 2023-11-01 00:00:00 UTC | Investor patience tested as pharmaceutical stocks take a tumble | ABBV | https://www.nasdaq.com/articles/investor-patience-tested-as-pharmaceutical-stocks-take-a-tumble | nan | nan | The Health Care Select Sector SPDR Fund (NYSEARCA: XLV) was down 3.81% in the past month and 8.03% in the past three months. The latest round of pharmaceutical stock earnings isn't helping sector performance.
S&P 500 components Bristol Myers Squibb Co. (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), Merck & Co., Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Pfizer Inc. (NYSE: PFE) are all trading well off their previous highs. Earnings reports put a dent in those stocks.
Amgen Inc. (NASDAQ: AMGN) gapped down at the open on October 31 and was trading 3.78% lower midway through the session.
The decline came even after Amgen handily topped analysts' views, which MarketBeat's Amgen earnings data show. The company also increased its revenue forecast.
For the full year, the company raised its revenue estimate to a range between $28 billion and $28.4 billion, above an earlier forecast of $26.6 billion to $27.4 billion. It also narrowed its earnings estimate to a higher range of $18.20 and $18.80 a share, versus a previous forecast of $17.80 to $18.80.
Horizon revenue causes Amgen selloff?
Amgen recently completed its acquisition of Horizon Therapeutics. That acquisition may have played a role in the stock's selloff on October 31, as investors fretted that Amgen's revenue forecasts are due to Horizon instead of organic growth.
That may seem like nitpicking, but the Horizon revenue was modeled into analysts' forecasts long ago. Now, they want to hear about new growth, not something they're already expecting.
Amgen stock is up 11.35% in the past three months.
The broader sector has been given a boost by Eli Lilly Co. (NYSE: LLY), whose tirzepatide obesity drug has delivered a boom in sales and sent the stock's price 23.63% higher in the past three months.
Lilly is the biggest price gainer in the financial sector in the past three months.
Eli Lilly forecasts revised higher
The company reports third-quarter results on November 2 before the market opens. If you take a look at the Eli Lilly earnings page, you'll see that the company beat revenue expectations in the past two quarters but missed earnings views two quarters ago.
Wall Street expects earnings to grow by 23% this year and another 29% next year. Those forecasts were revised higher recently.
Denmark's Novo Nordisk A/S (NYSE: NVO) is up 22.72% in the past three months on the strength of diabetes and weight loss drugs. However, Novo Nordisk is not part of the S&P 500, so that's not helping the U.S. large-cap sector performance.
A big healthcare decliner in the past week was French-based Sanofi (NYSE: SNY), which cratered to the tune of 19.13% in the aftermath of its quarterly report. That wiped out $20 billion in market value in one fell swoop.
Using MarketBeat's Sanofi earnings data, you can see that the company missed revenue views. Guidance was also lower than anticipated.
Healthcare trading higher with the broader market
Taken in total, the pharmaceutical selloff doesn't look likely to rebound soon, despite the XLV ETF rallying on October 30 and October 31. Healthcare was trading higher along with the broader market, as you can see on the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) chart.
In addition, an investing myth is being busted right now: Pharmaceutical stocks are often considered defensive safe havens due to their resilience during economic downturns. While it's true that these companies provide essential healthcare products, and demand for medications remains relatively stable regardless of economic conditions, we now see how investors can lose patience with these companies, just as they can with any other sector.
A sell-off in the pharmaceutical sector is problematic as it can erode investor confidence, affecting research and development funding for future innovations. However, that condition would have to last for months for investor confidence in healthcare to truly break down.
At this juncture in the market, the tried-and-true defensive play, utility stocks, as tracked by the Utilities Select Sector SPDR Fund (NYSEARCA: XLU), which is up 2.85% in the past five days, making it the leading sector performer.
The article "Investor patience tested as pharmaceutical stocks take a tumble" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | S&P 500 components Bristol Myers Squibb Co. (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), Merck & Co., Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Pfizer Inc. (NYSE: PFE) are all trading well off their previous highs. That acquisition may have played a role in the stock's selloff on October 31, as investors fretted that Amgen's revenue forecasts are due to Horizon instead of organic growth. The broader sector has been given a boost by Eli Lilly Co. (NYSE: LLY), whose tirzepatide obesity drug has delivered a boom in sales and sent the stock's price 23.63% higher in the past three months. | S&P 500 components Bristol Myers Squibb Co. (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), Merck & Co., Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Pfizer Inc. (NYSE: PFE) are all trading well off their previous highs. The latest round of pharmaceutical stock earnings isn't helping sector performance. Eli Lilly forecasts revised higher The company reports third-quarter results on November 2 before the market opens. | S&P 500 components Bristol Myers Squibb Co. (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), Merck & Co., Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Pfizer Inc. (NYSE: PFE) are all trading well off their previous highs. That acquisition may have played a role in the stock's selloff on October 31, as investors fretted that Amgen's revenue forecasts are due to Horizon instead of organic growth. The broader sector has been given a boost by Eli Lilly Co. (NYSE: LLY), whose tirzepatide obesity drug has delivered a boom in sales and sent the stock's price 23.63% higher in the past three months. | S&P 500 components Bristol Myers Squibb Co. (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), Merck & Co., Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Pfizer Inc. (NYSE: PFE) are all trading well off their previous highs. The company also increased its revenue forecast. Amgen stock is up 11.35% in the past three months. |
22077.0 | 2023-11-01 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, Exxon Mobil, Kontoor Brands, Select Water Solutions and Macatawa Bank | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-exxon-mobil-kontoor-brands-select-water-solutions | nan | nan | For Immediate Release
Chicago, IL – November 1, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Exxon Mobil Corp. XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corp. MCBC.
Here are highlights from Tuesday’s Analyst Blog:
5 Solid Stocks to Watch That Recently Hiked Dividends
Wall Street has remained volatile over the past couple of months owing to multiple domestic and geopolitical reasons. Rising bond yield and lack of clarity over the Federal Reserve's future course of action with its interest rate hikes have been taking a toll on stocks.
The Federal Reserve kept its benchmark policy rates unchanged in the current range of 5.25-5.5% in its September FOMC meeting. However, Fed Chair Jerome Powell also warned that inflation, despite declining sharply over the past year, remains elevated and a lot higher than the central bank's 2% target.
He also hinted at another 25-basis point interest rate hike this year and said that the Fed would take each FOMC meeting separately to decide when to end its monetary tightening campaign.
Moreover, the Fed also reduced its rate cut forecast to two from four next year. This saw the 10-year Treasury yield surging to almost 5% earlier this month, leading to huge selloffs.
U.S. GDP grew at a solid 4.9% in the third quarter, surpassing the consensus estimate of a rise of 4.7% and the fastest in almost two years, the Commerce Department reported on Oct 26. However, a resilient labor market has been a major challenge for the Fed as it has been fueling inflation.
Besides, growing geopolitical tensions in the Middle East owing to the recent Israel-Hamas conflict have reignited concerns about the global economy's health.
Stocks in Focus
Given this situation, dividend-yielding stocks should be an ideal choice for investors aiming to secure their portfolios. We recommend considering stocks that have recently raised their dividend payouts.
Five such stocks are AbbVie Inc., Exxon Mobil Corp., Kontoor Brands, Inc., Select Water Solutions, Inc. and Macatawa Bank Corp..
AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed ABBV's portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe as well as the United States. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica. ABBV's newest immunology drugs, Skyrizi (risankizumab) and Rinvoq (upadacitinib), position it well for long-term growth.
On Oct 27, AbbVieannounced that its shareholders would receive a dividend of $1.55 a share on Feb 15, 2024. ABBV has a dividend yield of 4.26%. Over the past five years, AbbViehas increased its dividend six times, and its payout ratio at present sits at 50% of earnings.Check AbbVie's dividend history here.
Exxon Mobil's bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management's track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play. XOM owns some of the most prolific upstream assets globally. Exxon Mobil has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Oct 27, Exxon Mobil declared that its shareholders would receive a dividend of $0.95 a share on Dec 11, 2023. XOM has a dividend yield of 3.45%. Over the past five years, Exxon Mobil has increased its dividend four times, and its payout ratio at present sits at 35% of earnings.Check Exxon Mobil's dividend history here.
Kontoor Brands, Inc. is an apparel company. KTB designs, manufactures and distributes products. Kontoor Brands' brand consists of Wrangler, Lee, and Rock & Republic. Kontoor Brands Inc. is based in Greensboro, NC.
On Oct 27, Kontoor Brands announced that its shareholders would receive a dividend of $0.50 a share on Dec 18, 2023. KTB has a dividend yield of 4.11%. Over the past five years, Kontoor Brands has increased its dividend three times, and its payout ratio at present sits at 49% of earnings.Check Kontoor Brands' dividend history here.
Select Water Solutions, Inc. is a provider of sustainable water and chemical solutions to the energy industry. WTTR, formerly known as Select Energy Services Inc., is based in Houston.
On Oct 26, Select Water Solutions declared that its shareholders would receive a dividend of $0.06 a share on Nov 17, 2023. WTTR has a dividend yield of 2.72%. Over the past five years, Select Water Solutions has increased its dividend once, and its payout ratio at present sits at 33% of earnings.Check Select Water Solutions' dividend history here.
Macatawa Bank Corp. provides a full range of commercial and consumer banking services, primarily in the communities of Holland and Zeeland, Michigan, as well as the surrounding market area principally located in Ottawa County. MCBC's services include checking and savings accounts, safe deposit boxes, travelers checks, money orders, trust services and commercial, mortgage and consumer loans.
On Oct 26, Macatawa Bank Corporation declared that its shareholders would receive a dividend of $0.09 a share on Nov 29, 2023. MCBC has a dividend yield of 3.63%. Over the past five years, Macatawa Bank Corporation has increased its dividend thrice, and its payout ratio at present sits at 24% of earnings.Check Macatawa Bank Corporation's dividend history here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Exxon Mobil Corp. XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corp. MCBC. Five such stocks are AbbVie Inc., Exxon Mobil Corp., Kontoor Brands, Inc., Select Water Solutions, Inc. and Macatawa Bank Corp.. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed ABBV's portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe as well as the United States. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Exxon Mobil Corp. XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corp. MCBC. Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Select Water Solutions, Inc. (WTTR) : Free Stock Analysis Report Macatawa Bank Corporation (MCBC) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report To read this article on Zacks.com click here. Five such stocks are AbbVie Inc., Exxon Mobil Corp., Kontoor Brands, Inc., Select Water Solutions, Inc. and Macatawa Bank Corp.. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Select Water Solutions, Inc. (WTTR) : Free Stock Analysis Report Macatawa Bank Corporation (MCBC) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Exxon Mobil Corp. XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corp. MCBC. Five such stocks are AbbVie Inc., Exxon Mobil Corp., Kontoor Brands, Inc., Select Water Solutions, Inc. and Macatawa Bank Corp.. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Exxon Mobil Corp. XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corp. MCBC. ABBV has a dividend yield of 4.26%. Five such stocks are AbbVie Inc., Exxon Mobil Corp., Kontoor Brands, Inc., Select Water Solutions, Inc. and Macatawa Bank Corp.. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. |
22078.0 | 2023-10-31 00:00:00 UTC | Amgen third-quarter sales rise 5%, profit up before charge | ABBV | https://www.nasdaq.com/articles/amgen-third-quarter-sales-rise-5-profit-up-before-charge-0 | nan | nan | By Deena Beasley
Oct 31 (Reuters) - Amgen AMGN.O, which earlier this month acquired Horizon Therapeutics for $27.8 billion, said on Tuesday its third-quarter product sales rose 5% as double-digit volume growth was offset by lower prices.
Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion.
The California-based biotech also raised the low end of its forecast range for 2023 adjusted earnings and now expects $18.20 to $18.80 per share, from $17.80 to $18.80 earlier.
Wall Street analysts, on average, have forecast 2023 earnings of $18.47 per share on revenue of $28 billion, according to LSEG data.
Horizon "is a great rare disease business ... We're confident now that we've officially closed and joined forces," Amgen Chief Financial Officer Peter Griffith said in a phone interview.
The deal closed after the U.S. Federal Trade Commission backed down from its contention that Amgen would be able to leverage its big selling drugs to pressure insurance companies and pharmacy benefit managers to favor Horizon's products.
The Horizon portfolio of drugs generated $945 million in sales, with $453 million coming from thyroid eye disease treatment Tepezza while gout drug Krystexxa garnered $253 million, Vikram Karnani, an executive who joined Amgen from Horizon, said during an investor conference call.
Excluding a $650 million charge for discontinuing experimental prostate cancer drug AMG340, Amgen said quarterly profit per share rose 6% to $4.96, which was higher than the average analyst estimate of $4.67. Including the charge, net income per share fell 19% to $3.22.
Shares of Amgen were down 4% in early trading.
Total revenue for the quarter rose 4% to $6.9 billion.
Analysts had expected adjusted earnings per share of $4.67 on revenue of $7 billion.
Quarterly sales of cholesterol drug Repatha rose 31% from a year earlier to $406 million, while sales of osteoporosis drug Prolia rose 14% to $986 million.
Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion.
Amgen said it expects to announce findings from an early-stage trial of experimental obesity drug AMG786 in the first half of next year, and to have results from a mid-stage trial of a different obesity candidate, AMG133, by late next year.
Theglobal marketfor weight-loss drugs is forecast to reach as much as $100 billion annually within the decade.
(Reporting By Deena Beasley and Leroy Leo in Bengaluru Editing by Bill Berkrot)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. By Deena Beasley Oct 31 (Reuters) - Amgen AMGN.O, which earlier this month acquired Horizon Therapeutics for $27.8 billion, said on Tuesday its third-quarter product sales rose 5% as double-digit volume growth was offset by lower prices. Horizon "is a great rare disease business ... We're confident now that we've officially closed and joined forces," Amgen Chief Financial Officer Peter Griffith said in a phone interview. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion. Quarterly sales of cholesterol drug Repatha rose 31% from a year earlier to $406 million, while sales of osteoporosis drug Prolia rose 14% to $986 million. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion. The Horizon portfolio of drugs generated $945 million in sales, with $453 million coming from thyroid eye disease treatment Tepezza while gout drug Krystexxa garnered $253 million, Vikram Karnani, an executive who joined Amgen from Horizon, said during an investor conference call. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion. Excluding a $650 million charge for discontinuing experimental prostate cancer drug AMG340, Amgen said quarterly profit per share rose 6% to $4.96, which was higher than the average analyst estimate of $4.67. |
22079.0 | 2023-10-31 00:00:00 UTC | Is AbbVie Still a Good Dividend Stock to Buy? | ABBV | https://www.nasdaq.com/articles/is-abbvie-still-a-good-dividend-stock-to-buy-0 | nan | nan | One thing income seekers don't want to see from the businesses they invest in is a major disruption to their incoming cash flows. Unfortunately for shareholders of AbbVie (NYSE: ABBV), the drugmaker's top-selling product, Humira, lost patent-protected market exclusivity in the U.S. earlier this year.
U.S. Humira sales came in at $18.6 billion last year, or around 41% of total revenue. Its loss of exclusivity is creating a mighty big hole to fill, but there are some powerful new growth drivers in AbbVie's product portfolio.
The dividend payout has grown 285% since its inception in 2013. Let's measure AbbVie's strengths against the challenges it's facing to see if it's still a good dividend stock to buy.
Managing the decline
When small-molecule drugs lose patent protection, competition from generic versions can cause sales of the branded product to fall more than half in the first year. There isn't going to be any generic Humira, though. It's a biologic drug produced by a specific culture of living cells, and AbbVie doesn't have to share that cell line with competitors.
AbbVie has had to lower Humira prices to compete with biosimilar versions that launched this year. So far, though, the losses have been manageable. Third-quarter Humira sales in the U.S. fell 39% year over year to $3 billion.
Over the past decade, AbbVie has invested Humira's profits back into the development of new treatments. As a result, overall third-quarter sales were down just 6% year over year.
Image source: Getty Images.
New growth drivers
Management thinks the company can return to rapid growth in 2025 with increasing contributions from more-recently launched drugs. Skyrizi is an injection that psoriasis patients receive every three months, and its sales are growing by leaps and bounds. The Food and Drug Administration (FDA) first approved it in 2019, and sales have already risen to an annualized $8.5 billion.
AbbVie is also reporting tremendous success with Rinvoq, a once-daily tablet for arthritis, eczema, and inflammatory bowel disease that also was launched in 2019. Management is predicting more than $21 billion in combined sales for Rinvoq and Skyrizi by 2027.
While Rinvoq and Skyrizi offset Humira losses, Vraylar could drive sales to new heights. First approved to treat schizophrenia and bipolar disorder in 2015, it earned a new label expansion last December to include the huge population of patients with major depressive disorder (MDD).
Third-quarter Vraylar sales jumped to $751 million from just $35.4 million in the prior-year period. Millions of MDD patients feel underserved by available treatments, and I won't be surprised if annual sales of this drug exceed $5 billion in 2024.
About the dividend
AbbVie's third-quarter earnings announcement came with a modest 4.7% dividend raise. At recent prices, the stock offers a 4.5% yield, which is huge when you consider that the average dividend-paying stock in the Dow Jones Industrial Average offers a yield of just 2.2% at the moment.
AbbVie raised its earnings outlook for 2023 to a range between $11.19 and $11.23 per share, which is more than enough to cover a dividend payout it recently raised to $6.20 per share annually.
Next year, AbbVie expects Humira's decline to pressure earnings further, but not by much. Management recently raised its floor on earnings guidance for next year to $11 per share.
Humira's decline is upsetting to watch, but we can be fairly confident about AbbVie's ability to offset those losses and return to growth in a few short years. Tucking some shares of this pharma stock into your portfolio now looks like a very smart move.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Unfortunately for shareholders of AbbVie (NYSE: ABBV), the drugmaker's top-selling product, Humira, lost patent-protected market exclusivity in the U.S. earlier this year. Its loss of exclusivity is creating a mighty big hole to fill, but there are some powerful new growth drivers in AbbVie's product portfolio. Let's measure AbbVie's strengths against the challenges it's facing to see if it's still a good dividend stock to buy. | Its loss of exclusivity is creating a mighty big hole to fill, but there are some powerful new growth drivers in AbbVie's product portfolio. About the dividend AbbVie's third-quarter earnings announcement came with a modest 4.7% dividend raise. Unfortunately for shareholders of AbbVie (NYSE: ABBV), the drugmaker's top-selling product, Humira, lost patent-protected market exclusivity in the U.S. earlier this year. | Humira's decline is upsetting to watch, but we can be fairly confident about AbbVie's ability to offset those losses and return to growth in a few short years. Unfortunately for shareholders of AbbVie (NYSE: ABBV), the drugmaker's top-selling product, Humira, lost patent-protected market exclusivity in the U.S. earlier this year. Its loss of exclusivity is creating a mighty big hole to fill, but there are some powerful new growth drivers in AbbVie's product portfolio. | Unfortunately for shareholders of AbbVie (NYSE: ABBV), the drugmaker's top-selling product, Humira, lost patent-protected market exclusivity in the U.S. earlier this year. Its loss of exclusivity is creating a mighty big hole to fill, but there are some powerful new growth drivers in AbbVie's product portfolio. Let's measure AbbVie's strengths against the challenges it's facing to see if it's still a good dividend stock to buy. |
22080.0 | 2023-10-31 00:00:00 UTC | 5 Solid Stocks to Watch That Recently Hiked Dividends | ABBV | https://www.nasdaq.com/articles/5-solid-stocks-to-watch-that-recently-hiked-dividends | nan | nan | Wall Street has remained volatile over the past couple of months owing to multiple domestic and geopolitical reasons. Rising bond yield and lack of clarity over the Federal Reserve’s future course of action with its interest rate hikes have been taking a toll on stocks.
The Federal Reserve kept its benchmark policy rates unchanged in the current range of 5.25-5.5% in its September FOMC meeting. However, Fed Chair Jerome Powell also warned that inflation, despite declining sharply over the past year, remains elevated and a lot higher than the central bank’s 2% target.
He also hinted at another 25-basis point interest rate hike this year and said that the Fed would take each FOMC meeting separately to decide when to end its monetary tightening campaign.
Moreover, the Fed also reduced its rate cut forecast to two from four next year. This saw the 10-year Treasury yield surging to almost 5% earlier this month, leading to huge selloffs.
U.S. GDP grew at a solid 4.9% in the third quarter, surpassing the consensus estimate of a rise of 4.7% and the fastest in almost two years, the Commerce Department reported on Oct 26. However, a resilient labor market has been a major challenge for the Fed as it has been fueling inflation.
Besides, growing geopolitical tensions in the Middle East owing to the recent Israel-Hamas conflict have reignited concerns about the global economy’s health.
Stocks in Focus
Given this situation, dividend-yielding stocks should be an ideal choice for investors aiming to secure their portfolios. We recommend considering stocks that have recently raised their dividend payouts.
Five such stocks are AbbVie Inc. ABBV, Exxon Mobil Corporation XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corporation MCBC.
AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed ABBV's portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe as well as the United States. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica. ABBV’s newest immunology drugs, Skyrizi (risankizumab) and Rinvoq (upadacitinib), position it well for long-term growth.
On Oct 27, AbbVieannounced that its shareholders would receive a dividend of $1.55 a share on Feb 15, 2024. ABBV has a dividend yield of 4.26%. Over the past five years, AbbViehas increased its dividend six times, and its payout ratio at present sits at 50% of earnings.Check AbbVie’s dividend history here.
Exxon Mobil Corporation’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management's track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play. XOM owns some of the most prolific upstream assets globally. Exxon Mobil has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Oct 27, Exxon Mobil declared that its shareholders would receive a dividend of $0.95 a share on Dec 11, 2023. XOM has a dividend yield of 3.45%. Over the past five years, Exxon Mobil has increased its dividend four times, and its payout ratio at present sits at 35% of earnings.Check Exxon Mobil’s dividend history here.
Kontoor Brands, Inc. is an apparel company. KTB designs, manufactures and distributes products. Kontoor Brands’ brand consists of Wrangler, Lee, and Rock & Republic. Kontoor Brands Inc. is based in Greensboro, NC.
On Oct 27, Kontoor Brands announced that its shareholders would receive a dividend of $0.50 a share on Dec 18, 2023. KTB has a dividend yield of 4.11%. Over the past five years, Kontoor Brands has increased its dividend three times, and its payout ratio at present sits at 49% of earnings.Check Kontoor Brands’ dividend history here.
Select Water Solutions, Inc. is a provider of sustainable water and chemical solutions to the energy industry. WTTR, formerly known as Select Energy Services Inc., is based in Houston.
On Oct 26, Select Water Solutions declared that its shareholders would receive a dividend of $0.06 a share on Nov 17, 2023. WTTR has a dividend yield of 2.72%. Over the past five years, Select Water Solutions has increased its dividend once, and its payout ratio at present sits at 33% of earnings.Check Select Water Solutions’ dividend history here.
Macatawa Bank Corporation provides a full range of commercial and consumer banking services, primarily in the communities of Holland and Zeeland, Michigan, as well as the surrounding market area principally located in Ottawa County. MCBC’s services include checking and savings accounts, safe deposit boxes, travelers checks, money orders, trust services and commercial, mortgage and consumer loans.
On Oct 26, Macatawa Bank Corporation declared that its shareholders would receive a dividend of $0.09 a share on Nov 29, 2023. MCBC has a dividend yield of 3.63%. Over the past five years, Macatawa Bank Corporation has increased its dividend thrice, and its payout ratio at present sits at 24% of earnings.Check Macatawa Bank Corporation’s dividend history here.
5 Stocks Set to Double
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The deal has transformed ABBV's portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe as well as the United States. Five such stocks are AbbVie Inc. ABBV, Exxon Mobil Corporation XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corporation MCBC. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Five such stocks are AbbVie Inc. ABBV, Exxon Mobil Corporation XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corporation MCBC. Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Select Water Solutions, Inc. (WTTR) : Free Stock Analysis Report Macatawa Bank Corporation (MCBC) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Five such stocks are AbbVie Inc. ABBV, Exxon Mobil Corporation XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corporation MCBC. Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Select Water Solutions, Inc. (WTTR) : Free Stock Analysis Report Macatawa Bank Corporation (MCBC) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Five such stocks are AbbVie Inc. ABBV, Exxon Mobil Corporation XOM, Kontoor Brands, Inc. KTB, Select Water Solutions, Inc. WTTR and Macatawa Bank Corporation MCBC. ABBV has a dividend yield of 4.26%. AbbVie Inc. has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. |
22081.0 | 2023-10-31 00:00:00 UTC | Amgen third-quarter sales rise 5%; profit up before charge | ABBV | https://www.nasdaq.com/articles/amgen-third-quarter-sales-rise-5-profit-up-before-charge | nan | nan | By Deena Beasley
Oct 31 (Reuters) - Amgen AMGN.O, which earlier this month acquired Horizon Therapeutics for $27.8 billion, on Tuesday said its third-quarter product sales rose 5% as double-digit volume growth was offset by lower prices.
Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion.
The California biotech also raised the low end of its forecast range for 2023 adjusted earnings and now expects $18.20 to $18.80 per share, from $17.80 to $18.80 earlier.
Wall Street analysts, on average, have forecast 2023 earnings of $18.47 per share on revenue of $28 billion, according to LSEG data.
Horizon "is a great rare disease business ... We're confident now that we've officially closed and joined forces," Amgen Chief Financial Officer Peter Griffith said in a phone interview.
The deal closed after the U.S. Federal Trade Commission backed down from its contention that Amgen would be able to leverage its big selling drugs to pressure insurance companies and pharmacy benefit managers to favor Horizon's products.
Investors will be keen to see whether Amgen, which has operations around the world, can help boost sales of Horizon's two key products, thyroid eye disease treatment Tepezza and gout drug Krystexxa.
Excluding a $650 million charge for discontinuing experimental prostate cancer drug AMG340, Amgen said quarterly profit per share rose 6% to $4.96 from $4.70 a year earlier. Including the charge, net income per share fell 19% to $3.22.
Total revenue for the quarter rose 4% to $6.9 billion.
Analysts had expected adjusted earnings per share of $4.67 on revenue of $7 billion.
Quarterly sales of cholesterol drug Repatha rose 31% from a year earlier to $406 million, while sales of osteoporosis drug Prolia rose 14% to $986 million.
Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion.
Amgen said it expects to announce findings from an early-stage trial of experimental obesity drug AMG786 in the first half of next year, and to have results from a mid-stage trial of a different obesity candidate, AMG133, by late next year.
Theglobal marketfor weight-loss drugs is forecast to reach as much as $100 billion annually within the decade.
(Reporting By Deena Beasley Editing by Bill Berkrot)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. By Deena Beasley Oct 31 (Reuters) - Amgen AMGN.O, which earlier this month acquired Horizon Therapeutics for $27.8 billion, on Tuesday said its third-quarter product sales rose 5% as double-digit volume growth was offset by lower prices. The deal closed after the U.S. Federal Trade Commission backed down from its contention that Amgen would be able to leverage its big selling drugs to pressure insurance companies and pharmacy benefit managers to favor Horizon's products. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. Excluding a $650 million charge for discontinuing experimental prostate cancer drug AMG340, Amgen said quarterly profit per share rose 6% to $4.96 from $4.70 a year earlier. Quarterly sales of cholesterol drug Repatha rose 31% from a year earlier to $406 million, while sales of osteoporosis drug Prolia rose 14% to $986 million. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion. Quarterly sales of cholesterol drug Repatha rose 31% from a year earlier to $406 million, while sales of osteoporosis drug Prolia rose 14% to $986 million. | Sales of Amjevita, Amgen's new biosimilar version of AbbVie's ABBV.N blockbuster arthritis drug Humira, rose 30% to $152 million, but sales of cancer drug Lumakras fell 31% to $52 million and sales of arthritis drug Enbrel fell 6% to $1.1 billion. Amgen said it would discuss sales of Horizon's drugs on a conference call with analysts and investors, but raised its post-acquisition forecast for full-year sales to between $28 billion and $28.4 billion from a previous estimate of $26.6 billion to $27.4 billion. Wall Street analysts, on average, have forecast 2023 earnings of $18.47 per share on revenue of $28 billion, according to LSEG data. |
22082.0 | 2023-10-31 00:00:00 UTC | J&J stock down as business unit mulls talc-related bankruptcy | ABBV | https://www.nasdaq.com/articles/jj-stock-down-as-business-unit-mulls-talc-related-bankruptcy | nan | nan | Shares of Johnson & Johnson (NYSE: JNJ) slid 4.84% lower the week ending October 27, as the company’s subsidiary LTL Management is facing a raft of lawsuits pertaining to talc in its baby powder.
Financially, a bankruptcy for that unit would make sense, so the company could avoid substantial payouts that could put a dent in earnings.
Strategically, it could also put trials on pause while the company negotiates with plaintiffs’ attorneys. There have already been two previous bankruptcy filings by the LTL Management unit, although those cases were dismissed.
Johnson & Johnson stock has been struggling, posting a three-month decline of 15.49% and a year-to-date decline of 15.59%. It’s the third most heavily weighted component among healthcare stocks in the Health Care Select Sector SPDR Fund (NYSEARCA: XLV), behind UnitedHealth Group Inc. (NYSE: UNH) and Eli Lilly Co. (NYSE: LLY).
At least 18 jury trials are in the works in the coming year, spurring J&J to mull bankruptcy as a way of encouraging a global settlement. Plaintiffs claim they developed ovarian cancer and mesothelioma as a result of using baby powder tainted with asbestos.
Billions in talc settlements
Since 2016, the company has paid out at least $2.5 billion in settlements related to these claims.
In July, a jury decided that the company would have to pay $18.8 million to a California man who contracted mesothelioma, a deadly cancer, as a result of long-time exposure to Johnson & Johnson talc.
At this point, with the lawsuits and potential awards piling up, Johnson & Johnson is aiming for a global settlement. Attorneys representing some o of the estimated 70,000 talc lawsuit plaintiffs would support a deal for $8.9 billion that J&J has proposed.
It’s a complex situation: LTL Management was spun off by Johnson & Johnson in 2021 as a vehicle to absorb the company’s talc liability. There have been lawsuits and counter-lawsuits, with J&J filing suit against scientific experts from a previous case.
The company says the cost of its talc-related verdicts, settlements and legal fees now total about $4.5 billion.
No longer selling talc baby powder
In response to lawsuits and bad publicity surrounding the products, Johnson & Johnson said in May 2020 it would stop selling talc-based baby powder in the U.S. and Canada. It now sells cornstarch-based products, but has claimed that "misinformation" surrounds the products’ safety.
Those products are now sold by Johnson & Johnson spinoff Kenvue Inc. (NYSE: KVUE). That company specializes in consumer products while Johnson & Johnson focuses on pharmaceuticals and medical devices.
Of course, conditions beyond just talc lawsuits are affecting Johnson & Johnson stock.
On October 17, the company reported quarterly results that beat views on the top and bottom lines, as you can see using MarketBeat’s Johnson & Johnson earnings data.
Boosted full-year guidance
The company also raised its full-year guidance, now expecting full-year revenue in a range between $83.6 billion to $84 billion, up from earlier guidance of $83.2 billion to $84 billion. J&J also expects adjusted earnings per share in a range from $10.07 to $10.13, up from earlier guidance of $10.00 to $10.10.
Strong growth in sales for multiple myeloma treatment Darzalex was a key driver in the quarter, along with prostate cancer treatment Erleada.
Stelara, the company’s blockbuster treatment for inflammatory diseases, was also a big grower. However, J&J loses patent protection on that product this year.
However, a decline in sales of prostate cancer drug Zytiga and blood cancer drug Imbruvica offset some of those gains. Imbruvica, which is co-marketed by AbbVie Inc. (NYSE: ABBV), is subject to Medicare price negotiations.
The steep decline in sales of J&J’s Covid vaccine also weighed on pharmaceutical revenue growth. The vaccine is no longer sold in the U.S., and international revenue is falling. In media interviews, company executives said its success is not dependent on that product.
The article "J&J stock down as business unit mulls talc-related bankruptcy" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Imbruvica, which is co-marketed by AbbVie Inc. (NYSE: ABBV), is subject to Medicare price negotiations. Financially, a bankruptcy for that unit would make sense, so the company could avoid substantial payouts that could put a dent in earnings. At least 18 jury trials are in the works in the coming year, spurring J&J to mull bankruptcy as a way of encouraging a global settlement. | Imbruvica, which is co-marketed by AbbVie Inc. (NYSE: ABBV), is subject to Medicare price negotiations. No longer selling talc baby powder In response to lawsuits and bad publicity surrounding the products, Johnson & Johnson said in May 2020 it would stop selling talc-based baby powder in the U.S. and Canada. Boosted full-year guidance The company also raised its full-year guidance, now expecting full-year revenue in a range between $83.6 billion to $84 billion, up from earlier guidance of $83.2 billion to $84 billion. | Imbruvica, which is co-marketed by AbbVie Inc. (NYSE: ABBV), is subject to Medicare price negotiations. Shares of Johnson & Johnson (NYSE: JNJ) slid 4.84% lower the week ending October 27, as the company’s subsidiary LTL Management is facing a raft of lawsuits pertaining to talc in its baby powder. No longer selling talc baby powder In response to lawsuits and bad publicity surrounding the products, Johnson & Johnson said in May 2020 it would stop selling talc-based baby powder in the U.S. and Canada. | Imbruvica, which is co-marketed by AbbVie Inc. (NYSE: ABBV), is subject to Medicare price negotiations. There have already been two previous bankruptcy filings by the LTL Management unit, although those cases were dismissed. Those products are now sold by Johnson & Johnson spinoff Kenvue Inc. (NYSE: KVUE). |
22083.0 | 2023-10-31 00:00:00 UTC | Amgen (AMGN) Beats on Q3 Earnings Beat, Lags Sales, Ups View | ABBV | https://www.nasdaq.com/articles/amgen-amgn-beats-on-q3-earnings-beat-lags-sales-ups-view | nan | nan | Amgen AMGN reported third-quarter 2023 adjusted earnings of $4.96 per share, which beat the Zacks Consensus Estimate of $4.65. Earnings rose 6% year over year due to higher revenues, which were partially offset by higher operating costs.
Total revenues of $6.90 billion missed the Zacks Consensus Estimate of $6.96 billion. Total revenues rose 4% year over year, driven by higher product sales.
Total product revenues increased 5% from the year-ago quarter to $6.55 billion (U.S.: $4.69 billion; ex-U.S.: $1.86 billion). Higher volumes were partially offset by lower selling prices of several drugs. Volumes rose 11% in the quarter, partially offset by a 3% lower net selling price and 3% unfavorable changes to estimated sales deductions.
Other revenues were $355 million in the quarter, down 14.5% year over year.
Performance of Key Drugs
General Medicine
Prolia revenues came in at $986 million, up 14% from the year-ago quarter, driven by volume growth. Prolia sales beat the Zacks Consensus Estimate of $983 million but missed our model estimate of $992 million.
Evenity recorded sales of $307 million in the quarter, up 53% year over year, driven by solid volume growth in and outside the United States. Evenity sales beat the Zacks Consensus Estimate of $284 million as well as our model estimate of $289 million.
Repatha generated revenues of $406 million, up 31% year over year, as higher volume was partially offset by lower prices. Repatha sales marginally missed the Zacks Consensus Estimate of $407 million but beat our model estimate of $400 million.
Aimovig recorded sales of $94 million in the quarter, down 12% year over year due to lower net selling price.
Hematology-Oncology
Xgeva delivered revenues of $519 million, up 5% year over year, driven by higher net selling prices. Xgeva sales missed both the Zacks Consensus Estimate and our model estimates of $522 million and $527 million, respectively.
Kyprolis recorded sales of $349 million, up 10% year over year, driven by volume growth.
Vectibix revenues came in at $252 million, up 2% year over year, driven by volume growth and higher net sales, both of which were partially offset by unfavorable foreign exchange impact.
Nplate sales rose 45% to $419 million, driven by volume growth resulting from a $142 million order from the United States government. Blincyto sales increased 55% from the year-ago period to $220 million, also driven by volume growth.
Lumakras/ Lumykras recorded sales of $52 million in the quarter, down 31% from the year-ago period, due to unfavorable changes to estimated sales deductions related to ongoing reimbursement negotiations in France. Lumakras/Lumykras sales missed the Zacks Consensus Estimate of $87 million as well as our model estimate of $95 million.
In oncology biosimilars, sales of Kanjinti (Amgen’s biosimilar of Roche’s Herceptin) were $20 million, down 72% year over year due to lower pricing and volumes as a result of increased competition.
Sales of Mvasi (biosimilar of Roche’s Avastin) were $213 million in the quarter, up 2% year over year, driven by volume growth and favorable changes to estimated sales deductions, both of which were partially offset by lower pricing.
Inflammation
Sales of Otezla were $567 million in the quarter, down 10%, due to lower pricing, unfavorable changes to estimated sales deductions and lower inventory levels. Otezla sales in the United States continued to be hurt by free drug programs launched by new competitors, with the impact expected to continue throughout 2023. Otezla sales missed the Zacks Consensus Estimate of $635 as well as our estimate of $620 million.
Enbrel revenues of $1.04 billion declined 6% year over year due to unfavorable changes to estimated sales deductions. Enbrel sales beat the Zacks Consensus Estimate and our estimate, both of which stood at $1.02 billion.
Newly approved asthma drug Tezspire (tezepelumab) recorded sales of $161 million in the quarter, up 21% sequentially, driven by volume growth. Tezspire volumes benefited from the launch of a self-administered, pre-filled, single-use pen formulation of the drug in the first quarter, which improves patient convenience and accessibility and also provides more flexibility in treatment options.
Amgen has a partnership with AstraZeneca AZN for Tezspire. Amgen and AstraZeneca share costs and profits equally after AstraZeneca pays a mid-single-digit inventor royalty to Amgen. While AstraZeneca leads development, Amgen leads manufacturing.
Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $152 million in the quarter, up 30% year over year, driven by volume growth.
Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Amgen already markets a biosimilar of Amjevita in Europe under the trade name Amgevita.
Also, several more biosimilar versions of AbbVie’s Humira were launched this year, which can hurt Amjevita sales going forward.
New drug Tavneos generated $37 million in sales in the third quarter compared with $30 million in the previous quarter. The drug’s 23% sequential growth was driven by new patient volume growth. Tavneos, approved for the treatment of patients with ANCA-associated vasculitis, a severe systemic autoimmune disease, was added to Amgen’s portfolio with the 2022 acquisition of ChemoCentryx.
Established Products
Total sales of established products, which include Epogen, Aranesp, Parsabiv and Neulasta, decreased 30% year over year in the third quarter.
Operating Margins Decline
Adjusted operating margin declined 0.5 percentage points to 52.0% in the quarter. Adjusted operating expenses increased 4% to $3.50 billion due to higher cost of goods sold.
R&D expenses fell 2% year over year to $1.07 billion due to lower spending in research and early pipeline programs. SG&A spending rose 1% to $1.29 billion.
2023 Guidance Raised
Earlier this month, Amgen completed the acquisition of Horizon Therapeutics for $116.50 per share in cash or $27.8 billion. Per the mutually agreed settlement terms with the Federal Trade Commission (“FTC”), Amgen is prohibited from bundling its products with Horizon's Tepezza or Krystexxa. The company will also be required to get the FTC’s permission to buy any competitor to the two acquired drugs till 2032.
Following the completion of the Horizon acquisition, Amgen updated its previously issued revenue and earnings guidance for 2023.
Revenues are now expected in the range of $28.0 billion to $28.4 billion, up from the previous expectation of $26.6 billion to $27.4 billion. The Zacks Consensus Estimate is pegged at $27.54 billion.
Adjusted earnings are expected in the range of $18.20 to $18.80, up from the prior expectations of $17.80 to $18.80 per share. The Zacks Consensus Estimate is pegged at $18.29 per share.
The adjusted tax rate is expected to be in the range of 16.5% to 17.0% (previously 17.5%-18.5%), while capital expenditures are now expected to be approximately $950 million (previously $925 million). Amgen expects to buy back shares worth not more than $500 million (maintained) in 2023.
Our Take
Amgen’s Q3 results were mixed as it beat estimates for earnings but missed the mark for sales. The company witnessed robust volume growth across all its three therapeutic areas: general medicine, inflammation and hematology-oncology portfolios. However, the continued weak sales of some key drugs like Lumakras and Otezla are hurting investor sentiment. This was likely the reason for the stock being down 2.7% in pre-market trading post the earnings announcement.
Year-to-date, Amgen’s stock has gained 0.2% against the industry‘s 25.4% decline.
Image Source: Zacks Investment Research
In the first nine months ended September 2023, Amgen’s top-line has demonstrated consistent year-over-year growth, backed by old medicines like Evenity, Repatha and Prolia, as well as newer medicines like Tavneos and Tezspire. The sales of these drugs more than offset the declining revenues from oncology biosimilars and legacy established products such as Enbrel and Otezla. With the completion of the Horizon acquisition, we expect a further boost to revenue growth, which is likely to be accretive to earnings from next year.
Amgen Inc. Price
Amgen Inc. price | Amgen Inc. Quote
Zacks Rank & Key Picks
Amgen currently carries a Zacks Rank #3 (Hold).A top-ranked stock in the overall healthcare sector is Ligand Pharmaceuticals LGND, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for Ligand Pharmaceuticals’ 2023 earnings per share have increased from $4.98 to $5.10. During the same period, the earnings estimate per share for 2024 have risen from $4.26 to $4.59. Shares of Ligand lost 23.9% in the year-to-date period.
Ligand beat earnings estimates in three of the last four quarters while missing the mark on one occasion. The company has delivered an earnings surprise of 52.47% on average. In the last reported quarter, Ligand’s earnings beat estimates by 86.84%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $152 million in the quarter, up 30% year over year, driven by volume growth. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Also, several more biosimilar versions of AbbVie’s Humira were launched this year, which can hurt Amjevita sales going forward. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $152 million in the quarter, up 30% year over year, driven by volume growth. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. | Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $152 million in the quarter, up 30% year over year, driven by volume growth. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Also, several more biosimilar versions of AbbVie’s Humira were launched this year, which can hurt Amjevita sales going forward. | Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $152 million in the quarter, up 30% year over year, driven by volume growth. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Also, several more biosimilar versions of AbbVie’s Humira were launched this year, which can hurt Amjevita sales going forward. |
22084.0 | 2023-10-31 00:00:00 UTC | ABBV Quantitative Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-quantitative-stock-analysis-6 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: FAIL
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22085.0 | 2023-10-31 00:00:00 UTC | Pfizer's Coming for AbbVie's Market Share. Here's What It Means for Investors | ABBV | https://www.nasdaq.com/articles/pfizers-coming-for-abbvies-market-share.-heres-what-it-means-for-investors | nan | nan | On Oct. 13, regulators at the Food and Drug Administration (FDA) ruled that Pfizer's (NYSE: PFE) new drug for moderate to severe ulcerative colitis (UC), Velsipity, was ready for prime time. That puts the company on a collision course with AbbVie (NYSE: ABBV), the leader of the market for ulcerative colitis therapies for many years.
In a worst-case scenario, it's possible that AbbVie might get its lunch eaten. Even under the best of conditions, it'll probably face a headwind in gaining and retaining market share, and there's more than one disease market at stake. Here's what's going on and what it means for investors.
More than one market is going to get crowded, and soon
Ulcerative colitis (UC) is a chronic inflammatory disease of the colon and rectum for which there are a handful of treatments available, but no cure. UC affects as many as 4 out of 1,000 people in North America, and it appears to be more prevalent in the Western world compared to elsewhere.
Per a report by Mordor Intelligence, the market for ulcerative colitis therapies could become as large as $9 billion by 2028. Wall Street analysts anticipate that in fiscal 2024, Pfizer will bring in $64 billion of revenue and AbbVie will bring in $53 billion -- and so capturing a decent share of that market could easily drive significant growth.
But UC isn't the only market where Pfizer and AbbVie are expected to do battle over the coming years. Pfizer is also running a handful of mid-stage clinical trials investigating whether Velsipity might be useful to treat Crohn's disease, alopecia areata, atopic dermatitis, and eosinophilic esophagitis.
With the exception of the last condition, all of those indications overlap with AbbVie's rising stars Skyrizi and Rinvoq. They also overlap with the juggernaut Humira, which those two drugs are slated to replace in the company's lineup (now that Humira is seeing competition from generics as a result of going over the patent cliff in the U.S. this year). If AbbVie has its way, the pair will bring in more than $17 billion by 2025, and as much as $21 billion by 2027.
Velsipity could easily throw a big wrench into that plan. Pfizer is working to expand the indications of its alopecia drug on the market, Litfulo, so that it could be marketed for ulcerative colitis and Crohn's disease -- and also vitiligo, which could eventually also be addressed by Rinvoq. So Velsipity and Litfulo will be nibbling on AbbVie's market share in multiple segments where it's looking for growth through the rest of the decade, assuming it can get regulatory approval for the additional indications after the relevant clinical trials are done.
Plus, both businesses will also be competing with Bristol Myers Squibb's medicine Zeposia in the UC market. Early comparisons suggest that Velsipity might be more effective than Zeposia; more conclusive direct comparisons between the two, not to mention between them and Skyrizi and Rinvoq, are likely forthcoming. In short, Bristol Myers Squibb's participation in the fight for market share is a wild card until more research is published.
What should AbbVie investors do?
Velsipity's approval is an event that AbbVie's management probably saw coming. Don't rush to sell your shares because of it; there are many other markets where it'll continue to compete successfully.
Furthermore, there's no guarantee that Pfizer's ongoing attempt at a land grab will succeed. It's fully possible that Skyrizi and Rinvoq will have treatment niches where they're the preferred solutions, and for now, UC is the main turf being disputed by Velsipity. It's also important to remember that Rinvoq and Skyrizi have a head start on Velsipity in nearly all of the markets in question.
Still, the probability of AbbVie hitting revenue headwinds over the next few years just increased, and it isn't as though its top line was projected to grow rapidly before Velsipity. The approval of the new drug is also a point in favor for the long-term Pfizer bull thesis. There's no telling which player will win the looming competition, but presently it looks like the momentum favors Pfizer.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So Velsipity and Litfulo will be nibbling on AbbVie's market share in multiple segments where it's looking for growth through the rest of the decade, assuming it can get regulatory approval for the additional indications after the relevant clinical trials are done. Still, the probability of AbbVie hitting revenue headwinds over the next few years just increased, and it isn't as though its top line was projected to grow rapidly before Velsipity. That puts the company on a collision course with AbbVie (NYSE: ABBV), the leader of the market for ulcerative colitis therapies for many years. | That puts the company on a collision course with AbbVie (NYSE: ABBV), the leader of the market for ulcerative colitis therapies for many years. In a worst-case scenario, it's possible that AbbVie might get its lunch eaten. Wall Street analysts anticipate that in fiscal 2024, Pfizer will bring in $64 billion of revenue and AbbVie will bring in $53 billion -- and so capturing a decent share of that market could easily drive significant growth. | Wall Street analysts anticipate that in fiscal 2024, Pfizer will bring in $64 billion of revenue and AbbVie will bring in $53 billion -- and so capturing a decent share of that market could easily drive significant growth. But UC isn't the only market where Pfizer and AbbVie are expected to do battle over the coming years. That puts the company on a collision course with AbbVie (NYSE: ABBV), the leader of the market for ulcerative colitis therapies for many years. | That puts the company on a collision course with AbbVie (NYSE: ABBV), the leader of the market for ulcerative colitis therapies for many years. But UC isn't the only market where Pfizer and AbbVie are expected to do battle over the coming years. In a worst-case scenario, it's possible that AbbVie might get its lunch eaten. |
22086.0 | 2023-10-30 00:00:00 UTC | Should First Trust Morningstar Dividend Leaders ETF (FDL) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-first-trust-morningstar-dividend-leaders-etf-fdl-be-on-your-investing-radar-8 | nan | nan | Launched on 03/09/2006, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $3.79 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 21.60% of the portfolio. Energy and Healthcare round out the top three.
Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 8.68% of total assets, followed by Chevron Corporation (CVX) and Verizon Communications Inc. (VZ).
The top 10 holdings account for about 56.81% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has lost about -10.54% so far this year and is down about -7.34% in the last one year (as of 10/30/2023). In the past 52-week period, it has traded between $31.58 and $38.26.
The ETF has a beta of 0.87 and standard deviation of 15.50% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Morningstar Dividend Leaders ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FDL is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard High Dividend Yield ETF (VYM) and the Vanguard Value ETF (VTV) track a similar index. While Vanguard High Dividend Yield ETF has $45.76 billion in assets, Vanguard Value ETF has $93.87 billion. VYM has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 8.68% of total assets, followed by Chevron Corporation (CVX) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/09/2006, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 8.68% of total assets, followed by Chevron Corporation (CVX) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/09/2006, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 8.68% of total assets, followed by Chevron Corporation (CVX) and Verizon Communications Inc. (VZ). Alternatives First Trust Morningstar Dividend Leaders ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 8.68% of total assets, followed by Chevron Corporation (CVX) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/09/2006, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. |
22087.0 | 2023-10-30 00:00:00 UTC | Why AbbVie Stock Was a Winner on Monday | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-was-a-winner-on-monday | nan | nan | Pharmaceutical company AbbVie (NYSE: ABBV) was a cure for the investor blues on Monday. Shares of the company rose more than 2% in price on an analyst's recommendation upgrade. AbbVie stock's resulting pop topped the bellwether S&P 500 index, which managed a comparatively light 1.2% increase on the day.
Barclays upgraded its recommendation to buy
That analyst was Barclays' Carter Gould, who, before market open, pushed up his AbbVie recommendation one peg to overweight (read: buy) from his previous tag of equalweight (hold). He also added a bit of coin to his price target; this is now $170 per share from the prior $160.
Gould's move comes one trading day after AbbVie unveiled its third-quarter results. While the pharmaceutical sector mainstay beat the consensus analyst estimates on both the top and bottom lines and lifted its 2023 guidance, investors traded out of the stock that day.
It wasn't easy to tease out why, given the generally good numbers posted by the company. Some investors might have been concerned with the recent arrival of biosimilar products to its blockbuster drug Humira, although this was entirely foretold and anticipated. Certain drug categories posted uninspiring figures, particularly the immunology category that includes Humira -- its sales slumped by over 11% year over year.
Prognosticator feels that the sell-off was not reasonable
Gould's foundational argument, which certainly has merit given the strength of AbbVie's portfolio and its well-stuffed pipeline, is that the Friday fire sale in the stock was unjustified. In his view, it was due to "external sector dynamics, against a backdrop of Immunology momentum and commentary de-risking 2024 pricing."
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie stock's resulting pop topped the bellwether S&P 500 index, which managed a comparatively light 1.2% increase on the day. Prognosticator feels that the sell-off was not reasonable Gould's foundational argument, which certainly has merit given the strength of AbbVie's portfolio and its well-stuffed pipeline, is that the Friday fire sale in the stock was unjustified. Pharmaceutical company AbbVie (NYSE: ABBV) was a cure for the investor blues on Monday. | AbbVie stock's resulting pop topped the bellwether S&P 500 index, which managed a comparatively light 1.2% increase on the day. Barclays upgraded its recommendation to buy That analyst was Barclays' Carter Gould, who, before market open, pushed up his AbbVie recommendation one peg to overweight (read: buy) from his previous tag of equalweight (hold). Pharmaceutical company AbbVie (NYSE: ABBV) was a cure for the investor blues on Monday. | Barclays upgraded its recommendation to buy That analyst was Barclays' Carter Gould, who, before market open, pushed up his AbbVie recommendation one peg to overweight (read: buy) from his previous tag of equalweight (hold). 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. Pharmaceutical company AbbVie (NYSE: ABBV) was a cure for the investor blues on Monday. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Pharmaceutical company AbbVie (NYSE: ABBV) was a cure for the investor blues on Monday. AbbVie stock's resulting pop topped the bellwether S&P 500 index, which managed a comparatively light 1.2% increase on the day. |
22088.0 | 2023-10-30 00:00:00 UTC | Morgan Stanley Maintains Abbvie (ABBV) Overweight Recommendation | ABBV | https://www.nasdaq.com/articles/morgan-stanley-maintains-abbvie-abbv-overweight-recommendation-2 | nan | nan | Fintel reports that on October 30, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation.
Analyst Price Forecast Suggests 24.75% Upside
As of October 5, 2023, the average one-year price target for Abbvie is 173.32. The forecasts range from a low of 136.35 to a high of $215.25. The average price target represents an increase of 24.75% from its latest reported closing price of 138.93.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, an increase of 0.17%. The projected annual non-GAAP EPS is 11.88.
Abbvie Declares $1.48 Dividend
On September 8, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of October 13, 2023 will receive the payment on November 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $138.93 / share, the stock's dividend yield is 4.26%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.74%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=236).
The current dividend yield is 0.62 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.68. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.31%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4403 funds or institutions reporting positions in Abbvie. This is a decrease of 66 owner(s) or 1.48% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.72%, a decrease of 11.33%. Total shares owned by institutions decreased in the last three months by 1.24% to 1,391,123K shares.
The put/call ratio of ABBV is 0.68, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 56,773K shares representing 3.22% ownership of the company. In it's prior filing, the firm reported owning 57,899K shares, representing a decrease of 1.98%. The firm decreased its portfolio allocation in ABBV by 26.06% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 55,028K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 54,775K shares, representing an increase of 0.46%. The firm decreased its portfolio allocation in ABBV by 21.64% over the last quarter.
Capital International Investors holds 43,153K shares representing 2.44% ownership of the company. In it's prior filing, the firm reported owning 42,748K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in ABBV by 19.96% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 42,007K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 41,266K shares, representing an increase of 1.76%. The firm decreased its portfolio allocation in ABBV by 22.06% over the last quarter.
Geode Capital Management holds 34,953K shares representing 1.98% ownership of the company. In it's prior filing, the firm reported owning 34,045K shares, representing an increase of 2.60%. The firm decreased its portfolio allocation in ABBV by 21.49% over the last quarter.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Fintel reports that on October 30, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 24.75% Upside As of October 5, 2023, the average one-year price target for Abbvie is 173.32. | Fintel reports that on October 30, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 24.75% Upside As of October 5, 2023, the average one-year price target for Abbvie is 173.32. The projected annual revenue for Abbvie is 55,229MM, an increase of 0.17%. | Abbvie Declares $1.48 Dividend On September 8, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Fintel reports that on October 30, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 24.75% Upside As of October 5, 2023, the average one-year price target for Abbvie is 173.32. | Fintel reports that on October 30, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 24.75% Upside As of October 5, 2023, the average one-year price target for Abbvie is 173.32. The projected annual revenue for Abbvie is 55,229MM, an increase of 0.17%. |
22089.0 | 2023-10-30 00:00:00 UTC | 2 No-Brainer Dividend Stocks to Buy This Week | ABBV | https://www.nasdaq.com/articles/2-no-brainer-dividend-stocks-to-buy-this-week | nan | nan | Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-than-average returns because of their underlying value proposition -- not their potential to deliver consistent levels of passive income.
Which undervalued dividend stocks are worth buying right now? Following the latest round of corporate earnings, AbbVie (NYSE: ABBV) and Altria (NYSE: MO) both come across as highly attractive buys as a result of their hefty yields and core value propositions. Read on to find out more about these top-shelf dividend stocks.
Image source: Getty Images.
AbbVie: A 4.49% yield
AbbVie is a large-cap pharma company best known for its powerhouse immunology drug, Humira. Because of Humira's strong performance and profitability, AbbVie has been able to reward its shareholders with generous dividend increases since its spinoff from Abbott Laboratories in 2013. Currently, AbbVie pays an annualized dividend of $6.20 per share, which translates to a 4.49% yield at the current share price.
It hasn't been all sunshine and rainbows for the drugmaker this year, however. Humira and the blockbuster blood cancer drug, Imbruvica, have both been losing market share in 2023. As a result, the company's annual sales are on track to decline over the course of both 2023 and 2024.
On the bright side, management expects the company to return to modest single-digit revenue growth by 2025, and maintain this trend for the rest of the decade. Management's turnaround thesis stems, in part, from the impressive sales trajectory of the company's newer immunology drugs, Rinvoq and Skyrizi.
Although AbbVie may have to unearth a hidden gem on the merger-and-acquisition scene to shore up its long-term financial projection, the company's top-shelf management team arguably deserves the benefit of the doubt on this matter. After all, the company has hit on a few successful bolt-on acquisitions in recent years.
So with AbbVie's stock trading a paltry 12.8 times projected earnings, it might be a good idea to start to build a position in this Dividend King or add to an already existing position.
Altria: A 9.93% yield
Like AbbVie, American tobacco giant Altria hasn't been a winner for shareholders in 2023. Thanks to an unfavorable combination of declining sales for its premium cigarette brands such as Marlboro and competition from illegal flavored e-vapor products, Altria's shares have shed 14% of their value this year.
This double-digit decline, though, may represent a compelling entry point for long-term investors. Three key reasons underlie this point.
First off, Altria has been working diligently to diversify beyond traditional tobacco categories such as cigarettes, cigars, and moist smokeless tobacco. To wit, the company has been busy building up its electronic nicotine product offerings, along with its oral nicotine pouch franchise, in 2023.
Second, Altria's shares are trading at a near-historic low from a projected earnings standpoint: 7.72. While it's true that the tobacco industry is shrinking at a rapid clip, and smokers are cutting back on premium brands in response to inflation this year, Altria remains extremely profitable. Moreover, it has the massive scale necessary to successfully launch into tobacco-adjacent product categories to keep the business growing in the years ahead.
Third, Altria is an extremely shareholder-friendly company, evinced by its sky-high dividend year of almost 10%, its 54-year history of consecutive dividend raises, and regular share buybacks. On this last point, the company has reduced its outstanding share count by nearly 40% since 1990.
MO Average Diluted Shares Outstanding (Quarterly) data by YCharts
In all, Altria definitely qualifies as a company in transition. But its strong free cash flows, investments in a smokeless future, and shareholder-friendly policies make its shares a no-brainer buy for long-term income investors.
10 stocks we like better than AbbVie
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although AbbVie may have to unearth a hidden gem on the merger-and-acquisition scene to shore up its long-term financial projection, the company's top-shelf management team arguably deserves the benefit of the doubt on this matter. Following the latest round of corporate earnings, AbbVie (NYSE: ABBV) and Altria (NYSE: MO) both come across as highly attractive buys as a result of their hefty yields and core value propositions. AbbVie: A 4.49% yield AbbVie is a large-cap pharma company best known for its powerhouse immunology drug, Humira. | Following the latest round of corporate earnings, AbbVie (NYSE: ABBV) and Altria (NYSE: MO) both come across as highly attractive buys as a result of their hefty yields and core value propositions. Although AbbVie may have to unearth a hidden gem on the merger-and-acquisition scene to shore up its long-term financial projection, the company's top-shelf management team arguably deserves the benefit of the doubt on this matter. AbbVie: A 4.49% yield AbbVie is a large-cap pharma company best known for its powerhouse immunology drug, Humira. | So with AbbVie's stock trading a paltry 12.8 times projected earnings, it might be a good idea to start to build a position in this Dividend King or add to an already existing position. Following the latest round of corporate earnings, AbbVie (NYSE: ABBV) and Altria (NYSE: MO) both come across as highly attractive buys as a result of their hefty yields and core value propositions. AbbVie: A 4.49% yield AbbVie is a large-cap pharma company best known for its powerhouse immunology drug, Humira. | Altria: A 9.93% yield Like AbbVie, American tobacco giant Altria hasn't been a winner for shareholders in 2023. Following the latest round of corporate earnings, AbbVie (NYSE: ABBV) and Altria (NYSE: MO) both come across as highly attractive buys as a result of their hefty yields and core value propositions. AbbVie: A 4.49% yield AbbVie is a large-cap pharma company best known for its powerhouse immunology drug, Humira. |
22090.0 | 2023-10-30 00:00:00 UTC | S&P 500 Movers: RVTY, WDC | ABBV | https://www.nasdaq.com/articles/sp-500-movers%3A-rvty-wdc | nan | nan | In early trading on Monday, shares of Western Digital topped the list of the day's best performing components of the S&P 500 index, trading up 10.3%. Year to date, Western Digital registers a 36.2% gain.
And the worst performing S&P 500 component thus far on the day is Revvity trading down 17.0%. Revvity is lower by about 42.1% looking at the year to date performance.
Two other components making moves today are ON Semiconductor, trading down 15.4%, and AbbVie, trading up 3.8% on the day.
VIDEO: S&P 500 Movers: RVTY, WDC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two other components making moves today are ON Semiconductor, trading down 15.4%, and AbbVie, trading up 3.8% on the day. Year to date, Western Digital registers a 36.2% gain. And the worst performing S&P 500 component thus far on the day is Revvity trading down 17.0%. | Two other components making moves today are ON Semiconductor, trading down 15.4%, and AbbVie, trading up 3.8% on the day. In early trading on Monday, shares of Western Digital topped the list of the day's best performing components of the S&P 500 index, trading up 10.3%. Year to date, Western Digital registers a 36.2% gain. | Two other components making moves today are ON Semiconductor, trading down 15.4%, and AbbVie, trading up 3.8% on the day. In early trading on Monday, shares of Western Digital topped the list of the day's best performing components of the S&P 500 index, trading up 10.3%. And the worst performing S&P 500 component thus far on the day is Revvity trading down 17.0%. | Two other components making moves today are ON Semiconductor, trading down 15.4%, and AbbVie, trading up 3.8% on the day. In early trading on Monday, shares of Western Digital topped the list of the day's best performing components of the S&P 500 index, trading up 10.3%. And the worst performing S&P 500 component thus far on the day is Revvity trading down 17.0%. |
22091.0 | 2023-10-29 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-48 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: FAIL
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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Factor-Based Stock Portfolios
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22092.0 | 2023-10-27 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-18 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top Healthcare Stocks
Dividend Aristocrats2023
Wide Moat Stocks2023
High Insider Ownership Stocks
Factor-Based Stock Portfolios
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22093.0 | 2023-10-27 00:00:00 UTC | AbbVie Q3 23 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q3-23-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 27, 2023, to discuss Q3 23 earnings results.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 27, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 27, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 27, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 27, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
22094.0 | 2023-10-27 00:00:00 UTC | AbbVie raises profit forecast after Humira, newer drugs drive results beat | ABBV | https://www.nasdaq.com/articles/abbvie-raises-profit-forecast-after-humira-newer-drugs-drive-results-beat | nan | nan | Adds shares in paragraph 2
Oct 27 (Reuters) - AbbVie ABBV.N on Friday raised its annual profit forecast after beating quarterly earnings estimates, helped by a lower-than-feared drop in sales of its blockbuster arthritis drug, Humira, and strong demand for newer drugs.
The results and forecast lifted AbbVie's shares 2% in premarket trade.
Investors have been closely scrutinizing the erosion of Humira's sales following the entry of over half a dozen biosimilars this year, including those from Sandoz SDZ.S, Amgen AMGN.O and German drugmaker Boehringer Ingelheim.
Despite those biosimilars, Humira has maintained favorable positions on insurance drug coverage lists. AbbVie in July trimmed its 2023 view for Humira sales erosion to 35%, from 37% earlier.
Unlike chemical drugs that can be copied and sold as generics at a huge discount once patents lapse, complex biologic medicines like Humira are made from living cells that cannot be exactly duplicated. Their close alternatives are called biosimilars.
Humira's global sales fell 36.2% to $3.55 billion in the third quarter, but exceeded Wall Street estimates of $3.48 billion, according to LSEG data.
AbbVie has been seeking to expand the use of newer immunology drugs Skyrizi and Rinvoq as it banks on them to make up for the expected drop in Humira sales.
Skyrizi and Rinvoq generated global sales of $2.13 billion and $1.11 billion respectively, ahead of analyst expectations of $2.10 billion and $1.02 billion.
Cancer drug Imbruvica's sales of $908 million also beat estimates of $863 million. AbbVie reported $13.93 billion in quarterly revenue, beating estimates of $13.71 billion.
It reported an adjusted profit of $2.95 per share, versus estimates of $2.86 per share.
The company now expects 2023 adjusted profit per share of between $11.19 and $11.23, compared with $10.86 and $11.06 it forecast earlier this month.
AbbVie also raised its 2024 adjusted earnings per share outlook to a minimum of $11 from at least $10.70.
(Reporting by Leroy Leo and Christy Santhosh in Bengaluru; Editing by Maju Samuel)
((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has been seeking to expand the use of newer immunology drugs Skyrizi and Rinvoq as it banks on them to make up for the expected drop in Humira sales. Adds shares in paragraph 2 Oct 27 (Reuters) - AbbVie ABBV.N on Friday raised its annual profit forecast after beating quarterly earnings estimates, helped by a lower-than-feared drop in sales of its blockbuster arthritis drug, Humira, and strong demand for newer drugs. The results and forecast lifted AbbVie's shares 2% in premarket trade. | Adds shares in paragraph 2 Oct 27 (Reuters) - AbbVie ABBV.N on Friday raised its annual profit forecast after beating quarterly earnings estimates, helped by a lower-than-feared drop in sales of its blockbuster arthritis drug, Humira, and strong demand for newer drugs. AbbVie reported $13.93 billion in quarterly revenue, beating estimates of $13.71 billion. The results and forecast lifted AbbVie's shares 2% in premarket trade. | Adds shares in paragraph 2 Oct 27 (Reuters) - AbbVie ABBV.N on Friday raised its annual profit forecast after beating quarterly earnings estimates, helped by a lower-than-feared drop in sales of its blockbuster arthritis drug, Humira, and strong demand for newer drugs. The results and forecast lifted AbbVie's shares 2% in premarket trade. AbbVie in July trimmed its 2023 view for Humira sales erosion to 35%, from 37% earlier. | Adds shares in paragraph 2 Oct 27 (Reuters) - AbbVie ABBV.N on Friday raised its annual profit forecast after beating quarterly earnings estimates, helped by a lower-than-feared drop in sales of its blockbuster arthritis drug, Humira, and strong demand for newer drugs. AbbVie reported $13.93 billion in quarterly revenue, beating estimates of $13.71 billion. The results and forecast lifted AbbVie's shares 2% in premarket trade. |
22095.0 | 2023-10-27 00:00:00 UTC | AbbVie Raises 2023 Adj. EPS Guidance; Announces 2024 Dividend Increase | ABBV | https://www.nasdaq.com/articles/abbvie-raises-2023-adj.-eps-guidance-announces-2024-dividend-increase | nan | nan | (RTTNews) - AbbVie (ABBV) said the company is raising adjusted EPS guidance for the full year 2023 from $10.86 - $11.06 to $11.19 - $11.23, which included an unfavorable impact of $0.27 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2023.
AbbVie increased its adjusted EPS guidance floor for the full year 2024 from $10.70 to $11.00, which excludes any impact from acquired IPR&D and milestones. As a result, AbbVie does not expect adjusted EPS for 2024 to be below $11.00 per share. The company will issue formal 2024 adjusted EPS guidance range in conjunction with fourth quarter results.
Third quarter bottom line came in at $1.78 billion, or $1.00 per share compared with $3.95 billion, or $2.21 per share, a year ago. Adjusted EPS was $2.95, a decrease of 19.4 percent. The results included an unfavorable impact of $0.04 per share related to acquired IPR&D and milestones expense. Analysts on average had expected the company to earn $2.70 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter declined to $13.93 billion from $14.81 billion last year. Revenues decreased 6.0 percent on a reported basis and 5.8 percent on an operational basis. Analysts on average had estimated $12.92 billion in revenue.
AbbVie said its board declared an increase in the company's quarterly cash dividend from $1.48 per share to $1.55 per share beginning with the dividend payable on February 15, 2024 to shareholders of record as of January 16, 2024. This reflects an increase of approximately 4.7 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said the company is raising adjusted EPS guidance for the full year 2023 from $10.86 - $11.06 to $11.19 - $11.23, which included an unfavorable impact of $0.27 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2023. AbbVie increased its adjusted EPS guidance floor for the full year 2024 from $10.70 to $11.00, which excludes any impact from acquired IPR&D and milestones. As a result, AbbVie does not expect adjusted EPS for 2024 to be below $11.00 per share. | (RTTNews) - AbbVie (ABBV) said the company is raising adjusted EPS guidance for the full year 2023 from $10.86 - $11.06 to $11.19 - $11.23, which included an unfavorable impact of $0.27 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2023. AbbVie increased its adjusted EPS guidance floor for the full year 2024 from $10.70 to $11.00, which excludes any impact from acquired IPR&D and milestones. As a result, AbbVie does not expect adjusted EPS for 2024 to be below $11.00 per share. | (RTTNews) - AbbVie (ABBV) said the company is raising adjusted EPS guidance for the full year 2023 from $10.86 - $11.06 to $11.19 - $11.23, which included an unfavorable impact of $0.27 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2023. AbbVie said its board declared an increase in the company's quarterly cash dividend from $1.48 per share to $1.55 per share beginning with the dividend payable on February 15, 2024 to shareholders of record as of January 16, 2024. AbbVie increased its adjusted EPS guidance floor for the full year 2024 from $10.70 to $11.00, which excludes any impact from acquired IPR&D and milestones. | AbbVie increased its adjusted EPS guidance floor for the full year 2024 from $10.70 to $11.00, which excludes any impact from acquired IPR&D and milestones. As a result, AbbVie does not expect adjusted EPS for 2024 to be below $11.00 per share. (RTTNews) - AbbVie (ABBV) said the company is raising adjusted EPS guidance for the full year 2023 from $10.86 - $11.06 to $11.19 - $11.23, which included an unfavorable impact of $0.27 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter 2023. |
22096.0 | 2023-10-27 00:00:00 UTC | AbbVie (ABBV) Q3 Earnings and Revenues Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q3-earnings-and-revenues-beat-estimates | nan | nan | AbbVie (ABBV) came out with quarterly earnings of $2.95 per share, beating the Zacks Consensus Estimate of $2.86 per share. This compares to earnings of $3.66 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 3.15%. A quarter ago, it was expected that this drugmaker would post earnings of $2.79 per share when it actually produced earnings of $2.91, delivering a surprise of 4.30%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.93 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.65%. This compares to year-ago revenues of $14.81 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AbbVie shares have lost about 10.2% since the beginning of the year versus the S&P 500's gain of 7.8%.
What's Next for AbbVie?
While AbbVie has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AbbVie: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.83 on $13.77 billion in revenues for the coming quarter and $11.03 on $53.57 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the bottom 10% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Pfizer (PFE), is yet to report results for the quarter ended September 2023. The results are expected to be released on October 31.
This drugmaker is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -110.7%. The consensus EPS estimate for the quarter has been revised 95.2% lower over the last 30 days to the current level.
Pfizer's revenues are expected to be $13.96 billion, down 38.3% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) came out with quarterly earnings of $2.95 per share, beating the Zacks Consensus Estimate of $2.86 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.93 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.65%. AbbVie shares have lost about 10.2% since the beginning of the year versus the S&P 500's gain of 7.8%. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.93 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.65%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) came out with quarterly earnings of $2.95 per share, beating the Zacks Consensus Estimate of $2.86 per share. | AbbVie (ABBV) came out with quarterly earnings of $2.95 per share, beating the Zacks Consensus Estimate of $2.86 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.93 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.65%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie (ABBV) came out with quarterly earnings of $2.95 per share, beating the Zacks Consensus Estimate of $2.86 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.93 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.65%. AbbVie shares have lost about 10.2% since the beginning of the year versus the S&P 500's gain of 7.8%. |
22097.0 | 2023-10-27 00:00:00 UTC | AbbVie (ABBV) Q3 Earnings Beat, Shares Down Despite Raised View | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q3-earnings-beat-shares-down-despite-raised-view | nan | nan | AbbVie Inc. ABBV reported adjusted earnings of $2.95 per share for third-quarter 2023, beating the Zacks Consensus Estimate of $2.86. The reported earnings also exceeded the guidance of $2.76-$2.86. However, earnings declined 19.4% year over year.
ABBV’s revenues of $13.93 billion beat the Zacks Consensus Estimate of $13.70 billion. Sales declined 6.0% year over year on a reported basis and 5.8% on an operational basis. The downside was caused by lower sales of Humira, Imbruvica and Aesthetics products, which was partially offset by the rise in product sales of key drugs like Rinvoq, Skyrizi, Vraylar, Ubrelvy and Qulipta.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug, Humira, recorded a year-over-year sales decline of 36.2% to $3.55 billion on an operational basis. Sales in the United States declined 39.1% to $3.02 billion, while ex-U.S. market sales were down 12.2% on an operating basis to $527 million. The drug’s sales beatthe Zacks Consensus Estimate and our model estimates pegged at $3.50 billion and $3.49 billion, respectively.
This substantial decline in Humira sales was due to the drug’s recent loss of exclusivity in the United States. Earlierthis January, Amgen AMGN announced the launch of the first Humira biosimilar in the United States, called Amjevita.
Like Amgen, several other companies like Boehringer Ingelheim, Coherus BioSciences and Sandoz SDZNY have also started marketing their own Humira biosimilars since the onset of this month. Sandoz markets its Humira biosimilar under the trade name Hyrimoz. Like Amgen and Sandoz, more generic drugmakers are planning to launch their own Humira biosimilars throughout this year. These subsequent launches are expected to erode Humira’s sales in subsequent quarters. The drug lost its exclusivity in ex-U.S. territories following the launch of generics in 2018.
Net revenues from Rinvoq in the third quarter were $1.11 billion, up 59.6% on an operational basis year over year. The upside can be attributed to label expansions to the drug to include new patient populations in recent quarters. Rinvoq sales beat the Zacks Consensus Estimate and our model estimates of $1.04 billion and $1.03 billion, respectively.
Net revenues recorded from Skyrizi in the second quarter were $2.13 billion, up 51.9% on an operational basis year over year. This uptick in sales is due to label expansions to the drug to include new patient populations in recent quarters. Though Skyrizi sales beat our model estimates of $2.10 billion, it marginally missed the Zacks Consensus Estimate of $2.14 billion.
Sales from the neuroscience portfolio increased 22.0% on an operational basis to $2.04 billion, driven by higher sales of the depression drug Vraylar and recently approved migraine drugs Ubrelvy and Qulipta. Neuroscience sales figures beat the Zacks Consensus Estimate and our model estimate of $1.97 billion and $1.98 billion, respectively.
While Botox Therapeutic sales rose 7.4% to $748 million, sales of Vraylar increased 35.4% to $751 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $233 million, up 45.6% year over year.
The recently launched Qulipta generated $132 million in product revenues compared with $96 million in second-quarter 2023.
AbbVie’s oncology/hematology sales declined 8.6% on an operational basis to $1.51 billion in the quarter, as growth of Venclexta sales was more than offset by lower sales of Imbruvica. The oncology/hematology sales figure beat the Zacks Consensus Estimate and our model estimates, both of which were pegged at $1.44 billion.
Third-quarter net revenues from Imbruvica were $908 million, down 20.0% year over year. AbbVie markets the drug in partnership with Johnson & Johnson JNJ. The company shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $678 million, down 20.2% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug declined 19.6% to $230 million.
AbbVie’s leukemia drug Venclexta generated revenues of $590 million in the reported quarter, reflecting 14.0% year-over-year growth.
In May, the FDA approved AbbVie’s lymphoma drug Epkinly, which is marketed in collaboration with Genmab. Per the terms of the agreement, AbbVie shares profits earned from Epkinly sales in the United States and Japan while holding exclusive rights for other global territories. The drug’s sales, which reflects AbbVie’s share of profit from U.S. revenues, were $14 million.
AbbVie’s aesthetics portfolio sales were down 4.0% on an operational basis to $1.24 billion due to declining product sales. Sales of Juvederm declined 7.9% on an operating basis to $321 million, while Botox Cosmetic sales fell 1.7% to $620 million.
Eye care portfolio sales declined 2.4% on an operational basis to $605 million. Sales of Ozurdex, a key drug in the portfolio, rose 12.8% year over year to $120 million.
Shares of AbbVie were down 5.7% in pre-market trading on Oct 27, likely due to a softer sales performance of Skyrizi. In the year so far, the stock has lost 10.2% against the industry’s 5.0% rise.
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Cost Discussion
Adjusted SG&A expenses rose 7.8% to $3.33 billion, while adjusted R&D expenses were $1.72 billion in the third quarter, up 7.0% year over year. The adjusted operating margin contributed 46.7% to sales.
Raises Guidance for 2023 & 2024
AbbVie raised its earnings per share (“EPS”) guidance for 2023. The company expects adjusted EPS in the range of $11.19-$11.23, up from the previously provided EPS guidance of $10.86-$11.06.
AbbVie also lifted its EPS guidance floor for the full year 2024. The company now expects adjusted EPS to be at least $11.00 per share, up from the previously-issued guidance of $10.70.
Our Take
AbbVie’s third-quarter results were better than expected, with the top and the bottom line beating the consensus mark. The lower-than-expected drop in Humira sales, coupled with strong demand for newer approved drugs, also helped the company raise its profit outlook for this year as well as the next one.
The raised outlook was also likely one of the reasons for a rise in quarterly cash dividends by 4.7% to $1.55 per share, beginning with the first dividend payable on Feb 25, 2024.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Per the terms of the agreement, AbbVie shares profits earned from Epkinly sales in the United States and Japan while holding exclusive rights for other global territories. AbbVie Inc. ABBV reported adjusted earnings of $2.95 per share for third-quarter 2023, beating the Zacks Consensus Estimate of $2.86. ABBV’s revenues of $13.93 billion beat the Zacks Consensus Estimate of $13.70 billion. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Sandoz Group AG Sponsored ADR (SDZNY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV reported adjusted earnings of $2.95 per share for third-quarter 2023, beating the Zacks Consensus Estimate of $2.86. ABBV’s revenues of $13.93 billion beat the Zacks Consensus Estimate of $13.70 billion. | AbbVie’s oncology/hematology sales declined 8.6% on an operational basis to $1.51 billion in the quarter, as growth of Venclexta sales was more than offset by lower sales of Imbruvica. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Sandoz Group AG Sponsored ADR (SDZNY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV reported adjusted earnings of $2.95 per share for third-quarter 2023, beating the Zacks Consensus Estimate of $2.86. | AbbVie Inc. ABBV reported adjusted earnings of $2.95 per share for third-quarter 2023, beating the Zacks Consensus Estimate of $2.86. The drug’s sales, which reflects AbbVie’s share of profit from U.S. revenues, were $14 million. ABBV’s revenues of $13.93 billion beat the Zacks Consensus Estimate of $13.70 billion. |
22098.0 | 2023-10-27 00:00:00 UTC | High-yield, deep-value AbbVie fell off the patent cliff and lived | ABBV | https://www.nasdaq.com/articles/high-yield-deep-value-abbvie-fell-off-the-patent-cliff-and-lived | nan | nan | Shares of AbbVie Inc. (NYSE: ABBV) have been under pressure for nearly two years because of mounting fears about the patent cliff. The patent cliff impacted the company’s results but has done nothing to change its financial health, position, long-term outlook or ability to deliver value for investors. The stock discounted to deep-value levels, paying about a 4.7% dividend yield, near the top of the historical range, and offers an opportunity for income investors.
AbbVie’s growth machine solid; Humira sales still strong
Humira is a concern for AbbVie and its investors, but the signals from the data suggest the worst-case scenario is far from reality. Humira sales hit a little more than 36% for the quarter, which is hundreds of basis points less than expected and offset by strength in the non-Humira growth engine.
Skyrizi, Rinvoq, Botox and Vraylar all posted significant growth. The pillars of the engine, Skyrizi and Rinvoq, have reached blockbuster status on a 52% and 60% year-over-year (YOY) gain. Skyrizi is at a double-blockbuster level with sales of $2.126 billion and should grow 7x before topping out. Humira still brings in over $3.5 billion and will be a money-maker long into the future.
So, AbbVie posted a 6% decline in YOY revenue, but it beat the Marketbeat.com consensus estimate by 160 basis points and is compounded by margin strength.
Immunology, which includes Humira, contracted by 11.3%, while oncology declined by 8.4%. Neurology, which includes expanding uses of Botox Therapeutic and Vraylar, grew by 22.1%. The aesthetic segment, including Botox Cosmetic, contracted by 5%.
Margin contracted compared to last year, but not as much as expected, including unexpected impairments. The company reported $2.95 in adjusted EPS, down 19.4% compared to last year, but beat consensus by 270 basis points, including the four-cent impairment.
The best news of all is the guidance. AbbVie raised its guidance for adjusted EPS in 2023 to a minimum of $11.19 compared to the prior max of $11.06 and the consensus analyst estimate of $11.05. The company also lifted the floor for earnings by 30 cents to $11, or just shy of consensus. The 2024 guidance is weak but still solid and may be cautious given the trends in 2023.
The analysts leading AbbVie’s market higher
As mixed as the analysts' AbbVie activity this year, the takeaway from the data is bullish for stock prices. The consensus sentiment slipped from "moderate buy" to "hold/moderate buy," but the price target trends higher.
The price target is up compared to last year, last quarter and last month and will likely trend higher now that results are in. The consensus target of $166 implies a 15% upside for this Dividend Aristocrat, and the high end of the range is another 18% above that. Moving to the consensus target puts the market in reach of the all-time high; moving to the analysts' high targets puts the market 10% above the all-time high.
The company shows a mixed technical outlook. The market is trapped in a range and heading lower following the Q3 results. The caveat is that a bottom for the action is near and may be confirmed within the next few days to weeks. In this scenario, ABBV will confirm support or rebound from near $135 and continue consolidating within its range until the market moves higher. If not, ABBV could move to $120 or lower, presenting a deeper value and higher yield.
The article "High-yield, deep-value AbbVie fell off the patent cliff and lived" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of AbbVie Inc. (NYSE: ABBV) have been under pressure for nearly two years because of mounting fears about the patent cliff. AbbVie’s growth machine solid; Humira sales still strong Humira is a concern for AbbVie and its investors, but the signals from the data suggest the worst-case scenario is far from reality. So, AbbVie posted a 6% decline in YOY revenue, but it beat the Marketbeat.com consensus estimate by 160 basis points and is compounded by margin strength. | So, AbbVie posted a 6% decline in YOY revenue, but it beat the Marketbeat.com consensus estimate by 160 basis points and is compounded by margin strength. Shares of AbbVie Inc. (NYSE: ABBV) have been under pressure for nearly two years because of mounting fears about the patent cliff. AbbVie’s growth machine solid; Humira sales still strong Humira is a concern for AbbVie and its investors, but the signals from the data suggest the worst-case scenario is far from reality. | AbbVie’s growth machine solid; Humira sales still strong Humira is a concern for AbbVie and its investors, but the signals from the data suggest the worst-case scenario is far from reality. The analysts leading AbbVie’s market higher As mixed as the analysts' AbbVie activity this year, the takeaway from the data is bullish for stock prices. Shares of AbbVie Inc. (NYSE: ABBV) have been under pressure for nearly two years because of mounting fears about the patent cliff. | The analysts leading AbbVie’s market higher As mixed as the analysts' AbbVie activity this year, the takeaway from the data is bullish for stock prices. Shares of AbbVie Inc. (NYSE: ABBV) have been under pressure for nearly two years because of mounting fears about the patent cliff. AbbVie’s growth machine solid; Humira sales still strong Humira is a concern for AbbVie and its investors, but the signals from the data suggest the worst-case scenario is far from reality. |
22099.0 | 2023-10-27 00:00:00 UTC | Compared to Estimates, AbbVie (ABBV) Q3 Earnings: A Look at Key Metrics | ABBV | https://www.nasdaq.com/articles/compared-to-estimates-abbvie-abbv-q3-earnings%3A-a-look-at-key-metrics | nan | nan | For the quarter ended September 2023, AbbVie (ABBV) reported revenue of $13.93 billion, down 6% over the same period last year. EPS came in at $2.95, compared to $3.66 in the year-ago quarter.
The reported revenue represents a surprise of +1.65% over the Zacks Consensus Estimate of $13.7 billion. With the consensus EPS estimate being $2.86, the EPS surprise was +3.15%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Revenue- Immunology- Skyrizi- International: $251 million versus $280.66 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +42.6% change.
Net Revenue- Immunology- Skyrizi- US: $1.88 billion compared to the $1.86 billion average estimate based on six analysts. The reported number represents a change of +53.6% year over year.
Net Revenue- Rinvoq- International: $309 million versus the six-analyst average estimate of $284.61 million. The reported number represents a year-over-year change of +62.6%.
Net Revenue- Rinvoq- US: $801 million versus $747.16 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +58.6% change.
Net Revenue- Venclexta: $590 million compared to the $563.81 million average estimate based on six analysts. The reported number represents a change of +14.6% year over year.
Net Revenue- Imbruvica: $908 million compared to the $876.37 million average estimate based on six analysts. The reported number represents a change of -20% year over year.
Net Revenue- Immunology- Skyrizi- Total: $2.13 billion versus the six-analyst average estimate of $2.14 billion. The reported number represents a year-over-year change of +52.2%.
Net Revenue- Mavyret: $370 million compared to the $356.50 million average estimate based on six analysts. The reported number represents a change of -3.4% year over year.
Net Revenue- Duodopa: $118 million compared to the $115.24 million average estimate based on six analysts. The reported number represents a change of +7.3% year over year.
Net Revenue- Creon: $305 million versus the six-analyst average estimate of $323.66 million. The reported number represents a year-over-year change of -9.2%.
Net Revenue- Humira: $3.55 billion compared to the $3.50 billion average estimate based on six analysts. The reported number represents a change of -36.2% year over year.
Net Revenue- Hematologic Oncology- Total: $1.51 billion versus $1.44 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -8.4% change.
View all Key Company Metrics for AbbVie here>>>
Shares of AbbVie have returned -4.6% over the past month versus the Zacks S&P 500 composite's -2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the quarter ended September 2023, AbbVie (ABBV) reported revenue of $13.93 billion, down 6% over the same period last year. Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Immunology- Skyrizi- International: $251 million versus $280.66 million estimated by six analysts on average. View all Key Company Metrics for AbbVie here>>> | Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Immunology- Skyrizi- International: $251 million versus $280.66 million estimated by six analysts on average. For the quarter ended September 2023, AbbVie (ABBV) reported revenue of $13.93 billion, down 6% over the same period last year. View all Key Company Metrics for AbbVie here>>> | Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Immunology- Skyrizi- International: $251 million versus $280.66 million estimated by six analysts on average. For the quarter ended September 2023, AbbVie (ABBV) reported revenue of $13.93 billion, down 6% over the same period last year. View all Key Company Metrics for AbbVie here>>> | For the quarter ended September 2023, AbbVie (ABBV) reported revenue of $13.93 billion, down 6% over the same period last year. Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Immunology- Skyrizi- International: $251 million versus $280.66 million estimated by six analysts on average. View all Key Company Metrics for AbbVie here>>> |
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