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22100.0 | 2023-10-27 00:00:00 UTC | Why AbbVie Stock Fell Today | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-fell-today | nan | nan | Shares of AbbVie (NYSE: ABBV) were down 5.4% as of 2:00 p.m. ET Friday, even after the pharmaceuticals giant announced slightly better-than-expected quarterly results and raised its full-year outlook.
For its third-quarter 2023, AbbVie's revenue declined 6% year over year (down 5.8% at constant currency) to $13.93 billion, translating to a 19.4% drop in adjusted (non-GAAP) earnings to $2.95 per share. Analysts, on average, were anticipating adjusted earnings of $2.87 per share on revenue of $13.71 billion.
Double-digit gains for AbbVie's non-Humira growth platform
AbbVie Chairman and CEO Richard Gonzalez called it "another quarter of outstanding results driven by accelerating performance across our non-Humira growth platform, which is demonstrating double-digit growth."
Delving deeper into AbbVie's results, sales from its immunology portfolio fell 11.3%, hurt primarily by a 36% decline in sales of arthritis and plaque psoriasis drug Humira following the launch of biosimilar rival treatments earlier this year. Meanwhile, revenue from AbbVie's oncology portfolio dropped 8.4% to $1.512 billion, and aesthetics portfolio sales -- including its cosmetic Botox sales -- dropped 4.7% to $1.239 billion.
Partially offsetting these declines was a 22.1% increase in sales from the company's neuroscience portfolio to $2.043 billion, led by 45.6% growth in migraine medicine Ubrelvy sales (to $233 million) and a 35.4% jump from bipolar treatment Vraylar (to $751 million).
AbbVie is raising its guidance and dividend
Looking ahead to its full-year 2023 outlook, AbbVie now expects adjusted earnings per share ranging from $11.19 to $11.23 (up from $10.86 to $11.06). The company also increased its guidance floor for full-year 2024 adjusted earnings by $0.30 per share to $11.00. Finally, AbbVie modestly raised its quarterly cash dividend by $0.07 per share to $1.55 (payable on Feb. 15, 2024, to shareholders of record as of Jan. 16, 2024).
In the end, perhaps the market is treating this as a "sell the news" event. Or maybe traders are lamenting the combination of the not-so-shocking decline in Humira sales, coupled with underwhelming results from AbbVie's oncology and aesthetics lines. But in my view, this beat-and-raise quarter held no big surprises. It might well turn out to be a buying opportunity for patient investors willing to bet on the continued outperformance of AbbVie's non-Humira growth platform.
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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. | Finally, AbbVie modestly raised its quarterly cash dividend by $0.07 per share to $1.55 (payable on Feb. 15, 2024, to shareholders of record as of Jan. 16, 2024). Or maybe traders are lamenting the combination of the not-so-shocking decline in Humira sales, coupled with underwhelming results from AbbVie's oncology and aesthetics lines. It might well turn out to be a buying opportunity for patient investors willing to bet on the continued outperformance of AbbVie's non-Humira growth platform. | For its third-quarter 2023, AbbVie's revenue declined 6% year over year (down 5.8% at constant currency) to $13.93 billion, translating to a 19.4% drop in adjusted (non-GAAP) earnings to $2.95 per share. Double-digit gains for AbbVie's non-Humira growth platform AbbVie Chairman and CEO Richard Gonzalez called it "another quarter of outstanding results driven by accelerating performance across our non-Humira growth platform, which is demonstrating double-digit growth." Meanwhile, revenue from AbbVie's oncology portfolio dropped 8.4% to $1.512 billion, and aesthetics portfolio sales -- including its cosmetic Botox sales -- dropped 4.7% to $1.239 billion. | Double-digit gains for AbbVie's non-Humira growth platform AbbVie Chairman and CEO Richard Gonzalez called it "another quarter of outstanding results driven by accelerating performance across our non-Humira growth platform, which is demonstrating double-digit growth." Meanwhile, revenue from AbbVie's oncology portfolio dropped 8.4% to $1.512 billion, and aesthetics portfolio sales -- including its cosmetic Botox sales -- dropped 4.7% to $1.239 billion. AbbVie is raising its guidance and dividend Looking ahead to its full-year 2023 outlook, AbbVie now expects adjusted earnings per share ranging from $11.19 to $11.23 (up from $10.86 to $11.06). | Meanwhile, revenue from AbbVie's oncology portfolio dropped 8.4% to $1.512 billion, and aesthetics portfolio sales -- including its cosmetic Botox sales -- dropped 4.7% to $1.239 billion. AbbVie is raising its guidance and dividend Looking ahead to its full-year 2023 outlook, AbbVie now expects adjusted earnings per share ranging from $11.19 to $11.23 (up from $10.86 to $11.06). Shares of AbbVie (NYSE: ABBV) were down 5.4% as of 2:00 p.m. |
22101.0 | 2023-10-27 00:00:00 UTC | AbbVie Enters Oversold Territory | ABBV | https://www.nasdaq.com/articles/abbvie-enters-oversold-territory-2 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABBV entered into oversold territory, changing hands as low as $137.01 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of AbbVie Inc, the RSI reading has hit 27.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 4.08% based upon the recent $145.20 share price.
A bullish investor could look at ABBV's 27.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
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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. | A bullish investor could look at ABBV's 27.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABBV entered into oversold territory, changing hands as low as $137.01 per share. | In the case of AbbVie Inc, the RSI reading has hit 27.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.5. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 4.08% based upon the recent $145.20 share price. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of AbbVie Inc, the RSI reading has hit 27.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.5. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 4.08% based upon the recent $145.20 share price. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABBV entered into oversold territory, changing hands as low as $137.01 per share. |
22102.0 | 2023-10-27 00:00:00 UTC | IWY, TSLA, LLY, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/iwy-tsla-lly-abbv%3A-etf-inflow-alert | 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 Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $111.8 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 45,150,000 to 45,900,000). Among the largest underlying components of IWY, in trading today Tesla Inc (Symbol: TSLA) is up about 1.4%, Eli Lilly (Symbol: LLY) is down about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 4.4%. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average:
Looking at the chart above, IWY's low point in its 52 week range is $117.10 per share, with $165.41 as the 52 week high point — that compares with a last trade of $150.25. 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 ».
Free Report: Top 8%+ Dividends (paid monthly)
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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High Dividend Stocks
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RAVE shares outstanding history
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 IWY, in trading today Tesla Inc (Symbol: TSLA) is up about 1.4%, Eli Lilly (Symbol: LLY) is down about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 4.4%. 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 IWY, in trading today Tesla Inc (Symbol: TSLA) is up about 1.4%, Eli Lilly (Symbol: LLY) is down about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 4.4%. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $117.10 per share, with $165.41 as the 52 week high point — that compares with a last trade of $150.25. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of IWY, in trading today Tesla Inc (Symbol: TSLA) is up about 1.4%, Eli Lilly (Symbol: LLY) is down about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 4.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $111.8 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 45,150,000 to 45,900,000). For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $117.10 per share, with $165.41 as the 52 week high point — that compares with a last trade of $150.25. | Among the largest underlying components of IWY, in trading today Tesla Inc (Symbol: TSLA) is up about 1.4%, Eli Lilly (Symbol: LLY) is down about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 4.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $111.8 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 45,150,000 to 45,900,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
22103.0 | 2023-10-26 00:00:00 UTC | Pre-Market Earnings Report for October 27, 2023 : XOM, CVX, ABBV, SNY, AON, CHTR, CL, PSX, IMO, XEL, LYB, TROW | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-october-27-2023-%3A-xom-cvx-abbv-sny-aon-chtr-cl-psx-imo-xel | nan | nan | The following companies are expected to report earnings prior to market open on 10/27/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending September 30, 2023. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.36. This value represents a 46.97% decrease compared to the same quarter last year. XOM missed the consensus earnings per share in the 2nd calendar quarter of 2023 by -3%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for XOM is 11.59 vs. an industry ratio of 7.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending September 30, 2023. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.68. This value represents a 33.81% decrease compared to the same quarter last year. CVX missed the consensus earnings per share in the 4th calendar quarter of 2022 by -1.68%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for CVX is 11.04 vs. an industry ratio of 7.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2023. The large cap pharmaceutical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.85. This value represents a 22.13% decrease compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 4.3%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ABBV is 13.19 vs. an industry ratio of 25.40.
Sanofi (SNY)is reporting for the quarter ending September 30, 2023. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.37. This value represents a 5.52% decrease compared to the same quarter last year. SNY missed the consensus earnings per share in the 4th calendar quarter of 2022 by -3.33%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for SNY is 12.26 vs. an industry ratio of 25.40.
Aon plc (AON)is reporting for the quarter ending September 30, 2023. The insurance brokers company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.23. This value represents a 10.40% increase compared to the same quarter last year. The last two quarters AON had negative earnings surprises; the latest report they missed by -2.13%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AON is 22.43 vs. an industry ratio of 19.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending September 30, 2023. The cable tv company's consensus earnings per share forecast from the 8 analysts that follow the stock is $7.73. This value represents a 4.74% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2023 Price to Earnings ratio for CHTR is 13.64 vs. an industry ratio of 7.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Colgate-Palmolive Company (CL)is reporting for the quarter ending September 30, 2023. The cleaning company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.80. This value represents a 8.11% increase compared to the same quarter last year. In the past year CL has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2023 Price to Earnings ratio for CL is 23.23 vs. an industry ratio of 22.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending September 30, 2023. The oil refining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $4.78. This value represents a 26.01% decrease compared to the same quarter last year. PSX missed the consensus earnings per share in the 4th calendar quarter of 2022 by -7.83%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for PSX is 6.97 vs. an industry ratio of 7.60.
Imperial Oil Limited (IMO)is reporting for the quarter ending September 30, 2023. The consensus earnings per share forecast from the 2 analysts that follow the stock is $1.74. IMO reported earnings of $2.22 per share for the same quarter a year ago; representing a a decrease of -21.62%. In the past year IMO has met analyst expectations once and beat the expectations the other three quarters. Xcel Energy Inc. (XEL)is reporting for the quarter ending September 30, 2023. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.27. This value represents a 7.63% increase compared to the same quarter last year. Zacks Investment Research reports that the 2023 Price to Earnings ratio for XEL is 17.75 vs. an industry ratio of 10.90, implying that they will have a higher earnings growth than their competitors in the same industry.
LyondellBasell Industries NV (LYB)is reporting for the quarter ending September 30, 2023. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.98. This value represents a 1.02% increase compared to the same quarter last year. LYB missed the consensus earnings per share in the 3rd calendar quarter of 2022 by -33.78%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for LYB is 10.59 vs. an industry ratio of 14.40.
T. Rowe Price Group, Inc. (TROW)is reporting for the quarter ending September 30, 2023. The finance/investment management company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.76. This value represents a 5.38% decrease compared to the same quarter last year. In the past year TROW has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 18.13%. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2023 Price to Earnings ratio for TROW is 13.05 vs. an industry ratio of 11.40, implying that they will have a higher earnings growth than their competitors in the same industry.
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. (ABBV)is reporting for the quarter ending September 30, 2023. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ABBV is 13.19 vs. an industry ratio of 25.40. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2023. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ABBV is 13.19 vs. an industry ratio of 25.40. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2023. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ABBV is 13.19 vs. an industry ratio of 25.40. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2023. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ABBV is 13.19 vs. an industry ratio of 25.40. |
22104.0 | 2023-10-26 00:00:00 UTC | Lilly's bowel disease drug gets US FDA nod for treatment in adults | ABBV | https://www.nasdaq.com/articles/lillys-bowel-disease-drug-gets-us-fda-nod-for-treatment-in-adults | nan | nan | Adds details about the approval and launch in paragraphs 2-7
Oct 26 (Reuters) - Eli Lilly and Co LLY.N said on Thursday that the U.S. health regulator had approved its drug for treating adults with moderate-to-severe active ulcerative colitis, a type of chronic inflammatory bowel disease.
The drug, which will be available in the United States in coming weeks and sold under brand name Omvoh, is among Lilly's potential growth drivers for this decade alongside tirzepatide for obesity, lebrikizumab for atopic dermatitis or eczema and pirtobrutinib for cancer.
The approval was based on data from late-stage studies of the drug that showed it helped improve the symptoms of the disease compared with placebo.
The latest approval comes after a setback in April, when The U.S. Food and Drug Administration (FDA) had declined clearance citing issues related to the proposed manufacturing of the treatment.
Lilly has received approval for the drug in Japan and the European Union this year.
Ulcerative colitis is a condition where abnormal reactions of the immune system cause inflammation and ulcers on the inner lining of the colon, possibly leading to diarrhea, passing of blood with stool and abdominal pain.
Shares of the company were up about 0.5% in extended trading on Thursday.
(Reporting by Pratik Jain and Khushi Mandowara in Benagluru; Editing by Anil D'Silva)
((Pratik.Jain@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. | The drug, which will be available in the United States in coming weeks and sold under brand name Omvoh, is among Lilly's potential growth drivers for this decade alongside tirzepatide for obesity, lebrikizumab for atopic dermatitis or eczema and pirtobrutinib for cancer. The approval was based on data from late-stage studies of the drug that showed it helped improve the symptoms of the disease compared with placebo. The latest approval comes after a setback in April, when The U.S. Food and Drug Administration (FDA) had declined clearance citing issues related to the proposed manufacturing of the treatment. | Adds details about the approval and launch in paragraphs 2-7 Oct 26 (Reuters) - Eli Lilly and Co LLY.N said on Thursday that the U.S. health regulator had approved its drug for treating adults with moderate-to-severe active ulcerative colitis, a type of chronic inflammatory bowel disease. Ulcerative colitis is a condition where abnormal reactions of the immune system cause inflammation and ulcers on the inner lining of the colon, possibly leading to diarrhea, passing of blood with stool and abdominal pain. (Reporting by Pratik Jain and Khushi Mandowara in Benagluru; Editing by Anil D'Silva) ((Pratik.Jain@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. | Adds details about the approval and launch in paragraphs 2-7 Oct 26 (Reuters) - Eli Lilly and Co LLY.N said on Thursday that the U.S. health regulator had approved its drug for treating adults with moderate-to-severe active ulcerative colitis, a type of chronic inflammatory bowel disease. The drug, which will be available in the United States in coming weeks and sold under brand name Omvoh, is among Lilly's potential growth drivers for this decade alongside tirzepatide for obesity, lebrikizumab for atopic dermatitis or eczema and pirtobrutinib for cancer. (Reporting by Pratik Jain and Khushi Mandowara in Benagluru; Editing by Anil D'Silva) ((Pratik.Jain@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. | Adds details about the approval and launch in paragraphs 2-7 Oct 26 (Reuters) - Eli Lilly and Co LLY.N said on Thursday that the U.S. health regulator had approved its drug for treating adults with moderate-to-severe active ulcerative colitis, a type of chronic inflammatory bowel disease. The drug, which will be available in the United States in coming weeks and sold under brand name Omvoh, is among Lilly's potential growth drivers for this decade alongside tirzepatide for obesity, lebrikizumab for atopic dermatitis or eczema and pirtobrutinib for cancer. The approval was based on data from late-stage studies of the drug that showed it helped improve the symptoms of the disease compared with placebo. |
22105.0 | 2023-10-26 00:00:00 UTC | Invest in Dividend Aristocrat Stocks with the NOBL ETF | ABBV | https://www.nasdaq.com/articles/invest-in-dividend-aristocrat-stocks-with-the-nobl-etf | nan | nan | A Dividend Aristocrat is a company in the S&P 500 (SPX) that not only pays a dividend but has also increased the size of its dividend payout for at least 25 years in a row. These are the types of prudent companies that care about shareholder returns that you want to invest in for the long term, and thanks to the ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL), you can invest in them all using one ETF.
I’m bullish on NOBL due to its focus on high-quality companies that are committed to growing their dividend payouts over time.
What is the NOBL ETF’s Strategy?
NOBL describes itself as the “only ETF focusing exclusively on the S&P 500 Dividend Aristocrats—high-quality companies that have not just paid dividends but grown them for at least 25 consecutive years, with most doing so for 40 years or more.”
In addition to this dividend growth, NOBL praises the fact that most of its holdings are blue-chip stocks that boast “stable earnings, solid fundamentals, and strong histories of profit and growth.”
This makes a lot of sense -- if a company has the ability to not only pay but also grow its dividend for 25 years in a row or more, it is likely to be a company on strong financial footing and with a strong underlying business.
There is a lot more to dividend investing than simply finding companies with high dividend yields. For example, a company may sport a high dividend yield but be at risk of reducing or even cutting its dividend entirely, meaning that this high yield is a mirage. Or, a stock could be a high-yield trap that has a high dividend yield but continually sees its share price decline year after year.
With these Dividend Aristocrats, you can be relatively confident that the vast majority of these companies are on sound financial footing and that they are likely to continue to increase their dividend payouts, going forward. These companies have proven their commitment to rewarding their shareholders with dividends over time and will likely continue to do so. Furthermore, once companies achieve the title of Dividend Aristocrat, they usually don't want to lose it.
Aristocratic Holdings
NOBL offers investors a nice degree of diversification. It owns 67 stocks, and its top 10 holdings make up just 17.5% of the fund, leaving investors with very little concentration risk.
Below, you can see an overview of NOBL’s top 10 holdings using TipRanks’ holdings tool.
NOBL’s holdings are a strong collection of dividend stalwarts that have increased their dividend payouts year after year. Top holding General Dynamics (NYSE:GD) has a proud history of increasing its dividend payout for 29 straight years. At the same time, NOBL’s second-largest holding, AFLAC (NYSE:AFL), has increased its dividend payout like clockwork for 40 years in a row.
Further down the list of top 10 holdings, well-known blue-chip names like Walmart (NYSE:WMT) and Procter & Gamble (NYSE:PG) have increased their dividend payouts for 49 and 67 years in a row, respectively. ExxonMobil (NYSE:XOM) has been paying a dividend since 1882 and has increased its payout for 40 years in a row.
In addition to long track records of raising their dividend payouts, another thing that many of NOBL's top holdings have in common is strong Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks and ETFs a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating.
An impressive five of NOBL's top 10 holdings feature 'Perfect 10' Smart Scores -- ExxonMobil, AbbVie (NYSE:ABBV), Procter & Gamble, Cintas (NASDAQ:CTAS), and IBM (NYSE:IBM).
Perhaps even more impressively, NOBL is one of the rare ETFs that feature an ETF Smart Score of 10.
NOBL’s Dividend
You may be surprised that an ETF focusing on dividend stocks like NOBL has a dividend yield of just 2.3%. However, it’s important to note that this yield is still higher than the average yield for the S&P 500 (about 1.6%). Furthermore, NOBL’s payout should rise over time as the stocks it owns increase their own dividend payouts. NOBL has provided investors with solid returns through a mix of dividend payments and capital appreciation, as we’ll discuss below.
NOBL's Past Performance
NOBL has provided investors with solid, though not eye-popping, returns over the years. Over the past three years, NOBL has returned 9.3% on an annualized basis, and over the past five years, NOBL has generated a return of 8.1% on an annualized basis. Since its inception in 2013, NOBL has returned 10.5% on an annualized basis.
These returns slightly lag those of a broad market S&P 500 ETF like the Vanguard S&P 500 ETF (NYSEARCA:VOO), which has returned 10.1% over the past three years and 9.9% over the past five years.
Still, NOBL’s double-digit annualized returns since its inception are respectable. An investor who put $10,000 into the fund when it began in 2013 would have an investment worth $26,106 today, illustrating the benefit of investing in dividend growth stocks over the long term and letting these gains compound.
Is NOBL Stock a Buy, According to Analysts?
Turning to Wall Street, NOBL earns a Moderate Buy consensus rating based on 92 Buys, 31 Holds, and 12 Sell ratings assigned in the past three months. The average NOBL stock price target of $115.08 implies 35.0% upside potential.
Is Its Expense Ratio Reasonable?
Another factor that investors should always take into account when making an investment decision on an ETF is its expense ratio. With an expense ratio of 0.35%, NOBL isn’t overly expensive, but it certainly isn’t cheap either.
This 0.35% expense ratio means that an investor allocating $10,000 into NOBL will be on the hook for $35 in fees during year one. Assuming that the ETF returns 5% per year going forward and maintains this expense ratio, this same investor will pay $443 over the course of 10 years. So, as you can see, these fees add up over time. That said, NOBL is more or less in the middle of the road when it comes to its expense ratio.
The Takeaway: A Reliable ETF
This isn’t the type of investment that is going to double in short order or blow the doors off of the competition. However, it's a steady ETF that has produced solid returns over time and has a portfolio of strong dividend growth companies with reliable dividend payouts, making it a solid and relatively safe choice for investors. Additionally, the high upside potential suggested by its average price target and its Perfect 10 Smart Score both boost its appeal.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | An impressive five of NOBL's top 10 holdings feature 'Perfect 10' Smart Scores -- ExxonMobil, AbbVie (NYSE:ABBV), Procter & Gamble, Cintas (NASDAQ:CTAS), and IBM (NYSE:IBM). Top holding General Dynamics (NYSE:GD) has a proud history of increasing its dividend payout for 29 straight years. At the same time, NOBL’s second-largest holding, AFLAC (NYSE:AFL), has increased its dividend payout like clockwork for 40 years in a row. | An impressive five of NOBL's top 10 holdings feature 'Perfect 10' Smart Scores -- ExxonMobil, AbbVie (NYSE:ABBV), Procter & Gamble, Cintas (NASDAQ:CTAS), and IBM (NYSE:IBM). Further down the list of top 10 holdings, well-known blue-chip names like Walmart (NYSE:WMT) and Procter & Gamble (NYSE:PG) have increased their dividend payouts for 49 and 67 years in a row, respectively. However, it's a steady ETF that has produced solid returns over time and has a portfolio of strong dividend growth companies with reliable dividend payouts, making it a solid and relatively safe choice for investors. | An impressive five of NOBL's top 10 holdings feature 'Perfect 10' Smart Scores -- ExxonMobil, AbbVie (NYSE:ABBV), Procter & Gamble, Cintas (NASDAQ:CTAS), and IBM (NYSE:IBM). NOBL describes itself as the “only ETF focusing exclusively on the S&P 500 Dividend Aristocrats—high-quality companies that have not just paid dividends but grown them for at least 25 consecutive years, with most doing so for 40 years or more.” In addition to this dividend growth, NOBL praises the fact that most of its holdings are blue-chip stocks that boast “stable earnings, solid fundamentals, and strong histories of profit and growth.” This makes a lot of sense -- if a company has the ability to not only pay but also grow its dividend for 25 years in a row or more, it is likely to be a company on strong financial footing and with a strong underlying business. NOBL’s holdings are a strong collection of dividend stalwarts that have increased their dividend payouts year after year. | An impressive five of NOBL's top 10 holdings feature 'Perfect 10' Smart Scores -- ExxonMobil, AbbVie (NYSE:ABBV), Procter & Gamble, Cintas (NASDAQ:CTAS), and IBM (NYSE:IBM). A Dividend Aristocrat is a company in the S&P 500 (SPX) that not only pays a dividend but has also increased the size of its dividend payout for at least 25 years in a row. These are the types of prudent companies that care about shareholder returns that you want to invest in for the long term, and thanks to the ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL), you can invest in them all using one ETF. |
22106.0 | 2023-10-26 00:00:00 UTC | Why Earnings Season Could Be Great for AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/why-earnings-season-could-be-great-for-abbvie-abbv-0 | nan | nan | Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV, may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because AbbVie is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABBV in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $2.86 per share for ABBV, compared to a broader Zacks Consensus Estimate of $2.85 per share. This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.08% heading into earnings season.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming 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. | After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABBV in this report. Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming report. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV, may be one such company. | Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming report. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV, may be one such company. | This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.08% heading into earnings season. Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV, may be one such company. | This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.08% heading into earnings season. Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV, may be one such company. |
22107.0 | 2023-10-26 00:00:00 UTC | Got $1,000? These 2 Stocks Could Be Bargain Buys for 2023 and Beyond | ABBV | https://www.nasdaq.com/articles/got-%241000-these-2-stocks-could-be-bargain-buys-for-2023-and-beyond-1 | nan | nan | While equity markets this year have recovered some of ground lost from the plunge of 2022, plenty of companies are still struggling. Some of them, though, clearly have the tools to rebound eventually and deliver solid returns to patient investors. Two stocks in that category are AbbVie (NYSE: ABBV) and Tandem Diabetes Care (NASDAQ: TNDM). For those with $1,000 that they are ready to invest now, these stocks might be excellent choices.
1. AbbVie
There is plenty to like about AbbVie's business: It boasts a rich lineup of drugs treating conditions across multiple therapeutic areas, and a deep pipeline that should yield more innovative medicines. Then, of course, there's AbbVie's dividend. The drugmaker is practically a dream come true for income-focused investors. It has raised its payouts by 270% since 2013, when it became a stand-alone company after Abbott Laboratories spun it off.
AbbVie's dividend yield is also highly competitive -- 4.1% at the current share price -- and its cash payout ratio is 42%, a conservative number that gives management plenty of room to boost the dividend. Considering all these factors, not to mention AbbVie's status as a Dividend King, the company looks like an excellent pick for income seekers. However, it hasn't all been smooth sailing for AbbVie lately.
This year, the company lost patent exclusivity for Humira, an immunosuppressive drug used to treat an array of conditions. It has been AbbVie's most important product since 2013. In fact, other than COVID-19 vaccines, Humira has been the world's top-selling drug for years. But AbbVie's revenues have been declining, and that trend should continue next year.
However, every drugmaker faces patent cliffs at some point. The important thing is how they handle them.
In AbbVie's case, it has pinned its hopes on Skyrizi and Rinvoq, two newer immunology therapies whose indications substantially overlap with Humira's -- and which are in some cases more effective than the older drug. AbbVie's lineup features other key products, too, from its Botox franchise to Qulipta, a migraine treatment. And its pipeline features dozens of promising programs.
No pharmaceutical company has a 100% success rate when it comes to getting approval for the treatments it develops. Still, AbbVie's long list of programs means it will inevitably launch new products while earning label expansions for existing ones. The arrival of biosimilars for Humira is no reason to shun AbbVie stock, but many investors have responded as if it was.
That's why AbbVie is down 9.9% this year, and at these levels, the company looks like a good pick, especially for investors on the market for blue chip dividend stocks. For just over $1,000, investors can buy about seven shares of AbbVie at its current price.
2. Tandem Diabetes Care
The global prevalence of diabetes has been worsening for decades, so there is a high and growing demand for products that can help patients manage the chronic illness. That's what Tandem Diabetes Care provides. The company develops innovative insulin pumps. Tandem's t:slim X2 has been its most significant growth driver for a while, but it recently earned clearance in the U.S. for the Mobi Insulin Pump, a smaller device.
Data source: YCharts.
Tandem Diabetes has faced economic-related challenges lately. Revenue growth has slowed as people have been more reticent to shell out the money to buy insulin pumps, which aren't the cheapest solution for diabetes patients' needs. However, pumps have certain advantages over injections: They are much less painful and more accurate.
That's why there is a good chance that pumps will continue to snatch market share away from daily injections, and there is still plenty of room for Tandem Diabetes Care to increase its sales. Tandem Diabetes Care does business in about 25 countries outside the U.S. It estimates that insulin pump penetration is generally between 10% and 20% in these countries. The company ended the second quarter with an installed base of 437,000, a 16% year-over-year increase.
In addition to capturing new customers, the company's pump renewals will increase as its installed base grows. (The renewal cycle is five years.) And while the company remains unprofitable, Tandem's newest device, the Mobi system, is 10% to 15% cheaper to manufacture than the previous model. That should help decrease the company's costs and bring it closer to profitability.
Overall, given the vast market opportunity, Tandem Diabetes Care's innovative devices, and the company's efforts to bring down costs, its stock could eventually rebound from its terrible performance this year. Buying shares while they're down might be an excellent idea, and with about $1,000, investors could pick up 54 of them 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. | Two stocks in that category are AbbVie (NYSE: ABBV) and Tandem Diabetes Care (NASDAQ: TNDM). AbbVie There is plenty to like about AbbVie's business: It boasts a rich lineup of drugs treating conditions across multiple therapeutic areas, and a deep pipeline that should yield more innovative medicines. Then, of course, there's AbbVie's dividend. | Two stocks in that category are AbbVie (NYSE: ABBV) and Tandem Diabetes Care (NASDAQ: TNDM). AbbVie There is plenty to like about AbbVie's business: It boasts a rich lineup of drugs treating conditions across multiple therapeutic areas, and a deep pipeline that should yield more innovative medicines. Then, of course, there's AbbVie's dividend. | Two stocks in that category are AbbVie (NYSE: ABBV) and Tandem Diabetes Care (NASDAQ: TNDM). That's why AbbVie is down 9.9% this year, and at these levels, the company looks like a good pick, especially for investors on the market for blue chip dividend stocks. AbbVie There is plenty to like about AbbVie's business: It boasts a rich lineup of drugs treating conditions across multiple therapeutic areas, and a deep pipeline that should yield more innovative medicines. | Two stocks in that category are AbbVie (NYSE: ABBV) and Tandem Diabetes Care (NASDAQ: TNDM). AbbVie There is plenty to like about AbbVie's business: It boasts a rich lineup of drugs treating conditions across multiple therapeutic areas, and a deep pipeline that should yield more innovative medicines. Then, of course, there's AbbVie's dividend. |
22108.0 | 2023-10-26 00:00:00 UTC | Notable Thursday Option Activity: ABBV, ANET, WDC | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-abbv-anet-wdc | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,502 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 61.9% of ABBV's average daily trading volume over the past month of 4.3 million shares. Especially high volume was seen for the $150 strike call option expiring January 19, 2024, with 7,616 contracts trading so far today, representing approximately 761,600 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange:
Arista Networks Inc (Symbol: ANET) options are showing a volume of 10,754 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 60.3% of ANET's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $150 strike put option expiring January 19, 2024, with 796 contracts trading so far today, representing approximately 79,600 underlying shares of ANET. Below is a chart showing ANET's trailing twelve month trading history, with the $150 strike highlighted in orange:
And Western Digital Corp (Symbol: WDC) saw options trading volume of 18,785 contracts, representing approximately 1.9 million underlying shares or approximately 57.5% of WDC's average daily trading volume over the past month, of 3.3 million shares. Particularly high volume was seen for the $45 strike call option expiring January 19, 2024, with 1,380 contracts trading so far today, representing approximately 138,000 underlying shares of WDC. Below is a chart showing WDC's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for ABBV options, ANET options, or WDC options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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. | Especially high volume was seen for the $150 strike call option expiring January 19, 2024, with 7,616 contracts trading so far today, representing approximately 761,600 underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,502 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 61.9% of ABBV's average daily trading volume over the past month of 4.3 million shares. | Especially high volume was seen for the $150 strike call option expiring January 19, 2024, with 7,616 contracts trading so far today, representing approximately 761,600 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: Arista Networks Inc (Symbol: ANET) options are showing a volume of 10,754 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,502 contracts have traded so far, representing approximately 2.7 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,502 contracts have traded so far, representing approximately 2.7 million underlying shares. Especially high volume was seen for the $150 strike call option expiring January 19, 2024, with 7,616 contracts trading so far today, representing approximately 761,600 underlying shares of ABBV. That amounts to about 61.9% of ABBV's average daily trading volume over the past month of 4.3 million shares. | Below is a chart showing WDC's trailing twelve month trading history, with the $45 strike highlighted in orange: For the various different available expirations for ABBV options, ANET options, or WDC options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,502 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 61.9% of ABBV's average daily trading volume over the past month of 4.3 million shares. |
22109.0 | 2023-10-25 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-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 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. |
22110.0 | 2023-10-25 00:00:00 UTC | USA Compression and Disney have been highlighted as Zacks Bull and Bear of the Day | ABBV | https://www.nasdaq.com/articles/usa-compression-and-disney-have-been-highlighted-as-zacks-bull-and-bear-of-the-day | nan | nan | For Immediate Release
Chicago, IL – October 25, 2023 – Zacks Equity Research shares USA Compression Partners USAC as the Bull of the Day and Disney DIS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD.
Here is a synopsis of all five stocks.
Bull of the Day:
USA Compression Partners is a Zacks Rank #1 (Strong Buy) that has a D for Value and a B for Growth. USAC is one of the largest independent natural gas compression services and they recently increased pricing by more than 11%. Since that time, the stock has moved higher. Let’s explore more about this company in this Bull of The Day article.
Description
SA Compression Partners LP engages in the provision of compression services in terms of total compression fleet horsepower. Its services include processing and transportation of natural gas through the domestic pipeline system and enhancing crude oil production through artificial lift processes. The company was founded by Eric Dee Long in1998 and is headquartered in Austin, TX.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For USA Compression Partners, I see one beat and three misses of the Zacks Consensus Estimate. The most recent quarter was the beat.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For USAC, estimates are moving higher.
This quarter has moved from $0.10 to $0.11.
Next quarter is holding still at $0.13.
The full year 2023 has seen estimates move from $0.30 to $0.31 over the last 60 days.
Next fiscal year has seen a move higher from $0.55 to $0.60 over the same period.
Valuation
The valuation is a little high, but the growth suggests that the stock should see a more reasonable valuation soon. The forward PE is 82x, but if we stretch the time horizon out to next year, we see the number cut in half. The price to sales comes in at 3.2x and the company has seen operating margins move from 5.15% to 6.35%.
Bear of the Day:
Disney is a Zacks Rank #5 (Strong Sell) has seen earnings estimates slide lower recently despite a good history of beating Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
The Walt Disney Co. engages in the business of international family entertainment and media enterprise. It owns and operates television and radio production, distribution and broadcasting stations, direct-to-consumer services, amusement parks, and hotels. It operates through the following business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of DIS, I see three straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For DIS I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $3.68 to $3.66 over the last 60 days.
The next year moved from $5.22 to $4.90 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
3 Biotechs with Decent Dividends for a Steady Return
The Zacks Biomedical and Genetics industry continues to grapple with issues like unfavorable foreign currency fluctuations that affect premium growth. Also, volatile global equity markets and low bond yields put enormous pressure on the insurer’s capital position. Amid volatile market conditions, companies with an impressive dividend history make for a solid investment option.
Despite the aforementioned challenges, the Biomedical and Genetics industry has gained 12.5% until Oct 18 compared with the Medical sector’s growth of 7.3%.
High-quality dividend stocks like AbbVie, Amgen and Gilead Sciences with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance.
Majority of the biotech players do not generate enough revenues to fund their operations and are dependent of external funds. A company starts generating revenues following a successful FDA approval and launch of any drug. Thus, the rising interest rate environment is likely to hurt the margins of biotech players as the industry players needs huge amount of capital to continue clinical studies before getting an FDA approval.
Moreover, the launch of a product requires significant amount of capital. As Fed hints at additional interest rate hikes amid high inflation, dividend-bearing stocks are likely to help tame some volatility amid an uncertain macro environment.
Stocks with a strong history of dividend growth belong to mature companies and are less susceptible to large swings in the market. They act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, they also offer downside protection with a consistent rise in payouts.
Additionally, these companies have superior fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some valuable characteristics.
3 Biotech Stocks to Watch Now
In order to choose some of the best dividend stocks from the industry, we have run the Zacks Stock Screener to identify those with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%.
AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. The company pays out a quarterly dividend of $1.48 ($5.92 annualized) per share, which gives it a 3.97% yield at the current stock price. This company’s payout ratio is 47%, with a five-year dividend growth rate of 9.06%. (Check AbbVie’s dividend history here.)
The company is also active on the buyback front. During the first half of 2023, ABBV repurchased shares worth $1.6 billion. As of June-end, it had $4.8 billion available for repurchase under its active share repurchase program.
AbbVie Inc. dividend-ttm | AbbVie Inc. Quote
Amgen: Headquartered in Thousand Oaks, CA, Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health, and nephrology and neuroscience markets.
Amgen pays out a quarterly dividend of $2.13 ($8.52 annualized) per share, which gives it a 3% yield at the current stock price. This company’s payout ratio is 48%, with a five-year dividend growth rate of 10.18%. (Check Amgen’s dividend history here.)
The company also has buyback plans. Although the company did not repurchase shares during the first half of 2023, it had $7 billion under its share repurchase authorization as of June 2023. AMGN had repurchased shares worth $6.3 billion during 2022.
Amgen Inc. dividend-ttm | Amgen Inc. Quote
Gilead Sciences: Headquartered in Foster City, CA, Gilead Sciences is a pioneer in the development of drugs for the treatment of human immunodeficiency virus, liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. GILD pays out a quarterly dividend of 75 cents ($3.00 annualized) per share, which gives it a 3.77% yield at the current stock price. This company’s payout ratio is 48%, with a five-year dividend growth rate of 4.87%. (Check Gilead Sciences’ dividend history here.)
The company is also active on the buyback front. During the first half of 2023, GILD repurchased shares worth $500 million. As of June-end, it had $4.3 billion available for repurchase under its share repurchase program announced in 2020.
Gilead Sciences, Inc. dividend-ttm | Gilead Sciences, Inc. Quote
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5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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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 addition, Zacks Equity Research provides analysis on AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD. High-quality dividend stocks like AbbVie, Amgen and Gilead Sciences with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. | In addition, Zacks Equity Research provides analysis on AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD. Click to get this free report Amgen Inc. (AMGN) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report USA Compression Partners, LP (USAC) : Free Stock Analysis Report To read this article on Zacks.com click here. High-quality dividend stocks like AbbVie, Amgen and Gilead Sciences with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. | Click to get this free report Amgen Inc. (AMGN) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report USA Compression Partners, LP (USAC) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD. High-quality dividend stocks like AbbVie, Amgen and Gilead Sciences with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. | In addition, Zacks Equity Research provides analysis on AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD. High-quality dividend stocks like AbbVie, Amgen and Gilead Sciences with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. |
22111.0 | 2023-10-24 00:00:00 UTC | VTV: A Must-Watch ETF for Value Investors | ABBV | https://www.nasdaq.com/articles/vtv%3A-a-must-watch-etf-for-value-investors | nan | nan | Value investing may not sound as exciting as investing in the next hot growth stock, but it’s a time-honored investing style that some of the most renowned investors of all time have used to generate tremendous returns over the years. In an uncertain market environment like the current one, investing in a well-established value ETF like the Vanguard Value ETF (NYSEARCA:VTV) makes a lot of sense.
I’m bullish on VTV given its attractive valuation, low costs, great diversification, above-average dividend yield, and solid long-term track record.
Let’s take a closer look at the largest value-oriented ETF in the stock market.
What is Value Investing?
Value investors typically look for stocks that are underappreciated and thus undervalued by the market. These stocks typically look inexpensive based on widely-used valuation metrics such as price-to-earnings ratios. Value investing can be compared to trying to buy a $100 bill for $80.
This strategy can be effective -- value stocks have plenty of room for upside if they beat low expectations as they trade for undemanding multiples, and they can also offer some downside protection as they don’t have overly-inflated valuations. This defensiveness can also make them a sensible area to invest in in an uncertain market environment.
Many of the market’s legendary figures, ranging from Benjamin Graham and Warren Buffett to Seth Klarman and Joel Greenblatt, are considered to be value investors first and foremost.
What is VTV’s Strategy?
VTV is an index fund that invests in an index of large-cap value stocks, the CRSP US Large Cap Value Index. Launched in 2004, VTV is by far the largest value-focused ETF in the market today, with $96.8 billion in assets under management (AUM).
VTV’s Portfolio
VTV has a diversified portfolio of 342 stocks, and its top 10 holdings make up just 23.1% of the fund. Below, you’ll find an overview of VTV’s top 10 holdings using TipRanks’ holdings tool.
It’s only fitting that VTV’s top holding is Berkshire Hathaway (NYSE:BRK.B), the massive $735 billion investment vehicle led by the man widely seen as the greatest value investor of all time, Warren Buffett.
Beyond Berkshire, VTV’s top holdings include a mix of sensible, blue-chip names from sectors like healthcare, energy, and financials that typically have had lower valuations than the broader market in recent years. Energy is represented through U.S.-based oil supermajors ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), while JPMorgan Chase (NYSE:JPM) joins Berkshire Hathaway in representing financials.
Meanwhile, household names like Johnson & Johnson (NYSE:JNJ), AbbVie (NYSE:ABBV), and Merck (NYSE:MRK) carry the flag for the healthcare sector.
Keep in mind that value stocks don’t always have to come from sleepy or old-school sectors of the market. Leading semiconductor company Broadcom (NASDAQ:AVGO) is another top 10 holding for VTV.
While VTV’s holdings come from a variety of industries, one thing they have in common is that they largely trade for below-market valuations. For example, the S&P 500 (SPX) currently has a price-to-earnings multiple of 19.2.
Just looking at a few of VTV’s top holdings for comparison, ExxonMobil currently trades for 11.7 times earnings, JPMorgan Chase has a valuation of just 8.7 times earnings, and AbbVie has a valuation of 13.2 times earnings. Altogether, VTV, as a whole, has an average price-to-earnings ratio of 15.5 as of September 30.
Another thing that VTV’s top holdings have in common are some fantastic Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks and ETFs a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating.
Remarkably, nine out of VTV’s top 10 holdings enjoy Outperform-equivalent Smart Scores of 8 or better. ExxonMobil, Procter & Gamble (NYSE:PG), AbbVie, Broadcom, and Merck lead the way with 'Perfect 10' Smart Scores.
VTV itself enjoys an Outperform-equivalent ETF Smart Score of 8.
VTV's Performance Over Time
While it hasn’t produced eye-popping results, VTV has been a consistent performer over the long haul. As of the end of the most recent month, the fund has returned 12.4% on an annualized basis over the past three years, 7.3% annualized over the past five years, and 9.8% annualized over the past 10. Since its inception nearly 20 years ago, VTV has returned 8.1% on an annualized basis.
Above-Average Dividend
Additionally, VTV offers a decent dividend yield of 2.7%, which isn’t a number that jumps off the page at you but is still much higher than the S&P 500’s average dividend yield of just 1.6%.
Furthermore, VTV has a strong history as a dividend payer. The fund has been making dividend payments to investors for 18 years in a row, and it has increased its total annual payout for 12 straight years.
A Low-Cost Option
Vanguard is known for offering low-cost funds, and VTV fits in nicely with this tradition. VTV is an extremely cost-effective choice for investors, with a dirt-cheap expense ratio of just 0.04%. This means that an investor putting $10,000 into the fund would pay just $4 in expenses in year one. Assuming that the expense ratio remains 0.04% and that the fund returns 5% per year going forward, this same investor would pay just $51 in fees over the course of a decade.
Is VTV Stock a Buy, According to Analysts?
Turning to Wall Street, VTV earns a Moderate Buy consensus rating based on 267 Buys, 69 Holds, and seven Sell ratings assigned in the past three months. The average VTV stock price target of $161.72 implies 19.9% upside potential.
The Takeaway: VTV Presents Good Value
A value ETF like VTV might not be the biggest attention grabber in the market, but this is a very solid ETF. It gives investors plenty of diversification at a rock-bottom price. Furthermore, VTV trades at a modest valuation and sports an above-average dividend yield. Its top holdings have undemanding valuations while boasting top-notch Smart Scores.
With all of these things going for it, VTV looks like a solid option for investors to add to their portfolios, especially in an uncertain market environment like the one we are navigating through now.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, household names like Johnson & Johnson (NYSE:JNJ), AbbVie (NYSE:ABBV), and Merck (NYSE:MRK) carry the flag for the healthcare sector. Just looking at a few of VTV’s top holdings for comparison, ExxonMobil currently trades for 11.7 times earnings, JPMorgan Chase has a valuation of just 8.7 times earnings, and AbbVie has a valuation of 13.2 times earnings. ExxonMobil, Procter & Gamble (NYSE:PG), AbbVie, Broadcom, and Merck lead the way with 'Perfect 10' Smart Scores. | Just looking at a few of VTV’s top holdings for comparison, ExxonMobil currently trades for 11.7 times earnings, JPMorgan Chase has a valuation of just 8.7 times earnings, and AbbVie has a valuation of 13.2 times earnings. Meanwhile, household names like Johnson & Johnson (NYSE:JNJ), AbbVie (NYSE:ABBV), and Merck (NYSE:MRK) carry the flag for the healthcare sector. ExxonMobil, Procter & Gamble (NYSE:PG), AbbVie, Broadcom, and Merck lead the way with 'Perfect 10' Smart Scores. | Just looking at a few of VTV’s top holdings for comparison, ExxonMobil currently trades for 11.7 times earnings, JPMorgan Chase has a valuation of just 8.7 times earnings, and AbbVie has a valuation of 13.2 times earnings. Meanwhile, household names like Johnson & Johnson (NYSE:JNJ), AbbVie (NYSE:ABBV), and Merck (NYSE:MRK) carry the flag for the healthcare sector. ExxonMobil, Procter & Gamble (NYSE:PG), AbbVie, Broadcom, and Merck lead the way with 'Perfect 10' Smart Scores. | Just looking at a few of VTV’s top holdings for comparison, ExxonMobil currently trades for 11.7 times earnings, JPMorgan Chase has a valuation of just 8.7 times earnings, and AbbVie has a valuation of 13.2 times earnings. Meanwhile, household names like Johnson & Johnson (NYSE:JNJ), AbbVie (NYSE:ABBV), and Merck (NYSE:MRK) carry the flag for the healthcare sector. ExxonMobil, Procter & Gamble (NYSE:PG), AbbVie, Broadcom, and Merck lead the way with 'Perfect 10' Smart Scores. |
22112.0 | 2023-10-24 00:00:00 UTC | Earnings Preview: Pfizer (PFE) Q3 Earnings Expected to Decline | ABBV | https://www.nasdaq.com/articles/earnings-preview%3A-pfizer-pfe-q3-earnings-expected-to-decline | nan | nan | Pfizer (PFE) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
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%.
Revenues are expected to be $13.96 billion, down 38.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 95.17% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Pfizer?
For Pfizer, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Pfizer will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Pfizer would post earnings of $0.56 per share when it actually produced earnings of $0.67, delivering a surprise of +19.64%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Pfizer doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Large Cap Pharmaceuticals industry, AbbVie (ABBV), is soon expected to post earnings of $2.87 per share for the quarter ended September 2023. This estimate indicates a year-over-year change of -21.6%. Revenues for the quarter are expected to be $13.69 billion, down 7.6% from the year-ago quarter.
The consensus EPS estimate for AbbVie has been revised 0.5% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.31%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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. | Expected Results of an Industry Player Another stock from the Zacks Large Cap Pharmaceuticals industry, AbbVie (ABBV), is soon expected to post earnings of $2.87 per share for the quarter ended September 2023. The consensus EPS estimate for AbbVie has been revised 0.5% higher over the last 30 days to the current level. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. | This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Expected Results of an Industry Player Another stock from the Zacks Large Cap Pharmaceuticals industry, AbbVie (ABBV), is soon expected to post earnings of $2.87 per share for the quarter ended September 2023. | This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. Expected Results of an Industry Player Another stock from the Zacks Large Cap Pharmaceuticals industry, AbbVie (ABBV), is soon expected to post earnings of $2.87 per share for the quarter ended September 2023. The consensus EPS estimate for AbbVie has been revised 0.5% higher over the last 30 days to the current level. | This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. Expected Results of an Industry Player Another stock from the Zacks Large Cap Pharmaceuticals industry, AbbVie (ABBV), is soon expected to post earnings of $2.87 per share for the quarter ended September 2023. The consensus EPS estimate for AbbVie has been revised 0.5% higher over the last 30 days to the current level. |
22113.0 | 2023-10-24 00:00:00 UTC | 3 Biotech Stocks With Decent Dividend for a Steady Return | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-with-decent-dividend-for-a-steady-return | nan | nan | The Zacks Biomedical and Genetics industry continues to grapple with issues like unfavorable foreign currency fluctuations that affect premium growth. Also, volatile global equity markets and low bond yields put enormous pressure on the insurer’s capital position. Amid volatile market conditions, companies with an impressive dividend history make for a solid investment option.
Despite the aforementioned challenges, the Biomedical and Genetics industry has gained 12.5% until Oct 18 compared with the Medical sector’s growth of 7.3%.
High-quality dividend stocks like AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance.
Image Source: Zacks Investment Research
Majority of the biotech players do not generate enough revenues to fund their operations and are dependent of external funds. A company starts generating revenues following a successful FDA approval and launch of any drug. Thus, the rising interest rate environment is likely to hurt the margins of biotech players as the industry players needs huge amount of capital to continue clinical studies before getting an FDA approval.
Moreover, the launch of a product requires significant amount of capital. As Fed hints at additional interest rate hikes amid high inflation, dividend-bearing stocks are likely to help tame some volatility amid an uncertain macro environment.
Stocks with a strong history of dividend growth belong to mature companies and are less susceptible to large swings in the market. They act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, they also offer downside protection with a consistent rise in payouts.
Additionally, these companies have superior fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some valuable characteristics.
3 Biotech Stocks to Watch Now
In order to choose some of the best dividend stocks from the industry, we have run the Zacks Stock Screener to identify those with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%.
AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. The company pays out a quarterly dividend of $1.48 ($5.92 annualized) per share, which gives it a 3.97% yield at the current stock price. This company’s payout ratio is 47%, with a five-year dividend growth rate of 9.06%. (Check AbbVie’s dividend history here.)
The company is also active on the buyback front. During the first half of 2023, ABBV repurchased shares worth $1.6 billion. As of June-end, it had $4.8 billion available for repurchase under its active share repurchase program.
AbbVie Inc. Dividend (TTM)
AbbVie Inc. dividend-ttm | AbbVie Inc. Quote
Amgen: Headquartered in Thousand Oaks, CA, Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health, and nephrology and neuroscience markets.
Amgen pays out a quarterly dividend of $2.13 ($8.52 annualized) per share, which gives it a 3% yield at the current stock price. This company’s payout ratio is 48%, with a five-year dividend growth rate of 10.18%. (Check Amgen’s dividend history here.)
The company also has buyback plans. Although the company did not repurchase shares during the first half of 2023, it had $7 billion under its share repurchase authorization as of June 2023. AMGN had repurchased shares worth $6.3 billion during 2022.
Amgen Inc. Dividend (TTM)
Amgen Inc. dividend-ttm | Amgen Inc. Quote
Gilead Sciences: Headquartered in Foster City, CA, Gilead Sciences is a pioneer in the development of drugs for the treatment of human immunodeficiency virus, liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. GILD pays out a quarterly dividend of 75 cents ($3.00 annualized) per share, which gives it a 3.77% yield at the current stock price. This company’s payout ratio is 48%, with a five-year dividend growth rate of 4.87%. (Check Gilead Sciences’ dividend history here.)
The company is also active on the buyback front. During the first half of 2023, GILD repurchased shares worth $500 million. As of June-end, it had $4.3 billion available for repurchase under its share repurchase program announced in 2020.
Gilead Sciences, Inc. Dividend (TTM)
Gilead Sciences, Inc. dividend-ttm | Gilead Sciences, Inc. Quote
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.
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
Amgen Inc. (AMGN) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
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. | High-quality dividend stocks like AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. (Check AbbVie’s dividend history here.) | Click to get this free report Amgen Inc. (AMGN) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. High-quality dividend stocks like AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. | High-quality dividend stocks like AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. Click to get this free report Amgen Inc. (AMGN) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. | High-quality dividend stocks like AbbVie ABBV, Amgen AMGN and Gilead Sciences GILD with an impressive dividend history, might fetch promising returns for investors.These companies have consistently announced dividend hikes, which highlight their pro-shareholder stance. AbbVie: Headquartered in North Chicago, IL, AbbVie enjoys a leading position in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. (Check AbbVie’s dividend history here.) |
22114.0 | 2023-10-24 00:00:00 UTC | Allergan Announces Positive Results From Phase 3 Studies Of TrenibotulinumtoxinE In Glabella Lines | ABBV | https://www.nasdaq.com/articles/allergan-announces-positive-results-from-phase-3-studies-of-trenibotulinumtoxine-in | nan | nan | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced positive results from two pivotal Phase 3 clinical studies evaluating trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines (M21-500 and M21-508).
The Phase 3 studies evaluated the safety and efficacy of BoNT/E versus placebo in a total of 947 adult subjects with moderate to severe glabellar lines located between the eyebrows in the United States, Canada, and Europe. Subjects were either toxin-naïve or previously treated with neurotoxins and were evaluated over 12 weeks with up to two treatments of BoNT/E.
According to the company, the primary endpoints of both pivotal Phase 3 studies demonstrated statistical significance for improvement with BoNT/E versus placebo in glabellar line severity on the Facial Wrinkle Scale from baseline at day 7.
All tested secondary endpoints, including patient-reported outcomes on overall treatment satisfaction, demonstrated statistical significance, favoring improvement with BoNT/E versus placebo. The onset of efficacy was demonstrated at 8 hours after drug administration and efficacy duration was observed for 2-3 weeks after drug administration.
Treatment-emergent adverse events for BoNT/E were similar to placebo, both as a single treatment and up to two consecutive treatments.
Additional study results will be submitted for presentation at future medical meetings. A Phase 3 open-label safety study is ongoing, with results expected later this year.
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. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced positive results from two pivotal Phase 3 clinical studies evaluating trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines (M21-500 and M21-508). The Phase 3 studies evaluated the safety and efficacy of BoNT/E versus placebo in a total of 947 adult subjects with moderate to severe glabellar lines located between the eyebrows in the United States, Canada, and Europe. According to the company, the primary endpoints of both pivotal Phase 3 studies demonstrated statistical significance for improvement with BoNT/E versus placebo in glabellar line severity on the Facial Wrinkle Scale from baseline at day 7. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced positive results from two pivotal Phase 3 clinical studies evaluating trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines (M21-500 and M21-508). The Phase 3 studies evaluated the safety and efficacy of BoNT/E versus placebo in a total of 947 adult subjects with moderate to severe glabellar lines located between the eyebrows in the United States, Canada, and Europe. According to the company, the primary endpoints of both pivotal Phase 3 studies demonstrated statistical significance for improvement with BoNT/E versus placebo in glabellar line severity on the Facial Wrinkle Scale from baseline at day 7. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced positive results from two pivotal Phase 3 clinical studies evaluating trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines (M21-500 and M21-508). The Phase 3 studies evaluated the safety and efficacy of BoNT/E versus placebo in a total of 947 adult subjects with moderate to severe glabellar lines located between the eyebrows in the United States, Canada, and Europe. According to the company, the primary endpoints of both pivotal Phase 3 studies demonstrated statistical significance for improvement with BoNT/E versus placebo in glabellar line severity on the Facial Wrinkle Scale from baseline at day 7. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced positive results from two pivotal Phase 3 clinical studies evaluating trenibotulinumtoxinE (BoNT/E) for the treatment of moderate to severe glabellar lines (M21-500 and M21-508). The Phase 3 studies evaluated the safety and efficacy of BoNT/E versus placebo in a total of 947 adult subjects with moderate to severe glabellar lines located between the eyebrows in the United States, Canada, and Europe. According to the company, the primary endpoints of both pivotal Phase 3 studies demonstrated statistical significance for improvement with BoNT/E versus placebo in glabellar line severity on the Facial Wrinkle Scale from baseline at day 7. |
22115.0 | 2023-10-23 00:00:00 UTC | AbbVie (ABBV) Sees a More Significant Dip Than Broader Market: Some Facts to Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-sees-a-more-significant-dip-than-broader-market%3A-some-facts-to-know | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $144.73, marking a -1.03% move from the previous day. This move lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.
The the stock of drugmaker has fallen by 4.26% in the past month, leading the Medical sector's loss of 5.22% and undershooting the S&P 500's loss of 3.95%.
The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2023. It is anticipated that the company will report an EPS of $2.87, marking a 21.58% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.69 billion, indicating a 7.55% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.03 per share and a revenue of $53.56 billion, signifying shifts of -19.9% and -7.74%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. AbbVie presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, AbbVie is currently exchanging hands at a Forward P/E ratio of 13.26. Its industry sports an average Forward P/E of 15.16, so one might conclude that AbbVie is trading at a discount comparatively.
We can additionally observe that ABBV currently boasts a PEG ratio of 2.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.75 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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. | In the latest trading session, AbbVie (ABBV) closed at $144.73, marking a -1.03% move from the previous day. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $144.73, marking a -1.03% move from the previous day. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $144.73, marking a -1.03% move from the previous day. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $144.73, marking a -1.03% move from the previous day. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. |
22116.0 | 2023-10-23 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-17 | 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. |
22117.0 | 2023-10-23 00:00:00 UTC | Stocks Set to Open Lower as Investors Await Key U.S. Inflation Data and Big Tech Earnings | ABBV | https://www.nasdaq.com/articles/stocks-set-to-open-lower-as-investors-await-key-u.s.-inflation-data-and-big-tech-earnings | nan | nan | December S&P 500 futures (ESZ23) are down -0.76%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.92% this morning as the benchmark U.S. 10-year yield hit 5% for the first time since 2007 while market participants geared up for earnings reports from some of the biggest tech heavyweights as well as the release of the Fed’s favorite inflation gauge.
In Friday’s trading session, Wall Street’s major averages closed in the red, with the benchmark S&P 500, blue-chip Dow, and tech-heavy Nasdaq 100 dropping to 2-week lows. SolarEdge Technologies Inc (SEDG) tumbled over -27% and was the top percentage loser on the S&P 500 after cutting its Q3 revenue outlook, citing “substantial unexpected cancellations and pushouts of existing backlog from our European distributors.” Also, American Express Company (AXP) slid more than -5% after the credit card company posted weaker-than-expected Q3 network volume. In addition, regional bank stocks retreated, with Regions Financial Corporation (RF) plunging over -12% after the lender reported downbeat Q3 results and warned it expects further declines in net interest income. On the bullish side, Knight-Swift Transportation (KNX) climbed more than +11% after the company reported upbeat Q3 results.
Meanwhile, Cleveland Fed President Loretta Mester said Friday that the U.S. central bank is approaching the conclusion of its aggressive tightening campaign but signaled she still favors raising rates once more this year based on how the economy evolves. “Regardless of the decision made at our next meeting, if the economy evolves as anticipated, in my view, we are likely near or at a holding point on the funds rate,” Mester said. Also, Philadelphia Fed President Patrick Harker stated the Federal Reserve should hold interest rates steady, even in the face of slightly faster-than-expected economic growth. “We are at the point where we can hold rates where they are,” he said.
U.S. rate futures have priced in a 98.4% chance of no hike at the November FOMC meeting and a 24.2% probability of a 25 basis point rate increase at the conclusion of the Fed’s December meeting.
Third-quarter earnings season kicks into full gear, and investors await fresh reports from major global companies this week, including Microsoft (MSFT), Alphabet (GOOGL), Visa (V), Coca-Cola (KO), Meta Platforms (META), Boeing (BA), Amazon.com (AMZN), Mastercard (MA), Merck (MRK), Intel (INTC), Altria (MO), Exxon Mobil (XOM), Chevron (CVX), and Abbvie (ABBV).
In the coming week, the September reading of the U.S. core personal consumption expenditures price index, the Fed’s preferred inflation gauge, will be the main highlight. Also, market participants will be eyeing a spate of economic data, including the U.S. S&P Global Composite PMI (preliminary), S&P Global Manufacturing PMI (preliminary), S&P Global Services PMI (preliminary), Richmond Manufacturing Index, Building Permits, New Home Sales, Crude Oil Inventories, Core Durable Goods Orders, Durable Goods Orders, GDP (preliminary), GDP Price Index (preliminary), Initial Jobless Claims, Pending Home Sales, Personal Income, Personal Spending, and Michigan Consumer Sentiment.
In other news, investors are closely monitoring Middle East developments after Hamas released two U.S. hostages, and aid started to trickle through Egypt’s border with Gaza over the weekend.
The U.S. economic data slate is largely empty on Monday.
In the bond markets, United States 10-year rates are at 5.012%, up +1.81%.
The Euro Stoxx 50 futures are down -0.47% this morning as investors braced for a week filled with earnings reports and the European Central Bank’s policy meeting while remaining cautious due to tensions in the Middle East. Mining and real estate stocks underperformed on Monday, while retail stocks gained ground. Meanwhile, the European Central Bank is scheduled to announce its interest rate decision on Thursday, with the prevailing expectation being that interest rates will remain unchanged. In corporate news, Indivior Plc (INDV.LN) climbed over +4% after the drugmaker announced it would pay $385 million to settle a lawsuit. At the same time, Volkswagen Ag (VOW3.D.DX) slid more than -3% after the German carmaker slashed its full-year profit margin outlook.
The European economic data slate is mainly empty on Monday.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -1.47%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.83%.
China’s Shanghai Composite today closed lower, hitting an almost 1-year low as concerns over the troubled property sector persisted, and sentiment was further dampened by Beijing’s announcement of a series of investigations into Foxconn Technology Group. Tech stocks led the declines on Monday. Foxconn Industrial Internet Co., Foxconn’s major Shanghai-listed subsidiary, plunged about -10% following reports from state media over the weekend, indicating that regulators are conducting tax audits and reviewing land use by Foxconn. Meanwhile, Bloomberg News reported that China intends to hold a key financial policy gathering, which takes place once every five years, early next week to prevent risks and establish medium-term priorities. In other news, a state-run newspaper reported that China might consider reducing the disclosure of trading data for the Northbound channel of its Stock Connect mechanism used by offshore investors.
“Multiple factors were in play, including headlines around the export ban by the U.S., the widening Middle East conflict, and China’s strong third-quarter economic data print likely being interpreted as leading to a lower likelihood of stimulus in the fourth quarter,” UBS analysts wrote in a note.
Japan’s Nikkei 225 Stock Index closed lower today following Friday’s losses on Wall Street as events in the Middle East continued to make investors apprehensive. Energy and industrial stocks fell the most on Monday, while healthcare stocks outperformed. Chip-related stocks also retreated, with Advantest dropping about -3% and Renesas Electronics falling over -2%. Meanwhile, Japanese government bond yields surged to fresh multi-year highs on Monday following a report in the Nikkei newspaper on Sunday, indicating that Bank of Japan officials are considering whether to tweak their yield-curve control setting at an upcoming policy meeting next week. In corporate news, Daiichi Sankyo rose more than +2%, building on last week’s gains following a $5.5 billion deal with Merck to jointly develop cancer drugs. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +1.38% to 23.52.
“Concerns about a possible worsening of Middle East tensions will continue to be a weight on the Japanesestock market todayand indeed all this week,” said Maki Sawada, a strategist at Nomura Securities.
Pre-Market U.S. Stock Movers
Textainer Group Holdings Ltd (TGH) surged about +42% in pre-market trading after U.S. infrastructure investor Stonepeak agreed to buy the shipping container lessor for about $2.1 billion.
Harpoon Therapeutics Inc (HARP) soared over +40% in pre-market trading after announcing updated interim data from the Phase 1/2 trial of HPN328.
Generation Bio Co (GBIO) slumped more than -7% in pre-market trading after JMP Securities downgraded the stock to Market Perform from Outperform.
Salesforce Inc (CRM) fell over -1% in pre-market trading after Piper Sandler downgraded the stock to Neutral from Overweight.
Pinterest Inc (PINS) gained more than +2% in pre-market trading after Stifel upgraded the stock to Buy from Hold.
Walgreens Boots Alliance Inc (WBA) climbed over +3% in pre-market trading after JPMorgan upgraded the stock to Overweight from Neutral.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - October 23rd
Cadence Design (CDNS), Brown&Brown (BRO), WR Berkley (WRB), Packaging America (PKG), Crown (CCK), Cleveland-Cliffs (CLF), Medpace Holdings (MEDP), Simpson Manufacturing (SSD), Hexcel (HXL), Crane (CR), Cadence Bancorp (CADE), Calix (CALX), Cathay (CATY), Bank of Hawaii (BOH), Agilysys (AGYS), Helix (HLX), Independent Bank Group (IBTX), Hope Bancorp (HOPE), KKR Real Estate (KREF), HealthStream (HSTM), Dynex Capital (DX), Hbt Fin (HBT), TrustCo Bank NY (TRST), TrueBlue (TBI), Washington Trust (WASH), SmartFinancial Inc (SMBK), Northeast Bancorp (NBN), Aaron’s (AAN), Bank of Marin (BMRC), RBB Bancorp (RBB), Mainstreet Bank (MNSB), Acme United (ACU).
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On the date of publication, Oleksandr Pylypenko 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. | Third-quarter earnings season kicks into full gear, and investors await fresh reports from major global companies this week, including Microsoft (MSFT), Alphabet (GOOGL), Visa (V), Coca-Cola (KO), Meta Platforms (META), Boeing (BA), Amazon.com (AMZN), Mastercard (MA), Merck (MRK), Intel (INTC), Altria (MO), Exxon Mobil (XOM), Chevron (CVX), and Abbvie (ABBV). China’s Shanghai Composite today closed lower, hitting an almost 1-year low as concerns over the troubled property sector persisted, and sentiment was further dampened by Beijing’s announcement of a series of investigations into Foxconn Technology Group. “Multiple factors were in play, including headlines around the export ban by the U.S., the widening Middle East conflict, and China’s strong third-quarter economic data print likely being interpreted as leading to a lower likelihood of stimulus in the fourth quarter,” UBS analysts wrote in a note. | Third-quarter earnings season kicks into full gear, and investors await fresh reports from major global companies this week, including Microsoft (MSFT), Alphabet (GOOGL), Visa (V), Coca-Cola (KO), Meta Platforms (META), Boeing (BA), Amazon.com (AMZN), Mastercard (MA), Merck (MRK), Intel (INTC), Altria (MO), Exxon Mobil (XOM), Chevron (CVX), and Abbvie (ABBV). December S&P 500 futures (ESZ23) are down -0.76%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.92% this morning as the benchmark U.S. 10-year yield hit 5% for the first time since 2007 while market participants geared up for earnings reports from some of the biggest tech heavyweights as well as the release of the Fed’s favorite inflation gauge. Also, market participants will be eyeing a spate of economic data, including the U.S. S&P Global Composite PMI (preliminary), S&P Global Manufacturing PMI (preliminary), S&P Global Services PMI (preliminary), Richmond Manufacturing Index, Building Permits, New Home Sales, Crude Oil Inventories, Core Durable Goods Orders, Durable Goods Orders, GDP (preliminary), GDP Price Index (preliminary), Initial Jobless Claims, Pending Home Sales, Personal Income, Personal Spending, and Michigan Consumer Sentiment. | Third-quarter earnings season kicks into full gear, and investors await fresh reports from major global companies this week, including Microsoft (MSFT), Alphabet (GOOGL), Visa (V), Coca-Cola (KO), Meta Platforms (META), Boeing (BA), Amazon.com (AMZN), Mastercard (MA), Merck (MRK), Intel (INTC), Altria (MO), Exxon Mobil (XOM), Chevron (CVX), and Abbvie (ABBV). Also, market participants will be eyeing a spate of economic data, including the U.S. S&P Global Composite PMI (preliminary), S&P Global Manufacturing PMI (preliminary), S&P Global Services PMI (preliminary), Richmond Manufacturing Index, Building Permits, New Home Sales, Crude Oil Inventories, Core Durable Goods Orders, Durable Goods Orders, GDP (preliminary), GDP Price Index (preliminary), Initial Jobless Claims, Pending Home Sales, Personal Income, Personal Spending, and Michigan Consumer Sentiment. You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Monday - October 23rd Cadence Design (CDNS), Brown&Brown (BRO), WR Berkley (WRB), Packaging America (PKG), Crown (CCK), Cleveland-Cliffs (CLF), Medpace Holdings (MEDP), Simpson Manufacturing (SSD), Hexcel (HXL), Crane (CR), Cadence Bancorp (CADE), Calix (CALX), Cathay (CATY), Bank of Hawaii (BOH), Agilysys (AGYS), Helix (HLX), Independent Bank Group (IBTX), Hope Bancorp (HOPE), KKR Real Estate (KREF), HealthStream (HSTM), Dynex Capital (DX), Hbt Fin (HBT), TrustCo Bank NY (TRST), TrueBlue (TBI), Washington Trust (WASH), SmartFinancial Inc (SMBK), Northeast Bancorp (NBN), Aaron’s (AAN), Bank of Marin (BMRC), RBB Bancorp (RBB), Mainstreet Bank (MNSB), Acme United (ACU). | Third-quarter earnings season kicks into full gear, and investors await fresh reports from major global companies this week, including Microsoft (MSFT), Alphabet (GOOGL), Visa (V), Coca-Cola (KO), Meta Platforms (META), Boeing (BA), Amazon.com (AMZN), Mastercard (MA), Merck (MRK), Intel (INTC), Altria (MO), Exxon Mobil (XOM), Chevron (CVX), and Abbvie (ABBV). Japan’s Nikkei 225 Stock Index closed lower today following Friday’s losses on Wall Street as events in the Middle East continued to make investors apprehensive. Pinterest Inc (PINS) gained more than +2% in pre-market trading after Stifel upgraded the stock to Buy from Hold. |
22118.0 | 2023-10-23 00:00:00 UTC | AbbVie (ABBV) to Report Q3 Earnings: What's in the Cards? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-to-report-q3-earnings%3A-whats-in-the-cards-0 | nan | nan | AbbVie ABBV will report third-quarter 2023 results on Oct 27, before market open. In the last reported quarter, the company delivered an earnings surprise of 4.30%.
Factors to Consider
AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. The upside can be attributed to label expansions of both drugs to allow use in new patient populations in the last few quarters. This trend is expected to have continued in the to-be-reported quarter.
During the third quarter, AbbVie reported data from separate head-to-head studies, which showed that treatment with Skyrizi exhibited superiority against blockbuster drugs Otezla and Stelara in plaque psoriasis and Crohn’s disease indications, respectively. The Zacks Consensus Estimate and our model estimates for Skyrizi are pegged at $2.14 billion and $2.10 billion, respectively.
The Zacks Consensus Estimate and our model estimates for Rinvoq are pegged at $1.04 billion and $1.03 billion, respectively.
Growth in Rinvoq and Skyrizi sales is expected to partially make up for the fall in sales of the flagship drug Humira’. The drug lost exclusivity in the United States following the launch of Amgen’s Amjevita in first-quarter 2023, the first U.S. biosimilar to Humira. Many other companies, like Boehringer Ingelheim, Samsung Bioepis and Sandoz, have launched Humira biosimilars. More such biosimilars are expected to be launched this year. The impact of these biosimilars on Humira sales will be seen in subsequent quarters. The drug has already lost exclusivity in ex-U.S. territories following the launch of generics in 2018.
The Zacks Consensus Estimate and our model estimate for Humira are pegged at $3.49 billion.
In the hematologic oncology segment, AbbVie markets two drugs, Imbruvica and Venclexta, in partnership with Johnson & Johnson and Roche, respectively.
We expect J&J-partnered Imbruvica sales to decline due to novel oral therapies hurting the drug’s sales. The Zacks Consensus Estimate and our model estimates for the drug’s sales are pegged at $876 million and $889 million, respectively.
Roche-partnered Venclexta sales are likely to rise as new patient starts are expected to improve. The Zacks Consensus Estimate and our model estimates for the drug’s sales are pegged at $564 million and $550 million, respectively.
In the aesthetics franchise, we expect overall sales to rise slightly as we expect a slight recovery in demand for Botox and Juvederm sales. The Zacks Consensus Estimate and our model estimate for aesthetics product sales are pegged at $1.31 billion and $1.33 billion, respectively.
Sales of the neuroscience franchise have shown strong growth in recent quarters, with sales likely to be driven by the recently approved migraine drugs — Ubrelvy and Qulipta. The Zacks Consensus Estimate and our model estimate suggest neuroscience product sales at $1.97 billion and $1.98 billion, respectively.
Investors are likely to forward questions regarding updates on new product launches.
Key Development in Q3
Last month, AbbVie’s newest hematological cancer drug, Epkinly, received approval from the European Commission to treat adults with relapsed or refractory diffuse large B-cell lymphoma (“DLBCL”). The drug will be marketed in Europe under the trade name Tepkinly.
In August, Aquipta received approval in the EU for the preventive treatment of migraine. The drug is being marketed under the trade name Qulipta in the United States.
Earnings Surprise History
AbbVie’s performance has been impressive, with its earnings beating estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 2.41%, on average.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Shares of AbbVie have lost 9.5% year to date against the industry’s 4.6% growth.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: AbbVie has an Earnings ESP of -0.31% as the Most Accurate Estimate of $2.86 per share is lower than the Zacks Consensus Estimate of $2.87.
Zacks Rank: AbbVie currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock to Consider
Here are some large-cap biotech stocks that have the right combination of elements to beat on earnings this time around:
Amgen AMGN has an Earnings ESP of +0.63% and a Zacks Rank #3.
Amgen’s stock has risen 6.2% year to date. Amgen beat earnings estimates in all the last four quarters. AMGN delivered a four-quarter earnings surprise of 5.90%, on average. Amgen is scheduled to release its third-quarter results on Oct 31, before market opens.
AstraZeneca AZN has an Earnings ESP of +5.13% and a Zacks Rank #3.
AstraZeneca’s stock has lost 5.9% year to date. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.38%, on average. AstraZeneca is scheduled to release its third-quarter results on Nov 9.
Merck MRK has an Earnings ESP of +1.73% and a Zacks Rank #3.
Merck’s stock has lost 7.5% year to date. Merck beat earnings estimates in all the last four quarters. MRK delivered a four-quarter earnings surprise of 6.05%, on average. Merck is scheduled to release its third-quarter results on Oct 26, before market opens.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.
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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. | Factors to Consider AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. During the third quarter, AbbVie reported data from separate head-to-head studies, which showed that treatment with Skyrizi exhibited superiority against blockbuster drugs Otezla and Stelara in plaque psoriasis and Crohn’s disease indications, respectively. Key Development in Q3 Last month, AbbVie’s newest hematological cancer drug, Epkinly, received approval from the European Commission to treat adults with relapsed or refractory diffuse large B-cell lymphoma (“DLBCL”). | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV will report third-quarter 2023 results on Oct 27, before market open. Factors to Consider AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. | Earnings ESP: AbbVie has an Earnings ESP of -0.31% as the Most Accurate Estimate of $2.86 per share is lower than the Zacks Consensus Estimate of $2.87. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV will report third-quarter 2023 results on Oct 27, before market open. | AbbVie ABBV will report third-quarter 2023 results on Oct 27, before market open. Factors to Consider AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. During the third quarter, AbbVie reported data from separate head-to-head studies, which showed that treatment with Skyrizi exhibited superiority against blockbuster drugs Otezla and Stelara in plaque psoriasis and Crohn’s disease indications, respectively. |
22119.0 | 2023-10-20 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-16 | 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. |
22120.0 | 2023-10-20 00:00:00 UTC | Earnings Preview: AbbVie (ABBV) Q3 Earnings Expected to Decline | ABBV | https://www.nasdaq.com/articles/earnings-preview%3A-abbvie-abbv-q3-earnings-expected-to-decline | nan | nan | AbbVie (ABBV) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This drugmaker is expected to post quarterly earnings of $2.87 per share in its upcoming report, which represents a year-over-year change of -21.6%.
Revenues are expected to be $13.69 billion, down 7.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.46% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AbbVie?
For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.31%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AbbVie 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 beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AbbVie doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Among the stocks in the Zacks Large Cap Pharmaceuticals industry, Merck (MRK) is soon expected to post earnings of $1.94 per share for the quarter ended September 2023. This estimate indicates a year-over-year change of +4.9%. This quarter's revenue is expected to be $15.37 billion, up 2.8% from the year-ago quarter.
The consensus EPS estimate for Merck has been revised 0.2% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 1.73%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Merck will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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 >>
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : 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. | AbbVie (ABBV) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for AbbVie? | For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. AbbVie (ABBV) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for AbbVie? | AbbVie (ABBV) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. |
22121.0 | 2023-10-20 00:00:00 UTC | 7 Dividend Stocks to Buy and Hold Forever and Ever | ABBV | https://www.nasdaq.com/articles/7-dividend-stocks-to-buy-and-hold-forever-and-ever | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recently, investors searching for dividend stocks to buy have seen more opportunity.
Some looking for income over a longer term horizon have flooded into the bond market. Yields there are rising, and some, like treasury bonds, are nearly risk free. That has taken the focus off of more traditional income sources, including dividend stocks.
That shift from dividend stocks to buy is reason enough to refocus on them as a buy-and-hold income source. Even though bond yields are nearing 5% they simply lack the price appreciation potential that equities possess.
Thus, stocks yielding an additional 3-4% or more through dividends are going to remain attractive. It’s a simple but powerful truth that makes the dividend stocks to buy here sound choices for the long-term investor who prefers income and upside potential.
Kellanova (K)
Source: JHVEPhoto / Shutterstock.com
Kellanova (NYSE:K) is a stock that benefits from the high profitability of snack foods.
The firm is a spinoff of Kellogg’s, renamed WK Kellogg (NYSE:KLG) following the rebrand. Kellanova keeps the high-growth, high-margin snack brands including Eggo and Pringles while WK Kellogg will depend on low-growth cereal brands including Corn Flakes, Mini Wheats, and Raisin Bran.
Kellanova is walking in the well-worn steps of brands that followed a similar path. Mondelez International (NYSE:MDLZ) is the best example. The snack business famous for Ritz, Triscuits, and other brands was spun out of Kraft and has done well throughout the inflationary era as consumers continue to spend on snacking.
Kellanova’s early success has been clear. Sales and earnings growth has been strong and it’s clear that profitability is there. A quick glance at earnings shows that EPS fell by 13.2% year-to-date. However, that is attributable to costs of the separation. EPS jumped by 8% in Q2 following the separation.
K is one of th better dividend stocks to buy out there with a 4.85% yield, which is quite high especially considering its overall growth.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie (NYSE:ABBV) has overcome a significant hurdle that often stifles pharmaceutical firms and gone from a dicey proposition to one of the better dividend stocks to buy in the space.
Humira’s decline will not be the death of AbbVie by any means. Instead, the firm has done what so many other drug makers couldn’t: It is replacing the waning revenues of a waning blockbuster with fresh product sales.
In the midst of all of that, AbbVie continues to reward shareholders with steady dividend income, providing uninterrupted growth since 1972.
To be sure, AbbVie isn’t out of the woods yet. Second-quarter revenues fell by 5% moving to $13.87 billion. AbbVie’s Immunology portfolio, anchored by Humira, fell by 5.5% to $6.8 billion. Humira accounted for $4.01 billion in revenues, down 25%, so its contribution and importance can’t be overstated.
However, Skyrizi and Rinvoq, both part of the immunology portfolio, are rapidly taking up the slack growing by 50% and 55%, respectively.
That has allowed AbbVie to increase its earnings outlook and should do a lot to allay greater fear moving forward.
Realty Income (O)
Source: Shutterstock
Realty Income (NYSE:O) just released its 640th consecutive monthly dividend on Oct. 10. That dividend has grown continuously since 1999 and yields more than 6% at present.
Consider also that O shares are expected to increase by roughly $15 beyond their current $50 price and it becomes easy to understand why it is one of the perenial dividend stocks to buy.
Realty Income is a REIT which could raise some eyebrows and cause concern. Commercial real estate is highly risky right now and Realty Income leases commercial sites.
However, it leases a lot of space to convenience store operators and pharmacies which are relatively insulated. It isn’t in office space and other rapidly shifting sectors.
The company is a dividend aristocrat, meaning it has paid a growing dividend for 25 consecutive years. That’s important, but so too is the fact that Realty Income engages in long-term leasing agreements.
Longer duration means the firm can better forecast financial expectations for the long term and provides stability in general.
Devon Energy (DVN)
Source: Jeff Whyte / Shutterstock.com
Devon Energy (NYSE:DVN) is arguably the riskiest investment on this list of dividend stocks. It is an American E&P oil firm with a beta of 2.33.
It’s clearly volatile but that volatility can lead to big rewards. A big part of that reward potential is provided through Devon Energy’s base-plus-variable dividend. I’ll get to that in a minute but let’s first look at the catalysts for the stock price to appreciate.
Energy prices are rising again. Rising Middle East tensions as Israel and Palestine wage war are escalating volatility in the region.
That threatens oil supplies and conversely provides an opportunity for Devon Energy. 2022 was a strong year for energy stocks which led all sectors. 2023 came in like a lamb but may head out like a lion.
That’s appealing for investors who like Devon Energy because it provides a base-plus-variable dividend that benefits when factors swing in favor of U.S. production.
The impetus to produce more oil domestically is becoming even clearer and that means DVN shares are in line to provide strong returns in the near term.
NextEra Energy (NEE)
Source: madamF / Shutterstock.com
NextEra Energy (NYSE:NEE) is a utilities stock which has been a detriment to its shares over the last few weeks.
The bond market has stolen the thunder from utilities firms as yields increased to highs not seen since 2007. Utilities are generally attractive for their low-risk income in the form of modest yield dividends.
Reliability and nearly risk free 2% returns were enough for investors. 5% yields from risk free treasury bonds invalidated their appeal.
One, bond yields are volatile at the moment. The markets are in flux and that has sent NEE up as I write this.
However, NextEra Energy is more than a simple consideration between utilities stocks versus bond yields. It is part utilities firm and part renewables firm.
Both segments of its business, Florida Power & Light and NextEra Energy Resources are the largest global entities within their respective niches. NextEra Energy’s growth has been strong and its dividend yields an additional 3.4%.
Pfizer (PFE)
Source: Manuel Esteban / Shutterstock.com
Pfizer’s (NYSE:PFE) story is fairly analogous to that of AbbVie: Its stock suddenly looks weaker because of a rapidly waning blockbuster. In Pfizer’s case, that declining giant is Comirnaty, the wildly successful Covid-19 vaccine.
Investors should be careful not to discount Pfizer based on 2021 and 2022 results.
Comirnaty’s success doubled Pfizer’s revenues from $41 billion in 2020 to $81 billion in 2021. The firm then eclipsed $100 billion for the first time ever in 2022. In 2023, it’s expected that Pfizer will hit $66 billion in revenues.
Don’t look at this as a decline. Look at it for what it is: An unpredictable windfall that will propel Pfizer to higher highs. If Pfizer were to have grown from $41 billion to $66 billion between 2020 and 2023 it would be a smash success.
Look at it that way because it’s flush with cash from the pandemic victory and reinvesting that money to revitalize its pipeline. That cash is also being directed to shareholders who receive a 5% dividend because investors at large have been blinded by Comirnaty’s decline.
Microsoft (MSFT)
Source: Peteri / Shutterstock.com
Microsoft (NASDAQ:MSFT) is not usually lumped in with dividend stocks. I’d venture to guess that many investors aren’t even aware that the tech giant pays a dividend. It does though, and that dividend’s yield is approaching 1% after having grown by more than 10% over the last 5 years.
That’s a bonus for investors who like Microsoft for its growth potential. In 2023, that’s been on display as Microsoft emerged as a leader in the generative AI boom through its massive investment in OpenAI and ChatGPT.
The returns on that investment will unfold for many years to come but it’s fair to anticipate that Microsoft will see strong returns.
The company prevailed over antitrust concerns and is now allowed to acquire Activision (NASDAQ:ATVI). That will boost its video game revenues by an expected 50% to $24 billion.
The company is probably going to have to pay a good chunk of that to the IRS who is coming after Microsoft for back taxes. Based on precedents like Coca-Cola (NYSE:KO), the IRS is likely to prevail meaning Microsoft will likely owe more than $30 billion.
However, Coca-Cola continues to appeal that 2020 decision meaning Microsoft won’t face a bill for quite some time if at all assuming it loses at all.
On the date of publication, Alex Sirois 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.
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) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has overcome a significant hurdle that often stifles pharmaceutical firms and gone from a dicey proposition to one of the better dividend stocks to buy in the space. Humira’s decline will not be the death of AbbVie by any means. In the midst of all of that, AbbVie continues to reward shareholders with steady dividend income, providing uninterrupted growth since 1972. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has overcome a significant hurdle that often stifles pharmaceutical firms and gone from a dicey proposition to one of the better dividend stocks to buy in the space. Humira’s decline will not be the death of AbbVie by any means. In the midst of all of that, AbbVie continues to reward shareholders with steady dividend income, providing uninterrupted growth since 1972. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has overcome a significant hurdle that often stifles pharmaceutical firms and gone from a dicey proposition to one of the better dividend stocks to buy in the space. Humira’s decline will not be the death of AbbVie by any means. In the midst of all of that, AbbVie continues to reward shareholders with steady dividend income, providing uninterrupted growth since 1972. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has overcome a significant hurdle that often stifles pharmaceutical firms and gone from a dicey proposition to one of the better dividend stocks to buy in the space. Humira’s decline will not be the death of AbbVie by any means. In the midst of all of that, AbbVie continues to reward shareholders with steady dividend income, providing uninterrupted growth since 1972. |
22122.0 | 2023-10-20 00:00:00 UTC | The Zacks Analyst Blog Highlights Visa, AbbVie, BHP Group, Caterpillar and Boston Scientific | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-visa-abbvie-bhp-group-caterpillar-and-boston-scientific | nan | nan | For Immediate Release
Chicago, IL – October 20, 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: Visa Inc. V, AbbVie Inc. ABBV, BHP Group Ltd. BHP, Caterpillar Inc. CAT and Boston Scientific Corp. BSX.
Here are highlights from Thursday’s Analyst Blog:
Top Research Reports for Visa, AbbVie and BHP
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 Visa Inc., AbbVie Inc. and BHP Group Ltd. 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 >>>
Visa shares have outperformed the Zacks Financial Transaction Services industry over the past year (+27.9% vs. +21.7%). The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues.
Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. The company's steady domestic volumes and transactions rise will aid its overall performance. A strong cash position enables it to boost shareholder value.
However, high operating expenses stress its margins. Ramped-up client incentives will dent the top line. Its volumes are likely to see diminishing effects of the Russia-Ukraine conflict. As such, this stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Shares of AbbVie have gained +8.7% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +27.8%. The company 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. However, there are 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.
(You can read the full research report on AbbVie here >>>)
Shares of BHP have gained +25.4% over the past year against the Zacks Mining - Miscellaneous industry’s gain of +26.7%. Iron ore prices had earlier lost steam on weak demand in China. Hopes of a pickup in demand in China, owing to a fresh round of stimulus measures for new infrastructure projects, helped lift up prices lately.
Going forward, iron ore prices will be supported by demand in the automotive sector, infrastructure and housing market. Copper and nickel prices will be fueled by demand for electric vehicles.
BHP’s investment in projects with a focus on future--facing commodities like copper, nickel and potash will aid growth. Efforts to make operations more efficient through technology will drive earnings.
(You can read the full research report on BHP here >>>)
Other noteworthy reports we are featuring today include Caterpillar Inc. and Boston Scientific Corp.
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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: Visa Inc. V, AbbVie Inc. ABBV, BHP Group Ltd. BHP, Caterpillar Inc. CAT and Boston Scientific Corp. BSX. Here are highlights from Thursday’s Analyst Blog: Top Research Reports for Visa, AbbVie and BHP 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 Visa Inc., AbbVie Inc. and BHP Group Ltd. | Stocks recently featured in the blog include: Visa Inc. V, AbbVie Inc. ABBV, BHP Group Ltd. BHP, Caterpillar Inc. CAT and Boston Scientific Corp. BSX. Today's Research Daily features new research reports on 16 major stocks, including Visa Inc., AbbVie Inc. and BHP Group Ltd. Click to get this free report Visa Inc. (V) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Thursday’s Analyst Blog: Top Research Reports for Visa, AbbVie and BHP 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 Visa Inc., AbbVie Inc. and BHP Group Ltd. Click to get this free report Visa Inc. (V) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : 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: Visa Inc. V, AbbVie Inc. ABBV, BHP Group Ltd. BHP, Caterpillar Inc. CAT and Boston Scientific Corp. BSX. Here are highlights from Thursday’s Analyst Blog: Top Research Reports for Visa, AbbVie and BHP 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 Visa Inc., AbbVie Inc. and BHP Group Ltd. |
22123.0 | 2023-10-19 00:00:00 UTC | Noteworthy ETF Inflows: IWY, TSLA, LLY, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-iwy-tsla-lly-abbv | 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 Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $431.9 million dollar inflow -- that's a 6.5% increase week over week in outstanding units (from 42,400,000 to 45,150,000). Among the largest underlying components of IWY, in trading today Tesla Inc (Symbol: TSLA) is down about 8.1%, Eli Lilly (Symbol: LLY) is off about 4%, and AbbVie Inc (Symbol: ABBV) is lower by about 3.1%. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average:
Looking at the chart above, IWY's low point in its 52 week range is $117.10 per share, with $165.41 as the 52 week high point — that compares with a last trade of $156.66. 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 ».
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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 IWY, in trading today Tesla Inc (Symbol: TSLA) is down about 8.1%, Eli Lilly (Symbol: LLY) is off about 4%, and AbbVie Inc (Symbol: ABBV) is lower by about 3.1%. 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 IWY, in trading today Tesla Inc (Symbol: TSLA) is down about 8.1%, Eli Lilly (Symbol: LLY) is off about 4%, and AbbVie Inc (Symbol: ABBV) is lower by about 3.1%. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $117.10 per share, with $165.41 as the 52 week high point — that compares with a last trade of $156.66. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of IWY, in trading today Tesla Inc (Symbol: TSLA) is down about 8.1%, Eli Lilly (Symbol: LLY) is off about 4%, and AbbVie Inc (Symbol: ABBV) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $431.9 million dollar inflow -- that's a 6.5% increase week over week in outstanding units (from 42,400,000 to 45,150,000). For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $117.10 per share, with $165.41 as the 52 week high point — that compares with a last trade of $156.66. | Among the largest underlying components of IWY, in trading today Tesla Inc (Symbol: TSLA) is down about 8.1%, Eli Lilly (Symbol: LLY) is off about 4%, and AbbVie Inc (Symbol: ABBV) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $431.9 million dollar inflow -- that's a 6.5% increase week over week in outstanding units (from 42,400,000 to 45,150,000). Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. |
22124.0 | 2023-10-19 00:00:00 UTC | 7 Dividend Aristocrats to Batten Down the Hatches | ABBV | https://www.nasdaq.com/articles/7-dividend-aristocrats-to-batten-down-the-hatches | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With market uncertainty practically being the only form of certainty available, investors should consider dividend aristocrats. By definition, companies under this category belong in the S&P 500 index which consistently raises their dividends for at least the past 25 years. It takes dedication and some spattering of luck to get here, which makes them valuable investments.
For starters, market participants value their consistent and generally predictable approach to passive income. Yes, you can find several entities that pay dividends. However, they’re not nearly as reliable as say U.S. government bonds. However, with dividend aristocrats, you receive a good portion of confidence along with the possibility of solid capital gains.
Secondly, dividend aristocrats have every incentive in the world to keep their status. As stated earlier, it’s a long road to achieve the title. Even more importantly for investors during this troubled hour, no administration wants to be known as the one that gave it all up. That’s a stain that can stay with an executive for their entire lives and then some.
On that utterly dark and cynical note, below are the dividend aristocrats to batten down the hatches.
Lowe’s (LOW)
Source: Helen89 / Shutterstock.com
Fundamentally, Lowe’s (NYSE:LOW) represents the “small ball” among dividend aristocrats. When you put LOW in your lineup, you’re not trying to launch one into the upper deck. Rather, its job is to put the ball safely into play, moving the runner from first to second. Subsequently, Lowe’s primary purpose in life (as it pertains to your portfolio) is to get on base.
As a retailer of various home improvement and renovation products, Lowe’s doesn’t exactly offer the most look-at-me valuation metrics. Instead, its core attributes focus on consistent annual profitability, helped by its above-sector-average trailing-year net margin of 6.48%. That said, it does feature an impressive three-year revenue growth rate of 18.4%, above 80.44% of rivals.
For passive income, Lowe’s carries a forward yield of 2.22%. Notably, it commands 50 years of consecutive dividend increases. Also, its payout ratio sits at 30.59%, providing confidence for yield sustainability. Analysts rate LOW a moderate buy with a $248.68 target, implying almost 26% upside potential.
Colgate-Palmolive (CL)
Source: monticello / Shutterstock.com
In some ways, Colgate-Palmolive (NYSE:CL) is a utility player for your portfolio. By definition, utility players don’t have the offensive prowess of regular, everyday starters. However, they may offer pivotal importance during a long season thanks to their ability to play multiple defensive roles. And that’s basically what you get with Colgate-Palmolive.
Known for its dental care products, Colgate isn’t exactly lighting up the charts. Since the January opener, it’s actually down 9%. And over the past five years, it only moved up about 12%, which isn’t particularly exciting by itself. However, CL benefits from consistent profitability, something you’d expect from one of the dividend aristocrats. Also, it features a superior return on asset (ROA) of 9.34%, above nearly 84% of its peers.
In terms of passive income, Colgate features a forward yield of 2.66%. Also, it commands 61 years of consecutive dividend increases, thus generating significant trust. Analysts peg CL as a moderate buy with an $80.77 target, implying just over 12% growth.
PepsiCo (PEP)
Source: FotograFFF / Shutterstock
A solid leadoff hitter, PepsiCo (NASDAQ:PEP) appeals to patient investors because it’s likely just going through a temporary rough patch. Since the start of the year, PEP lost almost 11% of its equity value. That alone sounds unappealing. However, it’s important to consider the context. Last week, PepsiCo beat bottom-line estimates, producing earnings per share of $2.25 versus the $2.17 expected.
Investors have come to expect this kind of consistency from the soft drink and snacks giant. More upside performance financially could be on the way. As pressures against the consumer economy increase, PepsiCo may benefit from the trade-down effect. Basically, people will trade down from eating out at food and beverage establishments and head to the grocery store.
For passive income, the company carries a forward yield of 3.16%. Also, it enjoys 52 years of annual dividend increases, making PEP one of the top dividend aristocrats. Lastly, analysts rate PEP a moderate buy with a $189.13 target, implying 18% upside.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
To further extend the baseball analogy, oil and gas giant Chevron (NYSE:CVX) effectively plays the two-hole in the lineup. Its main job is to move the leadoff runner into scoring position while of course avoiding grounding into double plays. Some of the best two-hole batters feature characteristics of a leadoff and power hitter, like the San Diego Padres’ Manny Machado.
Fundamentally, Chevron is essentially batting on a hitter’s count. Early last month, Saudi Arabia and Russia – both powerhouse oil producers – agreed to voluntarily extend their production cuts through the end of this year. Plus, with geopolitical tensions and flashpoints raging, you’d figure that hydrocarbon supply will run low. Therefore, CVX is one of the dividend aristocrats cynically positioned to benefit.
Speaking of dividends, Chevron offers a forward yield of 3.6%. While that’s a bit lower than the energy sector average of 4.24%, the company also commands 37 years of consecutive dividend increases. Also, analysts rate CVX a moderate buy with a $190.62 target, implying nearly 14% growth.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
A pharmaceutical giant, AbbVie (NYSE:ABBV) might fit into the three-hole scheme regarding dividend aristocrats for your portfolio. Fundamentally, the company offers exceptional relevance for its myriad therapeutics, including Humira for a range of autoimmune diseases. However, with its buyout of Allergan, AbbVie stands to benefit handsomely from certain social dynamics.
With the advent and wide proliferation of video-sharing platforms like YouTube and TikTok, young generations are obsessed with their youth and the physical vitality that goes with it. I’m betting that Generations Y, Z, and whatever comes after will have an extraordinarily difficult time letting their youthfulness go. So, I anticipate a massive spike in long-term demand for ABBV stock.
While you’re waiting, AbbVie offers a forward yield of 3.97%, well above the healthcare average yield of 1.58%. Also, it commands 51 years of consecutive dividend increases. Its payout ratio of 53.2% — while somewhat elevated – isn’t bad at all in the grand scheme of things. Analysts rate ABBV a consensus moderate buy with a $169.67 price target, projecting nearly 14% upside.
Essex Property Trust (ESS)
Source: Vitalii Vodolazskyi / Shutterstock
For the last two ideas on this list of dividend aristocrats, I’m going to label them as pinch hitters. They could do something special or they could fall flat; it’s difficult to say. First up, we have Essex Property Trust (NYSE:ESS). Structured as a real estate investment trust (REIT), Essex invests in apartments, primarily on the West Coast of the U.S.
On paper, that’s a great (cynical) business. Millions of people need places to live and they’ve been priced out of residential real estate. However, there’s also a certain point where the consumer economy just can’t take any more. That might be the reason why the implied volatility (IV) curve for ESS stock options indicates more traders hedging for downside risk than for upside reward.
Still, if you don’t believe in an upcoming correction in the broader residential living space ecosystem, Essex offers a forward yield of 4.22%. However, the payout ratio stands at 152% so you want to be careful. Even analysts peg ESS a hold though their $247.71 target implies 13% growth.
Amcor (AMCR)
Source: Shutterstock
Another pinch hitter or batter near the bottom of the order, Amcor (NYSE:AMCR) represents a long shot among dividend aristocrats. Narrative-wise, I appreciate the speculative proposition. As a global packaging company, Amcor enjoys broad relevance. It provides flexible packaging, rigid containers, and specialty cartons for food, beverage, pharmaceutical, medical-device, home/personal care, and other product industries.
Unfortunately, it hasn’t translated to wins in the charts. Since the start of the year, AMCR lost almost 26% of its equity value. However, for patient investors, Amcor’s time to shine could soon materialize. Essentially, the company may benefit downwind from the trade-down effect. As people stop eating out at restaurants and drinking coffee at pricey cafes, demand for packaging should increase.
We’re already seeing the rise in private-label products, which boosts Amcor’s revenue. The same thing could happen in the U.S. market. While you’re waiting for the narrative to pan out, AMCR features a forward yield of 5.54%. To be sure, analysts find AMCR risky, pegging it a hold. However, if you want to speculate on a forward-looking catalyst, Amcor is enticing.
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 post 7 Dividend Aristocrats to Batten Down the Hatches 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) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) might fit into the three-hole scheme regarding dividend aristocrats for your portfolio. However, with its buyout of Allergan, AbbVie stands to benefit handsomely from certain social dynamics. So, I anticipate a massive spike in long-term demand for ABBV stock. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) might fit into the three-hole scheme regarding dividend aristocrats for your portfolio. However, with its buyout of Allergan, AbbVie stands to benefit handsomely from certain social dynamics. So, I anticipate a massive spike in long-term demand for ABBV stock. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) might fit into the three-hole scheme regarding dividend aristocrats for your portfolio. However, with its buyout of Allergan, AbbVie stands to benefit handsomely from certain social dynamics. So, I anticipate a massive spike in long-term demand for ABBV stock. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) might fit into the three-hole scheme regarding dividend aristocrats for your portfolio. However, with its buyout of Allergan, AbbVie stands to benefit handsomely from certain social dynamics. So, I anticipate a massive spike in long-term demand for ABBV stock. |
22125.0 | 2023-10-19 00:00:00 UTC | Is AbbVie Stock Too Pricey to Touch Right Now? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-too-pricey-to-touch-right-now | nan | nan | For a company in the midst of a transition away from the medicine that made it a star performer over the last decade, AbbVie's (NYSE: ABBV) valuation looks surprisingly high. Why is the market pricing a business, which is barely expecting much growth over the next couple of years, so expensively? The market's expectations, it seems, are a bit out of whack with the company's fundamentals.
But that doesn't necessarily mean that you need to avoid adding to your position right now. Here's what you need to know about this stock and its pricing in light of its upcoming opportunities and current struggles.
What's driving its valuation?
At the moment, AbbVie's price-to-earnings (P/E) ratio is 31. The average P/E for the pharmaceutical industry is 19. There are a few possibilities as to why a stock's valuation could be higher than its peers, and it's important to understand them to assess whether AbbVie is too overpriced to buy.
For one, investors could be anticipating that its rate of growth will be faster than average. In this case, that seems unlikely. Management isn't anticipating significant top-line growth until 2025, and for the rest of the decade after that, it's estimating a compound annual growth rate (CAGR) of 9% at most. Analysts on Wall Street concur, finding on average that 2022's total revenue of $58 billion will decline this year and next year, rebounding to $56 billion by the end of 2025. The culprit for falling sales isn't anything new.
Since the start of this year, AbbVie's smash-hit arthritis drug Humira has no longer been protected by its manufacturing exclusivity protections, so its market share is getting devoured by generic copies. Those sales won't ever be coming back. Furthermore, analysts expect oncology sales to follow a similar trajectory for the same set of reasons, with sales expected to pick up again in the latter part of the decade. So, expectations for near-term growth are low and guarded for the medium term.
There could also be key upcoming catalysts that are expected to increase the value of the company by proving or demonstrating important factors, like the efficacy of a drug or the utility of a technology platform. In 2024, the business could obtain regulatory approval for as many as seven of its programs. It'll also report data from five of its late-stage programs.
The catch is that nearly all the potential approvals and data readouts are for expanding the indications of medicines it already has on the market. In other words, there won't be many headlines about groundbreaking new drug launches, and the revenue it earns from the new indications is likely to be lower than the revenue from the original indications the medicines were approved to treat. After all, pharma companies formulate their pipeline strategies by advancing the programs they think will be the largest and most profitable markets first. Thus, approvals for follow-on indications are not major catalyst events, even if they can drive some sales growth.
While we all know that past performance doesn't predict future returns, strong historical performance does tend to give people more confidence when it comes to making an investment, so a good track record can also keep share prices up somewhat. Here, it's easy to see why someone might think that AbbVie might be worth paying a bit more for. Over the last 10 years, its total return of 322% trounced the market's return of 179%, and its trailing-12-month (TTM) diluted earnings per share (EPS) rose by 90% to reach $4.86. Humira was a key driver for that expansion, but moving forward, investors can't count on it.
Finally, it could also be the case that the market is incorrectly valuing the stock as a result of investors believing improbable narratives about growth. The higher the valuation, the more likely it is that hype is a major driver. But in AbbVie's case, its P/E multiple isn't unreasonably high. Plus, there's not exactly anything abnormally promising in the pipeline, nor is the popular narrative showing signs of frothiness.
Take a long-term perspective if you're interested in buying
So, AbbVie's valuation does indeed look to be a bit high on the basis of what it will probably accomplish over the next two or three years. Bargain-hunting investors should look elsewhere for a deal, as this stock isn't one right now. But there's a factor we haven't covered yet that's actually the piece that ties everything together: the dividend.
The company's dividend yields 4%. It has TTM free cash flow (FCF) of approximately $25 billion. Over the past five years, its payout climbed by 54%. It will have absolutely no problem with continuing to pay and increase its dividend for the foreseeable future, even as its top line shrinks a bit in the near term. It takes rock-solid financial stability for a business to do that, and such stability is exactly what's keeping AbbVie's valuation propped up as it enters a transitional period where old revenue sources are drying up, and new ones are coming online.
With so many programs in the pipeline approaching maturity -- whether they're expansions of a commercialized drug's indications or something new altogether -- there's little chance of AbbVie's fortunes falling into hard times. Therefore, if you're inclined to hold this stock for the long term to capture its dividend as well as its return to growth past the midpoint of the decade, it's not too pricey to touch whatsoever. The main challenge will be to ride out any turbulence from the likely downbeat earnings over the next couple of years.
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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 so many programs in the pipeline approaching maturity -- whether they're expansions of a commercialized drug's indications or something new altogether -- there's little chance of AbbVie's fortunes falling into hard times. For a company in the midst of a transition away from the medicine that made it a star performer over the last decade, AbbVie's (NYSE: ABBV) valuation looks surprisingly high. At the moment, AbbVie's price-to-earnings (P/E) ratio is 31. | For a company in the midst of a transition away from the medicine that made it a star performer over the last decade, AbbVie's (NYSE: ABBV) valuation looks surprisingly high. At the moment, AbbVie's price-to-earnings (P/E) ratio is 31. There are a few possibilities as to why a stock's valuation could be higher than its peers, and it's important to understand them to assess whether AbbVie is too overpriced to buy. | 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. * 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 a company in the midst of a transition away from the medicine that made it a star performer over the last decade, AbbVie's (NYSE: ABBV) valuation looks surprisingly high. | * 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 a company in the midst of a transition away from the medicine that made it a star performer over the last decade, AbbVie's (NYSE: ABBV) valuation looks surprisingly high. At the moment, AbbVie's price-to-earnings (P/E) ratio is 31. |
22126.0 | 2023-10-19 00:00:00 UTC | Is Johnson & Johnson Still a Good Dividend Stock to Buy? | ABBV | https://www.nasdaq.com/articles/is-johnson-johnson-still-a-good-dividend-stock-to-buy-0 | nan | nan | It's been a transformational year for Johnson & Johnson (NYSE: JNJ). This August, the company spun off its consumer health division into a new company called Kenvue (NYSE: KVUE).
Now that Kenvue sells Listerine, Q-tips, and Tylenol, investors are concerned that the steady dividend raises Johnson & Johnson, or J&J, is famous for could come to an end.
Recently, J&J issued its first quarterly-earnings report since the Kenvue spinoff, and the results were better than expected. Let's look closer at the new, slimmer version of the healthcare juggernaut to see if it deserves a place in your income-generating portfolio.
Still beating expectations
The recent consumer-health separation might be the biggest shake-up of the company's 137-year history, but it hasn't hampered its ability to outperform expectations. Total sales rose 6.8% year over year to $21.35 billion, or $310 million more than Wall Street analysts had predicted. On the bottom line, adjusted earnings that reached $2.66 per share were $0.14 higher than consensus estimates.
In addition to beating Wall Street's estimates, J&J raised its own guidance regarding sales and earnings for the full year. The company expects to report total sales that rise 7.7% at the midpoint of its guided range. Adjusted earnings per share (EPS) are expected to rise 13% at the midpoint of management's guided range.
Johnson & Johnson raised its dividend payout for the 61st consecutive year this April, and further raises seem highly likely in the foreseeable future. Adjusted earnings are expected to reach $10.10 per share at the midpoint of management's guided range this year. That's more than enough to support a dividend payout currently set at just $4.76 per share.
Image source: Getty Images.
Riskier than usual
Management's estimates for 2023 are positive, and it's highly likely the company will raise its dividend payout again in 2024. That said, there could be more challenges up ahead than investors anticipate.
Stelara, a biologic drug for the treatment of psoriasis and bowel inflammation, is a key growth driver for Johnson & Johnson right now. Third-quarter sales surged 16.9% year over year to an annualized $11.5 billion, but this growth driver could run out of steam in 2025.
In September, a key patent protecting Stelara's market exclusivity in the United States expired. A few months earlier, Johnson & Johnson reached an agreement with Amgen to delay launching a biosimilar version of Stelara until January of 2025.
Before biosimilar competition begins heating up for Stelara, J&J could have to lower prices in the U.S. for this and two other top-selling products. Stelara, Xarelto, a blood thinner, and Imbruvica, a blood cancer drug that J&J sells in partnership with AbbVie, are on a list of top-selling treatments eligible next year for new drug-price negotiations with Medicare.
Still a buy?
At recent prices, J&J offers investors a 3% yield and a good chance to see steady dividend raises throughout their retirement years. Whether it's a good stock to buy right now, though, depends on the time frame you're working with.
With two-year treasury notes offering a guaranteed 5.2% yield at recent prices, the 3% yield J&J stock offers isn't too attractive unless the time frame you're working with is a long one. Loss of exclusivity for Stelara and negotiations with Medicare probably won't stop J&J from raising its dividend payout over the next several years, but these factors could significantly slow the pace of those payout bumps.
This is still a great stock to buy for investors with a lot of time to let the payout grow before they need to begin using the income their portfolio generates for everyday expenses. If you're already retired, or getting close, there are probably better dividend stocks to buy right now.
10 stocks we like better than Johnson & Johnson
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson and Kenvue. 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. | Stelara, Xarelto, a blood thinner, and Imbruvica, a blood cancer drug that J&J sells in partnership with AbbVie, are on a list of top-selling treatments eligible next year for new drug-price negotiations with Medicare. In addition to beating Wall Street's estimates, J&J raised its own guidance regarding sales and earnings for the full year. At recent prices, J&J offers investors a 3% yield and a good chance to see steady dividend raises throughout their retirement years. | Stelara, Xarelto, a blood thinner, and Imbruvica, a blood cancer drug that J&J sells in partnership with AbbVie, are on a list of top-selling treatments eligible next year for new drug-price negotiations with Medicare. The company expects to report total sales that rise 7.7% at the midpoint of its guided range. Adjusted earnings are expected to reach $10.10 per share at the midpoint of management's guided range this year. | Stelara, Xarelto, a blood thinner, and Imbruvica, a blood cancer drug that J&J sells in partnership with AbbVie, are on a list of top-selling treatments eligible next year for new drug-price negotiations with Medicare. Johnson & Johnson raised its dividend payout for the 61st consecutive year this April, and further raises seem highly likely in the foreseeable future. 10 stocks we like better than Johnson & Johnson When our analyst team has a stock tip, it can pay to listen. | Stelara, Xarelto, a blood thinner, and Imbruvica, a blood cancer drug that J&J sells in partnership with AbbVie, are on a list of top-selling treatments eligible next year for new drug-price negotiations with Medicare. Stelara, a biologic drug for the treatment of psoriasis and bowel inflammation, is a key growth driver for Johnson & Johnson right now. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! |
22127.0 | 2023-10-19 00:00:00 UTC | Is Invesco Pharmaceuticals ETF (PJP) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-invesco-pharmaceuticals-etf-pjp-a-strong-etf-right-now | nan | nan | A smart beta exchange traded fund, the Invesco Pharmaceuticals ETF (PJP) debuted on 06/23/2005, and offers broad exposure to the Health Care ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 Invesco. PJP has been able to amass assets over $260.81 million, making it one of the average sized ETFs in the Health Care ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index.
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.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.56% for PJP, making it on par with most peer products in the space.
PJP's 12-month trailing dividend yield is 1.04%.
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.
This ETF has heaviest allocation in the Healthcare sector - about 100% of the portfolio.
Taking into account individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of the fund's 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
The ETF has lost about -8.10% so far this year and is down about -2.67% in the last one year (as of 10/19/2023). In the past 52-week period, it has traded between $70.78 and $81.07.
The fund has a beta of 0.65 and standard deviation of 16.32% for the trailing three-year period, which makes PJP a high risk choice in this particular space. With about 25 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Pharmaceuticals ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index and the VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index. IShares U.S. Pharmaceuticals ETF has $355.38 million in assets, VanEck Pharmaceutical ETF has $423.03 million. IHE has an expense ratio of 0.40% and PPH charges 0.36%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
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. | Taking into account individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of the fund's 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. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. | 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. Taking into account individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of the fund's total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV). A smart beta exchange traded fund, the Invesco Pharmaceuticals ETF (PJP) debuted on 06/23/2005, and offers broad exposure to the Health Care ETFs category of the market. | 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. Taking into account individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of the fund's total assets, followed by Eli Lilly & Co (LLY) and Abbvie Inc (ABBV). A smart beta exchange traded fund, the Invesco Pharmaceuticals ETF (PJP) debuted on 06/23/2005, and offers broad exposure to the Health Care ETFs category of the market. | Taking into account individual holdings, Amgen Inc (AMGN) accounts for about 6.45% of the fund's 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. A smart beta exchange traded fund, the Invesco Pharmaceuticals ETF (PJP) debuted on 06/23/2005, and offers broad exposure to the Health Care ETFs category of the market. |
22128.0 | 2023-10-18 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-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 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. |
22129.0 | 2023-10-18 00:00:00 UTC | AbbVie Inc. (ABBV) is Attracting Investor Attention: Here is What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-attracting-investor-attention%3A-here-is-what-you-should-know-10 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drugmaker have returned -2.8%, compared to the Zacks S&P 500 composite's -1.6% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. The key question now is: What could be the stock's future direction?
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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AbbVie is expected to post earnings of $2.87 per share for the current quarter, representing a year-over-year change of -21.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The consensus earnings estimate of $11.03 for the current fiscal year indicates a year-over-year change of -19.9%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.03 indicates a change of -0.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
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 #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AbbVie, the consensus sales estimate for the current quarter of $13.69 billion indicates a year-over-year change of -7.6%. For the current and next fiscal years, $53.56 billion and $53.59 billion estimates indicate -7.7% and +0.1% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.87 billion in the last reported quarter, representing a year-over-year change of -4.9%. EPS of $2.91 for the same period compares with $3.37 a year ago.
Compared to the Zacks Consensus Estimate of $13.52 billion, the reported revenues represent a surprise of +2.54%. The EPS surprise was +4.3%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty 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. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. AbbVie is expected to post earnings of $2.87 per share for the current quarter, representing a year-over-year change of -21.6%. | Last Reported Results and Surprise History AbbVie reported revenues of $13.87 billion in the last reported quarter, representing a year-over-year change of -4.9%. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. | 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 #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. | 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 #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. |
22130.0 | 2023-10-17 00:00:00 UTC | Takeda Settles Tax Dispute With Irish Revenue Commissioners Over Break Fee Received By Shire | ABBV | https://www.nasdaq.com/articles/takeda-settles-tax-dispute-with-irish-revenue-commissioners-over-break-fee-received-by | nan | nan | (RTTNews) - Takeda (TAK) said it agreed with the Irish Revenue Commissioners to settle a tax assessment related to the treatment of an acquisition break fee received by Shire plc in October 2014 from AbbVie Inc., for 130 million euros, resulting in a tax expense reduction of about JPY 63 billion for Takeda.
On November 28, 2018, Shire received a tax assessment from the Irish Revenue for 398 million euros in relation to the US$1.635 billion break fee Shire received in connection with the terminated offer by AbbVie to acquire Shire in 2014.
Takeda appealed the assessment, and in late 2020 a hearing took place before the Irish Tax Appeals Commission or TAC.
On July 30, 2021, Takeda received a ruling on the matter, with the TAC ruling in favor of Irish Revenue. While Takeda intended to appeal the TAC ruling and continued to assert that the AbbVie break fee was not subject to Irish tax, Takeda recorded a tax provision for the case in the fiscal quarter ended June 30, 20211. Subsequently, the TAC was required to rehear the matter in 2023. The re-hearing process was still ongoing when the parties reached the agreement, Takeda said in a statement.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Takeda (TAK) said it agreed with the Irish Revenue Commissioners to settle a tax assessment related to the treatment of an acquisition break fee received by Shire plc in October 2014 from AbbVie Inc., for 130 million euros, resulting in a tax expense reduction of about JPY 63 billion for Takeda. While Takeda intended to appeal the TAC ruling and continued to assert that the AbbVie break fee was not subject to Irish tax, Takeda recorded a tax provision for the case in the fiscal quarter ended June 30, 20211. On November 28, 2018, Shire received a tax assessment from the Irish Revenue for 398 million euros in relation to the US$1.635 billion break fee Shire received in connection with the terminated offer by AbbVie to acquire Shire in 2014. | (RTTNews) - Takeda (TAK) said it agreed with the Irish Revenue Commissioners to settle a tax assessment related to the treatment of an acquisition break fee received by Shire plc in October 2014 from AbbVie Inc., for 130 million euros, resulting in a tax expense reduction of about JPY 63 billion for Takeda. On November 28, 2018, Shire received a tax assessment from the Irish Revenue for 398 million euros in relation to the US$1.635 billion break fee Shire received in connection with the terminated offer by AbbVie to acquire Shire in 2014. While Takeda intended to appeal the TAC ruling and continued to assert that the AbbVie break fee was not subject to Irish tax, Takeda recorded a tax provision for the case in the fiscal quarter ended June 30, 20211. | (RTTNews) - Takeda (TAK) said it agreed with the Irish Revenue Commissioners to settle a tax assessment related to the treatment of an acquisition break fee received by Shire plc in October 2014 from AbbVie Inc., for 130 million euros, resulting in a tax expense reduction of about JPY 63 billion for Takeda. On November 28, 2018, Shire received a tax assessment from the Irish Revenue for 398 million euros in relation to the US$1.635 billion break fee Shire received in connection with the terminated offer by AbbVie to acquire Shire in 2014. While Takeda intended to appeal the TAC ruling and continued to assert that the AbbVie break fee was not subject to Irish tax, Takeda recorded a tax provision for the case in the fiscal quarter ended June 30, 20211. | (RTTNews) - Takeda (TAK) said it agreed with the Irish Revenue Commissioners to settle a tax assessment related to the treatment of an acquisition break fee received by Shire plc in October 2014 from AbbVie Inc., for 130 million euros, resulting in a tax expense reduction of about JPY 63 billion for Takeda. While Takeda intended to appeal the TAC ruling and continued to assert that the AbbVie break fee was not subject to Irish tax, Takeda recorded a tax provision for the case in the fiscal quarter ended June 30, 20211. On November 28, 2018, Shire received a tax assessment from the Irish Revenue for 398 million euros in relation to the US$1.635 billion break fee Shire received in connection with the terminated offer by AbbVie to acquire Shire in 2014. |
22131.0 | 2023-10-17 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy if There's a Stock Market Sell-Off | ABBV | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-if-theres-a-stock-market-sell-off-9 | nan | nan | Industries with endless demand are great places to find dividend stocks. Healthcare might be the best example of this. No matter how much technology changes, the need to prevent and treat disease will never disappear. Sure, new treatments and solutions can change the game anytime, but the best players are the companies continually creating and innovating. How do you spot them? Well, you can look at those that have been doing it for a while already.
These blue chip stocks don't go on sale often, but you can circle them for the next time volatility hits Wall Street. Here are three fantastic healthcare stocks to target during the next market sell-off.
1. AbbVie
Pharmaceutical company AbbVie (NYSE: ABBV) was formed when its sister company, Abbott Laboratories, spun it off in 2013. AbbVie's dividend roots go back decades before the split, and the company has raised its dividend every year since becoming its own corporation. Investors enjoyed robust years of dividend growth on the back of Humira, AbbVie's top drug. It spent years as a global top seller, and AbbVie's total sales doubled over the past decade.
But Humira recently lost patent exclusivity, and the arrival of generic competition is pressuring sales. Analysts expect revenue to decline to $53 billion this year, down from $58 billion in 2022. However, AbbVie's dividend payout ratio is only 41%, so investors shouldn't worry about a potential dividend cut. The company has successful and emerging products to help backfill lost Humira sales, but you can see that this process will effectively stunt earnings growth for the time being.
ABBV PE Ratio (Forward) data by YCharts
It's hard to justify a very high valuation without earnings growth, so the stock's price tag at 13 times earnings could come under pressure in a shaky market. Investors should monitor the stock and look for a dividend yield they can live with (it's currently 4%) until AbbVie shows signs of returning growth.
2. Stryker
Stryker (NYSE: SYK) has its roots in healthcare. The company sells various medical equipment, tools, supplies, and hospital services. It also has a segment that designs orthopedics for patients. Stryker has been at it for a long time. The company has paid and raised its dividend annually for 30 years running.
Those looking for massive dividends today might not like what Stryker offers -- the dividend yields just 1.1% at today's share price. However, Stryker has relentlessly increased the payout to investors. Over the past decade, the average dividend raise has been over 11%, so long-term investors are seeing those dividends stack up. Additionally, the payout ratio is 45%, leaving plenty of room for future raises without factoring in earnings growth, which analysts believe will come in around 9% annually.
SYK PE Ratio (Forward) data by YCharts
The stock's biggest drawback is the valuation it trades at. It's fallen some, but at more than 25 times earnings, shares trade at a hefty PEG ratio of about 3. Ideally, investors would get shares at a P/E ratio under 20, but it may take a broader market sell-off to make that a reality. Again, great companies rarely come cheap.
3. Cardinal Health
Pharmaceutical product and medical supplies distributor Cardinal Health (NYSE: CAH) is the logistical core of healthcare in the United States. There are thousands of hospitals, labs, and care offices in America. Suppliers can't efficiently deliver products to all these locations, so a distributor like Cardinal Health steps in. It buys and stocks large quantities of items from manufacturers and then provides products to these care locations as needed.
Cardinal Health is one of the largest companies in the world, with more than $200 billion in annual revenue. It can operate at a razor-thin profit margin to keep competition out, and the massive amounts of business it does mean that the small profits it makes add up to significant cash streams that flow down to shareholders. The company has paid and raised its dividend for 28 consecutive years, and the payout ratio is a tiny 22%. There is plenty of room for years of increases.
CAH PE Ratio (Forward) data by YCharts
Shares of Cardinal Health are an exception on this list. Today's P/E of 14 looks attractive, considering analysts believe earnings will grow more than 14% annually moving forward. The stock's dividend yield isn't huge, though, at 2.1%, so some investors may wait for a lower price (and, therefore, a higher dividend yield). However, shares could be a solid buy for dividends and share price appreciation.
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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. | Investors should monitor the stock and look for a dividend yield they can live with (it's currently 4%) until AbbVie shows signs of returning growth. AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) was formed when its sister company, Abbott Laboratories, spun it off in 2013. AbbVie's dividend roots go back decades before the split, and the company has raised its dividend every year since becoming its own corporation. | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) was formed when its sister company, Abbott Laboratories, spun it off in 2013. AbbVie's dividend roots go back decades before the split, and the company has raised its dividend every year since becoming its own corporation. Investors enjoyed robust years of dividend growth on the back of Humira, AbbVie's top drug. | AbbVie's dividend roots go back decades before the split, and the company has raised its dividend every year since becoming its own corporation. ABBV PE Ratio (Forward) data by YCharts It's hard to justify a very high valuation without earnings growth, so the stock's price tag at 13 times earnings could come under pressure in a shaky market. AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) was formed when its sister company, Abbott Laboratories, spun it off in 2013. | AbbVie's dividend roots go back decades before the split, and the company has raised its dividend every year since becoming its own corporation. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) was formed when its sister company, Abbott Laboratories, spun it off in 2013. |
22132.0 | 2023-10-17 00:00:00 UTC | AbbVie's DLBCL Drug EPKINLY, Crohn's Disease Drug RINVOQ Get Health Canada Approval | ABBV | https://www.nasdaq.com/articles/abbvies-dlbcl-drug-epkinly-crohns-disease-drug-rinvoq-get-health-canada-approval | nan | nan | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved EPKINLY (epcoritamab injection/epcoritamab for injection) to treat Relapsed or Refractory Diffuse Large B-Cell Lymphoma or DLBCL, as well as RINVOQ (upadacitinib) to treat moderately to severely active Crohn's Disease.
EPKINLY has received the authorization with conditions as the first and only subcutaneous bispecific antibody to treat adult patients with Relapsed or Refractory DLBCL. EPKINLY has been issued marketing authorization with conditions, pending the results of clinical trials to verify its clinical benefit. The drug is being co-developed by AbbVie and Genmab.
EPKINLY's authorization is based on the positive results of the EPCORE NHL-1 clinical trial, in which it delivered an overall response rate of 63 percent, a complete response rate of 39 percent and median duration of response of 12 months in heavily pretreated R/R DLBCL patients.
Further, RINVOQ (upadacitinib, 45 mg [induction dose] and 15 mg and 30 mg [maintenance dose]), an oral, once-daily selective and reversible JAK inhibitor, has been approved for the treatment of adults with moderately to severely active Crohn's disease.
Crohn's disease is a chronic, systemic disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea and abdominal pain.
The approval is supported by data from three Phase 3 clinical trials, including two induction studies and one maintenance study. Across all three studies, significantly more patients treated with upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response.
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. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved EPKINLY (epcoritamab injection/epcoritamab for injection) to treat Relapsed or Refractory Diffuse Large B-Cell Lymphoma or DLBCL, as well as RINVOQ (upadacitinib) to treat moderately to severely active Crohn's Disease. The drug is being co-developed by AbbVie and Genmab. EPKINLY has received the authorization with conditions as the first and only subcutaneous bispecific antibody to treat adult patients with Relapsed or Refractory DLBCL. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved EPKINLY (epcoritamab injection/epcoritamab for injection) to treat Relapsed or Refractory Diffuse Large B-Cell Lymphoma or DLBCL, as well as RINVOQ (upadacitinib) to treat moderately to severely active Crohn's Disease. The drug is being co-developed by AbbVie and Genmab. EPKINLY has received the authorization with conditions as the first and only subcutaneous bispecific antibody to treat adult patients with Relapsed or Refractory DLBCL. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved EPKINLY (epcoritamab injection/epcoritamab for injection) to treat Relapsed or Refractory Diffuse Large B-Cell Lymphoma or DLBCL, as well as RINVOQ (upadacitinib) to treat moderately to severely active Crohn's Disease. The drug is being co-developed by AbbVie and Genmab. EPKINLY's authorization is based on the positive results of the EPCORE NHL-1 clinical trial, in which it delivered an overall response rate of 63 percent, a complete response rate of 39 percent and median duration of response of 12 months in heavily pretreated R/R DLBCL patients. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved EPKINLY (epcoritamab injection/epcoritamab for injection) to treat Relapsed or Refractory Diffuse Large B-Cell Lymphoma or DLBCL, as well as RINVOQ (upadacitinib) to treat moderately to severely active Crohn's Disease. The drug is being co-developed by AbbVie and Genmab. EPKINLY has received the authorization with conditions as the first and only subcutaneous bispecific antibody to treat adult patients with Relapsed or Refractory DLBCL. |
22133.0 | 2023-10-17 00:00:00 UTC | Is ProShares S&P 500 Dividend Aristocrats ETF (NOBL) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-proshares-sp-500-dividend-aristocrats-etf-nobl-a-strong-etf-right-now-8 | nan | nan | Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
NOBL is managed by Proshares, and this fund has amassed over $10.89 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. NOBL seeks to match the performance of the S&P 500 DividendAristocrats Index before fees and expenses.
The S&P 500 Dividend Aristocrats Index targets companies that are currently members of the S&P 500, have increased dividend payments each year for at least 25 years & meet certain market capitalization & liquidity requirements.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for NOBL are 0.35%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.20%.
Performance and Risk
Year-to-date, the ProShares S&P 500 Dividend Aristocrats ETF has lost about -0.64% so far, and it's up approximately 11.20% over the last 12 months (as of 10/17/2023). NOBL has traded between $81.87 and $97.15 in this past 52-week period.
The fund has a beta of 0.90 and standard deviation of 15.79% for the trailing three-year period, which makes NOBL a medium risk choice in this particular space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
ProShares S&P 500 Dividend Aristocrats 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $23.02 billion in assets, Vanguard Dividend Appreciation ETF has $67.01 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
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.
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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. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $23.02 billion in assets, Vanguard Dividend Appreciation ETF has $67.01 billion. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. |
22134.0 | 2023-10-16 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: Here's Why | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-heres-why | nan | nan | In the latest market close, AbbVie (ABBV) reached $147.23, with a -0.49% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
The drugmaker's stock has dropped by 2.73% in the past month, exceeding the Medical sector's loss of 3.74% and the S&P 500's loss of 3%.
Market participants will be closely following the financial results of AbbVie in its upcoming release. The company plans to announce its earnings on October 27, 2023. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. At the same time, our most recent consensus estimate is projecting a revenue of $13.69 billion, reflecting a 7.55% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.04 per share and revenue of $53.56 billion. These totals would mark changes of -19.83% and -7.74%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AbbVie. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AbbVie is presently being traded at a Forward P/E ratio of 13.41. This denotes a discount relative to the industry's average Forward P/E of 14.2.
It's also important to note that ABBV currently trades at a PEG ratio of 2.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 237, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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 the latest market close, AbbVie (ABBV) reached $147.23, with a -0.49% movement compared to the previous day. Market participants will be closely following the financial results of AbbVie in its upcoming release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest market close, AbbVie (ABBV) reached $147.23, with a -0.49% movement compared to the previous day. Market participants will be closely following the financial results of AbbVie in its upcoming release. | In the latest market close, AbbVie (ABBV) reached $147.23, with a -0.49% movement compared to the previous day. Market participants will be closely following the financial results of AbbVie in its upcoming release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. | In the latest market close, AbbVie (ABBV) reached $147.23, with a -0.49% movement compared to the previous day. Market participants will be closely following the financial results of AbbVie in its upcoming release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. |
22135.0 | 2023-10-16 00:00:00 UTC | Notable Monday Option Activity: MRTN, ABBV, GILD | ABBV | https://www.nasdaq.com/articles/notable-monday-option-activity%3A-mrtn-abbv-gild | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Marten Transport Ltd (Symbol: MRTN), where a total of 1,085 contracts have traded so far, representing approximately 108,500 underlying shares. That amounts to about 46.2% of MRTN's average daily trading volume over the past month of 234,630 shares. Particularly high volume was seen for the $17.50 strike put option expiring October 20, 2023, with 1,075 contracts trading so far today, representing approximately 107,500 underlying shares of MRTN. Below is a chart showing MRTN's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 17,261 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 45.6% of ABBV's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $160 strike call option expiring December 15, 2023, with 10,146 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Gilead Sciences Inc (Symbol: GILD) options are showing a volume of 20,581 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 45.4% of GILD's average daily trading volume over the past month, of 4.5 million shares. Particularly high volume was seen for the $77 strike call option expiring October 20, 2023, with 7,588 contracts trading so far today, representing approximately 758,800 underlying shares of GILD. Below is a chart showing GILD's trailing twelve month trading history, with the $77 strike highlighted in orange:
For the various different available expirations for MRTN options, ABBV options, or GILD options, visit StockOptionsChannel.com.
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DIST YTD Return
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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. | Particularly high volume was seen for the $160 strike call option expiring December 15, 2023, with 10,146 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing MRTN's trailing twelve month trading history, with the $17.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 17,261 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 45.6% of ABBV's average daily trading volume over the past month, of 3.8 million shares. | Below is a chart showing MRTN's trailing twelve month trading history, with the $17.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 17,261 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 45.6% of ABBV's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $160 strike call option expiring December 15, 2023, with 10,146 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. | Particularly high volume was seen for the $160 strike call option expiring December 15, 2023, with 10,146 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing MRTN's trailing twelve month trading history, with the $17.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 17,261 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 45.6% of ABBV's average daily trading volume over the past month, of 3.8 million shares. | Below is a chart showing GILD's trailing twelve month trading history, with the $77 strike highlighted in orange: For the various different available expirations for MRTN options, ABBV options, or GILD options, visit StockOptionsChannel.com. Below is a chart showing MRTN's trailing twelve month trading history, with the $17.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 17,261 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 45.6% of ABBV's average daily trading volume over the past month, of 3.8 million shares. |
22136.0 | 2023-10-15 00:00:00 UTC | AbbVie : Phase 3 Study Of Skyrizi In Crohn's Disease Meets All Primary And Secondary Endpoints | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-phase-3-study-of-skyrizi-in-crohns-disease-meets-all-primary-and-secondary | nan | nan | (RTTNews) - AbbVie (ABBV) presented positive results from the head-to-head Phase 3 SEQUENCE study that evaluated the efficacy and safety of risankizumab (Skyrizi, 600 mg intravenous [IV] at week 0, 4 and 8 and 360 mg subcutaneous [SC] starting at week 12 and every 8 weeks thereafter) compared to ustekinumab (STELARA, IV dose at week 0 and 90 mg SC every 8 weeks thereafter) in patients with moderately to severely active Crohn's disease who have failed one or more anti-TNFs.
The data were presented at the United European Gastroenterology Week 2023, October 14-17.
The company noted that Risankizumab met both primary endpoints of non-inferiority for clinical remissiona (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remissionb at week 48 versus ustekinumab.
In addition, risankizumab demonstrated superiority compared to ustekinumab for all ranked secondary endpoints, including achievement of clinical remission at week 48, achievement of endoscopic response at week 48 and 24, achievement of steroid-free endoscopic remission at week 48, and achievement of steroid-free clinical remission at week 48.
The company noted that the safety profile of risankizumab in the SEQUENCE study was consistent with the known safety profile of risankizumab, with no new safety risks observed. The most common adverse events in risankizumab-treated patients were COVID-19, headache and Crohn's disease. COVID-19, Crohn's disease and arthralgia were most common among ustekinumab-treated patients. Serious adverse events occurred in 10% of risankizumab-treated patients and 17% of ustekinumab-treated patients, respectively.
Risankizumab is an IL-23 inhibitor approved for Crohn's disease, psoriatic arthritis and psoriasis and is being evaluated as a treatment for adults with moderate to severe ulcerative colitis.
Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
Crohn's disease is a chronic, systemic disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea and abdominal pain. It is a progressive disease, meaning it gets worse over time in a substantial proportion of patients or may develop complications that require urgent medical care, including surgery.
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. | (RTTNews) - AbbVie (ABBV) presented positive results from the head-to-head Phase 3 SEQUENCE study that evaluated the efficacy and safety of risankizumab (Skyrizi, 600 mg intravenous [IV] at week 0, 4 and 8 and 360 mg subcutaneous [SC] starting at week 12 and every 8 weeks thereafter) compared to ustekinumab (STELARA, IV dose at week 0 and 90 mg SC every 8 weeks thereafter) in patients with moderately to severely active Crohn's disease who have failed one or more anti-TNFs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted that Risankizumab met both primary endpoints of non-inferiority for clinical remissiona (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remissionb at week 48 versus ustekinumab. | (RTTNews) - AbbVie (ABBV) presented positive results from the head-to-head Phase 3 SEQUENCE study that evaluated the efficacy and safety of risankizumab (Skyrizi, 600 mg intravenous [IV] at week 0, 4 and 8 and 360 mg subcutaneous [SC] starting at week 12 and every 8 weeks thereafter) compared to ustekinumab (STELARA, IV dose at week 0 and 90 mg SC every 8 weeks thereafter) in patients with moderately to severely active Crohn's disease who have failed one or more anti-TNFs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted that Risankizumab met both primary endpoints of non-inferiority for clinical remissiona (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remissionb at week 48 versus ustekinumab. | (RTTNews) - AbbVie (ABBV) presented positive results from the head-to-head Phase 3 SEQUENCE study that evaluated the efficacy and safety of risankizumab (Skyrizi, 600 mg intravenous [IV] at week 0, 4 and 8 and 360 mg subcutaneous [SC] starting at week 12 and every 8 weeks thereafter) compared to ustekinumab (STELARA, IV dose at week 0 and 90 mg SC every 8 weeks thereafter) in patients with moderately to severely active Crohn's disease who have failed one or more anti-TNFs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted that Risankizumab met both primary endpoints of non-inferiority for clinical remissiona (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remissionb at week 48 versus ustekinumab. | (RTTNews) - AbbVie (ABBV) presented positive results from the head-to-head Phase 3 SEQUENCE study that evaluated the efficacy and safety of risankizumab (Skyrizi, 600 mg intravenous [IV] at week 0, 4 and 8 and 360 mg subcutaneous [SC] starting at week 12 and every 8 weeks thereafter) compared to ustekinumab (STELARA, IV dose at week 0 and 90 mg SC every 8 weeks thereafter) in patients with moderately to severely active Crohn's disease who have failed one or more anti-TNFs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The most common adverse events in risankizumab-treated patients were COVID-19, headache and Crohn's disease. |
22137.0 | 2023-10-13 00:00:00 UTC | Eli Lilly's (LLY) Mirikizumab Meets Crohn's Disease Study Goals | ABBV | https://www.nasdaq.com/articles/eli-lillys-lly-mirikizumab-meets-crohns-disease-study-goals | nan | nan | Eli Lilly LLY announced encouraging data from the phase III VIVID-1 study, which evaluated its IL-23p19 antibody mirikizumab for adult patients with moderate-to-severe Crohn’s disease (“CD”).
The VIVID-1 study achieved its co-primary and all major secondary endpoints. Mirikizumab demonstrated clinical remission and endoscopic response in CD patients following a 52-week treatment period, compared to placebo.
A form of inflammatory bowel disease, CD can cause inflammation in the digestive tract, leading to diarrhea, abdominal pain, fatigue and weight loss.
Per Lilly, 51.4% of study participants who received mirikizumab achieved clinical remission, compared with 19.6% for those on placebo. Treatment with the drug also demonstrated non-inferiority compared to J&J’s JNJ blockbuster drug Stelara (ustekinumab) in CD indication.
Treatment with the Lilly drug did not achieve superiority in the endoscopic response endpoint compared with J&J’s Stelara. However, management did mention that the mirikizumab results were ‘numerically higher’ compared with the J&J drug.
Based on the above data, Lilly will submit a regulatory filing with the FDA and other regulatory agencies worldwide next year, seeking approval for mirikizumab in CD indication.
Shares of Eli Lilly have surged 66.9% year to date compared with the industry’s 8.2% growth.
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Mirikizumab is currently approved in Canada, Europe and Japan for treating moderately to severely active ulcerative colitis (“UC”), where the drug is marketed under the trade name Omvoh. A regulatory filing for the drug in UC indication is under FDA review, with a decision expected before this year’s end.
The targeted CD markets are highly competitive. If approved, Lilly will face stiff competition from AbbVie ABBV, which markets its own drug Skyrizi, which utilizes a similar mechanism of action to treat CD. A blockbuster IL-23 inhibitor, AbbVie’s Skyrizi received label expansion in the United States and Europe last year in CD indication.
Last month, ABBV reported data from a head-to-head phase III study that compared Skyrizi to J&J’s Stelara in CD indication. This study achieved all its primary and secondary endpoints, thereby demonstrating the superiority of the AbbVie drug over J&J’s.
In August, AbbVie submitted a regulatory filing with the EMA and FDA seeking label expansion for Skyrizi in UC indication. Apart from CD, the AbbVie drug is approved for two other symptoms, namely active psoriatic arthritis and moderate-to-severe psoriasis, by both of these regulatory agencies.
Eli Lilly and Company Price
Eli Lilly and Company price | Eli Lilly and Company Quote
Zacks Rank & Stocks to Consider
Eli Lilly currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Corcept Therapeutics CORT, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Corcept Therapeutics’ 2023 earnings per share increased from 75 cents to 78 cents. During the same period, the earnings estimates per share for 2024 have improved from 81 cents to 83 cents. Year to date, shares of Corcept Therapeutics have risen 36.0%.
Earnings of Corcept Therapeutics beat estimates in two of the trailing four quarters while missing the mark on the other two occasions, witnessing an average earnings surprise of 6.99%. In the last reported quarter, Corcept Therapeutics’ earnings beat estimates by 66.67%.
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.
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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. | If approved, Lilly will face stiff competition from AbbVie ABBV, which markets its own drug Skyrizi, which utilizes a similar mechanism of action to treat CD. A blockbuster IL-23 inhibitor, AbbVie’s Skyrizi received label expansion in the United States and Europe last year in CD indication. Last month, ABBV reported data from a head-to-head phase III study that compared Skyrizi to J&J’s Stelara in CD indication. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report To read this article on Zacks.com click here. If approved, Lilly will face stiff competition from AbbVie ABBV, which markets its own drug Skyrizi, which utilizes a similar mechanism of action to treat CD. A blockbuster IL-23 inhibitor, AbbVie’s Skyrizi received label expansion in the United States and Europe last year in CD indication. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report To read this article on Zacks.com click here. If approved, Lilly will face stiff competition from AbbVie ABBV, which markets its own drug Skyrizi, which utilizes a similar mechanism of action to treat CD. A blockbuster IL-23 inhibitor, AbbVie’s Skyrizi received label expansion in the United States and Europe last year in CD indication. | Last month, ABBV reported data from a head-to-head phase III study that compared Skyrizi to J&J’s Stelara in CD indication. If approved, Lilly will face stiff competition from AbbVie ABBV, which markets its own drug Skyrizi, which utilizes a similar mechanism of action to treat CD. A blockbuster IL-23 inhibitor, AbbVie’s Skyrizi received label expansion in the United States and Europe last year in CD indication. |
22138.0 | 2023-10-13 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-9 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 26 most recent 13F filings for the 09/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 21 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Johnson & White Wealth Management LLC Existing +108 +$83
Richard W. Paul & Associates LLC Existing -1,203 -$35
Cardinal Capital Management Inc. Existing +1,447 +$3,054
Compton Wealth Advisory Group LLC Existing +65 +$152
First National Bank Sioux Falls Existing -10 +$88
G&S Capital LLC Existing +67 +$92
Clean Yield Group Existing UNCH +$69
Hall Laurie J Trustee Existing -165 +$243
Baker Boyer National Bank Existing +96 +$36
Violich Capital Management Inc. Existing -5,474 +$843
Kentucky Retirement Systems Insurance Trust Fund NEW +60,391 +$9,002
Kentucky Retirement Systems NEW +135,262 +$20,162
Ferguson Wellman Capital Management Inc. Existing -42,976 +$2,076
Radnor Capital Management LLC Existing +2,017 +$665
New Capital Management LP NEW +4,500 +$671
Brendel Financial Advisors LLC Existing -15 +$98
Granite Bay Wealth Management LLC NEW +24,255 +$3,561
Toth Financial Advisory Corp Existing -3,163 +$126
Kinneret Advisory LLC Existing -32 +$772
IFP Advisors Inc Existing +1,299 +$863
Northwest Investment Counselors LLC Existing +679 +$118
Aggregate Change: +177,148 +$42,739
In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 06/30/2023 to 09/30/2023, with 8 having decreased their positions and 4 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 09/30/2023 reporting period (out of the 446 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 06/30/2023 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds increased their holdings by 214,960 shares in the aggregate, from 9,230,872 up to 9,445,832 for a share count increase of approximately 2.33%. The overall top three funds holding ABBV on 09/30/2023 were:
» FUND SHARES OF ABBV HELD
1. National Bank of Canada FI 1,775,091
2. Hamlin Capital Management LLC 961,370
3. Donaldson Capital Management LLC 483,394
4-10 Find out the full Top 10 Hedge Funds Holding ABBV »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV).
10 S&P 500 Components Hedge Funds Are Buying »
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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. | At Holdings Channel, we have reviewed the latest batch of the 26 most recent 13F filings for the 09/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 21 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | Existing -42,976 +$2,076 Radnor Capital Management LLC Existing +2,017 +$665 New Capital Management LP NEW +4,500 +$671 Brendel Financial Advisors LLC Existing -15 +$98 Granite Bay Wealth Management LLC NEW +24,255 +$3,561 Toth Financial Advisory Corp Existing -3,163 +$126 Kinneret Advisory LLC Existing -32 +$772 IFP Advisors Inc Existing +1,299 +$863 Northwest Investment Counselors LLC Existing +679 +$118 Aggregate Change: +177,148 +$42,739 In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 06/30/2023 to 09/30/2023, with 8 having decreased their positions and 4 new positions. Donaldson Capital Management LLC 483,394 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 26 most recent 13F filings for the 09/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 21 of these funds. | Existing -42,976 +$2,076 Radnor Capital Management LLC Existing +2,017 +$665 New Capital Management LP NEW +4,500 +$671 Brendel Financial Advisors LLC Existing -15 +$98 Granite Bay Wealth Management LLC NEW +24,255 +$3,561 Toth Financial Advisory Corp Existing -3,163 +$126 Kinneret Advisory LLC Existing -32 +$772 IFP Advisors Inc Existing +1,299 +$863 Northwest Investment Counselors LLC Existing +679 +$118 Aggregate Change: +177,148 +$42,739 In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 06/30/2023 to 09/30/2023, with 8 having decreased their positions and 4 new positions. Donaldson Capital Management LLC 483,394 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 26 most recent 13F filings for the 09/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 21 of these funds. | Existing -42,976 +$2,076 Radnor Capital Management LLC Existing +2,017 +$665 New Capital Management LP NEW +4,500 +$671 Brendel Financial Advisors LLC Existing -15 +$98 Granite Bay Wealth Management LLC NEW +24,255 +$3,561 Toth Financial Advisory Corp Existing -3,163 +$126 Kinneret Advisory LLC Existing -32 +$772 IFP Advisors Inc Existing +1,299 +$863 Northwest Investment Counselors LLC Existing +679 +$118 Aggregate Change: +177,148 +$42,739 In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 06/30/2023 to 09/30/2023, with 8 having decreased their positions and 4 new positions. Donaldson Capital Management LLC 483,394 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 26 most recent 13F filings for the 09/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 21 of these funds. |
22139.0 | 2023-10-13 00:00:00 UTC | AbbVie's (ABBV) Rinvoq Meets Key Goal in Phase II Vitiligo Study | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-rinvoq-meets-key-goal-in-phase-ii-vitiligo-study | nan | nan | AbbVie ABBV announced positive results from its mid-stage study evaluating Rinvoq (upadacitinib) in a new indication. The phase IIb study evaluated the 6 mg, 11 mg and 22 mg dose strengths of Rinvoq in adult patients with non-segmental vitiligo (NSV) compared with placebo.
The study met its primary endpoint of the percentage change from baseline in the Facial Vitiligo Area Scoring Index (F-VASI) at week 24 with the 11 mg and 22 mg dose strengths of Rinvoq.
Vitiligo is a chronic autoimmune disease characterized by the skin’s depigmentation resulting from the loss of pigment-producing cells known as melanocytes. Per AbbVie, vitiligo affects approximately 2% of the global population and takes a serious toll on the patient’s quality of life.
F-VASI is a metric for the extent of re-pigmentation of the face and treatment response in clinical studies.
At week 52, the percent reduction from baseline in F-VASI was observed to be numerically greater than the results at week 24 for all Rinvoq doses. This signified the continued efficacy of the drug in treating NSV through week 52.
Based on the positive results from the phase IIb vitiligo study, AbbVie is gearing up to initiate a phase III clinical program evaluating Rinvoq in the treatment of NSV.
AbbVie’s Rinvoq, a JAK inhibitor, was initially approved in 2019 to treat moderate-to-severe rheumatoid arthritis (RA). Currently, the drug is approved for seven indications, including RA, psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, Crohn’s disease and ulcerative colitis. Label-expanding studies evaluating Rinvoq in several immune-mediated diseases like giant cell arteritis, systemic lupus erythematosus, hidradenitis suppurativa and takayasu arteritis are ongoing.
Year to date, shares of AbbVie have lost 8.2% against the industry’s 8.2% rise.
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The phase IIb dose-ranging study enrolled 185 patients (aged 18 to 65 years) with NSV, having an F-VASI of 1.1 and a Total Vitiligo Area Scoring Index (T-VASI) of 22. The patient population was then randomized to receive either a once-daily dose of Rinvoq (22 mg, 11 mg or 6 mg) or placebofor 24 weeks of treatment.
The company also reported that treatment with Rinvoq demonstrated higher response rates in secondary endpoints compared with placebo, including a ≥75% reduction from baseline in F-VASI (F-VASI 75) at week 24 with the 11 mg and 22 mg doses. A ≥50% reduction from baseline in T-VASI (T-VASI 50), another secondary endpoint, was also observed at week 24, but only in the Rinvoq 22 mg arm.
The 52-week analysis of the secondary endpoints in the study also demonstrated numerically greater response rates observed for F-VASI 75 and T-VASI 50 than those at week 24 for all Rinvoq dose groups.
Treatment with Rinvoq did not cause any new safety issues beyond its already established safety profile. Treatment-related adverse events were mild-moderate in severity.
We would like to remind the investors that Incyte INCY recently announced new positive 52-week data from its phase IIb dose-ranging study, evaluating the efficacy and safety of its pipeline candidate, povorcitinib, in adult patients with extensive NSV.
Povorcitinib is Incyte’s investigational oral small-molecule JAK1 inhibitor. Data from the phase IIb study showed that the treatment with oral povorcitinib caused substantial total body and facial repigmentation across all treatment groups at week 52.
INCY’s management claims that the 52-week study results reaffirm the previously reported positive top-line 24-week data from the phase II study and bolster the efficacy profile and potential of povorcitinib as an oral treatment for patients with extensive NSV.
Subject to successful development and approval, Incyte’s povorcitinib will provide serious competition to AbbVie’s Rinvoq in the vitiligo market.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Zacks Rank and Stocks to Consider
AbbVie currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall medical sector are Dynavax Technologies DVAX and Corcept Therapeutics CORT. Currently, DVAX sports a Zacks Rank #1 (Strong Buy) and CORT carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Dynavax’s 2023 loss per share has narrowed from 24 cents to 23 cents. The estimate for Dynavax’s 2024 earnings per share is currently pegged at 3 cents. Year to date, shares of DVAX have gained 34%.
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 25.78%.
In the past 30 days, the Zacks Consensus Estimate for Corcept’s 2023 earnings per share has remained constant at 78 cents. During the same period, the estimate for Corcept’s 2024 earnings per share has also remained constant at 83 cents. Year to date, shares of CORT have gained 36%.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.
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 >>
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Dynavax Technologies Corporation (DVAX) : 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. | AbbVie ABBV announced positive results from its mid-stage study evaluating Rinvoq (upadacitinib) in a new indication. Per AbbVie, vitiligo affects approximately 2% of the global population and takes a serious toll on the patient’s quality of life. Based on the positive results from the phase IIb vitiligo study, AbbVie is gearing up to initiate a phase III clinical program evaluating Rinvoq in the treatment of NSV. | Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Incyte Corporation (INCY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced positive results from its mid-stage study evaluating Rinvoq (upadacitinib) in a new indication. Per AbbVie, vitiligo affects approximately 2% of the global population and takes a serious toll on the patient’s quality of life. | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Zacks Rank and Stocks to Consider AbbVie currently has a Zacks Rank #3 (Hold). Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Incyte Corporation (INCY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced positive results from its mid-stage study evaluating Rinvoq (upadacitinib) in a new indication. | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Zacks Rank and Stocks to Consider AbbVie currently has a Zacks Rank #3 (Hold). AbbVie ABBV announced positive results from its mid-stage study evaluating Rinvoq (upadacitinib) in a new indication. Per AbbVie, vitiligo affects approximately 2% of the global population and takes a serious toll on the patient’s quality of life. |
22140.0 | 2023-10-13 00:00:00 UTC | ABBV Stock: Buy for the Yield, Hold for This Other Reason | ABBV | https://www.nasdaq.com/articles/abbv-stock%3A-buy-for-the-yield-hold-for-this-other-reason | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
From late spring through much of the summer, AbbVie (NYSE:ABBV) stock encountered a fair bit of turbulence.
With sales of the big pharma firm’s flagship drug Humira dropping, investors bailed on ABBV stock, fearful of continued poor results ahead.
However, since the release of AbbVie’s Q2 2023 results back in July, investor sentiment for this stock has improved.
During Q2, the company again reported year-over-year declines in revenue and adjusted earnings, but strong results for two other blockbuster drugs helped to ease concerns about continued sales erosion for Humira.
While that’s not to say sentiment has shifted fully back to bullish, upcoming developments could help finally put to rest concerns about this stock being a value trap.
Even better, there may be a path for shares to experience a strong surge higher down the road.
ABBV Stock: Addressing Value Trap Concerns
Since the aforementioned Q2 earnings release, AbbVie shares have bounced back from the $130s per share back to around $150 per share, with the stock holding steady near this price level for the past two months.
Again though, while performing ABBV stock has improved, value concerns may remain. This is a big reason shares trade at a discounted valuation (around 13.5 times earnings) compared to other pharma stocks like AstraZeneca (NASDAQ:AZN), which trades for around 18.5 times earnings.
That said, later this month, the release of Q3 results later this month could help to further assuage value trap concerns.
If, like last quarter, AbbVie can show that rising sales of drugs like Skyrizi and Rinvoq will continue to outweigh falling Humira sales, shares could experience a modest boost higher.
After another slight post-earnings rally, this stock may hold steady. This is especially the case, if market volatility returns, and investors cycle back into defensive plays.
Operating in a recession-resistant sector (healthcare), with a 3.96% dividend yield and dividend king status to boot, shares could serve as a solid safe harbor.
A Key Reason to Make This a Long-Term Hold
If high interest rates and a 2024 recession result in a stormy market once again, ABBV stock could provide you with consistent gains from its dividend payouts, and stability as more speculative names trade wildly.
However, don’t assume that the long-term upside potential with this stock is limited to modest-but-steady total returns.
Over a longer timeframe, AbbVie could really knock it out of the park. Why? As Raymond James’ Gary Nachman recently argued, sales of the company’s other blockbuster drugs (Skyrizi, Rinvoq) could surpass peak sales for Humira while having a lower risk of being affected by biosimilars.
This may mean, instead of reporting minimal earnings growth in 2024 and 2025 (as forecasts suggest), AbbVie instead reports a growth resurgence.
A re-acceleration of growth could also arrive from the release of new drugs. As InvestorPlace’s John Blankenhorn discussed last month, AbbVie has a high-potential, albeit long-shot, Alzheimer’s drug candidate in its pipeline.
A rebound in growth will, of course, benefit ABBV in two ways. First, shares will rise in tandem with increased earnings. Second, chances are a higher level of earnings growth will enable the stock to bridge its current valuation gap with peers.
Bottom Line
AbbVie is not the only major pharma stock trading at a low valuation right now. Pfizer (NYSE:PFE) is another such example.
Trading for 10 times earnings, PFE is cheaper than ABBV. Like this stock, Pfizer has “dividend king” status, yet it also sports a higher dividend yield (4.95%).
Still, as Louis Navellier and the InvestorPlace Research Staff recently argued, all signs point to it being a value trap, at risk of further declines.
Mostly, because Pfizer’s Covid-19 vaccine and treatment sales keep falling, with little in the way of other products/pipeline candidates poised to make up the difference.
ABBV stock, on the other hand, has strong potential to keep bouncing back. Other products/pipeline candidates point to the company fully getting over the loss of Humira. Coupled with a decent-sized dividend yield, shares could produce solid total returns in the years ahead.
On the date of publication, Thomas Niel 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.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 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. | With sales of the big pharma firm’s flagship drug Humira dropping, investors bailed on ABBV stock, fearful of continued poor results ahead. A Key Reason to Make This a Long-Term Hold If high interest rates and a 2024 recession result in a stormy market once again, ABBV stock could provide you with consistent gains from its dividend payouts, and stability as more speculative names trade wildly. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From late spring through much of the summer, AbbVie (NYSE:ABBV) stock encountered a fair bit of turbulence. | ABBV Stock: Addressing Value Trap Concerns Since the aforementioned Q2 earnings release, AbbVie shares have bounced back from the $130s per share back to around $150 per share, with the stock holding steady near this price level for the past two months. If, like last quarter, AbbVie can show that rising sales of drugs like Skyrizi and Rinvoq will continue to outweigh falling Humira sales, shares could experience a modest boost higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From late spring through much of the summer, AbbVie (NYSE:ABBV) stock encountered a fair bit of turbulence. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips From late spring through much of the summer, AbbVie (NYSE:ABBV) stock encountered a fair bit of turbulence. ABBV Stock: Addressing Value Trap Concerns Since the aforementioned Q2 earnings release, AbbVie shares have bounced back from the $130s per share back to around $150 per share, with the stock holding steady near this price level for the past two months. With sales of the big pharma firm’s flagship drug Humira dropping, investors bailed on ABBV stock, fearful of continued poor results ahead. | However, since the release of AbbVie’s Q2 2023 results back in July, investor sentiment for this stock has improved. ABBV Stock: Addressing Value Trap Concerns Since the aforementioned Q2 earnings release, AbbVie shares have bounced back from the $130s per share back to around $150 per share, with the stock holding steady near this price level for the past two months. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From late spring through much of the summer, AbbVie (NYSE:ABBV) stock encountered a fair bit of turbulence. |
22141.0 | 2023-10-12 00:00:00 UTC | AbbVie: Upadacitinib Phase 2b Study In Non-segmental Vitiligo Meets Primary Goal | ABBV | https://www.nasdaq.com/articles/abbvie%3A-upadacitinib-phase-2b-study-in-non-segmental-vitiligo-meets-primary-goal | nan | nan | (RTTNews) - AbbVie (ABBV) announced Thursday that its Phase 2b study evaluating upadacitinib (RINVOQ) in adults with non-segmental vitiligo or NSV met the primary endpoint. Based on the data, the company is advancing its clinical program of upadacitinib in vitiligo to Phase 3.
NSV is the most common form of vitiligo, a chronic, immune condition, where white patches of depigmentation develop on the skin. RINVOQ is a JAK inhibitor with seven approved indications and is currently being studied in several immune-mediated diseases.
The 52-week, Phase 2b multicenter, randomized, double-blind, placebo-controlled study (NCT04927975) comprises two periods. In the trial, upadacitinib at week 24 met the primary endpoint of percent change from baseline in Facial Vitiligo Area Scoring Index or F-VASI with 11 mg and 22 mg doses versus placebo in adults with NSV.
F-VASI is a tool that measures re-pigmentation of the face and is used to assess the extent of re-pigmentation and treatment response in clinical trials.
The company noted that the percent reduction from baseline in F-VASI at week 52 was numerically greater than results at week 24 for all upadacitinib doses.
No new safety signals were identified beyond the known safety profile for upadacitinib.
The 24-week data and partial 52-week data are being presented as an oral presentation during the European Academy of Dermatology and Venerology (EADV) Congress in Berlin, Germany, on October 12.
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. | (RTTNews) - AbbVie (ABBV) announced Thursday that its Phase 2b study evaluating upadacitinib (RINVOQ) in adults with non-segmental vitiligo or NSV met the primary endpoint. Based on the data, the company is advancing its clinical program of upadacitinib in vitiligo to Phase 3. NSV is the most common form of vitiligo, a chronic, immune condition, where white patches of depigmentation develop on the skin. | (RTTNews) - AbbVie (ABBV) announced Thursday that its Phase 2b study evaluating upadacitinib (RINVOQ) in adults with non-segmental vitiligo or NSV met the primary endpoint. Based on the data, the company is advancing its clinical program of upadacitinib in vitiligo to Phase 3. In the trial, upadacitinib at week 24 met the primary endpoint of percent change from baseline in Facial Vitiligo Area Scoring Index or F-VASI with 11 mg and 22 mg doses versus placebo in adults with NSV. | (RTTNews) - AbbVie (ABBV) announced Thursday that its Phase 2b study evaluating upadacitinib (RINVOQ) in adults with non-segmental vitiligo or NSV met the primary endpoint. In the trial, upadacitinib at week 24 met the primary endpoint of percent change from baseline in Facial Vitiligo Area Scoring Index or F-VASI with 11 mg and 22 mg doses versus placebo in adults with NSV. The company noted that the percent reduction from baseline in F-VASI at week 52 was numerically greater than results at week 24 for all upadacitinib doses. | (RTTNews) - AbbVie (ABBV) announced Thursday that its Phase 2b study evaluating upadacitinib (RINVOQ) in adults with non-segmental vitiligo or NSV met the primary endpoint. Based on the data, the company is advancing its clinical program of upadacitinib in vitiligo to Phase 3. In the trial, upadacitinib at week 24 met the primary endpoint of percent change from baseline in Facial Vitiligo Area Scoring Index or F-VASI with 11 mg and 22 mg doses versus placebo in adults with NSV. |
22142.0 | 2023-10-12 00:00:00 UTC | Billionaire Paul Tudor Jones Predicts a Recession in Early 2024. Here's What It Could Mean for Stocks. | ABBV | https://www.nasdaq.com/articles/billionaire-paul-tudor-jones-predicts-a-recession-in-early-2024.-heres-what-it-could-mean | nan | nan | Paul Tudor Jones II built a fortune currently worth over $8 billion. Much of his success is due to shrewd trades on currencies and interest rate moves. His Tudor Investment hedge fund is also heavily invested in stocks, with more than 50 equity positions, in addition to several call and put options on individual stocks.
As you might expect, Jones closely follows macroeconomic indicators as part of his investing strategy. And he doesn't like what he sees right now.
Image source: Getty Images.
Why a recession is probably coming
Jones appeared on CNBC's Squawk Box program on Tuesday, Oct. 10. Co-host Becky Quick expressed her view that the Federal Reserve has "lost control" over setting interest rates and that it's "going to be the bond market talking and setting rates." Jones agreed.
The billionaire hedge fund manager said that the bond market is likely to cause rates to increase more than they already have. He believes that there still isn't "a clearing price yet for long-term debt." The forces of supply and demand in the bond market, therefore, will push rates higher, in his opinion.
As a result, Jones predicted that "those rate hikes are probably going to tip us into recession." He thinks that the U.S. economy will likely enter a recession at some point during the first quarter of 2024.
What it could mean for stocks
The stock market usually falls before as well as during a recession. There are some exceptions historically, but an economic downturn isn't normally good for stocks.
^SPX data by YCharts. Gray areas represent U.S. recessions.
Jones doesn't think the stock market will respond well to the recession that he believes is on the way. He stated in the CNBC interview, "The stock market typically, right before a recession, declines about 12%. That's probably going to happen at some point, from some level."
Not everyone agrees with Jones' outlook. In recent months, Bank of America, JPMorgan Chase, and Federal Reserve Board economists retracted their previous forecasts that a near-term recession was likely.
Jones' track record in forecasting what the economy will do hasn't been perfect, either. In October 2022, he warned that the U.S. economy was near a recession or already in one. He proclaimed again in May 2023 that the U.S. could enter into a recession in the third quarter of 2023. Neither prediction came true.
What should investors do?
During the Squawk Box interview earlier this week, Jones also noted his concerns about the conflict between Israel and Hamas. He said, "It's a really challenging time to want to be an equity investor in U.S. stocks right now."
Jones stated that he prefers assets such as Bitcoin and gold rather than stocks in light of the economic and geopolitical uncertainty. He told CNBC's Andrew Ross Sorkin that there will probably be "$40 billion worth of buying that has to come into gold at some point between now and if that recession actually occurs."
But should investors follow Jones' lead in this case? What if he's wrong about a recession coming as he has been in the past? There are a couple of steps to take that could be prudent regardless of what happens.
One is to buy recession-resistant stocks that trade at a discount. If a recession does come, they should perform relatively well. Even if not, the stocks should perform well over the long term since they're already attractively valued.
You can get some ideas for stocks that check off these boxes from Jones' own Tudor Investment portfolio. For example, AbbVie (NYSE: ABBV) tends to hold up well during a recession or when the overall market declines. While the S&P 500 plunged nearly 20% last year, the big pharma stock jumped 19%. AbbVie is cheap right now, with its shares trading at a forward earnings multiple of only 13.6x. It also offers a great dividend, which yields nearly 4%.
Another strategy is to buy short-term U.S. Treasuries. It's what Warren Buffett has done recently with much of Berkshire Hathaway's available cash. Treasury bonds with maturities of one year or less currently offer yields of more than 5.35%. They're a safe place to park cash during potentially tumultuous times.
Because Treasuries have short-term maturities, your cash won't be tied down for too long. Stock market declines during recessions present fantastic buying opportunities for long-term investors. Even if Jones' prediction about a recession in early 2024 comes true, you can be prepared to take advantage by investing in great stocks on the pullback.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in AbbVie, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, Bitcoin, and JPMorgan Chase. 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. | For example, AbbVie (NYSE: ABBV) tends to hold up well during a recession or when the overall market declines. AbbVie is cheap right now, with its shares trading at a forward earnings multiple of only 13.6x. Keith Speights has positions in AbbVie, Bank of America, and Berkshire Hathaway. | For example, AbbVie (NYSE: ABBV) tends to hold up well during a recession or when the overall market declines. AbbVie is cheap right now, with its shares trading at a forward earnings multiple of only 13.6x. Keith Speights has positions in AbbVie, Bank of America, and Berkshire Hathaway. | For example, AbbVie (NYSE: ABBV) tends to hold up well during a recession or when the overall market declines. AbbVie is cheap right now, with its shares trading at a forward earnings multiple of only 13.6x. Keith Speights has positions in AbbVie, Bank of America, and Berkshire Hathaway. | For example, AbbVie (NYSE: ABBV) tends to hold up well during a recession or when the overall market declines. AbbVie is cheap right now, with its shares trading at a forward earnings multiple of only 13.6x. Keith Speights has positions in AbbVie, Bank of America, and Berkshire Hathaway. |
22143.0 | 2023-10-12 00:00:00 UTC | Morgan Stanley Maintains Abbvie (ABBV) Overweight Recommendation | ABBV | https://www.nasdaq.com/articles/morgan-stanley-maintains-abbvie-abbv-overweight-recommendation-1 | nan | nan | Fintel reports that on October 11, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation.
Analyst Price Forecast Suggests 16.05% 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 16.05% from its latest reported closing price of 149.34.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, a decrease of 1.42%. 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 $149.34 / share, the stock's dividend yield is 3.96%.
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 1.02 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.20. 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 0.25%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4381 funds or institutions reporting positions in Abbvie. This is a decrease of 131 owner(s) or 2.90% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.71%, a decrease of 14.63%. Total shares owned by institutions decreased in the last three months by 1.54% to 1,388,240K 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 11, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 16.05% Upside As of October 5, 2023, the average one-year price target for Abbvie is 173.32. | Fintel reports that on October 11, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 16.05% 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, a decrease of 1.42%. | 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 11, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 16.05% Upside As of October 5, 2023, the average one-year price target for Abbvie is 173.32. | Fintel reports that on October 11, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 16.05% 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, a decrease of 1.42%. |
22144.0 | 2023-10-11 00:00:00 UTC | XLV, ABBV, TMO, PFE: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-abbv-tmo-pfe%3A-large-outflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $203.2 million dollar outflow -- that's a 0.5% decrease week over week (from 294,570,000 to 293,020,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.4%, and Pfizer Inc (Symbol: PFE) is lower by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $119.95 per share, with $141.77 as the 52 week high point — that compares with a last trade of $130.26. 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 experienced notable outflows »
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IMVT Insider Buying
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 XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.4%, and Pfizer Inc (Symbol: PFE) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $203.2 million dollar outflow -- that's a 0.5% decrease week over week (from 294,570,000 to 293,020,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.4%, and Pfizer Inc (Symbol: PFE) is lower by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $119.95 per share, with $141.77 as the 52 week high point — that compares with a last trade of $130.26. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.4%, and Pfizer Inc (Symbol: PFE) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $203.2 million dollar outflow -- that's a 0.5% decrease week over week (from 294,570,000 to 293,020,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $119.95 per share, with $141.77 as the 52 week high point — that compares with a last trade of $130.26. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.4%, and Pfizer Inc (Symbol: PFE) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $203.2 million dollar outflow -- that's a 0.5% decrease week over week (from 294,570,000 to 293,020,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $119.95 per share, with $141.77 as the 52 week high point — that compares with a last trade of $130.26. |
22145.0 | 2023-10-11 00:00:00 UTC | AbbVie: Three Ongoing Phase 3 Studies Show Long-term Efficacy Of RINVOQ | ABBV | https://www.nasdaq.com/articles/abbvie%3A-three-ongoing-phase-3-studies-show-long-term-efficacy-of-rinvoq | nan | nan | (RTTNews) - AbbVie (ABBV) reported new data analyses from the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies that further showed the long-term efficacy and safety profile of RINVOQ among adults and adolescents 12 years and older with moderate to severe atopic dermatitis through 140 weeks.
In the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies, a significantly higher proportion of patients treated with upadacitinib achieved the co-primary endpoints of improvement in skin clearance, at week 16, compared to those who received placebo. Also, more upadacitinib-treated patients achieved the secondary endpoint of improvement in skin clearance, and an additional endpoint of itch reduction at week 16, compared to placebo-treated patients. Safety results were consistent with the known safety profile of upadacitinib, the company noted.
RINVOQ is a JAK inhibitor with seven approved indications. It is currently being studied in several further immune-mediated diseases.
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. | (RTTNews) - AbbVie (ABBV) reported new data analyses from the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies that further showed the long-term efficacy and safety profile of RINVOQ among adults and adolescents 12 years and older with moderate to severe atopic dermatitis through 140 weeks. In the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies, a significantly higher proportion of patients treated with upadacitinib achieved the co-primary endpoints of improvement in skin clearance, at week 16, compared to those who received placebo. Also, more upadacitinib-treated patients achieved the secondary endpoint of improvement in skin clearance, and an additional endpoint of itch reduction at week 16, compared to placebo-treated patients. | (RTTNews) - AbbVie (ABBV) reported new data analyses from the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies that further showed the long-term efficacy and safety profile of RINVOQ among adults and adolescents 12 years and older with moderate to severe atopic dermatitis through 140 weeks. In the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies, a significantly higher proportion of patients treated with upadacitinib achieved the co-primary endpoints of improvement in skin clearance, at week 16, compared to those who received placebo. Also, more upadacitinib-treated patients achieved the secondary endpoint of improvement in skin clearance, and an additional endpoint of itch reduction at week 16, compared to placebo-treated patients. | (RTTNews) - AbbVie (ABBV) reported new data analyses from the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies that further showed the long-term efficacy and safety profile of RINVOQ among adults and adolescents 12 years and older with moderate to severe atopic dermatitis through 140 weeks. In the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies, a significantly higher proportion of patients treated with upadacitinib achieved the co-primary endpoints of improvement in skin clearance, at week 16, compared to those who received placebo. Also, more upadacitinib-treated patients achieved the secondary endpoint of improvement in skin clearance, and an additional endpoint of itch reduction at week 16, compared to placebo-treated patients. | (RTTNews) - AbbVie (ABBV) reported new data analyses from the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies that further showed the long-term efficacy and safety profile of RINVOQ among adults and adolescents 12 years and older with moderate to severe atopic dermatitis through 140 weeks. In the Measure Up 1, Measure Up 2 and AD Up Phase 3 studies, a significantly higher proportion of patients treated with upadacitinib achieved the co-primary endpoints of improvement in skin clearance, at week 16, compared to those who received placebo. RINVOQ is a JAK inhibitor with seven approved indications. |
22146.0 | 2023-10-11 00:00:00 UTC | 3 Absurdly Cheap Dividend Stocks to Buy and Hold for Years | ABBV | https://www.nasdaq.com/articles/3-absurdly-cheap-dividend-stocks-to-buy-and-hold-for-years | nan | nan | A good way to maximize your potential returns is by focusing on cheap stocks that also pay dividends. That way, you collect a recurring payout while also setting yourself up for some attractive profits down the road. Three stocks that tick off both checkmarks for investors are Verizon Communications (NYSE: VZ), Cisco Systems (NASDAQ: CSCO), and AbbVie (NYSE: ABBV).
1. Verizon Communications
Verizon has been a tough investment to be holding in recent years. Down more than 20% year to date, the stock is on track to potentially do even worse than in 2022 when its shares nosedived by 24%. And the year before that, it was also down 12%. At some point, however, enough becomes enough and the stock is due for a rally.
That time could be coming soon, because while growth stocks have been hot buys this year due to artificial intelligence (AI), there could be worse economic conditions on the way. And as investors look for safety, they might opt for a dividend stock such as Verizon, which despite the bearishness over the past few years still has a robust and highly profitable telecom business.
At close to 50% of earnings, Verizon's payout ratio is fairly modest, suggesting that the stock's dividend, which yields 8.6%, isn't in any imminent danger.
Cleaning up lead-covered cables does create a potential liability for the telecom company down the road, but that may take years to sort out, and it's not enough of a reason to stay this bearish on what's still a quality business -- Verizon has generated more than $20 billion in profit in each of the past two years. And this year, it's projecting between 2.5% and 4.5% growth in its core wireless service business.
Trading at less than 7 times its estimated future profits and offering a high yield, Verizon has the potential to be a steal of a deal for long-term investors.
2. Cisco Systems
Cisco is a big name in tech, known for its routers and networking products. Its operations are also highly profitable, with the company posting an impressive 22% profit margin over the trailing 12 months. And it recently bolstered its growth prospects with a $28 billion acquisition of Splunk, an analytics business that can help Cisco's customers not only manage threats but prevent them from taking place.
But despite the more positive outlook, this is still a stock that trades at a fairly low valuation; Cisco's forward price-to-earnings multiple is just 13. By comparison, the S&P 500 average is 19.
Typically, shares of a company fall following an acquisition, which is what is happening with Cisco right now, as investors aren't usually on board with a huge outflow of cash and can sometimes question the price tag. But in the long run, there's potential for Cisco's recent acquisition to pay off in droves, which is why this can be a great time to buy the stock.
Cisco also pays a relatively high dividend, which yields 2.9% -- that's higher than the S&P 500 average of 1.6%. And with a payout ratio of around 50%, this makes for another good dividend stock to buy and hold.
3. AbbVie
A third high-yielding dividend stock that looks cheap right now is AbbVie. The pharmaceutical company is trading at less than 14 times its estimated future earnings.
Investors are hesitant to buy shares of the company as AbbVie expects its top drug, Humira, to see a drop of 35% in revenue this year due to an increase in competition with several biosimilars becoming available and providing patients with cheaper options.
It's not a great situation for the company, but in the long run things should improve as AbbVie has a couple of promising assets in Rinvoq and Skyrizi, which are immunology treatments that the company believes can combine for higher peak sales than Humira.
AbbVie is trading at a riskier valuation than it deserves, which presents investors with a great investment opportunity today.
The stock also provides investors with a great dividend, which yields 4%. While its payout ratio may seem high at over 100%, that's not indicative of the dividend's safety, as over the trailing 12 months AbbVie has generated free cash flow of $24.8 billion, and its cash dividend has totaled just $10.3 billion in that stretch.
For dividend investors, this can make for an underrated income stock to buy right now.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems and Splunk. The Motley Fool recommends Verizon Communications. 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. | Investors are hesitant to buy shares of the company as AbbVie expects its top drug, Humira, to see a drop of 35% in revenue this year due to an increase in competition with several biosimilars becoming available and providing patients with cheaper options. Three stocks that tick off both checkmarks for investors are Verizon Communications (NYSE: VZ), Cisco Systems (NASDAQ: CSCO), and AbbVie (NYSE: ABBV). AbbVie A third high-yielding dividend stock that looks cheap right now is AbbVie. | Three stocks that tick off both checkmarks for investors are Verizon Communications (NYSE: VZ), Cisco Systems (NASDAQ: CSCO), and AbbVie (NYSE: ABBV). While its payout ratio may seem high at over 100%, that's not indicative of the dividend's safety, as over the trailing 12 months AbbVie has generated free cash flow of $24.8 billion, and its cash dividend has totaled just $10.3 billion in that stretch. AbbVie A third high-yielding dividend stock that looks cheap right now is AbbVie. | Three stocks that tick off both checkmarks for investors are Verizon Communications (NYSE: VZ), Cisco Systems (NASDAQ: CSCO), and AbbVie (NYSE: ABBV). AbbVie A third high-yielding dividend stock that looks cheap right now is AbbVie. Investors are hesitant to buy shares of the company as AbbVie expects its top drug, Humira, to see a drop of 35% in revenue this year due to an increase in competition with several biosimilars becoming available and providing patients with cheaper options. | Three stocks that tick off both checkmarks for investors are Verizon Communications (NYSE: VZ), Cisco Systems (NASDAQ: CSCO), and AbbVie (NYSE: ABBV). AbbVie A third high-yielding dividend stock that looks cheap right now is AbbVie. Investors are hesitant to buy shares of the company as AbbVie expects its top drug, Humira, to see a drop of 35% in revenue this year due to an increase in competition with several biosimilars becoming available and providing patients with cheaper options. |
22147.0 | 2023-10-11 00:00:00 UTC | The 3 Best Defensive Stocks for Nervous Investors | ABBV | https://www.nasdaq.com/articles/the-3-best-defensive-stocks-for-nervous-investors | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nervous investors are turning to defensive stocks, and there’s plenty of reason to be among their ranks. The U.S. Federal Reserve’s continuing battle to control inflation is the primary reason catalyzing increasing nervousness. A few weeks ago, the Fed signaled that rates will be held higher for longer. That introduced new fear into the markets.
Unexpectedly strong jobs figures complicate the Fed’s future decisions. High numbers suggest more people will have more money making it more difficult to tamp down inflation. However, earnings data showed that wage growth is slowing. That implies that the Fed’s efforts are working and that aggressive, potentially destabilizing moves are less likely. That volatility makes defensive stocks a logical consideration for investors tired of the whipsaw.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. That low price, in combination with other factors, makes the stock a buy for defensive-minded investors.
Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature. Beyond that, and more importantly, AbbVie’s shares remain close to their price when it last released earnings.
The reason that’s important is that AbbVie has shown that it won’t be bogged down by declining Humira sales. Instead, the company has found a way to rejuvenate its immunology portfolio with strong growth from Rinvoq and Skyrizi.
As mentioned, share prices have been stagnant since then. That’s due more to structural market factors than anything. Investors continue to prefer tech and other AI growth related shares making defensive shares less attractive by comparison. That can and will change and ABBV is as good a defensive stock as there is for that shift.
Walmart (WMT)
Source: Tupungato / Shutterstock.com
Walmart (NYSE:WMT) is an interesting stock for many, many reasons. It remains the largest global retailer, the largest grocery retailer and has a burgeoning eCommerce opportunity among those many reasons.
It’s also interesting for a reason you may not expect: Weight loss drugs like Wegovy, Ozempic, and Mounjaro are spiking pharmacy revenues. Some reports have suggested that popular weight loss drugs pose a direct threat to Walmart. The thinking is that they are so highly prescribed and effective as to have a material impact on Walmart’s food sales.
The fact that the company raised its full-year guidance following its Q3 earnings report seems to directly contradict those fears. Instead of contracting, Walmart appears to be thriving. There was no mention of the effects of those drugs on its performance in the earnings release and it remains one of the first defensive stocks investors will flock to at the first signs of bigger trouble.
Berkshire Hathaway (BRK-B)
Source: Jonathan Weiss / Shutterstock.com
The general consensus is that Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) stock simply offers strong risk-protection to investors. It’s a well diversified representation of the U.S. economy at large. That makes it a bet on the continued strength of the economy while also being low risk as evidenced by a 0.87 beta.
Berkshire Hathaway’s performance over the last year perfectly exemplifies those characteristics I just mentioned. Its earnings in Q2 2022 went negative as the economy tumbled. U.S. firms were crushed by higher rates and that translated to large losses. However, BRK-B shares hardly winced in terms of share prices. Fast forward a year and earnings are strongly positive as the market has rebounded. Shares are up but only modestly. Investors are relatively protected by investing in BRK-B shares and thus, nervous investors should pay attention to Berkshire Hathaway. Stay in the market but protect yourself.
Interested readers can check out the firm’s holding here. Apple (NASDAQ:AAPL) contributes roughly half of its overall value.
On the date of publication, Alex Sirois 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.
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) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature. Beyond that, and more importantly, AbbVie’s shares remain close to their price when it last released earnings. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature. Beyond that, and more importantly, AbbVie’s shares remain close to their price when it last released earnings. | Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. Beyond that, and more importantly, AbbVie’s shares remain close to their price when it last released earnings. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature. Beyond that, and more importantly, AbbVie’s shares remain close to their price when it last released earnings. |
22148.0 | 2023-10-10 00:00:00 UTC | Ex-Dividend Reminder: American Eagle Outfitters, Foot Locker and AbbVie | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-american-eagle-outfitters-foot-locker-and-abbvie | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 10/12/23, American Eagle Outfitters, Inc. (Symbol: AEO), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.10 on 10/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 10/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 11/15/23. As a percentage of AEO's recent stock price of $16.78, this dividend works out to approximately 0.60%, so look for shares of American Eagle Outfitters, Inc. to trade 0.60% lower — all else being equal — when AEO shares open for trading on 10/12/23. Similarly, investors should look for FL to open 1.93% lower in price and for ABBV to open 0.99% lower, all else being equal.
Below are dividend history charts for AEO, FL, and ABBV, showing historical dividends prior to the most recent ones declared.
American Eagle Outfitters, Inc. (Symbol: AEO):
Foot Locker, Inc. (Symbol: FL):
AbbVie Inc (Symbol: ABBV):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.38% for American Eagle Outfitters, Inc., 7.71% for Foot Locker, Inc., and 3.97% for AbbVie Inc.
In Tuesday trading, American Eagle Outfitters, Inc. shares are currently up about 0.5%, Foot Locker, Inc. shares are up about 0.1%, and AbbVie Inc shares are up about 0.1% on the day.
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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. | If they do continue, the current estimated yields on annualized basis would be 2.38% for American Eagle Outfitters, Inc., 7.71% for Foot Locker, Inc., and 3.97% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel, on 10/12/23, American Eagle Outfitters, Inc. (Symbol: AEO), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.10 on 10/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 10/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 11/15/23. | Looking at the universe of stocks we cover at Dividend Channel, on 10/12/23, American Eagle Outfitters, Inc. (Symbol: AEO), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.10 on 10/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 10/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 11/15/23. American Eagle Outfitters, Inc. (Symbol: AEO): Foot Locker, Inc. (Symbol: FL): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 10/12/23, American Eagle Outfitters, Inc. (Symbol: AEO), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.10 on 10/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 10/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 11/15/23. American Eagle Outfitters, Inc. (Symbol: AEO): Foot Locker, Inc. (Symbol: FL): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. | If they do continue, the current estimated yields on annualized basis would be 2.38% for American Eagle Outfitters, Inc., 7.71% for Foot Locker, Inc., and 3.97% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel, on 10/12/23, American Eagle Outfitters, Inc. (Symbol: AEO), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.10 on 10/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 10/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 11/15/23. |
22149.0 | 2023-10-10 00:00:00 UTC | 3 Dividend Kings Every Investor Should Own to Survive a Market Crash | ABBV | https://www.nasdaq.com/articles/3-dividend-kings-every-investor-should-own-to-survive-a-market-crash | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend stocks have proved time and again to be a superior investing strategy. We all want capital appreciation, or to see our stocks grow in value over time, but dividends are what really drive excess returns.
Analysts at JPMorgan Chase (NYSE:JPM) studied the long-term impact dividends have on stocks. They found dividends accounted for an astounding 89% of the stock market’s total return over the 40-year period between 1972 and 2012. We all heard that the S&P 500 generates on average a 10% annual return over time. Well, almost nine percentage points of that comes from dividends!
Also, no matter what market conditions are like, dividend stocks outperform those that don’t make a payout. There is no decade where dividend stocks did not generate positive returns. The market, as a whole, can’t say that.
The reason is simple. Companies that pay dividends are typically healthier than those that don’t. They have been fire-tested by the market and still thrive. Dividends also help buffer the impact of market downturns, contributing to lower volatility. That’s why dividend stocks need to be an essential part of your portfolio.
JPMorgan’s study also discovered that companies that initiated and then hiked their dividends returned an average of 9.5% annually while non-income producing stocks generated only 1.6% annually. Arguably, that makes Dividend Kings the best ones to buy. These are stocks that raise their payout each and every year for 50 years or more.
The following three Dividend Kings are ones you should buy now if you want to survive and thrive following a stock market crash.
Walmart (WMT)
Source: fotomak / Shutterstock.com
In the event of an economic downturn, you’re going to want Walmart (NYSE:WMT) in your portfolio. It is the world’s largest supermarket and general merchandise retailer with over 11,500 stores across 27 countries.
There is a Walmart store within 10 miles of 90% of the U.S. population. Not only does that make it incredibly convenient to most consumers, but in times of distress its everyday low price policies make it the place most will turn to as they stretch their wallets to make ends meet.
Its dividend is every bit a staple as is its food. Walmart first declared a dividend in March 1974 and has increased every year thereafter. It was 5 cents per share back then. Today it stands at $2.33 per share and yields 1.5% annually. That’s a growth rate of 8% a year for 50 straight years.
What makes Walmart so formidable is the scale of its operations. It is able to squeeze suppliers to ensure it gets the best price for customers. And where other retailers stumbled in competing against Amazon (NASDAQ:AMZN), Walmart rose to the challenge and represents a viable alternative to the e-commerce leader.
It remains consistently profitable, even during recessions. In fact, recessions may be its forte. The stock generated total returns of 5,000% over the past five decades – or double those of the S&P 500.
Colgate-Palmolive (CL)
Source: monticello / Shutterstock.com
What Walmart does for groceries, Colgate-Palmolive (NYSE:CL) does for consumer products. Best known for its namesake toothpaste and dish detergent, Colgate has a global portfolio of name brand products including Irish Spring soap, Ajax cleaners, and Hill’s Pet Nutrition.
The power of owning such well-known brands is the loyalty they build in consumers. Because people know the quality and performance of the product the brand represents, they make repeat purchases. Especially during periods of economic hardship because shoppers need to ensure they are getting their money’s worth.
That’s not to say Colgate is invincible. Inflation takes its toll as do cross currency exchange rates. While second quarter organic sales growth hit 8% in all its product categories, inflation pressured margins forcing the company to raise prices. That hurt volume some, but was a necessary response. Still, some big bucks investors began running for the exits. The stock is down 12% year-to-date (YTD) as a result, but should bounce back as margins improve.
Colgate paid its very first dividend beginning in 1895, but began increasing the payout annually in 1963. The 60-year string of hikes earned its inclusion in the Dividend King list. With a yield of 2.8%, the consumer products giant is an attractive addition to your portfolio.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Pharmaceutical stock AbbVie (NYSE:ABBV) isn’t your typical Dividend King. It earned the title by riding the coattails of Abbott Labs (NYSE:ABT) which spun it off. Because spinoff stocks get to keep their parent’s dividend history, it’s a backdoor way to get included.
Still, AbbVie began paying a dividend upon its separation in 2013 and immediately began raising it every year thereafter. It will undoubtedly earn its own title over time and the dividend yields 3.9% annually.
AbbVie generates most of its revenue from arthritis therapy Humira. Sales took a hit earlier this year when patent protection expired, but revenue still registered $4 billion in the second quarter and $7.55 billion YTD. It also has a passel of other treatments earning billions of dollars a year. Plaque psoriasis treatment Skyrizi saw $3.2 billion in sales so far in 2023, blockbuster cancer drug Imbruvica made $1.8 billion, and Rinvoq is approved for half a dozen indications and made $1.7 billion in sales. In all, AbbVie has a baker’s dozen of billion-dollar drugs on the market.
The pharmaceutical stock trades at just 13 times next year’s earnings estimates and a bargain basement 10 times the free cash flow it produces. Humira may be slowly fading, but AbbVie has plenty of backup coming into their own. Trading at discount valuations, this stock will inject your portfolio with much needed growth over time.
On the date of publication, Rich Duprey held a LONG position in CL and ABBV 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 Pharmaceutical stock AbbVie (NYSE:ABBV) isn’t your typical Dividend King. Still, AbbVie began paying a dividend upon its separation in 2013 and immediately began raising it every year thereafter. AbbVie generates most of its revenue from arthritis therapy Humira. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical stock AbbVie (NYSE:ABBV) isn’t your typical Dividend King. Still, AbbVie began paying a dividend upon its separation in 2013 and immediately began raising it every year thereafter. AbbVie generates most of its revenue from arthritis therapy Humira. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical stock AbbVie (NYSE:ABBV) isn’t your typical Dividend King. Still, AbbVie began paying a dividend upon its separation in 2013 and immediately began raising it every year thereafter. AbbVie generates most of its revenue from arthritis therapy Humira. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical stock AbbVie (NYSE:ABBV) isn’t your typical Dividend King. Still, AbbVie began paying a dividend upon its separation in 2013 and immediately began raising it every year thereafter. AbbVie generates most of its revenue from arthritis therapy Humira. |
22150.0 | 2023-10-10 00:00:00 UTC | Three Stocks To Help You Through the Financial Roller Coaster! | ABBV | https://www.nasdaq.com/articles/three-stocks-to-help-you-through-the-financial-roller-coaster | nan | nan | The world's eyes are on the Middle East again during one of the darkest hours of the region. Tensions broke into declarations of armed conflict as Hamas, the militant group that holds the Gaza Strip, launched an unprecedented attack on Israel, with the latter promising “significant military steps” as retaliation. This shocking event has put the world on the defensive, which boosted safe-haven assets like gold, treasuries, and the dollar, as investors lean more on the defensive side during such market uncertainties.
How do you go on the defensive?
One of the most common strategies stock investors use when looking to protect their portfolio is to move into sectors that are in businesses that are non-cyclical or less prone to economic cycles. They can be stocks in public utilities, healthcare, and those that sell essential items. To maximize this strategy, you can also look at only stocks with a steady stream of dividends, like those considered Dividend Aristocrats.
What are Dividend Aristocrats?
Dividend Aristocrats have consistently raised their dividends yearly for the last 25 years. This consistent dividend increase ensures that their shareholders get growing value each for investing, all of which need a solid business model to support it. Now let’s look at three Dividend Aristocrats that you can be part of your defensive portfolio.
AbbVie Inc. (ABBV)
AbbVie Inc. is a research-based biopharmaceutical company that researches, develops, and manufactures various medicines. The company resulted from a spinoff from its parent company, Abbot Laboratories. Some of its popular medications are Botox, Imbruvica, and Humira.
The company has been a steady performer, and its latest earnings beat analyst estimates by 4.30% while sales grew by 13.42% QoQ. ABBV’s dividend yield is currently at 3.92%, with a dividend payout ratio of 45.36% and a 120.31% 5-year dividend growth rate. AbbVie has consistently increased its dividends for 51 years.
Analyst Ratings
Analysts rate ABBV as a "Moderate Buy" based on 7 Strong buys, 2 Moderate buys, and 8 Hold recommendations from analysts. The mean target for ABBV is $173.57, and its high target is $195.00, an upside of 30.78%.
Johnson & Johnson (JNJ)
Johnson & Johnson is a diversified healthcare products company that is no stranger to long-term and defensive investors. It is a household name and a manufacturer of popular products like Band-Aid, Listerine, and Johnson's Baby Powder. The company later went into the pharmaceuticals and medtech segments in the healthcare industry. Its solid business model and long history have made it one of the behemoths in the sector.
JNJ’s most recent financials have shown the company’s resilience even with a slow-growth, high-inflation economy and its recent legal troubles. Its most recent earnings beat analyst estimates by 7.28% while sales grew by 3.17% QoQ. JNJ's dividend yield is 2.93%, with a dividend payout ratio of 43.53% and a 34.04% 5-year dividend growth rate, and the company has consistently increased its dividends for 61 years.
Analyst Ratings
Analysts rate JNJ as a “Moderate Buy” based on 7 Strong buys, 2 Moderate buys, and 9 Hold recommendations. The mean target for JNJ is $179.59, and the high target is $215, a potential upside of 35.61%.
Consolidated Edison, Inc. (ED)
Consolidated Edison, Inc. is a holding company in the energy sector. Its subsidiaries provide regulated electric utility services across New York City and gas services in the Bronx, Manhattan, and Queens. One of its subsidiaries, Con Edison Transmission, is focused more on clean and renewable energy to meet the company’s sustainable goals. Con Edison’s projects are concentrated in the New England, Midwest, New York, and mid-Atlantic areas.
Being in the utility sector makes Consolidated Edison one of the go-to companies for defensive investors, with its stable business model and a modest dividend yield of 3.68%. ED also has a dividend payout ratio of 64.99%. ED has consistently increased its dividends for 49 years.
Analyst Ratings
Analysts rate ED as a “Moderate Sell” based on 1 Strong Buy, 5 Holds, and 6 Strong Sells. The mean target for ED is $88.31, and the high target is $103.00, a possible upside of 17.65%. While analysts mostly lean towards a sell recommendation, we think ED still holds a spot on a defensive portfolio due to its history, nature of business, and consistently growing dividends.
Final Thoughts
Tilting portfolios to dividend stocks or defensive sectors has always been a generally followed strategy by investors during uncertain times. While this may be the case for most, it is still best practice to look at each company closely to better understand the risks that come with it.
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On the date of publication, Rick Orford 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. | AbbVie Inc. (ABBV) AbbVie Inc. is a research-based biopharmaceutical company that researches, develops, and manufactures various medicines. ABBV’s dividend yield is currently at 3.92%, with a dividend payout ratio of 45.36% and a 120.31% 5-year dividend growth rate. AbbVie has consistently increased its dividends for 51 years. | Analyst Ratings Analysts rate ABBV as a "Moderate Buy" based on 7 Strong buys, 2 Moderate buys, and 8 Hold recommendations from analysts. AbbVie Inc. (ABBV) AbbVie Inc. is a research-based biopharmaceutical company that researches, develops, and manufactures various medicines. ABBV’s dividend yield is currently at 3.92%, with a dividend payout ratio of 45.36% and a 120.31% 5-year dividend growth rate. | ABBV’s dividend yield is currently at 3.92%, with a dividend payout ratio of 45.36% and a 120.31% 5-year dividend growth rate. Analyst Ratings Analysts rate ABBV as a "Moderate Buy" based on 7 Strong buys, 2 Moderate buys, and 8 Hold recommendations from analysts. AbbVie Inc. (ABBV) AbbVie Inc. is a research-based biopharmaceutical company that researches, develops, and manufactures various medicines. | ABBV’s dividend yield is currently at 3.92%, with a dividend payout ratio of 45.36% and a 120.31% 5-year dividend growth rate. AbbVie Inc. (ABBV) AbbVie Inc. is a research-based biopharmaceutical company that researches, develops, and manufactures various medicines. AbbVie has consistently increased its dividends for 51 years. |
22151.0 | 2023-10-09 00:00:00 UTC | 2 Magnificent Dividend Stocks to Buy Hand Over Fist in October | ABBV | https://www.nasdaq.com/articles/2-magnificent-dividend-stocks-to-buy-hand-over-fist-in-october | nan | nan | Investing in stocks may not look particularly appealing at the moment, given that the 10-year U.S. Treasury bond is offering a near 5% annualized yield. After all, most stocks outside the areas of artificial intelligence and weight-loss care have lost ground over the last two years because of various economic and geopolitical factors, along with a wide swath of investors opting for safer alternatives to stocks like high-yield savings accounts and fixed rate CDs.
However, history has unequivocally shown that high-quality dividend stocks tend to outperform most other asset classes in the long run. As such, value and income investors probably shouldn't be overly concerned about these short-term obstacles.
Image Source: Getty Images.
Which high-quality dividend stocks stand out from the crowd? Biotech heavyweights AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) are both working through a multiyear portfolio churn, but their proven ability to maintain a strong competitive edge through industry-leading levels of innovation should comfort anxious investors. Here's a brief overview of the pros and cons associated with buying each of these defensively oriented dividend stocks right now.
AbbVie: A 3.99% yield
AbbVie is a dividend powerhouse. The company has increased its dividend every year since it separated from Abbott Laboratories in 2013, resulting in a remarkable 270% growth in its payout over the past decade. As a result, AbbVie now offers one of the highest yields within its biopharma peer group at 3.99%. The drugmaker also sports a moderate cash payout ratio of 42%, implying that it can comfortably support additional increases to the dividend in the years ahead.
Now, there are a couple of important risk factors associated with this blue-chip dividend stock. AbbVie recently lost U.S. patent protection for Humira, an anti-inflammatory biologic therapy that has historically accounted for roughly 40% of the biopharma's annual sales and 50% of its profits. The company's next-generation immunology therapies, Skyrizi and Rinvoq, have both been experiencing exponential sales growth since coming on the market, but analysts doubt that they will fully compensate for Humira's decline until 2030.
AbbVie, on the other hand, has expressed more optimism, claiming that Skyrizi and Rinvoq, along with its other pipeline products, should enable it to generate robust top-line growth as soon as 2025. In any case, both management and analysts agree that the company's healthy free cash flows should comfortably support its generous dividend program for at least the next decade, if not longer. That may not be the most convincing outlook for a dividend stock (analysts usually prefer a competitive advantage that lasts for at least 20 years), but it should be enough to make AbbVie's shares a valuable part of a diversified income portfolio.
Amgen: A wide economic moat
Amgen is a leading biotechnology company that develops and markets innovative medicines for various therapeutic areas, such as oncology, cardiovascular, inflammation, and bone health. The company has a strong and diversified portfolio composed of 27 approved products, with nine of these products generating more than $1 billion in sales last year. Moreover, Amgen has a deep and diverse pipeline of novel candidates that could drive future revenue growth and value creation.
Amgen also rewards its shareholders with a generous dividend policy and a consistent share buyback program. The company pays an annual dividend of $8.52 per share, which corresponds to a yield of about 3.18% at the current price. The company has increased its dividend every year since 2011 at an above-average compound annual growth rate of about 10%.
With a moderate payout ratio of 54.8%, the company also has ample room to continue raising its dividend in the coming years. Additionally, Amgen has reduced its outstanding share count by an impressive 42.9% since its becoming a publicly traded company, demonstrating its commitment to returning capital to shareholders.
AMGN Average Diluted Shares Outstanding (Quarterly) data by YCharts
In all, Amgen screens as a compelling defensive play for investors looking for sustainable income and growth. The company has a solid competitive advantage due to its diversified and innovative product portfolio and pipeline, along with a top-shelf shareholder rewards program. While the biotech does have a high debt level, its core business is inherently economically insensitive and it generates enormous free cash flows ($9.3 billion per year on average over the past five years) capable of servicing its debt obligations and maintaining its dividend payments.
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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. | Biotech heavyweights AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) are both working through a multiyear portfolio churn, but their proven ability to maintain a strong competitive edge through industry-leading levels of innovation should comfort anxious investors. That may not be the most convincing outlook for a dividend stock (analysts usually prefer a competitive advantage that lasts for at least 20 years), but it should be enough to make AbbVie's shares a valuable part of a diversified income portfolio. AbbVie: A 3.99% yield AbbVie is a dividend powerhouse. | Biotech heavyweights AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) are both working through a multiyear portfolio churn, but their proven ability to maintain a strong competitive edge through industry-leading levels of innovation should comfort anxious investors. AbbVie: A 3.99% yield AbbVie is a dividend powerhouse. As a result, AbbVie now offers one of the highest yields within its biopharma peer group at 3.99%. | That may not be the most convincing outlook for a dividend stock (analysts usually prefer a competitive advantage that lasts for at least 20 years), but it should be enough to make AbbVie's shares a valuable part of a diversified income portfolio. Biotech heavyweights AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) are both working through a multiyear portfolio churn, but their proven ability to maintain a strong competitive edge through industry-leading levels of innovation should comfort anxious investors. AbbVie: A 3.99% yield AbbVie is a dividend powerhouse. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Biotech heavyweights AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) are both working through a multiyear portfolio churn, but their proven ability to maintain a strong competitive edge through industry-leading levels of innovation should comfort anxious investors. AbbVie: A 3.99% yield AbbVie is a dividend powerhouse. |
22152.0 | 2023-10-09 00:00:00 UTC | GCOW: An ETF for Dividend and Free Cash Flow Lovers | ABBV | https://www.nasdaq.com/articles/gcow%3A-an-etf-for-dividend-and-free-cash-flow-lovers | nan | nan | The Pacer Global Cash Cows Dividend ETF (BATS:GCOW) offers investors a nice mix of domestic and international companies that generate strong free cash flows, and it sports an attractive 5.9% dividend yield. Let’s take a deeper dive into this $1.6 billion ETF from Pacer and find out whether it’s an attractive opportunity for investors.
What is the GCOW ETF’s Strategy?
GCOW is part of the popular Pacer Cash Cows Index ETF Series, all of which take slightly different approaches to investing in stocks with high free cash flow yields. GCOW seeks to deliver both income and capital appreciation by investing in companies with high free cash flow yields and high dividend yields.
Free cash flow is the cash left over after a company pays for its expenses, interest, taxes, and long-term investments. Free cash flow yield is this free cash flow divided by the company’s enterprise value. A company with a high free cash flow yield can be viewed as undervalued.
Pacer explains that focusing on companies with high free cash flow yields is fruitful because “the ability to generate a high free cash flow yield indicates that a company has the capacity to pay dividends. Paying a dividend signals management is confident in the long-term viability of the business.”
Pacer also lists several additional benefits of this strategy. Focusing on companies with high free cash flow yields may lead to higher returns with lower volatility over time. Furthermore, companies with high free cash flow yields and high dividend yields have historically held up better than other stocks during market downturns.
GCOW's Investment Process
To choose what stocks it will invest in, GCOW runs a series of screens. It starts with the 1,000 stocks in the FTSE Developed Large-Cap Index. It then narrows this universe down to the 300 companies with the highest free cash flow yields on a trailing-12-month basis. Next, it narrows this list of 300 down to the 100 companies with the highest dividend yields over the trailing 12 months. It then weights these companies by their dividends and caps each position at a maximum weighting of 2%.
By running these screens, GCOW drastically reduces the valuation and increases the dividend and free cash flow yield of its portfolio. As of June 2023, the initial universe of 1,000 stocks had an average price-to-earnings ratio of 20.3 times earnings, a free cash flow yield of just 3.4%, and a dividend yield of just 1.8%. However, after running these screens, GCOW’s portfolio of holdings had a much cheaper price-to-earnings ratio of 6.8 times earnings and much higher free cash flow and dividend yields of 8.0% and 5.7%, respectively.
GCOW’s Holdings
After screening for these companies, what does GCOW’s portfolio look like in action? This diversified ETF holds 100 stocks, and its top 10 holdings account for just 21.5% of assets. Below, you’ll find an overview of GCOW’s top 10 holdings.
The fund currently owns quite a few energy names, like top holding EOG Resources (NYSE:EOG), Totalenergies (NYSE:TTE), Shell (NYSE:SHEL), and Chevron (NYSE:CVX), as these companies are producing strong free cash flows and paying substantial dividends to shareholders amid higher oil prices.
Beyond energy, GCOW owns healthcare names like AbbVie (NYSE:ABBV), Amgen (NASDAQ:AMGN), and Sanofi (NASDAQ:SNY). Other well-known, high-yielding companies like IBM (NYSE:IBM) and automaker Stellantis (NYSE:STLA) also land within GCOW’s top 10 holdings.
Outside of the top 10 holdings, GCOW features several investments in tobacco companies like Altria (NYSE:MO), Philip Morris (NYSE:PM), and British American Tobacco (NYSE:BTI), which are all well known for their high dividend yields and returns to shareholders. Similarly, it owns an array of global telecom providers like AT&T (NYSE:T), Verizon (NYSE:VZ), Deutsche Telekom AG (OTC:DTEGY), Vodafone (GB:VOD), and Orange SA (NYSE:ORAN), which are also known for their high dividend payouts.
GCOW’s top 10 holdings are also rated highly by TipRanks’ Smart Score system. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. An impressive seven out of GCOW’s top 10 holdings feature Outperform-equivalent Smart Scores of 8 or above.
Another thing that I like about GCOW is that while some funds focus on U.S. dividend stocks and some focus on international dividend stocks, GCOW gives investors exposure to both. The U.S. accounts for just over one-third of GCOW’s holdings, while the U.K. accounts for 14.15%. No other country accounts for a double-digit weighting, but you’ll also find stocks from Australia, Japan, Germany, France, and beyond in GCOW’s portfolio.
GCOW's Dividend
As discussed, GCOW features an attractive dividend yield of 5.9%. This yield is higher than the yield of the 10-year Treasury Note and is also almost quadruple the 1.6% yield of the S&P 500 (SPX). GCOW launched in 2016 and has been paying a dividend for six years in a row and counting. It has also increased its dividend payout for the last two years in a row.
How Has GCOW Performed in the Past?
As of the end of September, GCOW has put up an excellent annualized total return of 15.2% over the past three years, easily outperforming the broader market. For reference, the Vanguard S&P 500 ETF (NYSEARCA:VOO) returned 10.1% on an annualized basis over the same time frame.
On the other hand, GCOW underperformed the broader market over the past five years, with an annualized return of 5.8% versus VOO’s 9.9%.
The recent returns have been strong, and given GCOW’s high dividend yield, the choppy state of the overall market, and its exposure to a mix of U.S. and international stocks, it could be positioned to outperform from here.
Is GCOW Stock a Buy, According to Analysts?
Turning to Wall Street, GCOW earns a Moderate Buy consensus rating based on 48 Buys, 46 Holds, and eight Sell ratings assigned in the past three months. The average GCOW stock price target of $40.48 implies 26.1% upside potential.
A Relatively High Expense Ratio
The primary negative aspect of GCOW is its relatively high expense ratio of 0.60%. An investor making a $10,000 investment in GCOW would pay $60 in fees during their first year of investing in the fund. These fees can add up over the long term. Assuming that the expense ratio remains at 0.60% and the fund returns 5% per year, after 10 years, this investor would pay $750 in fees.
Looking Ahead
At the end of the day, GCOW offers investors a nice mix of exposure to both U.S. and international dividend stocks, an attractive 5.9% dividend yield, and a strong portfolio of companies with high free cash flow yields that are also rated highly by TipRanks’ Smart Score system.
The fund is a bit on the pricier side, and its five-year annualized return isn’t quite as compelling as its three-year return. Nevertheless, it looks well-positioned going forward, especially in an uncertain market environment, given its high dividend yield, portfolio of strong companies with high free cash flow yields, and diversified exposure.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Beyond energy, GCOW owns healthcare names like AbbVie (NYSE:ABBV), Amgen (NASDAQ:AMGN), and Sanofi (NASDAQ:SNY). However, after running these screens, GCOW’s portfolio of holdings had a much cheaper price-to-earnings ratio of 6.8 times earnings and much higher free cash flow and dividend yields of 8.0% and 5.7%, respectively. As of the end of September, GCOW has put up an excellent annualized total return of 15.2% over the past three years, easily outperforming the broader market. | Beyond energy, GCOW owns healthcare names like AbbVie (NYSE:ABBV), Amgen (NASDAQ:AMGN), and Sanofi (NASDAQ:SNY). The Pacer Global Cash Cows Dividend ETF (BATS:GCOW) offers investors a nice mix of domestic and international companies that generate strong free cash flows, and it sports an attractive 5.9% dividend yield. The fund currently owns quite a few energy names, like top holding EOG Resources (NYSE:EOG), Totalenergies (NYSE:TTE), Shell (NYSE:SHEL), and Chevron (NYSE:CVX), as these companies are producing strong free cash flows and paying substantial dividends to shareholders amid higher oil prices. | Beyond energy, GCOW owns healthcare names like AbbVie (NYSE:ABBV), Amgen (NASDAQ:AMGN), and Sanofi (NASDAQ:SNY). GCOW seeks to deliver both income and capital appreciation by investing in companies with high free cash flow yields and high dividend yields. Pacer explains that focusing on companies with high free cash flow yields is fruitful because “the ability to generate a high free cash flow yield indicates that a company has the capacity to pay dividends. | Beyond energy, GCOW owns healthcare names like AbbVie (NYSE:ABBV), Amgen (NASDAQ:AMGN), and Sanofi (NASDAQ:SNY). GCOW is part of the popular Pacer Cash Cows Index ETF Series, all of which take slightly different approaches to investing in stocks with high free cash flow yields. Assuming that the expense ratio remains at 0.60% and the fund returns 5% per year, after 10 years, this investor would pay $750 in fees. |
22153.0 | 2023-10-09 00:00:00 UTC | AbbVie (ABBV) Rises Yet Lags Behind Market: Some Facts Worth Knowing | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-rises-yet-lags-behind-market%3A-some-facts-worth-knowing | nan | nan | AbbVie (ABBV) closed the latest trading day at $149.11, indicating a +0.59% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.39%.
The drugmaker's shares have seen a decrease of 0.52% over the last month, surpassing the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39%.
The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2023. The company is expected to report EPS of $2.87, down 21.58% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $13.66 billion, showing a 7.77% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.01 per share and revenue of $53.49 billion. These totals would mark changes of -20.04% and -7.87%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AbbVie. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.45% lower. Currently, AbbVie is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 13.46. This valuation marks a discount compared to its industry's average Forward P/E of 13.98.
We can additionally observe that ABBV currently boasts a PEG ratio of 2.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.7.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 217, this industry ranks in the bottom 14% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.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 (ABBV) closed the latest trading day at $149.11, indicating a +0.59% change from the previous session's end. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the latest trading day at $149.11, indicating a +0.59% change from the previous session's end. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the latest trading day at $149.11, indicating a +0.59% change from the previous session's end. The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. It is also important to note the recent changes to analyst estimates for AbbVie. | The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. AbbVie (ABBV) closed the latest trading day at $149.11, indicating a +0.59% change from the previous session's end. It is also important to note the recent changes to analyst estimates for AbbVie. |
22154.0 | 2023-10-06 00:00:00 UTC | AbbVie (ABBV) Buys Parkinson's Disease Treatment Maker | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-buys-parkinsons-disease-treatment-maker | nan | nan | AbbVie ABBV announced that it is exercising its exclusive right and acquiring private biotech company Mitokinin, which is making a novel treatment for Parkinson's Disease (“PD”).
Mitokinin’s lead pipeline compound is a selective PINK1 activator that addresses mitochondrial dysfunction, which plays an instrumental role in the pathogenesis and progression of PD. Mutations in the PINK1 gene can cause a loss of the PINK1 function, which can result in familial forms of PD. Targeting the PINK1 gene can provide a novel approach for treating PD. Pre-clinical data has shown that the compound can selectively enhance the active form of the PINK1 gene, which amends mitochondrial damage and re-instates mitochondrial function
The candidate, if successfully developed, could be a potential new treatment option for PD. Therapies available to treat PD presently reduce the symptoms of the disease but none prevent the progression of the disease.
Year to date, AbbVie’s shares have lost 8.8% against the industry’s 2.9% rise.
Image Source: Zacks Investment Research
For the deal, AbbVie is making a payment of $110 million to Mitokinin shareholders who will also remain eligible for potential development/commercial milestone payments of up to $545 million
The acquisition, if successfully closed, will strengthen AbbVie’s neuroscience pipeline.
AbbVie’s neuroscience portfolio includes mature drugs like Vraylar and Botox as well as newer drugs like Ubrelvy and Qulipta. While Vraylar is approved for schizophrenia and manic or mixed episodes associated with bipolar I disorder, Botox is approved for several neuroscience indications including chronic migraine, and spastic disorders among others. AbbVie’s neuroscience drugs generated sales of $3.1 billion in the first half of 2023, up 13.8% year over year.
AbbVie also has another PD candidate in its neuroscience pipeline called ABBV-951 for treating motor fluctuations in patients with advanced PD. In March this year, the FDA issued a complete response letter (CRL) to AbbVie’s new drug application (“NDA”) seeking approval for ABBV-951.
ABBV-951 is a solution of carbidopa and levodopa prodrugs, which are the standard of care for PD patients. ABBV-951 has been designed to offer continuous subcutaneous delivery of CD/LD prodrugs through a pump device and offer a better patient experience. In the CRL, the FDA has asked for some extra information about the pump device used to administer the medicine. The FDA has not requested any additional efficacy/safety studies.
Zacks Rank & Key Picks
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Some top-ranked drug/biotech companies worth considering are Alpine Immune Sciences ALPN, Aurinia Pharmaceuticals AUPH and Corcept Therapeutics CORT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the consensus estimate for Alpine Immune Sciences’ 2023 loss has narrowed from $1.43 per share to $1.18 per share, while the same for 2024 has narrowed from $1.73 per share to $1.47 per share. Year to date, shares of Alpine Immune Sciences have rallied 65.5%.
ALPN’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative earnings surprise of 79.65%.
In the past 60 days, the loss per share estimate for Aurinia Pharmaceuticals for 2023 has narrowed from 64 cents per share to 58 cents per share, while that for 2024 has narrowed from 37 cents to 27 cents. Year to date, shares of Aurinia Pharmaceuticals have gained 68.5%.
Earnings of Aurinia Pharmaceuticals beat estimates in all the last four quarters, delivering an earnings surprise of 45.61% on average.
In the past 60 days, the Zacks Consensus Estimate for Corcept’s earnings has increased from 75 cents per share to 78 cents for 2023. The bottom-line estimate has also improved from 81 cents to 83 cents for 2024 during the same time frame. Shares of the company have rallied 30.4% year to date.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average earnings surprise of 6.99%.
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 >>
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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 that it is exercising its exclusive right and acquiring private biotech company Mitokinin, which is making a novel treatment for Parkinson's Disease (“PD”). In March this year, the FDA issued a complete response letter (CRL) to AbbVie’s new drug application (“NDA”) seeking approval for ABBV-951. Year to date, AbbVie’s shares have lost 8.8% against the industry’s 2.9% rise. | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Some top-ranked drug/biotech companies worth considering are Alpine Immune Sciences ALPN, Aurinia Pharmaceuticals AUPH and Corcept Therapeutics CORT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report Aurinia Pharmaceuticals Inc (AUPH) : Free Stock Analysis Report Alpine Immune Sciences, Inc. (ALPN) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that it is exercising its exclusive right and acquiring private biotech company Mitokinin, which is making a novel treatment for Parkinson's Disease (“PD”). | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Some top-ranked drug/biotech companies worth considering are Alpine Immune Sciences ALPN, Aurinia Pharmaceuticals AUPH and Corcept Therapeutics CORT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report Aurinia Pharmaceuticals Inc (AUPH) : Free Stock Analysis Report Alpine Immune Sciences, Inc. (ALPN) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that it is exercising its exclusive right and acquiring private biotech company Mitokinin, which is making a novel treatment for Parkinson's Disease (“PD”). | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Some top-ranked drug/biotech companies worth considering are Alpine Immune Sciences ALPN, Aurinia Pharmaceuticals AUPH and Corcept Therapeutics CORT, each carrying a Zacks Rank #2 (Buy) at present. AbbVie ABBV announced that it is exercising its exclusive right and acquiring private biotech company Mitokinin, which is making a novel treatment for Parkinson's Disease (“PD”). Year to date, AbbVie’s shares have lost 8.8% against the industry’s 2.9% rise. |
22155.0 | 2023-10-06 00:00:00 UTC | Should You Load Up On This 1 Dividend Stock? | ABBV | https://www.nasdaq.com/articles/should-you-load-up-on-this-1-dividend-stock | nan | nan | There are excellent reasons to invest in dividend stocks beyond their regular payouts. Growing a dividend requires companies to deliver solid financial results regularly, and the longer a corporation can keep things going, the more it says about the strength of its operations. Furthermore, investors who choose to reinvest dividends can boost long-term returns. Over several decades, a substantial percentage of market returns are due to dividends being reinvested.
Of course, not all income stocks are equally promising. But one that looks attractive right now is drugmaker AbbVie (NYSE: ABBV). Here is why.
AbbVie's stellar dividend history
AbbVie was once a division of the medical device giant Abbott Laboratories. The two companies officially divorced in 2013. But it is through this legacy that AbbVie is considered a Dividend King -- one of the most elite group of dividend payers on the market. What does it take to be a Dividend King? Companies must have raised their payouts for at least 50 consecutive years without interruptions. AbbVie officially joined this group in 2022, nine years after splitting from Abbott.
In other words, as a stand-alone company, the drugmaker also prioritizes rewarding shareholders with regular dividend hikes. In the past 10 years, the pharmaceutical giant has increased its payouts by 270%. AbbVie's dividend profile is exemplary in other ways. Consider the company's yield of 3.99%. The S&P 500's average is just 1.54%. Also, AbbVie's cash payout ratio of 42% is conservative and means there is plenty more room for dividend hikes.
Handling its biggest headwind
Naysayers will quickly mention that AbbVie now faces generic competition in the U.S. for its best-selling medicine, arthritis therapy Humira. It has been, by far, AbbVie's biggest growth driver since 2013. This is, without a doubt, the biggest obstacle AbbVie has encountered as a stand-alone company. But management knew it was coming from several miles away and took adequate precautions.
AbbVie's sales are currently declining and will do so until next year. After that, they should start growing again, in no small part thanks to a duo of immunology drugs, Skyrizi and Rinvoq, that are plugging up the gaping hole left by Humira. They aren't doing so entirely yet, but according to management, Skyrizi and Rinvoq will combine to generate peak annual sales that will surpass those of Humira.
This is no small feat, even in a two-against-one contest. Humira is the best-selling medicine in the history of the industry. The fact that AbbVie found a way to replace its earnings, albeit with two drugs, is just more evidence of the company's ability to continue developing newer and better medicines, a great sign for the future. AbbVie's more than 90 pipeline programs should help it unearth more gems of this kind.
Meanwhile, the rest of the company's lineup will also contribute, from its Botox products to its migraine treatment Qulipta. So, despite facing generic competition for Humira, AbbVie is far from dead in the water.
Income-seekers need not look elsewhere
While no one can precisely predict the future, AbbVie's excellent dividend history and robust business strongly suggest that the company is unlikely to suspend its payouts anytime soon. Considering how difficult it is to join the club of Dividend Kings -- and that missing even one year of raising its dividends would lead to its being booted out -- the smart money is on AbbVie to continue growing its payouts for a while.
That's why dividend investors can't go wrong with this stock, and right now, they can acquire it at a bit of a discount. Top-shelf dividend stocks tend to attract many investors who bid up their share prices, leading to relatively rich valuation metrics. But AbbVie's Humira-related struggles have created an opportunity. The company's forward price-to-earnings (P/E) ratio is just 13.3 as of this writing -- compared to an average forward P/E of 16.1 for the pharmaceutical industry.
At current levels, AbbVie looks like a strong buy for income-seeking investors.
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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. | Handling its biggest headwind Naysayers will quickly mention that AbbVie now faces generic competition in the U.S. for its best-selling medicine, arthritis therapy Humira. The fact that AbbVie found a way to replace its earnings, albeit with two drugs, is just more evidence of the company's ability to continue developing newer and better medicines, a great sign for the future. Income-seekers need not look elsewhere While no one can precisely predict the future, AbbVie's excellent dividend history and robust business strongly suggest that the company is unlikely to suspend its payouts anytime soon. | So, despite facing generic competition for Humira, AbbVie is far from dead in the water. But one that looks attractive right now is drugmaker AbbVie (NYSE: ABBV). AbbVie's stellar dividend history AbbVie was once a division of the medical device giant Abbott Laboratories. | AbbVie's stellar dividend history AbbVie was once a division of the medical device giant Abbott Laboratories. Income-seekers need not look elsewhere While no one can precisely predict the future, AbbVie's excellent dividend history and robust business strongly suggest that the company is unlikely to suspend its payouts anytime soon. Considering how difficult it is to join the club of Dividend Kings -- and that missing even one year of raising its dividends would lead to its being booted out -- the smart money is on AbbVie to continue growing its payouts for a while. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! But one that looks attractive right now is drugmaker AbbVie (NYSE: ABBV). AbbVie's stellar dividend history AbbVie was once a division of the medical device giant Abbott Laboratories. |
22156.0 | 2023-10-06 00:00:00 UTC | Pharma Stock Roundup: LLY Offers to Buy POINT Biopharma & Other Updates | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-lly-offers-to-buy-point-biopharma-other-updates | nan | nan | This week, Eli Lilly LLY announced a deal to take over POINT Biopharma for approximately $1.4 billion. Sanofi SNY in-licensed co-development and commercialization rights to Teva’s immunology candidate. Novartis NVS announced positive top-line data from a late-stage study on pipeline candidate iptacopan in patients with IgA nephropathy (IgAN). AstraZeneca AZN settled its product liability litigation related to its heartburn drugs, Nexium and Prilosec, for $425 million.AbbVie ABBV announced that it is buying a private Parkinson’s disease drug developer, Mitokinin.
Recap of the Week’s Most Important Stories
Lilly to Buy POINT Biopharma for $1.4B: Lilly offered to buy POINT Biopharma, a maker of next-generation radioligand therapies for treating cancers, for approximately 1.4 billion in cash, or $12.50 per share. Radioligand therapy is a type of precision cancer treatment, which combines a targeting compound (ligand) with a therapeutic radioisotope (a radioactive particle). POINT Biopharma’s lead pipeline candidate is PNT2002, which is being developed to treat metastatic castration-resistant prostate cancer (mCRPC) after progression on hormonal treatment. The phase III SPLASH study on PNT2002 is complete and top-line data is expected in the fourth quarter of 2023. The transaction has been approved by the boards of directors of both companies and is expected to be closed by the end of the year
The acquisition of POINT Biopharma, if successfully closed, will bolster Lilly’s portfolio of cancer drugs.
The FDA issued a complete response letter (CRL) to Lilly’s biologic license application (BLA) seeking approval of lebrikizumab for moderate-to-severe atopic dermatitis, also called eczema. The CRL was based on inspection findings at a third-party manufacturer, which included a monoclonal antibody drug substance for lebrikizumab. The CRL did not mention any issues with the clinical data that supported the BLA or the safety or label of the candidate. Lilly plans to work closely with the FDA and the third-party manufacturer to resolve the issue. The BLA includes data from Advocate 1, ADvocate 2 and ADhere studies on lebrikizumab. A regulatory application seeking approval for lebrikizumab is also under review in Europe, with a decision expected later this year.
Sanofi’s Buys Joint Rights to Teva’s IBS Candidate: Sanofi announced a collaboration with Teva to jointly develop and commercialize the latter’s inflammatory bowel disease (“IBD”) candidate, TEV’574, a novel anti-TL1A therapy. TEV’574 is presently being evaluated in a phase IIb study for ulcerative colitis and Crohn's disease, which are two types of IBD. Initial data from the studies are expected in 2024. For the deal, Sanofi will make an upfront payment of $500 million to Teva while also being entitled to make development/launch-related milestone payments of up to $1 billion. Teva and Sanofi will equally share the development costs globally.
Sanofi also announced a deal with J&J for developing and commercializing the latter’s vaccine candidate for 9-valent extraintestinal pathogenic E. coli, which is a leading cause of sepsis, mainly in older adults. The vaccine candidate is currently in late-stage development. For the deal, Sanofi has agreed to make an upfront payment of $75 million to J&J and then some undisclosed milestone payments.
AbbVie Buys Private Parkinson’s Disease Drug Developer: AbbVie announced that it has exercised its exclusive right and acquired Mitokinin to strengthen its neuroscience pipeline. Mitokinin’s lead pipeline compound is a selective PINK1 activator that addresses mitochondrial dysfunction, which plays an instrumental role in the pathogenesis of Parkinson’s disease (‘PD”). The candidate, if successfully developed, could be a potential new treatment option for PD. Pre-clinical data has shown that the compound can selectively enhance the active form of the PINK1 gene, which amends mitochondrial damage and re-instates mitochondrial function.
For the deal, AbbVie is making a payment of $110 million while Mitokinin shareholders will remain eligible for potential development/commercial milestone payments of up to $545 million
Novartis Iptacopan Phase III IgAN Study Meets Primary Goal: Novartis’s phase III APPLAUSE study evaluating iptacopan in patients with IgAN, a complement-mediated disease, met its pre-specified interim analysis primary endpoint. Data from the study demonstrated that treatment with iptacopan, an oral factor B inhibitor targeting the alternative complement pathway, led to a clinically meaningful and highly statistically significant reduction in proteinuria (protein in urine) in patients with IgAN. The study continues to evaluate iptacopan’s ability to slow IgAN progression by measuring the estimated glomerular filtration rate (eGFR) slope over 24 months. eGFR measure is the primary endpoint at the study’s end with a final readout (24 months) expected in 2025.
Novartis plans to seek accelerated approval for iptacopan for the IgAN indication based on interim data. Novartis has also filed regulatory applications seeking approval of iptacopan for another indication, paroxysmal nocturnal hemoglobinuria, in the United States and EU while the candidate is being studied in phase III for C3 glomerulopathy, atypical hemolytic uremic syndrome and immune complex membranoproliferative glomerulonephritis.
Novartis completed the spin-off of its generic and biosimilar unit, Sandoz, following which Sandoz became an independent company. Novartis maintained its financial outlook for 2023. Sales are expected to grow in high single digits and core operating income is expected to grow in low double digits to mid-teens.
AstraZeneca Agrees to Pay $425 million to Settle Nexium, Prilosec Litigation: AstraZeneca entered into settlement agreements for pending litigations related to its proton pump inhibitors (PPIs), Nexium and Prilosec, for $425 million. Various lawsuits were filed in federal and state courts, claiming that treatment with heartburn drugs, Nexium and Prilosec, have caused the plaintiffs kidney injuries. The lawsuits claim AstraZeneca should have warned the patients about the side effects of the PPI drugs. In August 2017, the pending federal court cases were consolidated in a multidistrict litigation (MDL) proceeding in a district court of New Jersey. In addition to the MDL cases, there were cases filed in several other U.S. state courts.
The latest settlement resolves the claims pending in the MDL cases in New Jersey as well as in courts in Delaware. Only a single case remains pending in a district court of Louisiana, for which a trial is scheduled for Apr 15, 2024.
AstraZeneca’s Farxiga/Forxiga demonstrated clinically meaningful improvements in glycemia control in a pediatric type II diabetes study. Data from the T2NOW phase III study showed that treatment with Farxiga/Forxiga led to a significant reduction in A1C, a marker of average blood sugar, among patients aged 10-17 years compared to placebo. At week 26, the study achieved statistical significance in the primary endpoint and in all secondary endpoints versus placebo.
The NYSE ARCA Pharmaceutical Index declined 0.81% in the last five trading sessions.
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, while Pfizer rose the most (4.3%), Novartis declined the most (6%).
In the past six months, Lilly has risen the most (47%), while Pfizer has declined the most (19.4%).
(See the last pharma stock roundup here:FDA and EMA Regulatory Updates for ABBV, LLY, SNY & MRK’s Drugs)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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 >>
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Sanofi (SNY) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Novartis AG (NVS) : 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.
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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. | AstraZeneca AZN settled its product liability litigation related to its heartburn drugs, Nexium and Prilosec, for $425 million.AbbVie ABBV announced that it is buying a private Parkinson’s disease drug developer, Mitokinin. AbbVie Buys Private Parkinson’s Disease Drug Developer: AbbVie announced that it has exercised its exclusive right and acquired Mitokinin to strengthen its neuroscience pipeline. For the deal, AbbVie is making a payment of $110 million while Mitokinin shareholders will remain eligible for potential development/commercial milestone payments of up to $545 million Novartis Iptacopan Phase III IgAN Study Meets Primary Goal: Novartis’s phase III APPLAUSE study evaluating iptacopan in patients with IgAN, a complement-mediated disease, met its pre-specified interim analysis primary endpoint. | AstraZeneca AZN settled its product liability litigation related to its heartburn drugs, Nexium and Prilosec, for $425 million.AbbVie ABBV announced that it is buying a private Parkinson’s disease drug developer, Mitokinin. For the deal, AbbVie is making a payment of $110 million while Mitokinin shareholders will remain eligible for potential development/commercial milestone payments of up to $545 million Novartis Iptacopan Phase III IgAN Study Meets Primary Goal: Novartis’s phase III APPLAUSE study evaluating iptacopan in patients with IgAN, a complement-mediated disease, met its pre-specified interim analysis primary endpoint. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : 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 the deal, AbbVie is making a payment of $110 million while Mitokinin shareholders will remain eligible for potential development/commercial milestone payments of up to $545 million Novartis Iptacopan Phase III IgAN Study Meets Primary Goal: Novartis’s phase III APPLAUSE study evaluating iptacopan in patients with IgAN, a complement-mediated disease, met its pre-specified interim analysis primary endpoint. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : 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. AstraZeneca AZN settled its product liability litigation related to its heartburn drugs, Nexium and Prilosec, for $425 million.AbbVie ABBV announced that it is buying a private Parkinson’s disease drug developer, Mitokinin. | For the deal, AbbVie is making a payment of $110 million while Mitokinin shareholders will remain eligible for potential development/commercial milestone payments of up to $545 million Novartis Iptacopan Phase III IgAN Study Meets Primary Goal: Novartis’s phase III APPLAUSE study evaluating iptacopan in patients with IgAN, a complement-mediated disease, met its pre-specified interim analysis primary endpoint. AstraZeneca AZN settled its product liability litigation related to its heartburn drugs, Nexium and Prilosec, for $425 million.AbbVie ABBV announced that it is buying a private Parkinson’s disease drug developer, Mitokinin. AbbVie Buys Private Parkinson’s Disease Drug Developer: AbbVie announced that it has exercised its exclusive right and acquired Mitokinin to strengthen its neuroscience pipeline. |
22157.0 | 2023-10-05 00:00:00 UTC | Retirement Royalty: 3 Dividend Aristocrats for a Steady Income Stream | ABBV | https://www.nasdaq.com/articles/retirement-royalty%3A-3-dividend-aristocrats-for-a-steady-income-stream | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend investing will always stay in style. While the market moves in cycles of ups and downs, dividend investing offers income even during prolonged market downturns. This reliable income has garnered the interest and love of most long-term investors due to its ability to combine growth and an alternative return via cash dividends. While it’s true that most dividend companies are pretty much established in their fields and offer less room for growth due to the nature of their business, there is a way to offset some of that missing growth through growing dividends.
Let me introduce the dividend aristocrats. These are elite dividend companies with a strong track history and have consistently increased their dividends for many years — specifically, 25 years as a minimum. The companies also have to be part of the S&P 500 Index. This quality of the dividend stock lets you enjoy growth, stability, and predictable income for a comfortable retirement. Not bad for long-term strategy, right? Now, let’s look at three dividend aristocrats with promising yields.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company specializing in various therapeutic products in immunology, oncology, aesthetics, and neuroscience. The company has been making strides in multiple products currently in development. It recently received approval from the European Commission on TEPKINLY® as an adult treatment for refractory Diffuse Large B-cell Lymphoma. ABBV also announced positive Phase 3 topline results on the second set of its three-phase trial for its BOTOX® Cosmetic as a treatment for the disruption on the neck, jawline, and lower face attributed to platysma prominence.
AbbVie currently pays a dividend yield of 3.97%. The company has consistently increased its dividends for 51 years and is a member of the S&P 500 Dividend Aristocrat index. ABBV recently beat analyst EPS estimates by 4.30%. According to the latest financial reports, most of its performance is driven by its non-Humira business. ABBV has also raised its 2023 outlook for its adjusted diluted EPS guidance range of $10.90 – $11.10 from $10.57 – $10.97. With a strong portfolio of upcoming products and dividend history, ABBV is an excellent choice for dividend stocks to buy for retirement.
Chevron (CVX)
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Chevron Corporation (NYSE:CVX) is an energy company that produces crude oil and natural gas and other vertically aligned products like lubricants, additives, and petrochemicals. The company explores, develops, and produces oil and natural gas, liquified natural gas, and refined products in its upstream and downstream segments. Chevron’s recent acquisition of PDC Energy is expected to boost the company’s reserves by at least 10%. According to Mike Wirth, Chevron’s chairman and chief executive officer, “Our consistent performance and disciplined use of capital are driving superior value for our shareholders.”
CVX is currently offering a 3.53% dividend yield, and the company has consistently increased its dividend payouts for 36 consecutive years. CVX has returned $7.2 billion to its shareholders via buybacks and dividends, a 37% increase YOY. That is some sweet income for its long-term shareholders, which is why it is one of the top Dividend Aristocrats on our list.
Coca-Cola Company (KO)
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Coca-Cola (NYSE:KO) is one of the most well-recognized beverage companies globally. It is famous for its Coca-Cola and is a favorite of most long-term investors like Warren Buffet. The company has expanded its portfolio of products to non-cola beverages like dairy, plant-based beverages, sports drinks, and more. It previously announced the addition of two new flavors for VitaminWater to its growing portfolio. KO recently announced that Thomas S. Gayner, CEO of Markel Group, has been elected as a director. Henrique Braun, Coca-Cola’s current President of International Development, was also voted as Corporate Senior Vice President.
KO announced strong financial performance for the 2nd quarter. KO beat EPS estimates by 8.33% to $0.59, while comparable non-GAAP EPS increased 11% to $0.78. Net revenue also grew by 6%, while non-GAAP organic revenues grew by 11%. The company pays a dividend yield of 3.25% based on the stock’s latest trading price and has consistently increased its dividends for 61 years, cementing its place in the dividend aristocrats list.
On the date of publication, Rick Orford 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
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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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. | ABBV also announced positive Phase 3 topline results on the second set of its three-phase trial for its BOTOX® Cosmetic as a treatment for the disruption on the neck, jawline, and lower face attributed to platysma prominence. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company specializing in various therapeutic products in immunology, oncology, aesthetics, and neuroscience. AbbVie currently pays a dividend yield of 3.97%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company specializing in various therapeutic products in immunology, oncology, aesthetics, and neuroscience. ABBV also announced positive Phase 3 topline results on the second set of its three-phase trial for its BOTOX® Cosmetic as a treatment for the disruption on the neck, jawline, and lower face attributed to platysma prominence. AbbVie currently pays a dividend yield of 3.97%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company specializing in various therapeutic products in immunology, oncology, aesthetics, and neuroscience. ABBV also announced positive Phase 3 topline results on the second set of its three-phase trial for its BOTOX® Cosmetic as a treatment for the disruption on the neck, jawline, and lower face attributed to platysma prominence. AbbVie currently pays a dividend yield of 3.97%. | With a strong portfolio of upcoming products and dividend history, ABBV is an excellent choice for dividend stocks to buy for retirement. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company specializing in various therapeutic products in immunology, oncology, aesthetics, and neuroscience. ABBV also announced positive Phase 3 topline results on the second set of its three-phase trial for its BOTOX® Cosmetic as a treatment for the disruption on the neck, jawline, and lower face attributed to platysma prominence. |
22158.0 | 2023-10-04 00:00:00 UTC | 7 Top Healthcare Stocks That Pay Dividends | ABBV | https://www.nasdaq.com/articles/7-top-healthcare-stocks-that-pay-dividends | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Facing an uncertain market environment, investors ought to consider the top healthcare stocks that pay dividends. Sure, the Federal Reserve may be in a position to facilitate a soft landing for the economy, per bullish analysts. Genuinely, I hope that’s the case. But you can wish on one hand and, well, you know the rest.
Primarily, the core benefit of top healthcare stocks that pay dividends centers on the “permanent” relevance of the underlying sector. To be clear, all sectors suffer the vulnerability of obsolescence sometime down the road. However, unless you anticipate a future where all diseases are eradicated, there’s a good chance healthcare will stick around.
Second, top healthcare stocks that pay dividends naturally deliver passive income. Yes, the income itself can help bolster one’s portfolio, no doubt about it. But just the very fact that companies pay such dividends typically underscore consistent, predictable business models. With ambiguity being the rising theme of the moment, these are the top healthcare stocks that pay dividends.
UnitedHealth (UNH)
Source: Ken Wolter / Shutterstock.com
A multinational managed healthcare and insurance provider, UnitedHealth (NYSE:UNH) is one of the most commonly cited top healthcare stocks that pay dividends. Undeniably, the company plays a significant role in the U.S. healthcare system thanks to its extensive range of services and vast customer base. As a result, it levers much influence on industry trends, costs, and service delivery.
Financially, the company might not be particularly remarkable. For example, UNH trades at a forward earnings multiple of 18.24, which is extremely high. At the same time, in exchange for that lofty premium, you get a consistently profitable enterprise. In addition, UnitedHealth’s return on equity (ROE) pops at 27.14%, beating out 84.21% of its rivals.
Regarding passive income, UNH carries a forward yield of 1.48%, which admittedly isn’t that generous. Nevertheless, its payout ratio sits at just under 27%. This provides confidence in yield sustainability. Finally, analysts peg UNH a strong buy with a $572.83 price target, implying over 12% upside potential.
Cardinal Health (CAH)
Source: Shutterstock
Another multinational healthcare services firm, Cardinal Health (NYSE:CAH) ranks among the top healthcare stocks that pay dividends based on revenue generation. Based in Dublin, Ohio, Cardinal specializes in the distribution of pharmaceuticals and medical products. Per its public profile, the company serves more than 100,000 locations. Since the beginning of this year, CAH gained a bit over 13% of its equity value.
As with some of its rivals, Cardinal doesn’t exactly offer the most sterling financials ever. Notably, CAH trades at a forward earnings multiple of 12.98X. That’s a bit lower than the sector median of 13.97x but not by a whole lot. Still, the main positive here may be its top-line expansion. Its three-year revenue growth rate clocks in at 14.5%, above 78.57% of its peers.
As for passive income, Cardinal Health posts a forward yield of 2.31%. Primarily, the takeaway here is that the company commands a history of 38 years of consecutive dividend increases. Lastly, analysts rate CAH a moderate buy with a $98.89 target, implying nearly 14% growth.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
A pharmaceutical giant, AbbVie (NYSE:ABBV) commands a diverse lineup of products for diseases. Among its most well-known therapeutics is Humira. However, the company has also made several strategic acquisitions to bolster its product portfolio. In particular, I’m fascinated with the Allergan buyout, which gives AbbVie control over Botox. Given society’s ultra-focused value on youth, Botox could be a huge moneymaker.
Financially, ABBV symbolizes one of the top healthcare stocks that pay dividends because of its attractive valuation. Since the start of the year, ABBV dipped more than 9%. I think that’s a mistake, but whatever. The red ink now allows contrarian investors to pick up ABBV at only 13.41x forward earnings. Enticingly, this makes AbbVie rank favorably lower than 60.16% of its peers.
Regarding passive income, AbbVie also sports a forward yield of 4.02%. That’s well above the healthcare sector’s average yield of 1.58%. Also, the payout ratio is reasonable at 53.31%. To close, analysts peg ABBV as a moderate buy with a $169.50 target, implying 15% upside.
Johnson & Johnson (JNJ)
Source: Sundry Photography / Shutterstock.com
One of the top healthcare stocks that pay dividends – or by any other measure – Johnson & Johnson (NYSE:JNJ) needs no introduction. Recently, the company spun off its consumer healthcare products unit, allowing it to concentrate on its pharmaceutical and medical technology businesses. However, investors so far aren’t all that impressed with JNJ. Since the January opener, shares slipped almost 13%.
Is the red ink a mistake? On the financials, the move downward contributed to JNJ being closer to a solid deal. For example, shares now trade at a forward earnings multiple of 14.25x. In contrast, the drug manufacturing industry sports a forward price-earnings ratio of 15.13x. However, for the long haul, I’m focused on strong margins and consistent profitability.
Such robust stats play strongly into J&J’s forward yield, which comes in at 3.06%. That’s a solid rate of passive income compared to the industry. Also, the company has enjoyed 62 years of consecutive dividend increases. Turning to Wall Street, analysts rate JNJ a moderate buy with a $178.64 target, implying 15% upside.
Patterson Companies (PDCO)
Source: IgorGolovniov / Shutterstock.com
A medical supplies conglomerate, Patterson Companies (NASDAQ:PDCO) primarily concentrates on the veterinary and dental products segments. Both specialties arguably make PDCO one of the top healthcare stocks that pay dividends. For example, the American Pet Products Association continues to release industry data that shows veterinary demand rising. As well, proper dental care is essential to overall wellbeing.
Since the beginning of the year, PDCO gained just over 7%, which is a modest figure. As a result, an argument can be made that it’s undervalued. Right now, shares trade at a forward multiple of 11.94x. In contrast, the underlying medical distribution industry sports a forward PE ratio of 13.97X. This stat ranks favorably lower than 70.59% of the competition.
Heading over to passive income, Patterson carries a forward yield of 3.49%. Notably, that’s also quite higher than the 1.58% average of the broader healthcare space. As well, the payout ratio sits comfortably at 38.76%. Looking to the Street, analysts rate PDCO a moderate buy with a $36.60 target, implying almost 23% growth.
Medtronic (MDT)
Source: JHVEPhoto / Shutterstock.com
Heading over to the riskiest ideas of top healthcare stocks that pay dividends, Medtronic (NYSE:MDT) is a medical device company. Earlier this year, the company suffered serious questions about its growth projections. More recently, MDT managed to swing higher – before slipping conspicuously – based on strong fiscal first-quarter results and boosted guidance. In the trailing month, however, MDT is down almost 5%.
Naturally, prospective investors will want to carefully consider exposure to Medtronic. Over the past three years, its operational stats haven’t been exactly lighting up the board. That said, for contrarians, MDT now trades at a forward multiple of 15.04x. Enticingly, this stat comes in lower than 72.32% of its peers in the medical devices and instruments sector.
Turning to passive income, Medtronic sports a forward yield of 3.61%. Notably, the company commands 47 years of consecutive dividend increases. As well, the payout ratio sits at 50.39%. Lastly, analysts peg MDT as a moderate buy with a $94 target, implying nearly 23% upside.
CVS Health (CVS)
Source: Susan Montgomery / Shutterstock.com
One of the most recognizable names among top healthcare stocks that pay dividends, CVS Health (NYSE:CVS) owns CVS Pharmacy, a popular retail pharmacy chain. As well, it owns a pharmacy benefits manager (Caremark) and Aetna, a health insurance provider. Still, significant competitive pressures have pressured CVS stock, with investors wondering about its viability.
Since the start of the year, shares lost more than 25% of equity value so the concerns are legitimate. Obviously, you want to think carefully about heavy exposure to this risky idea. Nevertheless, for contrarians, it’s worth pointing out that CVS now trades at a forward earnings multiple of 8.1X. This stat ranks lower than 77.78% of its peers in the healthcare plans industry.
Looking at passive income, CVS commands a forward yield of 3.49%, which on the surface is quite attractive. Also, the payout ratio sits at 28.16%, providing some confidence for yield sustainability. On a final note, analysts peg CVS as a strong buy with a $91.53 target, implying over 32% 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: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) commands a diverse lineup of products for diseases. In particular, I’m fascinated with the Allergan buyout, which gives AbbVie control over Botox. Financially, ABBV symbolizes one of the top healthcare stocks that pay dividends because of its attractive valuation. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) commands a diverse lineup of products for diseases. In particular, I’m fascinated with the Allergan buyout, which gives AbbVie control over Botox. Financially, ABBV symbolizes one of the top healthcare stocks that pay dividends because of its attractive valuation. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) commands a diverse lineup of products for diseases. In particular, I’m fascinated with the Allergan buyout, which gives AbbVie control over Botox. Financially, ABBV symbolizes one of the top healthcare stocks that pay dividends because of its attractive valuation. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) commands a diverse lineup of products for diseases. In particular, I’m fascinated with the Allergan buyout, which gives AbbVie control over Botox. Financially, ABBV symbolizes one of the top healthcare stocks that pay dividends because of its attractive valuation. |
22159.0 | 2023-10-04 00:00:00 UTC | 3 High-Yielding Dividend Growth Stocks That Have Increased Their Payouts by 50% in 5 Years | ABBV | https://www.nasdaq.com/articles/3-high-yielding-dividend-growth-stocks-that-have-increased-their-payouts-by-50-in-5-years | nan | nan | If you're investing in a dividend stock, there's more than just the yield and the payout ratio to consider. It's also important to look at dividend increases -- whether the company has been making them in the past and is likely to continue doing so in the future. That's because if dividend payments grow, you'll be collecting more income over the years -- and that can help to offset the impact of inflation.
Three great dividend growth stocks to consider owning right now are AbbVie (NYSE: ABBV), McDonald's (NYSE: MCD), and Comcast (NASDAQ: CMCSA).
1. AbbVie
Drugmaker AbbVie pays a relatively high dividend, which today yields around 4% annually. That's more than double the S&P 500 average of 1.6%. When including its time as a part of Abbott Laboratories (AbbVie spun off in 2013), it's technically a Dividend King, having increased its dividend payments for 50-plus years.
Currently, it pays a quarterly dividend of $1.48. That's 54% higher than the $0.96 payment the company was making five years ago.
Over the trailing 12 months, AbbVie has generated free cash flow of $24.8 billion, which is easily more than enough to cover the $10.3 billion it has paid in dividends during that time frame, suggesting that the current dividend is safe and there's room for more dividend hikes in the future.
The company behind top-selling drug Humira makes for a solid long-term buy. With a broad business that includes eye care products, neuroscience, aesthetics (it owns Botox), and some fast-growing immunology drugs in Skyrizi and Rinvoq,
AbbVie stock makes for a potential steal of a deal for income investors as it's trading at only 14 times its estimated future earnings -- the healthcare average is a multiple of over 18.
2. McDonald's
Investors can collect another above-average yield from restaurant stock McDonald's. At 2.3%, it's not as high of a payout as AbbVie, but it's also a fantastic income investment; McDonald's has increased its dividend payments for 46 straight years, and another hike could be coming this next month to push that streak even further.
Last year, it made a generous 10% increase to its dividend. Over the span of five years, the dividend has increased by just over 50%. McDonald's also has a fairly reasonable and manageable payout ratio at 55% of earnings, which makes it probable that it continues its streak.
The company has demonstrated some impressive resiliency and pricing power amid inflation. When it last reported earnings in July, it said that its comparable-store sales grew by 11.7% for the period ended June 30. The company reported double-digit growth in all of its segments.
For long-term investors, McDonald's is one of the few true buy-and-forget stocks you can hold on to and not worry about. Its strong brand, high yield, and impressive financials are plenty of reasons to hang on to this stock for years. And at 21 times estimated future profits, its valuation isn't overly expensive -- the S&P 500 averages a forward price-to-earnings multiple of 19. McDonald's is arguably worth a premium, given its strong fundamentals.
3. Comcast
Comcast is a top telecom, media, and entertainment company in the country, and it also pays a great dividend, which yields 2.6%. In January, the company reported its year-end results for 2022, and at the time it announced that it would also be increasing its dividend for a 15th consecutive year. In five years, Comcast has increased its quarterly dividend from $0.19 to $0.29, which is a jump of 53%. Its payout ratio is at 70% of earnings, which isn't terribly high and could leave room for more rate hikes in the years ahead.
This is another example of a solid, robust business for investors to consider adding to their portfolios. Over the first six months of the year, Comcast's revenue has been relatively stable at $60.2 billion, declining by just 1% from the same period last year. And its operating income of $12.4 billion is actually 4% higher than the $11.9 billion it reported a year ago.
The company's theme parks are doing well, subscriptions for its Peacock streaming services have nearly doubled to 24 million, and its Super Mario Bros. movie has been one of the highest-grossing animated movies of all time.
Trading at less than 11 times its estimated future earnings, this is another relatively cheap stock to own right now that dividend investors should consider adding to their portfolios.
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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 a broad business that includes eye care products, neuroscience, aesthetics (it owns Botox), and some fast-growing immunology drugs in Skyrizi and Rinvoq, AbbVie stock makes for a potential steal of a deal for income investors as it's trading at only 14 times its estimated future earnings -- the healthcare average is a multiple of over 18. At 2.3%, it's not as high of a payout as AbbVie, but it's also a fantastic income investment; McDonald's has increased its dividend payments for 46 straight years, and another hike could be coming this next month to push that streak even further. Three great dividend growth stocks to consider owning right now are AbbVie (NYSE: ABBV), McDonald's (NYSE: MCD), and Comcast (NASDAQ: CMCSA). | Three great dividend growth stocks to consider owning right now are AbbVie (NYSE: ABBV), McDonald's (NYSE: MCD), and Comcast (NASDAQ: CMCSA). With a broad business that includes eye care products, neuroscience, aesthetics (it owns Botox), and some fast-growing immunology drugs in Skyrizi and Rinvoq, AbbVie stock makes for a potential steal of a deal for income investors as it's trading at only 14 times its estimated future earnings -- the healthcare average is a multiple of over 18. At 2.3%, it's not as high of a payout as AbbVie, but it's also a fantastic income investment; McDonald's has increased its dividend payments for 46 straight years, and another hike could be coming this next month to push that streak even further. | When including its time as a part of Abbott Laboratories (AbbVie spun off in 2013), it's technically a Dividend King, having increased its dividend payments for 50-plus years. Over the trailing 12 months, AbbVie has generated free cash flow of $24.8 billion, which is easily more than enough to cover the $10.3 billion it has paid in dividends during that time frame, suggesting that the current dividend is safe and there's room for more dividend hikes in the future. At 2.3%, it's not as high of a payout as AbbVie, but it's also a fantastic income investment; McDonald's has increased its dividend payments for 46 straight years, and another hike could be coming this next month to push that streak even further. | At 2.3%, it's not as high of a payout as AbbVie, but it's also a fantastic income investment; McDonald's has increased its dividend payments for 46 straight years, and another hike could be coming this next month to push that streak even further. Three great dividend growth stocks to consider owning right now are AbbVie (NYSE: ABBV), McDonald's (NYSE: MCD), and Comcast (NASDAQ: CMCSA). AbbVie Drugmaker AbbVie pays a relatively high dividend, which today yields around 4% annually. |
22160.0 | 2023-10-03 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-119 | 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
Sherwin-Williams Co (Symbol: SHW) $252.65 $304.39 20.48%
RLI Corp (Symbol: RLI) $134.02 $159.50 19.01%
Dover Corp (Symbol: DOV) $137.68 $163.17 18.51%
AbbVie Inc (Symbol: ABBV) $148.25 $173.31 16.90%
Cardinal Health, Inc. (Symbol: CAH) $86.38 $95.50 10.56%
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
Sherwin-Williams Co (Symbol: SHW) 0.96% 20.48% 21.44%
RLI Corp (Symbol: RLI) 0.81% 19.01% 19.82%
Dover Corp (Symbol: DOV) 1.48% 18.51% 19.99%
AbbVie Inc (Symbol: ABBV) 3.99% 16.90% 20.89%
Cardinal Health, Inc. (Symbol: CAH) 2.32% 10.56% 12.88%
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
Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77%
RLI Corp (Symbol: RLI) $3.02 $8.06 166.89%
Dover Corp (Symbol: DOV) $2.005 $2.025 1.00%
AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79%
Cardinal Health, Inc. (Symbol: CAH) $1.974 $1.994 1.01%
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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Dividend Growth Stocks: 25 Aristocrats »
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Institutional Holders of DIM
BSCQ market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on ABBV — FREE Get the latest Zacks research report on CAH — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: Funds Holding QSG Institutional Holders of DIM BSCQ market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Sherwin-Williams Co (Symbol: SHW) $252.65 $304.39 20.48% RLI Corp (Symbol: RLI) $134.02 $159.50 19.01% Dover Corp (Symbol: DOV) $137.68 $163.17 18.51% AbbVie Inc (Symbol: ABBV) $148.25 $173.31 16.90% Cardinal Health, Inc. (Symbol: CAH) $86.38 $95.50 10.56% 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. Sherwin-Williams Co (Symbol: SHW) 0.96% 20.48% 21.44% RLI Corp (Symbol: RLI) 0.81% 19.01% 19.82% Dover Corp (Symbol: DOV) 1.48% 18.51% 19.99% AbbVie Inc (Symbol: ABBV) 3.99% 16.90% 20.89% Cardinal Health, Inc. (Symbol: CAH) 2.32% 10.56% 12.88% Another consideration with dividend growth stocks is just how much the dividend is growing. | Sherwin-Williams Co (Symbol: SHW) $252.65 $304.39 20.48% RLI Corp (Symbol: RLI) $134.02 $159.50 19.01% Dover Corp (Symbol: DOV) $137.68 $163.17 18.51% AbbVie Inc (Symbol: ABBV) $148.25 $173.31 16.90% Cardinal Health, Inc. (Symbol: CAH) $86.38 $95.50 10.56% 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. Sherwin-Williams Co (Symbol: SHW) 0.96% 20.48% 21.44% RLI Corp (Symbol: RLI) 0.81% 19.01% 19.82% Dover Corp (Symbol: DOV) 1.48% 18.51% 19.99% AbbVie Inc (Symbol: ABBV) 3.99% 16.90% 20.89% Cardinal Health, Inc. (Symbol: CAH) 2.32% 10.56% 12.88% Another consideration with dividend growth stocks is just how much the dividend is growing. Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Cardinal Health, Inc. (Symbol: CAH) $1.974 $1.994 1.01% These five stocks are part of our full Dividend Aristocrats List. | Sherwin-Williams Co (Symbol: SHW) $252.65 $304.39 20.48% RLI Corp (Symbol: RLI) $134.02 $159.50 19.01% Dover Corp (Symbol: DOV) $137.68 $163.17 18.51% AbbVie Inc (Symbol: ABBV) $148.25 $173.31 16.90% Cardinal Health, Inc. (Symbol: CAH) $86.38 $95.50 10.56% 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. Sherwin-Williams Co (Symbol: SHW) 0.96% 20.48% 21.44% RLI Corp (Symbol: RLI) 0.81% 19.01% 19.82% Dover Corp (Symbol: DOV) 1.48% 18.51% 19.99% AbbVie Inc (Symbol: ABBV) 3.99% 16.90% 20.89% Cardinal Health, Inc. (Symbol: CAH) 2.32% 10.56% 12.88% Another consideration with dividend growth stocks is just how much the dividend is growing. Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Cardinal Health, Inc. (Symbol: CAH) $1.974 $1.994 1.01% These five stocks are part of our full Dividend Aristocrats List. | Sherwin-Williams Co (Symbol: SHW) $252.65 $304.39 20.48% RLI Corp (Symbol: RLI) $134.02 $159.50 19.01% Dover Corp (Symbol: DOV) $137.68 $163.17 18.51% AbbVie Inc (Symbol: ABBV) $148.25 $173.31 16.90% Cardinal Health, Inc. (Symbol: CAH) $86.38 $95.50 10.56% 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. Sherwin-Williams Co (Symbol: SHW) 0.96% 20.48% 21.44% RLI Corp (Symbol: RLI) 0.81% 19.01% 19.82% Dover Corp (Symbol: DOV) 1.48% 18.51% 19.99% AbbVie Inc (Symbol: ABBV) 3.99% 16.90% 20.89% Cardinal Health, Inc. (Symbol: CAH) 2.32% 10.56% 12.88% Another consideration with dividend growth stocks is just how much the dividend is growing. Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% RLI Corp (Symbol: RLI) $3.02 $8.06 166.89% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Cardinal Health, Inc. (Symbol: CAH) $1.974 $1.994 1.01% These five stocks are part of our full Dividend Aristocrats List. |
22161.0 | 2023-10-02 00:00:00 UTC | SPHQ, V, ABBV, MRK: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/sphq-v-abbv-mrk%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $84.1 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 116,410,000 to 118,090,000). Among the largest underlying components of SPHQ, in trading today Visa Inc (Symbol: V) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and Merck & Co Inc (Symbol: MRK) is lower by about 0.5%. For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average:
Looking at the chart above, SPHQ's low point in its 52 week range is $39.18 per share, with $52.83 as the 52 week high point — that compares with a last trade of $49.94. 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 ».
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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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NETS shares outstanding history
Funds Holding DFUV
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 SPHQ, in trading today Visa Inc (Symbol: V) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and Merck & Co Inc (Symbol: MRK) is lower by about 0.5%. 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 SPHQ, in trading today Visa Inc (Symbol: V) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and Merck & Co Inc (Symbol: MRK) is lower by about 0.5%. For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average: Looking at the chart above, SPHQ's low point in its 52 week range is $39.18 per share, with $52.83 as the 52 week high point — that compares with a last trade of $49.94. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of SPHQ, in trading today Visa Inc (Symbol: V) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and Merck & Co Inc (Symbol: MRK) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $84.1 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 116,410,000 to 118,090,000). For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average: Looking at the chart above, SPHQ's low point in its 52 week range is $39.18 per share, with $52.83 as the 52 week high point — that compares with a last trade of $49.94. | Among the largest underlying components of SPHQ, in trading today Visa Inc (Symbol: V) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and Merck & Co Inc (Symbol: MRK) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $84.1 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 116,410,000 to 118,090,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
22162.0 | 2023-10-02 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-12 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $148.25, moving -0.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Coming into today, shares of the drugmaker had gained 0.58% in the past month. In that same time, the Medical sector lost 4.56%, while the S&P 500 lost 4.45%.
AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.66 billion, down 7.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11 per share and revenue of $53.49 billion, which would represent changes of -20.12% and -7.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. AbbVie currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 13.55 right now. Its industry sports an average Forward P/E of 14.73, so we one might conclude that AbbVie is trading at a discount comparatively.
Meanwhile, ABBV's PEG ratio is currently 2.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.96 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.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 (ABBV) closed the most recent trading day at $148.25, moving -0.54% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. | AbbVie (ABBV) closed the most recent trading day at $148.25, moving -0.54% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. | AbbVie (ABBV) closed the most recent trading day at $148.25, moving -0.54% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. | AbbVie (ABBV) closed the most recent trading day at $148.25, moving -0.54% from the previous trading session. On that day, AbbVie is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 21.58%. AbbVie will be looking to display strength as it nears its next earnings release. |
22163.0 | 2023-10-02 00:00:00 UTC | Boehringer launches unbranded Humira biosimilar at 81% discount | ABBV | https://www.nasdaq.com/articles/boehringer-launches-unbranded-humira-biosimilar-at-81-discount-0 | nan | nan | By Mariam Sunny and Patrick Wingrove
Oct 2 (Reuters) - Germany's Boehringer Ingelheim on Monday launched an unbranded version of its biosimilar of AbbVie's ABBV.N Humira with a list price 81% cheaper than the blockbuster rheumatoid arthritis drug.
The company in July launched a branded biosimilar, Cyltezo, priced at a 5% discount to Humira's current list price of $6,922 per month. Boehringer's close-copies of Humira are the only ones that can be substituted for the original without consulting the prescriber after being designated as interchangeable by the U.S. Food and Drug Administration.
Eight Humira biosimilars from companies including Novartis NOVN.S unit Sandoz and Amgen AMGN.O were launched in the U.S. last year.
Unlike easy to manufacture pills that can be copied and sold as generics at a huge discount once patents lapse, complex biologic medicines made from living cells cannot be exactly duplicated. Their close alternatives are called biosimilars.
Boehringer executive Stephen Pagnotta said the company wanted to make a lower-cost version of Cyltezo available to pharmacy benefit managers (PBMs) looking to add cheaper Humira biosimilars on their formulary, and for healthcare systems that act as both insurer and provider and typically do not seek after-market discounts.
"We felt the dual pricing approach could really help with payers and PBMs to ensure that biosimilars are available to as many patients as possible," he said.
Sandoz and Amgen also launched Humira biosimilars with two pricing tiers. Sandoz's Hyrimoz is sold at a 5% discount to Humira's price, while the unbranded version carries an 81% discount.
Experts have said the heavily discounted versions of Humira may not be made widely available because they are unlikely to appeal to PBMs like CVS Health's CVS.N Caremark, Cigna Group's CI.N Express Scripts, and UnitedHealth Group's UNH.N Optum RX, which together control 80% of the prescription drug market.
PBMs have come under increasing scrutiny for taking some of their fees as a percentage of the discounts they negotiate for drugs they cover, which some lawmakers have said can be an incentive for favoring higher-priced medicines in their negotiations.
(Reporting by Mariam Sunny in Bengaluru; Editing by Anil D'Silva and Bill Berkrot)
((Mariam.ESunny@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. | By Mariam Sunny and Patrick Wingrove Oct 2 (Reuters) - Germany's Boehringer Ingelheim on Monday launched an unbranded version of its biosimilar of AbbVie's ABBV.N Humira with a list price 81% cheaper than the blockbuster rheumatoid arthritis drug. Unlike easy to manufacture pills that can be copied and sold as generics at a huge discount once patents lapse, complex biologic medicines made from living cells cannot be exactly duplicated. Boehringer executive Stephen Pagnotta said the company wanted to make a lower-cost version of Cyltezo available to pharmacy benefit managers (PBMs) looking to add cheaper Humira biosimilars on their formulary, and for healthcare systems that act as both insurer and provider and typically do not seek after-market discounts. | By Mariam Sunny and Patrick Wingrove Oct 2 (Reuters) - Germany's Boehringer Ingelheim on Monday launched an unbranded version of its biosimilar of AbbVie's ABBV.N Humira with a list price 81% cheaper than the blockbuster rheumatoid arthritis drug. The company in July launched a branded biosimilar, Cyltezo, priced at a 5% discount to Humira's current list price of $6,922 per month. Sandoz's Hyrimoz is sold at a 5% discount to Humira's price, while the unbranded version carries an 81% discount. | By Mariam Sunny and Patrick Wingrove Oct 2 (Reuters) - Germany's Boehringer Ingelheim on Monday launched an unbranded version of its biosimilar of AbbVie's ABBV.N Humira with a list price 81% cheaper than the blockbuster rheumatoid arthritis drug. The company in July launched a branded biosimilar, Cyltezo, priced at a 5% discount to Humira's current list price of $6,922 per month. Boehringer executive Stephen Pagnotta said the company wanted to make a lower-cost version of Cyltezo available to pharmacy benefit managers (PBMs) looking to add cheaper Humira biosimilars on their formulary, and for healthcare systems that act as both insurer and provider and typically do not seek after-market discounts. | By Mariam Sunny and Patrick Wingrove Oct 2 (Reuters) - Germany's Boehringer Ingelheim on Monday launched an unbranded version of its biosimilar of AbbVie's ABBV.N Humira with a list price 81% cheaper than the blockbuster rheumatoid arthritis drug. The company in July launched a branded biosimilar, Cyltezo, priced at a 5% discount to Humira's current list price of $6,922 per month. Boehringer's close-copies of Humira are the only ones that can be substituted for the original without consulting the prescriber after being designated as interchangeable by the U.S. Food and Drug Administration. |
22164.0 | 2023-10-02 00:00:00 UTC | Analysts Anticipate NOBL Will Reach $102 | ABBV | https://www.nasdaq.com/articles/analysts-anticipate-nobl-will-reach-%24102 | 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 ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $102.12 per unit.
With NOBL trading at a recent price near $88.55 per unit, that means that analysts see 15.33% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of NOBL's underlying holdings with notable upside to their analyst target prices are Cincinnati Financial Corp. (Symbol: CINF), AbbVie Inc (Symbol: ABBV), and Procter & Gamble Company (Symbol: PG). Although CINF has traded at a recent price of $102.29/share, the average analyst target is 16.99% higher at $119.67/share. Similarly, ABBV has 16.27% upside from the recent share price of $149.06 if the average analyst target price of $173.31/share is reached, and analysts on average are expecting PG to reach a target price of $169.25/share, which is 16.04% above the recent price of $145.86. Below is a twelve month price history chart comparing the stock performance of CINF, ABBV, and PG:
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
ProShares S&P 500 Dividend Aristocrats ETF NOBL $88.55 $102.12 15.33%
Cincinnati Financial Corp. CINF $102.29 $119.67 16.99%
AbbVie Inc ABBV $149.06 $173.31 16.27%
Procter & Gamble Company PG $145.86 $169.25 16.04%
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.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Construction Dividend Stocks
PGSS Average Annual Return
VAW 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. | ProShares S&P 500 Dividend Aristocrats ETF NOBL $88.55 $102.12 15.33% Cincinnati Financial Corp. CINF $102.29 $119.67 16.99% AbbVie Inc ABBV $149.06 $173.31 16.27% Procter & Gamble Company PG $145.86 $169.25 16.04% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of NOBL's underlying holdings with notable upside to their analyst target prices are Cincinnati Financial Corp. (Symbol: CINF), AbbVie Inc (Symbol: ABBV), and Procter & Gamble Company (Symbol: PG). Similarly, ABBV has 16.27% upside from the recent share price of $149.06 if the average analyst target price of $173.31/share is reached, and analysts on average are expecting PG to reach a target price of $169.25/share, which is 16.04% above the recent price of $145.86. | Three of NOBL's underlying holdings with notable upside to their analyst target prices are Cincinnati Financial Corp. (Symbol: CINF), AbbVie Inc (Symbol: ABBV), and Procter & Gamble Company (Symbol: PG). Similarly, ABBV has 16.27% upside from the recent share price of $149.06 if the average analyst target price of $173.31/share is reached, and analysts on average are expecting PG to reach a target price of $169.25/share, which is 16.04% above the recent price of $145.86. ProShares S&P 500 Dividend Aristocrats ETF NOBL $88.55 $102.12 15.33% Cincinnati Financial Corp. CINF $102.29 $119.67 16.99% AbbVie Inc ABBV $149.06 $173.31 16.27% Procter & Gamble Company PG $145.86 $169.25 16.04% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABBV has 16.27% upside from the recent share price of $149.06 if the average analyst target price of $173.31/share is reached, and analysts on average are expecting PG to reach a target price of $169.25/share, which is 16.04% above the recent price of $145.86. Three of NOBL's underlying holdings with notable upside to their analyst target prices are Cincinnati Financial Corp. (Symbol: CINF), AbbVie Inc (Symbol: ABBV), and Procter & Gamble Company (Symbol: PG). Below is a twelve month price history chart comparing the stock performance of CINF, ABBV, and PG: Below is a summary table of the current analyst target prices discussed above: | ProShares S&P 500 Dividend Aristocrats ETF NOBL $88.55 $102.12 15.33% Cincinnati Financial Corp. CINF $102.29 $119.67 16.99% AbbVie Inc ABBV $149.06 $173.31 16.27% Procter & Gamble Company PG $145.86 $169.25 16.04% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of NOBL's underlying holdings with notable upside to their analyst target prices are Cincinnati Financial Corp. (Symbol: CINF), AbbVie Inc (Symbol: ABBV), and Procter & Gamble Company (Symbol: PG). Similarly, ABBV has 16.27% upside from the recent share price of $149.06 if the average analyst target price of $173.31/share is reached, and analysts on average are expecting PG to reach a target price of $169.25/share, which is 16.04% above the recent price of $145.86. |
22165.0 | 2023-10-02 00:00:00 UTC | Drugmakers sign on to negotiate Medicare prices under protest | ABBV | https://www.nasdaq.com/articles/drugmakers-sign-on-to-negotiate-medicare-prices-under-protest | nan | nan | By Michael Erman and Patrick Wingrove
Oct 2 (Reuters) - All the drugmakers that make the 10 prescription medicines subject to the first-ever price negotiations for the U.S. Medicare health program, including Amgen AMGN.O and Novartis NOVN.S, said they signed on to participate in the talks by the Oct. 1 deadline.
The penalties for not doing so would have been steep: drugmakers would have to pay 65% to 95% taxes on their drug's Medicare sales or withdraw all of their products from the Medicare and Medicaid programs, which together provide health benefits to 158 million Americans.
"Merck will sign the initial agreement with CMS under protest," the U.S. company said in a statement. "The choice between doing so and weathering the ... massive fines and taxes is no choice at all"
At least seven of the drugmakers have sued the U.S. Department of Health and Human Services, which oversees the Medicare agency, calling the process unconstitutional price setting.
On Friday, a federal judge rejected an attempt by the U.S. Chamber of Commerce to block the program in a lawsuit. Danish drugmaker Novo Nordisk NOVOb.CO filed its own lawsuit on Friday in the U.S. District Court in New Jersey.
The U.S. Centers for Medicare & Medicaid Services (CMS), did not immediately comment.
CMS chose the drugs based on certain criteria set out by Medicare. They must be sold in pharmacies, not have substantial generic competition, and have been on the market for at least nine years - 13 for more complex biotech drugs.
The drugs involved in the first round of price talks are: blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N; Merck & Co's MRK.N diabetes drug Januvia; Eliquis rival Xarelto as well as arthritis and Crohn's disease medicine Stelara from Johnson & Johnson JNJ.N; AbbVie's ABBV.N leukemia treatment Imbruvica; Amgen's rheumatoid arthritis treatment Enbrel; Boehringer Ingelheim and Eli Lilly's LLY.N diabetes drug Jardiance; and insulin from Novo Nordisk.
Only the nine primary manufacturers of the 10 drugs were required to sign off on the deal with CMS.
The new prices, which will be required to be at least 25% lower than their current list, would take effect in 2026. The program aims to save $25 billion per year on drug prices by 2031.
The companies will have a chance to meet with CMS later this autumn and the regulator will send them a proposal for its "maximum fair price" for the drugs by Feb. 1, 2024.
Keep up with the latest medical breakthroughs and healthcare trends with our newsletter Reuters Health Rounds. Sign up here.
The 10 drugs that will face U.S. price negotiation https://tmsnrt.rs/3qPVaMk
(Reporting by Michael Erman and Patrick Wingrove, Additional reporting by Ahmed Aboulenein in Washington; Editing by Bill Berkrot)
((michael.erman@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. | The drugs involved in the first round of price talks are: blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N; Merck & Co's MRK.N diabetes drug Januvia; Eliquis rival Xarelto as well as arthritis and Crohn's disease medicine Stelara from Johnson & Johnson JNJ.N; AbbVie's ABBV.N leukemia treatment Imbruvica; Amgen's rheumatoid arthritis treatment Enbrel; Boehringer Ingelheim and Eli Lilly's LLY.N diabetes drug Jardiance; and insulin from Novo Nordisk. By Michael Erman and Patrick Wingrove Oct 2 (Reuters) - All the drugmakers that make the 10 prescription medicines subject to the first-ever price negotiations for the U.S. Medicare health program, including Amgen AMGN.O and Novartis NOVN.S, said they signed on to participate in the talks by the Oct. 1 deadline. The companies will have a chance to meet with CMS later this autumn and the regulator will send them a proposal for its "maximum fair price" for the drugs by Feb. 1, 2024. | The drugs involved in the first round of price talks are: blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N; Merck & Co's MRK.N diabetes drug Januvia; Eliquis rival Xarelto as well as arthritis and Crohn's disease medicine Stelara from Johnson & Johnson JNJ.N; AbbVie's ABBV.N leukemia treatment Imbruvica; Amgen's rheumatoid arthritis treatment Enbrel; Boehringer Ingelheim and Eli Lilly's LLY.N diabetes drug Jardiance; and insulin from Novo Nordisk. By Michael Erman and Patrick Wingrove Oct 2 (Reuters) - All the drugmakers that make the 10 prescription medicines subject to the first-ever price negotiations for the U.S. Medicare health program, including Amgen AMGN.O and Novartis NOVN.S, said they signed on to participate in the talks by the Oct. 1 deadline. The U.S. Centers for Medicare & Medicaid Services (CMS), did not immediately comment. | The drugs involved in the first round of price talks are: blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N; Merck & Co's MRK.N diabetes drug Januvia; Eliquis rival Xarelto as well as arthritis and Crohn's disease medicine Stelara from Johnson & Johnson JNJ.N; AbbVie's ABBV.N leukemia treatment Imbruvica; Amgen's rheumatoid arthritis treatment Enbrel; Boehringer Ingelheim and Eli Lilly's LLY.N diabetes drug Jardiance; and insulin from Novo Nordisk. By Michael Erman and Patrick Wingrove Oct 2 (Reuters) - All the drugmakers that make the 10 prescription medicines subject to the first-ever price negotiations for the U.S. Medicare health program, including Amgen AMGN.O and Novartis NOVN.S, said they signed on to participate in the talks by the Oct. 1 deadline. The penalties for not doing so would have been steep: drugmakers would have to pay 65% to 95% taxes on their drug's Medicare sales or withdraw all of their products from the Medicare and Medicaid programs, which together provide health benefits to 158 million Americans. | The drugs involved in the first round of price talks are: blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N; Merck & Co's MRK.N diabetes drug Januvia; Eliquis rival Xarelto as well as arthritis and Crohn's disease medicine Stelara from Johnson & Johnson JNJ.N; AbbVie's ABBV.N leukemia treatment Imbruvica; Amgen's rheumatoid arthritis treatment Enbrel; Boehringer Ingelheim and Eli Lilly's LLY.N diabetes drug Jardiance; and insulin from Novo Nordisk. "Merck will sign the initial agreement with CMS under protest," the U.S. company said in a statement. Only the nine primary manufacturers of the 10 drugs were required to sign off on the deal with CMS. |
22166.0 | 2023-10-02 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, Lilly, Sanofi, Merck and J&J | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-lilly-sanofi-merck-and-jj | nan | nan | For Immediate Release
Chicago, IL – October 2, 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, Lilly LLY, Sanofi SNY, Merck MRK and J&J JNJ.
Here are highlights from Friday’s Analyst Blog:
Pharma Stock Roundup: Regulatory Updates for Key Drugs
This week, the European Commission granted marketing approval to AbbVie’s Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). The FDA approved Lilly’s diabetes drug, Jardiance (empagliflozin), for expanded use in chronic kidney disease (“CKD”).
The FDA also accepted Sanofi’s application seeking approval of its blockbuster medicine, Dupixent, for the use of eosinophilic esophagitis in kids and accepted and granted priority review to Merck’s application seeking approval of pulmonary arterial hypertension (PAH) candidate, sotatercept. J&J’s study, evaluating a chemotherapy-free regimen of its drug Rybrevant in first-line lung cancer, met its primary endpoint.
Recap of the Week’s Most Important Stories
European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorization to AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. The approval was based on the response rate and durability of response data from the expansion cohort of the phase I/II study, EPCORE NHL-1.Epcoritamab was approved (accelerated approval) as Epkinly for certain patients with R/R DLBCL in the United States in May.
FDA Approves Lilly’s Jardiance for CKD: Lilly and partner Boehringer Ingelheim announced that the FDA has approved its diabetes medicine, Jardiance (empagliflozin), for the CKD indication.
Jardiance 10 mg tablets are now approved to reduce the risk of kidney disease progression and cardiovascular death in adults with CKD based on data from the EMPA-KIDNEY phase III study. Data from the study showed that treatment with Jardiance, on top of the standard of care, led to a significant reduction in the risk of kidney disease progression and cardiovascular death in adults with CKD compared with placebo in addition to standard of care.
Jardiance is already approved for use in certain patients with heart failure and type II diabetes in the United States and some other countries.
FDA’s Priority Tag to Sanofi’s Dupixent sBLA for Eosinophilic Esophagitis in Kids: The FDA accepted and granted priority reviewto Sanofi’s supplemental biologics license application (sBLA) seeking approval of Dupixent for the treatment of eosinophilic esophagitis, a chronic inflammatory disease, in children (aged 1 to 11 years). The FDA is expected to give its decision on the sBLA on Jan 31, 2024.
The sBLA was supported by data from the phase III EoE KIDS study. Dupixent was approved by the FDA for eosinophilic esophagitis in patients aged 12 years and above in May 2022. Dupixent is now approved to treat five type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma, moderate-to-severe atopic dermatitis, eosinophilic esophagitis and prurigo nodularis, in both Europe and the United States.
Sanofi’s Altuviiio (efanesoctocog alfa), a once-weekly new class of factor VIII therapy for hemophilia A, was granted marketing authorization for hemophilia A in Japan. Altuviiio was approved in the United States in February 2023 and launched at the end of March.
FDA Grants Priority Review to Merck’s Sotatercept BLA: The FDA accepted and granted priority review to Merck’s BLA seeking approval of sotatercept for treating adult patients with pulmonary arterial hypertension (WHO Group 1). The FDA’s decision is expected on Mar 26, 2024. The BLA was based on data from the STELLAR study. In the study, sotatercept plus background therapy significantly improved exercise capacity, increasing the six-minute walk distance by 40.8 meters from baseline at week 24, the study’s primary endpoint. Moreover, sotatercept demonstrated statistically significant improvements in eight of nine secondary outcome measures, including a reduction in risk of clinical worsening or death.
Merck and its partner Eisai announced results from two late-stage clinical studies evaluating Merck’s Keytruda plus Eisai’s Lenvima in patients with certain types of metastatic NSCLC. Both studies, LEAP-006 and LEAP-008, failed to achieve their dual primary endpoints of overall survival (“OS”) and progression-free survival (“PFS”). The LEAP-006 and LEAP-008 studies also did not demonstrate a statistically significant improvement in objective response rate, a key secondary endpoint in both studies.
At present, the combination of Keytruda plus Lenvima is approved for the treatment of advanced renal cell carcinoma and certain types of advanced endometrial carcinoma. We remind investors that last month, Merck and Eisai, announced that they are closing a study evaluating a combination of Keytruda plus Lenvima for first-line treatment of recurrent or metastatic head and neck squamous cell carcinoma.
J&J’s Rybrevant First-Line NSCLC Study Meets Goal: J&J announced positive top-line data from the phase III MARIPOSA study evaluating Rybrevant (amivantamab) in combination with lazertinib, an oral third-generation EGFR tyrosine kinase inhibitor (TKI), versus osimertinib as a first-line treatment in EGFR-mutated NSCLC. The study met its primary endpoint by showing a statistically significant and clinically meaningful improvement in PFS in the Rybrevant plus lazertinib arm compared to osimertinib. As far as OS data is concerned, a planned interim analysis showed a trend favoring the Rybrevant and lazertinib combination compared to osimertinib.
At present, Rybrevant is approved for locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations whose disease has progressed on or after platinum-based chemotherapy.
The NYSE ARCA Pharmaceutical Index declined 1.09% in the last five trading sessions.
In the last five trading sessions, while AstraZeneca rose the most (0.6%), J&J declined the most (3%).
In the past six months, Lilly has risen the most (59.8%), while Pfizer has declined the most (20.5%).
(See the last pharma stock roundup here: EU Nod to PFE’s Litfulo, FDA Priority Tag to MRK Applications.)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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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. | Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Regulatory Updates for Key Drugs This week, the European Commission granted marketing approval to AbbVie’s Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Stocks recently featured in the blog include: AbbVie ABBV, Lilly LLY, Sanofi SNY, Merck MRK and J&J JNJ. Recap of the Week’s Most Important Stories European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorization to AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. | Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Regulatory Updates for Key Drugs This week, the European Commission granted marketing approval to AbbVie’s Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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, Lilly LLY, Sanofi SNY, Merck MRK and J&J JNJ. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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, Lilly LLY, Sanofi SNY, Merck MRK and J&J JNJ. Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Regulatory Updates for Key Drugs This week, the European Commission granted marketing approval to AbbVie’s Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). | Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Regulatory Updates for Key Drugs This week, the European Commission granted marketing approval to AbbVie’s Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Stocks recently featured in the blog include: AbbVie ABBV, Lilly LLY, Sanofi SNY, Merck MRK and J&J JNJ. Recap of the Week’s Most Important Stories European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorization to AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. |
22167.0 | 2023-10-02 00:00:00 UTC | 3 Top Stocks to Buy in October and Hold Forever | ABBV | https://www.nasdaq.com/articles/3-top-stocks-to-buy-in-october-and-hold-forever | nan | nan | Healthcare in the United States is big business: Experts believe the system could generate more than $6 trillion in annual spending by 2030. That's an opportunity for investors to find the key players that can help grow a portfolio.
But there are so many companies in the sector, including those in medical devices, pharmaceuticals, insurance, and more. How do you know where to look?
To get you started, I've done a little groundwork on this sector of the market. There are a lot of blue-chip healthcare stocks to choose from, but UnitedHealth Group (NYSE: UNH), AbbVie (NYSE: ABBV), and Pfizer (NYSE: PFE) stand out among the crowd. The strong fundamentals and attractive prices of these three top stocks make them great October stocks you can buy and hold indefinitely.
1. UnitedHealth is America's top dog in insurance
Insurance company UnitedHealth Group is arguably the biggest cog in America's healthcare machine, providing coverage to over 150 million people through commercial and welfare programs. UnitedHealth's Optum segment also offers services and analytics to patients and care providers.
Healthcare is fragmented; there are several steps in every process or treatment, and many players are involved. UnitedHealth's size gives it several advantages, including the resources to do more for customers and patients at a lower price. It has steadily expanded with the healthcare system to become a massive company doing nearly $350 billion in annual revenue. Below, you'll see years of its uninterrupted growth.
UNH revenue (TTM) data by YCharts. TTM = trailing 12 months.
The stock trades at a forward price-to-earnings (P/E) ratio of 20, and analysts estimate earnings will grow by 14% annually over the coming years. UnitedHealth looks like a solid deal for that growth, considering the stellar-quality business you'd be investing in. Investors should keep it on their watch list because it seems like the company will keep performing at a high level.
2. Pfizer's post-COVID plunge is an opportunity
Pharmaceutical company Pfizer saw people worldwide use its COVID-19 drugs, creating billions of dollars in revenue. The company's coronavirus products Paxlovid and Comirnaty combined for $56.7 billion in sales last year, 56% of 2022 revenue.
But as the pandemic passes, that revenue is drying up, and investors are seeing revenue and earnings decline, turning the market negative on the stock. Shares have declined more than 45% from their former highs. It seems fair that shares would fall as Pfizer's business shrinks. It's also reasonable that it could take some time to regain growth as COVID-19-driven sales are replaced.
PFE revenue (TTM) data by YCharts.
But the market might be overdoing its selling. Analysts believe Pfizer's earnings per share (EPS) will come in at $3.33 this year, a 50% decline from the company's 2022 earnings. Still, the stock trades at just 10 times those profits. Factor in a pending $43 billion acquisition of Seagen (Pfizer is acquiring growth assets with all that vaccine money), and growth could get back on track. This short-term uncertainty could be a great long-term buying opportunity.
3. AbbVie won't miss Humira forever
AbbVie is another pharmaceutical leader that recently lost its golden goose. The company has enjoyed years of patent exclusivity with Humira, an anti-inflammatory product, among the world's top sellers. It helped the company roughly triple in size over the past decade.
But the U.S. patent expired earlier this year, and cheaper generics have already hurt Humira's sales, which are down 6.9% year over year in the U.S. through six months.
However, the company has emerging products waiting in the wings to offset that decline. Sales of its other anti-inflammatory drugs Skyrizi and Rinvoq are up 49% and 51%, respectively, year over year. Combined, these two drugs are still smaller than Humira, but that could change as they grow and Humira declines.
AbbVie is also seeing double-digit growth in smaller product segments like neuroscience (up 14% year over year) and eye care (up 15% year over year).
ABBV revenue (TTM) data by YCharts.
Humira's decline could slow AbbVie's overall growth for a time, but analysts believe the company can still average 5% annual earnings growth, which could accelerate as Humira's decline drops out of the equation.
Today shares trade at a forward P/E of 13. That might not look like a bargain considering its expected mid-single-digit growth, but it could prove cheaper in hindsight if growth accelerates again.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer and Seagen. The Motley Fool recommends UnitedHealth Group. 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. | There are a lot of blue-chip healthcare stocks to choose from, but UnitedHealth Group (NYSE: UNH), AbbVie (NYSE: ABBV), and Pfizer (NYSE: PFE) stand out among the crowd. AbbVie won't miss Humira forever AbbVie is another pharmaceutical leader that recently lost its golden goose. AbbVie is also seeing double-digit growth in smaller product segments like neuroscience (up 14% year over year) and eye care (up 15% year over year). | There are a lot of blue-chip healthcare stocks to choose from, but UnitedHealth Group (NYSE: UNH), AbbVie (NYSE: ABBV), and Pfizer (NYSE: PFE) stand out among the crowd. Humira's decline could slow AbbVie's overall growth for a time, but analysts believe the company can still average 5% annual earnings growth, which could accelerate as Humira's decline drops out of the equation. AbbVie won't miss Humira forever AbbVie is another pharmaceutical leader that recently lost its golden goose. | AbbVie is also seeing double-digit growth in smaller product segments like neuroscience (up 14% year over year) and eye care (up 15% year over year). Humira's decline could slow AbbVie's overall growth for a time, but analysts believe the company can still average 5% annual earnings growth, which could accelerate as Humira's decline drops out of the equation. There are a lot of blue-chip healthcare stocks to choose from, but UnitedHealth Group (NYSE: UNH), AbbVie (NYSE: ABBV), and Pfizer (NYSE: PFE) stand out among the crowd. | Humira's decline could slow AbbVie's overall growth for a time, but analysts believe the company can still average 5% annual earnings growth, which could accelerate as Humira's decline drops out of the equation. There are a lot of blue-chip healthcare stocks to choose from, but UnitedHealth Group (NYSE: UNH), AbbVie (NYSE: ABBV), and Pfizer (NYSE: PFE) stand out among the crowd. AbbVie won't miss Humira forever AbbVie is another pharmaceutical leader that recently lost its golden goose. |
22168.0 | 2023-10-01 00:00:00 UTC | These Market Experts See a Downturn Coming: 2 Defensive Index Funds That Are Proven Moneymakers to Buy Now | ABBV | https://www.nasdaq.com/articles/these-market-experts-see-a-downturn-coming%3A-2-defensive-index-funds-that-are-proven | nan | nan | Inflation reached a four-decade high in 2022 and the Federal Reserve responded by raising its benchmark interest rate at its fastest pace since the 1980s. Initially, many experts cried recession as prices soared and credit conditions tightened across the economy. Some have since recanted their forecasts, but others remain convinced of a coming downturn.
Here are the details, along with two index funds that could help investors hedge against a possible recession.
Image source: Getty Images.
Some experts still see a recession coming
Steve Hanke, professor of applied economics at Johns Hopkins University, has been ringing the recession bell for over a year. The foundation of his argument is the ongoing contraction in U.S. money supply. He recently said, "We believe that a recession is baked in the cake and will commence during the first half of 2024."
David Rosenberg, president of Rosenberg Research & Associates, also sees a recession on the horizon. His argument centers on the abrupt shift in monetary policy. Rosenberg drew a parallel between the current situation and the recession that ran from July 1981 to November 1982, calling this "the biggest interest rate shock since 1981.".
Hanke and Rosenberg are not alone. Analysts at Deutsche Bank believe a "U.S. recession remains more likely than not" because the Fed has reason to overtighten credit conditions, given the trajectory inflation has followed in the wake of the pandemic.
Defensive stock market sectors outperform during recessions
The National Bureau of Economic Research (NBER) is a non-profit group widely recognized as the authority on business cycles and recessions. When economists talk about business cycles, they're referring to alternating periods of economic expansion and contraction as measured by changes in income, spending, employment, and industrial production.
The NBER defines a recession as a period of economic contraction that begins when the business cycle peaks and ends when the business cycle troughs. But economists generally break the expansionary period into three phases: the early cycle recovery, the mid-cycle expansion, and the late-cycle slowdown.
Certain stock market sectors tend to perform better in different phases of the business cycle. Detailed below are the three sectors that have historically performed best during each phase, according to State Street Global Advisors:
Early-cycle recovery: consumer discretionary, real estate, materials
Mid-cycle expansion: financials, technology, communications services
Late-cycle slowdown: consumer staples, healthcare, industrials
Recession: consumer staples, utilities, healthcare
Consumer staples and healthcare are generally viewed as defensive sectors. Stocks in those sectors tend to perform well during late-cycle slowdowns and recessions, and that makes sense on an intuitive level. Products in the consumer staples and healthcare categories are some of the very last things consumers would forgo in a difficult economic environment.
For that reason, investors worried about a possible recession should consider buying two index funds: the Vanguard Health Care ETF (NYSEMKT: VHT) and the Vanguard Consumer Staples ETF (NYSEMKT: VDC).
1. The Vanguard Health Care ETF
The Vanguard Health Care ETF tracks 415 U.S. stocks that generally fall into two categories: (1) companies that manufacture healthcare equipment or provide healthcare services, and (2) companies involved in pharmaceutical and biotechnology research.
The top five holdings in the index fund are detailed below:
Eli Lilly: 7.8%
UnitedHealth Group: 6.8%
Merck: 4.8%
AbbVie: 4.5%
Thermo Fisher Scientific: 3.8%
The Vanguard Health Care ETF returned 197% over the last decade, or 11.5% annually. That falls just short of the 210% return in the broader S&P 500, but the index fund was also less volatile than the S&P 500 during that time period, as evidenced by its 10-year beta of 0.77.
The Vanguard Health Care ETF bears a below-average expense ratio of 0.1%, meaning the annual fee on a $10,000 portfolio would be just $10. For context, the average index fund expense ratio was 0.37% in 2022, according to Morningstar.
2. The Vanguard Consumer Staples ETF
The Vanguard Consumer Staples ETF tracks 105 U.S. stocks in the consumer staples sector, including manufacturers, distributors, and retailers of various food, beverage, and tobacco products.
The top five holdings in the index fund are detailed below:
Procter & Gamble: 12.6%
Coca-Cola: 8.2%
PepsiCo: 8.2%
Costco Wholesale: 8.2%
Walmart: 8%
The Vanguard Consumer Staples ETF returned 130% over the last decade, or 8.7% annually. That represents significant underperformance, compared to the 210% return in the broader S&P 500. However, the index fund was also far less volatile during that time period, as evidenced by its 10-year beta of 0.62.
The Vanguard Consumer Staples ETF bears a below-average expense ratio of 0.1%, so investors would pay just $10 per year on a $10,000 portfolio.
Investors should keep recession fears in context
The Vanguard Health Care ETF and the Vanguard Consumer Staples ETF are good options for risk-averse investors who want to hedge against a possible recession. But investors need to keep their fears in perspective. The S&P 500 has weathered dozens of recessions over the decades and has always recovered.
The Vanguard Health Care ETF and the Vanguard Consumer Staples ETF are proven moneymakers, but the S&P 500 has outperformed both index funds over the last decade. For that reason, investors who can tolerate some volatility should keep most of their money in an S&P 500 index fund and/or individual stocks.
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool recommends Costco Wholesale, Merck, Thermo Fisher Scientific, UnitedHealth Group, and Walmart. 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 top five holdings in the index fund are detailed below: Eli Lilly: 7.8% UnitedHealth Group: 6.8% Merck: 4.8% AbbVie: 4.5% Thermo Fisher Scientific: 3.8% The Vanguard Health Care ETF returned 197% over the last decade, or 11.5% annually. When economists talk about business cycles, they're referring to alternating periods of economic expansion and contraction as measured by changes in income, spending, employment, and industrial production. The top five holdings in the index fund are detailed below: Procter & Gamble: 12.6% Coca-Cola: 8.2% PepsiCo: 8.2% Costco Wholesale: 8.2% Walmart: 8% The Vanguard Consumer Staples ETF returned 130% over the last decade, or 8.7% annually. | The top five holdings in the index fund are detailed below: Eli Lilly: 7.8% UnitedHealth Group: 6.8% Merck: 4.8% AbbVie: 4.5% Thermo Fisher Scientific: 3.8% The Vanguard Health Care ETF returned 197% over the last decade, or 11.5% annually. Detailed below are the three sectors that have historically performed best during each phase, according to State Street Global Advisors: Early-cycle recovery: consumer discretionary, real estate, materials Mid-cycle expansion: financials, technology, communications services Late-cycle slowdown: consumer staples, healthcare, industrials Recession: consumer staples, utilities, healthcare Consumer staples and healthcare are generally viewed as defensive sectors. The Vanguard Health Care ETF The Vanguard Health Care ETF tracks 415 U.S. stocks that generally fall into two categories: (1) companies that manufacture healthcare equipment or provide healthcare services, and (2) companies involved in pharmaceutical and biotechnology research. | The top five holdings in the index fund are detailed below: Eli Lilly: 7.8% UnitedHealth Group: 6.8% Merck: 4.8% AbbVie: 4.5% Thermo Fisher Scientific: 3.8% The Vanguard Health Care ETF returned 197% over the last decade, or 11.5% annually. Detailed below are the three sectors that have historically performed best during each phase, according to State Street Global Advisors: Early-cycle recovery: consumer discretionary, real estate, materials Mid-cycle expansion: financials, technology, communications services Late-cycle slowdown: consumer staples, healthcare, industrials Recession: consumer staples, utilities, healthcare Consumer staples and healthcare are generally viewed as defensive sectors. For that reason, investors worried about a possible recession should consider buying two index funds: the Vanguard Health Care ETF (NYSEMKT: VHT) and the Vanguard Consumer Staples ETF (NYSEMKT: VDC). | The top five holdings in the index fund are detailed below: Eli Lilly: 7.8% UnitedHealth Group: 6.8% Merck: 4.8% AbbVie: 4.5% Thermo Fisher Scientific: 3.8% The Vanguard Health Care ETF returned 197% over the last decade, or 11.5% annually. Here are the details, along with two index funds that could help investors hedge against a possible recession. Certain stock market sectors tend to perform better in different phases of the business cycle. |
22169.0 | 2023-09-30 00:00:00 UTC | Moonshot Medicine: 3 Stocks to Buy to Bet on Long-Shot Drugs | ABBV | https://www.nasdaq.com/articles/moonshot-medicine%3A-3-stocks-to-buy-to-bet-on-long-shot-drugs | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Clinical trials are a difficult and grueling process for companies. The FDA and other regulatory agencies require the highest possible standards in order to approve new drugs. To meet those standards, companies must spend exorbitant sums recruiting patients, testing drugs and cataloging the data. And with most clinical trials ending in failure, all that money may be wasted without generating revenue.
Because of this, it’s no wonder that most drug stocks will seek to use proven methods to treat common diseases. Many of the new drugs coming on the market are small modifications to older drugs. These modifications are useful, often improving treatment or reducing side effects, but they do not radically alter treatment outcomes. But with clinical trials being so expensive, it’s hard to fault drug stocks for being so conservative.
But not every drug stock is content to make minor changes. Many of the best drug stocks to buy are entering bold new territory to create radical new treatments. These treatments are going through clinical trials and could offer a change in patient outcomes. If FDA approval is forthcoming, these new drugs have the potential to upend their market and bring big gains for their investors. The largest gains will come from getting in early before the clinical trials have ended and data is announced.
So, for an investor looking for drug stocks to buy, it’s important to look for both the safe, conservative ones and the big, game-changing ones. Higher rewards often coincide with higher risk, of course. However, the possibility of completely dominating a market with a new treatment should not be overlooked. So here are three of the best long-shot drug stocks to buy.
Acelyrin (SLRN)
Source: shutterstock.com/Champhei
Recently, Acelyrin (NASDAQ:SLRN) presented the promising drug, izokibep, that could be a breakthrough in the treatment of psoriatic arthritis. Psoriasis is one of the most common autoimmune disorders. And psoriatic arthritis affects around one-third of psoriasis sufferers. With such a high prevalence, the need for new treatments is acute.
There is currently no cure for psoriatic arthritis, and current treatments are of limited effectiveness in halting or reversing the disease. However, izokibep’s has promise, showing statistically significant efficacy in phase 2 clinical trials. Acelyrin is now continuing with a Phase 2/Phase 3 trial to further prove the drug’s effectiveness. The primary completion date for the trial is January 2024, so news could come out very soon. And if the news is positive, FDA approval may not be far behind.
It should be noted that izokibep has previously failed to prove efficacy in treating a different disease, and the stock fell hard on that news. But that result will have no bearing on the outcome of this clinical trial. And with the stock already depressed by negative sentiment, a positive outcome in the psoriatic arthritis trial could send its price up significantly.
Acelyrin’s most recent earnings report shows them with $556 million in cash and cash equivalents with a net loss of $26 million. The company has more than enough runway to finish its clinical trials and seek FDA approval. While nothing is guaranteed in medicine, if the drug is effective in its current trials, Acelyrin will prove itself one of the best drug stocks to buy today.
Vertex Pharmaceuticals (VRTX)
Source: Pavel Kapysh / Shutterstock.com
Acute pain is very difficult to treat. Many current treatments involve habit-forming drugs such as opioids. That has not only contributed to an addiction crisis, but opioids also have harmful side effects even beyond addiction. With so much difficulty in treating acute pain, there is a huge need for new drugs.
Vertex Pharmaceuticals (NASDAQ:VRTX) is poised to bring just that with its groundbreaking non-opioid pain medication, VX-548. VX-548 already showed promise in Phase 2 clinical trials and received Breakthrough Therapy and Fast Track designations as well. By targeting voltage-gated sodium channels that facilitate the sensation of pain in nerve cells, VX-548 can manage pain without the risk of addiction or harmful side effects like respiratory depression and sedation.
Vertex is now running a Phase 3 trial investigating VX-548 for acute pain. And the company is also running multiple trials for its efficacy in specific pain scenarios, such as after surgery or in treating diabetes pain. These trials are all ending in the first half of 2024, and VX-548’s wide-ranging utility could give it a very big market to sell to if it gets approved.
Financially, Vertex has been mostly stable. Its Q2 2023 earnings report showed revenue and earnings at $2.5 billion and $916 million, respectively. That’s up slightly from Q2 2022’s revenue and earnings of $2.2 billion and $811 million, respectively. But to truly go to the next level, Vertex will need a new breakout star. And VX-548 could be it. A powerful, non-addictive pain medication would make Vertex a great drug stock to buy.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Alzheimer’s disease remains a devastating condition with no known cure. Currently, available treatments can only slow the disease’s progression, not reverse or stop it. But AbbVie (NYSE:ABBV) is trialing a new drug which could be a game-changer.
ABBV-552 is a unique anti-Alzheimer drug different from most currently on the market. Many current therapies focus on anti-amyloid beta antibodies, which bind to amyloid beta to help the immune system destroy it. As amyloid beta is believed to play a key role in Alzheimer’s, its destruction should slow the disease. However, these therapies have had limited effectiveness. And because they increase the activity of the immune system, they have shown harmful side effects such as inflammation or bleeding in the brain.
What sets ABBV-552 apart is its mostly unique mechanism of action. This drug aims to enhance the release of neurotransmitters in nerve cells. And since neurotransmitters are how nerves communicate with each other, this enhanced release should facilitate improved nerve cell and brain activity. Unlike antibody-based treatments with their side effects, ABBV-552 appears to have a favorable safety profile. That would be a big relief for patients and doctors who have shied away from antibody-based therapies due to their safety.
ABBV-552 is still undergoing Phase 2 clinical trials, which should finish by June 2024. With a good result, Phase 3 trials could begin not long after. And with still no cure in sight for Alzheimer’s disease, the door is still wide open for the AbbVie treatment to demonstrate success and corner the market. As our population continues to age, diseases like Alzheimer’s will only become more prevalent. The company that can cure such diseases will have the best drug stock you can buy.
On the date of publication, John Blankenhorn 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.
John Blankenhorn is a neuroscientist at Emory University. He has significant experience in biochemistry, biotechnology and pharmaceutical 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. | And with still no cure in sight for Alzheimer’s disease, the door is still wide open for the AbbVie treatment to demonstrate success and corner the market. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Alzheimer’s disease remains a devastating condition with no known cure. But AbbVie (NYSE:ABBV) is trialing a new drug which could be a game-changer. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Alzheimer’s disease remains a devastating condition with no known cure. But AbbVie (NYSE:ABBV) is trialing a new drug which could be a game-changer. ABBV-552 is a unique anti-Alzheimer drug different from most currently on the market. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Alzheimer’s disease remains a devastating condition with no known cure. But AbbVie (NYSE:ABBV) is trialing a new drug which could be a game-changer. ABBV-552 is a unique anti-Alzheimer drug different from most currently on the market. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Alzheimer’s disease remains a devastating condition with no known cure. But AbbVie (NYSE:ABBV) is trialing a new drug which could be a game-changer. ABBV-552 is a unique anti-Alzheimer drug different from most currently on the market. |
22170.0 | 2023-09-30 00:00:00 UTC | 3 Magnificent Dividend Stocks to Buy in October | ABBV | https://www.nasdaq.com/articles/3-magnificent-dividend-stocks-to-buy-in-october | nan | nan | There's no better time than October to invest in high-quality dividend stocks. That's because the new month offers a chance to get those dividend payments flowing sooner rather than later.
Three Motley Fool contributors believe they've identified magnificent dividend stocks to buy in October. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ).
Attractive in multiple ways
Keith Speights (AbbVie): Only 50 or so stocks can lay claim to increasing their dividend annually for 50 consecutive years or longer. AbbVie is one of them thanks to its impressive 51 straight years of dividend raises.
But that's not the only reason I think this is a magnificent dividend stock to buy in October. There's also AbbVie's dividend yield of 3.9%. Many of its fellow members of the 50-year club offer much lower yields.
AbbVie is a bargain as well. Shares of the big biopharma currently trade at less than 14 times expected earnings. That's a lot lower than the S&P 500's forward earnings multiple of 18.5. It's also well below the pharmaceutical industry average of 16.1.
We do have to address the dark cloud hovering over AbbVie, though. The company's revenue and profits are sinking because of Humira. Sales for its top-selling drug have plunged as a result of new biosimilar competition on the market in the U.S., and this situation isn't going to improve.
However, AbbVie's financial results will improve, and relatively soon. The drugmaker expects to return to growth in 2025. It's been preparing for Humira's eventual loss of exclusivity for a long time. AbbVie already has two worthy successors to Humira on the market -- Rinvoq and Skyrizi -- that are generating tremendous sales growth.
The company's lineup also features other growth drivers including migraine drugs Ubrelvy and Qulipta.
AbbVie should continue to increase its total revenue by a high single-digit percentage through the rest of the decade. I fully expect its great dividend to increase as well.
Stability and a great 4% yield
David Jagielski (Gilead Sciences): One dividend stock that all healthcare investors should consider adding to their portfolios right now is Gilead Sciences. The stock ticks off all the big boxes dividend investors will likely want in an investment.
It offers a high yield of 4% per year. That means if you invest $25,000, you can expect to collect $1,000 in annual dividends. Plus, there's the incentive to not just buy for today's dividend but also hold on for potential long-term dividend growth.
Earlier this year, the company raised its dividend by 2.7%. And over the past five years, the payout has grown by 32%. While the latest increase isn't keeping up with today's inflation rate, it does help to offset it. Gilead also has a sustainable payout ratio of less than 70%, which suggests there's room for more dividend growth in the future.
Another reason dividend investors should consider the stock is its long-term stability. Gilead makes HIV treatments that are essential to patients. That means continuous, recurring revenue.
The company has also been expanding its oncology operations, which can help add even more stability in the long run. For the period ending June 30, Gilead's product sales of $6.3 billion were up 11% year over year when excluding Veklury, its COVID treatment. Revenue from its oncology business grew at a rate of 38% to $728 million, accounting for 11% of the company's top line of $6.6 billion.
Lastly, there's the stock's overall valuation. At 10 times its estimated future earnings, Gilead is a cheap stock to own. By comparison, the average healthcare stock trades at a forward earnings multiple of 18. Overall, Gilead is a magnificent high-yielding dividend stock to hang on to for the long haul.
This dividend is as safe as they come
Prosper Junior Bakiny (Johnson & Johnson): There are plenty of dividend stocks on the market, but few look more solid than Johnson & Johnson. The company's history speaks for itself: It has increased its payouts for 61 consecutive years.
This period includes several administrations, many recessions, a once-in-a-hundred-year global pandemic, and an ever-evolving healthcare sector in which J&J has remained an undisputed leader.
That speaks volumes about the strength of its underlying business. And while its history doesn't guarantee anything, it hasn't lost those attributes that have made it so successful until now. The company's ability to develop newer and better medicines and medical devices is one of the most important. It has a vast portfolio of drugs across many areas, including oncology, immunology, and infectious diseases, among others.
The drugmaker won't stop growing anytime soon because the healthcare industry will never peak. There will always be a need for the kinds of products Johnson & Johnson regularly produces, and the demand is likely to increase over the long run. With improved medicines, people live longer, and the world's population is aging.
Here's the trade-off: They also need more medical care in their golden years. So, companies like J&J have a bright future. And while it has encountered legal troubles of late, they are unlikely to derail its long-term growth. That's why Johnson & Johnson is an excellent stock for investors seeking income and stability in this otherwise volatile market.
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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 positions in Johnson & Johnson. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool recommends Johnson & Johnson. 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. | Attractive in multiple ways Keith Speights (AbbVie): Only 50 or so stocks can lay claim to increasing their dividend annually for 50 consecutive years or longer. AbbVie already has two worthy successors to Humira on the market -- Rinvoq and Skyrizi -- that are generating tremendous sales growth. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). | Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). Attractive in multiple ways Keith Speights (AbbVie): Only 50 or so stocks can lay claim to increasing their dividend annually for 50 consecutive years or longer. AbbVie is one of them thanks to its impressive 51 straight years of dividend raises. | Attractive in multiple ways Keith Speights (AbbVie): Only 50 or so stocks can lay claim to increasing their dividend annually for 50 consecutive years or longer. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). AbbVie is one of them thanks to its impressive 51 straight years of dividend raises. | There's also AbbVie's dividend yield of 3.9%. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). Attractive in multiple ways Keith Speights (AbbVie): Only 50 or so stocks can lay claim to increasing their dividend annually for 50 consecutive years or longer. |
22171.0 | 2023-09-29 00:00:00 UTC | Pharma Stock Roundup: FDA and EMA Regulatory Updates for ABBV, LLY, SNY & MRK's Drugs | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-fda-and-ema-regulatory-updates-for-abbv-lly-sny-mrks-drugs | nan | nan | This week, the European Commission granted marketing approval to AbbVie’s ABBV Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). The FDA approved Lilly’s LLY diabetes drug, Jardiance (empagliflozin), for expanded use in chronic kidney disease (“CKD”).
The FDA also accepted Sanofi’s SNY application seeking approval of its blockbuster medicine, Dupixent, for the use of eosinophilic esophagitis in kids and accepted and granted priority review to Merck’s MRK application seeking approval of pulmonary arterial hypertension (PAH) candidate, sotatercept. J&J’s JNJ study, evaluating a chemotherapy-free regimen of its drug Rybrevant in first-line lung cancer, met its primary endpoint.
Recap of the Week’s Most Important Stories
European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorizationto AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. The approval was based on the response rate and durability of response data from the expansion cohort of the phase I/II study, EPCORE NHL-1.Epcoritamab was approved (accelerated approval) as Epkinly for certain patients with R/R DLBCL in the United States in May.
FDA Approves Lilly’s Jardiance for CKD: Lilly and partner Boehringer Ingelheim announced that the FDA has approved its diabetes medicine, Jardiance (empagliflozin), for the CKD indication.
Jardiance 10 mg tablets are now approved to reduce the risk of kidney disease progression and cardiovascular death in adults with CKD based on data from the EMPA-KIDNEY phase III study. Data from the study showed that treatment with Jardiance, on top of the standard of care, led to a significant reduction in the risk of kidney disease progression and cardiovascular death in adults with CKD compared with placebo in addition to standard of care.
Jardiance is already approved for use in certain patients with heart failure and type II diabetes in the United States and some other countries.
FDA’s Priority Tag to Sanofi’s Dupixent sBLA for Eosinophilic Esophagitis in Kids: The FDA accepted and granted priority reviewto Sanofi’s supplemental biologics license application (sBLA) seeking approval of Dupixent for the treatment of eosinophilic esophagitis, a chronic inflammatory disease, in children (aged 1 to 11 years). The FDA is expected to give its decision on the sBLA on Jan 31, 2024.
The sBLA was supported by data from the phase III EoE KIDS study. Dupixent was approved by the FDA for eosinophilic esophagitis in patients aged 12 years and above in May 2022. Dupixent is now approved to treat five type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma, moderate-to-severe atopic dermatitis, eosinophilic esophagitis and prurigo nodularis, in both Europe and the United States.
Sanofi’s Altuviiio (efanesoctocog alfa), a once-weekly new class of factor VIII therapy for hemophilia A, was granted marketing authorization for hemophilia A in Japan. Altuviiio was approved in the United States in February 2023 and launched at the end of March.
FDA Grants Priority Review to Merck’s Sotatercept BLA: The FDA accepted and granted priority review to Merck’s BLA seeking approval of sotatercept for treating adult patients with pulmonary arterial hypertension (WHO Group 1). The FDA’s decision is expected on Mar 26, 2024. The BLA was based on data from the STELLAR study. In the study, sotatercept plus background therapy significantly improved exercise capacity, increasing the six-minute walk distance by 40.8 meters from baseline at week 24, the study’s primary endpoint. Moreover, sotatercept demonstrated statistically significant improvements in eight of nine secondary outcome measures, including a reduction in risk of clinical worsening or death.
Merck and its partner Eisai announced results from two late-stage clinical studies evaluating Merck’s Keytruda plus Eisai’s Lenvima in patients with certain types of metastatic NSCLC. Both studies, LEAP-006 and LEAP-008, failed to achieve their dual primary endpoints of overall survival (“OS”) and progression-free survival (“PFS”). The LEAP-006 and LEAP-008 studies also did not demonstrate a statistically significant improvement in objective response rate, a key secondary endpoint in both studies.
At present, the combination of Keytruda plus Lenvima is approved for the treatment of advanced renal cell carcinoma and certain types of advanced endometrial carcinoma. We remind investors that last month, Merck and Eisai, announced that they are closing a study evaluating a combination of Keytruda plus Lenvima for first-line treatment of recurrent or metastatic head and neck squamous cell carcinoma.
J&J’s Rybrevant First-Line NSCLC Study Meets Goal: J&J announced positive top-line data from the phase III MARIPOSA study evaluating Rybrevant (amivantamab) in combination with lazertinib, an oral third-generation EGFR tyrosine kinase inhibitor (TKI), versus osimertinib as a first-line treatment in EGFR-mutated NSCLC. The study met its primary endpoint by showing a statistically significant and clinically meaningful improvement in PFS in the Rybrevant plus lazertinib arm compared to osimertinib. As far as OS data is concerned, a planned interim analysis showed a trend favouring the Rybrevant and lazertinib combination compared to osimertinib.
At present, Rybrevant is approved for locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations whose disease has progressed on or after platinum-based chemotherapy.
The NYSE ARCA Pharmaceutical Index declined 1.09% in the last five trading sessions.
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, while AstraZeneca rose the most (0.6%), J&J declined the most (3%).
In the past six months, Lilly has risen the most (59.8%), while Pfizer has declined the most (20.5%).
(See the last pharma stock roundup here: EU Nod to PFE’s Litfulo, FDA Priority Tag to MRK Applications.)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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 >>
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Merck & Co., Inc. (MRK) : 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.
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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 week, the European Commission granted marketing approval to AbbVie’s ABBV Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Recap of the Week’s Most Important Stories European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorizationto AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. This week, the European Commission granted marketing approval to AbbVie’s ABBV Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Recap of the Week’s Most Important Stories European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorizationto AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. This week, the European Commission granted marketing approval to AbbVie’s ABBV Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Recap of the Week’s Most Important Stories European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorizationto AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. | This week, the European Commission granted marketing approval to AbbVie’s ABBV Tepkinly (epcoritamab) to treat relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Recap of the Week’s Most Important Stories European Commission Approves AbbVie’s Epcoritamab: The European Commission granted conditional marketing authorizationto AbbVie’s epcoritamab, to be marketed as Tepkinly, for treating R/R DLBCL. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. |
22172.0 | 2023-09-29 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-9 | 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 +3.6% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AbbVie is expected to post earnings of $2.87 per share for the current quarter, representing a year-over-year change of -21.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $11 for the current fiscal year indicates a year-over-year change of -20.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.05 indicates a change of +0.4% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
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
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $13.66 billion for the current quarter points to a year-over-year change of -7.8%. The $53.5 billion and $53.5 billion estimates for the current and next fiscal years indicate changes of -7.9% and 0%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.87 billion in the last reported quarter, representing a year-over-year change of -4.9%. EPS of $2.91 for the same period compares with $3.37 a year ago.
Compared to the Zacks Consensus Estimate of $13.52 billion, the reported revenues represent a surprise of +2.54%. The EPS surprise was +4.3%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty 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.
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
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. | 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 lost 2.6% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $13.87 billion in the last reported quarter, representing a year-over-year change of -4.9%. 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 lost 2.6% 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 lost 2.6% over this period. AbbVie is expected to post earnings of $2.87 per share for the current quarter, representing a year-over-year change of -21.6%. | 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. 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 lost 2.6% over this period. |
22173.0 | 2023-09-29 00:00:00 UTC | US judge refuses to block Medicare from negotiating drug prices | ABBV | https://www.nasdaq.com/articles/us-judge-refuses-to-block-medicare-from-negotiating-drug-prices | nan | nan | (Adds detail from the ruling in paragraphs 3-6)
By Brendan Pierson
Sept 29 (Reuters) - The U.S. government's Medicare health insurance program can begin negotiating prices for some prescription drugs this fall under a new program, a federal judge ruled on Friday, vindicating one of President Joe Biden's signature initiatives.
The order by U.S. District Judge Michael Newman in Dayton, Ohio, comes in a lawsuit brought against the Biden administration by the U.S. Chamber of Commerce. The nation's largest business lobbying group has argued the program violates the U.S. Constitution by allowing the government to force drugmakers to accept unfairly low prices, and would stifle innovation.
Newman in a preliminary order rejected that argument, finding the drugmakers were unlikely to prevail in the case. He said they were not being forced to give anything up because participating in Medicare is "completely voluntary."
"As there is no constitutional right (or requirement) to engage in business with the government, the consequences of that participation cannot be considered a constitutional violation," he wrote.
The Chamber of Commerce and the U.S. Justice Department did not immediately respond to requests for comment.
Although Newman's ruling allows the price negotiation program to begin as scheduled on Oct. 1, the judge allowed the lawsuit to continue, denying a motion by the government to dismiss it altogether.
The ruling is the first to come from multiple lawsuits by drug companies and industry groups challenging the program. Newman was appointed to the bench by Republican former President Donald Trump.
The drug price negotiation program is part of the Inflation Reduction Act (IRA), which Biden, a Democrat, signed last year.
Americans pay more for prescription medicines than people in any other country. The program aims to save $25 billion annually by 2031 by requiring drugmakers to negotiate the prices of selected expensive drugs with the U.S. Centers for Medicare and Medicaid Service (CMS), which oversees Medicare.
Medicare mostly serves the millions of Americans aged 65 and older.
Drugmakers whose medicines were selected for the first round of pricing negotiations must agree to begin talks on Oct. 1. Those who do not negotiate either would have to pay steep penalties, up to 19 times the drug's sales, or stop participating in the government healthcare programs, which account for a significant portion of their U.S. sales.
CMS announced the first 10 drugs to be negotiated on Aug. 29. They include the blood thinners Eliquis from Bristol Myers Squibb and Pfizer , Xarelto from Johnson & Johnson , Merck & Co's diabetes drug Januvia, and AbbVie's leukemia treatment Imbruvica.
The negotiated prices would take effect in 2026 with a minimum discount from the list price at 25%.
The Chamber of Commerce's lawsuit is one of several similar cases challenging the program. The others were filed by individual drugmakers and by Pharmaceutical Research and Manufacturers of America (PhRMA), the leading drug industry lobbying group.
Companies that have sued over the program include J&J, Merck, Bristol Myers and Boehringer Ingelheim, which make drugs on CMS's negotiation list.
The Chamber of Commerce was the only plaintiff to ask for a preliminary injunction halting the negotiations while its lawsuit proceeds. The other lawsuits are moving at a slower pace, and judges may not rule on them until next year.
The Biden administration has repeatedly said there is nothing in the Constitution that prohibits drug price negotiations. Many other countries already negotiate drug prices. (Reporting By Brendan Pierson in New York and Nate Raymond in Boston; additional reporting by Costas Pitas; Editing by Alexia Garamfalvi, Bill Berkrot and Chris Reese) ((Costas.Pitas@thomsonreuters.com; Reuters Messaging: @Cpitas on X)) Keywords: HEALTH USA/DRUGPRICING (UPDATE 2)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They include the blood thinners Eliquis from Bristol Myers Squibb and Pfizer , Xarelto from Johnson & Johnson , Merck & Co's diabetes drug Januvia, and AbbVie's leukemia treatment Imbruvica. The nation's largest business lobbying group has argued the program violates the U.S. Constitution by allowing the government to force drugmakers to accept unfairly low prices, and would stifle innovation. Companies that have sued over the program include J&J, Merck, Bristol Myers and Boehringer Ingelheim, which make drugs on CMS's negotiation list. | They include the blood thinners Eliquis from Bristol Myers Squibb and Pfizer , Xarelto from Johnson & Johnson , Merck & Co's diabetes drug Januvia, and AbbVie's leukemia treatment Imbruvica. (Adds detail from the ruling in paragraphs 3-6) By Brendan Pierson Sept 29 (Reuters) - The U.S. government's Medicare health insurance program can begin negotiating prices for some prescription drugs this fall under a new program, a federal judge ruled on Friday, vindicating one of President Joe Biden's signature initiatives. The nation's largest business lobbying group has argued the program violates the U.S. Constitution by allowing the government to force drugmakers to accept unfairly low prices, and would stifle innovation. | They include the blood thinners Eliquis from Bristol Myers Squibb and Pfizer , Xarelto from Johnson & Johnson , Merck & Co's diabetes drug Januvia, and AbbVie's leukemia treatment Imbruvica. (Adds detail from the ruling in paragraphs 3-6) By Brendan Pierson Sept 29 (Reuters) - The U.S. government's Medicare health insurance program can begin negotiating prices for some prescription drugs this fall under a new program, a federal judge ruled on Friday, vindicating one of President Joe Biden's signature initiatives. Although Newman's ruling allows the price negotiation program to begin as scheduled on Oct. 1, the judge allowed the lawsuit to continue, denying a motion by the government to dismiss it altogether. | They include the blood thinners Eliquis from Bristol Myers Squibb and Pfizer , Xarelto from Johnson & Johnson , Merck & Co's diabetes drug Januvia, and AbbVie's leukemia treatment Imbruvica. The order by U.S. District Judge Michael Newman in Dayton, Ohio, comes in a lawsuit brought against the Biden administration by the U.S. Chamber of Commerce. The program aims to save $25 billion annually by 2031 by requiring drugmakers to negotiate the prices of selected expensive drugs with the U.S. Centers for Medicare and Medicaid Service (CMS), which oversees Medicare. |
22174.0 | 2023-09-29 00:00:00 UTC | The Zacks Analyst Blog Highlights Oracle, AbbVie, Lowe's Companies, Ecolab and Motorola Solutions | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-oracle-abbvie-lowes-companies-ecolab-and-motorola | nan | nan | For Immediate Release
Chicago, IL – September 29, 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: Oracle Corp. ORCL, AbbVie Inc. ABBV, Lowe's Companies, Inc. LOW, Ecolab Inc. ECL and Motorola Solutions, Inc. MSI.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Oracle, AbbVie and Lowe's
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 Oracle Corp., AbbVie Inc. and Lowe's Companies, 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 >>>
Oracle shares have outperformed the Zacks Computer - Software industry over the past year (+71.6% vs. +38.3%) on the back of steady adoption of Gen 2 Cloud, Fusion and Autonomous Database despite slow cloud revenue growth.
Oracle's Gen 2 Cloud is driving artificial intelligence (AI) clientele driven by better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with VMware and Microsoft to win new clientele. The company announced an extension of its collaboration with VMware to assist customers in modernizing the workloads by utilizing OCI.
ORCL is launching a generative AI cloud service for enterprise customers. Its share buybacks and dividend policy are noteworthy. However, stiff competition in the cloud market is slowing down the growth of Oracle's expansion efforts in the competitive market.
(You can read the full research report on Oracle here >>>)
Shares of AbbVie have gained +11.6% over the past year against the Zacks Large Cap Pharmaceuticals industry's gain of +26.5%. The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost Humira revenues.
Newer 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. The company has several early/mid-stage candidates that have blockbuster potential. AbbVie expects several regulatory submissions and key data readouts in 2023.
However, the company faces several near-term headwinds like Humira's loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
(You can read the full research report on AbbVie here >>>)
Lowe's shares have outperformed the Zacks Building Products - Retail industry over the year-to-date period (+5.4% vs. +3.4%). The company remains well-positioned to capitalize on the demand for the home improvement market, backed by investments in technology and strength in the Pro business. Lowe's posted better-than-expected results during second-quarter fiscal 2023, wherein the top and bottom lines beat the Zacks Consensus Estimate.
Results benefited from strong margins stemming from gains from the Total Home strategy, a sturdy spring recovery and the execution of the Perpetual Productivity Improvement initiative. However, management expects revenues to be $87-$89 billion versus $97.1 billion delivered last fiscal.
(You can read the full research report on Lowe's here >>>)
Other noteworthy reports we are featuring today include Ecolab Inc. and Motorola Solutions, Inc.
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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.
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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: Oracle Corp. ORCL, AbbVie Inc. ABBV, Lowe's Companies, Inc. LOW, Ecolab Inc. ECL and Motorola Solutions, Inc. MSI. Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Oracle, AbbVie and Lowe's 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 Oracle Corp., AbbVie Inc. and Lowe's Companies, Inc. | Stocks recently featured in the blog include: Oracle Corp. ORCL, AbbVie Inc. ABBV, Lowe's Companies, Inc. LOW, Ecolab Inc. ECL and Motorola Solutions, Inc. MSI. Today's Research Daily features new research reports on 16 major stocks, including Oracle Corp., AbbVie Inc. and Lowe's Companies, Inc. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Oracle, AbbVie and Lowe's 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 Oracle Corp., AbbVie Inc. and Lowe's Companies, Inc. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report AbbVie Inc. (ABBV) : 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 Oracle Corp., AbbVie Inc. and Lowe's Companies, Inc. Stocks recently featured in the blog include: Oracle Corp. ORCL, AbbVie Inc. ABBV, Lowe's Companies, Inc. LOW, Ecolab Inc. ECL and Motorola Solutions, Inc. MSI. Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Oracle, AbbVie and Lowe's The Zacks Research Daily presents the best research output of our analyst team. |
22175.0 | 2023-09-29 00:00:00 UTC | AbbVie's blood cancer combo therapy fails in late-stage study | ABBV | https://www.nasdaq.com/articles/abbvies-blood-cancer-combo-therapy-fails-in-late-stage-study | nan | nan | Adds details throughout
Sept 29 (Reuters) - AbbVie ABBV.N said on Friday a late-stage study of its experimental combination therapy failed to show meaningful increase in the survival of patients with a form of blood cancer without the disease worsening.
The combination of AbbVie's Venclyxto and a steroid dexamethasone was being tested in patients with relapsed multiple myeloma who had received two or more prior treatments.
Multiple myeloma is a cancer that forms in a type of white blood cells called plasma cells.
Venclyxto is being jointly commercialized by AbbVie and Roche ROG.S unit Genentech in the U.S. and by AbbVie outside the country.
(Reporting by Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
((Mariam.ESunny@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. | Adds details throughout Sept 29 (Reuters) - AbbVie ABBV.N said on Friday a late-stage study of its experimental combination therapy failed to show meaningful increase in the survival of patients with a form of blood cancer without the disease worsening. The combination of AbbVie's Venclyxto and a steroid dexamethasone was being tested in patients with relapsed multiple myeloma who had received two or more prior treatments. Venclyxto is being jointly commercialized by AbbVie and Roche ROG.S unit Genentech in the U.S. and by AbbVie outside the country. | Adds details throughout Sept 29 (Reuters) - AbbVie ABBV.N said on Friday a late-stage study of its experimental combination therapy failed to show meaningful increase in the survival of patients with a form of blood cancer without the disease worsening. The combination of AbbVie's Venclyxto and a steroid dexamethasone was being tested in patients with relapsed multiple myeloma who had received two or more prior treatments. Venclyxto is being jointly commercialized by AbbVie and Roche ROG.S unit Genentech in the U.S. and by AbbVie outside the country. | Adds details throughout Sept 29 (Reuters) - AbbVie ABBV.N said on Friday a late-stage study of its experimental combination therapy failed to show meaningful increase in the survival of patients with a form of blood cancer without the disease worsening. The combination of AbbVie's Venclyxto and a steroid dexamethasone was being tested in patients with relapsed multiple myeloma who had received two or more prior treatments. Venclyxto is being jointly commercialized by AbbVie and Roche ROG.S unit Genentech in the U.S. and by AbbVie outside the country. | Adds details throughout Sept 29 (Reuters) - AbbVie ABBV.N said on Friday a late-stage study of its experimental combination therapy failed to show meaningful increase in the survival of patients with a form of blood cancer without the disease worsening. The combination of AbbVie's Venclyxto and a steroid dexamethasone was being tested in patients with relapsed multiple myeloma who had received two or more prior treatments. Venclyxto is being jointly commercialized by AbbVie and Roche ROG.S unit Genentech in the U.S. and by AbbVie outside the country. |
22176.0 | 2023-09-29 00:00:00 UTC | Want $500 in Passive Income? Invest $3,500 Into These 3 Dividend Stocks and Wait 4 Years | ABBV | https://www.nasdaq.com/articles/want-%24500-in-passive-income-invest-%243500-into-these-3-dividend-stocks-and-wait-4-years | nan | nan | No return is guaranteed in the stock market. However, investors can have a high degree of certainty when it comes to dividend payments from quality companies.
Diamondback Energy (NASDAQ: FANG) offers a combination of a stable dividend and upside exposure to high energy prices. NextEra Energy Partners (NYSE: NEP) passes along returns from its massive renewable energy generation portfolio to investors in the form of dividends. AbbVie (NYSE: ABBV) is a gigantic biopharma company that reduces the risks associated with the performance of a single drug by maintaining a diversified portfolio.
Investors can expect to earn at least $500 in passive income after investing $3,500 equally in these three stocks and waiting four years. Here's why all three dividend stocks are worth buying now.
Image source: Getty Images.
A dividend stock for energy bulls
Lee Samaha (Diamondback Energy): I don't know what Diamondback's dividend will be next year, nor does the investment community at large -- and, for that matter, neither does its management. The reason is that the company returns capital to investors through a combination of a base dividend (which it intends to maintain), a variable dividend whose amount fluctuates with the price of energy and Diamondback's production, and opportunistic share buybacks.
The company's current quarterly base dividend is $0.84, equating to $3.36 a year, generating a yield of around 2.2% at the time of writing. However, the current variable dividend takes that full-year dividend up to $6.88, meaning a 4.4% dividend yield at current prices.
While it's impossible to know where the price of oil is heading, and a collapse in the price will pressure Diamondback's ability to pay its base and variable dividend, the company stands relatively well placed in the industry due to its use of hedging. Management has hedge protection at $55 a barrel of oil to protect its base dividend down to a price of oil of $40 a barrel. As I write, the price of oil is about $91.
Moreover, Diamondback is not a company generating cash by running off assets. On the contrary, management plans to increase oil production by 17% in 2023, and it has expanded its total proven reserves at a compound annual growth rate of 19.6% over the last four years.
It all adds up to the company that can pay a good dividend across a range of oil price scenarios, and if the current strength in energy prices continues, the company is likely to hike the dividend in 2024.
Give your passive income a jolt with NextEra Energy Partners
Scott Levine (NextEra Energy Partners): There's no denying the pride in getting paid for putting in a hard day's work. But there's something equally rewarding about making savvy investment decisions and getting paid for doing nothing -- an opportunity that picking up shares of NextEra Energy Partners affords. With its 5.7% forward-yielding dividend, the clean energy utility stock is a powerhouse opportunity for income investors, and the best part is that it's currently on sale.
Including nuclear, solar, and battery assets, NextEra Energy Partners operates a clean energy portfolio totaling about 67 gigawatts (GW). But wait, there's more. The company recently announced in its second-quarter 2023 financial results that it has a backlog that includes 20 GW of wind, solar, and energy storage projects.
Because the company often signs long-term power purchase agreements with customers, NextEra Energy Partners has substantial insight into future cash flows. This helps management plan for capital expenditures, including raising the dividend. Over the 15-year period from 2007 to 2022, for example, the company has increased its dividend at a compound annual growth rate of 9.9%. The company forecasts growing the dividend 10% annually through 2024, and with management guiding for adjusted earnings per share to grow 6% to 8% from 2024 to 2026, it's not far-fetched to think that the dividend will similarly rise higher.
With shares of NextEra Energy Partners changing hands at 6.3 times operating cash flow, income investors have a great opportunity to scoop up this dividend darling at a discount since the stock's five-year average cash flow multiple is 8.1.
A safer way to invest in big biopharma
Daniel Foelber (AbbVie): AbbVie is one of the most powerful biopharma companies out there. The company's objective is simple: research and develop a portfolio of aesthetic (like Botox), oncology, neuroscience, eye care, and virology drugs and treatments. The portfolio will have its winners and losers. But as long as the pipeline is strong enough, AbbVie can handle the losses of patent exclusivity, which is what happened recently with its top drug Humira.
AbbVie's strong portfolio of products has led to growth in the stock price (up 77.8% in the last three years) and dividend growth. Including the years prior to the split from Abbott Laboratories (NYSE: ABT) in 2013, AbbVie is a Dividend King. In fact, it is one of just seven large-cap Dividend Kings with a yield of over 3%.
AbbVie has the growth and the income of an excellent investment. And to top it all off, it also has an inexpensive valuation, with a forward price to earnings ratio of just 13.8.
The greatest risk with AbbVie is that future earnings and its ability to pay a growing dividend depend on coming up with new blockbuster drugs. That is no easy feat. But AbbVie has a track record of maintaining a capable pipeline. And for that reason, it's the best overall big biopharma stock out there.
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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine 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. | AbbVie (NYSE: ABBV) is a gigantic biopharma company that reduces the risks associated with the performance of a single drug by maintaining a diversified portfolio. A safer way to invest in big biopharma Daniel Foelber (AbbVie): AbbVie is one of the most powerful biopharma companies out there. But as long as the pipeline is strong enough, AbbVie can handle the losses of patent exclusivity, which is what happened recently with its top drug Humira. | AbbVie (NYSE: ABBV) is a gigantic biopharma company that reduces the risks associated with the performance of a single drug by maintaining a diversified portfolio. A safer way to invest in big biopharma Daniel Foelber (AbbVie): AbbVie is one of the most powerful biopharma companies out there. But as long as the pipeline is strong enough, AbbVie can handle the losses of patent exclusivity, which is what happened recently with its top drug Humira. | AbbVie (NYSE: ABBV) is a gigantic biopharma company that reduces the risks associated with the performance of a single drug by maintaining a diversified portfolio. A safer way to invest in big biopharma Daniel Foelber (AbbVie): AbbVie is one of the most powerful biopharma companies out there. But as long as the pipeline is strong enough, AbbVie can handle the losses of patent exclusivity, which is what happened recently with its top drug Humira. | AbbVie's strong portfolio of products has led to growth in the stock price (up 77.8% in the last three years) and dividend growth. AbbVie (NYSE: ABBV) is a gigantic biopharma company that reduces the risks associated with the performance of a single drug by maintaining a diversified portfolio. A safer way to invest in big biopharma Daniel Foelber (AbbVie): AbbVie is one of the most powerful biopharma companies out there. |
22177.0 | 2023-09-29 00:00:00 UTC | AbbVie Says Phase 3 CANOVA Trial Fails To Meet Primary Endpoint | ABBV | https://www.nasdaq.com/articles/abbvie-says-phase-3-canova-trial-fails-to-meet-primary-endpoint | nan | nan | (RTTNews) - AbbVie (ABBV) announced Friday data from its Phase 3 CANOVA study evaluating the safety and efficacy of venetoclax (VENCLEXTA®/ VENCLYXTO®) plus dexamethasone (VenDex) for patients with t(11;14)-positive relapsed or refractory (R/R) multiple myeloma who have received two or more prior treatments.
The data did not demonstrate that the treatment combination significantly improved progression-free survival (PFS), the primary endpoint of the trial.
Patients receiving VenDex showed improvement in median PFS of 9.9 months compared to 5.8 months with the combination of study comparator pomalidomide and dexamethasone (PomDex). However, the results did not reach statistical significance.
AbbVie will now discuss the data with health authorities in the near future to further understand the potential of venetoclax as a biomarker-driven therapy in multiple myeloma.
Venetoclax is not approved by any regulatory authority in any country for the treatment of multiple myeloma. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S.
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) announced Friday data from its Phase 3 CANOVA study evaluating the safety and efficacy of venetoclax (VENCLEXTA®/ VENCLYXTO®) plus dexamethasone (VenDex) for patients with t(11;14)-positive relapsed or refractory (R/R) multiple myeloma who have received two or more prior treatments. AbbVie will now discuss the data with health authorities in the near future to further understand the potential of venetoclax as a biomarker-driven therapy in multiple myeloma. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) announced Friday data from its Phase 3 CANOVA study evaluating the safety and efficacy of venetoclax (VENCLEXTA®/ VENCLYXTO®) plus dexamethasone (VenDex) for patients with t(11;14)-positive relapsed or refractory (R/R) multiple myeloma who have received two or more prior treatments. AbbVie will now discuss the data with health authorities in the near future to further understand the potential of venetoclax as a biomarker-driven therapy in multiple myeloma. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) announced Friday data from its Phase 3 CANOVA study evaluating the safety and efficacy of venetoclax (VENCLEXTA®/ VENCLYXTO®) plus dexamethasone (VenDex) for patients with t(11;14)-positive relapsed or refractory (R/R) multiple myeloma who have received two or more prior treatments. AbbVie will now discuss the data with health authorities in the near future to further understand the potential of venetoclax as a biomarker-driven therapy in multiple myeloma. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) announced Friday data from its Phase 3 CANOVA study evaluating the safety and efficacy of venetoclax (VENCLEXTA®/ VENCLYXTO®) plus dexamethasone (VenDex) for patients with t(11;14)-positive relapsed or refractory (R/R) multiple myeloma who have received two or more prior treatments. AbbVie will now discuss the data with health authorities in the near future to further understand the potential of venetoclax as a biomarker-driven therapy in multiple myeloma. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. |
22178.0 | 2023-09-29 00:00:00 UTC | Is WisdomTree U.S. High Dividend ETF (DHS) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-high-dividend-etf-dhs-a-strong-etf-right-now-8 | nan | nan | Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
DHS is managed by Wisdomtree, and this fund has amassed over $1.16 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. 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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.38% for this ETF, which makes it on par with most peer products in the space.
DHS's 12-month trailing dividend yield is 4.32%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector - about 22.30% of the portfolio. Financials and Utilities round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of the fund's total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX).
The top 10 holdings account for about 40.02% of total assets under management.
Performance and Risk
The ETF has lost about -6.17% and is up about 4.49% so far this year and in the past one year (as of 09/29/2023), respectively. DHS has traded between $75.81 and $89.39 during this last 52-week period.
DHS has a beta of 0.81 and standard deviation of 15.04% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 392 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
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 $48.34 billion in assets, Vanguard Value ETF has $98.24 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.
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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. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of the fund's total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006. | 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. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of the fund's total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. | 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. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of the fund's total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of the fund's total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006. |
22179.0 | 2023-09-28 00:00:00 UTC | Is It Worth Investing in AbbVie (ABBV) Based on Wall Street's Bullish Views? | ABBV | https://www.nasdaq.com/articles/is-it-worth-investing-in-abbvie-abbv-based-on-wall-streets-bullish-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?
Let's take a look at what these Wall Street heavyweights have to say about AbbVie (ABBV) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
AbbVie currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 17 brokerage firms. An ABR of 1.97 approximates between Strong Buy and Buy.
Of the 17 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 47.1% and 5.9% of all recommendations.
Brokerage Recommendation Trends for ABBV
Check price target & stock forecast for AbbVie here>>>
While the ABR calls for buying AbbVie, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
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.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ABBV a Good Investment?
Looking at the earnings estimate revisions for AbbVie, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $11.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market 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 #3 (Hold) for AbbVie. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for AbbVie.
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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. | Let's take a look at what these Wall Street heavyweights have to say about AbbVie (ABBV) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. AbbVie currently has an average brokerage recommendation (ABR) of 1.97, 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 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Let's take a look at what these Wall Street heavyweights have to say about AbbVie (ABBV) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for ABBV | AbbVie currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Let's take a look at what these Wall Street heavyweights have to say about AbbVie (ABBV) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for ABBV | Brokerage Recommendation Trends for ABBV Let's take a look at what these Wall Street heavyweights have to say about AbbVie (ABBV) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. AbbVie currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) |
22180.0 | 2023-09-26 00:00:00 UTC | Don’t Miss the Boom: 3 Biotech Stocks Set to Explode Higher | ABBV | https://www.nasdaq.com/articles/dont-miss-the-boom%3A-3-biotech-stocks-set-to-explode-higher | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the dynamic investment realm, one sector that continues to stand out is the area of biotech stocks. Though risky, especially when assessing established firms with market-ready drugs and vast research and development (R&D), the rewards can be significant. Moreover, biotech’s allure isn’t merely financial; it’s an optimistic bet on groundbreaking discoveries and the promise of better health.
While the macroeconomic outlook can influence market sentiments, drug discovery progress persists undeterred. Interestingly, Investor’s Business Daily’s biotech industry group has mostly traded down since February 2021. Nevertheless, despite these changing industry metrics, diving into biotech stocks remains a compelling case.
However, biotech isn’t just about present gains. Many early-stage companies may present modest revenue today, but their potential is meteoric. As the global focus pivots to health and wellness and policies championing equitable healthcare, consider these biotech stocks to buy. They might be the golden ticket to a robust portfolio.
Biotech Stocks to Buy: AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
In the fast-paced world of biotech, AbbVie (NYSE:ABBV) distinctly marks its territory as an undisputed leader. Its flagship arthritis medication, Humira, has long been the backbone of its revenue structure. Still, even as patent expiries caused a 25% slide, global sales for Humira remained an impressive $4 billion at the end of the last quarter. Additionally, the firm is diversifying, with an extensive drug pipeline and ongoing efforts to broaden Humira’s scope.
Moreover, AbbVie’s alliance with Genmab (NASDAQ:GMAB) has borne fruit, showcasing encouraging clinical outcomes for a follicular lymphoma solution. Coupled with the MHRA greenlight in the U.K. for its Crohn’s Disease medication, Rinvoq, and the FDA’s expanded approval for its migraine remedy, Qulpta, AbbVie’s global influence continues to flourish.
Furthermore, AbbVie boasts a yield surpassing 3.8%, demonstrating consistent growth, and an impressive revenue of $13.8 billion, exceeding expectations by a staggering $344.7 million. This financial prowess mirrors its remarkable scientific achievements.
Vertex Pharmaceuticals (VRTX)
Source: Pavel Kapysh / Shutterstock.com
When it comes to the dynamic realm of biotechnology, Vertex Pharmaceuticals (NASDAQ:VRTX) positions itself as a stalwart of innovation. Revered for its commendable dedication to conquering cystic fibrosis (CF), a genetic nemesis, the company proudly showcases a collection of FDA-blessed treatments, transforming the lives of those grappling with this disease.
Moreover, Vertex reported an enticing revenue increase of 13.5% year-over-year to an astounding $2.49 billion — beating expectations by a notable $72.60 million. That revenue surge can be largely attributed to the robust international uptake of TRIKAFTA and KAFTRIO and its consistent stateside success, especially with its recent launch for children with CF aged 2 to 5. Consequently, buoyed by such triumphs and its powerful quartet of CF solutions, the biotech behemoth anticipates a staggering annual revenue of between $9.7 billion and $9.8 billion.
Furthermore, it’s exploring treatments for ailments like sickle cell and diabetes, embodying its relentless medical evolution drive.
Eli Lilly (LLY)
Source: shutterstock.com/Michael Vi
Eli Lilly (NYSE:LLY) is making waves in the pulsating crossroads of biotech and artificial intelligence (AI). Its recent commitment of $250 million to XtalPi, an avant-garde AI-driven drug discovery entity, is a testament to its ambitious vision. Further bolstering their AI approach, Lilly joined forces with Yseop, specialists in natural language processing. The strategic move aims to convert intricate scientific datasets into riveting narratives, enhancing their pitch to regulators and ensuring smoother pathways to approval.
What truly amplifies Eli Lilly’s position in this AI-biotech dance is its illustrious legacy in drug discovery, providing an invaluable databank ideal for AI paradigms. Its financials tell a similar success story: Revenue has catapulted from $6.5 billion to $8.3 billion year-on-year, while net income has nearly doubled, jumping from $952 million to a whopping $1.76 billion.
Moreover, with unparalleled data access, abundant financial muscle, and cutting-edge computing capabilities, Eli Lilly unmistakably stands tall.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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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. | Coupled with the MHRA greenlight in the U.K. for its Crohn’s Disease medication, Rinvoq, and the FDA’s expanded approval for its migraine remedy, Qulpta, AbbVie’s global influence continues to flourish. Biotech Stocks to Buy: AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the fast-paced world of biotech, AbbVie (NYSE:ABBV) distinctly marks its territory as an undisputed leader. Moreover, AbbVie’s alliance with Genmab (NASDAQ:GMAB) has borne fruit, showcasing encouraging clinical outcomes for a follicular lymphoma solution. | Biotech Stocks to Buy: AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the fast-paced world of biotech, AbbVie (NYSE:ABBV) distinctly marks its territory as an undisputed leader. Moreover, AbbVie’s alliance with Genmab (NASDAQ:GMAB) has borne fruit, showcasing encouraging clinical outcomes for a follicular lymphoma solution. Coupled with the MHRA greenlight in the U.K. for its Crohn’s Disease medication, Rinvoq, and the FDA’s expanded approval for its migraine remedy, Qulpta, AbbVie’s global influence continues to flourish. | Biotech Stocks to Buy: AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the fast-paced world of biotech, AbbVie (NYSE:ABBV) distinctly marks its territory as an undisputed leader. Moreover, AbbVie’s alliance with Genmab (NASDAQ:GMAB) has borne fruit, showcasing encouraging clinical outcomes for a follicular lymphoma solution. Coupled with the MHRA greenlight in the U.K. for its Crohn’s Disease medication, Rinvoq, and the FDA’s expanded approval for its migraine remedy, Qulpta, AbbVie’s global influence continues to flourish. | Biotech Stocks to Buy: AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the fast-paced world of biotech, AbbVie (NYSE:ABBV) distinctly marks its territory as an undisputed leader. Moreover, AbbVie’s alliance with Genmab (NASDAQ:GMAB) has borne fruit, showcasing encouraging clinical outcomes for a follicular lymphoma solution. Coupled with the MHRA greenlight in the U.K. for its Crohn’s Disease medication, Rinvoq, and the FDA’s expanded approval for its migraine remedy, Qulpta, AbbVie’s global influence continues to flourish. |
22181.0 | 2023-09-26 00:00:00 UTC | AbbVie's (ABBV) Epcoritamab Gets Approval in Europe for DLBCL | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-epcoritamab-gets-approval-in-europe-for-dlbcl | nan | nan | AbbVie ABBV and partner Genmab GMAB announced that the European Commission has granted conditional marketing authorization to epcoritamab for treating relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). DLBCL is a common, aggressive and fast-growing form of non-Hodgkin's lymphoma (NHL).
Epcoritamab will be marketed as Tepkinly in the European Union for the treatment of adult patients with R/R DLBCL after two or more lines of systemic therapy. The approval was expected as, in July, the European Medicines Agency's Committee for Medicinal Products for Human Use had given a positive opinion recommending conditional marketing authorization to epcoritamab.
The approval was based on the response rate and durability of response data from the expansion cohort of phase I/II study, EPCORE NHL-1. In the study, epcoritamab demonstrated an overall response rate of 62% and a complete response rate of 39%. The median duration of response was 15.5 months in patients with R/R large B-cell lymphoma, including its subtype DLBCL.
Year to date, AbbVie’s shares have lost 4.3% against the industry’s 5.7% rise.
Image Source: Zacks Investment Research
Tepkinly is AbbVie's second hematological cancer drug to be approved in the European Union. It is also the third blood cancer medicine in AbbVie’s portfolio, the other two being Imbruvica and Venclexta.
Epcoritamab was approved (accelerated approval) as Epkinly for certain patients with relapsed/refractory DLBCL in the United States in May.
Phase III studies are ongoing on epcoritamab in earlier lines of DLBCL and for follicular lymphoma.
AbbVie and Genmab are jointly developing and commercializing Epkinly/Tepkinly as part of the companies' oncology collaboration entered into in 2020. The companies share commercial responsibilities in the United States and Japan.
Zacks Rank & Key Picks
AbbVie currently has a Zacks Rank #3 (Hold).
Some top-ranked drug/biotech companies worth considering are Aurinia Pharmaceuticals AUPH and Corcept Therapeutics CORT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the loss per share estimate for Aurinia Pharmaceuticals for 2023 has narrowed from 71 cents per share to 58 cents per share, while that for 2024 has narrowed from 43 cents to 28 cents. Year to date, shares of Aurinia Pharmaceuticals have gained 87.7%.
Earnings of Aurinia Pharmaceuticals beat estimates in all the last four quarters, delivering an earnings surprise of 45.61% on average.
In the past 60 days, the Zacks Consensus Estimate for Corcept’s earnings has increased from 62 cents per share to 78 cents for 2023. The bottom-line estimate has also improved from 61 cents to 83 cents for 2024 during the same time frame. Shares of the company have rallied 59.1% year to date.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.
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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 and partner Genmab GMAB announced that the European Commission has granted conditional marketing authorization to epcoritamab for treating relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Image Source: Zacks Investment Research Tepkinly is AbbVie's second hematological cancer drug to be approved in the European Union. Year to date, AbbVie’s shares have lost 4.3% against the industry’s 5.7% rise. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report Aurinia Pharmaceuticals Inc (AUPH) : 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 and partner Genmab GMAB announced that the European Commission has granted conditional marketing authorization to epcoritamab for treating relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Year to date, AbbVie’s shares have lost 4.3% against the industry’s 5.7% rise. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report Aurinia Pharmaceuticals Inc (AUPH) : 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 and partner Genmab GMAB announced that the European Commission has granted conditional marketing authorization to epcoritamab for treating relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Year to date, AbbVie’s shares have lost 4.3% against the industry’s 5.7% rise. | AbbVie ABBV and partner Genmab GMAB announced that the European Commission has granted conditional marketing authorization to epcoritamab for treating relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Year to date, AbbVie’s shares have lost 4.3% against the industry’s 5.7% rise. Image Source: Zacks Investment Research Tepkinly is AbbVie's second hematological cancer drug to be approved in the European Union. |
22182.0 | 2023-09-26 00:00:00 UTC | Clorox Pullback Presents a Chance to Clean Up on a 3.6% Dividend | ABBV | https://www.nasdaq.com/articles/clorox-pullback-presents-a-chance-to-clean-up-on-a-3.6-dividend | nan | nan | Since The Clorox Company (NYSE: CLX) rode a pandemic ‘clean freak’ wave to nearly $240 per share in August 2021, its market value has been bleached by over $13 billion.
The dirty truth? Clorox’s 44% two-year plunge has created an opportunity to own a defensive stock with a shiny dividend.
The consumer products mainstay’s 3.6% forward dividend yield is now the highest it has been since 2011 — and nearly twice the sector average. Better yet, it is a dividend that is only likely to go higher, considering Clorox is a Dividend Aristocrat on account of its 37-year dividend hike streak. In July 2023, the dividend was boosted 2% to $1.20 quarterly (or $4.80 annually).
So why is the current stock price so low and the dividend yield so high?
Clorox’s latest slump is a bit of a head-scratcher. The company crushed the consensus earnings per share (EPS) estimate and posted 80% year-over-year profit growth in fiscal Q4. Revenue growth accelerated to 12% with positive contributions from all four operating segments. Profit margins widened, and management predicted further improvement in profitability in fiscal 2024. The market responded appropriately, bidding Clorox shares up 9% on August 3rd. Since then, however, they are down 20%. What gives?
Why Is Clorox Stock Down So Much?
In recent weeks, Clorox has been in the spotlight for a mid-August cyberattack that targeted the company’s IT systems. Last week, management disclosed that the attack has led to “widespread disruption” of operations, and current quarter financials will be negatively affected. While not good news, the hack will probably amount to a temporary setback for the 110-year-old company.
The main reason though is that the broader market has been in a downtrend since August 3rd — albeit a mild one, with the S&P down about 3%. For Clorox, the huge underperformance is about two familiar foes — inflation and rising interest rates. With the Fed vowing for at least one more rate hike by year-end to combat sticky inflation, the impact on Clorox sales could be negative. As has been the case for the last two years, consumers may be more likely to trade down from branded cleansers and cat litter to generics. It is why management is projecting just 0% to 2% revenue growth in the new fiscal year.
But if the economic outlook has worsened as the recent market downturn implies, a defensive stock like Clorox may become the hottest ticket in town. As the S&P 500 retreats from the 4,600 level and lofty tech stock valuations get recalibrated, a rotation to ‘boring’ consumer staples may be underway. If it is, it may be 2022 all over again.
Although Clorox’s fiscal 2024 revenue outlook isn’t inspiring, the glass may be half full for several reasons:
1) As technology and other high-growth companies start to face difficult year-over-year comparisons in the coming quarter, single-digit growth would look pretty good relative to negative growth.
2) Considering Clorox has comfortably topped both revenue and EPS estimates in each of the last four quarters, there’s a good chance management is being overly conservative. Low ball guidance that gets beat often leads to significant stock outperformance.
3) Due to price increases, cost savings initiatives and supply chain optimization, Clorox is projecting adjusted EPS growth of 10% to 16% for the next 12 months. That’s not too shabby, given the industry’s macro challenges.
It means that CLX is trading at 23x forward earnings. The tech-heavy Nasdaq-100 currently has a forward P/E around 27x. Suddenly, CLX doesn’t look so bad.
If market sentiment continues to sour on mega-cap tech, defensive income generators like CLX may benefit. Wall Street’s average price target ($149) plus the 3.6% dividend gives the stock more than 16% total return potential over the next 12 months.
What Are Some Other Defense Dividend Stocks to Consider?
There are several other Dividend Aristocrats that are flashing attractive yields — and have bullish analyst sentiment. MarketBeat’s robust stock screening tool reveals these top candidates:
1) ABBV - AbbVie has raised its dividend for 51 consecutive years and has a 3.9% forward yield. This week, the $154 stock received a $170 price target from Piper Sandler.
2) CVX - With oil prices trending higher, Chevron has been the subject of bullish commentary and price target increases over the past 30 days. The Dividend Aristocrat offers a $6.04 per share annual dividend.
3) MDT - Medtronic, a 47-year dividend grower, boasts a 3.5% dividend that’s more than double the healthcare sector average. Combined with a bullish consensus target, the stock could have more than 20% total return upside.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | MarketBeat’s robust stock screening tool reveals these top candidates: 1) ABBV - AbbVie has raised its dividend for 51 consecutive years and has a 3.9% forward yield. Since The Clorox Company (NYSE: CLX) rode a pandemic ‘clean freak’ wave to nearly $240 per share in August 2021, its market value has been bleached by over $13 billion. 3) Due to price increases, cost savings initiatives and supply chain optimization, Clorox is projecting adjusted EPS growth of 10% to 16% for the next 12 months. | MarketBeat’s robust stock screening tool reveals these top candidates: 1) ABBV - AbbVie has raised its dividend for 51 consecutive years and has a 3.9% forward yield. So why is the current stock price so low and the dividend yield so high? The company crushed the consensus earnings per share (EPS) estimate and posted 80% year-over-year profit growth in fiscal Q4. | MarketBeat’s robust stock screening tool reveals these top candidates: 1) ABBV - AbbVie has raised its dividend for 51 consecutive years and has a 3.9% forward yield. Clorox’s 44% two-year plunge has created an opportunity to own a defensive stock with a shiny dividend. Better yet, it is a dividend that is only likely to go higher, considering Clorox is a Dividend Aristocrat on account of its 37-year dividend hike streak. | MarketBeat’s robust stock screening tool reveals these top candidates: 1) ABBV - AbbVie has raised its dividend for 51 consecutive years and has a 3.9% forward yield. So why is the current stock price so low and the dividend yield so high? Why Is Clorox Stock Down So Much? |
22183.0 | 2023-09-25 00:00:00 UTC | AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outpaces-stock-market-gains%3A-what-you-should-know-6 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $154.65, moving +1.25% from the previous trading session. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the drugmaker had gained 4.12% in the past month. In that same time, the Medical sector lost 5.26%, while the S&P 500 lost 1.38%.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.87, down 21.58% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.66 billion, down 7.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11 per share and revenue of $53.5 billion. These totals would mark changes of -20.12% and -7.85%, respectively, from last year.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AbbVie is currently a Zacks Rank #3 (Hold).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 13.89. This valuation marks a discount compared to its industry's average Forward P/E of 14.62.
Meanwhile, ABBV's PEG ratio is currently 2.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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. | AbbVie (ABBV) closed the most recent trading day at $154.65, moving +1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $154.65, moving +1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $154.65, moving +1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie is currently a Zacks Rank #3 (Hold). AbbVie (ABBV) closed the most recent trading day at $154.65, moving +1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. |
22184.0 | 2023-09-25 00:00:00 UTC | AbbVie, Genmab: EU Approves TEPKINLY For Adults With R/R Diffuse Large B-cell Lymphoma | ABBV | https://www.nasdaq.com/articles/abbvie-genmab%3A-eu-approves-tepkinly-for-adults-with-r-r-diffuse-large-b-cell-lymphoma | nan | nan | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced Monday that the European Commission has granted conditional marketing authorization for TEPKINLY (epcoritamab) for adults with relapsed or refractory or R/R diffuse large B-cell lymphoma or DLBCL.
TEPKINLY is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration.
The approval is for TEPKINLY as a monotherapy for the treatment of adult patients with R/R DLBCL after two or more lines of systemic therapy.
Patients with DLBCL, the most common type of B-cell non-Hodgkin's lymphoma, face limited treatment options, with few readily available, off-the-shelf medicines, especially for those whose disease has relapsed or become refractory to prior treatments.
The companies noted that TEPKINLY is the first and only subcutaneous T-cell engaging bispecific antibody approved for the treatment of patients with DLBCL in the European Union, as well as Liechtenstein, Norway and Iceland.
Conditional marketing authorization is granted to medicines that address an unmet medical need.
The conditional approval was supported by data from the pivotal EPCORE NHL-1 Phase 1/2 open-label, multi-cohort, multi-center, single-arm trial evaluating the preliminary efficacy and safety of TEPKINLY in patients with R/R large B-cell lymphoma (LBCL), including its subtype DLBCL.
In the study, DLBCL patients treated with TEPKINLY achieved an overall response rate of 62 percent and a complete response rate of 39 percent.
Roopal Thakkar, senior vice president, development and regulatory affairs, chief medical officer, AbbVie, said, "The European Commission approval of epcoritamab represents a significant milestone in our aspiration with Genmab to develop a potential core therapy for patients with B-cell malignancies, like DLBCL. With this milestone achievement, TEPKINLY is now the second approved cancer treatment in the EU from our oncology portfolio, and AbbVie's third blood cancer medicine across the world."
Under the oncology collaboration, the companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization.
AbbVie will continue to pursue regulatory submissions for epcoritamab across international markets throughout the year.
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. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced Monday that the European Commission has granted conditional marketing authorization for TEPKINLY (epcoritamab) for adults with relapsed or refractory or R/R diffuse large B-cell lymphoma or DLBCL. TEPKINLY is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. Roopal Thakkar, senior vice president, development and regulatory affairs, chief medical officer, AbbVie, said, "The European Commission approval of epcoritamab represents a significant milestone in our aspiration with Genmab to develop a potential core therapy for patients with B-cell malignancies, like DLBCL. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced Monday that the European Commission has granted conditional marketing authorization for TEPKINLY (epcoritamab) for adults with relapsed or refractory or R/R diffuse large B-cell lymphoma or DLBCL. Roopal Thakkar, senior vice president, development and regulatory affairs, chief medical officer, AbbVie, said, "The European Commission approval of epcoritamab represents a significant milestone in our aspiration with Genmab to develop a potential core therapy for patients with B-cell malignancies, like DLBCL. TEPKINLY is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced Monday that the European Commission has granted conditional marketing authorization for TEPKINLY (epcoritamab) for adults with relapsed or refractory or R/R diffuse large B-cell lymphoma or DLBCL. Roopal Thakkar, senior vice president, development and regulatory affairs, chief medical officer, AbbVie, said, "The European Commission approval of epcoritamab represents a significant milestone in our aspiration with Genmab to develop a potential core therapy for patients with B-cell malignancies, like DLBCL. TEPKINLY is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced Monday that the European Commission has granted conditional marketing authorization for TEPKINLY (epcoritamab) for adults with relapsed or refractory or R/R diffuse large B-cell lymphoma or DLBCL. Under the oncology collaboration, the companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. TEPKINLY is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. |
22185.0 | 2023-09-25 00:00:00 UTC | Argenx's 28% Surge & Promising Product Propel Investor Confidence | ABBV | https://www.nasdaq.com/articles/argenxs-28-surge-promising-product-propel-investor-confidence | nan | nan | If you want to get an isolated view of a constructive base taking shape in a strong stock, take a look at the Argenix SE (NASDAQ: ARGX) chart.
The stock gapped up nearly 28% on July 17, after announcing better-than-expected results from a clinical trial of its treatment for patients suffering from a progressive condition that affects muscle control.
After that gap higher, the stock pulled back into a shallow cup pattern, and it’s now adding a handle to that. So far, the base has corrected only 7%, a very shallow pullback. The fact that it’s pulled back such a small amount, and is far from closing the gap, indicates that investors have the conviction to continue holding.
The stock’s current buy point is above $532.60, which is the high point of the handle.
Positive Clinical Trial Results
Driving the gap-up: Over the course of a 48-week study, patients who received the company’s Vyvgart Hytrulo saw a 61% decline in the risk of relapse versus those receiving a placebo.
Netherlands-based Argenx is a biopharmaceutical company that develops antibody-based therapies to treat severe autoimmune diseases and other conditions.
Despite never having posted a profit, Argenx has a market capitalization of $29.30 billion. That’s unusual; most unprofitable biotechs are much smaller.
So what’s behind that substantial market capitalization?
The company has built up a robust drug pipeline with potential treatments for severe autoimmune diseases, as well as thyroid and skin conditions. In the biotech industry, investors often prioritize the potential of drug candidates, even if the company hasn't generated profits yet.
Biotech Sector Commands High Valuations
In general, the biotechnology sector tends to command high valuations because investors are eager to hop on board and invest in innovative treatments. Investors know biotech can be incredibly risky, but the rewards can also be great.
For example, Argenx is viewed as a potential acquisition target by a larger pharmaceutical firm.
For example, its portfolio of autoimmune drugs could be an attractive addition for a large pharma company such as AbbVie Inc. (NYSE: ABBV), which is facing patent expirations in a few years. Analysts say many of AbbVie’s drugs will reach peak revenue potential around the time that AbbVie’s revenue stream is under pressure.
In addition, analysts believe Vyvgart Hytrulo has the potential to get regulators’ OK to treat a number of other conditions, greatly increasing the likelihood of cash flow gains. Vygart is currently the company’s only product that’s generating revenue.
Healthcare stocks from the pharmaceutical and biotech industries that focus on antibody therapies include AbbVie, as well as Bristol-Myers Squibb Co. (NYSE: BMY), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), AstraZeneca PLC (NASDAQ: AZN), Amgen Inc. (NASDAQ: AMGN), AbCellera Biologics Inc. (NASDAQ: ABCL), Incyte Corp. (NASDAQ: INCY), Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), AnaptysBio, Inc. (NASDAQ: ANAB) and Viela Bio, Inc. (NASDAQ: VIE).
Revenue From Vygart, Collaborations
In the second quarter, Argenx reported $269 million in global revenue from Vyvgart. The company also generates revenue from collaborations, such as a partnership with Denmark’s Genmab to jointly discover, develop and commercialize therapeutic antibodies with applications in immunology and oncology.
In the past four quarters, Argenx revenue grew at triple or quadruple-digit rates, versus the year-earlier quarter. Those gains are due to a fast ramp-up of Vygart sales.
Wall Street still doesn’t see any profit in the next couple of years, which is common for biotechs still ramping up product sales.
On Track To Become Powerhouse
However, over the medium and long term, analysts are fans of this stock, likely due to a combination of increasing sales and the company’s potential as an acquisition target.
In a recent interview with pharmaceutical trade publication Fierce Pharma, Argenx CEO Tim Van Hauwermeiren said the company is on its way to becoming an immunology “powerhouse” within just a few years.
MarketBeat’s Argenx analyst ratings show a consensus view of “moderate buy,” with a price target of $533.95, an upside of 5.56%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, its portfolio of autoimmune drugs could be an attractive addition for a large pharma company such as AbbVie Inc. (NYSE: ABBV), which is facing patent expirations in a few years. Analysts say many of AbbVie’s drugs will reach peak revenue potential around the time that AbbVie’s revenue stream is under pressure. Healthcare stocks from the pharmaceutical and biotech industries that focus on antibody therapies include AbbVie, as well as Bristol-Myers Squibb Co. (NYSE: BMY), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), AstraZeneca PLC (NASDAQ: AZN), Amgen Inc. (NASDAQ: AMGN), AbCellera Biologics Inc. (NASDAQ: ABCL), Incyte Corp. (NASDAQ: INCY), Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), AnaptysBio, Inc. (NASDAQ: ANAB) and Viela Bio, Inc. (NASDAQ: VIE). | For example, its portfolio of autoimmune drugs could be an attractive addition for a large pharma company such as AbbVie Inc. (NYSE: ABBV), which is facing patent expirations in a few years. Analysts say many of AbbVie’s drugs will reach peak revenue potential around the time that AbbVie’s revenue stream is under pressure. Healthcare stocks from the pharmaceutical and biotech industries that focus on antibody therapies include AbbVie, as well as Bristol-Myers Squibb Co. (NYSE: BMY), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), AstraZeneca PLC (NASDAQ: AZN), Amgen Inc. (NASDAQ: AMGN), AbCellera Biologics Inc. (NASDAQ: ABCL), Incyte Corp. (NASDAQ: INCY), Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), AnaptysBio, Inc. (NASDAQ: ANAB) and Viela Bio, Inc. (NASDAQ: VIE). | Healthcare stocks from the pharmaceutical and biotech industries that focus on antibody therapies include AbbVie, as well as Bristol-Myers Squibb Co. (NYSE: BMY), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), AstraZeneca PLC (NASDAQ: AZN), Amgen Inc. (NASDAQ: AMGN), AbCellera Biologics Inc. (NASDAQ: ABCL), Incyte Corp. (NASDAQ: INCY), Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), AnaptysBio, Inc. (NASDAQ: ANAB) and Viela Bio, Inc. (NASDAQ: VIE). For example, its portfolio of autoimmune drugs could be an attractive addition for a large pharma company such as AbbVie Inc. (NYSE: ABBV), which is facing patent expirations in a few years. Analysts say many of AbbVie’s drugs will reach peak revenue potential around the time that AbbVie’s revenue stream is under pressure. | For example, its portfolio of autoimmune drugs could be an attractive addition for a large pharma company such as AbbVie Inc. (NYSE: ABBV), which is facing patent expirations in a few years. Analysts say many of AbbVie’s drugs will reach peak revenue potential around the time that AbbVie’s revenue stream is under pressure. Healthcare stocks from the pharmaceutical and biotech industries that focus on antibody therapies include AbbVie, as well as Bristol-Myers Squibb Co. (NYSE: BMY), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), AstraZeneca PLC (NASDAQ: AZN), Amgen Inc. (NASDAQ: AMGN), AbCellera Biologics Inc. (NASDAQ: ABCL), Incyte Corp. (NASDAQ: INCY), Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), AnaptysBio, Inc. (NASDAQ: ANAB) and Viela Bio, Inc. (NASDAQ: VIE). |
22186.0 | 2023-09-22 00:00:00 UTC | Noteworthy ETF Outflows: IVW, ABBV, TMO, DHR | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-ivw-abbv-tmo-dhr | 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $75.9 million dollar outflow -- that's a 0.2% decrease week over week (from 494,800,000 to 493,700,000). Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, and Danaher Corp (Symbol: DHR) is relatively unchanged. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $55.30 per share, with $72.87 as the 52 week high point — that compares with a last trade of $69.25. 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 ».
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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 experienced notable outflows »
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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 IVW, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, and Danaher Corp (Symbol: DHR) is relatively unchanged. 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 IVW, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, and Danaher Corp (Symbol: DHR) is relatively unchanged. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.30 per share, with $72.87 as the 52 week high point — that compares with a last trade of $69.25. 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). | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, and Danaher Corp (Symbol: DHR) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $75.9 million dollar outflow -- that's a 0.2% decrease week over week (from 494,800,000 to 493,700,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.30 per share, with $72.87 as the 52 week high point — that compares with a last trade of $69.25. | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, and Danaher Corp (Symbol: DHR) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $75.9 million dollar outflow -- that's a 0.2% decrease week over week (from 494,800,000 to 493,700,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.30 per share, with $72.87 as the 52 week high point — that compares with a last trade of $69.25. |
22187.0 | 2023-09-21 00:00:00 UTC | 3 Bargain Stocks to Buy in a Market That's Priced for Perfection | ABBV | https://www.nasdaq.com/articles/3-bargain-stocks-to-buy-in-a-market-thats-priced-for-perfection | nan | nan | Stock valuations are at historically high levels. However, that doesn't mean you can't find stocks worth buying.
Three Motley Fool contributors identified bargain stocks to buy in a market that's priced for perfection. Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE).
A new era for a longtime winner
Keith Speights (AbbVie): AbbVie's shares currently trade at a forward earnings multiple of only 13.8. That's cheap compared to most stocks, including most big pharma stocks.
Why such a discounted valuation for AbbVie? The company's sales are sinking as its top-selling drug, Humira, now faces biosimilar competition in the U.S.
Although AbbVie is certainly in a new era after relying primarily on Humira for its revenue for years, the big drugmaker is well prepared. Two successors to Humira are already on the market -- Rinvoq and Skyrizi. AbbVie expects the two drugs will together generate peak annual sales that are greater than what Humira ever achieved.
The company has also made shrewd acquisitions in recent years. Its biggest deal was the buyout of Allergan in 2020, which added products including Botox, migraine drug Ubrelvy, and antipsychotic drug Vraylar. As a result, AbbVie isn't nearly as dependent on Humira as it used to be.
AbbVie expects to soon return to delivering growth that will continue at least through the end of the decade. In the meantime, it's a Dividend King with an especially juicy yield of more than 3.8%. AbbVie is one of those rare stocks that offers something for income, value, and growth investors alike.
A steady and reliable biotech stock
Prosper Junior Bakiny (Gilead Sciences): Gilead Sciences stock has underperformed the market over the past three years, but here's the good news. Investors can now grab the company's shares at relatively attractive levels. Gilead Sciences is trading at about 12 times earnings estimates -- the average forward price-to-earnings ratio for the biotech industry is 15.3.
Stocks that trade at bargain valuations often do so because their prospects look poor, but that's hardly the case with Gilead Sciences. The drugmaker remains an excellent pick for investors looking for solid, blue chip dividend payers.
The company remains the leader in the HIV market thanks to blockbuster products such as Biktarvy and Descovy. The newly approved Sunlenca -- the first six-month, long-lasting HIV regimen -- should become a growth driver in the coming years.
Gilead Sciences' HIV unit is the most important part of its business, but the drugmaker's oncology segment is also growing in importance. These are medicines with an ongoing need. Though Gilead Sciences' business may not be the most exciting in the world, the fact that it offers necessary goods is a selling point for many investors. Further, the company boasts a deep pipeline across several therapeutic areas beyond oncology and HIV.
Gilead Sciences has increased its dividend by 74% in the past decade and the stock currently offers a yield of 3.9%. Income seekers will find what they are looking for with this company, as will those searching for stocks that can provide safety and consistency in the long run in this volatile environment.
A cheap growth stock that investors are underestimating
David Jagielski (Pfizer): Investors aren't pricing perfection into Pfizer's stock but instead are preparing for a lot of challenges and headwinds. The healthcare stock is trading at only 9 times its trailing earnings and has a forward earnings multiple of 10. The stock screams "bargain" but investors don't appear to be interested. That could be a huge mistake.
Pfizer is undoubtedly facing a tough road. It may lose up to $18 billion in revenue due to losses in exclusivity. COVID-19 vaccine revenue will also fall significantly now that the government is no longer buying and stockpiling doses.
Those are concerning headwinds, but they're not enough to make investors fear owning a piece of this hugely profitable business. Pfizer has been loading up on acquisitions while also developing its own pipeline of drugs. Among the most promising is its pending $43 billion deal for oncology company Seagen, which makes antibody-drug conjugates that target cancer cells. The transaction could unlock significant growth opportunities for Pfizer.
Internally, the company has 90 projects in its pipeline, including 23 that are in phase 3 trials.One promising oral drug in the pipeline is danuglipron, which has shown that it may be as effective for weight loss as Ozempic. Pfizer also recently obtained approval for blood cancer therapy Elrexfio, which, at its peak, may generate $4 billion in revenue. In total, CEO Albert Bourla says the company can add $25 billion to the top line by the end of the decade.
While investors appear to be focused on the near-term challenges, they are overlooking the many growth opportunities that are on the horizon for Pfizer. If investors were pricing in a more promising outlook, the stock could easily be trading at more than double its current valuation.
As a bonus, this is also a fantastic income stock to own as Pfizer's dividend yield is 4.8%. This looks to be one of the best healthcare stocks to buy right now.
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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 Gilead Sciences, 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. | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). A new era for a longtime winner Keith Speights (AbbVie): AbbVie's shares currently trade at a forward earnings multiple of only 13.8. Why such a discounted valuation for AbbVie? | A new era for a longtime winner Keith Speights (AbbVie): AbbVie's shares currently trade at a forward earnings multiple of only 13.8. Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). Why such a discounted valuation for AbbVie? | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). A new era for a longtime winner Keith Speights (AbbVie): AbbVie's shares currently trade at a forward earnings multiple of only 13.8. Why such a discounted valuation for AbbVie? | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). A new era for a longtime winner Keith Speights (AbbVie): AbbVie's shares currently trade at a forward earnings multiple of only 13.8. Why such a discounted valuation for AbbVie? |
22188.0 | 2023-09-21 00:00:00 UTC | Interesting ABBV Put And Call Options For November 3rd | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-november-3rd | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the November 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $152.50 strike price has a current bid of $3.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $152.50, but will also collect the premium, putting the cost basis of the shares at $148.75 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $153.56/share today.
Because the $152.50 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 2.46% return on the cash commitment, or 20.87% 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 $152.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $2.99. If an investor was to purchase shares of ABBV stock at the current price level of $153.56/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $155.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.88% if the stock gets called away at the November 3rd 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 $155.00 strike highlighted in red:
Considering the fact that the $155.00 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 1.95% boost of extra return to the investor, or 16.53% 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 $153.56) to be 22%. 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 $155.00 strike highlighted in red: Considering the fact that the $155.00 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 November 3rd expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 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 November 3rd expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $152.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $2.99. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 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 November 3rd expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 3rd 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 $155.00 strike highlighted in red: Considering the fact that the $155.00 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 November 3rd expiration. |
22189.0 | 2023-09-21 00:00:00 UTC | Only 7 Large-Cap Dividend Kings Yield Over 3%. Here's My Top Pick to Buy Now. | ABBV | https://www.nasdaq.com/articles/only-7-large-cap-dividend-kings-yield-over-3.-heres-my-top-pick-to-buy-now. | nan | nan | If you're an income investor, you may have heard tales of mighty companies that have raised their payouts no matter the economic cycle. Only 49 companies over the past 50 years have managed to accomplish this monumental feat. But the ancient lore can be misleading as far fewer companies have a high yield and a market capitalization above $10 billion.
Target (NYSE: TGT), Coca-Cola (NYSE: KO), Kimberly-Clark (NYSE: KMB), AbbVie (NYSE: ABBV), Altria (NYSE: MO), Stanley Black & Decker (NYSE: SWK), and 3M (NYSE: MMM) are the seven companies that stand alone on the throne of large-cap Dividend Kings with a yield over 3%. Here's why the distinction is important, and which of these seven Dividend Kings is the best buy now.
Image source: Getty Images.
A valuable starting point
Investors gravitate toward Dividend Kings for stability. Raising a dividend every year no matter what is a good initial screener because it implies a company is growing earnings, demonstrating capital discipline, and maintaining a strong balance sheet. Of course, deeper digging is needed to determine whether that's the case.
Not to pick on 3M too hard, but the company has been making minimal one-cent-per-share dividend raises over the past few years. And its balance sheet and earnings growth have deteriorated. So although it has raised its dividend for 65 consecutive years, it's going to have to turn its business around if it wants to raise its dividend for the next 65 years, too.
Many Dividend Kings are mid- or small-cap stocks. That isn't necessarily a bad thing. And there can be hidden value in an overlooked smaller company with a track record for raises. However, investors looking for a reliable passive-income source may prefer a large, industry-leading company.
The lesson here is that Dividend Kings have checked merely one box. And it takes a lot more than a 50-plus-year dividend increase streak to win the vote of confidence needed to buy and hold a company for an extended period.
Thinning the herd
The ideal Dividend King would be a company with a large market cap, high yield, wide moat, powerful brand, earnings growth, and a strong balance sheet -- and it should be a good overall value. That's a tall order. But rightfully so, as we aren't just settling for good. We want the best Dividend King.
AbbVie is up there with Procter & Gamble and Coca-Cola as one of the highest-market-cap Dividend Kings. The drugmaker has a wide moat, strong earnings growth, and a juicy 3.8% dividend yield. But it's not a cheap stock by any means. Still, some may argue it's the best Dividend King out there. And it would be hard to claim it's not at least in the top three.
AbbVie has better growth prospects and a higher yield than Coca-Cola or Kimberly-Clark, and it's only a little more expensive.
TGT PE Ratio data by YCharts
Tobacco titan Altria has a massive 8.8% dividend yield, but it could see negative future growth, given the bleak outlook of its industry. Stanley Black & Decker and 3M are a good value and have high yields. But these stocks are certainly in turnaround play mode as their earnings have been under pressure and both companies are undergoing massive restructurings.
So I'll give AbbVie the silver medal, but the gold has to go to Target.
In a league of its own
Target stock is down 53% from its all-time, and you could argue that the sell-off is warranted based on the short-term outlook. The retailer is vulnerable to rising interest rates, inflation, declines in consumer spending led by a pullback in discretionary goods, and the economic cycle.
The company had demonstrated earnings growth, but its profit margin has been under pressure as it reduced inventory through discount sales. However, Target's margin and earnings have recovered, and there's reason to believe the company is on track to fuel earnings growth for decades to come.
With a 16.4 price-to-earnings ratio, 3.6% dividend yield, powerful brand, a path toward earnings growth, and brutally negative near-term sentiment, Target has the perfect recipe for a Dividend King that's worth buying now.
One of the best ways to compound wealth over time in the stock market is to find quality companies and buy them when few others want to do so. That's what happened with big tech stocks such as Meta Platforms, Alphabet, and Amazon last year. All three are up massively this year. The same happened with oil and gas stocks in 2020. Since then, many top energy stocks are now at all-time highs.
A long-term potential winner for patient investors
I wouldn't expected a V-shaped recovery for Target stock. But given the long-term prospects and how bruised and battered the stock is today, it certainly stands out as a top-shelf buying opportunity for patient investors.
Even if the recovery takes longer than expected, Target's high yield provides a sizable incentive for investors to hold the stock and give Target the time it needs to restore its high margin.
Add it all up, and there's a lot to like about Target stock relative to other Dividend Kings, especially at its discounted price.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Target and has the following options: long November 2024 $130 calls on Target and short November 2024 $135 calls on Target. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Meta Platforms, and Target. The Motley Fool recommends 3M 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. | Target (NYSE: TGT), Coca-Cola (NYSE: KO), Kimberly-Clark (NYSE: KMB), AbbVie (NYSE: ABBV), Altria (NYSE: MO), Stanley Black & Decker (NYSE: SWK), and 3M (NYSE: MMM) are the seven companies that stand alone on the throne of large-cap Dividend Kings with a yield over 3%. AbbVie is up there with Procter & Gamble and Coca-Cola as one of the highest-market-cap Dividend Kings. AbbVie has better growth prospects and a higher yield than Coca-Cola or Kimberly-Clark, and it's only a little more expensive. | Target (NYSE: TGT), Coca-Cola (NYSE: KO), Kimberly-Clark (NYSE: KMB), AbbVie (NYSE: ABBV), Altria (NYSE: MO), Stanley Black & Decker (NYSE: SWK), and 3M (NYSE: MMM) are the seven companies that stand alone on the throne of large-cap Dividend Kings with a yield over 3%. AbbVie is up there with Procter & Gamble and Coca-Cola as one of the highest-market-cap Dividend Kings. AbbVie has better growth prospects and a higher yield than Coca-Cola or Kimberly-Clark, and it's only a little more expensive. | Target (NYSE: TGT), Coca-Cola (NYSE: KO), Kimberly-Clark (NYSE: KMB), AbbVie (NYSE: ABBV), Altria (NYSE: MO), Stanley Black & Decker (NYSE: SWK), and 3M (NYSE: MMM) are the seven companies that stand alone on the throne of large-cap Dividend Kings with a yield over 3%. AbbVie is up there with Procter & Gamble and Coca-Cola as one of the highest-market-cap Dividend Kings. AbbVie has better growth prospects and a higher yield than Coca-Cola or Kimberly-Clark, and it's only a little more expensive. | Target (NYSE: TGT), Coca-Cola (NYSE: KO), Kimberly-Clark (NYSE: KMB), AbbVie (NYSE: ABBV), Altria (NYSE: MO), Stanley Black & Decker (NYSE: SWK), and 3M (NYSE: MMM) are the seven companies that stand alone on the throne of large-cap Dividend Kings with a yield over 3%. AbbVie is up there with Procter & Gamble and Coca-Cola as one of the highest-market-cap Dividend Kings. AbbVie has better growth prospects and a higher yield than Coca-Cola or Kimberly-Clark, and it's only a little more expensive. |
22190.0 | 2023-09-20 00:00:00 UTC | Flee to Healthcare Stocks if Recession Rears its Head? | ABBV | https://www.nasdaq.com/articles/flee-to-healthcare-stocks-if-recession-rears-its-head | nan | nan | If you’re looking for a sector that’s on sale, look to healthcare. The Health Care Select Sector SPDR Fund (NYSEARCA: XLV) is down 2.50% in the past month, lagging the S&P 500.
The top components within the sector are Eli Lilly & Co. (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc. (NYSE: UNH), Merck & Co. Inc. (NYSE: MRK) and AbbVie Inc. (NYSE: ABBV).
None of those stocks are in crash-and-burn mode, but all are trading below their highs.
Healthcare stocks tend to outperform others during economic downturns or periods of sluggish activity for several reasons. That’s important, as many analysts are forecasting slower economic activity in the fourth quarter.
Demand for healthcare services remains relatively stable regardless of economic conditions, as people continue to require medical care.
Reliable Revenue Streams
Typically, people continue refilling prescriptions and receiving necessary treatments even when the economy slumps.
In addition, healthcare companies often produce essential items such as medications and medical devices, ensuring consistent revenue streams.
That means healthcare companies have some defensive qualities, making them attractive to investors seeking stability.
For example, in 2022, healthcare declined only 2%, holding up far better than most sectors, trailing only red-hot energy, dividend hero utilities and defensive safe haven consumer staples.
In addition to performing better during economic pullbacks, healthcare stocks also tend to do well when inflation eases, which analysts expect to happen in the coming months.
Low inflation typically translates to reduced price pressures on healthcare companies, meaning they can better manage their own expenses. This helps the companies maintain profitability and continue their dividend payments or even increase shareholder payouts.
Lagging Growth Sectors in 2023
So far in 2023, healthcare is lagging growth stock sectors, as technology stocks, consumer discretionary stocks and communications services stocks have notched rip-roaring returns.
You can use the healthcare ETF as a proxy for the sector when evaluating healthcare stocks’ potential. The Health Care Select Sector SPDR Fund chart shows you how the sector has essentially been treading water since early 2022, which accounts for those relatively small percentage declines.
The top-performing healthcare stock in the past three months is Eli Lilly, followed by Molina Healthcare Inc. (NYSE: MOH), Amgen Inc. (NASDAQ: AMGN), Catalent Inc. (NYSE: CLT) and AbbVie.
The healthcare sector ETF has a dividend yield of 1.6%, meaning price declines are partially offset by those shareholder payouts.
As a whole, healthcare, which includes sub-industries such as biotech and biomedicine, is on the cutting edge of technological advancement.
Smaller Healthcare Stocks: Risk and Return Equation
Many of those companies at the forefront of tech, such as CRISPR Therapeutics (NASDAQ: CRSP), are mid-caps or small-caps. That means they carry more risk, especially as many of those smaller company stocks get whipsawed due to clinical trial results or regulatory actions.
However, it’s exactly that level of risk that can create market-beating returns.
Even among some of the large-cap healthcare stocks, new products can catch on quickly and send shares into rally mode. For example, Novo Nordisk A/S (NYSE: NVO) and Eli Lilly advanced in recent months on strong sales of weight-loss drugs.
The industry is also reliant on constant growth. As existing treatments lose patent exclusivity, meaning they can be manufactured generically, pharmaceutical companies have to launch new products with robust revenue potential.
Fertile Ground for M&A Activity
The industry depends on merger and acquisition activity for that reason. Larger pharmaceutical companies frequently purchase small biotechs with a promising treatment, which benefits investors in the company being acquired.
For example, in March, Pfizer Inc. (NYSE: PFE) said it would acquire Seagen Inc. (NASDAQ: SGEN), a biotech that makes cancer treatments, for $43 billion. Assuming it gets the nod from regulators, it would be the largest biopharma deal in three years. It’s expected to close later this year or early next year.
Pfizer’s offer values Seagen shares at $229 apiece, a premium to where Seagen is currently trading.
While no sector is immune to sharp downturns, healthcare has some factors that make it more resilient than others when economic conditions change.
While it has elements of growth, as you can see by the rapid development of technologies in the biotech sector, it also has elements of an income-generating sector, as many long-established companies are dividend payers.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top components within the sector are Eli Lilly & Co. (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc. (NYSE: UNH), Merck & Co. Inc. (NYSE: MRK) and AbbVie Inc. (NYSE: ABBV). The top-performing healthcare stock in the past three months is Eli Lilly, followed by Molina Healthcare Inc. (NYSE: MOH), Amgen Inc. (NASDAQ: AMGN), Catalent Inc. (NYSE: CLT) and AbbVie. For example, in 2022, healthcare declined only 2%, holding up far better than most sectors, trailing only red-hot energy, dividend hero utilities and defensive safe haven consumer staples. | The top components within the sector are Eli Lilly & Co. (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc. (NYSE: UNH), Merck & Co. Inc. (NYSE: MRK) and AbbVie Inc. (NYSE: ABBV). The top-performing healthcare stock in the past three months is Eli Lilly, followed by Molina Healthcare Inc. (NYSE: MOH), Amgen Inc. (NASDAQ: AMGN), Catalent Inc. (NYSE: CLT) and AbbVie. The Health Care Select Sector SPDR Fund (NYSEARCA: XLV) is down 2.50% in the past month, lagging the S&P 500. | The top-performing healthcare stock in the past three months is Eli Lilly, followed by Molina Healthcare Inc. (NYSE: MOH), Amgen Inc. (NASDAQ: AMGN), Catalent Inc. (NYSE: CLT) and AbbVie. The top components within the sector are Eli Lilly & Co. (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc. (NYSE: UNH), Merck & Co. Inc. (NYSE: MRK) and AbbVie Inc. (NYSE: ABBV). Lagging Growth Sectors in 2023 So far in 2023, healthcare is lagging growth stock sectors, as technology stocks, consumer discretionary stocks and communications services stocks have notched rip-roaring returns. | The top components within the sector are Eli Lilly & Co. (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc. (NYSE: UNH), Merck & Co. Inc. (NYSE: MRK) and AbbVie Inc. (NYSE: ABBV). The top-performing healthcare stock in the past three months is Eli Lilly, followed by Molina Healthcare Inc. (NYSE: MOH), Amgen Inc. (NASDAQ: AMGN), Catalent Inc. (NYSE: CLT) and AbbVie. Lagging Growth Sectors in 2023 So far in 2023, healthcare is lagging growth stock sectors, as technology stocks, consumer discretionary stocks and communications services stocks have notched rip-roaring returns. |
22191.0 | 2023-09-20 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-9 | nan | nan | The WisdomTree U.S. High Dividend ETF (DHS) was launched on 06/16/2006, 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 Wisdomtree. It has amassed assets over $1.18 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 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.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 4.23%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 21.40% of the portfolio. Financials and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX).
The top 10 holdings account for about 40.02% 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 -3.88% so far this year and is up about 1.65% in the last one year (as of 09/20/2023). In the past 52-week period, it has traded between $75.81 and $89.39.
The ETF has a beta of 0.81 and standard deviation of 15.14% for the trailing three-year period, making it a medium risk choice in the space. With about 392 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend 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, DHS 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 iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.40 billion in assets, Vanguard Value ETF has $101.34 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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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WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
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Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
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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 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. The WisdomTree U.S. High Dividend ETF (DHS) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. 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. | 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 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Alternatives WisdomTree U.S. High Dividend 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, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). 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. |
22192.0 | 2023-09-19 00:00:00 UTC | The Top 7 Underrated Dividend Stocks Yielding 3% or More | ABBV | https://www.nasdaq.com/articles/the-top-7-underrated-dividend-stocks-yielding-3-or-more | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Looking for dividend stocks yielding 3% or more might seem pretty specific. Remember, though, the logic behind investing in underrated stocks is straightforward: Buy low and sell high in order to see a healthy return on your investment.
Making smart investments is sometimes as easy as that. Add in dividend income and the potential returns get even higher.
Investors have to discern what a healthy investment looks like. The higher a given dividend’s yield, the riskier the underlying asset. Generally speaking, yields between 2-5% are healthy.
Most of these firms are household names, and all are dividend stocks yielding 3% or more.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is a pharmaceutical stock that continues to face downward pressure that is undeserved.
That downward pressure is primarily a result of declining revenues from Humira, its leading drug.
The evidence suggests that concerns were overblown and that AbbVie is adeptly filling the void. Yet most investors remain on the fence. Their hesitation is your opportunity.
Humira is the anchor within AbbVie’s immunology portfolio and has been a blockbuster arthritis treatment for a long time. As it comes off patent in the U.S. and Europe sales are declining.
Other products, Skyrizi and Rinvoq, are quickly taking up the slack in AbbVie’s immunology portfolio. Each drug’s sales increased by more than 50% in the most recent quarter.
It’s patently clear that AbbVie’s sales reps are doing their jobs just fine. As a result, the company increased earnings guidance upward for the rest of the year. There’s still plenty of upside remaining besides the fact that ABBV shares yield 3.9%.
TotalEnergies (TTE)
Source: HJBC / Shutterstock.com
TotalEnergies (NYSE:TTE) is an oil stock that doesn’t get much attention stateside. The French firm is a considerable force in the energy industry. It employs more than 100,000 workers and reported more than a quarter of a trillion dollars in sales in 2022.
It’s also underrated currently. TTE shares have been trending upward since early July. Shares continued to trend upward through late July even as TotalEnergies reported declines of 28% in earnings in its Q2 release.
That said, the company did deliver $18 billion in cash flows in H1 and $8.5 billion in Q2 alone.
There’s certainly no shortage of money at the firm. It’s just that 2022 was such a bonanza that it’s proving difficult to match those results in 2023.
TotalEnergies continues to move forward with a sensible mix of energy development. The company is developing a mix of hydrogen and exploration in high-potential Suriname that have investors excited.
Unilever (UL)
Source: BYonkruud / Shutterstock.com
Unilever (NYSE:UL) is one of the most recognizable consumer packaged goods stocks globally.
It’s also a European firm and thus, receives a little bit less attention than some of its U.S. counterparts. Yet, CPG firms have been doing well on both sides of the pond.
They’ve been able to pass higher prices along to consumers who willingly pay. The result is booming business for Unilever.
Despite that fact, UL shares offer substantial upside. There’s more than 10% upside baked into target prices at the moment.
That alone is a strong return. Add in a dividend yielding 3.6% and the math becomes that much more compelling.
Unilever’s first half of 2023 has been impressive. Sales increased by 9.1% as the firm increased prices by 9.4% during the period. Again, consumers remain very willing to pay despite the rise in price. Inflation has not hurt Unilever. First half ‘23 net profits increased by more than 20%. It looks like a stable investment with a lot of upside overall.
Chevron (CVX)
Source: Denis Kuvaev / Shutterstock.com
Chevron (NYSE:CVX) stock is worth buying currently.
Gas prices are showing signs of rising, the company is cash-rich, and shares are near the low target price on Wall Street. All of those factors combine to make Chevron a fairly straightforward choice at the moment.
Gas prices have risen over the last week. That’s a positive sign for Chevron given that gas prices soften following Labor Day. The summer travel season is over, kids are back in school, and demand naturally falls.
The figures suggest prices are likely to continue to rise. Gasoline demand actually increased during the week following Labor Day while stock simultaneously fell. Oil prices are rising as well. That combination of factors makes it more and more likely that you and I will continue to see higher prices at the pump.
Hedge that with an investment in Chevron. The firm is already cash-rich and added to that stockpile even as 2023 earnings fell relative to those in 2022.
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
Pfizer (NYSE:PFE) is one of the most undervalued healthcare stocks and stocks. The pharmaceutical giant is oversold for an obvious reason: The Covid-19 hangover is real and the market has discounted PFE shares as a consequence.
That’s an opportunity because the market can and does exhibit irrationality that leads to an overselling of strong forms. In this case, Pfizer is that firm.
Investors are acting as if Pfizer’s declining sales are a surprise. They shouldn’t be. Pfizer’s sales eclipsed $100 billion in 2022 precisely because it won the race to vaccine commercialization.
The company reported approximately $40 billion in sales for each of the 3 years between 2018 to 2020. Then it went crazy in 2021 and 2022. It’ll probably fall to $65 billion by the end of 2023. Guess what? It has grown by more than 50% since 2020.
The company is reinvesting its Covid windfall into a massive new pipeline of drugs and product launches in the next year. Buy at today’s low prices, take the strong dividend income, and be patient in the interim. It’s almost certain to pay off handsomely.
Citigroup (C)
Source: shutterstock.com/CC7
While it’s certainly not a good time to be an employee at Citigroup (NYSE:C), it is a good time to invest. The stock is rising following a reorganization announcement intended to streamline operational reporting, remove layers of management, and increase profits.
The parent company’s five business lines will each report to CEO Jane Fraser directly. The company is also focusing on local operations while culling some operations internationally.
The news has been well-received by Wall Street. Further, it’s a positive for investors given that C shares have fallen so far in 2023. They’re set to rebound because of the news and include a dividend yielding nearly 5% as an incentive.
Citigroup is one of the largest banks in the U.S. and is thus relatively shielded from the chaos of early 2023. The company is addressing its issues, culling excess, and should emerge stronger.
Target (TGT)
Source: jejim / Shutterstock.com
Target (NYSE:TGT) hasn’t been a strong performer in 2023. The stock is very cheap because of that.
Investing because a company has fallen is often a dangerous proposition. After all, there’s a chance that such companies continue to fall, but hear me out here. I’ll outline the decline and then pivot into the reason that investors should be bullish, anyway.
Target’s sales were down in both H1 and Q2. The decline accelerated in Q2 as sales fell by almost 5% year-over-year. No matter how you look at it, declining sales are a negative.
However, there was some good in the earnings report. Management has not let slumping sales negatively affect earnings. In fact, earnings increased dramatically.
While that’s a reason for bullishness, it’s not the reason I want to highlight as a catalyst for investing in Target. Instead, it’s the defensive nature of Target in general. Investors are growing increasingly cautious.
Tech stocks are wavering and recession fears remain high. Investors are likely to pivot into defensive positions and that’s exactly what Target is and one of the primary reasons it’s set to rebound.
On the date of publication, Alex Sirois 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.
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) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical stock that continues to face downward pressure that is undeserved. The evidence suggests that concerns were overblown and that AbbVie is adeptly filling the void. Humira is the anchor within AbbVie’s immunology portfolio and has been a blockbuster arthritis treatment for a long time. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical stock that continues to face downward pressure that is undeserved. The evidence suggests that concerns were overblown and that AbbVie is adeptly filling the void. Humira is the anchor within AbbVie’s immunology portfolio and has been a blockbuster arthritis treatment for a long time. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical stock that continues to face downward pressure that is undeserved. The evidence suggests that concerns were overblown and that AbbVie is adeptly filling the void. Humira is the anchor within AbbVie’s immunology portfolio and has been a blockbuster arthritis treatment for a long time. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical stock that continues to face downward pressure that is undeserved. The evidence suggests that concerns were overblown and that AbbVie is adeptly filling the void. Humira is the anchor within AbbVie’s immunology portfolio and has been a blockbuster arthritis treatment for a long time. |
22193.0 | 2023-09-18 00:00:00 UTC | Should You Follow Warren Buffett's Lead and Sell HPQ Stock? | ABBV | https://www.nasdaq.com/articles/should-you-follow-warren-buffetts-lead-and-sell-hpq-stock | nan | nan | Berkshire Hathaway (BRK.B) - the conglomerate led by legendary value investor Warren Buffett - sold almost 5.5 million shares of HP (HPQ) last week. The announcement took the market by surprise, just as the initial news of Berkshire buying a stake in HP did last year.
Buffett has largely shied away from tech stocks - and while Apple (AAPL) is Berkshire’s biggest holding, the “Oracle of Omaha” considers it a consumer company rather than a tech company.
As for HP, the stock tumbled after Berkshire revealed in its filings that it had sold some shares. So, should you follow suit with Buffett and dump the stock?
HP Stock Falls after Berkshire Trims Stake
It is not unusual for stocks to drop when a major fund sells a stake, just as they tend to rise when a fund announces a new position - thereby affirming their faith in the company. HP, meanwhile, wasn’t a profitable position for Berkshire. The stock lost almost a fifth of its value between April 2022 when Berkshire revealed its position and the announcement of the partial stake sale last week.
While Buffett’s favorite holding period is officially “forever,” he has made quite a few exceptions to this rule. Before HP, Berkshire has sold stakes in tech companies like Oracle (ORCL) and pharma names like Pfizer (PFE), AbbVie (ABBV), Bristol-Myers Squibb (BMY), and Merck (MRK) quite quickly – and while a different investment manager at Berkshire might have made some of these decisions, Buffett himself certainly made the Oracle investment.
Berkshire is still the largest shareholder of HP despite last week's stake sale, but we can be reasonably sure that the conglomerate will continue to sell more shares, in the typical Buffett way. So, with Buffett’s company giving up on HP stock, should you also sell the shares - or is the personal computer (PC) giant a buy instead?
HP Stock Has Underperformed Markets
While we don’t typically associate “underperformance” with Buffett, who has a healthy track record of beating the S&P 500 Index ($SPX) over the long term, HP is among the names in Berkshire’s portfolio that have lagged the markets. After the recent sell-off, HP shares are up just about 4.7% for the year, while the SPX is up 16% over the period.
www.barchart.com
HP’s underperformance can be explained by both macro and company-specific factors. First, global PC sales have slumped over the last few quarters, and the industry is grappling with the worst slowdowns ever. Also, the printing industry is facing structural headwinds as demand continues to taper down.
The company's fiscal Q3 earnings were also disappointing, as HP missed revenue estimates while providing tepid guidance. Rival Dell (DELL), however, soared over 20% after its most recent earnings release, and had its best day since its 2018 relisting as it posted better-than-expected earnings.
HPQ Forecast
After HP’s earnings release, multiple brokerages - including Barclays, Citigroup, JPMorgan, and Bank of America - lowered the stock’s target price. Its mean target price of $29.05 is now only about 6% higher than the current price levels.
Overall, Wall Street is not too bullish on HPQ, and it has received a consensus rating of Hold from analysts. Of the 11 analysts that cover the shares, only 1 has rated them as a Strong Buy. Two rate it as a Strong Sell, while 1 rates it as a Moderate Buy, and 7 analysts rate the PC giant a Hold.
www.barchart.com
While Buffett’s views are often at odds with analysts, at least in HP’s case, they seem to be in consensus.
Why HP Stock Might Remain Weak in the Near Term
The PC industry’s slump might continue for some time. In its August report, IDC said that it expects PC sales to fall 13.7% YoY in 2023. Jitesh Ubrani, research manager for IDC Mobility and Consumer Device Trackers said, “Consumer demand for PCs also faces challenges from other devices including smartphones, consoles, tablets, and more, marking 2023 as the year with the greatest annual decline in consumer PC shipments since the category's inception.”
Also, with the global economy continuing to slow and discretionary consumer spending remaining tepid, the near-term outlook for PC stocks does not look very promising.
HPQ Might See Better Days in 2024
That said, HP stock might see better days in 2024 for the following reasons:
The PC market is expected to recover in 2024, with IDC forecasting a 3.7% YoY increase in shipments. We should start to see replacement demand for PCs bought between 2020 and 2021, which should help drive demand in the coming years.
The PC industry’s inventory overhang should also get better in the coming quarters, providing support for average selling prices (ASPs) - which have sagged in recent quarters.
HP is tightening its belt and is optimistic of delivering at least $560 million in structural annualized cost savings by the end of this year, and $1.4 billion by the end of the next fiscal year.
Structural cost savings and an expected rebound in PC sales should help HP’s business next year. Also, artificial intelligence (AI) could be a boon for PC sales in the coming years, as AI-enabled PCs could turbocharge the industry’s growth.
From a valuation perspective, HP stock trades at a next-12-month price-to-earnings multiple of 8.42x, which is below its historical averages. The dividend yield of 3.8% looks attractive, too, for investors looking for high-dividend paying stocks.
All said, I believe that while HP stock is currently out of favor with markets - and even Buffett’s company is giving up after the recent underperformance - the stock should see better days next year.
On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL . 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. | Before HP, Berkshire has sold stakes in tech companies like Oracle (ORCL) and pharma names like Pfizer (PFE), AbbVie (ABBV), Bristol-Myers Squibb (BMY), and Merck (MRK) quite quickly – and while a different investment manager at Berkshire might have made some of these decisions, Buffett himself certainly made the Oracle investment. Berkshire Hathaway (BRK.B) - the conglomerate led by legendary value investor Warren Buffett - sold almost 5.5 million shares of HP (HPQ) last week. Berkshire is still the largest shareholder of HP despite last week's stake sale, but we can be reasonably sure that the conglomerate will continue to sell more shares, in the typical Buffett way. | Before HP, Berkshire has sold stakes in tech companies like Oracle (ORCL) and pharma names like Pfizer (PFE), AbbVie (ABBV), Bristol-Myers Squibb (BMY), and Merck (MRK) quite quickly – and while a different investment manager at Berkshire might have made some of these decisions, Buffett himself certainly made the Oracle investment. Berkshire Hathaway (BRK.B) - the conglomerate led by legendary value investor Warren Buffett - sold almost 5.5 million shares of HP (HPQ) last week. HPQ Forecast After HP’s earnings release, multiple brokerages - including Barclays, Citigroup, JPMorgan, and Bank of America - lowered the stock’s target price. | Before HP, Berkshire has sold stakes in tech companies like Oracle (ORCL) and pharma names like Pfizer (PFE), AbbVie (ABBV), Bristol-Myers Squibb (BMY), and Merck (MRK) quite quickly – and while a different investment manager at Berkshire might have made some of these decisions, Buffett himself certainly made the Oracle investment. HP Stock Falls after Berkshire Trims Stake It is not unusual for stocks to drop when a major fund sells a stake, just as they tend to rise when a fund announces a new position - thereby affirming their faith in the company. HP Stock Has Underperformed Markets While we don’t typically associate “underperformance” with Buffett, who has a healthy track record of beating the S&P 500 Index ($SPX) over the long term, HP is among the names in Berkshire’s portfolio that have lagged the markets. | Before HP, Berkshire has sold stakes in tech companies like Oracle (ORCL) and pharma names like Pfizer (PFE), AbbVie (ABBV), Bristol-Myers Squibb (BMY), and Merck (MRK) quite quickly – and while a different investment manager at Berkshire might have made some of these decisions, Buffett himself certainly made the Oracle investment. So, with Buffett’s company giving up on HP stock, should you also sell the shares - or is the personal computer (PC) giant a buy instead? Structural cost savings and an expected rebound in PC sales should help HP’s business next year. |
22194.0 | 2023-09-18 00:00:00 UTC | AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outpaces-stock-market-gains%3A-what-you-should-know-5 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $153.94, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.07% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the drugmaker had gained 1.32% in the past month. In that same time, the Medical sector lost 1.58%, while the S&P 500 gained 0.38%.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. This would mark a year-over-year decline of 21.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.66 billion, down 7.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11 per share and revenue of $53.5 billion. These totals would mark changes of -20.12% and -7.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 13.83. For comparison, its industry has an average Forward P/E of 14.84, which means AbbVie is trading at a discount to the group.
Meanwhile, ABBV's PEG ratio is currently 2.77. 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. ABBV's industry had an average PEG ratio of 1.82 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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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. | In the latest trading session, AbbVie (ABBV) closed at $153.94, marking a +1.2% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | In the latest trading session, AbbVie (ABBV) closed at $153.94, marking a +1.2% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | In the latest trading session, AbbVie (ABBV) closed at $153.94, marking a +1.2% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | In the latest trading session, AbbVie (ABBV) closed at $153.94, marking a +1.2% move from the previous day. In that report, analysts expect AbbVie to post earnings of $2.87 per share. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. |
22195.0 | 2023-09-18 00:00:00 UTC | AbbVie Inc. (ABBV) is Attracting Investor Attention: Here is What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-attracting-investor-attention%3A-here-is-what-you-should-know-9 | 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.
Over the past month, shares of this drugmaker have returned +1.3%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.2%. The key question now is: What could be the stock's future direction?
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.
For the current quarter, AbbVie is expected to post earnings of $2.87 per share, indicating a change of -21.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $11 points to a change of -20.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.05 indicates a change of +0.4% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
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
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.
For AbbVie, the consensus sales estimate for the current quarter of $13.66 billion indicates a year-over-year change of -7.8%. For the current and next fiscal years, $53.5 billion and $53.49 billion estimates indicate -7.9% and 0% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.87 billion in the last reported quarter, representing a year-over-year change of -4.9%. EPS of $2.91 for the same period compares with $3.37 a year ago.
Compared to the Zacks Consensus Estimate of $13.52 billion, the reported revenues represent a surprise of +2.54%. The EPS surprise was +4.3%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty 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.
Bottom Line
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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As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
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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
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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. | Bottom Line 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. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.2%. | For the next fiscal year, the consensus earnings estimate of $11.05 indicates a change of +0.4% from what AbbVie is expected to report a year ago. Last Reported Results and Surprise History AbbVie reported revenues of $13.87 billion in the last reported quarter, representing a year-over-year change of -4.9%. AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.2%. For the current quarter, AbbVie is expected to post earnings of $2.87 per share, indicating a change of -21.6% from the year-ago quarter. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.2%. For the current quarter, AbbVie is expected to post earnings of $2.87 per share, indicating a change of -21.6% from the year-ago quarter. |
22196.0 | 2023-09-18 00:00:00 UTC | Allergan Aesthetics: Second Phase 3 Study With OnabotulinumtoxinA Meets Endpoints | ABBV | https://www.nasdaq.com/articles/allergan-aesthetics%3A-second-phase-3-study-with-onabotulinumtoxina-meets-endpoints | nan | nan | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), reported positive topline results from the second of three Phase 3 clinical studies evaluating onabotulinumtoxinA for the treatment of moderate to severe platysma prominence associated with platysma muscle activity. The company said all primary and secondary endpoints were met for second Phase 3 study and results were consistent with findings from first Phase 3 study.
"We are encouraged by these results, which demonstrated a significant reduction in the unwanted appearance of vertical band prominence on the neck and jawline," said Darin Messina, senior vice president, aesthetics R&D, AbbVie.
The company noted that a Phase 3 open-label extension study is ongoing, with results expected later in the current year. Allergan Aesthetics will include data from the full Phase 3 study program as part of an upcoming FDA regulatory submission expected near the end of the year.
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. | "We are encouraged by these results, which demonstrated a significant reduction in the unwanted appearance of vertical band prominence on the neck and jawline," said Darin Messina, senior vice president, aesthetics R&D, AbbVie. (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), reported positive topline results from the second of three Phase 3 clinical studies evaluating onabotulinumtoxinA for the treatment of moderate to severe platysma prominence associated with platysma muscle activity. The company noted that a Phase 3 open-label extension study is ongoing, with results expected later in the current year. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), reported positive topline results from the second of three Phase 3 clinical studies evaluating onabotulinumtoxinA for the treatment of moderate to severe platysma prominence associated with platysma muscle activity. "We are encouraged by these results, which demonstrated a significant reduction in the unwanted appearance of vertical band prominence on the neck and jawline," said Darin Messina, senior vice president, aesthetics R&D, AbbVie. The company said all primary and secondary endpoints were met for second Phase 3 study and results were consistent with findings from first Phase 3 study. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), reported positive topline results from the second of three Phase 3 clinical studies evaluating onabotulinumtoxinA for the treatment of moderate to severe platysma prominence associated with platysma muscle activity. "We are encouraged by these results, which demonstrated a significant reduction in the unwanted appearance of vertical band prominence on the neck and jawline," said Darin Messina, senior vice president, aesthetics R&D, AbbVie. The company said all primary and secondary endpoints were met for second Phase 3 study and results were consistent with findings from first Phase 3 study. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), reported positive topline results from the second of three Phase 3 clinical studies evaluating onabotulinumtoxinA for the treatment of moderate to severe platysma prominence associated with platysma muscle activity. "We are encouraged by these results, which demonstrated a significant reduction in the unwanted appearance of vertical band prominence on the neck and jawline," said Darin Messina, senior vice president, aesthetics R&D, AbbVie. The company said all primary and secondary endpoints were met for second Phase 3 study and results were consistent with findings from first Phase 3 study. |
22197.0 | 2023-09-17 00:00:00 UTC | Abbvie (ABBV) Declares $1.48 Dividend | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-declares-%241.48-dividend | nan | nan | Abbvie said on September 8, 2023 that its board of directors declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Previously, the company paid $1.48 per share.
Shares must be purchased before the ex-div date of October 12, 2023 to qualify for the dividend. Shareholders of record as of October 13, 2023 will receive the payment on November 15, 2023.
At the current share price of $152.12 / share, the stock's dividend yield is 3.89%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.75%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.76 (n=236).
The current dividend yield is 1.12 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.20. 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.
Read the Ultimate Guide to Dividend Harvesting.
The company's 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4348 funds or institutions reporting positions in Abbvie. This is a decrease of 169 owner(s) or 3.74% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.71%, a decrease of 15.57%. Total shares owned by institutions decreased in the last three months by 1.47% to 1,388,167K shares.
The put/call ratio of ABBV is 0.66, indicating a bullish outlook.
Analyst Price Forecast Suggests 13.41% Upside
As of August 31, 2023, the average one-year price target for Abbvie is 172.52. The forecasts range from a low of 136.35 to a high of $215.25. The average price target represents an increase of 13.41% from its latest reported closing price of 152.12.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, a decrease of 1.42%. The projected annual non-GAAP EPS is 11.88.
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 increased its portfolio allocation in ABBV by 488.88% 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.
Additional reading:
AbbVie Inc. Key Product Revenues Quarter Ended June 30, 2023 % Change vs. 2Q22 Net Revenues (in millions) Reported Operationala U.S. Int’l. Total U.S. Int'l. Total Int'l. Total NET REVENUES $10,720 $3,145 $13,865 (6.0)% (0.9)% (4.9)% 2.6% (4.2)% Immu
AbbVie Inc. Guidance Including the Impact of Acquired IPR&D and Milestones Expense
Form of AbbVie Inc. Performance-Vested Restricted Stock Unit Agreement*
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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's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Guidance Including the Impact of Acquired IPR&D and Milestones Expense Form of AbbVie Inc. Performance-Vested Restricted Stock Unit Agreement* Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds. Abbvie said on September 8, 2023 that its board of directors declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). | Abbvie said on September 8, 2023 that its board of directors declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). There are 4348 funds or institutions reporting positions in Abbvie. Average portfolio weight of all funds dedicated to ABBV is 0.71%, a decrease of 15.57%. | Abbvie said on September 8, 2023 that its board of directors declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). There are 4348 funds or institutions reporting positions in Abbvie. Average portfolio weight of all funds dedicated to ABBV is 0.71%, a decrease of 15.57%. | Abbvie said on September 8, 2023 that its board of directors declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). There are 4348 funds or institutions reporting positions in Abbvie. Average portfolio weight of all funds dedicated to ABBV is 0.71%, a decrease of 15.57%. |
22198.0 | 2023-09-15 00:00:00 UTC | US Chamber of Commerce urges judge to block Medicare drug pricing program | ABBV | https://www.nasdaq.com/articles/us-chamber-of-commerce-urges-judge-to-block-medicare-drug-pricing-program | nan | nan | By Nate Raymond
Sept 15 (Reuters) - A lawyer for the U.S. Chamber of Commerce on Friday urged a federal judge to block President Joe Biden's administration from implementing a new program that would let Medicare negotiate prices with pharmaceutical companies for selected costly drugs.
Jeffrey Bucholtz, the business group's attorney, told U.S. District Judge Michael Newman in Dayton, Ohio, that the program violated drugmakers' due process rights by giving the government the power to effectively dictate prices for their medicines.
"There is a very, very high risk, maybe a guarantee, but certainly a very, very high risk, that this regime will result in prices that are unfair," Bucholtz argued.
The program, which was established by Biden's signature Inflation Reduction Act, aims to save $25 billion annually by 2031 through price negotiations for the drugs most costly to Medicare, which mostly serves Americans aged 65 and older.
Americans pay more for prescription medicines than people in any other country.
Bucholtz urged Newman to block the program before Oct. 1, when the makers of the first 10 drugs picked by the U.S. Centers for Medicare and Medicaid Services for inclusion in the program must agree to start negotiations over prices.
Those drugs, announced on Aug. 29, include the blood thinners Eliquis from Bristol-Myers Squibb BMY.N and Pfizer PFE.N and Xarelto from Johnson & Johnson JNJ.N; Merck & Co's MRK.N diabetes drug Januvia; and AbbVie's ABBV.N leukemia treatment Imbruvica.
Pricing changes following negotiations on the 10 drugs would take effect in 2026.
Bucholtz argued the program effectively establishes "price controls" that will result in unfair rates that violate the due process clause of the U.S. Constitution's 5th Amendment.
Bucholtz said that far from establishing a real negotiation, the drugmakers either must agree to whatever the government deems to be the "maximum fair price" or face draconian penalties in the form of an excise tax of up to 1,900% of U.S. sales of the drug.
But lawyers with the U.S. Department of Justice said that the program was far from compulsory and said if the drugmakers did not like those two options, there was a third: Withdraw their voluntary participation in the Medicare and Medicaid programs.
"If they choose not to, that's their prerogative," said Justice Department attorney Brian Netter. "But under the system that has been devised by Congress, under decades of precedent, there is no judicial recourse at this juncture."
Justice Department attorney Stephen Pezzi also argued the Chamber of Commerce and affiliates failed to establish standing to challenge the program as it identified just one member, AbbVie, that would be affected by it.
While several other drugmakers including Chamber members have filed separate lawsuits challenging the program, Pezzi said AbbVie appeared to be litigating by "proxy."
Yet he said the AbbVie subsidiary that actually makes Imbruvica was not even a Chamber of Commerce member until months after the business group filed the lawsuit in June.
Newman, an appointee of former Republican President Donald Trump, said he was "very mindful of the time constraints" and hoped to rule "as quickly as we can."
The case is Dayton Area Chamber of Commerce et al v Becerra et al, U.S. District Court, Southern District of Ohio, No. 23-00156.
For the Chamber of Commerce: Jeffrey Bucholtz of King & Spalding
For the government: Alexander Sverdlov of the U.S. Department of Justice
Read more:
Drugmakers could find sympathetic US Supreme Court in drug pricing lawsuits
Blood thinners, diabetes meds among first 10 drugs for US price negotiations
US Chamber of Commerce sues over government's drug pricing power
(Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.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. | Those drugs, announced on Aug. 29, include the blood thinners Eliquis from Bristol-Myers Squibb BMY.N and Pfizer PFE.N and Xarelto from Johnson & Johnson JNJ.N; Merck & Co's MRK.N diabetes drug Januvia; and AbbVie's ABBV.N leukemia treatment Imbruvica. Justice Department attorney Stephen Pezzi also argued the Chamber of Commerce and affiliates failed to establish standing to challenge the program as it identified just one member, AbbVie, that would be affected by it. While several other drugmakers including Chamber members have filed separate lawsuits challenging the program, Pezzi said AbbVie appeared to be litigating by "proxy." | While several other drugmakers including Chamber members have filed separate lawsuits challenging the program, Pezzi said AbbVie appeared to be litigating by "proxy." Those drugs, announced on Aug. 29, include the blood thinners Eliquis from Bristol-Myers Squibb BMY.N and Pfizer PFE.N and Xarelto from Johnson & Johnson JNJ.N; Merck & Co's MRK.N diabetes drug Januvia; and AbbVie's ABBV.N leukemia treatment Imbruvica. Justice Department attorney Stephen Pezzi also argued the Chamber of Commerce and affiliates failed to establish standing to challenge the program as it identified just one member, AbbVie, that would be affected by it. | Those drugs, announced on Aug. 29, include the blood thinners Eliquis from Bristol-Myers Squibb BMY.N and Pfizer PFE.N and Xarelto from Johnson & Johnson JNJ.N; Merck & Co's MRK.N diabetes drug Januvia; and AbbVie's ABBV.N leukemia treatment Imbruvica. Justice Department attorney Stephen Pezzi also argued the Chamber of Commerce and affiliates failed to establish standing to challenge the program as it identified just one member, AbbVie, that would be affected by it. While several other drugmakers including Chamber members have filed separate lawsuits challenging the program, Pezzi said AbbVie appeared to be litigating by "proxy." | Justice Department attorney Stephen Pezzi also argued the Chamber of Commerce and affiliates failed to establish standing to challenge the program as it identified just one member, AbbVie, that would be affected by it. Those drugs, announced on Aug. 29, include the blood thinners Eliquis from Bristol-Myers Squibb BMY.N and Pfizer PFE.N and Xarelto from Johnson & Johnson JNJ.N; Merck & Co's MRK.N diabetes drug Januvia; and AbbVie's ABBV.N leukemia treatment Imbruvica. While several other drugmakers including Chamber members have filed separate lawsuits challenging the program, Pezzi said AbbVie appeared to be litigating by "proxy." |
22199.0 | 2023-09-15 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-8 | nan | nan | If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the SPDR S&P Dividend ETF (SDY), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $21.40 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 find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 2.62%.
Sector Exposure and Top Holdings
ETFs offer a 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.
This ETF has heaviest allocation to the Industrials sector--about 22% of the portfolio. Consumer Staples and Financials round out the top three.
Looking at individual holdings, 3m Co W/d (MMM) accounts for about 3% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV).
The top 10 holdings account for about 21.4% 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 -1.66% so far this year and is up about 1.41% in the last one year (as of 09/15/2023). In the past 52-week period, it has traded between $111.50 and $132.18.
The ETF has a beta of 0.86 and standard deviation of 16.45% 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SDY is a reasonable 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 iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.97 billion in assets, Vanguard Value ETF has $102.27 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
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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. | Looking at individual holdings, 3m Co W/d (MMM) accounts for about 3% 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. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the SPDR S&P Dividend ETF (SDY), a passively managed 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 3% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Costs When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal. | 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 3% of total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). Alternatives SPDR S&P Dividend 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, 3m Co W/d (MMM) accounts for about 3% 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. 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. |
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