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22200.0 | 2023-09-15 00:00:00 UTC | Sandoz dials up product launch plans ahead of market debut | ABBV | https://www.nasdaq.com/articles/sandoz-dials-up-product-launch-plans-ahead-of-market-debut | nan | nan | By Ludwig Burger and Paul Arnold
FRANKFURT, Sept 15 (Reuters) - Sandoz plans to launch at least five additional biologic drugs, its CEO Richard Saynor said, as the generics drugs business of Switzerland's Novartis NOVN.S works to enhance its investor appeal ahead of its market debut next month.
Its launch ambitions come as Novartis shareholders are widely expected to sign off on the Sandoz spin-off at an extraordinary general meeting on Friday.
Sandoz, whose first day of trading is scheduled for Oct. 4, has previously said its development pipeline has 25 future biosimilars, cheaper versions of off-patent biologic drugs made from modified living cells, five of which it aims to bring to market over the next two years.
"When I joined (in 2019), there were less than eight biologics in the pipeline. Today, there's 25. And that journey will continue. I'll be happier when it's over 30," Saynor told Reuters in an interview.
Sandoz is currently the world's second-largest maker of biosimilars behind Pfizer PFE.N. Saynor said dethroning the U.S. pharma giant, whose focus is on developing new drugs rather than copying others, is "very much" his goal.
Deutsche Bank estimates that Sandoz, which accounted for 11% of Novartis' group operating profit in 2022, is likely to have a market value of $11-$13 billion, with brokerage Berenberg expecting a $17-$26 billion valuation range.
Saynor said new biosimilar product launches in Europe and the United States, as blockbuster drugs lose patent protection, were key to reaching the company's growth and margin targets.
The existing production network and sales force can absorb foreseeable launches, resulting in sales growing much faster than costs, he added.
"Whatever we launch, it's accretive to our business," he said, adding that major takeover deals were not on his agenda.
Sandoz, which generated more than $9 billion in revenue last year, needs biosimilars to boost profitability, which has been weighed down by higher marketing expenses and cost inflation.
The more profitable biosimilars currently account for only about a fifth of sales. The rest of the business is dominated by conventional chemical drugs, which are under price pressure.
The Swiss company has said that adjusted core profit margins would likely be 18-19% this year, down from 21.3% in 2022, but it aims for margins to rebound to between 24% to 26% by 2028.
Sales should grow by a "mid-single digit" percentage over the period, it has said.
Among the biotech mega-sellers that Sandoz is seeking to copy are Biogen's BIIB.O multiple sclerosis drug Tysabri, AbbVie's ABBV.N rheumatoid arthritis drug Humira, Amgen's AMGN.O bone cancer drug Prolia, also known as Xgeva, and Bayer BAYGn.DE and Regeneron's REGN.O eye drug Eylea with more than $40 billion in annual sales between them.
But companies such as Amgen AMGN.O, Fresenius FREG.DE, Organon OGN.N, Teva TEVA.TA and unlisted Boehringer Ingelheim are also competing in the biosimilars market.
Sandoz, which will be included in Switzerland's mid-cap SMIM .SMIM index, said this week it plans to launch a generic version of Johnson & Johnson's JNJ.N anti-inflammatory drug Stelara.
(Reporting by Ludwig Burger and Paul Arnold; Editing by Alexander Smith)
((ludwig.burger@thomsonreuters.com; +49 30 220133634;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the biotech mega-sellers that Sandoz is seeking to copy are Biogen's BIIB.O multiple sclerosis drug Tysabri, AbbVie's ABBV.N rheumatoid arthritis drug Humira, Amgen's AMGN.O bone cancer drug Prolia, also known as Xgeva, and Bayer BAYGn.DE and Regeneron's REGN.O eye drug Eylea with more than $40 billion in annual sales between them. Sandoz, whose first day of trading is scheduled for Oct. 4, has previously said its development pipeline has 25 future biosimilars, cheaper versions of off-patent biologic drugs made from modified living cells, five of which it aims to bring to market over the next two years. Saynor said new biosimilar product launches in Europe and the United States, as blockbuster drugs lose patent protection, were key to reaching the company's growth and margin targets. | Among the biotech mega-sellers that Sandoz is seeking to copy are Biogen's BIIB.O multiple sclerosis drug Tysabri, AbbVie's ABBV.N rheumatoid arthritis drug Humira, Amgen's AMGN.O bone cancer drug Prolia, also known as Xgeva, and Bayer BAYGn.DE and Regeneron's REGN.O eye drug Eylea with more than $40 billion in annual sales between them. By Ludwig Burger and Paul Arnold FRANKFURT, Sept 15 (Reuters) - Sandoz plans to launch at least five additional biologic drugs, its CEO Richard Saynor said, as the generics drugs business of Switzerland's Novartis NOVN.S works to enhance its investor appeal ahead of its market debut next month. Sandoz, whose first day of trading is scheduled for Oct. 4, has previously said its development pipeline has 25 future biosimilars, cheaper versions of off-patent biologic drugs made from modified living cells, five of which it aims to bring to market over the next two years. | Among the biotech mega-sellers that Sandoz is seeking to copy are Biogen's BIIB.O multiple sclerosis drug Tysabri, AbbVie's ABBV.N rheumatoid arthritis drug Humira, Amgen's AMGN.O bone cancer drug Prolia, also known as Xgeva, and Bayer BAYGn.DE and Regeneron's REGN.O eye drug Eylea with more than $40 billion in annual sales between them. By Ludwig Burger and Paul Arnold FRANKFURT, Sept 15 (Reuters) - Sandoz plans to launch at least five additional biologic drugs, its CEO Richard Saynor said, as the generics drugs business of Switzerland's Novartis NOVN.S works to enhance its investor appeal ahead of its market debut next month. Sandoz, whose first day of trading is scheduled for Oct. 4, has previously said its development pipeline has 25 future biosimilars, cheaper versions of off-patent biologic drugs made from modified living cells, five of which it aims to bring to market over the next two years. | Among the biotech mega-sellers that Sandoz is seeking to copy are Biogen's BIIB.O multiple sclerosis drug Tysabri, AbbVie's ABBV.N rheumatoid arthritis drug Humira, Amgen's AMGN.O bone cancer drug Prolia, also known as Xgeva, and Bayer BAYGn.DE and Regeneron's REGN.O eye drug Eylea with more than $40 billion in annual sales between them. By Ludwig Burger and Paul Arnold FRANKFURT, Sept 15 (Reuters) - Sandoz plans to launch at least five additional biologic drugs, its CEO Richard Saynor said, as the generics drugs business of Switzerland's Novartis NOVN.S works to enhance its investor appeal ahead of its market debut next month. Deutsche Bank estimates that Sandoz, which accounted for 11% of Novartis' group operating profit in 2022, is likely to have a market value of $11-$13 billion, with brokerage Berenberg expecting a $17-$26 billion valuation range. |
22201.0 | 2023-09-15 00:00:00 UTC | Pharma Stock Roundup: FDA Nod to Updated PFE, MRNA COVID Jabs, & More | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-fda-nod-to-updated-pfe-mrna-covid-jabs-more | nan | nan | This week, the FDA approved and the U.S. Centers for Disease Control and Prevention (CDC) recommended the broad use of updated COVID-19 vaccines of Pfizer PFE/BioNTech and Moderna MRNA. Novo Nordisk’s NVO board of directors approved the previously announced two-for-one split of its shares and American Depositary Receipts (ADR). AbbVie’s ABBV Skyrizi met both primary endpoints in a head-to-head study in Crohn’s disease. AstraZeneca’s AZN Fasenra met the primary endpoint in a late-stage study evaluating it for a new indication, eosinophilic granulomatosis with polyangiitis (EGPA).
Recap of the Week’s Most Important Stories
FDA Authorizes Pfizer, Moderna’s Updated COVID Jabs: The FDA authorized updated mRNA-based COVID-19 vaccines of Pfizer/BioNTech and Moderna to provide protection from the currently circulating strains of the COVID-19 virus. Pre-clinical/clinical data from studies on Moderna and Pfizer’s updated mRNA vaccines have shown improved neutralizing antibody responses against multiple circulating Omicron-related sublineages, including XBB.1.5, BA.2.86 (also called Pirola) and EG.5.1 (also called Eris). Moderna and Pfizer’s updated mRNA vaccines are each approved for individuals 12 years of age and older and are authorized under emergency use for individuals 6 months through 11 years of age.
The CDC has also recommended for everyone 6 months and older to take the updated COVID shot. Pfizer and Moderna expect the vaccines to be launched in pharmacies, hospitals, and clinics across the United States this week. Americans who have health insurance will get this COVID-19 vaccine for free as most plans will cover the new vaccine.
Novo Nordisk Conducts 2:1 Stock Split: Novo Nordisk announced that its board of directors approved a two-for-one split of its shares (listed on Nasdaq Copenhagen) and ADRs (listed on NYSE). The stock split of Novo Nordisk B shares is effective from Sep 13, while that of ADRs will be effective on Sep 20. Therefore, the trading unit of the Novo Nordisk B shares listed on Nasdaq Copenhagen changed from DKK 0.20 to DKK 0.10. The ADRs will similarly be split. The stock split, announced in August along with the second quarter results, has been driven by the company’s success of obesity and diabetes drugs.
AstraZeneca’s EGPA Study on Fasenra Meets Goal: AstraZeneca’s asthma drug Fasenra met the primary endpoint in the phase III MANDARA study, evaluating it for treating EGPA. EGPA is a rare autoimmune disease that can cause damage to multiple organs and tissues. The MANDARA head-to-head study demonstrated non-inferior rates of remission of a single monthly injection of Fasenra to three injections per month of GSK’s Nucala (mepolizumab), which is the only current approved drug for EGPA. Fasenra is approved for treating severe eosinophilic asthma. Several label expansion studies are ongoing for Fasenra for eosinophil-driven diseases beyond severe asthma like nasal polyps, COPD, hypereosinophilic syndrome, bullous pemphigoid and others.
AbbVie’s Crohn’s Disease Head-To-Head Study on Skyrizi Meets Goals: AbbVie’s Skyrizi met both primary endpoints of non-inferiority for clinical remission (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remission at week 48 versus J&J’s Stelara in a head-to-head study. The phase III study called SEQUENCE compared Skyrizi to Stelara for the treatment of adult patients with moderately to severely active Crohn's disease who have failed one or more anti-TNF therapies. Statistical significance was also achieved for all the study’s secondary endpoints for the superiority of Skyrizi over Stelara.
The NYSE ARCA Pharmaceutical Index rose 1.58% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
In the last five trading sessions, all the stocks were in the green except Pfizer and AstraZeneca, with both declining 0.3%. AbbVie rose the most (up 3.3%),
Image Source: Zacks Investment Research
In the past six months, Lilly has risen the most (79.4%), while Pfizer has declined the most (15.1%).
(See the last pharma stock roundup here: J&J to End Hypertension Study & Other Regulatory Updates)
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. | AbbVie’s ABBV Skyrizi met both primary endpoints in a head-to-head study in Crohn’s disease. AbbVie’s Crohn’s Disease Head-To-Head Study on Skyrizi Meets Goals: AbbVie’s Skyrizi met both primary endpoints of non-inferiority for clinical remission (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remission at week 48 versus J&J’s Stelara in a head-to-head study. AbbVie rose the most (up 3.3%), | AbbVie’s Crohn’s Disease Head-To-Head Study on Skyrizi Meets Goals: AbbVie’s Skyrizi met both primary endpoints of non-inferiority for clinical remission (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remission at week 48 versus J&J’s Stelara in a head-to-head study. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie’s ABBV Skyrizi met both primary endpoints in a head-to-head study in Crohn’s disease. | AbbVie’s Crohn’s Disease Head-To-Head Study on Skyrizi Meets Goals: AbbVie’s Skyrizi met both primary endpoints of non-inferiority for clinical remission (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remission at week 48 versus J&J’s Stelara in a head-to-head study. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie’s ABBV Skyrizi met both primary endpoints in a head-to-head study in Crohn’s disease. | AbbVie’s Crohn’s Disease Head-To-Head Study on Skyrizi Meets Goals: AbbVie’s Skyrizi met both primary endpoints of non-inferiority for clinical remission (Crohn's Disease Activity Index [CDAI]) at week 24 and superiority of endoscopic remission at week 48 versus J&J’s Stelara in a head-to-head study. AbbVie’s ABBV Skyrizi met both primary endpoints in a head-to-head study in Crohn’s disease. AbbVie rose the most (up 3.3%), |
22202.0 | 2023-09-15 00:00:00 UTC | 2 Dividend Kings to Buy on the Dip and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-dividend-kings-to-buy-on-the-dip-and-hold-forever | nan | nan | The elite club of Dividend Kings arguably stands out as the market's most prestigious group of dividend payers. Companies must have raised their payouts for at least 50 consecutive years to join, a feat requiring an incredibly solid business. The strength of their underlying operations makes many Dividend Kings attractive beyond the consistent passive income they offer, even when they aren't performing particularly well.
Let's look at two Dividend Kings that are lagging the market this year but are still worth investing in for the long term: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV).
1. Abbott Laboratories
Medical devices expert Abbott Laboratories has delivered somewhat inconsistent financial results over the past three years. The pandemic initially harmed the company's business, and although it was able to keep its earnings afloat by marketing coronavirus diagnostic tests, sales of these products have been up and down. In the second quarter, Abbott's revenue declined by 11.4% to almost $10 billion.
The past few years aside, though, Abbott Laboratories has been delivering excellent results for a long time.
ABT Revenue (Quarterly) data by YCharts
The company owes it to an internal culture dedicated to innovation, its expertise in navigating the highly regulated healthcare industry, and a brand name that inspires confidence in the physicians and patients who use its products. These assets should continue to serve Abbott Labs well, as the company still has plenty of growth opportunities.
Perhaps the most important lies in diabetes care, where Abbott markets a leading continuous glucose monitoring (CGM) system franchise, the FreeStyle Libre. CGM devices help improve health outcomes for diabetes patients by allowing them to track their blood glucose levels throughout the day.
Abbott's diabetes care business has arguably been the single most consistent segment (and the most significant growth driver) in recent years, thanks to its FreeStyle Libre and the growing adoption of CGM. But the company's portfolio features many more products, from the MitraClip, which helps treat mitral regurgitation (a heart condition), to the newly approved leadless pacemaker (to help treat a slow heartbeat), the Aveir.
That's just the tip of the iceberg when looking at Abbott's vast portfolio of devices. Further, although Abbott's medical devices unit is the most promising, it has a diversified business that includes three other segments: nutrition, diagnostics, and established pharmaceuticals. The company's top line should bounce back once the effects of its coronavirus diagnostics business fade.
And in the long run, Abbott will most likely remain an innovator capable of growing its revenue and earnings at a good clip. Abbott Laboratories is currently on its 51st consecutive year of payout increases -- that's what makes it a Dividend King. The stock's yield of 2.03% isn't that high, but still beats the average of 1.54% for the S&P 500. And the dividend looks as secure as the rest of its business.
2. AbbVie
AbbVie used to be under the umbrella of Abbott Laboratories; it split into a stand-alone company in 2013. But because of its years spent as a division of the medical devices giant, AbbVie is also considered a Dividend King. So, officially, it has also raised its payouts for 51 consecutive years. In the 10 years since it separated from Abbott, some of AbbVie's most important metrics, including its dividends, have generally grown at a good clip.
ABBV Revenue (Quarterly) data by YCharts
But this year, the drugmaker lost U.S. patent exclusivity for what has been its biggest cash cow in this period: immunology drug Humira. Considering it hit peak annual sales of $21.2 billion last year, generic drug manufacturers naturally rushed to get a piece of this enormous pie. That's why AbbVie's top line and stock price are declining this year. The company's revenue in the second quarter dropped by almost 5% year over year to $13.9 billion.
Even so, AbbVie remains a solid pick for long-term investors. The company has several medicines that should eventually fill the gap Humira left, including its two other immunology blockbusters, Skyrizi and Rinvoq, migraine treatment Qulipta, and its Botox franchise. Those are among AbbVie's already approved products. The company's pipeline -- which features several dozen programs -- should lead to brand-new drugs.
That's what should matter most to investors, at least those looking for "forever" stocks: AbbVie's ability to develop new drugs is an essential skill for any pharmaceutical company that intends to last. So, while AbbVie's sales may be dropping right now as it works through this patent cliff, the company's prospects remain intact thanks to a deep pipeline and growing portfolio of approved medicines.
Meanwhile, the company's dividend yield currently tops 3.97% -- which is highly competitive. AbbVie won't stop rewarding investors with dividend increases anytime soon. And thanks to products that are essential to patients, AbbVie is an excellent pick for long-term-oriented investors looking for reliable income stocks.
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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 look at two Dividend Kings that are lagging the market this year but are still worth investing in for the long term: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie used to be under the umbrella of Abbott Laboratories; it split into a stand-alone company in 2013. But because of its years spent as a division of the medical devices giant, AbbVie is also considered a Dividend King. | Let's look at two Dividend Kings that are lagging the market this year but are still worth investing in for the long term: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie used to be under the umbrella of Abbott Laboratories; it split into a stand-alone company in 2013. But because of its years spent as a division of the medical devices giant, AbbVie is also considered a Dividend King. | Let's look at two Dividend Kings that are lagging the market this year but are still worth investing in for the long term: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie used to be under the umbrella of Abbott Laboratories; it split into a stand-alone company in 2013. But because of its years spent as a division of the medical devices giant, AbbVie is also considered a Dividend King. | Let's look at two Dividend Kings that are lagging the market this year but are still worth investing in for the long term: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie used to be under the umbrella of Abbott Laboratories; it split into a stand-alone company in 2013. But because of its years spent as a division of the medical devices giant, AbbVie is also considered a Dividend King. |
22203.0 | 2023-09-14 00:00:00 UTC | Health Care Sector Update for 09/14/2023: BIOL, CMND, OKYO, HARP, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-09-14-2023%3A-biol-cmnd-okyo-harp-abbv | nan | nan | Health care stocks were higher late Thursday afternoon with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.4%.
The iShares Biotechnology ETF (IBB) was climbing 0.6%.
In corporate news, Biolase (BIOL) shares slumped 40% after the company said late Wednesday it priced a $4.5 million underwritten public offering of series J convertible redeemable preferred stock and warrants.
Clearmind Medicine (CMND) stock tumbled 52% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million.
OKYO Pharma (OKYO) shares fell 11% after the company said Thursday it priced a best efforts registered direct offering of about 2.7 million shares at $1.50 apiece for expected gross proceeds of $4 million.
Harpoon Therapeutics (HARP) shares dropped 16% after the company said late Wednesday that AbbVie (ABBV) decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Harpoon Therapeutics (HARP) shares dropped 16% after the company said late Wednesday that AbbVie (ABBV) decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. In corporate news, Biolase (BIOL) shares slumped 40% after the company said late Wednesday it priced a $4.5 million underwritten public offering of series J convertible redeemable preferred stock and warrants. OKYO Pharma (OKYO) shares fell 11% after the company said Thursday it priced a best efforts registered direct offering of about 2.7 million shares at $1.50 apiece for expected gross proceeds of $4 million. | Harpoon Therapeutics (HARP) shares dropped 16% after the company said late Wednesday that AbbVie (ABBV) decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. In corporate news, Biolase (BIOL) shares slumped 40% after the company said late Wednesday it priced a $4.5 million underwritten public offering of series J convertible redeemable preferred stock and warrants. Clearmind Medicine (CMND) stock tumbled 52% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million. | Harpoon Therapeutics (HARP) shares dropped 16% after the company said late Wednesday that AbbVie (ABBV) decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. Clearmind Medicine (CMND) stock tumbled 52% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million. OKYO Pharma (OKYO) shares fell 11% after the company said Thursday it priced a best efforts registered direct offering of about 2.7 million shares at $1.50 apiece for expected gross proceeds of $4 million. | Harpoon Therapeutics (HARP) shares dropped 16% after the company said late Wednesday that AbbVie (ABBV) decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. Health care stocks were higher late Thursday afternoon with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.4%. The iShares Biotechnology ETF (IBB) was climbing 0.6%. |
22204.0 | 2023-09-14 00:00:00 UTC | Health Care Sector Update for 09/14/2023: CMND, OKYO, HARP, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-09-14-2023%3A-cmnd-okyo-harp-abbv | nan | nan | Health care stocks were higher Thursday afternoon with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.4%.
The iShares Biotechnology ETF (IBB) was climbing 0.6%.
In corporate news, Clearmind Medicine (CMND) stock slumped 56% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million.
OKYO Pharma (OKYO) shares fell nearly 12% after the company said Thursday it priced a best efforts registered direct offering of about 2.7 million shares at $1.50 apiece for expected gross proceeds of nearly $4 million.
Harpoon Therapeutics (HARP) shares tumbled 20% after the company said late Wednesday that AbbVie (ABBV) has decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Harpoon Therapeutics (HARP) shares tumbled 20% after the company said late Wednesday that AbbVie (ABBV) has decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. In corporate news, Clearmind Medicine (CMND) stock slumped 56% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million. OKYO Pharma (OKYO) shares fell nearly 12% after the company said Thursday it priced a best efforts registered direct offering of about 2.7 million shares at $1.50 apiece for expected gross proceeds of nearly $4 million. | Harpoon Therapeutics (HARP) shares tumbled 20% after the company said late Wednesday that AbbVie (ABBV) has decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. Health care stocks were higher Thursday afternoon with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.4%. In corporate news, Clearmind Medicine (CMND) stock slumped 56% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million. | Harpoon Therapeutics (HARP) shares tumbled 20% after the company said late Wednesday that AbbVie (ABBV) has decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. In corporate news, Clearmind Medicine (CMND) stock slumped 56% after the company said Thursday it priced its US-exclusive public offering consisting of 7.5 million shares and pre-funded warrants, as well as 7.5 million common warrants, with expected gross proceeds of $2.25 million. OKYO Pharma (OKYO) shares fell nearly 12% after the company said Thursday it priced a best efforts registered direct offering of about 2.7 million shares at $1.50 apiece for expected gross proceeds of nearly $4 million. | Harpoon Therapeutics (HARP) shares tumbled 20% after the company said late Wednesday that AbbVie (ABBV) has decided not to exercise its license option on Harpoon's HPN217 program targeting B cell maturation antigen. Health care stocks were higher Thursday afternoon with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.4%. The iShares Biotechnology ETF (IBB) was climbing 0.6%. |
22205.0 | 2023-09-14 00:00:00 UTC | Noteworthy ETF Outflows: XLV, MRK, ABBV, TMO | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlv-mrk-abbv-tmo | 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 $611.0 million dollar outflow -- that's a 1.5% decrease week over week (from 301,770,000 to 297,170,000). Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 2%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.4%. 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 $133.15. 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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Top Ten Hedge Funds Holding HYDW
WLDN Historical Stock Prices
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 Merck & Co Inc (Symbol: MRK) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 2%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.4%. 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 $611.0 million dollar outflow -- that's a 1.5% decrease week over week (from 301,770,000 to 297,170,000). 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 Merck & Co Inc (Symbol: MRK) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 2%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.4%. 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 $133.15. 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 XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 2%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.4%. 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 $611.0 million dollar outflow -- that's a 1.5% decrease week over week (from 301,770,000 to 297,170,000). 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 $133.15. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 2%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.4%. 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 $611.0 million dollar outflow -- that's a 1.5% decrease week over week (from 301,770,000 to 297,170,000). 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 $133.15. |
22206.0 | 2023-09-13 00:00:00 UTC | "Blockbuster Status": 3 Bios to Buy and Hold | ABBV | https://www.nasdaq.com/articles/blockbuster-status%3A-3-bios-to-buy-and-hold | nan | nan | Profitability in the Biotech Industry is Hard to Come By
The biotech sector is notorious for its sky-high research and development (R&D) costs, regulatory hurdles, and lengthy timelines to bring a drug or therapy to market. Many drugs fail clinical trials while biotech companies set others aside to focus on more encouraging opportunities. According to one study, for every 100 drugs that enter phase 1 trials, only 12 ultimately achieve phase lll (the final trial) approval. While the profitability of public biotech companies can vary significantly, most are unprofitable.
Unpredictability is a Challenge for Investors
For unsophisticated investors, investing in biotech stocks with little knowledge can be a quick way to lose money because:
· Binary Events: Bios often move 50% or more after an FDA decision. If an investor finds themselves on the wrong side of a decision, a massive gap down can devastate a portfolio.
· Volatility: Even when no FDA decisionlooms,biotech stocks can be volatile, illiquid, and challenging to trade.
· Lack of Profitability: Ultimately, stocks mirror their long-term fundamentals. Because most biotech stocks are unprofitable, they often underperform.
The Solution: Seek Biotech Firms Achieving “Blockbuster Status”
While many challenges exist for investors looking to profit off biotech stocks, they can be overcome. However, to do so, investors must identify biotech stocks that are profitable, liquid, and have achieved “blockbuster status.” Blockbuster status refers to the successful development and commercialization of a pharmaceutical product that generates annual sales exceeding $1 billion.
New blockbuster drugs offer investors something difficult to find in most biotech stocks: a long run way of profitability. Below are 3 examples:
Novo Nordisk’s (NVO) Ozempic is a medication used to treat type 2 diabetes when diet and exercise alone are insufficient. In other words, it’s the first mainstream, effective fat-loss pill. Just how popular is Ozempic? Novo Nordisk’s market cap has soared than $400 billion, which is greater than the annual GDP of its home country, Denmark! Meanwhile, EPS is set to grow from $4 to ~$8 by 2026 – massive for a company of this size.
Image Source: Zacks Investment Research
Eli Lilly (LLY), one of the world’s largest pharmaceutical companies, is launching two massive multi-billion-dollar drugs in 2023 – Donanemab (for Alzheimer’s disease) and Lebrikizumab (for eczema). Like NVO, Zacks Consensus Estimates suggest steady and consistent top and bottom-line growth in the coming quarters.
Image Source: Zacks Investment Research
AbbVie (ABBV) is launching Epcoritamab (for large B-cell lymphoma). ABBV has been a consistent winner since its inception.
Image Source: TradingView
Bottom Line
Regarding biotech investing, seek quality companies with deep liquidity, strong profitability, and long “runways.” Stocks like NVO, LLY, and ABBV allow investors to do just that.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: TradingView Bottom Line Regarding biotech investing, seek quality companies with deep liquidity, strong profitability, and long “runways.” Stocks like NVO, LLY, and ABBV allow investors to do just that. Image Source: Zacks Investment Research AbbVie (ABBV) is launching Epcoritamab (for large B-cell lymphoma). ABBV has been a consistent winner since its inception. | Image Source: TradingView Bottom Line Regarding biotech investing, seek quality companies with deep liquidity, strong profitability, and long “runways.” Stocks like NVO, LLY, and ABBV allow investors to do just that. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research AbbVie (ABBV) is launching Epcoritamab (for large B-cell lymphoma). | Image Source: TradingView Bottom Line Regarding biotech investing, seek quality companies with deep liquidity, strong profitability, and long “runways.” Stocks like NVO, LLY, and ABBV allow investors to do just that. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research AbbVie (ABBV) is launching Epcoritamab (for large B-cell lymphoma). | Image Source: TradingView Bottom Line Regarding biotech investing, seek quality companies with deep liquidity, strong profitability, and long “runways.” Stocks like NVO, LLY, and ABBV allow investors to do just that. Image Source: Zacks Investment Research AbbVie (ABBV) is launching Epcoritamab (for large B-cell lymphoma). ABBV has been a consistent winner since its inception. |
22207.0 | 2023-09-13 00:00:00 UTC | ABBV Crosses Above Key Moving Average Level | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-key-moving-average-level | nan | nan | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $150.27, changing hands as high as $152.40 per share. AbbVie Inc shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $130.9601 per share, with $168.11 as the 52 week high point — that compares with a last trade of $151.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
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Institutional Holders of GRWG
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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 trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $150.27, changing hands as high as $152.40 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $130.9601 per share, with $168.11 as the 52 week high point — that compares with a last trade of $151.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: TAL Split History Institutional Holders of GRWG Institutional Holders of VRDN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $150.27, changing hands as high as $152.40 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $130.9601 per share, with $168.11 as the 52 week high point — that compares with a last trade of $151.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: TAL Split History Institutional Holders of GRWG Institutional Holders of VRDN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $150.27, changing hands as high as $152.40 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $130.9601 per share, with $168.11 as the 52 week high point — that compares with a last trade of $151.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: TAL Split History Institutional Holders of GRWG Institutional Holders of VRDN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $150.27, changing hands as high as $152.40 per share. AbbVie Inc shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $130.9601 per share, with $168.11 as the 52 week high point — that compares with a last trade of $151.16. |
22208.0 | 2023-09-13 00:00:00 UTC | 2 Undervalued Dividend Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/2-undervalued-dividend-stocks-to-buy-now | nan | nan | If you're looking for dividend stocks that offer both attractive yields and strong growth prospects, you might want to consider AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Both of these healthcare giants have impressive track records of rewarding shareholders with consistent dividend payments and increases, as well as robust pipelines of innovative drugs that could drive future earnings growth. Equally as important, both stocks trade at a substantial discount relative to their pharmaceutical peer group.
Here's why AbbVie and Bristol Myers Squibb screen as two undervalued dividend stocks to buy now.
Image Source: Getty Images.
AbbVie: A diversified biopharma powerhouse
AbbVie is the fifth largest biopharma by market capitalization. Although the company is best known for its immunology franchise, spearheaded by the multi-indication juggernaut Humira, AbbVie also sports top-shelf products in several other high-growth areas such as oncology, neuroscience, eye care, virology, and aesthetics. To wit, AbbVie is home to a number of blockbuster drugs like medical aesthetics therapy Botox and blood cancer treatment Imbruvica.
On the dividend side of the ledger, the drugmaker is beloved by income investors for both its lengthy track record of dividend increases and its above-average yield. Speaking to the first point, AbbVie has raised its dividend for an impressive 51 consecutive years, landing it on the esteemed Dividend King list. In yield terms, AbbVie's annualized payout presently stands at approximately 4%, which is among the highest yields within its large-cap biopharma peer group.
AbbVie stock does have some important risk factors to consider, however. Most importantly, the company's flagship drug Humira lost patent protection inside the U.S. this year and it has been facing biosimilar competition in Europe since 2018. Most of the downside risk emanating from this key patent expiry, though, might be already baked into the drugmaker's stock price. AbbVie's shares, after all, trade at an attractive 13.6 times projected earnings. By comparison, the average forward-looking price-to-earnings ratio within its peer group is 15.1 at the time of this writing.
Bristol Myers Squibb: A leader in oncology and immunology
Bristol Myers Squibb, or BMS for short, is another biopharmaceutical giant that specializes in developing and marketing treatments for cancer, cardiovascular diseases, immunological disorders, and fibrosis. The company has a portfolio of blockbuster drugs that generate billions of dollars in annual sales, such as lood thinner Eliquis, immunotherapy Opdivo, and rheumatoid arthritis drug Orencia.
BMS has paid a dividend for 91 straight years, it has raised its payout for 14 consecutive years, and it offers an extremely generous yield of 3.75% at current levels. The company's reasonable 59.8% trailing payout ratio implies that it can comfortably support additional hikes to the dividend. Equally as important, BMS stock is also attractively priced relative to its peers, with the drugmaker's shares trading at only 7.7 times forward earnings.
All told, BMS stock offers an attractive dividend yield at a bargain basement price. Now, the international pharma giant is facing some major patent expires in the years ahead, but its broad clinical pipeline and external investments in innovation should allow it to keep posting respectable levels of top- and bottom-line growth in the back half of the decade.
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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. | Although the company is best known for its immunology franchise, spearheaded by the multi-indication juggernaut Humira, AbbVie also sports top-shelf products in several other high-growth areas such as oncology, neuroscience, eye care, virology, and aesthetics. If you're looking for dividend stocks that offer both attractive yields and strong growth prospects, you might want to consider AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Here's why AbbVie and Bristol Myers Squibb screen as two undervalued dividend stocks to buy now. | If you're looking for dividend stocks that offer both attractive yields and strong growth prospects, you might want to consider AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Here's why AbbVie and Bristol Myers Squibb screen as two undervalued dividend stocks to buy now. AbbVie: A diversified biopharma powerhouse AbbVie is the fifth largest biopharma by market capitalization. | If you're looking for dividend stocks that offer both attractive yields and strong growth prospects, you might want to consider AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Here's why AbbVie and Bristol Myers Squibb screen as two undervalued dividend stocks to buy now. AbbVie: A diversified biopharma powerhouse AbbVie is the fifth largest biopharma by market capitalization. | If you're looking for dividend stocks that offer both attractive yields and strong growth prospects, you might want to consider AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Here's why AbbVie and Bristol Myers Squibb screen as two undervalued dividend stocks to buy now. AbbVie: A diversified biopharma powerhouse AbbVie is the fifth largest biopharma by market capitalization. |
22209.0 | 2023-09-13 00:00:00 UTC | AbbVie's (ABBV) Skyrizi Crohn's Disease Study Meets Goals | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-skyrizi-crohns-disease-study-meets-goals | nan | nan | AbbVie ABBV announced that its key drug, Skyrizi (risankizumab) met all primary and secondary endpoints of a head-to-head phase III study comparing the drug against J&J’s JNJ blockbuster medicine, Stelara (ustekinumab) in Crohn’s disease.
The phase III study called SEQUENCE compared Skyrizi to J&J’s Stelara for the treatment of adult patients with moderately to severely active Crohn's disease who have failed one or more anti-TNF therapies.
The first primary endpoint was non-inferiority for clinical remission (Crohn's Disease Activity Index [CDAI]) at week 24. The remission rates were 59% in the Skyrizi arm and 40% in the Stelara arm, thereby showing the non-inferiority of Skyrizi versus Stelara.
The second primary endpoint was the superiority of endoscopic remission at week 48. The remission rates were 32% in the Skyrizi arm and 16% in the Stelara arm, demonstrating superiority.
Statistical significance was also achieved for all of the study’s secondary endpoints for superiority of Skyrizi over Stelara.
Skyrizi, an interleukin-23 (IL-23) inhibitor, is presently approved in several countries, including the United States and Europe, for treating moderate-to-severe Crohn's disease, active psoriatic arthritis and moderate-to-severe psoriasis. While Skyrizi is already approved for Crohn's disease, the data from the head-to-head study shows that Skyrizi can also be an effective medicine to treat the disease and help eligible patients achieve clinical and endoscopic treatment goals.
Year to date, AbbVie’s shares have lost 7.6% against the industry’s 9.1% rise.
Image Source: Zacks Investment Research
Skyrizi recorded sales of $2.77 billion in the first half of 2023, up 49% year over year on an operational basis. Skyrizi and AbbVie’s other newer inflammatory drug, Rinvoq are performing extremely well, bolstered by approvals in new indications. Both have the potential to drive the top line to make up for lost Humira revenues.
AbbVie’s key blockbuster immunology medicine, Humira lost patent protection in the United States in 2023.InJanuary, Amgen AMGN launched the first Humira biosimilar in the United States called Amjevita. After Amgen, several other companies like Boehringer Ingelheim, Coherus BioSciences and Novartis NVS also launched their own Humira biosimilars. Novartis, through its generic division, Sandoz, markets its Humira biosimilar under the trade name Hyrimoz. Humira biosimilars were launched in the EU in October 2018. These biosimilars have been eroding international sales from the branded drug since 2019.
Skyrizi and Rinvoq recorded $4.85 billion in AbbVie’s combined sales in the first half of 2023.
AbbVie launched Skyrizi and Rinvoq across Humira's major indications, plus a distinct new indication, atopic dermatitis. With approvals for many new indications, sales of these drugs could be higher in future quarters, thus supporting top-line growth. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027.
AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim, with AbbVie leading the global development and commercialization of Skyrizi.
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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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 its key drug, Skyrizi (risankizumab) met all primary and secondary endpoints of a head-to-head phase III study comparing the drug against J&J’s JNJ blockbuster medicine, Stelara (ustekinumab) in Crohn’s disease. Year to date, AbbVie’s shares have lost 7.6% against the industry’s 9.1% rise. Skyrizi and AbbVie’s other newer inflammatory drug, Rinvoq are performing extremely well, bolstered by approvals in new indications. | AbbVie ABBV announced that its key drug, Skyrizi (risankizumab) met all primary and secondary endpoints of a head-to-head phase III study comparing the drug against J&J’s JNJ blockbuster medicine, Stelara (ustekinumab) in Crohn’s disease. AbbVie’s key blockbuster immunology medicine, Humira lost patent protection in the United States in 2023.InJanuary, Amgen AMGN launched the first Humira biosimilar in the United States called Amjevita. Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : 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 announced that its key drug, Skyrizi (risankizumab) met all primary and secondary endpoints of a head-to-head phase III study comparing the drug against J&J’s JNJ blockbuster medicine, Stelara (ustekinumab) in Crohn’s disease. AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote 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. Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : 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 announced that its key drug, Skyrizi (risankizumab) met all primary and secondary endpoints of a head-to-head phase III study comparing the drug against J&J’s JNJ blockbuster medicine, Stelara (ustekinumab) in Crohn’s disease. Year to date, AbbVie’s shares have lost 7.6% against the industry’s 9.1% rise. Skyrizi and AbbVie’s other newer inflammatory drug, Rinvoq are performing extremely well, bolstered by approvals in new indications. |
22210.0 | 2023-09-12 00:00:00 UTC | Notable Tuesday Option Activity: BAC, ABBV, NOW | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-bac-abbv-now | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Bank of America Corp (Symbol: BAC), where a total of 196,851 contracts have traded so far, representing approximately 19.7 million underlying shares. That amounts to about 53.1% of BAC's average daily trading volume over the past month of 37.1 million shares. Especially high volume was seen for the $31 strike call option expiring December 15, 2023, with 27,306 contracts trading so far today, representing approximately 2.7 million underlying shares of BAC. Below is a chart showing BAC's trailing twelve month trading history, with the $31 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) saw options trading volume of 17,894 contracts, representing approximately 1.8 million underlying shares or approximately 46.3% of ABBV's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $155 strike call option expiring October 20, 2023, with 5,574 contracts trading so far today, representing approximately 557,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange:
And ServiceNow Inc (Symbol: NOW) options are showing a volume of 3,917 contracts thus far today. That number of contracts represents approximately 391,700 underlying shares, working out to a sizeable 45.3% of NOW's average daily trading volume over the past month, of 864,380 shares. Especially high volume was seen for the $600 strike call option expiring September 15, 2023, with 287 contracts trading so far today, representing approximately 28,700 underlying shares of NOW. Below is a chart showing NOW's trailing twelve month trading history, with the $600 strike highlighted in orange:
For the various different available expirations for BAC options, ABBV options, or NOW options, visit StockOptionsChannel.com.
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ETFs Holding EW
GNPX 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. | Particularly high volume was seen for the $155 strike call option expiring October 20, 2023, with 5,574 contracts trading so far today, representing approximately 557,400 underlying shares of ABBV. Below is a chart showing BAC's trailing twelve month trading history, with the $31 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 17,894 contracts, representing approximately 1.8 million underlying shares or approximately 46.3% of ABBV's average daily trading volume over the past month, of 3.9 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And ServiceNow Inc (Symbol: NOW) options are showing a volume of 3,917 contracts thus far today. | Below is a chart showing BAC's trailing twelve month trading history, with the $31 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 17,894 contracts, representing approximately 1.8 million underlying shares or approximately 46.3% of ABBV's average daily trading volume over the past month, of 3.9 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And ServiceNow Inc (Symbol: NOW) options are showing a volume of 3,917 contracts thus far today. Particularly high volume was seen for the $155 strike call option expiring October 20, 2023, with 5,574 contracts trading so far today, representing approximately 557,400 underlying shares of ABBV. | Below is a chart showing BAC's trailing twelve month trading history, with the $31 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 17,894 contracts, representing approximately 1.8 million underlying shares or approximately 46.3% of ABBV's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $155 strike call option expiring October 20, 2023, with 5,574 contracts trading so far today, representing approximately 557,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And ServiceNow Inc (Symbol: NOW) options are showing a volume of 3,917 contracts thus far today. | Below is a chart showing BAC's trailing twelve month trading history, with the $31 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 17,894 contracts, representing approximately 1.8 million underlying shares or approximately 46.3% of ABBV's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $155 strike call option expiring October 20, 2023, with 5,574 contracts trading so far today, representing approximately 557,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And ServiceNow Inc (Symbol: NOW) options are showing a volume of 3,917 contracts thus far today. |
22211.0 | 2023-09-12 00:00:00 UTC | Is AbbVie (ABBV) a Buy as Wall Street Analysts Look Optimistic? | ABBV | https://www.nasdaq.com/articles/is-abbvie-abbv-a-buy-as-wall-street-analysts-look-optimistic | nan | nan | Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV).
AbbVie currently has an average brokerage recommendation (ABR) of 1.97, 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>>>
The ABR suggests buying AbbVie, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
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.
ABR Should Not Be Confused With Zacks Rank
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.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
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.
Should You Invest in ABBV?
In terms of 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. | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). AbbVie currently has an average brokerage recommendation (ABR) of 1.97, 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.) Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). Brokerage Recommendation Trends for ABBV | AbbVie currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). Brokerage Recommendation Trends for ABBV | Brokerage Recommendation Trends for ABBV Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AbbVie (ABBV). AbbVie currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) |
22212.0 | 2023-09-12 00:00:00 UTC | This Proven 200% Dividend Growth Strategy Is a Peter Lynch Favorite | ABBV | https://www.nasdaq.com/articles/this-proven-200-dividend-growth-strategy-is-a-peter-lynch-favorite | nan | nan | Let's dive into this Johnson & Johnson (JNJ) spinoff--because it shows exactly how we can tap "splits" like these to grab not one but TWO income streams growing 200%+.
Because if there's one thing we need to know about spinoffs, it's this: they're about the closest thing to a free lunch you'll find in investing. Just ask Peter Lynch, who guided his Magellan Fund to an astounding 29.2% annualized return from 1977 to 1990. His take on spinoffs, in his 1989 investing masterclass One Up on Wall Street, was simple:
"Spinoffs of divisions or parts of companies into separate, freestanding entities ... often result in astoundingly lucrative investments."
Okay, I'll admit--I threw the italics on those last three words, but only because Lynch is right on the money here. Truth is, spinoffs pay off for folks who own both the parent and the "new" firm. And they can pay off double for dividend investors, as we'll see next.
JNJ Split Will Drive Payout Growth
Let's round back on JNJ's spinoff of Kenvue (KVUE), which till recently was its consumer-products division. On July 20, Kenvue announced its first quarterly dividend post-spin: $0.20 a share, for a current annualized yield of 3.5%.
Not bad! That's more than double what the typical S&P 500 stock pays.
As this is a spinoff, you might expect JNJ to drop its payout by $0.20 to compensate, but nope: JNJ will keep its payout at $1.19 quarterly and said it expects faster sales growth post-spinoff, and faster growth in earnings per share, too.
That's another happy knock-on effect of spinoffs: with fewer products to focus on, management can better focus its energy. Moreover, as JNJ offered to exchange its shares for shares of the new firm under the spinoff, the resulting drop in the share count cuts JNJ's shares outstanding.
Kenvue Spinoff Slashed JNJ's Share Count
This works like a share buyback, and we've spoken before about how buybacks increase earnings per share, due to the lower share count, which can boost share prices (this effect is already helping minimize the loss of Kenvue on JNJ's EPS).
Throw in the fact that JNJ's share price has lagged its dividend in recent months and you've got another upside indicator, as its "Dividend Magnet" goes to work:
JNJ's Dividend Lags Its Price Growth (for Now)
The bottom line? We'd likely do just fine picking up this duo. But we'd do even better grabbing spinoffs with payouts growing even faster than JNJ's, as we'll see next.
JNJ/Kenvue "Prequel" Shows How to Tap Spinoffs for Max Gains, Divs
To see what I'm getting at, consider the split of medical-equipment maker Abbott Labs (ABT) from pharmaceutical firm AbbVie (ABBV), which occurred back in 2013. That's a long enough timeframe for us to see the full effect of the breakup.
Let's start before that split: below we can see that the dividend of the parent company, Abbott, more than doubled in the 10 years prior to the split. That's much faster than JNJ's payout has grown in the last 10:
Abbott's Pre-Spin Dividend-Growth Outraces JNJ's
On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly.
Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott.
It got better because the spinoff ignited the payout, with both firms' dividends surging 244% on average, more than double the rate Abbott's grew in the preceding decade.
Spinoff Was a "Dividend Igniter" for AbbVie and Abbott
And if Abbott investors held on to their AbbVie shares, their holdings skyrocketed as other income-seekers noticed these hikes and bought in, driving up the prices of both companies in lockstep with their rising payouts:
... And Lit Up Their Share Prices, Too!
Spinoffs and Surging Payouts Tilt the Odds in Our Favor
You can likely see where I'm headed here: buying stocks that are about to split and have payouts that are not only growing but accelerating is the key to unlocking big profits.
The best news is that, to tap the biggest gains, you don't have to be clairvoyant: even if you'd bought Abbott and/or AbbVie during the first few months after their separation, you'd have still bagged most of the gains both stocks went on to deliver.
That's because new spinoffs tend to stagnate for the first while as investors who were handed them decide whether they want to hold on. That lag is also dragged out by the lack of coverage of "boring" spinoffs on Wall Street, which gets more worked up about IPOs and the trend du jour, like crypto, electric cars, AI or whatever.
How to Spot a Spinoff Before It's Announced
Pretty well all spinoffs have one thing in common: they come from companies that have one or more divisions whose products don't overlap with one another. You can see this with JNJ and Kenvue, as well as with Abbott and AbbVie.
Companies that conduct spinoffs also tend to grow by acquisition, as was the case with information-technology manager Synnex (SNX), whose payout had tripled in the five years before we bought it in my Hidden Yields dividend-growth service in October 2019.
We did so because this stock was trading "too cheaply" after acquiring customer-service consultant Convergys. The resulting higher debt had spooked Mr. Market, but we anticipated that SNX, which has made 24 acquisitions in its 43-year history, would have no problem paying down the credit.
The result? We went on to enjoy 83% total returns from the stock in two years before selling in October 2022:
Our "Parent Company" Buy Soared 83% (and It Was Just the Start)
It gets better: smack in the middle of our holding period, Synnex spun out Concentrix Corp. (CNXC), which provides customer-service solutions and works with many of America's top tech firms. We were "handed" the shares in December 2020, and a little over a year later, on December 17, 2021, we sold CNXC for a 111% total return.
So we once again proved Lynch's point here, with payout growth assisting on our spinoff gains.
Spinoff Strategy Step 1: Find the Dividend Magnet
Spinoffs are a proven way to profit, especially--as we just saw--if their payouts are surging and their share counts are dropping. But it's not easy to find these "Peter Lynch-style" winners on your own.
That's why I'm inviting you to road test Hidden Yields for 60 days risk-free. In Hidden Yields, we zero in on the fastest-growing payouts (which, in turn, drive the fastest-growing share prices) to book big gains, as we did with Synnex and Concentrix.
These shareholder-friendly stocks are the ones most likely to spin off businesses as they look to unlock more value for investors. So simply by zeroing in on dividend growth and buybacks, we're naturally giving ourselves a shot at "bonus" upside through spinoffs.
Here's how you can take advantage: Click here and I'll tell you more about my Dividend Magnet strategy and give you the opportunity to download a free Special Report naming 5 of my top dividend-growth picks. Along with that breakthrough report, you'll also be able to kick-start your 60-day trial to Hidden Yields. I urge you not to miss this opportunity for price gains and surging payouts, too.
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | JNJ/Kenvue "Prequel" Shows How to Tap Spinoffs for Max Gains, Divs To see what I'm getting at, consider the split of medical-equipment maker Abbott Labs (ABT) from pharmaceutical firm AbbVie (ABBV), which occurred back in 2013. On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. | JNJ/Kenvue "Prequel" Shows How to Tap Spinoffs for Max Gains, Divs To see what I'm getting at, consider the split of medical-equipment maker Abbott Labs (ABT) from pharmaceutical firm AbbVie (ABBV), which occurred back in 2013. On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. | On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. JNJ/Kenvue "Prequel" Shows How to Tap Spinoffs for Max Gains, Divs To see what I'm getting at, consider the split of medical-equipment maker Abbott Labs (ABT) from pharmaceutical firm AbbVie (ABBV), which occurred back in 2013. | On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. JNJ/Kenvue "Prequel" Shows How to Tap Spinoffs for Max Gains, Divs To see what I'm getting at, consider the split of medical-equipment maker Abbott Labs (ABT) from pharmaceutical firm AbbVie (ABBV), which occurred back in 2013. Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. |
22213.0 | 2023-09-12 00:00:00 UTC | High Yield, Low Beta Stocks to Buy for the Next Market Meltdown | ABBV | https://www.nasdaq.com/articles/high-yield-low-beta-stocks-to-buy-for-the-next-market-meltdown | nan | nan | The market's fear indicator, the VIX index, is bobbing along at long-term lows and gives little indication of a looming correction, but investors should assume one is brewing. The index is down at its lows because the recession that was supposed to happen in 2023 never materialized. What has materialized is the persistent need for high interest rates and upside risk to the outlook. In this scenario, rising oil prices underpin a renewed expectation for accelerating inflation and additional FOMC interest rate hikes this year.
Risk-averse investors may choose to sit out the next few months and quarters due to the economic risks, but they don't have to. There are ways to gain exposure to the market while limiting risk and volatility. One method is to focus on low-beta stocks. Beta is a measure of market volatility relative to the S&P 500 (NYSEARCA: SPY); the lower the beta, the less volatile the stock. But what does that mean to the average investor? Low-beta stocks will fall less when the S&P falls 1%, and most pay dividends.
The stocks on this list come from a screen using Marketbeat.com's updated stock screening tools. The screen is simple and looks for high-yielding, low-beta names of blue-chip quality. These stocks all yield at least 3.0% and trade with about half the volatility of the S&P 500 or less.
The Coca-Cola Company: A Royally Good Dividend
The Coca-Cola Company (NYSE: KO) is a surprisingly resilient stock, given its age and ability to continue growing. The Q2 results included mid-single-digit top-line growth, outperformance on the top and bottom lines, and increased guidance that failed to excite the analysts. The company has been lowering its Q3 and FY2023 results targets and has set the bar low. The next report is due at the end of October and may get the stock to increase. Regardless, Coca-Cola is a Dividend King with 60 years of consecutive dividend increases and the power to continue increasing the distribution at a low single-digit pace.
KO stock pays a dividend yield of about 3.15%, with shares trading near $59. The $59 level is consistent with a critical moving average and potential support, so an updraft in the price action is possible before the end of the year. Regarding the beta, Coca-Cola's 24-month beta is only 0.56, making it about half as volatile as the S&P 500. Add in the fact that KO is already down for the year and trading near critical support; the odds are high that any upcoming broad-market weakness is already priced into this stock.
AbbVie: A Dividend King in the Making
It will be several decades before AbbVie (NYSE: ABBV) reaches Dividend King status, but it is well on the way. Add in the pre-spin-off history of Abbott Laboratories, and AbbVie is a King and one with the power to grow its already substantial payout. The stock yields almost 4%, with shares trading near $149, and the distribution is less than half the earnings outlook. The company is facing a slowdown in Humira sales due to patent expirations, but sales were stabilizing in the last report, and new drugs Skyrizi and Rinvoq are gaining traction. Regarding volatility, AbbVie has a 24-month beta of 0.46 and is less volatile than Coca-Cola.
Verizon: High-Yield, Low-Beta with Nowhere to Go but Up
Verizon (NYSE: VZ) is this list's highest-yielding, lowest-volatility stock, with a distribution worth 8% and a beta of 0.34. The stock is also a deep value after selling off over the last year but is at a turning point. The analysts all see the stock moving higher; it is trading beneath the lowest price target on record, and the most recent action is bullish. Citigroup upgraded the stock to a high-risk Buy with a price target of $40. That's below the consensus but a solid 20% above the current action.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie: A Dividend King in the Making It will be several decades before AbbVie (NYSE: ABBV) reaches Dividend King status, but it is well on the way. Add in the pre-spin-off history of Abbott Laboratories, and AbbVie is a King and one with the power to grow its already substantial payout. Regarding volatility, AbbVie has a 24-month beta of 0.46 and is less volatile than Coca-Cola. | AbbVie: A Dividend King in the Making It will be several decades before AbbVie (NYSE: ABBV) reaches Dividend King status, but it is well on the way. Add in the pre-spin-off history of Abbott Laboratories, and AbbVie is a King and one with the power to grow its already substantial payout. Regarding volatility, AbbVie has a 24-month beta of 0.46 and is less volatile than Coca-Cola. | AbbVie: A Dividend King in the Making It will be several decades before AbbVie (NYSE: ABBV) reaches Dividend King status, but it is well on the way. Add in the pre-spin-off history of Abbott Laboratories, and AbbVie is a King and one with the power to grow its already substantial payout. Regarding volatility, AbbVie has a 24-month beta of 0.46 and is less volatile than Coca-Cola. | AbbVie: A Dividend King in the Making It will be several decades before AbbVie (NYSE: ABBV) reaches Dividend King status, but it is well on the way. Add in the pre-spin-off history of Abbott Laboratories, and AbbVie is a King and one with the power to grow its already substantial payout. Regarding volatility, AbbVie has a 24-month beta of 0.46 and is less volatile than Coca-Cola. |
22214.0 | 2023-09-11 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-7 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $149.04, marking a +0.01% move from the previous day. The stock lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Prior to today's trading, shares of the drugmaker had lost 2.08% over the past month. This has lagged the Medical sector's gain of 0.27% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. 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, 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.
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. As such, positive estimate revisions reflect analyst optimism about 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.
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 0.02% lower. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 13.55. This valuation marks a discount compared to its industry's average Forward P/E of 14.23.
Also, we should mention that ABBV has a PEG ratio of 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. ABBV's industry had an average PEG ratio of 1.6 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
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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 $149.04, marking a +0.01% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | In the latest trading session, AbbVie (ABBV) closed at $149.04, marking a +0.01% move from the previous day. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. | In the latest trading session, AbbVie (ABBV) closed at $149.04, marking a +0.01% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | In the latest trading session, AbbVie (ABBV) closed at $149.04, marking a +0.01% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $2.87 per share. |
22215.0 | 2023-09-11 00:00:00 UTC | Why AbbVie is a Top 25 SAFE Dividend Stock (ABBV) | ABBV | https://www.nasdaq.com/articles/why-abbvie-is-a-top-25-safe-dividend-stock-abbv | nan | nan | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 2.50% of the SPDR S&P Dividend ETF (SDY), which holds $530,500,246 worth of ABBV shares.
AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S. Solid return — hefty yield and strong DividendRank characteristics; A. Accelerating amount — consistent dividend increases over time; F. Flawless history — never a missed or lowered dividend; E. Enduring — at least two decades of dividend payments.
The annualized dividend paid by AbbVie Inc is $5.92/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/12/2023. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Eli Lilly (LLY), and Johnson & Johnson (JNJ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 2.50% of the SPDR S&P Dividend ETF (SDY), which holds $530,500,246 worth of ABBV shares. | AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 2.50% of the SPDR S&P Dividend ETF (SDY), which holds $530,500,246 worth of ABBV shares. | According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 2.50% of the SPDR S&P Dividend ETF (SDY), which holds $530,500,246 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 2.50% of the SPDR S&P Dividend ETF (SDY), which holds $530,500,246 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. |
22216.0 | 2023-09-08 00:00:00 UTC | Daily Dividend Report: AMAT,ABBV,VICI,ALLE,NLY | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-amatabbvviciallenly | nan | nan | Applied Materials today announced that its Board of Directors has approved a quarterly cash dividend of $0.32 per share payable on the company's common stock. The dividend is payable on Dec. 14, 2023 to shareholders of record as of Nov. 24, 2023.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. The cash dividend is payable November 15, 2023, to stockholders of record at the close of business on October 13, 2023. Since the company's inception in 2013, AbbVie has increased its dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
VICI Properties announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.415 per share of common stock for the period from July 1, 2023 to September 30, 2023, representing an annualized amount of $1.66 per share and a 6.4% increase from the current dividend rate. The dividend will be payable on October 5, 2023 to stockholders of record as of the close of business on September 21, 2023.
Allegion, a leading global security products and solutions provider, today announced that its board of directors declared a quarterly dividend of $0.45 per ordinary share of the company. The dividend is payable on Sept. 29, 2023, to shareholders of record on Sept. 18, 2023.
The Board of Directors of Annaly Capital Management declared the third quarter 2023 common stock cash dividend of $0.65 per common share. This dividend is payable October 31, 2023, to common shareholders of record on September 29, 2023. The ex-dividend date is September 28, 2023.
VIDEO: Daily Dividend Report: AMAT,ABBV,VICI,ALLE,NLY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. |
22217.0 | 2023-09-08 00:00:00 UTC | Alector (ALEC) Up 7% on Finishing Enrolment in Alzheimer Study | ABBV | https://www.nasdaq.com/articles/alector-alec-up-7-on-finishing-enrolment-in-alzheimer-study | nan | nan | Shares of Alector ALEC rose 6.8% on Thursday after management announced that it achieved the enrolment target in the phase II INVOKE-2 study on its Alzheimer’s disease (“AD”) candidate, AL002. The candidate is being co-developed with AbbVie ABBV.
Alector expects data from the study before this year’s end.
Based on this study's results, management will decide whether to advance the candidate to pivotal late-stage development.
The INVOKE-2 study is evaluating the safety and efficacy of AL002 in slowing disease progression in individuals with early AD. The study participants are randomized to receive either AL002 or a placebo administered intravenously every four weeks for a treatment period lasting up to 96 weeks.
The primary endpoint of the INVOKE-2 study is disease progression, as measured by the Clinical Dementia Rating Sum of Boxes (“CDR-SB”) scale. The CDR-SB is a numerical scale that measures the severity of AD indication. In addition, the study will also assess microglial activation and Alzheimer’s pathophysiology using cerebrospinal fluid and plasma biomarkers.
In the year so far, shares of Alector have lost 39.2% compared with the industry’s 13.8% fall.
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A humanized monoclonal antibody, AL002 targets triggering receptor expressed on myeloid cells 2 (“TREM2”) to improve cell survival and microglia activity.
Alector signed a global strategic collaboration with AbbVie in 2017 to co-develop and market therapeutics targeting AD and other neurodegenerative indications. Per the terms of the partnership, Alector granted AbbVie an exclusive option for global rights to the development and commercialization of AL002. If AbbVie exercises its option for the program, Alector would be eligible to receive milestone payments of up to $487.5 million. Both companies will share the development costs and profits equally post regulatory approvals.
The AD target market is highly competitive as several other pharma companies like Biogen BIIB and Eli Lilly LLY have their drugs targeting the AD indication. The Alzheimer’s drugs of these companies have either recently been approved for use or are under regulatory review development.
This July, the FDA granted full approval to Biogen’s AD drug Leqembi (lecanemab). Following approval, the Biogen drug is the first and only approved anti-amyloid antibody treatment shown to reduce the rate of disease progression and slow cognitive impairment in the early and mild dementia stages of AD indication. Since Biogen’s Leqembi received full/standard approval from the FDA, it is also eligible for broader Medicare coverage. Such coverage is crucial for a wider rollout of treatment.
Eli Lilly developed donanemab, its antibody therapy for AD. In June, Lilly reported positive data from the phase III TRAILBLAZER-ALZ 2 study that showed that treatment with donanemab significantly slowed cognitive and functional decline in people with early symptomatic AD. Based on this result, Eli Lilly has submitted regulatory applications with the FDA and EMA for the drug to treat AD. A final decision in the United States is expected before year-end.
With no marketed drugs, Alector is solely dependent on its pipeline development for growth, Apart from AL002, Alector is also developing its lead pipeline candidate AL001 in a late-stage study for frontotemporal dementia (FTD) with progranulin mutation (FTD-GRN). The candidate is being developed in collaboration with GSK. AL002 is also being developed in an early-stage study for AD indication.
The successful development of these pipeline candidates will likely boost Alector’s prospects. The company’s partnerships with pharma big-wigs like AbbVie and GSK are also a positive as compared to Alector, these companies already have years of drug-development experience and well-established drug distribution and supply chain.
Alector, Inc. Price
Alector, Inc. price | Alector, Inc. Quote
Zacks Rank
Alector sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The candidate is being co-developed with AbbVie ABBV. Alector signed a global strategic collaboration with AbbVie in 2017 to co-develop and market therapeutics targeting AD and other neurodegenerative indications. Per the terms of the partnership, Alector granted AbbVie an exclusive option for global rights to the development and commercialization of AL002. | Click to get this free report Biogen Inc. (BIIB) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alector, Inc. (ALEC) : Free Stock Analysis Report To read this article on Zacks.com click here. The candidate is being co-developed with AbbVie ABBV. Alector signed a global strategic collaboration with AbbVie in 2017 to co-develop and market therapeutics targeting AD and other neurodegenerative indications. | Click to get this free report Biogen Inc. (BIIB) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alector, Inc. (ALEC) : Free Stock Analysis Report To read this article on Zacks.com click here. The candidate is being co-developed with AbbVie ABBV. Alector signed a global strategic collaboration with AbbVie in 2017 to co-develop and market therapeutics targeting AD and other neurodegenerative indications. | The candidate is being co-developed with AbbVie ABBV. Alector signed a global strategic collaboration with AbbVie in 2017 to co-develop and market therapeutics targeting AD and other neurodegenerative indications. Per the terms of the partnership, Alector granted AbbVie an exclusive option for global rights to the development and commercialization of AL002. |
22218.0 | 2023-09-07 00:00:00 UTC | Weakness in Apple Weighs on Tech Stocks and Drags Broader Marker Lower | ABBV | https://www.nasdaq.com/articles/weakness-in-apple-weighs-on-tech-stocks-and-drags-broader-marker-lower | nan | nan | What you need to know…
The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.73%.
Stocks on Thursday settled mixed, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. The broader market was under pressure Thursday due to weakness in technology stocks. Apple closed down more than -2% to add to Wednesday’s -3% loss and lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Thursday's strength in defensive pharmaceutical and healthcare stocks supported the Dow Jones Industrials index.
Stocks were also under pressure from Thursday’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
Thursday's Fed comments were mostly dovish and helped lift stocks from their worst levels. New York Fed President Williams said U.S. monetary policy is "in a good place," but policymakers will need to parse through data to decide on how to proceed on interest rates. Also, Chicago Fed President Goolsbee said the debate within the Fed is "very rapidly approaching the time when our argument is not going to be about how high should rates go but to how long we need to keep rates at this position before we're sure that we're on the path back to the inflation target."
On the negative side, Atlanta Fed President Bostic said the U.S. economy is still working through pandemic dynamics, and the Fed "still has work to do" to bring inflation to its 2% target.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000. Weekly continuing claims fell -40,000 to 1.679 million, showing a stronger labor market than expectations of 1.719 million.
U.S. Q2 nonfarm productivity was revised lower to +3.5% from the initially reported +3.7%, stronger than expectations of +3.4%. Also, Q2 unit labor costs were revised higher to +2.2% from the initially reported +1.6%, stronger than expectations of +1.9%.
The markets are discounting the odds at 7% for a +25 bp rate hike at the September 20 FOMC meeting and 48% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields on Thursday moved lower. The 10-year T-note yield fell from a 2-week high of 4.304% and finished down -2.2 bp at 4.258%. The 10-year German bund yield fell -4.0 bp to 2.614%. The 10-year UK gilt yield fell -8.0 bp to 4.454%.
Overseas stock markets Thursday settled lower. The Euro Stoxx 50 closed down -0.41%. China’s Shanghai Composite Index closed down -1.13%. Japan’s Nikkei Stock Index closed down -0.75%.
Eurozone Q2 GDP was revised lower to +0.1% q/q and +0.5% y/y from the previously reported +0.3% q/q and +0.6% y/y.
German July industrial production fell -0.8% m/m, weaker than expectations of -0.4% y/y.
Chinese trade data was slightly better than expected. China Aug exports fell -8.8% y/y, a smaller decline than expectations of -9.0% y/y. Also, Aug imports fell -7.3% y/y, a smaller decline than expectations of -9.0% y/y.
Today’s stock movers…
Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple suppliers are also falling on the news, with Qualcomm (QCOM), Skyworks Solutions (SWKS), and Qorvo (QRVO) closing down more than -7%.
Seagate Technology Holdings Plc (STX) closed down more than -10% to lead losers in the SP 500 after Barclays downgraded the stock to equal weight from overweight.
Align Technology (ALGN) closed down more than -7% to lead losers in the Nasdaq 100 on weakness in healthcare suppliers after Neogen, a maker of food safety tests, forecast “modestly negative” core growth in its Q1 preliminary view.
Insulet (PODD) closed down more than -7% after a New England Journal of Medicine article said the use of semaglutides shots like Ozempic and Wegovy in patients with type 1 diabetes reduces the need for insulin injections.
FMC Corp (FMC) closed down more than -7% after Blue Orca Capital said FMC’s patents aren’t enough to protect it from competition from rival generic products.
Rollins (ROL) closed down more than -6 % after holder LOR Inc. announced a sale of 38.7 million shares of the stock via Goldman Sachs and Morgan Stanley.
Verint Systems (VRNT) closed down more than -19% after reporting Q2 adjusted revenue of $210.4 million, weaker than the consensus of $226.6 million, and cut its full-year adjusted revenue forecast to $910 million from a previous estimate of $935 million, below the consensus of $933.6 million.
C3.ai (AI) closed down more than -12% after saying it expects its fiscal-year adjusted loss will be as much as -$100 million, wider than a previous estimate of -$75 million, and that profitability would take longer than expected.
Dell Technologies (DELL) closed down more than -2% after Barclays downgraded the stock to underweight from equal weight.
Nvidia (NVDA) closed down more than -1%, adding to Wednesday’s -2% fall after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Defensive health insurance and dividend paying pharmaceutical stocks rose Thursday. Centene (CNC) closed up more than +4% to lead gainers in the S&P 500. Also, Church & Dwight (CHD), Eli Lilly (LLY), Amgen (AMGN), AbbVie (ABBV), and Cigna Group (CI) closed up more than +2%.
Westrock (WRK) closed up more than +4% after the Wall Street Journal reported the company is nearing a deal to merge with Smurfit Kappa.
G-III Apparel Group Ltd (GIII) closed up more than +24% after reporting Q2 net sales of $659.8 million, well above the consensus of $592.2 million.
UiPath (PATH) closed up more than +11% after reporting Q2 total revenue of $287.3 million, better than the consensus of $282.3 million, and sees 2024 revenue of $1.27 billion-$1.28 billion, stronger than the consensus of $1.27 billion.
Cboe Global Markets (CBOE) closed up more than +2% after reporting the average daily volume for August was up +25.4%
T-Mobile US (TMUS) closed up more than +2% to lead gainers in the Nasdaq 100 after Bloomberg Intelligence said the launch of the iPhone 15 could provide a boost to T-Mobile’s premium service plans.
McDonald’s (MCD) closed up more than +1% after Wells Fargo Securities upgraded the stock to overweight from equal weight.
Across the markets…
December 10-year T-notes (ZNZ23) on Thursday closed up +9.5 ticks, and the 10-year T-note yield fell -2.2 bp to 4.258%. Dec T-notes Thursday today recovered from a 1-1/2 week low, and the 10-year T-note yield fell back from a 2-week high of 4.304% as a slump in stocks sparked safe-haven demand for government debt. T-notes this Thursday morning initially moved lower on news that weekly jobless claims unexpectedly fell to a 7-month low and that Q2 unit labor costs were revised higher.
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On the date of publication, Rich Asplund 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. | Also, Church & Dwight (CHD), Eli Lilly (LLY), Amgen (AMGN), AbbVie (ABBV), and Cigna Group (CI) closed up more than +2%. Apple closed down more than -2% to add to Wednesday’s -3% loss and lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Today’s stock movers… Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. | Also, Church & Dwight (CHD), Eli Lilly (LLY), Amgen (AMGN), AbbVie (ABBV), and Cigna Group (CI) closed up more than +2%. Apple closed down more than -2% to add to Wednesday’s -3% loss and lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. U.S. weekly initial unemployment claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000. | Also, Church & Dwight (CHD), Eli Lilly (LLY), Amgen (AMGN), AbbVie (ABBV), and Cigna Group (CI) closed up more than +2%. What you need to know… The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.73%. Stocks were also under pressure from Thursday’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer. | Also, Church & Dwight (CHD), Eli Lilly (LLY), Amgen (AMGN), AbbVie (ABBV), and Cigna Group (CI) closed up more than +2%. Stocks on Thursday settled mixed, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. Thursday's strength in defensive pharmaceutical and healthcare stocks supported the Dow Jones Industrials index. |
22219.0 | 2023-09-06 00:00:00 UTC | Notable ETF Inflow Detected - PBUS, CVX, MRK, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-pbus-cvx-mrk-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 Invesco MSCI USA ETF (Symbol: PBUS) where we have detected an approximate $318.6 million dollar inflow -- that's a 11.8% increase week over week in outstanding units (from 60,380,000 to 67,480,000). Among the largest underlying components of PBUS, in trading today Chevron Corporation (Symbol: CVX) is up about 0.2%, Merck & Co Inc (Symbol: MRK) is off about 1.7%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average:
Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $44.80. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of PBUS, in trading today Chevron Corporation (Symbol: CVX) is up about 0.2%, Merck & Co Inc (Symbol: MRK) is off about 1.7%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. 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 PBUS, in trading today Chevron Corporation (Symbol: CVX) is up about 0.2%, Merck & Co Inc (Symbol: MRK) is off about 1.7%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average: Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $44.80. 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 PBUS, in trading today Chevron Corporation (Symbol: CVX) is up about 0.2%, Merck & Co Inc (Symbol: MRK) is off about 1.7%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco MSCI USA ETF (Symbol: PBUS) where we have detected an approximate $318.6 million dollar inflow -- that's a 11.8% increase week over week in outstanding units (from 60,380,000 to 67,480,000). For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average: Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $44.80. | Among the largest underlying components of PBUS, in trading today Chevron Corporation (Symbol: CVX) is up about 0.2%, Merck & Co Inc (Symbol: MRK) is off about 1.7%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average: Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $44.80. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. |
22220.0 | 2023-09-05 00:00:00 UTC | 3 Biotech Stocks to Invest In for Big-Time, Long-Term Gains | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-to-invest-in-for-big-time-long-term-gains | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the grand tapestry of the investment world, one thread that continues to shine is biotech stocks to buy and hold. It’s no secret that delving into biotech investments can be incredibly challenging, even when zeroing in on established firms with market-ready drugs and expansive research and development pipelines.
In this arena, you’re not merely playing by the financial scorecards but placing bets on the future. These early-stage businesses dazzle with potential, yet their balance sheets typically tell tales of minimal revenue and elusive profits. Yet, biotech’s allure grows as the winds of change steer policies toward equitable healthcare access. With advancements aligning seamlessly with the global pivot towards health and wellness, these stocks are in for potentially stellar long-term growth. For those with an eye on tomorrow, these biotech selections could be the golden tickets to a fortified portfolio ahead.
Biotech Stocks to Buy and Hold: AbbVie Incorporated (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
In the dynamic realm of biotech, AbbVie Incorporated (NYSE:ABBV) stands tall, undeniably carving a niche as an industry maven. While its star arthritis drug, Humira, has traditionally been its revenue powerhouse, recent patent losses and ensuing generic versions have dented its sales dominance. By the close of the recent quarter, global Humira sales still boasted a cool $4 billion despite a 25% dip. However, AbbVie is no one-trick pony with its expansive drug pipeline and endeavors to widen Humira’s application range, and the company is positioning itself against any revenue shortfalls.
Diving deeper into their feats, collaboration with Genmab yielded promising clinical results for a Follicular Lymphoma treatment. Moreover, with AbbVie securing the MHRA nod in the United Kingdom for its Crohn’s Disease drug, RYNVOQ, and the FDA amplifying the indications for its migraine drug, Qulpta, the company’s global footprint is undeniably expanding. Furthermore, AbbVie’s dividend landscape is enticing, with a tempting yield of more than 3.5% yield that’s seen consistent hikes.
Vertex Pharmaceuticals (VRTX)
Source: Shutterstock
Vertex Pharmaceuticals (NASDAQ:VRTX) continues to shine as a beacon of innovation and relentless pursuit of transformative treatments in the vast expanse of the biotech world. Recognized for its powerful efforts in taming cystic fibrosis (CF) – a rare genetic ailment- Vertex takes pride in its array of FDA-endorsed medicines that have significantly managed this disease.
Furthermore, the company is delving deep into advanced-stage trials of other drugs in its pipeline, eyeing transformative therapies for conditions such as transfusion-dependent beta-thalassemia and sickle cell disease. These endeavors could well become FDA-certified game changers in the coming years. The biotech giant’s projected revenue for this year alone hovers between a whopping $9.7 billion to $9.8 billion, mainly steered by its four established CF therapies. Beyond CF, it’s channeling its innovative spirit into exploring treatments for a spectrum of conditions such as sickle cell, anemia, diabetes, kidney disease and muscular dystrophy.
Recursion Pharmaceuticals (RXRX)
Source: Piotr Swat / Shutterstock.com
Recursion Pharmaceuticals (NASDAQ:RXRX) recently caught the market’s attention by securing a remarkable $50 million boost from Nvidia, a titan in the realm of AI. This collaboration isn’t merely about capital infusion but revolutionizing drug discovery. By harnessing Nvidia’s advanced AI prowess, Recursion aims to develop AI models and competencies capable of unveiling novel drug potentials. This partnership has promising implications for Recursion’s ongoing five human trials, with a spotlight on a mid-stage trial addressing cerebral cavernous malformations.
Beyond cerebral cavernous malformations, Recursion’s therapeutic quest spans the treatment of neurofibromatosis, familial adenomatous polyposis, multiple cancer types and cancer immunotherapy. The current stock valuation might soon seem a steal if its trailblazing AI endeavors yield breakthrough treatments for formidable diseases, particularly cancer. Tipranks analysts certainly concur, tagging it with an encouraging “Moderate Buy” rating and forecasting a staggering 85% growth potential.
On the date of publication, Muslim Farooque 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
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. | Biotech Stocks to Buy and Hold: AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the dynamic realm of biotech, AbbVie Incorporated (NYSE:ABBV) stands tall, undeniably carving a niche as an industry maven. However, AbbVie is no one-trick pony with its expansive drug pipeline and endeavors to widen Humira’s application range, and the company is positioning itself against any revenue shortfalls. Moreover, with AbbVie securing the MHRA nod in the United Kingdom for its Crohn’s Disease drug, RYNVOQ, and the FDA amplifying the indications for its migraine drug, Qulpta, the company’s global footprint is undeniably expanding. | Biotech Stocks to Buy and Hold: AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the dynamic realm of biotech, AbbVie Incorporated (NYSE:ABBV) stands tall, undeniably carving a niche as an industry maven. However, AbbVie is no one-trick pony with its expansive drug pipeline and endeavors to widen Humira’s application range, and the company is positioning itself against any revenue shortfalls. Moreover, with AbbVie securing the MHRA nod in the United Kingdom for its Crohn’s Disease drug, RYNVOQ, and the FDA amplifying the indications for its migraine drug, Qulpta, the company’s global footprint is undeniably expanding. | Biotech Stocks to Buy and Hold: AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the dynamic realm of biotech, AbbVie Incorporated (NYSE:ABBV) stands tall, undeniably carving a niche as an industry maven. However, AbbVie is no one-trick pony with its expansive drug pipeline and endeavors to widen Humira’s application range, and the company is positioning itself against any revenue shortfalls. Moreover, with AbbVie securing the MHRA nod in the United Kingdom for its Crohn’s Disease drug, RYNVOQ, and the FDA amplifying the indications for its migraine drug, Qulpta, the company’s global footprint is undeniably expanding. | However, AbbVie is no one-trick pony with its expansive drug pipeline and endeavors to widen Humira’s application range, and the company is positioning itself against any revenue shortfalls. Biotech Stocks to Buy and Hold: AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com In the dynamic realm of biotech, AbbVie Incorporated (NYSE:ABBV) stands tall, undeniably carving a niche as an industry maven. Moreover, with AbbVie securing the MHRA nod in the United Kingdom for its Crohn’s Disease drug, RYNVOQ, and the FDA amplifying the indications for its migraine drug, Qulpta, the company’s global footprint is undeniably expanding. |
22221.0 | 2023-09-05 00:00:00 UTC | AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-dips-more-than-broader-markets%3A-what-you-should-know-4 | nan | nan | AbbVie (ABBV) closed at $146.10 in the latest trading session, marking a -1.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.42%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the drugmaker had lost 1.42% over the past month. This has lagged the Medical sector's gain of 1.89% and the S&P 500's gain of 1.02% in that time.
AbbVie will be looking to display strength as it nears 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 recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 13.48. This valuation marks a discount compared to its industry's average Forward P/E of 14.56.
It is also worth noting that ABBV currently has a PEG ratio of 2.7. 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 1.6 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 183, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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. | AbbVie (ABBV) closed at $146.10 in the latest trading session, marking a -1.42% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed at $146.10 in the latest trading session, marking a -1.42% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. | AbbVie (ABBV) closed at $146.10 in the latest trading session, marking a -1.42% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. | AbbVie (ABBV) closed at $146.10 in the latest trading session, marking a -1.42% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.87 per share. |
22222.0 | 2023-09-05 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-8 | nan | nan | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugmaker have returned -1.4% over the past month versus the Zacks S&P 500 composite's +1% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 7% 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.
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 has changed +0.3% over the last 30 days.
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 changed -0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #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.
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 $53.49 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.
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.
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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Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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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 been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 7% over this period. 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. | 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. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 7% over this period. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 7% over this period. 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. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 7% over this period. 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. |
22223.0 | 2023-09-04 00:00:00 UTC | Is SPDR S&P Dividend ETF (SDY) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-spdr-sp-dividend-etf-sdy-a-strong-etf-right-now-9 | nan | nan | A smart beta exchange traded fund, the SPDR S&P Dividend ETF (SDY) debuted on 11/08/2005, and offers 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.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Because the fund has amassed over $21.61 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. SDY is managed by State Street Global Advisors. Before fees and expenses, SDY seeks to match the performance of the S&P High Yield Dividend Aristocrats Index.
The S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for SDY, making it on par with most peer products in the space.
SDY's 12-month trailing dividend yield is 2.60%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For SDY, it has heaviest allocation in the Industrials sector --about 22.40% of the portfolio --while Consumer Staples and Financials round out the top three.
When you look at individual holdings, 3m Co W/d (MMM) accounts for about 3% of the fund's total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV).
SDY's top 10 holdings account for about 21.4% of its total assets under management.
Performance and Risk
So far this year, SDY has lost about -0.90%, and it's up approximately 1.37% in the last one year (as of 09/04/2023). During this past 52-week period, the fund has traded between $111.50 and $132.18.
The fund has a beta of 0.86 and standard deviation of 16.56% for the trailing three-year period, which makes SDY a medium risk choice in this particular space. With about 124 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 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 $50.98 billion in assets, Vanguard Value ETF has $101.62 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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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When you look at individual holdings, 3m Co W/d (MMM) accounts for about 3% of the fund's 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. A smart beta exchange traded fund, the SPDR S&P Dividend ETF (SDY) debuted on 11/08/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, 3m Co W/d (MMM) accounts for about 3% of the fund's total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). A smart beta exchange traded fund, the SPDR S&P Dividend ETF (SDY) debuted on 11/08/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report SPDR S&P Dividend ETF (SDY): ETF Research Reports International Business Machines Corporation (IBM) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, 3m Co W/d (MMM) accounts for about 3% of the fund's total assets, followed by Intl Business Machines Corp (IBM) and Abbvie Inc (ABBV). A smart beta exchange traded fund, the SPDR S&P Dividend ETF (SDY) debuted on 11/08/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | When you look at individual holdings, 3m Co W/d (MMM) accounts for about 3% of the fund's 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. A smart beta exchange traded fund, the SPDR S&P Dividend ETF (SDY) debuted on 11/08/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. |
22224.0 | 2023-09-02 00:00:00 UTC | Could CVS Make a Copy of Ozempic? | ABBV | https://www.nasdaq.com/articles/could-cvs-make-a-copy-of-ozempic | nan | nan | On Aug. 23, CVS Health (NYSE: CVS) made waves when it announced that it will be launching a new business called Cordavis that will be devoted to commercializing biosimilar medicines. If you aren't familiar, biosimilars are generic versions of biologic drugs, which tend to be newer, more complex, and more expensive compared to others.
The move means that the company will soon develop another major revenue stream, starting with its biosimilar to AbbVie's cash-cow arthritis drug Humira that's anticipated to launch next year.
But astute investors know that Humira is the blockbuster drug of yesteryear. Could CVS develop a copy of one of today's hottest medicines, like Novo Nordisk's (NYSE: NVO) Ozempic or Wegovy? It's possible: Here's why.
Ozempic could fit the bill
First, let's examine why CVS decided to target Humira as its first biosimilar to commercialize.
Revenue and profit-seeking were doubtlessly the largest motivators. In 2022, sales of Humira were worth $21 billion for AbbVie. Plus, the drug treats a slew of different maladies, like ulcerative colitis, psoriatic arthritis, Crohn's disease, hidradenitis suppurativa (a painful skin disorder), and more. CVS will thus find a vibrant level of demand for its copy.
It should also be able to produce the therapy at a rate that's competitive with other biosimilar-drug makers. One carton with two doses costs around $6,240 without insurance. When Cordavis launches its copy of Humira in early 2024, it plans to discount that price by 80%. That price point will ensure it can stake out a slice of the market, since it won't be able to differentiate its version from the competition except by passing on the savings associated with cost-cutting to buyers.
Last but not least, Humira's exclusivity protections have expired as of 2023. If AbbVie's exclusive rights to make the drug were still legally in force, neither CVS nor anyone else could market a biosimilar.
So, on the basis of its large market of multiple indications, attractive cost-cutting potential, and lapsed exclusivity protections, how does Novo Nordisk's Ozempic rate?
The molecule that's branded as Ozempic is called semaglutide, and it's already being used to treat obesity and type 2 diabetes. It might also be used one day to reduce cardiac risks or even treat Alzheimer's disease or perhaps addiction.
In the second quarter, the drug brought in more than $3 billion in revenue. Global Data, a research company, thinks that Ozempic sales could be worth as much as $17 billion for Novo by 2029. So it looks quite lucrative to copy.
Each dose has a list price of $935, though many retailers sell it for closer to $1,000. That's not quite as pricey per dose as Humira, but considering the need for chronic administration to maintain its benefits, it's certainly expensive enough to be worth undercutting by making a generic. But there are two catches to be aware of.
Some of the patent protections covering Ozempic are set to lapse in 2026, whereas others last until 2031. Generic drug makers like Viatris are already lined up in wait -- it has already submitted its approval packet to regulators at the Food and Drug Administration (FDA).
In fact, Viatris is currently fighting Novo Nordisk in court regarding whether it has the right to commercialize its copy. It's unclear what the outcome of that case will be, but either way, there is a solid chance that CVS would need to wait at least a couple of years before it could have its chance to make a generic version of Ozempic.
There's one other complication, which could end up being an irrelevant technicality depending on how CVS' management approaches Cordavis' mandate. Ozempic isn't a biologic medication, so there won't be biosimilars for it, merely generics. If Cordavis stays true to its biosimilars focus, Ozempic won't be on its radar.
Still, it would be leaving money on the table by avoiding commercializing a generic medicine because of terminology, so there's reason to believe the distinction might not matter in the long term.
Don't count the chickens before they hatch
In conclusion, yes, it's very possible that CVS could make a copy of Ozempic, but it probably won't happen this year or next year. If it does, it will need to have some kind of competitive advantage in cost if it wants to beat the other players that will be in the market. Whether or not it opts to pursue generic Ozempic, the company will likely opt to commercialize another medication before 2025. Don't expect the new segment to be a major driver of revenue right away.
It'll take time for CVS to establish its biosimilar operations, and because it's opting to work through a manufacturer called Sandoz rather than manufacture the medicines itself, its margins might be lower than what one might expect. Keep an eye on what management says is next for Cordavis, and one day it just might be Ozempic's turn.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health, Novo Nordisk, and Viatris. 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 move means that the company will soon develop another major revenue stream, starting with its biosimilar to AbbVie's cash-cow arthritis drug Humira that's anticipated to launch next year. In 2022, sales of Humira were worth $21 billion for AbbVie. If AbbVie's exclusive rights to make the drug were still legally in force, neither CVS nor anyone else could market a biosimilar. | The move means that the company will soon develop another major revenue stream, starting with its biosimilar to AbbVie's cash-cow arthritis drug Humira that's anticipated to launch next year. In 2022, sales of Humira were worth $21 billion for AbbVie. If AbbVie's exclusive rights to make the drug were still legally in force, neither CVS nor anyone else could market a biosimilar. | The move means that the company will soon develop another major revenue stream, starting with its biosimilar to AbbVie's cash-cow arthritis drug Humira that's anticipated to launch next year. In 2022, sales of Humira were worth $21 billion for AbbVie. If AbbVie's exclusive rights to make the drug were still legally in force, neither CVS nor anyone else could market a biosimilar. | The move means that the company will soon develop another major revenue stream, starting with its biosimilar to AbbVie's cash-cow arthritis drug Humira that's anticipated to launch next year. In 2022, sales of Humira were worth $21 billion for AbbVie. If AbbVie's exclusive rights to make the drug were still legally in force, neither CVS nor anyone else could market a biosimilar. |
22225.0 | 2023-09-02 00:00:00 UTC | 3 No-Brainer Dividend Stocks to Buy in September | ABBV | https://www.nasdaq.com/articles/3-no-brainer-dividend-stocks-to-buy-in-september | nan | nan | When's a good time to invest in dividend stocks? Any month that has a vowel in its name.
We asked three Motley Fool contributors to identify no-brainer dividend stocks to buy in September. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Gilead Sciences (NASDAQ: GILD).
Dividend royalty with better days ahead
Keith Speights (AbbVie): It's never easy for a drugmaker to lose patent exclusivity for its top-selling product. AbbVie is certainly feeling the pain now that Humira faces biosimilar competition in the U.S. The company's revenue, profits, and share price have fallen.
However, income investors continue to fare well owning AbbVie stock. The pharma giant's dividend yield stands at 4%. AbbVie also belongs to the exclusive group known as the Dividend Kings thanks to its remarkable 51 consecutive years of dividend increases.
The stock is attractively valued, with shares trading below 13.5 times expected earnings. Better days should lie ahead for AbbVie as well. The company expects to return to solid growth in 2025.
AbbVie already has two successors to Humira on the market. It looks for Rinvoq and Skyrizi to together generate greater annual peak sales than Humira did in its prime.
The company also has several other key growth drivers, notably including antipsychotic Vraylar and migraine drugs Ubrelvy and Qulipta. In addition, AbbVie's pipeline features over 90 programs in development.
AbbVie offers investors an attractive and growing dividend, a bargain valuation, and the promise of strong growth throughout the second half of the decade. That makes it an ideal stock to buy in September.
This high-yielding dividend stock trades at steep a discount
David Jagielski (Bristol Myers Squibb): Pharmaceutical giant Bristol Myers Squibb is an investment that can be an ideal option for all types of investors. With a yield of 3.7%, the stock provides an above-average payout that is more than double the S&P 500 average of 1.6%.
The dividend is sustainable, too; Bristol Myers' payout ratio is just 60%, which leaves plenty of room for the company to boost its dividend payments in the future. Bristol Myers has been increasing its dividend since 2010. Last year, it lifted its payouts by 6%. Over the last five years, the drugmaker's dividend has risen by 43%.
Despite the relative stability that Bristol Myers' stock offers (its beta value is just over 0.4, indicating low volatility), investors haven't been eager to buy shares of the healthcare specialist lately. Its stock has declined by 14% year to date, and trades at just 8 times its estimated future profits. That's well below the healthcare sector average of 19.
The reason the stock trades at such a discount is that investors are worried about losses of exclusivity for Bristol Myers Squibb's top-selling drugs and a potential big drop in revenue in the future. Eliquis and Opdivo are set to lose patent protection this decade and were the company's top products last quarter, bringing in more than $5.3 billion in revenue. But Bristol Myers has been investing in growth. Its new product portfolio, although still small with revenue totaling just $862 million last quarter, grew at a rate of 79% year over year.
Bristol Myers generates ample free cash flow, which is important whether a business is looking to invest in its operations or acquire assets that can help with its long-term growth. In each of the past three years, its free cash flow has topped more than $10 billion. Given that its dividend costs around $4.6 billion annually, Bristol Myers still has plenty of cash to invest in its future growth.
Investors may be discounting the stock too much given Bristol Myers has a solid track record of uncovering new growth opportunities. While there is some risk and uncertainty surrounding the business, the discount looks excessive. Buying the stock now could lead to outsize returns in the future.
A high-yield, rock-solid dividend pick
Prosper Junior Bakiny (Gilead Sciences): Biotech giant Gilead Sciences has much to offer dividend investors. First, its current business is solid and consistent. Like its peers in the industry, it provides medicines that are critical to patients' well-being. Gilead Sciences is a leader -- arguably the leader -- in the HIV drugs market, thanks to treatments such as Biktarvy (the top-prescribed HIV regimen in the U.S.), Descovy for PrEP, Sunlenca, and others.
True, the volume of HIV diagnoses and prescriptions declined during the earlier pandemic years in a once-in-a-lifetime event. These dynamics harmed Gilead Sciences' business, but it's not indicative of what will happen with the company moving forward. The biotech's second-most-exciting segment is arguably oncology. It accounts for a relatively small percentage of Gilead Sciences' top line, but sales of the company's oncology products have been growing much faster than the rest of its business.
Second, Gilead Sciences is a proven innovator and boasts more than 60 ongoing programs. Dividend investors want companies that can remain in business and deliver solid financial results for a long time. Gilead Sciences' deep pipeline is a good sign that it can do exactly that.
Third, Gilead Sciences has a solid dividend profile. Over the past five years, the biotech has boosted its payouts by a respectable 31.6%. The company's yield of 3.84% is highly competitive, while its payout ratio of 42% leaves plenty of room for dividend increases.
Gilead Sciences may not have the most exciting business, but when it comes to delivering consistent dividends, slow, steady, and "boring" works just fine. The biotech remains an excellent pick for income-seekers to buy in September and hold for a long time.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Bristol Myers Squibb. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Gilead Sciences (NASDAQ: GILD). Dividend royalty with better days ahead Keith Speights (AbbVie): It's never easy for a drugmaker to lose patent exclusivity for its top-selling product. AbbVie is certainly feeling the pain now that Humira faces biosimilar competition in the U.S. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Gilead Sciences (NASDAQ: GILD). Dividend royalty with better days ahead Keith Speights (AbbVie): It's never easy for a drugmaker to lose patent exclusivity for its top-selling product. AbbVie is certainly feeling the pain now that Humira faces biosimilar competition in the U.S. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Gilead Sciences (NASDAQ: GILD). Dividend royalty with better days ahead Keith Speights (AbbVie): It's never easy for a drugmaker to lose patent exclusivity for its top-selling product. AbbVie is certainly feeling the pain now that Humira faces biosimilar competition in the U.S. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Gilead Sciences (NASDAQ: GILD). Dividend royalty with better days ahead Keith Speights (AbbVie): It's never easy for a drugmaker to lose patent exclusivity for its top-selling product. AbbVie is certainly feeling the pain now that Humira faces biosimilar competition in the U.S. |
22226.0 | 2023-09-02 00:00:00 UTC | 8 Pharma Stocks Affected by New Drug Price Negotiation Rules | ABBV | https://www.nasdaq.com/articles/8-pharma-stocks-affected-by-new-drug-price-negotiation-rules | nan | nan | About a year ago, President Joe Biden signed the Inflation Reduction Act into law. Among the many things that law achieved was to give Medicare, for the first time, the ability to directly negotiate the prices it pays for some of the single-source drugs that it spends the most on each year.
Recently, the Centers for Medicare and Medicaid Services (CMS) published a list of the first 10 drugs that will be subject to price negotiations. The prices that come out of those talks are scheduled to take effect in 2026.
Image source: Getty Images.
Before you start selling off your pharma stocks in a panic, have a look at what investors can expect from these negotiations in the years to come.
DRUG NAME DRUGMAKER(S) COMMONLY TREATED CONDITIONS GROSS COST TO MEDICARE PART D (JUNE 2022-MAY 2023)
Eliquis
Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) Blood clots $16.48 billion
Jardiance Eli Lilly (NYSE: LLY) and Boehringer Ingelheim Diabetes $7.06 billion
Xarelto Johnson & Johnson (NYSE: JNJ) and Bayer (OTC: BAYR.Y) Blood clots $6.03 billion
Januvia Merck (NYSE: MRK) Diabetes $4.09 billion
Farxiga AstraZeneca (NASDAQ: AZN) Diabetes $3.27 billion
Entresto Novartis
Heart failure $2.88 billion
Enbrel Amgen Arthritis $2.79 billion
Imbruvica AbbVie (NYSE: ABBV) and Johnson & Johnson Blood cancer $2.66 billion
Stelara Johnson & Johnson Psoriasis $2.64 billion
Fiasp, Novolog Novo Nordisk
Diabetes $2.58 billion
Data source: Centers for Medicare and Medicaid Services.
Bristol Myers Squibb, Pfizer, and AstraZeneca
By February, CMS must propose to Bristol Myers Squibb an initial offer for what it views as a "maximum fair price" for Eliquis, the blockbuster blood thinner that it developed and commercialized jointly with Pfizer. With nearly $16.5 billion in annual gross Medicare sales, this could be the most significant negotiation CMS undertakes with big pharma.
BMS and Pfizer will have 30 days to respond to the government's offer, either accepting it or making a counteroffer. If an agreement isn't reached in that first round, there could be up to three rounds of negotiation meetings between then and Aug. 1.
Though the CEO of BMS has described the process as unfair, the partners can choose not to sell Eliquis to Medicare if they don't feel the negotiated price they are being offered is acceptable.
Among these 10 drugmakers, Bristol Myers Squibb could face the largest challenge as a result of the new negotiated prices. Last year, Bristol Myers reported $11.8 billion in Eliquis revenue, which was more than a quarter of its total sales.
Pfizer has less reason to feel bothered about the upcoming Eliquis price negotiations. The company reported $6.5 billion in revenue from the blood thinner last year, which only worked out to about 6.5% of its $100.3 billion in total revenue.
Bristol Myers Squibb is also entitled to royalty payments from AstraZeneca regarding sales of Farxiga, an SGLT2 drug that helps type 2 diabetes patients to excrete excess blood sugar in their urine. Luckily for Bristol Myers Squibb, it already transferred most of the rights for Farxiga royalties to third parties.
AstraZeneca also has little to fear from upcoming negotiations with Medicare. U.S. Farxiga sales were responsible for less than 3% of its total revenue in the first half of 2023.
Eli Lilly
Jardiance -- another SGLT2 drug similar to Farxiga -- is second on the list in terms of Medicare sales volume, but the potential effect of these negotiations on Eli Lilly's top line will be manageable.
In the second quarter, Jardiance sales jumped 45% higher year over year to an annualized rate of $2.7 billion, or around 8% of Eli Lilly's total revenue. While Jardiance is a growth driver for the company, it's not the most important drug in its lineup. Sales of Mounjaro, Lilly's new weight-management drug, exploded to an annualized rate of $3.9 billion in the second quarter.
Johnson & Johnson, AbbVie, and Bayer
With three drugs on this list, Johnson & Johnson will be doing a lot of negotiating with Medicare in the months ahead. Fortunately for the company and its investors, the drugs up for negotiation aren't huge growth drivers anymore.
Xarelto is a blood thinner similar to Eliquis that Johnson & Johnson co-developed with Bayer. For the second quarter, Johnson & Johnson reported that U.S. Xarelto sales rose 5% year over year to an annualized rate of $2.5 billion. That works out to about 2.5% of the healthcare giant's total revenue.
Imbruvica is a blood cancer treatment that J&J developed in collaboration with Pharmacyclics, which was subsequently acquired by AbbVie. Unfortunately for AbbVie and J&J, competition from treatments that work along similar lines pushed U.S. sales of Imbruvica down by 26% year over year in the first half of 2023.
Stelara is an injectible biologic treatment for psoriasis. It's a big seller for J&J now, but the main patent protecting its market exclusivity expires this year. By the time new prices negotiated with Medicare go into effect in 2026, Stelara will probably already be competing with lower-priced biosimilars.
Merck
Januvia is a type 2 diabetes treatment first approved in 2006. Merck currently leans on it for less than 5% of total sales.
Negotiations with Medicare won't be an issue this time around because Januvia's already losing market share to a slew of more recently approved diabetes treatments, including Ozempic and Mounjaro. Moreover, generic versions of Januvia will likely begin decimating U.S. sales of the drug in 2026, shortly after the prices to be negotiated with Medicare are set to take effect.
If I didn't know better, I'd say it looks like CMS is trying to avoid riling up the pharmaceutical industry by selecting treatments that aren't terribly important to the companies that sell them. As is often the case with big events that get a lot of news coverage, the upcoming negotiations probably won't change the overall investing thesis for any of these eight companies.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb, Merck, and Pfizer. The Motley Fool recommends Amgen, Johnson & Johnson, and Novo Nordisk. 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. | Eliquis Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) Blood clots $16.48 billion Jardiance Eli Lilly (NYSE: LLY) and Boehringer Ingelheim Diabetes $7.06 billion Xarelto Johnson & Johnson (NYSE: JNJ) and Bayer (OTC: BAYR.Y) Blood clots $6.03 billion Januvia Merck (NYSE: MRK) Diabetes $4.09 billion Farxiga AstraZeneca (NASDAQ: AZN) Diabetes $3.27 billion Entresto Novartis Heart failure $2.88 billion Enbrel Amgen Arthritis $2.79 billion Imbruvica AbbVie (NYSE: ABBV) and Johnson & Johnson Blood cancer $2.66 billion Stelara Johnson & Johnson Psoriasis $2.64 billion Fiasp, Novolog Novo Nordisk Diabetes $2.58 billion Data source: Centers for Medicare and Medicaid Services. Johnson & Johnson, AbbVie, and Bayer With three drugs on this list, Johnson & Johnson will be doing a lot of negotiating with Medicare in the months ahead. Imbruvica is a blood cancer treatment that J&J developed in collaboration with Pharmacyclics, which was subsequently acquired by AbbVie. | Eliquis Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) Blood clots $16.48 billion Jardiance Eli Lilly (NYSE: LLY) and Boehringer Ingelheim Diabetes $7.06 billion Xarelto Johnson & Johnson (NYSE: JNJ) and Bayer (OTC: BAYR.Y) Blood clots $6.03 billion Januvia Merck (NYSE: MRK) Diabetes $4.09 billion Farxiga AstraZeneca (NASDAQ: AZN) Diabetes $3.27 billion Entresto Novartis Heart failure $2.88 billion Enbrel Amgen Arthritis $2.79 billion Imbruvica AbbVie (NYSE: ABBV) and Johnson & Johnson Blood cancer $2.66 billion Stelara Johnson & Johnson Psoriasis $2.64 billion Fiasp, Novolog Novo Nordisk Diabetes $2.58 billion Data source: Centers for Medicare and Medicaid Services. Johnson & Johnson, AbbVie, and Bayer With three drugs on this list, Johnson & Johnson will be doing a lot of negotiating with Medicare in the months ahead. Imbruvica is a blood cancer treatment that J&J developed in collaboration with Pharmacyclics, which was subsequently acquired by AbbVie. | Eliquis Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) Blood clots $16.48 billion Jardiance Eli Lilly (NYSE: LLY) and Boehringer Ingelheim Diabetes $7.06 billion Xarelto Johnson & Johnson (NYSE: JNJ) and Bayer (OTC: BAYR.Y) Blood clots $6.03 billion Januvia Merck (NYSE: MRK) Diabetes $4.09 billion Farxiga AstraZeneca (NASDAQ: AZN) Diabetes $3.27 billion Entresto Novartis Heart failure $2.88 billion Enbrel Amgen Arthritis $2.79 billion Imbruvica AbbVie (NYSE: ABBV) and Johnson & Johnson Blood cancer $2.66 billion Stelara Johnson & Johnson Psoriasis $2.64 billion Fiasp, Novolog Novo Nordisk Diabetes $2.58 billion Data source: Centers for Medicare and Medicaid Services. Johnson & Johnson, AbbVie, and Bayer With three drugs on this list, Johnson & Johnson will be doing a lot of negotiating with Medicare in the months ahead. Imbruvica is a blood cancer treatment that J&J developed in collaboration with Pharmacyclics, which was subsequently acquired by AbbVie. | Eliquis Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) Blood clots $16.48 billion Jardiance Eli Lilly (NYSE: LLY) and Boehringer Ingelheim Diabetes $7.06 billion Xarelto Johnson & Johnson (NYSE: JNJ) and Bayer (OTC: BAYR.Y) Blood clots $6.03 billion Januvia Merck (NYSE: MRK) Diabetes $4.09 billion Farxiga AstraZeneca (NASDAQ: AZN) Diabetes $3.27 billion Entresto Novartis Heart failure $2.88 billion Enbrel Amgen Arthritis $2.79 billion Imbruvica AbbVie (NYSE: ABBV) and Johnson & Johnson Blood cancer $2.66 billion Stelara Johnson & Johnson Psoriasis $2.64 billion Fiasp, Novolog Novo Nordisk Diabetes $2.58 billion Data source: Centers for Medicare and Medicaid Services. Johnson & Johnson, AbbVie, and Bayer With three drugs on this list, Johnson & Johnson will be doing a lot of negotiating with Medicare in the months ahead. Imbruvica is a blood cancer treatment that J&J developed in collaboration with Pharmacyclics, which was subsequently acquired by AbbVie. |
22227.0 | 2023-09-01 00:00:00 UTC | 'Barbie Botox' goes viral but doctors inject caution | ABBV | https://www.nasdaq.com/articles/barbie-botox-goes-viral-but-doctors-inject-caution | nan | nan | By Leroy Leo
Sept 1 (Reuters) - The viral trend of "Barbie Botox" that has women as young as in their 20s rush for toxin-based procedures to mimic the looks of the movie's lead actress Margot Robbie may lead to resistance among users and hinder medical use in future, doctors cautioned.
The procedure, also known "Trap Tox", has been widely used by doctors to inject a class of drugs known as botulinum toxins, such as Botox, into the trapezius muscles of the upper back to treat migraines and shoulder pain.
But since the "Barbie" movie released in July, there has been an uptick in demand for use as a cosmetic procedure. The hashtag BarbieBotox had 11.2 million views on TikTok.
The procedure "supposedly slims the neck and somehow that got attributed to the actress that's playing Barbie," Revance Therapeutics RVNC.O CEO Dustin Sjuts told Reuters in an interview.
"They're not treating wrinkles or lax skin. They want less girth to their neck, a slimmer, more contoured neck," said Scot Glasberg, president-elect of Plastic Surgery Foundation, who practices in New York.
The approval of such injections for cosmetic purposes is only limited to procedures involving the face, making the use of the injection in the trapezius "off-label".
The U.S. Food and Drug Administration places the responsibility of "off-label" use on health professionals to judge such procedures as "medically appropriate".
Meanwhile, Revance and Evolus Inc EOLS.O, which make similar toxins under the brand Daxxify and Jeuveau, respectively, told Reuters that though "Barbie Botox" has picked up in recent months, they do not see the trend significantly boosting sales.
Botox maker AbbVie Inc ABBV.N declined to comment.
Historically, people above 40 years would opt for toxin-based injections - a market estimated to be worth over $3 billion in annual sales in the U.S.
However, the doctors said they were concerned about a rise in use among younger women - and six doctors warned that procedures by underqualified staff at some medispas raised the risk of complications.
RESISTANCE RISK
The jump in use among younger women with typically stronger immune system also raises the risk that the products could become less effective over time, said Shilpi Kheterpal, a dermatologist at Cleveland Clinic.
"If they're doing high amounts of Botox very frequently... they may lose its effect over time, not just with Botox, but with the other products in the market too, because they all have some similar molecule," Kheterpal said.
Doctors also stressed the risk with administration by people who may not be properly qualified, especially at medispas where there is little oversight.
"There are no regulations on the type of doctor that can run a medispa," said Melissa Levoska, assistant professor of dermatology at the Icahn School of Medicine at Mount Sinai in New York.
"So, a family medicine physician or OB-GYN physician can technically open up a medispa, and now increasingly there are also physician assistants and nurse practitioners who are doing injections."
The toxins are generally safe, but a potential risk, if not injected properly, could be the impact on neighboring muscles which might weaken them for months.
"The science isn't quite there yet, in order to support the clinical profile of it," said Evolus CEO David Moatazedi.
"However, we do know neurotoxins have been used at doses significantly higher for therapeutic purposes than the level of being used for aesthetic purposes and we know the products are safe."
(Reporting by Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila)
((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Botox maker AbbVie Inc ABBV.N declined to comment. The procedure, also known "Trap Tox", has been widely used by doctors to inject a class of drugs known as botulinum toxins, such as Botox, into the trapezius muscles of the upper back to treat migraines and shoulder pain. Meanwhile, Revance and Evolus Inc EOLS.O, which make similar toxins under the brand Daxxify and Jeuveau, respectively, told Reuters that though "Barbie Botox" has picked up in recent months, they do not see the trend significantly boosting sales. | Botox maker AbbVie Inc ABBV.N declined to comment. By Leroy Leo Sept 1 (Reuters) - The viral trend of "Barbie Botox" that has women as young as in their 20s rush for toxin-based procedures to mimic the looks of the movie's lead actress Margot Robbie may lead to resistance among users and hinder medical use in future, doctors cautioned. The procedure "supposedly slims the neck and somehow that got attributed to the actress that's playing Barbie," Revance Therapeutics RVNC.O CEO Dustin Sjuts told Reuters in an interview. | Botox maker AbbVie Inc ABBV.N declined to comment. By Leroy Leo Sept 1 (Reuters) - The viral trend of "Barbie Botox" that has women as young as in their 20s rush for toxin-based procedures to mimic the looks of the movie's lead actress Margot Robbie may lead to resistance among users and hinder medical use in future, doctors cautioned. The procedure, also known "Trap Tox", has been widely used by doctors to inject a class of drugs known as botulinum toxins, such as Botox, into the trapezius muscles of the upper back to treat migraines and shoulder pain. | Botox maker AbbVie Inc ABBV.N declined to comment. The procedure "supposedly slims the neck and somehow that got attributed to the actress that's playing Barbie," Revance Therapeutics RVNC.O CEO Dustin Sjuts told Reuters in an interview. The approval of such injections for cosmetic purposes is only limited to procedures involving the face, making the use of the injection in the trapezius "off-label". |
22228.0 | 2023-09-01 00:00:00 UTC | Pharma Stock Roundup: J&J's New '23 View After Kenvue Separation, Regulatory Updates | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-jjs-new-23-view-after-kenvue-separation-regulatory-updates | nan | nan | This week, J&J JNJ updated its financial guidance for 2023 after it completed the spin-out of its Consumer Health unit, Kenvue. The European Commission approved Merck’s MRK blockbuster cancer drug Keytruda for the first-line treatment of certain types of patients with gastric cancer. AbbVie ABBV filed applications in the United States and Europe seeking approval of its medicine, Skyrizi for a new indication, ulcerative colitis.
The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) recommended marketing authorization for Pfizer PFE and partner BioNTech’s Omicron XBB.1.5-adapted monovalent COVID-19 vaccine. Roche RHHBY announced positive data from a phase III study evaluating its cancer drug Alecensa for people with ALK-positive early-stage lung cancer.
Recap of the Week’s Most Important Stories
J&J’s Updates 2023 Guidance After Final Kenvue Separation: J&J updated its financial guidance for 2023 after the final separation of its consumer health division, Kenvue. With the complete separation of the Consumer Health segment, J&J has become a two-sector company focused on the Pharmaceutical and MedTech fields. Kenvue will now operate as a separate and fully independent company.
This month, J&J made an exchange offer for shares of Kenvue that it owned to complete the separation. After completion of the exchange offer, J&J now has a 9.5% stake (approximately 180 million shares) in Kenvue’s common stock, which it may monetize in a tax-efficient manner in 2024.
J&J now expects revenues in the range of $83.2 billion-$84.0 billion compared with the earlier expectation of $98.8 billion to $99.8 billion. This new guidance excludes any revenues from the Consumer Health segment and now reflects sales from only the Pharmaceutical and MedTech units. Revenue growth is now expected in the range of 7%-8% versus the prior expectation of 6.5%-7.5%. The adjusted earnings per share guidance was lowered from a range of $10.70 -$10.80 to $10.00-$10.10. However, the earnings range implies growth in the range of 12%-13%, which is higher than the prior expectation of 5.5%-6.5%.
J&J submitted a supplemental new drug application (sNDA) to the FDA seeking full approval of Balversa for treating metastatic or unresectable urothelial carcinoma (UC). Balversa was approved by the FDA under the accelerated pathway in 2019 for FGFR-altered metastatic urothelial cancer. The latest sNDA is based on data from a cohort of the phase III THOR study, which was to be used as a confirmatory study to support continued approval of the drug in the UC indication. Data from this cohort of the THOR study showed that Balversa reduced the risk of death in patients by 36% versus chemotherapy.
J&J also filed a supplemental biologics license application (sBLA) to the FDA seeking approval of its drug Rybrevant in combination with chemotherapy for first-line treatment of patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) with EGFR exon 20 insertion mutations. The sBLA is based on data from the phase III PAPILLON study. The FDA had granted accelerated approval to Rybrevant in 2021 for patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations whose disease progressed on or after platinum-based chemotherapy. PAPILLON is also a confirmatory study for this accelerated approval.
AbbVie Files Applications With FDA and EMA for Skyrizi for Ulcerative Colitis: AbbVie submitted regulatory applications to the FDA and EMA seeking approval of its drug Skyrizi (risankizumab) for moderately to severely active ulcerative colitis. Skyrizi is presently approved in the United States and Europe for Crohn's disease, psoriatic arthritis and psoriasis. The regulatory applications filed to the FDA and the EMA were based on data from two phase III studies, an induction study, INSPIRE, and a maintenance study, COMMAND. Data from these studies showed that Skyrizi, as an induction and maintenance treatment, achieved the primary endpoint of clinical remission (per Adapted Mayo Score) and key secondary endpoints
EU Approval for Merck’s Keytruda in First-Line Gastric Cancer: The European Commission approved the expanded use of Keytruda plus trastuzumab and chemotherapy as first-line treatment for HER2-positive advanced gastric or gastroesophageal junction adenocarcinoma in adults whose tumors express PD-L1 (Combined Positive Score [CPS] ≥1) in the European Union. The EU approval was based on positive progression-free data from the phase III KEYNOTE-811 study. Keytruda is already approved for similar use in the United States.
CHMP Nod for Pfizer/BioNTech’s Updated COVID Jab: The CHMP has given a positive opinion, recommending approval for Pfizer/BioNTech’s Omicron XBB.1.5-adapted monovalent COVID-19 vaccine. Pfizer and BioNTech expect a final decision from the European Commission soon. The companies are preparing to roll out the updated vaccine to applicable EU member states immediately after a decision from the EMA. The companies have commercially manufactured the updated COVID-19 vaccine (at risk) to ensure supply readiness for the upcoming fall and winter seasons when demand is likely to increase.
Roche’s Early-Stage Lung Cancer Study on Alecensa Meets Goal: Roche’s cancer drug Alecensa reduced the risk of disease recurrence or death as adjuvant therapy for patients with early-stage ALK-positive NSCLC in the phase ALINA study. The ALINA study met its primary endpoint by demonstrating a statistically significant and clinically meaningful improvement in disease-free survival compared with platinum-based chemotherapy at a prespecified interim analysis. However, at the time of this analysis, overall survival data were immature.
Alecensa is presently approved for ALK-positive advanced NSCLC. The latest data shows the potential of the drug to treat early-stage lung cancer disease as it reduced disease recurrence in the early setting.
The NYSE ARCA Pharmaceutical Index rose 0.07% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Lilly rose the most (up 1.1%), while Pfizer declined the most (2.2%).
In the past six months, Lilly has risen the most (75.9%), while Pfizer has declined the most (12.9%).
(See the last pharma stock roundup here: PFE Gets Nod for RSV Vaccine, J&J Finalizes Kenvue Separation)
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. | AbbVie ABBV filed applications in the United States and Europe seeking approval of its medicine, Skyrizi for a new indication, ulcerative colitis. AbbVie Files Applications With FDA and EMA for Skyrizi for Ulcerative Colitis: AbbVie submitted regulatory applications to the FDA and EMA seeking approval of its drug Skyrizi (risankizumab) for moderately to severely active ulcerative colitis. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Files Applications With FDA and EMA for Skyrizi for Ulcerative Colitis: AbbVie submitted regulatory applications to the FDA and EMA seeking approval of its drug Skyrizi (risankizumab) for moderately to severely active ulcerative colitis. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV filed applications in the United States and Europe seeking approval of its medicine, Skyrizi for a new indication, ulcerative colitis. | Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV filed applications in the United States and Europe seeking approval of its medicine, Skyrizi for a new indication, ulcerative colitis. AbbVie Files Applications With FDA and EMA for Skyrizi for Ulcerative Colitis: AbbVie submitted regulatory applications to the FDA and EMA seeking approval of its drug Skyrizi (risankizumab) for moderately to severely active ulcerative colitis. | AbbVie ABBV filed applications in the United States and Europe seeking approval of its medicine, Skyrizi for a new indication, ulcerative colitis. AbbVie Files Applications With FDA and EMA for Skyrizi for Ulcerative Colitis: AbbVie submitted regulatory applications to the FDA and EMA seeking approval of its drug Skyrizi (risankizumab) for moderately to severely active ulcerative colitis. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22229.0 | 2023-09-01 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-109 | 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
Target Corp (Symbol: TGT) $126.55 $151.64 19.83%
AbbVie Inc (Symbol: ABBV) $146.96 $173.31 17.93%
Sherwin-Williams Co (Symbol: SHW) $271.72 $304.11 11.92%
Brady Corp (Symbol: BRC) $50.44 $55.50 10.03%
Dover Corp (Symbol: DOV) $148.30 $163.00 9.91%
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
Target Corp (Symbol: TGT) 3.48% 19.83% 23.31%
AbbVie Inc (Symbol: ABBV) 4.03% 17.93% 21.96%
Sherwin-Williams Co (Symbol: SHW) 0.89% 11.92% 12.81%
Brady Corp (Symbol: BRC) 1.82% 10.03% 11.85%
Dover Corp (Symbol: DOV) 1.38% 9.91% 11.29%
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
Target Corp (Symbol: TGT) $3.78 $4.34 14.81%
AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79%
Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77%
Brady Corp (Symbol: BRC) $0.9 $0.92 2.22%
Dover Corp (Symbol: DOV) $2.005 $2.025 1.00%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Target Corp (Symbol: TGT) $126.55 $151.64 19.83% AbbVie Inc (Symbol: ABBV) $146.96 $173.31 17.93% Sherwin-Williams Co (Symbol: SHW) $271.72 $304.11 11.92% Brady Corp (Symbol: BRC) $50.44 $55.50 10.03% Dover Corp (Symbol: DOV) $148.30 $163.00 9.91% 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. Target Corp (Symbol: TGT) 3.48% 19.83% 23.31% AbbVie Inc (Symbol: ABBV) 4.03% 17.93% 21.96% Sherwin-Williams Co (Symbol: SHW) 0.89% 11.92% 12.81% Brady Corp (Symbol: BRC) 1.82% 10.03% 11.85% Dover Corp (Symbol: DOV) 1.38% 9.91% 11.29% Another consideration with dividend growth stocks is just how much the dividend is growing. Target Corp (Symbol: TGT) $3.78 $4.34 14.81% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% Brady Corp (Symbol: BRC) $0.9 $0.92 2.22% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% These five stocks are part of our full Dividend Aristocrats List. | Target Corp (Symbol: TGT) $126.55 $151.64 19.83% AbbVie Inc (Symbol: ABBV) $146.96 $173.31 17.93% Sherwin-Williams Co (Symbol: SHW) $271.72 $304.11 11.92% Brady Corp (Symbol: BRC) $50.44 $55.50 10.03% Dover Corp (Symbol: DOV) $148.30 $163.00 9.91% 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. Target Corp (Symbol: TGT) 3.48% 19.83% 23.31% AbbVie Inc (Symbol: ABBV) 4.03% 17.93% 21.96% Sherwin-Williams Co (Symbol: SHW) 0.89% 11.92% 12.81% Brady Corp (Symbol: BRC) 1.82% 10.03% 11.85% Dover Corp (Symbol: DOV) 1.38% 9.91% 11.29% Another consideration with dividend growth stocks is just how much the dividend is growing. Target Corp (Symbol: TGT) $3.78 $4.34 14.81% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% Brady Corp (Symbol: BRC) $0.9 $0.92 2.22% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% These five stocks are part of our full Dividend Aristocrats List. | Target Corp (Symbol: TGT) $126.55 $151.64 19.83% AbbVie Inc (Symbol: ABBV) $146.96 $173.31 17.93% Sherwin-Williams Co (Symbol: SHW) $271.72 $304.11 11.92% Brady Corp (Symbol: BRC) $50.44 $55.50 10.03% Dover Corp (Symbol: DOV) $148.30 $163.00 9.91% 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. Target Corp (Symbol: TGT) 3.48% 19.83% 23.31% AbbVie Inc (Symbol: ABBV) 4.03% 17.93% 21.96% Sherwin-Williams Co (Symbol: SHW) 0.89% 11.92% 12.81% Brady Corp (Symbol: BRC) 1.82% 10.03% 11.85% Dover Corp (Symbol: DOV) 1.38% 9.91% 11.29% Another consideration with dividend growth stocks is just how much the dividend is growing. Target Corp (Symbol: TGT) $3.78 $4.34 14.81% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% Brady Corp (Symbol: BRC) $0.9 $0.92 2.22% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% These five stocks are part of our full Dividend Aristocrats List. | Target Corp (Symbol: TGT) $126.55 $151.64 19.83% AbbVie Inc (Symbol: ABBV) $146.96 $173.31 17.93% Sherwin-Williams Co (Symbol: SHW) $271.72 $304.11 11.92% Brady Corp (Symbol: BRC) $50.44 $55.50 10.03% Dover Corp (Symbol: DOV) $148.30 $163.00 9.91% 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. Target Corp (Symbol: TGT) 3.48% 19.83% 23.31% AbbVie Inc (Symbol: ABBV) 4.03% 17.93% 21.96% Sherwin-Williams Co (Symbol: SHW) 0.89% 11.92% 12.81% Brady Corp (Symbol: BRC) 1.82% 10.03% 11.85% Dover Corp (Symbol: DOV) 1.38% 9.91% 11.29% Another consideration with dividend growth stocks is just how much the dividend is growing. Target Corp (Symbol: TGT) $3.78 $4.34 14.81% AbbVie Inc (Symbol: ABBV) $5.53 $5.85 5.79% Sherwin-Williams Co (Symbol: SHW) $2.35 $2.415 2.77% Brady Corp (Symbol: BRC) $0.9 $0.92 2.22% Dover Corp (Symbol: DOV) $2.005 $2.025 1.00% These five stocks are part of our full Dividend Aristocrats List. |
22230.0 | 2023-09-01 00:00:00 UTC | Should You Pick Merck Stock Over Coca-Cola? | ABBV | https://www.nasdaq.com/articles/should-you-pick-merck-stock-over-coca-cola | nan | nan | We believe that Merck stock (NYSE: MRK) and Coca-Cola stock (NYSE: KO) will offer little returns in the next three years. Although these companies are from different sectors, we compare them because they have a similar market capitalization of $260 billion to $280 billion. The decision to invest often comes down to finding the best stocks within the parameters of certain characteristics that suit an investment style. The size of profits can matter, as larger profits can imply greater market power. Since these stocks are from different sectors, comparing P/S against one another may not be helpful. We compare their current multiples with the historical ones in the sections below to better gauge their valuations.
Interestingly, Merck has had a Sharpe Ratio of 0.5 since early 2017, while the figure stood at 0.3 for Coca-Cola, lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
Looking at stock returns, MRK stock has seen a 1% fall this year, compared to a 5% fall for KO stock, and both have underperformed vis-a-vis broader indices, with the S&P500 rising 17%. There is more to the comparison, and in the sections below, we discuss the possible returns for Merck and Coca-Cola in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in this analysis.
1. Merck’s Revenue Growth Is Better
Merck’s revenue growth has been better, with a 15.1% average annual growth rate in the last three years, compared to 5.6% for Coca-Cola.
For Coca-Cola, both at-home and away-from-home channels have grown, primarily driven by solid pricing trends.
North America and Latin America segments saw strong 19% y-o-y sales growth in 2022, led by both volume growth and better price realization.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for its HPV vaccine – Gardasil.
Keytruda alone garnered $21 billion in sales in 2022, growing at a solid 22% y-o-y. Gardasil accounted for $7 billion in sales last year.
Our Merck Revenue Comparison and Coca-Cola Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, both companies are expected to see similar revenue growth in the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of about 2% for both – Merck and Coca-Cola, based on Trefis Machine Learning analysis.
Pricing will likely stabilize for Coca-Cola in the near term while Merck faces increased competition for its diabetes drugs – Januvia and Janumet.
Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Coca-Cola Is More Profitable
Coca-Cola’s reported operating margin slid from 29.9% in 2019 to 28.8% in 2022, partly due to a rise in raw material and packaging costs, while Merck’s operating margin rose from 18.7% to 30.3% over this period.
Looking at the last twelve-month period, Coca-Cola’s operating margin of 28.9% fares much better than 10.3% for Merck. The decline for Merck can be attributed to a $10 billion charge recorded in Q2’23 for the Prometheus acquisition.
Our Merck Operating Income Comparison and Coca-Cola Operating Income Comparison dashboards have more details.
Looking at financial risk, both are comparable. Merck’s 13% debt as a percentage of equity is slightly lower than 16% for Coca-Cola, and its 7% cash as a percentage of assets is lower than 14% for the latter, implying that Merck has a better debt position, but Coca-Cola has more cash cushion.
3. The Net of It All
We see that Merck has demonstrated better revenue growth and has a better debt position. On the other hand, Coca-Cola is more profitable and has more cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both companies will offer similar returns of 5%-7% in the next three years.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for Merck over this period vs. a 7% expected return for Coca-Cola, based on Trefis Machine Learning analysis – Merck vs. Coca-Cola – which also provides more details on how we arrive at these numbers.
If we compare the current valuation multiple to the historical average, Coca-Cola fares slightly better. Merck stock trades at 4.7x revenues, compared to its last five-year average of 5.2x, while Coca-Cola stock trades at 5.9x trailing revenues vs. the last five-year average of 6.8x.
Our Merck (MRK) Valuation Ratios Comparison and Coca-Cola (KO) Valuation Ratios Comparison have more details.
There are better opportunities over these two stocks. Our Better Bets Than KO Stock and Better Bets Than MRK Stock dashboards detail S&P500 stocks that can offer better returns in the next three years.
While MRK stock may offer little returns in the next three years, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return 3% -1% 87%
KO Return -2% -5% 46%
S&P 500 Return -2% 17% 101%
Trefis Reinforced Value Portfolio -4% 31% 573%
[1] Month-to-date and year-to-date as of 8/30/2023
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for its HPV vaccine – Gardasil. Pricing will likely stabilize for Coca-Cola in the near term while Merck faces increased competition for its diabetes drugs – Januvia and Janumet. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. | We believe that Merck stock (NYSE: MRK) and Coca-Cola stock (NYSE: KO) will offer little returns in the next three years. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for Merck over this period vs. a 7% expected return for Coca-Cola, based on Trefis Machine Learning analysis – Merck vs. Coca-Cola – which also provides more details on how we arrive at these numbers. Our Merck (MRK) Valuation Ratios Comparison and Coca-Cola (KO) Valuation Ratios Comparison have more details. | Merck’s Revenue Growth Is Better Merck’s revenue growth has been better, with a 15.1% average annual growth rate in the last three years, compared to 5.6% for Coca-Cola. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for Merck over this period vs. a 7% expected return for Coca-Cola, based on Trefis Machine Learning analysis – Merck vs. Coca-Cola – which also provides more details on how we arrive at these numbers. Merck stock trades at 4.7x revenues, compared to its last five-year average of 5.2x, while Coca-Cola stock trades at 5.9x trailing revenues vs. the last five-year average of 6.8x. | Merck’s Revenue Growth Is Better Merck’s revenue growth has been better, with a 15.1% average annual growth rate in the last three years, compared to 5.6% for Coca-Cola. Our Merck Revenue Comparison and Coca-Cola Revenue Comparison dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for Merck over this period vs. a 7% expected return for Coca-Cola, based on Trefis Machine Learning analysis – Merck vs. Coca-Cola – which also provides more details on how we arrive at these numbers. |
22231.0 | 2023-09-01 00:00:00 UTC | CVS Just Made a Major New Announcement, But Should You Buy It? | ABBV | https://www.nasdaq.com/articles/cvs-just-made-a-major-new-announcement-but-should-you-buy-it | nan | nan | On August 23, CVS Health (NYSE: CVS) made waves when it announced that it would be initiating a new subsidiary called Cordavis that will be devoted to commercializing biosimilar medications. Now, investors can look forward to the company posting a faster pace of recurring revenue growth as it brings copies of best-selling drugs to market over the coming years.
But does the launch of Cordavis make the stock a buy? Let's dive in and figure out the financial impacts to answer that question.
Aiming for a Humira biosimilar right out of the gate
Biosimilar medicines are appealing to produce for a couple of reasons. First, they don't incur many research and development (R&D) expenses to commercialize in comparison to discovering and testing a drug from scratch. All that biosimilar manufacturers need to do is perform a couple of clinical trials to demonstrate that their products function just as well as the branded versions they're trying to copy. Second, biosimilars have a proven market as sales of the branded version make for a good estimation of demand. That minimizes the risk of a commercial flop.
So when CVS said that the first medicine Cordavis would produce is a biosimilar of Humira, AbbVie's (NYSE: ABBV) biologic for rheumatoid arthritis as well as a plethora of other conditions, it was pretty clear that it wouldn't have any trouble generating a boatload of fresh revenue down the line. In 2022 alone, sales of the drug totaled more than $21 billion, and it's definitively one of the biggest-grossing medicines of all time. Now that Humira's exclusivity protections have lapsed, CVS could thus be part of the ongoing gold rush to commercialize a copy and grab a share of its gargantuan market.
By Q1 of 2024, it plans to have its candidate finalized and out the door. It'll be priced at about 20% of brand-name Humira, so it's safe to say that it will be able to find buyers. But it won't be the only competitor in the market as there's no drug that's a higher priority for generic manufacturers to make than Humira at the moment.
The synergies could eventually be huge
CVS doesn't plan to do any R&D itself for any of its Cordavis projects, nor has it disclosed what it'll be doing after launching its Humira biosimilar. Nonetheless, in the long term, the move into biosimilars could be a significant driver of profits.
Given that the company is a major insurer and increasingly also a distributor of primary healthcare, it's well-positioned to make the most out of its biosimilar segment. It will likely be able to take advantage of economies of scale in manufacturing as well as distribution. Both of those could contribute to its developing a very difficult-to-emulate competitive advantage in the biosimilars market. But even with the launch of its copy of Humira, investors should be realistic about what Cordavis will accomplish for CVS stock in the near-term.
CVS had a top line of more than $322 billion in 2022. If we assume it can capture the entire market for Humira at an 80% lower price point, it would bring in an additional $4.2 billion per year. That would mean increasing its revenue by about 1%. And there's basically zero chance that it'll capture the entire market, especially not right out of the gate.
Therefore, while the plans to compete in the generics/biosimilars market is indeed a point in favor of the bull thesis for this stock, it isn't a reason to buy it in and of itself. It'll take years for Cordavis to spin up enough different biosimilars to be a significant driver of growth. If you were already considering a purchase of CVS, think of the new development as a nudge.
But if you're looking for an actual growth stock rather than a behemoth that's slowly turning to chart a slightly faster course, you'll be disappointed if you buy it today.
10 stocks we like better than CVS Health
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So when CVS said that the first medicine Cordavis would produce is a biosimilar of Humira, AbbVie's (NYSE: ABBV) biologic for rheumatoid arthritis as well as a plethora of other conditions, it was pretty clear that it wouldn't have any trouble generating a boatload of fresh revenue down the line. Now, investors can look forward to the company posting a faster pace of recurring revenue growth as it brings copies of best-selling drugs to market over the coming years. Now that Humira's exclusivity protections have lapsed, CVS could thus be part of the ongoing gold rush to commercialize a copy and grab a share of its gargantuan market. | So when CVS said that the first medicine Cordavis would produce is a biosimilar of Humira, AbbVie's (NYSE: ABBV) biologic for rheumatoid arthritis as well as a plethora of other conditions, it was pretty clear that it wouldn't have any trouble generating a boatload of fresh revenue down the line. On August 23, CVS Health (NYSE: CVS) made waves when it announced that it would be initiating a new subsidiary called Cordavis that will be devoted to commercializing biosimilar medications. Now, investors can look forward to the company posting a faster pace of recurring revenue growth as it brings copies of best-selling drugs to market over the coming years. | So when CVS said that the first medicine Cordavis would produce is a biosimilar of Humira, AbbVie's (NYSE: ABBV) biologic for rheumatoid arthritis as well as a plethora of other conditions, it was pretty clear that it wouldn't have any trouble generating a boatload of fresh revenue down the line. On August 23, CVS Health (NYSE: CVS) made waves when it announced that it would be initiating a new subsidiary called Cordavis that will be devoted to commercializing biosimilar medications. The synergies could eventually be huge CVS doesn't plan to do any R&D itself for any of its Cordavis projects, nor has it disclosed what it'll be doing after launching its Humira biosimilar. | So when CVS said that the first medicine Cordavis would produce is a biosimilar of Humira, AbbVie's (NYSE: ABBV) biologic for rheumatoid arthritis as well as a plethora of other conditions, it was pretty clear that it wouldn't have any trouble generating a boatload of fresh revenue down the line. But does the launch of Cordavis make the stock a buy? If we assume it can capture the entire market for Humira at an 80% lower price point, it would bring in an additional $4.2 billion per year. |
22232.0 | 2023-08-31 00:00:00 UTC | Sum Up The Parts: HDV Could Be Worth $117 | ABBV | https://www.nasdaq.com/articles/sum-up-the-parts%3A-hdv-could-be-worth-%24117 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core High Dividend ETF (Symbol: HDV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $116.70 per unit.
With HDV trading at a recent price near $103.43 per unit, that means that analysts see 12.83% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of HDV's underlying holdings with notable upside to their analyst target prices are Tapestry Inc (Symbol: TPR), Garmin Ltd (Symbol: GRMN), and AbbVie Inc (Symbol: ABBV). Although TPR has traded at a recent price of $33.42/share, the average analyst target is 54.10% higher at $51.50/share. Similarly, GRMN has 16.96% upside from the recent share price of $105.85 if the average analyst target price of $123.80/share is reached, and analysts on average are expecting ABBV to reach a target price of $173.31/share, which is 16.85% above the recent price of $148.32. Below is a twelve month price history chart comparing the stock performance of TPR, GRMN, and ABBV:
Combined, TPR, GRMN, and ABBV represent 6.77% of the iShares Core High Dividend ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares Core High Dividend ETF HDV $103.43 $116.70 12.83%
Tapestry Inc TPR $33.42 $51.50 54.10%
Garmin Ltd GRMN $105.85 $123.80 16.96%
AbbVie Inc ABBV $148.32 $173.31 16.85%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of TPR, GRMN, and ABBV: Combined, TPR, GRMN, and ABBV represent 6.77% of the iShares Core High Dividend ETF. iShares Core High Dividend ETF HDV $103.43 $116.70 12.83% Tapestry Inc TPR $33.42 $51.50 54.10% Garmin Ltd GRMN $105.85 $123.80 16.96% AbbVie Inc ABBV $148.32 $173.31 16.85% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of HDV's underlying holdings with notable upside to their analyst target prices are Tapestry Inc (Symbol: TPR), Garmin Ltd (Symbol: GRMN), and AbbVie Inc (Symbol: ABBV). | Three of HDV's underlying holdings with notable upside to their analyst target prices are Tapestry Inc (Symbol: TPR), Garmin Ltd (Symbol: GRMN), and AbbVie Inc (Symbol: ABBV). Below is a twelve month price history chart comparing the stock performance of TPR, GRMN, and ABBV: Combined, TPR, GRMN, and ABBV represent 6.77% of the iShares Core High Dividend ETF. iShares Core High Dividend ETF HDV $103.43 $116.70 12.83% Tapestry Inc TPR $33.42 $51.50 54.10% Garmin Ltd GRMN $105.85 $123.80 16.96% AbbVie Inc ABBV $148.32 $173.31 16.85% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, GRMN has 16.96% upside from the recent share price of $105.85 if the average analyst target price of $123.80/share is reached, and analysts on average are expecting ABBV to reach a target price of $173.31/share, which is 16.85% above the recent price of $148.32. Three of HDV's underlying holdings with notable upside to their analyst target prices are Tapestry Inc (Symbol: TPR), Garmin Ltd (Symbol: GRMN), and AbbVie Inc (Symbol: ABBV). Below is a twelve month price history chart comparing the stock performance of TPR, GRMN, and ABBV: Combined, TPR, GRMN, and ABBV represent 6.77% of the iShares Core High Dividend ETF. | Below is a twelve month price history chart comparing the stock performance of TPR, GRMN, and ABBV: Combined, TPR, GRMN, and ABBV represent 6.77% of the iShares Core High Dividend ETF. Three of HDV's underlying holdings with notable upside to their analyst target prices are Tapestry Inc (Symbol: TPR), Garmin Ltd (Symbol: GRMN), and AbbVie Inc (Symbol: ABBV). Similarly, GRMN has 16.96% upside from the recent share price of $105.85 if the average analyst target price of $123.80/share is reached, and analysts on average are expecting ABBV to reach a target price of $173.31/share, which is 16.85% above the recent price of $148.32. |
22233.0 | 2023-08-31 00:00:00 UTC | Building Wealth with Spinoffs: How Adding These Gems Can Transform Your Portfolio | ABBV | https://www.nasdaq.com/articles/building-wealth-with-spinoffs%3A-how-adding-these-gems-can-transform-your-portfolio | nan | nan | Imagine discovering a treasure map that leads to the chest containing the loot. Consider that the investment world has its own version of these concealed treasures: Spinoffs. These financial treasures have the potential to reshape your entire investment voyage, not just enhance your portfolio. The catch? You must look for them and do some work. A tough ask, I know.
What is A Spinoff?
In a Spinoff, a parent company separates one of its business entities or divisions into a standalone, independent company. By distributing shares of the spun-off company to the current proprietors of the parent, two separate publicly listed entities are created. The new enterprise that emerges because of a Spinoff is often referred to as a "Spinoff company." Spinoffs can increase shareholder value by allowing distinct companies to focus on their core competencies and releasing hidden value in specific business divisions. In addition, it offers investors the option to invest in various companies based on their investment preferences and risk tolerance. Or, alternatively, eradicate them.
The media frequently gets it wrong when speaking about Spinoffs. This is a very important point to remember. A ‘true’ Spinoff only happens when a share of a division is distributed amongst existing shareholders that own the parent company. Contrary to the media, IPOs, Divestitures, carve-outs, split-offs, and split-ups are not Spinoffs and consequently, these transactions lose many of the value creating dynamics of the Spinoff corporate action. Cross-reference information from various trustworthy sources, particularly official business communication. To fully comprehend the Spinoff and its ramifications, investors should also look for information from reliable financial analysts, subject-matter experts, and formal regulatory filings, such as those with the Securities and Exchange Commission (SEC).
Do Spinoffs Outperform?
The “Spinoff” is an essentially inefficient method for distributing stock to the incorrect individuals. You receive shares whether you desire them or not. Typically, investors acquire these shares by default and sell them on the open market almost immediately, making them inexpensive companies that no one is interested in. They are occasionally referred to as "orphan securities." At this point, X marks the location, and digging should commence.
Why the dynamics of Spinoffs make it an essential area for an investor to analyze:
Studies have shown that Spinoffs have historically beaten the market by over 10 percent as the pure, newly focused business takes off.
Compensation for executives can be more closely correlated with business performance. The company will become smaller, which will increase the executives' motivation and sense of ownership.
Separating companies allows each entity to be properly valued and can sometimes unlock a “conglomerate discount."
Due to the likelihood that the company would be small and lack a roadshow, it is under-followed. As a result, there are more chances for investors to discover returns greater than the index.
The Edge Consulting Groups 20 year study shows that Spinoffs are likely to be taken over. Roughly 35 percent are acquired around the two-year mark post-Spinoff.
Typically, there are hundreds of Spinoff situations a year. Around 40 have over $1 billion in market cap. This is a sweet spot where liquidity and “real” companies come together in my opinion.
5 Reasons Why You Should Be Looking For These Situations
Including Spinoffs in your investment portfolio can provide a variety of benefits, including diversification, undervalued opportunities, and the potential for higher returns and enhanced performance.
1. Enhanced Diversification: Incorporating Spinoffs introduces a new layer of diversification. Since Spinoff companies often operate in different sectors than their parent companies, they can provide exposure to industries that might not have been represented in your portfolio. This helps spread risk and reduces the impact of negative events within a specific sector.
2. Undervalued Opportunities: Spinoffs are sometimes overlooked by the market, leading to potential undervaluation. This presents an opportunity for investors to purchase shares of promising companies at a lower price compared to their intrinsic value. As the market gradually recognizes their worth, these undervalued gems can yield substantial returns.
3. Focused Management: Spinoff companies can streamline operations and focus on their core competencies, which often leads to improved efficiency and performance. The management teams of these newly independent entities tend to be more agile and dedicated to the success of their specific business, potentially translating into better growth prospects.
4. Catalyst for Change: The newfound independence of a Spinoff can lead to strategic changes, such as cost-cutting initiatives, innovation, and targeted expansion plans. These changes can drive improved financial performance and boost shareholder value over time.
5. Potential for Outperformance: Historical data indicates that Spinoffs often outperform the broader market indices. This outperformance can be attributed to a combination of factors, including improved focus, better capital allocation decisions, and the market's eventual recognition of the Spinoff's value proposition.
Why isn’t Everybody Looking At Them?
I asked the legendary investor Joel Greenblatt this question once and he didn’t hesitate to give me the answer. ‘No one wants to do the work.’ Spinoffs analysis takes a lot of effort and, surprise, surprise, not many want to do it. However, as an investment veteran of over 30 years, I can categorically say that some of my most profitable ideas come from doing a hell of a lot of work and finding the angle and edge in the situation in this area. Furthermore, they are not promoted by brokers. Unlike an IPO there is no stock to sell you. You gain the Spinoff from holding the parent company whether you like it or not. This opens a whole range of dynamics that are interesting for investing.
Recent Spinoffs That You May Know
AbbVie (ABBV) (formerly known as Abbott Laboratories' biopharmaceutical business) was spun off from Abbott Laboratories in 2013. AbbVie has outperformed the S&P 500 by more than 200% since the spinoff.
Visa (V) was spun off from Bank of America (BAC) in 2008. Visa has outperformed the S&P 500 by more than 400% since Spinoff.
Mastercard (MA) was spun off from American Express (AXP) in 2006. Mastercard has outperformed the S&P 500 by more than 300% since Spinoff.
Agilent Technologies (A) was spun off from Hewlett-Packard (HPQ) in 1999. Agilent Technologies has outperformed the S&P 500 by more than 200% since the spinoff.
Johnson & Johnson's (JNJ) Life Sciences division was spun off as a separate company called Janssen Pharmaceutical Companies in 2017. Janssen Pharmaceutical Companies has outperformed the S&P 500 by more than 50% since the spinoff.
These are just a few examples of successful stock Spinoffs. There are many other examples, and the success of a spinoff can vary depending on several factors, such as the underlying business, the management team, and the market condition.
In Summary
If you are after hidden value where no one else is looking, look no further than this area of the market. There are services out there that can help, but ultimately a little hard work in a proven area will get you to some positive wealth creation a lot faster than competing with the masses.
On the date of publication, Jim Osman 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. | Recent Spinoffs That You May Know AbbVie (ABBV) (formerly known as Abbott Laboratories' biopharmaceutical business) was spun off from Abbott Laboratories in 2013. AbbVie has outperformed the S&P 500 by more than 200% since the spinoff. To fully comprehend the Spinoff and its ramifications, investors should also look for information from reliable financial analysts, subject-matter experts, and formal regulatory filings, such as those with the Securities and Exchange Commission (SEC). | Recent Spinoffs That You May Know AbbVie (ABBV) (formerly known as Abbott Laboratories' biopharmaceutical business) was spun off from Abbott Laboratories in 2013. AbbVie has outperformed the S&P 500 by more than 200% since the spinoff. Why the dynamics of Spinoffs make it an essential area for an investor to analyze: Studies have shown that Spinoffs have historically beaten the market by over 10 percent as the pure, newly focused business takes off. | Recent Spinoffs That You May Know AbbVie (ABBV) (formerly known as Abbott Laboratories' biopharmaceutical business) was spun off from Abbott Laboratories in 2013. AbbVie has outperformed the S&P 500 by more than 200% since the spinoff. In a Spinoff, a parent company separates one of its business entities or divisions into a standalone, independent company. | Recent Spinoffs That You May Know AbbVie (ABBV) (formerly known as Abbott Laboratories' biopharmaceutical business) was spun off from Abbott Laboratories in 2013. AbbVie has outperformed the S&P 500 by more than 200% since the spinoff. What is A Spinoff? |
22234.0 | 2023-08-31 00:00:00 UTC | The 3 Most Promising Biotech Stocks to Own Now | ABBV | https://www.nasdaq.com/articles/the-3-most-promising-biotech-stocks-to-own-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite polls showing most Americans are unhappy with the state of the economy, President Biden has defended his policies with claims he is improving the finances and living standards of minority voters. This commitment to economic inclusivity bodes well for overall economic health and long-term growth. As policies prioritize equitable access to resources such as healthcare, the increased consumer base can stimulate demand across industries. In particular, biotech stands to benefit as advancements in medical research align with a growing emphasis on health and wellness. These all contribute to a more resilient economy, and these top biotech stock picks are valuable investments to add to your portfolio.
AbbVie Incorporated (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie Incorporated (NYSE:ABBV) is an American pharmaceutical company that is recognized as a biotech industry leader.
The company’s major successes in clinical trials and obtaining government approvals for medications have positioned itself for revenue growth and global expansion. AbbVie and Genmab (NASDAQ:GMAB) have achieved positive clinical trial results for a Follicular Lymphoma treatment. Future meetings with global authorities could poise the treatment for global approval. Given the limited Follicular Lymphoma treatments available, the drug has market-disrupting potential.
Recently, Abbvie has also secured MHRA approval in the U.K. for RYNVOQ, a drug for Crohn’s disease. The U.S. Food and Drug Administration (FDA) has also granted expanded indication approval for Qulpta, Abbvie’s migraine-focused drug, broadening Abbvie’s U.S. market.
ABBV is one of the top biotech stock picks that you don’t want to miss out on.
Intellia Therapeutics (NTLA)
Source: rafapress / Shutterstock.com
Intellia Therapeutics (NASDAQ:NTLA) is a clinical-stage biotechnology company specializing in gene editing therapies. The company’s advantage over competitors is its ongoing clinical trials on potential cures for transthyretin amyloidosis (ATTR) and Hereditary Angioedema.
Although Intellia’s net operating cash flow has decreased by 49.78% year-over-year, company sales are growing faster than the sector, with sales increasing by 57.69% in 2022. Additionally, gross income growth has increased by 70.28%, a strong indicator of profitability. Supported by the strong financials, NTLA stock is up 9.5% year-to-date. And, analysts are giving the stock a buy rating, with a target price of $83.71.
Intellia’s key catalyst is its phase 1 and 2 treatments of ATTR and hereditary angioedema. CRISPR, a powerful genome editing system, is Intellia’s key tool which allows the company to have approaches to treat both genetic and autoimmune diseases. For investors interested in growing biotech stocks, NTLA is a must-buy because of its upcoming treatments for genetic diseases which use the most modern technologies available.
Vertex Pharmaceuticals (VRTX)
Source: Pavel Kapysh / Shutterstock.com
Vertex Pharmaceuticals (NASDAQ:VRTX) is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with life-threatening diseases. Vertex is known for its various FDA-approved medicines that treat cystic fibrosis, a rare genetic disease.
Customers are regularly taking medicine to prevent diseases, and this benefits Vertex perfectly. The drug manufacturer is relentlessly finding new therapies and cures. Vertex has multiple late stage trials in its pipeline including therapies for transfusion-dependent beta-thalassemia and sickle cell disease. These could further see FDA approval in a couple of years. Vertex is a major player in the pharmaceutical industry and its cutting-edge technology will continue to add growth for the company.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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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 Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Incorporated (NYSE:ABBV) is an American pharmaceutical company that is recognized as a biotech industry leader. AbbVie and Genmab (NASDAQ:GMAB) have achieved positive clinical trial results for a Follicular Lymphoma treatment. Recently, Abbvie has also secured MHRA approval in the U.K. for RYNVOQ, a drug for Crohn’s disease. | AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Incorporated (NYSE:ABBV) is an American pharmaceutical company that is recognized as a biotech industry leader. AbbVie and Genmab (NASDAQ:GMAB) have achieved positive clinical trial results for a Follicular Lymphoma treatment. Recently, Abbvie has also secured MHRA approval in the U.K. for RYNVOQ, a drug for Crohn’s disease. | AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Incorporated (NYSE:ABBV) is an American pharmaceutical company that is recognized as a biotech industry leader. AbbVie and Genmab (NASDAQ:GMAB) have achieved positive clinical trial results for a Follicular Lymphoma treatment. Recently, Abbvie has also secured MHRA approval in the U.K. for RYNVOQ, a drug for Crohn’s disease. | The U.S. Food and Drug Administration (FDA) has also granted expanded indication approval for Qulpta, Abbvie’s migraine-focused drug, broadening Abbvie’s U.S. market. AbbVie Incorporated (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie Incorporated (NYSE:ABBV) is an American pharmaceutical company that is recognized as a biotech industry leader. AbbVie and Genmab (NASDAQ:GMAB) have achieved positive clinical trial results for a Follicular Lymphoma treatment. |
22235.0 | 2023-08-31 00:00:00 UTC | Medicare Will Soon Negotiate Some Drug Prices. Is This a Threat to Johnson & Johnson's Earnings? | ABBV | https://www.nasdaq.com/articles/medicare-will-soon-negotiate-some-drug-prices.-is-this-a-threat-to-johnson-johnsons | nan | nan | The Centers for Medicare and Medicaid Services may be paying much less for some of the world's most commonly prescribed drugs in the coming years. That's because Medicare is about to start negotiating some of the prices it pays directly with pharmaceutical companies, based on a new legal framework that was instituted as part of President Joe Biden's Inflation Reduction Act.
This week, the Biden administration announced the names of the 10 drugs that are first up on the negotiations list. And three of them belong to Johnson & Johnson (NYSE: JNJ). In fact, one is its best-selling product, immunology drug Stelara.
Stelara brought in more than $9.7 billion last year for Johnson & Johnson. Its other two drugs on the list -- cancer treatment Imbruvica and blood thinner Xarelto -- each generate more than $2 billion annually. So, should we consider the price negotiations as a threat to its biggest revenue sources?
A promise to lower drug prices
The upcoming negotiations aim to start fulfilling President Biden's campaign promise to lower the prices Americans pay for certain costly prescription drugs. From June 2022 through May 2023, Medicare spent a total of $50 billion on all of the drugs on the negotiations list -- and of that, about $11 billion was for the three Johnson & Johnson drugs under consideration.
Medicare will begin negotiations with pharmaceutical companies this year -- companies may make counteroffers -- and Medicare will determine a final price by September of next year. The agency then will apply the prices as of Jan. 1, 2026. But one particular thing may make a drug ineligible for these potential price changes, and that's if a generic competitor enters the market.
This brings us back to Johnson & Johnson. The company expects Stelara biosimilars to enter the market as of 2025, and Xarelto may face competition by that year, too -- before the new prices are even put into place. Imbruvica, co-marketed by Johnson & Johnson and AbbVie, could see competitors enter the market later this decade.
This means price negotiations probably won't impact these Johnson & Johnson blockbusters. Of course, competition will -- but the company is prepared for that. Earlier this year, the company said its goal of reaching $57 billion in pharmaceutical sales in 2025 factored in the impact of Stelara's loss of exclusivity. Management said new products and certain key assets will drive pharmaceuticals growth. The company has nearly 100 candidates in the pipeline spanning therapeutic areas such as cardiovascular, infectious diseases, and immunology.
Lawsuits to halt the effort
Now, let's get back to the subject of Medicare price negotiations. It's also important to note that the expected negotiated price cuts may not even be implemented. Several big pharma companies (including Johnson & Johnson) and a pharmaceutical industry lobbying group have filed lawsuits aiming to halt the government's effort, calling the price negotiation aspect of the law unconstitutional. The administration has responded that there's nothing in the Constitution that would stop Medicare from negotiating prices with drugmakers.
So, let's get back to our question: Is this upcoming effort by Medicare a threat to Johnson & Johnson's earnings from its top-selling drugs? Of course, if lawsuits don't stop the negotiations and lower prices are applied, this could eventually hurt certain Johnson & Johnson's earnings -- and those of other pharma companies -- particularly as additional products are added to the negotiation list in future years.
But it's important to keep in mind that even in this scenario, the bottom-line impact on those companies may be limited. That's because to qualify for inclusion in the negotiations, a small-molecule drug must have been on the market for at least seven years, and a biologic must have been commercialized for 11 years or more. So companies will have opportunities to significantly grow any particular drug's revenue during that time.
If negotiations do become part of the landscape, we could even imagine pharmaceutical companies taking this into consideration -- and pricing certain innovative products higher in their earlier years on the market to compensate.
All of this means that Medicare price negotiations won't be a huge threat to Johnson & Johnson's profits from its top-selling products today or in the future. The company, and other pharma giants, may hit a stumbling block, but this challenge won't keep them down. And that's positive news for pharmaceutical 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. | Imbruvica, co-marketed by Johnson & Johnson and AbbVie, could see competitors enter the market later this decade. That's because Medicare is about to start negotiating some of the prices it pays directly with pharmaceutical companies, based on a new legal framework that was instituted as part of President Joe Biden's Inflation Reduction Act. The company expects Stelara biosimilars to enter the market as of 2025, and Xarelto may face competition by that year, too -- before the new prices are even put into place. | Imbruvica, co-marketed by Johnson & Johnson and AbbVie, could see competitors enter the market later this decade. A promise to lower drug prices The upcoming negotiations aim to start fulfilling President Biden's campaign promise to lower the prices Americans pay for certain costly prescription drugs. This means price negotiations probably won't impact these Johnson & Johnson blockbusters. | Imbruvica, co-marketed by Johnson & Johnson and AbbVie, could see competitors enter the market later this decade. From June 2022 through May 2023, Medicare spent a total of $50 billion on all of the drugs on the negotiations list -- and of that, about $11 billion was for the three Johnson & Johnson drugs under consideration. Several big pharma companies (including Johnson & Johnson) and a pharmaceutical industry lobbying group have filed lawsuits aiming to halt the government's effort, calling the price negotiation aspect of the law unconstitutional. | Imbruvica, co-marketed by Johnson & Johnson and AbbVie, could see competitors enter the market later this decade. Stelara brought in more than $9.7 billion last year for Johnson & Johnson. Medicare will begin negotiations with pharmaceutical companies this year -- companies may make counteroffers -- and Medicare will determine a final price by September of next year. |
22236.0 | 2023-08-30 00:00:00 UTC | Should First Trust Morningstar Dividend Leaders ETF (FDL) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-first-trust-morningstar-dividend-leaders-etf-fdl-be-on-your-investing-radar-7 | nan | nan | The First Trust Morningstar Dividend Leaders ETF (FDL) was launched on 03/09/2006, 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 First Trust Advisors. It has amassed assets over $4.32 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. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
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 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.47%.
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 Financials sector--about 22.20% of the portfolio. Energy and Healthcare round out the top three.
Looking at individual holdings, Verizon Communications Inc. (VZ) accounts for about 9.11% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX).
The top 10 holdings account for about 56.9% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has lost about -2.61% so far this year and is down about -0.66% in the last one year (as of 08/30/2023). In the past 52-week period, it has traded between $32.13 and $38.26.
The ETF has a beta of 0.87 and standard deviation of 15.74% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Morningstar Dividend Leaders ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FDL is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.85 billion in assets, Vanguard Value ETF has $101.65 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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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
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, Verizon Communications Inc. (VZ) accounts for about 9.11% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The First Trust Morningstar Dividend Leaders ETF (FDL) was launched on 03/09/2006, 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, Verizon Communications Inc. (VZ) accounts for about 9.11% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. | Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Verizon Communications Inc. (VZ) accounts for about 9.11% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). Alternatives First Trust Morningstar Dividend Leaders ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Verizon Communications Inc. (VZ) accounts for about 9.11% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The First Trust Morningstar Dividend Leaders ETF (FDL) was launched on 03/09/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. |
22237.0 | 2023-08-30 00:00:00 UTC | Healthcare Sector Could Propel Value Resurgence | ABBV | https://www.nasdaq.com/articles/healthcare-sector-could-propel-value-resurgence | nan | nan | As measured by the S&P 500 Growth and Value indexes, growth stocks are trouncing their value counterparts this year. On a year-to-date basis as of August 28, the gap between those two benchmarks is 1,000 basis points in favor of the growth index. Healthcare stocks are among the drags on the value universe this year with the cap-weighted version of the S&P 500 Health Care Index saddled with a modest year-to-date loss.
However, the sector has recently shown signs of life, indicating the Invesco S&P 500® Equal Weight Health Care ETF (RSPH) could be an exchange traded fund to watch into year-end.
The equal-weight RSPH is sporting a slight year-to-date gain. But it’s displayed some momentum over the past several months. This indicates that healthcare could be a contributor to a possible value resurgence.
“Among value stocks, names from the financial services, healthcare, energy, and technology sectors have led gains for the second half of the year so far. At the industry level, general drug manufacturers and diversified insurance companies have been the leading contributors,” according to Morningstar.
RSPH Could Be Late 2023 Winner
The $996.1 million RSPH follows the S&P 500® Equal Weight Health Care Index and holds 66 stocks. About a third of its roster is allocated to stocks with the value designation. That makes it a relevant ETF in the value conversation. Conversely, approximately 24% of its holdings are labeled growth stocks.
Count AbbVie Inc. (NYSE: ABBV) as among the RSPH components that appear undervalued today – a noteworthy assessment when accounting for the stock’s quality traits. That stock was the leading contributor to the Morningstar Value Index’s resurgence since June, notes the research firm.
Biotech giant and member of the Dow Jones Industrial Average Amgen (NASDAQ: AMGN), also an RSPH holding, has been contributing to the recent value rebound, too.
“Multinational biopharmaceutical company Amgen has made the second-largest contribution. (Up 17% for the period and now in fairly valued territory.),” added Morningstar.
In addition to healthcare, the other traditional value sectors are energy and financial services. But it might be healthcare that’s best positioned to outperform over the next several months. The group doesn’t possess the economic and interest rate sensitivity of financial services. Nor are healthcare’s fortunes determined by volatile energy prices, which could be damped if the global economy slows.
Additionally, RSPH member firms are supported by favorable demographic trends. And they have cleaner balance sheets than some other defensive and value sectors. And potentially better propensity to increase dividends.
For more news, information, and analysis, visit the Portfolio Strategies Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Count AbbVie Inc. (NYSE: ABBV) as among the RSPH components that appear undervalued today – a noteworthy assessment when accounting for the stock’s quality traits. Healthcare stocks are among the drags on the value universe this year with the cap-weighted version of the S&P 500 Health Care Index saddled with a modest year-to-date loss. However, the sector has recently shown signs of life, indicating the Invesco S&P 500® Equal Weight Health Care ETF (RSPH) could be an exchange traded fund to watch into year-end. | Count AbbVie Inc. (NYSE: ABBV) as among the RSPH components that appear undervalued today – a noteworthy assessment when accounting for the stock’s quality traits. However, the sector has recently shown signs of life, indicating the Invesco S&P 500® Equal Weight Health Care ETF (RSPH) could be an exchange traded fund to watch into year-end. “Among value stocks, names from the financial services, healthcare, energy, and technology sectors have led gains for the second half of the year so far. | Count AbbVie Inc. (NYSE: ABBV) as among the RSPH components that appear undervalued today – a noteworthy assessment when accounting for the stock’s quality traits. Healthcare stocks are among the drags on the value universe this year with the cap-weighted version of the S&P 500 Health Care Index saddled with a modest year-to-date loss. “Among value stocks, names from the financial services, healthcare, energy, and technology sectors have led gains for the second half of the year so far. | Count AbbVie Inc. (NYSE: ABBV) as among the RSPH components that appear undervalued today – a noteworthy assessment when accounting for the stock’s quality traits. As measured by the S&P 500 Growth and Value indexes, growth stocks are trouncing their value counterparts this year. “Among value stocks, names from the financial services, healthcare, energy, and technology sectors have led gains for the second half of the year so far. |
22238.0 | 2023-08-29 00:00:00 UTC | AbbVie (ABBV) Seeks Approval for Skyrizi for Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-seeks-approval-for-skyrizi-for-ulcerative-colitis | nan | nan | AbbVie ABBV announced the submission of regulatory applications to the FDA and European Medicines Agency (EMA) seeking approval of its drug Skyrizi (risankizumab) for a new indication, moderately to severely active ulcerative colitis.
Skyrizi, an interleukin-23 (IL-23) inhibitor, is presently approved in the United States and Europe for Crohn's disease, psoriatic arthritis and psoriasis.
The regulatory applications filed to the FDA and the EMA are based on data from two phase III studies, an induction study, INSPIRE, and a maintenance study, COMMAND. In these studies, a higher number of patients treated with risankizumab achieved the primary endpoint of clinical remission (per Adapted Mayo Score) compared to placebo. In addition, in both studies, more risankizumab-treated patients achieved the key secondary endpoints of endoscopic improvement and histologic endoscopic mucosal improvement compared to placebo.
Year to date, AbbVie’s shares have lost 8.8% against the industry’s 7.6% rise.
Image Source: Zacks Investment Research
Skyrizi recorded sales of $2.77 billion in the first half of 2023, up 49% year over year, on an operational basis. Skyrizi and AbbVie’s other newer inflammatory drug, Rinvoq are performing extremely well, bolstered by approvals in new indications. Both have the potential to drive the top line to make up for lost Humira revenues.
AbbVie’s key blockbuster immunology medicine, Humira lost patent protection in the United States in 2023.InJanuary, Amgen AMGN launched the first Humira biosimilar in the United States called Amjevita. After Amgen, several other companies like Boehringer Ingelheim, Coherus BioSciences and Novartis NVS also launched their own Humira biosimilars. Novartis, through its generic division, Sandoz, markets its Humira biosimilar under the trade name Hyrimoz. Humira biosimilars were launched in the EU in October 2018, which have been eroding international sales from the branded drug since 2019.
Skyrizi and Rinvoq recorded $4.85 billion in AbbVie’s combined sales in the first half of 2023.
AbbVie launched Skyrizi and Rinvoq across Humira's major indications, plus a distinct new indication, atopic dermatitis. With approvals for many new indications, sales of these drugs could be higher in future quarters, which should support top-line growth in the next few years. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. AbbVie expects combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion by 2025 and more than $21 billion by 2027.
AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim. AbbVie leads the global development and commercialization of Skyrizi.
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold).
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
A better-ranked large drug stock worth considering is J&J JNJ, which has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for J&J’s 2023 earnings per share have increased from $10.66 to $10.75 over the past 60 days. Estimates for 2024 have jumped from $11.01 per share to $11.30 in the same timeframe. J&J’s stock has declined 7% year to date.
J&J beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 5.58%, on average.
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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 the submission of regulatory applications to the FDA and European Medicines Agency (EMA) seeking approval of its drug Skyrizi (risankizumab) for a new indication, moderately to severely active ulcerative colitis. Year to date, AbbVie’s shares have lost 8.8% against the industry’s 7.6% rise. Skyrizi and AbbVie’s other newer inflammatory drug, Rinvoq are performing extremely well, bolstered by approvals in new indications. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : 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 announced the submission of regulatory applications to the FDA and European Medicines Agency (EMA) seeking approval of its drug Skyrizi (risankizumab) for a new indication, moderately to severely active ulcerative colitis. Year to date, AbbVie’s shares have lost 8.8% against the industry’s 7.6% rise. | AbbVie’s key blockbuster immunology medicine, Humira lost patent protection in the United States in 2023.InJanuary, Amgen AMGN launched the first Humira biosimilar in the United States called Amjevita. AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote A better-ranked large drug stock worth considering is J&J JNJ, which has a Zacks Rank of 2 (Buy). Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : 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 announced the submission of regulatory applications to the FDA and European Medicines Agency (EMA) seeking approval of its drug Skyrizi (risankizumab) for a new indication, moderately to severely active ulcerative colitis. Year to date, AbbVie’s shares have lost 8.8% against the industry’s 7.6% rise. Skyrizi and AbbVie’s other newer inflammatory drug, Rinvoq are performing extremely well, bolstered by approvals in new indications. |
22239.0 | 2023-08-29 00:00:00 UTC | SPLG: The Market’s Lowest-Cost S&P 500 ETF | ABBV | https://www.nasdaq.com/articles/splg%3A-the-markets-lowest-cost-sp-500-etf | nan | nan | The SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG) already had a low expense ratio, but it got even more affordable when it slashed its expense ratio by 50% at the beginning of August. According to Bloomberg, SPLG is the lowest-cost large-cap blend S&P 500 ETF offering, with a gross expense ratio that got lowered to 0.02% from a previous 0.03%.
This rock-bottom expense ratio means that an investor will pay just $2 in expenses when putting $10,000 into SPLG, making it the type of cost-effective ETF an investor can build their portfolio around. Assuming that the fee remains at 5% and that the fund returns 5% per year going forward, this investor would pay just $6 in fees over the course of three years, $11 over five years, and a paltry $26 over an entire decade.
While the old adage says that you get what you pay for, that’s not necessarily the case for SPLG, which gives investors plenty of bang for their buck. Let’s take a closer look at this $19.6 billion S&P 500 (SPX) ETF.
What is SPLG ETF’s Strategy?
SPLG is an ETF from State Street (NYSE:STT) that seeks to provide results that “correspond generally to the total return performance of the S&P 500 index,” according to State Street. The company also describes SPLG as “one of the low-cost core SPDR Portfolio ETFs, a suite of portfolio building blocks designed to provide broad, diversified exposure to core asset classes.”
History shows that investing in the S&P 500 has been a winning proposition over the long term. The S&P 500 has averaged double-digit annualized returns of 10.15% for more than six decades since it assumed its current form of owning 500 stocks in 1957, and you can't really argue with that type of track record.
Clearly, the S&P 500 has been a long-term winner, making SLPG a viable long-term holding. Also, in terms of affordability for investors, you can't really beat SPLG.
Solid Returns
As of the end of July, SPLG had returned 20.2% year-to-date and 12.4% over the past year. Over the past three years, it posted an impressive annualized total return of 13.7%. Looking further out, SPLG’s five-year and 10-year annualized returns of 12.2% and 12.6%, respectively, aren’t too shabby either. Going back to its inception in 2005, SPLG has managed to post a double-digit annualized return of 10.0%.
The fact that this strong performance encompasses multiple bear markets, including the great financial crisis and the COVID-19 crash of 2020, shows the power of long-term investing and investing in high-quality, broad-market ETFs.
SPLG’s performance is admirable, to begin with, and even more so when considering the fact that there are plenty of ETFs with exponentially higher expense ratios in the neighborhood of 0.35%, 0.50%, and even 0.75% or higher that can’t match SPLG’s performance over the years.
SPLG's Holdings
In addition to its best-in-class affordability and excellent long-term performance, SPLG offers strong diversification by investing in the entire S&P 500. This broad-market ETF holds 504 stocks, and its top 10 holdings account for just 30.2% of the fund. You can check out SPLG’s top 10 holdings below using TipRanks’ holdings tool.
The nice thing about investing across the S&P 500 is that it gives investors exposure to the breadth and depth of the entire U.S. economy. State Street says that the index “represents approximately 80% of the U.S. market.”
SPLG’s largest holdings are some of the U.S.’s largest and most innovative companies, including tech mega-caps like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). These are the stocks that comprise the "magnificent seven" that have propelled the markets to new heights in 2023.
And there is plenty more than just tech here. SPLG’s top 10 holdings are rounded out by Warren Buffett’s investment conglomerate Berkshire Hathaway (NYSE:BRK.B) and health insurance giant UnitedHealth Group (NYSE:UNH).
These top holdings feature strong Smart Scores across the board. 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. The score is data-driven and does not involve any human intervention. Seven of SPLG’s top 10 holdings feature outperform-equivalent Smart Scores of 8 or higher.
SPLG itself features an Outperform-equivalent Smart Score of 8.
Just outside the top 10, you’ll find no shortage of familiar, blue-chip names, including healthcare leaders like Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV), consumer staples mainstays like Coca-Cola (NYSE:KO), Pepsico (NASDAQ:PEP) and Procter & Gamble (NYSE:PG), plus household names from the financial sector including JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), and Mastercard (NYSE:MA).
Is SPLG Stock a Buy, According to Analysts?
Turning to Wall Street, SPLG earns a Moderate Buy consensus rating based on 399 Buys, 97 Holds, and 10 Sell ratings assigned in the past three months. The average SPLG stock price target of $60.34 implies 14.2% upside potential.
This Long-Term Winner Continues to Look Attractive
SPLG’s rock bottom expense ratio of 0.02%, its strong long-term performance, and its diversified portfolio that gives investors exposure to the breadth and depth of the entire S&P 500 make this long-term winner an attractive investment opportunity. There are plenty of more expensive ETFs out there that can’t hold a candle to SPLG’s annualized returns, making this look like a solid building block for investors to build portfolios around.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Just outside the top 10, you’ll find no shortage of familiar, blue-chip names, including healthcare leaders like Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV), consumer staples mainstays like Coca-Cola (NYSE:KO), Pepsico (NASDAQ:PEP) and Procter & Gamble (NYSE:PG), plus household names from the financial sector including JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), and Mastercard (NYSE:MA). According to Bloomberg, SPLG is the lowest-cost large-cap blend S&P 500 ETF offering, with a gross expense ratio that got lowered to 0.02% from a previous 0.03%. The company also describes SPLG as “one of the low-cost core SPDR Portfolio ETFs, a suite of portfolio building blocks designed to provide broad, diversified exposure to core asset classes.” History shows that investing in the S&P 500 has been a winning proposition over the long term. | Just outside the top 10, you’ll find no shortage of familiar, blue-chip names, including healthcare leaders like Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV), consumer staples mainstays like Coca-Cola (NYSE:KO), Pepsico (NASDAQ:PEP) and Procter & Gamble (NYSE:PG), plus household names from the financial sector including JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), and Mastercard (NYSE:MA). The company also describes SPLG as “one of the low-cost core SPDR Portfolio ETFs, a suite of portfolio building blocks designed to provide broad, diversified exposure to core asset classes.” History shows that investing in the S&P 500 has been a winning proposition over the long term. These top holdings feature strong Smart Scores across the board. | Just outside the top 10, you’ll find no shortage of familiar, blue-chip names, including healthcare leaders like Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV), consumer staples mainstays like Coca-Cola (NYSE:KO), Pepsico (NASDAQ:PEP) and Procter & Gamble (NYSE:PG), plus household names from the financial sector including JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), and Mastercard (NYSE:MA). SPLG’s performance is admirable, to begin with, and even more so when considering the fact that there are plenty of ETFs with exponentially higher expense ratios in the neighborhood of 0.35%, 0.50%, and even 0.75% or higher that can’t match SPLG’s performance over the years. State Street says that the index “represents approximately 80% of the U.S. market.” SPLG’s largest holdings are some of the U.S.’s largest and most innovative companies, including tech mega-caps like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). | Just outside the top 10, you’ll find no shortage of familiar, blue-chip names, including healthcare leaders like Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV), consumer staples mainstays like Coca-Cola (NYSE:KO), Pepsico (NASDAQ:PEP) and Procter & Gamble (NYSE:PG), plus household names from the financial sector including JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), and Mastercard (NYSE:MA). The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. This Long-Term Winner Continues to Look Attractive SPLG’s rock bottom expense ratio of 0.02%, its strong long-term performance, and its diversified portfolio that gives investors exposure to the breadth and depth of the entire S&P 500 make this long-term winner an attractive investment opportunity. |
22240.0 | 2023-08-29 00:00:00 UTC | Now or Never: 7 Blue-Chip Stocks Offering a Once-in-a-Lifetime Opportunity | ABBV | https://www.nasdaq.com/articles/now-or-never%3A-7-blue-chip-stocks-offering-a-once-in-a-lifetime-opportunity | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Financial opportunities are as abundant as they are volatile. Seizing a selected group of blue-chip stocks to buy could lead to unparalleled investor growth. The article lists seven titans of their specific industries. From the booming realm of clean energy to the ever-evolving landscape of pharmaceuticals and the digital realms of streaming and tech innovation, these companies are navigating emerging fields with audacious strategies.
The article explores the fundamentals of seven captivating blue-chip stocks, diving into the intricacies of harnessing the renewable energy wave and redefining pharmaceutical growth post-Humira. It also merges healthcare services with technology, weaves an empire of content in the age of streaming, reimagines sportswear in a digital era, and sculpts the future of high-performance computing. Each company carries its own narrative of resilience and prospects. With that, here are some of the top blue-chip stocks to buy now.
Blue-Chip Stocks to Buy: Enphase Energy (ENPH)
Source: T. Schneider / Shutterstock.com
Enphase Energy (NASDAQ:ENPH) is benefiting from the Investment Tax Credit (ITC) and the growing clean energy demand in the US. The company shipped 50,000 microinverters in Q2, with plans to ship 600,000 more in Q3. While the US solar market is facing headwinds, Enphase’s differentiated technology is contributing to its stable and high market share for microinverters.
Enphase is also seeing record growth in Europe and Australia. The introduction of IQ8 microinverters and batteries into multiple European countries, along with the company’s comprehensive NEM 3.0 solution, is driving growth. In addition, Enphase’s third-generation IQ Battery 5P, with increased power output and modularity, has been well-received, particularly in California, where NEM 3.0 drives battery attach rates. Finally, Enphase’s expansion into the small commercial solar market, EV chargers, and installer platform enhancements further strengthen its position.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie (NYSE:ABBV) has solid strategic execution and diverse growth opportunities across therapeutic areas. Despite competition from biosimilars, the US Humira biosimilar impact has aligned with projections and exceeded expectations. The company’s strong performance on its growth platform, excluding Humira, has driven growth, with an operational revenue increase of nearly 8% in the current quarter.
AbbVie’s focus on its pipeline is yielding positive results. It includes solid data for Skyrizi in ulcerative colitis, US approvals for Rinvoq in Crohn’s disease, and Epkinly in DLBCL. It demonstrates AbbVie’s commitment to delivering new therapies to patients.
Fundamentally, the company’s core therapeutic areas, including immunology, oncology, and neuroscience, are showing impressive growth. Therapies like Skyrizi and Rinvoq are achieving significant revenue growth. As a result of these factors, AbbVie is confident in its ability to achieve robust growth by 2025 with a high single-digit compounded growth rate. It is solidifying AbbVie’s position as a leading pharmaceutical company in the long term.
Blue-Chip Stocks to Buy: CVS Health (CVS)
Source: Shutterstock
CVS Health’s (NYSE:CVS) acquisition of Signify Health and Oak Street Health enhances its value-based care assets. Notably, it synergizes with Aetna, MinuteClinic, and CVS Pharmacy. This connectivity drives patient engagement and growth, expanding their market presence.
Also, the company’s diversified business model, spanning healthcare benefits, health services, pharmacy, and consumer wellness segments, mitigates risks and capitalizes on various revenue streams. The resilience of the front-store offerings, growth in digital sales, and strong pharmacy performance contribute to its overall strength.
Further expansion into 12 states with over one million new members strengthens their exchange offering. It lays the foundation for future earnings growth at Aetna and integrates members across all integrated assets. CVS Health’s ability to generate substantial cash flows allows them to invest in their long-term strategy while returning value to shareholders.
Lastly, CVS Health’s optimization efforts, including a restructuring charge and AI implementation, exhibit its commitment to efficiency and operational excellence. These actions generate cost savings and enable the reallocation of resources to core growth areas like health services and technology.
Paramount (PARA)
Source: viewimage / Shutterstock
Paramount (NASDAQ:PARA) has a coherent strategy, strong execution, and adaptability in the face of industry changes. Paramount’s direct-to-consumer (D2C) business shows impressive growth with increased revenue, engagement, and improved earnings in its streaming division. The company boasts a vast library spanning over 100 years, including 200,000 TV episodes and 4,000 movies. It is driving viewership on platforms like Paramount+ and Pluto TV.
Paramount’s production capabilities are global, extending from Hollywood to key markets and producing hit franchises like Transformers, Mission Impossible, and Taylor Sheridan originals. With more than a dozen billion-dollar franchises and numerous popular originals, Paramount has a robust content engine.
The company leverages multiple platforms and revenue streams, including subscription, advertising, and content licensing, ensuring flexibility as the market evolves. Thus, Paramount’s strong position in the ad market, primarily digital, contributes to its revenue growth. Integrating Paramount+ and Showtime leads to consolidation-driven cost savings, increased consumer engagement, and improved product strength. Finally, the company focuses on revenue growth, cost efficiency, and sustainable business models to grow its value.
Blue-Chip Stocks to Buy: Nike (NKE)
Source: TY Lim / Shutterstock.com
Nike (NYSE:NKE) had exceptional performance in 2023, with a remarkable 16% revenue growth. Notably, North America, EMEA, and APLA witnessed double-digit growth, and Greater China returned to double-digit growth in Q4.
Nike’s robust brand portfolio, including Nike, Jordan, and Converse, experienced substantial growth, with Jordan reaching record highs, positioning it as a formidable footwear brand in North America. The company’s focus on digital transformation led to a significant increase in digital sales, contributing 26% of total business, up from 10% in 2019. The membership offense strategy deepened consumer relationships, increasing engagement, loyalty, and purchase frequency.
Fundamentally, the company’s expansion across various segments, including football, basketball, and running, highlights its ability to dominate key markets. Innovative products like the Vaporfly 3, Peg Trail 4, and Infinity Run 4 solidify Nike’s innovation leadership in running. Furthermore, their strong presence in basketball is exemplified by endorsements from top athletes and partnerships with popular culture.
Nike’s emphasis on providing an integrated consumer experience, leveraging both digital and physical channels, positions it to capitalize on emerging trends and maintain its competitive edge. Therefore, the elevation of leadership and streamlined operations will further drive innovation and growth.
Intel (INTC)
Source: JHVEPhoto / Shutterstock.com
Intel’s (NASDAQ:INTC) focus on AI is paying off as they capitalize on the AI market, positioning themselves to lead the industry by 2030. Intel Foundry Services taps into the growing AI market and ensures a diversified global supply chain. IFS strengthens Intel’s IDM 2.0 strategy by creating accelerants for its roadmap and enabling cutting-edge manufacturing processes.
Further, Intel is committed to delivering advanced products across various nodes, such as Intel 3, Intel 4 (with EUV technology), and Intel 18A. These products leverage advancements like PowerVia technology and backside power delivery, enhancing power efficiency and performance for AI, CPUs, and graphics. Intel’s PC market strategy anticipates an AI PC inflection point, capitalizing on hybrid work, productivity, sensing, security, and creator capabilities. Upcoming products like Meteor Lake, built on Intel 4 and featuring Intel AI Boost, showcase their commitment to AI integration in PCs.
Intel’s diverse portfolio, including PSG, NEX, and Mobileye, is also positioned for growth. Their commitment to cost savings and efficiency enhances their competitiveness. The development of Tunnel Falls, a 12-cubit silicon-based quantum chip, demonstrates Intel’s pioneering approach to quantum computing. Finally, their focus on a silicon-based qubit approach could offer significant advantages for cost-effective commercialization.
Taiwan Semiconductor (TSM)
Source: ToyW / Shutterstock
Despite short-term challenges, Taiwan Semiconductor, or TSMC (NYSE:TSM), is strongly committed to technological leadership and customer support.
The focus on developing cutting-edge nodes like 3-nanometer technology underscores its dedication to delivering higher performance and energy efficiency, which aligns with industry trends such as 5G, AI, and HPC. This technological leadership allows TSM to capture demand for high-end semiconductor solutions. The HPC and AI megatrends fuel TSM’s growth. Its technological prowess aligns with the increasing demand for high-performance computing and AI-related applications.
Looking forward, the 2-nanometer (N2) technology, set for production in 2025, ensures a steady stream of technological advancements. The progress towards N2 technology and backside power rail solutions exemplifies the company’s forward-looking approach. As a result, TSM is maintaining its position at the forefront of semiconductor innovation.
Finally, the company’s strategic expansion of manufacturing facilities across different geographies, including the US, Japan, and potentially Europe, enhances its flexibility, customer responsiveness, and resilience against supply chain disruptions. These facilities cater to specific regional demands, tap into government support, and foster long-term partnerships.
As of this writing, Yiannis Zourmpanos was long TSM, INTC, PARA, and ENPH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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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 solid strategic execution and diverse growth opportunities across therapeutic areas. AbbVie’s focus on its pipeline is yielding positive results. It demonstrates AbbVie’s commitment to delivering new therapies to patients. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has solid strategic execution and diverse growth opportunities across therapeutic areas. AbbVie’s focus on its pipeline is yielding positive results. It demonstrates AbbVie’s commitment to delivering new therapies to patients. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has solid strategic execution and diverse growth opportunities across therapeutic areas. AbbVie’s focus on its pipeline is yielding positive results. It demonstrates AbbVie’s commitment to delivering new therapies to patients. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) has solid strategic execution and diverse growth opportunities across therapeutic areas. AbbVie’s focus on its pipeline is yielding positive results. It demonstrates AbbVie’s commitment to delivering new therapies to patients. |
22241.0 | 2023-08-29 00:00:00 UTC | Nearing Retirement? These Stocks Will Pay You For Life | ABBV | https://www.nasdaq.com/articles/nearing-retirement-these-stocks-will-pay-you-for-life-6 | nan | nan | While government programs help retirees replace some of their income once they stop working, these initiatives aren't meant to fund all of people's expenses in their golden years. That's why many retirees seek additional income. One place to look is the stock market. Investing in reliable dividend stocks can be a great source of steady passive income, but only if the stocks in question have the tools to distribute growing payouts for a while.
Let's look at two companies that can do that: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD).
1. AbbVie
AbbVie is well-known among dividend investors thanks to its solid business, strong prospects, and excellent dividend profile. Let's start with the company's business. AbbVie markets a range of drugs across several therapeutic areas, although its top field of expertise is arguably immunology. The company recently lost U.S. patent protection for its blockbuster therapy Humira. That's why AbbVie's sales have been declining and why it has performed poorly on the stock market since January.
However, the drugmaker's immunology portfolio also features autoimmune disorder drugs Skyrizi and Rinvoq. These two medicines are doing just fine. Relatively recent approvals like migraine treatment Qulipta and older products like cancer drug Venclexta are also contributing meaningfully to AbbVie's top line.
In the first quarter, the company's revenue declined by about 5% year over year to $13.9 billion. Considering Humira made up almost 37% of its revenue last year, AbbVie is managing this headwind pretty well.
Furthermore, the company's pipeline is deep, featuring dozens of programs at all stages of development. 50 of them are in mid- or late-stage studies. That's what makes AbbVie's prospects attractive: Its ability to develop newer medicines. Even a handful (or so) of approvals per year could meaningfully move the needle for AbbVie, especially over the long run. So investors shouldn't worry too much about the declining revenue -- AbbVie will reverse that in time.
Lastly, the drugmaker's dividend history is excellent. Since it split from Abbott Laboratories in 2013, it has hiked its payouts by 270%.
ABBV Dividend data by YCharts
And counting the time it spent as a division of its former parent company, AbbVie is a Dividend King currently on its 51st straight year of payout increase. The company's yield of 4.03% is highly competitive, and its cash payout ratio of 42% looks quite reasonable. AbbVie is an excellent choice for retirees, as the company seems likely to continue raising its dividends for a long time.
2. Gilead Sciences
Gilead Sciences is a leading biotech with a foothold in the HIV market. In the second quarter, the company's revenue increased by about 5% year over year to $6.6 billion. That doesn't tell the whole story, since sales of its COVID-19 medicine, Veklury, are dropping. Excluding its coronavirus antiviral, Gilead's top line jumped by 11% year over year, a solid performance for a biotech giant.
The company's most important product is Biktarvy, an HIV medicine that leads the U.S. market. Biktarvy's sales for the period jumped by 17% year over year to $3 billion -- or about 45% of the company's revenue. Gilead Sciences' total HIV revenue for the quarter increased 9% year over year to $4.6 billion.
Should investors worry about the biotech's over-reliance on this segment? I don't think so. The company has been a leader in this field and should continue to develop newer and better medicines. Its latest brand new approval in this space -- Sunlenca, which won the green light in the U.S. in December and could become a key growth driver -- is a good example. Some drugmakers find tremendous success by focusing exclusively or primarily on a single therapeutic area.
Second, Gilead's oncology portfolio is growing rapidly. Its sales jumped by 38% year over year to $728 million in the second quarter. That represents a small percentage of the biotech's total top line, but it should capture a larger portion of it in time. Gilead Sciences' dozens of programs will add to its ability to grow its revenue and earnings and support its dividends.
The company's payouts have moved in the right direction, while its dividend yield currently tops 3.89%.
GILD Dividend data by YCharts
Because it provides medicines that physicians won't stop prescribing, Gilead Sciences can survive the most challenging economic conditions while still paying -- and raising -- its dividends. That's why retirees can safely add this stock to their portfolios and sleep easy at night, not worried about their passive income being suspended.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Relatively recent approvals like migraine treatment Qulipta and older products like cancer drug Venclexta are also contributing meaningfully to AbbVie's top line. Let's look at two companies that can do that: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). AbbVie AbbVie is well-known among dividend investors thanks to its solid business, strong prospects, and excellent dividend profile. | AbbVie AbbVie is well-known among dividend investors thanks to its solid business, strong prospects, and excellent dividend profile. Let's look at two companies that can do that: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). AbbVie markets a range of drugs across several therapeutic areas, although its top field of expertise is arguably immunology. | ABBV Dividend data by YCharts And counting the time it spent as a division of its former parent company, AbbVie is a Dividend King currently on its 51st straight year of payout increase. Let's look at two companies that can do that: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). AbbVie AbbVie is well-known among dividend investors thanks to its solid business, strong prospects, and excellent dividend profile. | AbbVie AbbVie is well-known among dividend investors thanks to its solid business, strong prospects, and excellent dividend profile. Let's look at two companies that can do that: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). AbbVie markets a range of drugs across several therapeutic areas, although its top field of expertise is arguably immunology. |
22242.0 | 2023-08-29 00:00:00 UTC | US to name first 10 drugs for Medicare price negotiation | ABBV | https://www.nasdaq.com/articles/us-to-name-first-10-drugs-for-medicare-price-negotiation | nan | nan | By Patrick Wingrove
Aug 29(Reuters) - The Biden administration on Tuesday is expected to release its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people.
President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs.
The list will kick off the negotiation process for the 10 drugs whose new prices would go into effect in 2026. The program aims to save $25 billion per year on drug prices by 2031.
Analysts expect medicines on the list to include Merck & Co's MRK.N diabetes drug Januvia, blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica.
"Congress has taken the pharmaceutical industry on and said it is not acceptable anymore to have prescription drug prices that are more than 250% higher than in other nations," Democratic Senator Amy Klobuchar, who has long advocated for lower healthcare costs, said.
Drugmakers including Bristol Myers, Johnson & Johnson JNJ.N, Merck, Britain's AstraZeneca AZN.L, Japan's Astellas Pharma 4503.T and Germany-based Boehringer Ingelheim, as well as business groups have sued the U.S. Department of Health and Human Services (HHS), which oversees the Medicare agency, in an effort to derail the price-setting process.
They argued that the program will hurt innovation and that it violates their rights under the First, Fifth and/or the Eighth amendments of the U.S. Constitution.
Americans pay more for prescription drugs than patients in all other developed nations. The White House responded to these lawsuits by saying nothing in the U.S. Constitution prevents Medicare from negotiating lower drug prices.
Under the program, the minimum cut from a drug's list price will be 25%, but the government could barter for much bigger discounts.
The 10 initial drugs will have met certain criteria set out by the Medicare agency. 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.
Once the list is out, drugmakers will have until Oct. 1 to sign agreements to participate in the talks and until Oct. 2 to submit data on their medicines, including research and development and production costs, information on patent applications and revenue and sales volume.
Unless it is blocked by a court, the Medicare agency will publish the new agreed prices on Sept. 1, 2024.
Among the lawsuits filed so far, the U.S. Chamber of Commerce - the nation's largest business lobby group - is seeking an injunction against the price caps in an Ohio federal court.
HHS and the Biden administration will likely face additional legal challenges once the first 10 drugs have been named and more companies can be certain they will have the right to sue under U.S. law, according to AARP attorney Kelly Bagby.
Bagby recently wrote to an Ohio federal judge to support the government drug price program, arguing the U.S. Chamber's attempt to strike it down would harm older Americans.
(Reporting by Patrick Wingrove Editing by Caroline Humer and Bill Berkrot)
((Patrick.Wingrove@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. | Analysts expect medicines on the list to include Merck & Co's MRK.N diabetes drug Januvia, blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29(Reuters) - The Biden administration on Tuesday is expected to release its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs. | Analysts expect medicines on the list to include Merck & Co's MRK.N diabetes drug Januvia, blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. Drugmakers including Bristol Myers, Johnson & Johnson JNJ.N, Merck, Britain's AstraZeneca AZN.L, Japan's Astellas Pharma 4503.T and Germany-based Boehringer Ingelheim, as well as business groups have sued the U.S. Department of Health and Human Services (HHS), which oversees the Medicare agency, in an effort to derail the price-setting process. The White House responded to these lawsuits by saying nothing in the U.S. Constitution prevents Medicare from negotiating lower drug prices. | Analysts expect medicines on the list to include Merck & Co's MRK.N diabetes drug Januvia, blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29(Reuters) - The Biden administration on Tuesday is expected to release its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs. | Analysts expect medicines on the list to include Merck & Co's MRK.N diabetes drug Januvia, blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs. The list will kick off the negotiation process for the 10 drugs whose new prices would go into effect in 2026. |
22243.0 | 2023-08-29 00:00:00 UTC | What Impact Will Medicare Price Negotiations Have on Big Pharma Stocks? | ABBV | https://www.nasdaq.com/articles/what-impact-will-medicare-price-negotiations-have-on-big-pharma-stocks | nan | nan | When Joe Biden ran for president in 2020, he promised to allow Medicare to negotiate directly with pharmaceutical companies. Last year, he signed the Inflation Reduction Act into law and achieved that campaign promise.
On Tuesday, the Biden Administration announced the 10 prescription medications that will first be included in negotiations between drugmakers and the Centers for Medicare & Medicaid Services (CMS). What impact will Medicare price negotiations have on big pharma stocks? Let's dive in.
Which stocks could be affected?
It's important to first understand exactly which big pharma stocks could be affected by Medicare price negotiations. Here are the drugs on the initial list released by the White House along with the companies that market them:
DRUG NAME TREATS COMPANIES
Eliquis Blood clots
Bristol Myers Squibb
Pfizer
Enbrel
Rheumatoid arthritis
Psoriasis
Psoriatic arthritis
Amgen
Entresto
Heart failure
Novartis
Farxiga
Diabetes
Heart failure
Chronic kidney disease
AstraZeneca
Fiasp (including FlexTouch and PenFill)
NovoLog (including FlexPen and PenFill)
Diabetes Novo Nordisk
Imbruvica Blood cancers
AbbVie
Johnson & Johnson
Januvia
Diabetes
Merck
Jardiance
Diabetes
Heart failure
Boehringer Ingelheim
Eli Lilly
Stelara
Psoriasis
Psoriatic arthritis
Crohn's disease
Ulcerative colitis
Johnson & Johnson
Xarelto
Blood clots
Coronary and peripheral artery disease
Johnson & Johnson
Data sources: CMS, Reuters.
Nine of the top 10 biggest drugmakers by market capitalization are on the list plus privately held Boehringer Ingelheim.
Assessing the potential impact
Johnson & Johnson (NYSE: JNJ) has three drugs that will be subject to Medicare price negotiations, including Imbruvica, which it co-markets with AbbVie. Medicare spent around $11.3 billion on these three medications between June 2022 and May 2023. J&J's share price slipped nearly 2% on Tuesday morning following the Biden Administration's announcement.
However, the actual impact of Medicare negotiations might not be all that great with the initial 10 drugs. For example, biosimilars to Stelara should reach the U.S. market in 2025, which is before the negotiated prices take effect. A generic version of Xarelto could also be marketed in the U.S. by 2025.
Bristol Myers Squibb (NYSE: BMY) could have greater financial exposure to Medicare price negotiations than Johnson & Johnson. Medicare spent $16.5 billion on blood thinner Eliquis between June 2022 and May 2023. Bristol Myers splits U.S. profits on the drug equally with Pfizer. However, U.S. sales of Eliquis make up a bigger percentage of Bristol Myers' total revenue than they do for Pfizer.
But Bristol Myers' share price rose by around 1% on Tuesday. Why? Probably at least in part because investors realize that Eliquis will lose patent exclusivity in 2028, only a couple of years after the negotiated prices are scheduled to go into effect.
Not putting the cart before the horse
None of the other big pharma stocks with drugs on the list for Medicare price negotiations moved much on Tuesday. That seems appropriate for three primary reasons.
First, it's not yet known how big of a discount will be negotiated between CMS and each drugmaker. Any percentage put forward at this point is just speculation.
Second, as previously discussed, several of the drugs on the list have biosimilars or generics on the way relatively soon. As a result, the financial impact of any Medicare price negotiations on the big pharma companies involved will be limited.
Third (and perhaps most importantly), it remains to be seen if CMS will actually be able to negotiate the prices for the 10 drugs on its list. Big pharmaceutical companies, including AstraZeneca, Bristol Myers, Johnson & Johnson, and Merck, have filed lawsuits in federal courts to block the Medicare price negotiations.
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Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. The Motley Fool has positions in and recommends Bristol Myers Squibb, Merck, and Pfizer. The Motley Fool recommends Amgen, Johnson & Johnson, and Novo Nordisk. 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. | Eliquis Blood clots Bristol Myers Squibb Pfizer Enbrel Rheumatoid arthritis Psoriasis Psoriatic arthritis Amgen Entresto Heart failure Novartis Farxiga Diabetes Heart failure Chronic kidney disease AstraZeneca Fiasp (including FlexTouch and PenFill) NovoLog (including FlexPen and PenFill) Diabetes Novo Nordisk Imbruvica Blood cancers AbbVie Johnson & Johnson Januvia Diabetes Merck Jardiance Diabetes Heart failure Boehringer Ingelheim Eli Lilly Stelara Psoriasis Psoriatic arthritis Crohn's disease Ulcerative colitis Johnson & Johnson Xarelto Blood clots Coronary and peripheral artery disease Johnson & Johnson Data sources: CMS, Reuters. Assessing the potential impact Johnson & Johnson (NYSE: JNJ) has three drugs that will be subject to Medicare price negotiations, including Imbruvica, which it co-markets with AbbVie. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | Eliquis Blood clots Bristol Myers Squibb Pfizer Enbrel Rheumatoid arthritis Psoriasis Psoriatic arthritis Amgen Entresto Heart failure Novartis Farxiga Diabetes Heart failure Chronic kidney disease AstraZeneca Fiasp (including FlexTouch and PenFill) NovoLog (including FlexPen and PenFill) Diabetes Novo Nordisk Imbruvica Blood cancers AbbVie Johnson & Johnson Januvia Diabetes Merck Jardiance Diabetes Heart failure Boehringer Ingelheim Eli Lilly Stelara Psoriasis Psoriatic arthritis Crohn's disease Ulcerative colitis Johnson & Johnson Xarelto Blood clots Coronary and peripheral artery disease Johnson & Johnson Data sources: CMS, Reuters. Assessing the potential impact Johnson & Johnson (NYSE: JNJ) has three drugs that will be subject to Medicare price negotiations, including Imbruvica, which it co-markets with AbbVie. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | Eliquis Blood clots Bristol Myers Squibb Pfizer Enbrel Rheumatoid arthritis Psoriasis Psoriatic arthritis Amgen Entresto Heart failure Novartis Farxiga Diabetes Heart failure Chronic kidney disease AstraZeneca Fiasp (including FlexTouch and PenFill) NovoLog (including FlexPen and PenFill) Diabetes Novo Nordisk Imbruvica Blood cancers AbbVie Johnson & Johnson Januvia Diabetes Merck Jardiance Diabetes Heart failure Boehringer Ingelheim Eli Lilly Stelara Psoriasis Psoriatic arthritis Crohn's disease Ulcerative colitis Johnson & Johnson Xarelto Blood clots Coronary and peripheral artery disease Johnson & Johnson Data sources: CMS, Reuters. Assessing the potential impact Johnson & Johnson (NYSE: JNJ) has three drugs that will be subject to Medicare price negotiations, including Imbruvica, which it co-markets with AbbVie. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | Eliquis Blood clots Bristol Myers Squibb Pfizer Enbrel Rheumatoid arthritis Psoriasis Psoriatic arthritis Amgen Entresto Heart failure Novartis Farxiga Diabetes Heart failure Chronic kidney disease AstraZeneca Fiasp (including FlexTouch and PenFill) NovoLog (including FlexPen and PenFill) Diabetes Novo Nordisk Imbruvica Blood cancers AbbVie Johnson & Johnson Januvia Diabetes Merck Jardiance Diabetes Heart failure Boehringer Ingelheim Eli Lilly Stelara Psoriasis Psoriatic arthritis Crohn's disease Ulcerative colitis Johnson & Johnson Xarelto Blood clots Coronary and peripheral artery disease Johnson & Johnson Data sources: CMS, Reuters. Assessing the potential impact Johnson & Johnson (NYSE: JNJ) has three drugs that will be subject to Medicare price negotiations, including Imbruvica, which it co-markets with AbbVie. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. |
22244.0 | 2023-08-29 00:00:00 UTC | US names first 10 drugs for Medicare price negotiation | ABBV | https://www.nasdaq.com/articles/us-names-first-10-drugs-for-medicare-price-negotiation | nan | nan | By Patrick Wingrove
Aug 29(Reuters) - The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N among them.
President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs.
Medicines on the list include Merck & Co's MRK.N diabetes drug Januvia, Eliquis rival Xarelto from Johnson & Johnson JNJ.N, and AbbVie's ABBV.N leukemia treatment Imbruvica.
This kicks off the negotiation process for the 10 drugs whose new prices would go into effect in 2026. The program aims to save $25 billion per year on drug prices by 2031.
Drugmakers including Bristol Myers, Johnson & Johnson, Merck, Britain's AstraZeneca AZN.L, Japan's Astellas Pharma 4503.T and Germany-based Boehringer Ingelheim, as well as business groups have sued the U.S. Department of Health and Human Services (HHS), which oversees the Medicare agency, in an effort to derail the price-setting process.
Americans pay more for prescription drugs than patients in all other developed nations. Under the program, the minimum cut from a drug's list price will be 25%, but the government could barter for much bigger discounts.
(Reporting by Patrick Wingrove and Mike Erman; Editing by Caroline Humer, Bill Berkrot and Chizu Nomiyama)
((Patrick.Wingrove@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. | Medicines on the list include Merck & Co's MRK.N diabetes drug Januvia, Eliquis rival Xarelto from Johnson & Johnson JNJ.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29(Reuters) - The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N among them. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs. | Medicines on the list include Merck & Co's MRK.N diabetes drug Januvia, Eliquis rival Xarelto from Johnson & Johnson JNJ.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29(Reuters) - The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N among them. Drugmakers including Bristol Myers, Johnson & Johnson, Merck, Britain's AstraZeneca AZN.L, Japan's Astellas Pharma 4503.T and Germany-based Boehringer Ingelheim, as well as business groups have sued the U.S. Department of Health and Human Services (HHS), which oversees the Medicare agency, in an effort to derail the price-setting process. | Medicines on the list include Merck & Co's MRK.N diabetes drug Januvia, Eliquis rival Xarelto from Johnson & Johnson JNJ.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29(Reuters) - The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N among them. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs. | Medicines on the list include Merck & Co's MRK.N diabetes drug Januvia, Eliquis rival Xarelto from Johnson & Johnson JNJ.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29(Reuters) - The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N among them. President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs. |
22245.0 | 2023-08-29 00:00:00 UTC | 7 Stocks to Buy for the Rest of 2023 | ABBV | https://www.nasdaq.com/articles/7-stocks-to-buy-for-the-rest-of-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The NASDAQ index, which lost one-third of its value last year, has rebounded with vigor in the first half of 2023. It climbed a staggering 32% during the period, channeling the spirit of 1983 when the tech-heavy index shot up 37% in value. Hence, investors are looking to cash in on the uptrend and to wager on the top stocks for 2023.
Yet, the optimism doesn’t end there. According to historical trends and a recent CFRA analysis, the latter half often glows even brighter when the market shines in the first half.
Specifically, the S&P 500 is likely to notch significantly larger gains in the back-end of the year. In the wake of 2022’s challenges, the dominant narrative revolves around the pursuit of efficiency and the transformative power of artificial intelligence.
As investors set their sights on the horizon, optimism reigns supreme in curating their stock picks for 2023.
Oracle (ORCL)
Source: Jer123 / Shutterstock.com
Traditionally renowned for its database management and enterprise resource planning, Oracle (NYSE:ORCL) is now turning heads with its foray in the AI sphere.
This changing focus is reaping dividends, as evidenced by its stellar, robust earnings and growth. The tech behemoth recently posted earnings per share of $1.19 and a commendable revenue bump of 17%, bringing its tally to $13.8 billion in the fiscal fourth quarter.
Notably, its cloud venture, infused with AI strategies, soared to an impressive $4.4 billion, marking a 54% surge year-over-year. With the rapid advancements in the AI domain and
Oracle’s ability to harness its tremendous potential, the trajectory for this tech giant seems unmistakably skyward-bound. It offers an excellent dividend yield of 1.4%, with eight consecutive years of growth.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Netflix (NASDAQ:NFLX) faced some turbulent waters post-pandemic, marked by daunting comps and aggressive competition.
An unexpected setback occurred when the streaming giant reported its first subscriber loss in a decade in its first quarter last year, with its stock plummeting by a staggering 60% in the following four months.
However, Netflix’s resilience has shone through. Instead of wallowing in defeat, the company leadership took proactive measures.
One particular area of focus was the rampant password-sharing, with nearly 43% of Netflix’s 100 million users sharing accounts. Moreover, Netflix introduced an $8 surcharge for sharing outside immediate households.
There was an 8% jump in Q2 subscriptions, with revenue hitting $8.19 billion with its earnings-per-share at $3.29, surpassing analysts’ predictions.
With a projected third-quarter revenue increase of 7% year-over-year, Netflix seems poised to redefine its bullish narrative. Besides this, NFLX stock is up 40% year-to-date, offering a 12.7% upside from current levels.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
When it comes to tech powerhouses, Apple (NASDAQ:AAPL) remains a paragon of innovation and excellence. Its unparalleled product suite, combined with the global obsession with the iPhone, continues to position the company at the top in a fiercely competitive market.
The brand’s ability to command premium prices is a testament to its established market dominance, leading to a gusher of cash inflows every quarter.
Investment heavyweights aren’t just watching from the sidelines. Warren Buffett often praises Apple as the shiny centerpiece of his investments.
The company isn’t just stacking up its profits. Since 2012, Apple has funneled more than $500 billion into share buybacks. Just last quarter, it generously returned $24 billion to shareholders.
Apple epitomizes an investor’s utopia with a jaw-dropping $62.5 billion in cash reserves and a growing 0.5% dividend yield for nine consecutive years. Also, Tipranks analysts suggest even brighter horizons with a projected 16.5% rise from its current market standing.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Once a segment of Abbott Laboratories, AbbVie (NYSE:ABBV) has faced the challenge of diversifying its revenue streams away from its, especially as its star arthritis drug, Humira.
Though Humira recorded a 25% sales dip following patent expiration, it was still able to notch up $4 billion in sales in its most recent quarter
The company boasts a massive drug pipeline and seeks to broaden Humira’s applications. Some of these include Skyrizi, a plaque psoriasis treatment, and Rinvoq, a remedy for Crohn’s disease.
Both have shown robust sales growth of over 50% in its second quarter, compensating for Humira’s drop in sales. This dynamic shift led to sales that exceeded analysts’ predictions by a sizable $400 million, driven mainly by non-Humira sales, marking a promising transition for the firm.
AbbVie offers an attractive 4% dividend yield with a notable five-year growth rate of 12.3%, further cementing its reputation as a top bet in the healthcare sphere.
Microsoft (MSFT)
Source: Peteri / Shutterstock.com
Microsoft (NASDAQ:MSFT) has been the beacon of robust returns for its investors for years, leveraging its powerful position in PCs, cloud computing, gaming, and more. Reflecting on this prowess, its shares have more than tripled in the last five years.
The tech giant’s recent fiscal fourth-quarter earnings surpassed expectations by a comfortable margin, reporting an earnings-per-share of $2.69 against the estimated $2.55 and a revenue of $56.19 billion, marginally exceeding the forecast of $55.47 billion.
As Microsoft steadily unveils advanced AI solutions, building upon its collaboration with OpenAI, it has solidified its leadership in the AI realm. Complementing this is its thriving cloud business, showcasing a 15% revenue surge in the second quarter.
Also, the expected $68 billion acquisition of Activision Blizzard post a pivotal legal win underlines the firm’s ambitious growth trajectory. Although the current 0.85% dividend yield might seem modest, Microsoft’s formidable cash reserves hint at the potential for a bigger dividend hike in the future.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) stands tall with its diverse application suite, which sees an eye-popping 3.8 billion monthly users. This user engagement underlines the platforms’ sustained appeal.
It will benefit immensely from its growing product base, including Threads, Reels, and the AI-backed Llama 2. These investments will significantly enhance content recommendations and augment user experiences, ultimately turning things up a notch or two as far as its growth rates are concerned.
In leveraging AI for tailored advertising, Meta’s new products, Meta Advantage, and Meta Lattice, offer businesses enhanced ad efficiency and AI-driven messaging, positioning Meta as an invaluable ally.
Despite facing analyst skepticism and dropping sales last year, 2023 marks Meta’s resurgence. Cost-effective strategies and initiatives like open-sourcing Llama 2 signify its commitment to industry-wide innovation.
Meta’s emphasis on the metaverse and the anticipated Quest 3 mixed reality headset highlight its long-term vision, priming the company to pioneer in the intertwining worlds of virtual reality and AI.
Nvidia (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA) is blazing a trail in the stock market, turning heads with its recent earnings smasher. Reporting an earnings-per-share of $2.45 on revenues of $13.5 billion, the figures effortlessly outshone Wall Street’s expectations of a $2.08 earnings-per-share and $11.2 billion revenue.
Such robust results prompted Wedbush Securities’ analyst Dan Ives to label the earnings as a “historical moment” in the tech realm. And the momentum doesn’t stop there; the company’s shares experienced a brief soaring past the $500 mark post-earnings, cementing its position with an impressive annual return of over 200% for the year.
As a titan in the AI domain, Nvidia is strategically poised to capitalize on the surging demand for its chips. This dominance assures the company’s sustained growth trajectory as Bernstein’s optimistic projection places Nvidia’s AI-driven revenue for the upcoming year between $75 billion to $90 billion.
On the date of publication, Muslim Farooque 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
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. | AbbVie offers an attractive 4% dividend yield with a notable five-year growth rate of 12.3%, further cementing its reputation as a top bet in the healthcare sphere. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Once a segment of Abbott Laboratories, AbbVie (NYSE:ABBV) has faced the challenge of diversifying its revenue streams away from its, especially as its star arthritis drug, Humira. An unexpected setback occurred when the streaming giant reported its first subscriber loss in a decade in its first quarter last year, with its stock plummeting by a staggering 60% in the following four months. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Once a segment of Abbott Laboratories, AbbVie (NYSE:ABBV) has faced the challenge of diversifying its revenue streams away from its, especially as its star arthritis drug, Humira. AbbVie offers an attractive 4% dividend yield with a notable five-year growth rate of 12.3%, further cementing its reputation as a top bet in the healthcare sphere. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) stands tall with its diverse application suite, which sees an eye-popping 3.8 billion monthly users. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Once a segment of Abbott Laboratories, AbbVie (NYSE:ABBV) has faced the challenge of diversifying its revenue streams away from its, especially as its star arthritis drug, Humira. AbbVie offers an attractive 4% dividend yield with a notable five-year growth rate of 12.3%, further cementing its reputation as a top bet in the healthcare sphere. The tech giant’s recent fiscal fourth-quarter earnings surpassed expectations by a comfortable margin, reporting an earnings-per-share of $2.69 against the estimated $2.55 and a revenue of $56.19 billion, marginally exceeding the forecast of $55.47 billion. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Once a segment of Abbott Laboratories, AbbVie (NYSE:ABBV) has faced the challenge of diversifying its revenue streams away from its, especially as its star arthritis drug, Humira. AbbVie offers an attractive 4% dividend yield with a notable five-year growth rate of 12.3%, further cementing its reputation as a top bet in the healthcare sphere. This changing focus is reaping dividends, as evidenced by its stellar, robust earnings and growth. |
22246.0 | 2023-08-29 00:00:00 UTC | EXPLAINER-Why the US is negotiating the price of 10 drugs | ABBV | https://www.nasdaq.com/articles/explainer-why-the-us-is-negotiating-the-price-of-10-drugs | nan | nan | By Patrick Wingrove
Aug 29 (Reuters) - The U.S. government on Tuesday released a list of 10 prescription medicines that will be subject to the first-ever price negotiations by the Medicare health program that covers Americans aged 65 and over.
These include Merck & Co's MRK.N diabetes drug Januvia, big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica.
Here is what you need to know about the negotiation process and possible role in lowering drug costs.
What are the Medicare drug price negotiations?
Under President Joe Biden’s Inflation Reduction Act, which was passed into law last year, the government will negotiate with drugmakers the prices of a select number of medicines on which it spends the most annually for the Medicare health program that covers 66 million Americans.
The Medicare agency, known as the Centers for Medicare & Medicaid Services (CMS), was previously forbidden by law from bartering prices with manufacturers. Given that power now, it aims to save $25 billion per year on drug costs by 2031.
After spending the past year getting input from drugmakers and members of the public and putting together rules for the program, the negotiations kick off with Tuesday’s announcement.
Prices settled on for these first 10 drugs will not go into effect until 2026, and several drugmakers and business groups have filed lawsuits seeking to derail the entire process.
What happens next?
Drugmakers have until Oct. 1 to agree to the negotiations. If they refuse, they face heavy fines. By Oct. 2, they must hand over extensive data the government requires to come up with its proposed lower prices.
Medicare plans to send its first offers to manufacturers by Feb. 1. They will have 30 days to make counteroffers. The negotiations must end by Aug. 1, and Medicare will publish its list of new prices on Sept. 1. The law requires that negotiated prices be at least 25% lower than the original list prices.
The process will begin again in February of 2025, when CMS selects another 15 costly prescription drugs for negotiations, with new prices on those going into effect in 2027. It will add yet another 15 prescription or doctor-administered medicines - those not dispensed by pharmacies - the following year.
After that, Medicare will barter for prices on 20 prescription or doctor-administered medicines each year.
When will patients see savings?
Consumers in the Medicare program could see savings in 2026, depending on how their prescription drug plans are set up, and assuming the pharmaceutical industry and its supporting organizations do not manage to derail the program before then.
The U.S. Chamber of Commerce - the nation's largest business lobby group - hopes to get a court-ordered injunction against the program by Oct 1. All the lawsuits seeking to avoid drug price negotiations argue that the new law is unconstitutional.
The government insists it is on solid ground legally and that nothing in the Constitution says Medicare can't negotiate the prices it pays.
The U.S. presidential election next year could add further uncertainty with the potential for Republicans taking control of Congress and the White House, which would bring in leadership that may not be supportive of the law passed by Democrats.
(Reporting by Patrick Wingrove Editing by Bill Berkrot)
((Patrick.Wingrove@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. | These include Merck & Co's MRK.N diabetes drug Januvia, big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29 (Reuters) - The U.S. government on Tuesday released a list of 10 prescription medicines that will be subject to the first-ever price negotiations by the Medicare health program that covers Americans aged 65 and over. Under President Joe Biden’s Inflation Reduction Act, which was passed into law last year, the government will negotiate with drugmakers the prices of a select number of medicines on which it spends the most annually for the Medicare health program that covers 66 million Americans. | These include Merck & Co's MRK.N diabetes drug Januvia, big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29 (Reuters) - The U.S. government on Tuesday released a list of 10 prescription medicines that will be subject to the first-ever price negotiations by the Medicare health program that covers Americans aged 65 and over. Under President Joe Biden’s Inflation Reduction Act, which was passed into law last year, the government will negotiate with drugmakers the prices of a select number of medicines on which it spends the most annually for the Medicare health program that covers 66 million Americans. | These include Merck & Co's MRK.N diabetes drug Januvia, big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. By Patrick Wingrove Aug 29 (Reuters) - The U.S. government on Tuesday released a list of 10 prescription medicines that will be subject to the first-ever price negotiations by the Medicare health program that covers Americans aged 65 and over. What are the Medicare drug price negotiations? | These include Merck & Co's MRK.N diabetes drug Januvia, big-selling blood thinner Eliquis from Bristol Myers Squibb BMY.N and Pfizer PFE.N, and AbbVie's ABBV.N leukemia treatment Imbruvica. What are the Medicare drug price negotiations? Prices settled on for these first 10 drugs will not go into effect until 2026, and several drugmakers and business groups have filed lawsuits seeking to derail the entire process. |
22247.0 | 2023-08-28 00:00:00 UTC | Late-Summer Steals: 7 Stocks to Buy Before Fall | ABBV | https://www.nasdaq.com/articles/late-summer-steals%3A-7-stocks-to-buy-before-fall | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With summer coming to an end, investors may want to target certain compelling stocks to buy now. Basically, the theory is the reverse of the adage, sell in May and go away. Those who did sell in May are now returning from their summer vacations and getting back to work. Further, with traders bidding up the hottest flavors of the week in the technology space, several opportunities exist that are simply overlooked – for now.
With thousands of publicly traded companies listed on major U.S. exchanges, it’s practically impossible to keep track of all of them with the same care and attention. That just makes the stock picks below all the more enticing.
Home Depot (HD)
Source: Cassiohabib / Shutterstock.com
An icon in the home improvement retail space, Home Depot (NYSE:HD) is a reliable everyday performer. However, it’s only up a bit over 2% since the Jan. opener. Likely, investors are focused on the hottest technology plays, thereby providing little attention to HD. Still, in the past six months, HD gained a hair over 9%. With shares down 2% in the trailing 30 days, this might be one of the stocks to buy now.
Financially, you’re looking at a consistent growth and profitability machine. On the top line, Home Depot prints a three-year revenue growth rate (per-share basis) of 15.2%, beating out 76.39% of its peers. Also during the same period, its EBITDA growth rate pops at 16.7%, above 65%. Lastly, the company runs a trailing-year operating margin of 14.88%, outflanking 87.67% of the competition.
Notably, analysts peg HD as a consensus moderate buy. Their average price target lands at $342.48, implying a bit over 6% upside potential.
Cintas (CTAS)
Source: Sundry Photography / Shutterstock.com
Headquartered in Mason, Ohio, Cintas (NASDAQ:CTAS) provides a range of products and services to its enterprise-level clients. These include uniforms, mats, cleaning supplies, and safety products such as fire extinguishers and testing equipment. It’s a vital cog of the broader infrastructure and investors recognize this fact. Since the start of the year, CTAS gained more than 10% of its equity value.
Still, there could be more upside here, making CTAS one of the stocks to buy now. Financially, as with Home Depot above, it’s not a sexy business but it gets the job done with consistently solid sales growth and profitability. For example, its three-year revenue growth rate pings at 8.8%, above nearly 64% of its peers. And it features an operating margin of 20.45%, above 85.45%.
Significantly, analysts regard CTAS as one of the viable stock picks, pegging it as a moderate buy. Moreover, their average price target comes in at $531.08, implying 7% upside potential.
Tractor Supply (TSCO)
Source: James R. Martin/Shutterstock.com
Founded in 1938, Tractor Supply (NASDAQ:TSCO) is a retail chain that sells products for home improvement, agriculture, lawn/garden maintenance, livestock, equine and pet care for recreational farmers and ranchers. As well, the company serves pet owners and landowners. Naturally, Tractor Supply represents a critical partner for the future of U.S. agriculture. Therefore, it should make a great case for stocks to buy now.
To be fair, since the start of the year, TSCO slipped more than 4%. However, this might be a temporary rough patch. For example, in the trailing one-year period, TSCO is up nearly 12%. More importantly, against a financial framework, Tractor Supply prints a three-year revenue growth rate of 22.3%, above 83.94% of its peers. In addition, its EBITDA growth rate during the same period clocks in at an impressive 26.8%. And it’s consistently profitable year in and year out. Lastly, analysts peg TSCO as a moderate buy. Their average price target hits $244.33, implying over 14% upside potential.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Unlike the other stock picks on this write-up, AbbVie (NYSE:ABBV) in my opinion doesn’t have a sense of urgency per se. Don’t get me wrong: As a compelling and relevant pharmaceutical giant, ABBV makes sense no matter what. Plus, the company features a dividend yield of 3.98% per TipRanks, which is well above the healthcare sector’s average yield of 1.5%.
However, ABBV slipped almost 10% since the start of the year. In the past 365 days, shares gained under 8%, which seems overly pessimistic. With AbbVie acquiring Allergan (and thus the Botox unit), the pharmaceutical firm enjoys a gargantuan total addressable market.
Basically, the looks-oriented (I don’t want to say superficial but I’m thinking it) demographics of Millennials and Generation Z will eventually get older. With no safe spaces protecting them from the aging process, Botox could be a powerful coping mechanism. Yeah, it’s awfully cynical but potentially viable. Anyways, I’m not sure if analysts agree but they peg ABBV as a moderate buy. With an implied growth of nearly 17%, it’s one of the stocks to buy now (if you want).
Ulta Beauty (ULTA)
Source: Jonathan Weiss / Shutterstock.com
An American chain of beauty stores, Ulta Beauty (NASDAQ:ULTA) just released its fiscal second-quarter earnings report. Per Barron’s, the company posted earnings per share of $6.02 on revenue of $2.53 billion. In contrast, analysts surveyed by FactSet anticipated the company to post EPS of $5.85 on sales of $2.5 billion. So, a top-and-bottom beat should make ULTA one of the top stock picks, right?
Well, the market had other ideas. On the day of the disclosure, ULTA fell nearly 4%. And in the after-hours session, it gained just a tenth of a percent. What the flappity is all this? Honestly, I’m not sure if any analyst provided an explanation. Management noted – through data of course – that it’s essentially a recession-resistant business. Maybe investors are skeptical about that.
For me, social normalization trends – particularly the return to the office – bode well for ULTA. In my view, it’s one of the stocks to buy now on the weakness. Overall, analysts view ULTA as a moderate buy. Their average price target of $532.89 implies nearly 31% growth.
Paycom (PAYC)
Source: Tada Images / Shutterstock.com
With the last two stock picks, I’m going to dial up the risk-reward profile, beginning with Paycom (NYSE:PAYC). Based in Oklahoma City, Oklahoma, Paycom is an online payroll and human resource technology provider. Per its public profile, the company is one of the pioneering fully online payroll providers. It’s also one of the fastest-growing firms.
Unfortunately, this status hasn’t impressed Wall Street this year. Since the Jan. opener, shares have been all over the map, presently down 6%. Over the past 365 days, PAYC slipped almost 21%. However, investors may be too pessimistic. For one thing, the company benefits from a strong balance sheet, especially its cash-to-debt ratio of 18.5x. Operationally, Paycom prints a three-year revenue growth rate of 23.2%, above 78.47% of its peers. And it’s consistently profitable with a net margin of 20.3%.
Turning to Wall Street, analysts view PAYC as a strong buy. Their average price target clocks in at $384.27, implying over 34% upside potential.
ResMed (RMD)
Source: Vitalii Vodolazskyi / Shutterstock
Based in San Diego, California, ResMed (NYSE:RMD) is a medical equipment company. Per its corporate profile, ResMed provides cloud-connectable medical devices for the treatment of sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. However, investors are extremely skeptical about RMD. Since the beginning of the year, shares fell 23%.
Granted, I understand the risky and often volatile nature of the medical equipment industry. At the same time, the global sleep apnea devices market may be worth about $5.8 billion this year. Further, experts project that the sector could hit $8 billion by 2028, representing a CAGR of 6.5%.
Also, ResMed enjoys a solid growth machine. Specifically, its three-year sales expansion rate hit 12.2%, above 63.21% of its peers. Plus, it’s consistently profitable, leveraging a net margin of 21.25%. Looking to the Street, analysts peg RMD as a strong buy. Their average price target stands at $249.60, implying 55% upside potential.
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.
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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 Unlike the other stock picks on this write-up, AbbVie (NYSE:ABBV) in my opinion doesn’t have a sense of urgency per se. Don’t get me wrong: As a compelling and relevant pharmaceutical giant, ABBV makes sense no matter what. However, ABBV slipped almost 10% since the start of the year. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Unlike the other stock picks on this write-up, AbbVie (NYSE:ABBV) in my opinion doesn’t have a sense of urgency per se. Don’t get me wrong: As a compelling and relevant pharmaceutical giant, ABBV makes sense no matter what. However, ABBV slipped almost 10% since the start of the year. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Unlike the other stock picks on this write-up, AbbVie (NYSE:ABBV) in my opinion doesn’t have a sense of urgency per se. Don’t get me wrong: As a compelling and relevant pharmaceutical giant, ABBV makes sense no matter what. However, ABBV slipped almost 10% since the start of the year. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Unlike the other stock picks on this write-up, AbbVie (NYSE:ABBV) in my opinion doesn’t have a sense of urgency per se. Don’t get me wrong: As a compelling and relevant pharmaceutical giant, ABBV makes sense no matter what. However, ABBV slipped almost 10% since the start of the year. |
22248.0 | 2023-08-28 00:00:00 UTC | AbbVie Submits Applications For New Indication To FDA And EMA For Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/abbvie-submits-applications-for-new-indication-to-fda-and-ema-for-ulcerative-colitis | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie, Inc. (ABBV) announced Monday that it has submitted applications for a new indication to the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) for risankizumab (SKYRIZI, 1200 mg intravenous [IV] [induction dose] as well as 180 mg and 360 mg subcutaneous [SC] [maintenance dose]) for the treatment of adult patients with moderately to severely active ulcerative colitis.
The Applications to the FDA and EMA are supported by data from two Phase 3 clinical trials: an induction study, INSPIRE, and a maintenance study, COMMAND. Significantly more patients treated with risankizumab 1200 mg IV at week 12 in the induction study and 180 mg or 360 mg SC at week 52 in the maintenance study achieved the primary endpoint of clinical remission, compared to patients receiving placebo.
Additionally, more risankizumab-treated patients in both the induction and maintenance studies achieved the key secondary endpoints of endoscopic improvement and histologic endoscopic mucosal improvement (HEMI) compared to placebo.
Risankizumab (SKYRIZI) is part of collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie, Inc. (ABBV) announced Monday that it has submitted applications for a new indication to the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) for risankizumab (SKYRIZI, 1200 mg intravenous [IV] [induction dose] as well as 180 mg and 360 mg subcutaneous [SC] [maintenance dose]) for the treatment of adult patients with moderately to severely active ulcerative colitis. Risankizumab (SKYRIZI) is part of collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Significantly more patients treated with risankizumab 1200 mg IV at week 12 in the induction study and 180 mg or 360 mg SC at week 52 in the maintenance study achieved the primary endpoint of clinical remission, compared to patients receiving placebo. | (RTTNews) - Biopharmaceutical company AbbVie, Inc. (ABBV) announced Monday that it has submitted applications for a new indication to the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) for risankizumab (SKYRIZI, 1200 mg intravenous [IV] [induction dose] as well as 180 mg and 360 mg subcutaneous [SC] [maintenance dose]) for the treatment of adult patients with moderately to severely active ulcerative colitis. Risankizumab (SKYRIZI) is part of collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Significantly more patients treated with risankizumab 1200 mg IV at week 12 in the induction study and 180 mg or 360 mg SC at week 52 in the maintenance study achieved the primary endpoint of clinical remission, compared to patients receiving placebo. | (RTTNews) - Biopharmaceutical company AbbVie, Inc. (ABBV) announced Monday that it has submitted applications for a new indication to the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) for risankizumab (SKYRIZI, 1200 mg intravenous [IV] [induction dose] as well as 180 mg and 360 mg subcutaneous [SC] [maintenance dose]) for the treatment of adult patients with moderately to severely active ulcerative colitis. Risankizumab (SKYRIZI) is part of collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Significantly more patients treated with risankizumab 1200 mg IV at week 12 in the induction study and 180 mg or 360 mg SC at week 52 in the maintenance study achieved the primary endpoint of clinical remission, compared to patients receiving placebo. | Risankizumab (SKYRIZI) is part of collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. (RTTNews) - Biopharmaceutical company AbbVie, Inc. (ABBV) announced Monday that it has submitted applications for a new indication to the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) for risankizumab (SKYRIZI, 1200 mg intravenous [IV] [induction dose] as well as 180 mg and 360 mg subcutaneous [SC] [maintenance dose]) for the treatment of adult patients with moderately to severely active ulcerative colitis. The Applications to the FDA and EMA are supported by data from two Phase 3 clinical trials: an induction study, INSPIRE, and a maintenance study, COMMAND. |
22249.0 | 2023-08-26 00:00:00 UTC | 3 Surprisingly Underrated Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-surprisingly-underrated-stocks-to-buy-right-now | nan | nan | "I don't get no respect." That was the line the late comedian Rodney Dangerfield made famous. But it could also apply to some stocks.
Three Motley Fool contributors identified surprisingly underrated stocks they think are great picks to buy right now. Here's why they chose AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE).
Investors are heavily discounting AbbVie's business
David Jagielski (AbbVie): AbbVie is a top healthcare stock, with a market cap of more than $260 billion. But investors are treating it as if the business is in big trouble. Concerns about a patent cliff and sharply declining sales from Humira are overblown. The stock of a company as diverse and versatile as AbbVie deserves to be trading at a much higher valuation, in my view.
This year is a tough one for AbbVie, as it is expecting Humira's revenue to decline by around 35%. That's billions off the top line for the company. And for a normal healthcare business, this would be a huge problem.
But AbbVie is better than your run-of-the-mill healthcare company. It already has a plan to replace lost revenue from Humira through a couple of emerging immunology drugs, Skyrizi and Rinvoq, which can combine for higher peak annual revenue than Humira. By 2027, they could bring in more than $21 billion in revenue, which is how much Humira generated last year.
AbbVie also has an encouraging migraine medication, atogepant, which met both primary and secondary endpoints in a late-stage study this year and reduced the number of mean monthly migraine days in patients. The drug is a potential blockbuster, as annual revenue could top $1 billion.
With its hands in eye care, oncology, aesthetics (including Botox), immunology, and other therapeutic areas, AbbVie's business has many products that can potentially drive more growth in the future. The company has the resources at its disposal to develop or acquire more drugs; it has generated more than $20 billion in free cash flow in each of the past two years.
Trading at only 14 times its estimated future profits, AbbVie stock looks incredibly cheap next to most healthcare stocks, which average an earnings multiple of 27. And not only is it cheap, but AbbVie also pays a dividend that yields around 4%, which is more than double the S&P 500 average of 1.5%.
AbbVie's stock is down 7% this year, as investors haven't been showing much confidence in the company. However, it should have a bright future. I think AbbVie is an underrated stock to buy and hold.
The growth story is just getting started
Prosper Junior Bakiny (CRISPR Therapeutics): It's hard to value biotech companies that have no products on the market and are unprofitable. Hard, but not impossible.
Take CRISPR Therapeutics, a company with an almost $4 billion market cap. Its clinical-stage status and red ink on the bottom line have been major factors in its recent stock market performances. The company's shares are down by 27% over the past 12 months. However, at current levels, CRISPR Therapeutics is arguably a steal.
The company awaits approval for exa-cel, a gene-editing therapy for beta-thalassemia (TDT) and sickle cell disease (SCD), a pair of blood-related conditions. It developed this therapy with Vertex Pharmaceuticals and has a multibillion-dollar potential, and the medicine's approval will probably send CRISPR Therapeutics' shares soaring.
But there is something deeper at play. CRISPR Therapeutics developed a therapy that looks effective for two diseases that have almost entirely eluded researchers so far. SCD and TDT patients have been condemned to live challenging, painful lives, marked by the side effects of their illnesses and expensive standards of care that failed to rid them of their conditions. Then CRISPR Therapeutics created exa-cel, a one-time curative option for both diseases. Not only that, but it also uses the CRISPR gene-editing technique that won the researchers who invented it a Nobel Prize.
So far, no therapy that uses this technology has been approved. But CRISPR Therapeutics' management and research team are top-notch, which is an absolutely critical factor for the long-term success of any company in any industry.
To top it all off, CRISPR Therapeutics has an exciting pipeline and the funds necessary to push its programs forward. It should have even more money soon, when revenue from exa-cel starts rolling in.
The biotech has the ingredients necessary for long-term success, and in my view, that isn't reflected in its market cap just yet. That's what makes CRISPR Therapeutics underrated, and it's also why interested investors should rush to buy the biotech's shares before they soar.
More than a COVID story
Keith Speights (Pfizer): In 2020 and 2021, Pfizer reigned as the king of pharma. Its COVID-19 vaccine Comirnaty was raking in more money than any drug or vaccine in history. COVID-19 therapy Paxlovid was adding billions of additional dollars to Pfizer's coffers.
That was then, and Pfizer's shares are now more than 40% below the all-time high set in late 2021 and down nearly 30% so far this year. Sales for Comirnaty and Paxlovid are sinking. Pfizer also has storm clouds on the horizon with patent expirations for multiple key products coming over the next few years.
However, I think many investors are missing the big picture with Pfizer. Sure, there's some uncertainty about what the future holds for the company's COVID-19 products. But Pfizer is more than just a COVID story.
Normally, Pfizer's patent cliff would be something for investors to worry about. The good news, though, is that the drugmaker expects to more than offset the anticipated losses from patent expirations from new products that it has either already launched or will launch by the first half of 2024.
Pfizer has also been putting its massive COVID profits to great use. The business development deals that it has closed or has in progress, including the pending acquisition of Seagen, should generate more than $20 billion in additional revenue by 2030. And the company isn't finished with its dealmaking, either.
The bottom line is that Pfizer expects to deliver average annual non-COVID revenue growth of 10% between 2025 and 2030. With the coronavirus continuing to rear its ugly head, there's a chance the company's COVID franchise could rebound somewhat as well.
In the meantime, Pfizer's shares trade at a low forward earnings multiple of 11. The company offers a dividend that yields more than 4.5%. I think there's a word for a stock with such solid long-term growth prospects, a bargain valuation, and a juicy dividend: underrated.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie, Pfizer, and Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Pfizer, Seagen, and Vertex Pharmaceuticals. 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. | With its hands in eye care, oncology, aesthetics (including Botox), immunology, and other therapeutic areas, AbbVie's business has many products that can potentially drive more growth in the future. Here's why they chose AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE). Investors are heavily discounting AbbVie's business David Jagielski (AbbVie): AbbVie is a top healthcare stock, with a market cap of more than $260 billion. | Investors are heavily discounting AbbVie's business David Jagielski (AbbVie): AbbVie is a top healthcare stock, with a market cap of more than $260 billion. Trading at only 14 times its estimated future profits, AbbVie stock looks incredibly cheap next to most healthcare stocks, which average an earnings multiple of 27. Here's why they chose AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE). | Investors are heavily discounting AbbVie's business David Jagielski (AbbVie): AbbVie is a top healthcare stock, with a market cap of more than $260 billion. AbbVie's stock is down 7% this year, as investors haven't been showing much confidence in the company. Here's why they chose AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE). | Investors are heavily discounting AbbVie's business David Jagielski (AbbVie): AbbVie is a top healthcare stock, with a market cap of more than $260 billion. AbbVie's stock is down 7% this year, as investors haven't been showing much confidence in the company. Here's why they chose AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE). |
22250.0 | 2023-08-25 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-15 | 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. |
22251.0 | 2023-08-25 00:00:00 UTC | The Zacks Analyst Blog Highlights Procter & Gamble, AbbVie, The Walt Disney, HSBC Holdings and Duke Energy | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-procter-gamble-abbvie-the-walt-disney-hsbc-holdings-and | nan | nan | For Immediate Release
Chicago, IL – August 25, 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: Procter & Gamble Co. PG, AbbVie Inc. ABBV, The Walt Disney Co. DIS, HSBC Holdings plc HSBC and Duke Energy Corp. DUK.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Procter & Gamble, AbbVie and Walt Disney
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 The Procter & Gamble Co., AbbVie Inc. and The Walt Disney Co. 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 >>>
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+11.6% vs. +8.0%). The company continued its robust top and bottom-line surprise trend for the fourth consecutive quarter in the last quarterly release. Also, sales and earnings grew year over year.
Procter & Gamble's organic sales grew, driven by robust pricing and a favorable mix, along with strength across segments. It has been focused on productivity and cost-saving plans to boost margins. Consequently, management has provided an optimistic view for fiscal 2024.
However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation. Procter & Gamble's significant international presence exposes it to foreign currency risks, which have been weighing on the company's performance.
(You can read the full research report on Procter & Gamble here >>>)
Shares of AbbVie have gained +9.8% over the past year against the Zacks Large Cap Pharmaceuticals industry's gain of +23.7%. 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 key data readouts in 2023.
However, the company faces several near-term headwinds like Humira loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. Nonetheless, 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 >>>)
Shares of Walt Disney have declined -1.2% over the year-to-date period against the Zacks Media Conglomerates industry's decline of -1.4%, reflecting concerns about the profitability of the company's streaming business and the long-term outlook for its media business in the cord-cutting backdrop. Nevertheless, Walt Disney is benefiting from rebounding Parks, Experiences and Products businesses as reflected by the fiscal third quarter results.
Both domestic and international theme parks reported impressive top-line growth. Upcoming attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Studios Park in Paris, as well as the Zootopia theme land at Shanghai Disney Resort, are expected to boost the prospects of the theme parks business.
A strong line-up of movies that includes Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment. The company has been nominated for several Emmy awards, which suggests a strong content portfolio.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include HSBC Holdings plc and Duke Energy Corp..
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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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Duke Energy Corporation (DUK) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : 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. | Stocks recently featured in the blog include: Procter & Gamble Co. PG, AbbVie Inc. ABBV, The Walt Disney Co. DIS, HSBC Holdings plc HSBC and Duke Energy Corp. DUK. Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Procter & Gamble, AbbVie and Walt Disney 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 The Procter & Gamble Co., AbbVie Inc. and The Walt Disney Co. | Stocks recently featured in the blog include: Procter & Gamble Co. PG, AbbVie Inc. ABBV, The Walt Disney Co. DIS, HSBC Holdings plc HSBC and Duke Energy Corp. DUK. Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Procter & Gamble, AbbVie and Walt Disney The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report Duke Energy Corporation (DUK) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : 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 Procter & Gamble, AbbVie and Walt Disney 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 The Procter & Gamble Co., AbbVie Inc. and The Walt Disney Co. Click to get this free report Duke Energy Corporation (DUK) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : 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 The Procter & Gamble Co., AbbVie Inc. and The Walt Disney Co. Stocks recently featured in the blog include: Procter & Gamble Co. PG, AbbVie Inc. ABBV, The Walt Disney Co. DIS, HSBC Holdings plc HSBC and Duke Energy Corp. DUK. Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Procter & Gamble, AbbVie and Walt Disney The Zacks Research Daily presents the best research output of our analyst team. |
22252.0 | 2023-08-25 00:00:00 UTC | Investors Heavily Search AbbVie Inc. (ABBV): Here is What You Need to Know | ABBV | https://www.nasdaq.com/articles/investors-heavily-search-abbvie-inc.-abbv%3A-here-is-what-you-need-to-know-7 | 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.
Over the past month, shares of this drugmaker have returned -1.5%, compared to the Zacks S&P 500 composite's -3.8% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 4.5%. 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.
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 has changed +2.7% 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 changed +1.6%.
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 changed +0.5%.
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
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 $53.49 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.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded 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.
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
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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) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 4.5%. | 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. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 4.5%. | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 4.5%. 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) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 4.5%. 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. |
22253.0 | 2023-08-25 00:00:00 UTC | PG, ABBV: 2 Dividend Aristocrat Stocks Hedge Funds are Bullish on | ABBV | https://www.nasdaq.com/articles/pg-abbv%3A-2-dividend-aristocrat-stocks-hedge-funds-are-bullish-on | nan | nan | Dividend-paying stocks, particularly Dividend Aristocrats (companies that have raised dividends for over 25 consecutive years), are a great way to generate passive income and can be considered a safe bet in the current uncertain market situation. Procter & Gamble (NYSE:PG) and AbbVie (NYSE:ABBV) are two such stocks that boast an impressive history of consistent dividend growth.
Interestingly, the TipRanks’ Hedge Fund Trading Activity tool, which offers hedge fund signals based on the latest Form 13F filings, indicates that hedge fund managers have been increasing their holdings in both PG and ABBV stocks. Moreover, both of these stocks carry an Outperform Smart Score.
Let’s delve deeper into these two Dividend-Aristocrat stocks.
Procter & Gamble Co.
Procter & Gamble has raised its dividend payout for 67 consecutive years, making it a perfect choice for income investors. The company has been benefitting from resilient demand for its products, irrespective of economic conditions.
Furthermore, the stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. The tool shows that hedge funds bought 4.1 million shares of this consumer goods company in the last quarter.
Our data shows that Ken Fisher of Fisher Asset Management, Gotham Asset Management’s Joel Greenblatt, and Henry Kwiecinski of Bishop & Co. Investment Management were among the hedge fund managers who increased their exposure to PG stock.
Is PG a Good Stock to Buy Now?
While hedge fund managers show bullish sentiment, analysts maintain a cautiously optimistic outlook on the stock due to the impact of inflationary headwinds and intense competition.
Procter & Gamble has received 10 Buys and six Hold recommendations from analysts for a Moderate Buy consensus rating. Meanwhile, the PG stock’s 12-month average price target of $168.87 implies 10.71% upside potential from current levels.
AbbVie, Inc.
AbbVie has increased dividends for 51 consecutive years. The company's vast product portfolio and strong financial position, which support investment in new drugs, point to AbbVie's growth prospects.
In addition, ABBV stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. Per the tool, hedge funds bought 638,500 shares of this healthcare giant last quarter.
According to the tool, popular hedge fund managers, including Fisher, Bridgewater Associates’ Ray Dalio, and Echo Street Capital’s Greg Poole, increased their positions in AbbVie stock.
Is ABBV a Good Stock to Buy Now?
Nonetheless, falling revenues and the loss of patent exclusivity for its blockbuster medicine Humira in the U.S. are concerning factors that keep analysts cautiously optimistic about ABBV stock.
AbbVie stock has a Moderate Buy consensus rating based on six Buy and four Hold recommendations. In addition, ABBV stock’s 12-month average price target of $171.38 implies 16.88% upside potential.
Ending Thoughts
Investing in Dividend Aristocrats is a well-known defensive strategy for passive investors. Particularly in the current uncertain macroeconomic environment, these stocks ensure higher stability in comparison to growth stocks. This is because these companies are usually large, well-capitalized organizations.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to the tool, popular hedge fund managers, including Fisher, Bridgewater Associates’ Ray Dalio, and Echo Street Capital’s Greg Poole, increased their positions in AbbVie stock. Nonetheless, falling revenues and the loss of patent exclusivity for its blockbuster medicine Humira in the U.S. are concerning factors that keep analysts cautiously optimistic about ABBV stock. Procter & Gamble (NYSE:PG) and AbbVie (NYSE:ABBV) are two such stocks that boast an impressive history of consistent dividend growth. | Interestingly, the TipRanks’ Hedge Fund Trading Activity tool, which offers hedge fund signals based on the latest Form 13F filings, indicates that hedge fund managers have been increasing their holdings in both PG and ABBV stocks. In addition, ABBV stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. In addition, ABBV stock’s 12-month average price target of $171.38 implies 16.88% upside potential. | Interestingly, the TipRanks’ Hedge Fund Trading Activity tool, which offers hedge fund signals based on the latest Form 13F filings, indicates that hedge fund managers have been increasing their holdings in both PG and ABBV stocks. According to the tool, popular hedge fund managers, including Fisher, Bridgewater Associates’ Ray Dalio, and Echo Street Capital’s Greg Poole, increased their positions in AbbVie stock. Procter & Gamble (NYSE:PG) and AbbVie (NYSE:ABBV) are two such stocks that boast an impressive history of consistent dividend growth. | Interestingly, the TipRanks’ Hedge Fund Trading Activity tool, which offers hedge fund signals based on the latest Form 13F filings, indicates that hedge fund managers have been increasing their holdings in both PG and ABBV stocks. AbbVie, Inc. AbbVie has increased dividends for 51 consecutive years. Procter & Gamble (NYSE:PG) and AbbVie (NYSE:ABBV) are two such stocks that boast an impressive history of consistent dividend growth. |
22254.0 | 2023-08-24 00:00:00 UTC | Top Analyst Reports for Procter & Gamble, AbbVie & Walt Disney | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-procter-gamble-abbvie-walt-disney | nan | nan | Thursday, August 24, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Company (PG), AbbVie Inc. (ABBV) and The Walt Disney Company (DIS). 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 >>>
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+11.6% vs. +8.0%). The company continued its robust top and bottom-line surprise trend for the fourth consecutive quarter in the last quarterly release. Also, sales and earnings grew year over year.
Procter & Gamble’s organic sales grew, driven by robust pricing and a favorable mix, along with strength across segments. It has been focused on productivity and cost-saving plans to boost margins. Consequently, management has provided an optimistic view for fiscal 2024.
However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation. Procter & Gamble’s significant international presence exposes it to foreign currency risks, which have been weighing on the company’s performance.
(You can read the full research report on Procter & Gamble here >>>)
Shares of AbbVie have gained +9.8% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +23.7%. 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 key data readouts in 2023.
However, the company faces several near-term headwinds like Humira loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. Nonetheless, 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 >>>)
Shares of Walt Disney have declined -1.2% over the year-to-date period against the Zacks Media Conglomerates industry’s decline of -1.4%, reflecting concerns about the profitability of the company's streaming business and the long-term outlookf for its media business in the cord-cutting backdrop. Nevertheless, Walt Disney is benefiting from rebounding Parks, Experiences and Products businesses as reflected by the fiscal third quarter results.
Both domestic and international theme parks reported impressive top-line growth. Upcoming attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Studios Park in Paris, as well as the Zootopia theme land at Shanghai Disney Resort, are expected to boost the prospects of the theme parks business.
A strong line-up of movies that includes Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment. The company has been nominated for several Emmy awards, which suggests a strong content portfolio.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include HSBC Holdings plc (HSBC), Boston Scientific Corporation (BSX) and Duke Energy Corporation (DUK).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
P&G's (PG) Productivity & Cost Savings Plan to Aid Margins
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Strong Content Portfolio & Parks Business Aids Disney (DIS)
Featured Reports
New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail
Per the Zacks analyst, Boston Scientific is expected to strongly gain from its strategic buyouts of Apollo Endosurgery and Acotec. Yet, rising expenses continue to dent profitability.
Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes
Per the Zacks analyst, Duke Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.
Focused Differentiation Aids Waste Management (WM) Liquidity Low
Per the Zacks analyst, differentiation through capitalization of extensive assets ensures long-term profitable growth for Waste Management. Low liquidity a concern.
Valero (VLO) Gains on Higher Gulf Coast Refinery Throughput
The Zacks analyst is impressed by Valero's Gulf Coast refineries contributing the most to its total throughput volumes. Higher Gulf Coast export volumes will also support its margins.
Revenue Growth, Decline in Costs Aid Molina Healthcare (MOH)
Per the Zacks analyst, Molina Healthcare's rising revenues can be attributed to strong premium revenues and solid membership growth. Efforts to control costs have been driving its margins.
Dolby Laboratories (DLB) To Gain From Strong Product Portfolio
Per the Zacks analyst, Dolby Laboratories is gaining from increased adoption of Dolby Atmos and Dolby Vision. Also, rising demand for new imaging patents and Dolby Cinema are tailwinds.
Order Growth and Stringent Cost Control Benefits Wayfair (W)
Per the Zacks analyst, Wayfair is benefiting from sequential growth in orders and lower costs that is helping it to report positive adjusted EBITDA and free cash flow.
New Upgrades
Business Restructuring, Focus on Asia, Rates Aid HSBC (HSBC)
Per the Zacks analyst, HSBC's restructuring initiatives, Asia focus expansion efforts, emphasis on profitable businesses, higher interest rates and decent loan demand will keep supporting financials.
Increased Demand & Strategic Initiatives Aid KB Home (KBH)
Per the Zacks analyst, increase in net orders, home deliveries and community count aid KB Home. Also, built-to-order model and Returns-Focused Growth Plan add to the uptrend.
Acquisition Of Dealerships & Franchises To Aid Group 1 (GPI)
Per the Zacks analyst, Group 1's (GPI) effort to expand and optimize its portfolio through acquisitions of dealerships and franchises are likely to boost its prospects.
New Downgrades
Weak Volumes & High Costs to Hurt Sealed Air's (SEE) Results
The Zacks analyst is concerned about the downtrend in Sealed Air's volumes owing to weakness in end markets and customer destocking. Inflated labor and operating costs will also hurt margins.
Nu Skin (NUS) Revenues Hurt by Volatile Currency Movements
Per the Zacks analyst, Nu Skin remains troubled by unfavorable currency rates. The company's second-quarter revenues were hurt by currency headwinds, and are likely to bear 2-3% adverse impact in 2023
Low COVID-19 Testing Sales Disrupt Margin for Labcorp (LH)
The Zacks analyst is worried about Labcorp posting a steady decline in adjusted operating income due to lower COVID testing revenues. Unfavorable mix impact from Ascension also continues to weigh in.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read P&G's (PG) Productivity & Cost Savings Plan to Aid Margins AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Strong Content Portfolio & Parks Business Aids Disney (DIS) Featured Reports New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail Per the Zacks analyst, Boston Scientific is expected to strongly gain from its strategic buyouts of Apollo Endosurgery and Acotec. Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Company (PG), AbbVie Inc. (ABBV) and The Walt Disney Company (DIS). Shares of AbbVie have gained +9.8% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +23.7%. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read P&G's (PG) Productivity & Cost Savings Plan to Aid Margins AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Strong Content Portfolio & Parks Business Aids Disney (DIS) Featured Reports New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail Per the Zacks analyst, Boston Scientific is expected to strongly gain from its strategic buyouts of Apollo Endosurgery and Acotec. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : 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 The Procter & Gamble Company (PG), AbbVie Inc. (ABBV) and The Walt Disney Company (DIS). | Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Company (PG), AbbVie Inc. (ABBV) and The Walt Disney Company (DIS). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read P&G's (PG) Productivity & Cost Savings Plan to Aid Margins AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Strong Content Portfolio & Parks Business Aids Disney (DIS) Featured Reports New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail Per the Zacks analyst, Boston Scientific is expected to strongly gain from its strategic buyouts of Apollo Endosurgery and Acotec. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : 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 The Procter & Gamble Company (PG), AbbVie Inc. (ABBV) and The Walt Disney Company (DIS). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read P&G's (PG) Productivity & Cost Savings Plan to Aid Margins AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth Strong Content Portfolio & Parks Business Aids Disney (DIS) Featured Reports New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail Per the Zacks analyst, Boston Scientific is expected to strongly gain from its strategic buyouts of Apollo Endosurgery and Acotec. Shares of AbbVie have gained +9.8% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +23.7%. |
22255.0 | 2023-08-23 00:00:00 UTC | CVS launches unit to market and co-produce biosimilars | ABBV | https://www.nasdaq.com/articles/cvs-launches-unit-to-market-and-co-produce-biosimilars-0 | nan | nan | Adds background throughout
Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market.
The company will also launch biosimilar Hyrimoz with Swiss drugmaker Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira.
Lawmakers and the Federal Trade Commission have been investigating the role of pharmacy benefits managers (PBMs), which negotiate drug prices with manufacturers, in rising healthcare costs this year.
CVS' unit Caremark, one of the largest in the U.S., has also been under scrutiny. Humira, which has a list price of $6,922 per month in the U.S., has not seen a significant decline in cost despite the market entry of eight biosimilars.
(Reporting by Leroy Leo and Pratik Jain in Bengaluru; Editing by Krishna Chandra Eluri)
((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company will also launch biosimilar Hyrimoz with Swiss drugmaker Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Adds background throughout Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. Lawmakers and the Federal Trade Commission have been investigating the role of pharmacy benefits managers (PBMs), which negotiate drug prices with manufacturers, in rising healthcare costs this year. | The company will also launch biosimilar Hyrimoz with Swiss drugmaker Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Lawmakers and the Federal Trade Commission have been investigating the role of pharmacy benefits managers (PBMs), which negotiate drug prices with manufacturers, in rising healthcare costs this year. CVS' unit Caremark, one of the largest in the U.S., has also been under scrutiny. | The company will also launch biosimilar Hyrimoz with Swiss drugmaker Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Adds background throughout Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. Lawmakers and the Federal Trade Commission have been investigating the role of pharmacy benefits managers (PBMs), which negotiate drug prices with manufacturers, in rising healthcare costs this year. | The company will also launch biosimilar Hyrimoz with Swiss drugmaker Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Adds background throughout Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. Lawmakers and the Federal Trade Commission have been investigating the role of pharmacy benefits managers (PBMs), which negotiate drug prices with manufacturers, in rising healthcare costs this year. |
22256.0 | 2023-08-23 00:00:00 UTC | CVS launches unit to market and co-produce biosimilars | ABBV | https://www.nasdaq.com/articles/cvs-launches-unit-to-market-and-co-produce-biosimilars | nan | nan | Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market.
The company will also launch biosimilar Hyrimoz with Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira.
(Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri)
((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company will also launch biosimilar Hyrimoz with Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company will also launch biosimilar Hyrimoz with Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company will also launch biosimilar Hyrimoz with Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company will also launch biosimilar Hyrimoz with Novartis' NOVN.S Sandoz from next year at a list price that is more than 80% lower to AbbVie's ABBV.N blockbuster arthritis drug Humira. Aug 23 (Reuters) - CVS Health Corp CVS.N said on Wednesday it has launched Cordavis, a unit that will work directly with manufacturers to commercialize and co-produce biosimilars for the U.S. market. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
22257.0 | 2023-08-23 00:00:00 UTC | 7 Very Oversold High-Yield Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/7-very-oversold-high-yield-stocks-to-buy-right-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you have the temptation to speculate, but are hesitant to go full bore into the madness of memes, oversold high-yield stocks to buy offer plenty of punch. Specifically, I’m focusing on well-established enterprises that just haven’t aligned with market sentiment. They may be down, but they’re certainly not out for the count.
With these ideas, you’re going to stay grounded with what you know. Arguably, all of the high-yield stocks below are household names. So, at some point, both retail and institutional investors may recognize the discounted opportunity. Along the way, you’ll pick up some passive income, basically enabling you to have your cake and eat it, too. If you’re ready to gamble the responsible way, below are oversold high-yield stocks to add to your portfolio.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
A pharmaceutical giant, AbbVie (NYSE:ABBV) draws my interest because of its acquisition of Allergan. With the buyout, AbbVie now controls Botox, which is an injection that purportedly improves appearance by relaxing the muscles that cause wrinkles. Fundamentally, as Millennials and Generation Z age and get their wrinkles, the social-media-crazed demographics should bolster demand for Botox. I see it as a long-term win-win.
Right now, though, Wall Street doesn’t see it that way. Instead, ABBV slipped nearly 9%. However, it’s up about 7% in the trailing year. Thus, it demonstrates the potential for recovering against red ink. Still, the near-term choppiness has presented a discounted opportunity for those seeking oversold high-yield stocks.
Specifically, AbbVie features a forward yield of 3.99%, well above the healthcare sector’s average yield of 1.58%. Also, the payout ratio comes in at 53.46%, which while somewhat elevated is well within reason considering the passive income. Finally, AbbVie commands 51 years of consecutive dividend increases, making it an attractive idea.
Morgan Stanley (MS)
Source: Ken Wolter / Shutterstock.com
With so much attention paid to the financial sector – and not in a particularly encouraging way – targeting Morgan Stanley (NYSE:MS) as one of the oversold high-yield stocks to buy might initially seem excessively risky. Even with the major indices gaining relatively robustly this year, MS finds itself below parity by over 3%. Worse yet, over the trailing one-year period, shares slipped 6%.
However, Morgan Stanley might be worth a look because it’s one of the biggest financial institutions. At the time of writing, the company carries a market capitalization of $137.5 billion. More importantly, Morgan Stanley posted holistic revenue growth in its second quarter. In other words, the firm posted year-over-year increases in interest and non-interest income.
Regarding passive income, the financial giant carries a forward yield of 4.1%. That’s noticeably higher than the financial sector’s average yield of 3.18%. Also, the payout ratio sits around the sweet spot at 46.34%, meaning investors should have confidence in yield sustainability.
Southern Company (SO)
Source: 360b / Shutterstock.com
Headquartered in Atlanta, Georgia, Southern Company (NYSE:SO) is a gas and electric utility holding firm. One of the main reasons why I like Southern, and enterprises in its field, is the natural monopoly concept. Basically, would-be competitors don’t even bother displacing utility giants because of the gargantuan barriers to entry. It’s a cynical idea, but that’s what drives SO as one of the top high-yield stocks.
Despite its practically permanent relevance, Southern hasn’t attracted much positive attention recently. Since the Jan. opener, SO is down nearly 6%. And over the trailing 365 days, shares slipped slightly over 14%. However, this is probably a blip on the radar, again because of the extraordinary relevance. Plus, you’re dealing with a market cap of nearly $74 billion.
While you’re waiting for the narrative to shift, Southern provides a forward yield of 4.13%. This comes in higher than the utility sector’s average yield of 3.75%. To be fair, the payout ratio is a bit toasty at 69.54%. Still, with 22 consecutive years of dividend increases, it’s a status management won’t want to give up on.
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
Easily ranking among the most controversial ideas for high-yield stocks to buy, pharmaceutical giant Pfizer (NYSE:PFE) isn’t exactly having a great time right now. Earlier, the company helped normalize social trends by forwarding a vaccine for the SARS-CoV-2 virus. Today, it’s basically persona non grata, especially with fears of Covid-19 falling into the toilet. Subsequently, PFE shares fell a worrying 28% since the Jan. opener.
Now, I suppose that contrarians could view PFE as a discount. On paper, PFE trades at 9.8x trailing earnings. Granted, critics may state that Pfizer may be a value trap. However, over the long run, I believe the company can leverage the lessons learned from the virus to forward advanced therapeutics for a myriad of other diseases.
In the meantime, investors can bank on the passive income. Currently, Pfizer carries a forward yield of 4.45%, well above the healthcare sector’s average yield of 1.58%. Also, PFE’s payout ratio comes in at 49.14%, within an acceptable range. Also, with 12 years of consecutive dividend increases, management will want to keep the trend going.
IBM (IBM)
Source: shutterstock.com/LCV
A classic example of oversold high-yield stocks to buy in my opinion, legacy technology stalwart IBM (NYSE:IBM) deserves a closer look. Yes, I get it. For all the underlying relevancies, IBM has shown little promise in the charts. Since the start of the year, shares sit at a hair below parity. Granted, it’s not a horrific decline by any stretch of the imagination. Still, it’s awfully disappointing compared to Big Blue’s tech peers.
However, IBM offers a legitimate discount. Priced at 14.89x forward earnings, this stat compares favorably to the sector median of 25.77x. Also, IBM doesn’t get the attention it deserves, not only for its development of artificial intelligence but also for leveraging said AI for practical applications. It’s up 5% in the trailing year but it could go so much higher.
Still, that only means a great discount for those seeking high-yield stocks. Right now, IBM carries a forward yield of 4.69%, well above the sector average of 1.37%. While the payout ratio is a bit lofty at 65.88%, it also commands 30 years of consecutive dividend increases.
Philip Morris (PM)
Source: Vytautas Kielaitis / Shutterstock
A controversial idea for oversold high-yield stocks, Philip Morris (NYSE:PM) is one of the world’s biggest tobacco firms. Of course, the underlying business may offend certain sensibilities. And on the surface level, PM doesn’t seem a bright idea. After all, research points to a global decline in smoking prevalence for both men and women. So, PM losing 7% of market value since the Jan. opener seems understandable.
However, available data indicates that these smokers didn’t just go cold turkey. Instead, sales of vaporizers or e-cigarettes (for you vaping aficionados, I don’t want to get into the whole sub-ohm versus above-ohm distinction) have increased. Thus, Philip Morris enjoys a large addressable market with its alternative smoking products, making its 7% year-to-date loss palatable.
Even better, those who aren’t put off by the underlying business can enjoy a forward yield of 5.4%. While the payout ratio is high at 73.89%, the company commands 14 years of consecutive dividend increases.
Kinder Morgan (KMI)
Source: JHVEPhoto / Shutterstock.com
While the hydrocarbon energy sector suffered amid the Federal Reserve’s hawkish efforts to curb inflation, the sector has made a comeback in recent sessions. However, the combination of social normalization trends and supply constraint concerns haven’t exactly helped Kinder Morgan (NYSE:KMI). As a midstream specialist focusing on energy storage and transportation, Kinder presently doesn’t enjoy downwind benefits. Over time, I believe it will.
Essentially, the company represents a critical cog in the broader energy infrastructure network. Further, as people and enterprises make their way out of the pandemic-fueled norms, we may see an increase in consumption. Plus, because consumers are holding onto their combustion vehicles for longer than ever, this framework spells good tidings for KMI.
Looking to the passive income category, Kinder features a forward yield of 6.55%. That’s significantly higher than the energy sector’s average yield of 4.24%. Still, it’s a risky idea among oversold high-yield stocks in that the payout ratio is 95.83%. if you’re willing to accept it, KMI could be fundamentally intriguing.
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.
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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) draws my interest because of its acquisition of Allergan. With the buyout, AbbVie now controls Botox, which is an injection that purportedly improves appearance by relaxing the muscles that cause wrinkles. Instead, ABBV slipped nearly 9%. | Finally, AbbVie commands 51 years of consecutive dividend increases, making it an attractive idea. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) draws my interest because of its acquisition of Allergan. With the buyout, AbbVie now controls Botox, which is an injection that purportedly improves appearance by relaxing the muscles that cause wrinkles. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) draws my interest because of its acquisition of Allergan. With the buyout, AbbVie now controls Botox, which is an injection that purportedly improves appearance by relaxing the muscles that cause wrinkles. Instead, ABBV slipped nearly 9%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) draws my interest because of its acquisition of Allergan. With the buyout, AbbVie now controls Botox, which is an injection that purportedly improves appearance by relaxing the muscles that cause wrinkles. Instead, ABBV slipped nearly 9%. |
22258.0 | 2023-08-23 00:00:00 UTC | Validea's Top Health Care Stocks Based On Martin Zweig - 8/23/2023 | ABBV | https://www.nasdaq.com/articles/valideas-top-health-care-stocks-based-on-martin-zweig-8-23-2023 | nan | nan | The following are the top rated Health Care stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 69% 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.
Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. The Company is engaged in the research and development, manufacturing, commercialization and sale of medicines and therapies. It offers products in various therapeutic categories, including immunology products, which include Humira, Skyrizi and Rinvoq; oncology products, which include Imbruvica and Venclexta/Venclyxto; aesthetics products that include Botox Cosmetic, The Juvederm Collection of Fillers and others; neuroscience products, such as Botox Therapeutic, Vraylar, Duopa and Duodopa, and Ubrelvy; eye care products, which consists of Lumigan/Ganfort, Alphagan/Combigan and Restasis, and other key products, which include Mavyret/Maviret, Creon, Lupron, Linzess/Constella and Synthroid. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses.
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.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
ENSIGN GROUP INC (ENSG) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Martin Zweig is 62% 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.
Company Description: The Ensign Group, Inc. is a holding company, which provides a range of skilled nursing and senior living services, physical, occupational and speech therapies, and other rehabilitative and healthcare services. The Company operates through two segments: skilled services and Standard Bearer. Th skilled services segment includes the operation of skilled nursing facilities and rehabilitation therapy services. The Standard Bearer segment consist of select properties owned by the Company through its real estate investment trust (REIT) and leased to skilled nursing and senior living operations, including its own operating subsidiaries and third-party operators. It provides its services at about 293 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. It also acquires, leases and owns healthcare real estate to service the post-acute care continuum through acquisition and investment opportunities.
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.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ENSIGN GROUP INC
ENSG Guru Analysis
ENSG Fundamental Analysis
SIMULATIONS PLUS INC (SLP) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Martin Zweig is 62% 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.
Company Description: Simulations Plus, Inc. is a developer of modeling and simulation software for drug discovery and development. The Company provides prediction of properties of molecules utilizing both artificial intelligence (AI) and machine-based technology. It also provides consulting services ranging from early drug discovery through preclinical and clinical trial development to regulatory submissions supporting product approval. It offers approximately 13 software products for pharmaceutical research and development, such as GastroPlus, DDDPlus, MembranePlus, ADMET Predictor, MedChem Designer, DILIsym, NAFLDsym, ILDsym, IPFsym, RENAsym, MITOsym, MonolixSuite and PKPlus. Its software and consulting services are provided to pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies and academic and regulatory agencies worldwide for use in the conduct of industry-based research. Its subsidiaries include Cognigen Corporation, DILIsym Services, Inc. and Lixoft.
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.
P/E RATIO: FAIL
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of SIMULATIONS PLUS INC
SLP Guru Analysis
SLP Fundamental Analysis
Martin Zweig Portfolio
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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. | Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. | Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis ENSIGN GROUP INC (ENSG) is a mid-cap growth stock in the Healthcare Facilities industry. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. | ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. | ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. |
22259.0 | 2023-08-22 00:00:00 UTC | ABBV Quantitative Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-quantitative-stock-analysis-5 | 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. |
22260.0 | 2023-08-21 00:00:00 UTC | 7 Top Dividend Stocks for Income and Stability | ABBV | https://www.nasdaq.com/articles/7-top-dividend-stocks-for-income-and-stability | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to investing in dividend stocks, some investors focus mainly on yield. This can sometimes lead to investing too heavily in stocks that, while offering a high yield, could end up becoming dividend traps, whether from cutting/suspending their dividends, and/or from shares declining in value, outweighing the large payouts. Other investors focus on dividend growth. They seek to buy and hold stocks with a history of increasing their payouts steadily over time. This strategy also has its flaws.
Namely, there are many dividend-paying stocks that are able to raise payouts above their rate of earnings growth for some time, but end up hitting a wall once their payout ratios start approaching the 100% mark.
With this in mind, a strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other words, besides yield and dividend growth history, payout ratios/dividend coverage, as well as the underlying strength of the company’s business, should be taken into consideration, as well. Applying this filter brings us to names like these seven top dividend stocks.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Pharmaceutical giant Abbvie (NYSE:ABBV) is well-regarded as a dividend stock for income. Not only does ABBV offer investors a moderately-high dividend yield (3.94%), but it’s also been increased for many years. Over the past five years, the average dividend growth rate for ABBV stock has been around 12.3%. With a payout ratio of 46.3%, considered healthy by dividend-focused investors, AbbVie’s dividend policy is likely sustainable, even as sell-side forecasts call for sluggish earnings growth in the coming year.
As InvestorPlace’s Alex Siriois recently argued, the decline of Humira (Abbvie’s flagship drug) has been what has driven the recent slump in the company’s results. However, with growing sales for newer drugs like Rinvoq picking up the slack, Abbvie is well-positioned to experience re-accelerated earnings growth. This, of course, bodes well for both ABBV’s future payouts and future stock price.
Automatic Data Processing (ADP)
Source: IgorGolovniov / Shutterstock
Take a look at recent commentary regarding Automatic Data Processing (NASDAQ:ADP), and you’ll see plenty of articles arguing that the stock is overvalued. However, while Automatic Data Processing’s current valuation (27.5 times earnings) is a bit rich, this premium multiple for ADP stock may be sustainable. That’s thanks to the company’s high projected earnings growth.
Along with the potential for this venerable, deep-moat business to continue growing earnings, ADP is also likely to maintain its decades-long streak of annual dividend growth. ADP’s 1.99% dividend has increased by an average of 13.7% annually over the past five years. With its strong potential to keep producing above-average returns, consider it one of the top dividend stocks.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
Among major integrated oil and gas stocks, Chevron (NYSE:CVX) may be your best choice, if you’re looking for income and stability. What makes this big oil name the best of the bunch when it comes to its qualities as a less-risky dividend stock?
For starters, CVX stock offers a higher dividend yield than comparable U.S.-based big oil stocks like Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP). XOM and COP’s forward yields are 3.31% and 1.74%, respectively.
Not only that, besides offering a higher yield, CVX is a “Dividend Aristocrat” – a company that increased its dividend for more than 25 years. In fact, Chevron has 35 years of dividend growth under its belt, with payouts increasing by an average of 6% annually over the past five years. If you’re bullish that crude oil’s recent rebound will continue, consider CVX.
Lockheed Martin (LMT)
Source: ranchorunner / Shutterstock.com
Lockheed Martin (NYSE:LMT) is another name that belongs on your list of blue-chip dividend stocks. Shares in this defense contractor have yet to attain dividend aristocrat status, but they’re getting close. Hitting 20 years of consecutive dividend growth this year, LMT is just five years away from joining the club.
However, that’s not the sole reason to add LMT stock to your portfolio. The main reason to do so is the fact this stock is another name that could deliver above-average total returns, through both growth and yield. Rising geopolitical tensions bode well for Lockheed Martin’s future results. Thanks to strong weapons demand, the company recently raised its full-year guidance.
Growth from this tailwind stands to be boosted by LMT’s dividend. The stock today has a forward dividend yield of 2.67%, and LMT’s payout has increased by an average of 8.6% annually over the past five years.
Lowe’s (LOW)
Source: Helen89 / Shutterstock.com
If steady dividend growth is a high priority, look no further than Lowe’s (NYSE:LOW). This home improvement retailer stock is not just a “Dividend Aristocrat,” but also a “Dividend King.” As I’ve noted previously, LOW has increased its dividend 59 years in a row.
Cash dividends for LOW stock have really increased over the past five years, rising by an average of nearly 20% annually. Sure, even as the company currently pays out just 30.2% of its earnings as dividends, future dividend growth may come at a far less rapid pace. Yet in the event this happens, Lowe’s shares could still continue to perform well.
Between the implementation of its “total home strategy” for organic growth, coupled with the company’s aggressive use of stock buybacks, Lowe’s has a strong chance of experiencing earnings growth in the coming years, with shares likely to move higher in line with this growth.
PepsiCo (PEP)
Source: suriyachan / Shutterstock.com
PepsiCo (NASDAQ:PEP) is a strong choice among dividend stocks in the consumer staples sector. Shares in the soft drink and snack foods behemoth just hit “Dividend King” status, and currently sport a forward yield of 2.84%.
Yes, the payout ratio for PEP stock is somewhat high, coming in currently at 65.2%. However, the company could keep raising its dividend, while at the same time not deviating too far above this payout level. Despite headwinds like inflation, Pepsico has managed to keep reporting strong “beat and raise” quarterly results.
With the inflation issue seemingly subsiding, PEP looks even more well-positioned to keep increasing its bottom line. Sell-side forecasts call for earnings growth of around 7.75% next year, and around 8.2% the year after that. This points to further dividend increases. Shares could also move higher in tandem with these increasing earnings.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
UnitedHealth Group (NYSE:UNH) has been one of the top large-cap growth stocks of the past decade. While the company has a moderately-sized dividend (1.51% forward yield), with dividend growth averaging 16.7% annually over the past five years, UNH’s payouts could increase at a faster clip than earnings, resulting in a higher yield over time.
Previously, I have pointed out that above-average earnings growth will lead to strong gains for UnitedHealth Group shares in the years ahead. Looking at the latest earnings forecasts, I stand by this past view. The company is expected to report double-digit increases in its earnings per share both in 2024 and 2025.
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 a payout ratio of 46.3%, considered healthy by dividend-focused investors, AbbVie’s dividend policy is likely sustainable, even as sell-side forecasts call for sluggish earnings growth in the coming year. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical giant Abbvie (NYSE:ABBV) is well-regarded as a dividend stock for income. Not only does ABBV offer investors a moderately-high dividend yield (3.94%), but it’s also been increased for many years. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical giant Abbvie (NYSE:ABBV) is well-regarded as a dividend stock for income. Not only does ABBV offer investors a moderately-high dividend yield (3.94%), but it’s also been increased for many years. Over the past five years, the average dividend growth rate for ABBV stock has been around 12.3%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical giant Abbvie (NYSE:ABBV) is well-regarded as a dividend stock for income. Not only does ABBV offer investors a moderately-high dividend yield (3.94%), but it’s also been increased for many years. Over the past five years, the average dividend growth rate for ABBV stock has been around 12.3%. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Pharmaceutical giant Abbvie (NYSE:ABBV) is well-regarded as a dividend stock for income. Not only does ABBV offer investors a moderately-high dividend yield (3.94%), but it’s also been increased for many years. Over the past five years, the average dividend growth rate for ABBV stock has been around 12.3%. |
22261.0 | 2023-08-21 00:00:00 UTC | These 3 Large-Cap Pharma Stocks Have Been Red-Hot | ABBV | https://www.nasdaq.com/articles/these-3-large-cap-pharma-stocks-have-been-red-hot | nan | nan | Large-cap pharmaceuticals have displayed relative strength over the last month, seeing notable buying pressure.
And three stocks from the realm – AbbVie ABBV, Novo Nordisk NVO, and Eli Lilly LLY – have been notably hot, all outperforming the S&P 500 handily during the period. This favorable price action is illustrated in the chart below.
Image Source: Zacks Investment Research
For those interested in riding the recent momentum, let’s take a closer look at how each currently stacks up.
AbbVie
AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health.
The company’s shares were boosted following its latest quarterly print, as we can see illustrated in the chart below. The company posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 4% and delivering revenue results modestly ahead of the consensus.
Image Source: Zacks Investment Research
The company is a Dividend Aristocrat, reflecting its commitment to increasingly rewarding shareholders. ABBV shares currently yield a sizable 3.9% annually paired with a payout ratio sitting sustainably at 47% of the company’s earnings.
Image Source: Zacks Investment Research
Novo Nordisk
Novo Nordisk is a global healthcare company and a leader in the worldwide diabetes market. Analysts have raised their expectations across several timeframes, with the trend particularly noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
It’s difficult to ignore the company’s growth profile, with earnings forecasted to soar 50% in its current fiscal year on 30% higher revenues. Peeking ahead to FY24, estimates allude to a further 15% earnings growth paired with a 12% sales bump.
The stock has a Growth Style Score of “A.”
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Shares may not entice value-focused investors, with the current 35.2X forward earnings multiple well above the five-year median. Still, investors have had little issue forking up the premium given the company’s growth, with NVO shares up nearly 40% in 2023.
Eli Lilly
Eli Lilly recently raised its full-year 2023 guidance following its last quarterly release; LLY now expects annual revenue in the range of $33.4 – $33.9 billion (previously $31.2 – $31.7 billion) and adjusted earnings of $9.70 – $9.90 per share (previously $8.65 – $8.85).
Analysts have revised their earnings expectations rapidly across the board following the release, reflecting optimism.
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Like NVO, Eli Lilly has big growth expectations, with earnings forecasted to see improvements of 20% and 35% in FY23 and FY24, respectively. Top line growth is robust, too, expected to climb 16% in FY23 and 17% in FY24.
And LLY shares provide a source of passive income, with shares currently yielding 0.8% annually. While the yield is on the lower end, the company’s 15% five-year annualized dividend growth rate helps to pick up the slack.
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Bottom Line
Large-cap pharmaceuticals have enjoyed buying pressure over the last month, delivering outsized gains to investors.
And all three stocks above – AbbVie ABBV, Novo Nordisk NVO, and Eli Lilly LLY – have been leading the move higher, all outperforming the S&P 500 over the period.
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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. | And three stocks from the realm – AbbVie ABBV, Novo Nordisk NVO, and Eli Lilly LLY – have been notably hot, all outperforming the S&P 500 handily during the period. AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. ABBV shares currently yield a sizable 3.9% annually paired with a payout ratio sitting sustainably at 47% of the company’s earnings. | Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. And three stocks from the realm – AbbVie ABBV, Novo Nordisk NVO, and Eli Lilly LLY – have been notably hot, all outperforming the S&P 500 handily during the period. AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. And three stocks from the realm – AbbVie ABBV, Novo Nordisk NVO, and Eli Lilly LLY – have been notably hot, all outperforming the S&P 500 handily during the period. AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | And three stocks from the realm – AbbVie ABBV, Novo Nordisk NVO, and Eli Lilly LLY – have been notably hot, all outperforming the S&P 500 handily during the period. AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. ABBV shares currently yield a sizable 3.9% annually paired with a payout ratio sitting sustainably at 47% of the company’s earnings. |
22262.0 | 2023-08-21 00:00:00 UTC | Regeneron's Eylea could return to growth after nod to high-dose version- analysts | ABBV | https://www.nasdaq.com/articles/regenerons-eylea-could-return-to-growth-after-nod-to-high-dose-version-analysts | nan | nan | Aug 21 (Reuters) - A quicker-than-expected U.S. approval of Regeneron Pharmaceuticals' REGN.O high-dose eye disease drug, Eylea, should help return the blockbuster treatment back to growth in the next few years, Wall Street analysts said.
The U.S. Food and Drug Administration approved the newer version of the drug on Friday, a few weeks ahead of schedule. In June, the agency had declined to approve it due to manufacturing issues at contract manufacturer Catalent CTLT.N.
The drug was approved for the same diseases as the previous version, wet age-related macular degeneration, diabetic macular edema and diabetic retinopathy.
A longer dosing gap for the drug could help Regeneron take on rival Roche's ROG.S Vabysmo and also help soften the blow from incoming cheaper copycat drugs, analysts said.
The approval does not eliminate all concerns around competition, but it does minimize the hit to Regeneron that has new intellectual property and potential regulatory exclusivity around the higher-dose version, BMO analyst Evan Seigerman said.
"We feel like this approval ... still could not come soon enough. We believe now that this franchise is well positioned to return to growth," said Piper Sandler analyst Christopher Raymond.
Regeneron priced the drug at $2,625 per single-use vial, which at least four analysts said was above their expectations. The price represents a roughly 20% premium to Roche's Vabysmo.
Analysts also said Regeneron could switch over patients taking the standard dose to the high-dose version, which would be protected by patents, and cushion the impact from cheaper biosimilar drugs expected for the standard dose in 2025.
While Eylea's sales have fallen for the past few quarters, Regeneron's shares trade at 19.1-times their 12-month forward earnings estimates, higher than 10.8 for rival biotech firm Gilead GILD.O and 13.6 for AbbVie ABBV.N.
(Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Eylea's sales have fallen for the past few quarters, Regeneron's shares trade at 19.1-times their 12-month forward earnings estimates, higher than 10.8 for rival biotech firm Gilead GILD.O and 13.6 for AbbVie ABBV.N. Aug 21 (Reuters) - A quicker-than-expected U.S. approval of Regeneron Pharmaceuticals' REGN.O high-dose eye disease drug, Eylea, should help return the blockbuster treatment back to growth in the next few years, Wall Street analysts said. The approval does not eliminate all concerns around competition, but it does minimize the hit to Regeneron that has new intellectual property and potential regulatory exclusivity around the higher-dose version, BMO analyst Evan Seigerman said. | While Eylea's sales have fallen for the past few quarters, Regeneron's shares trade at 19.1-times their 12-month forward earnings estimates, higher than 10.8 for rival biotech firm Gilead GILD.O and 13.6 for AbbVie ABBV.N. Aug 21 (Reuters) - A quicker-than-expected U.S. approval of Regeneron Pharmaceuticals' REGN.O high-dose eye disease drug, Eylea, should help return the blockbuster treatment back to growth in the next few years, Wall Street analysts said. The drug was approved for the same diseases as the previous version, wet age-related macular degeneration, diabetic macular edema and diabetic retinopathy. | While Eylea's sales have fallen for the past few quarters, Regeneron's shares trade at 19.1-times their 12-month forward earnings estimates, higher than 10.8 for rival biotech firm Gilead GILD.O and 13.6 for AbbVie ABBV.N. Aug 21 (Reuters) - A quicker-than-expected U.S. approval of Regeneron Pharmaceuticals' REGN.O high-dose eye disease drug, Eylea, should help return the blockbuster treatment back to growth in the next few years, Wall Street analysts said. A longer dosing gap for the drug could help Regeneron take on rival Roche's ROG.S Vabysmo and also help soften the blow from incoming cheaper copycat drugs, analysts said. | While Eylea's sales have fallen for the past few quarters, Regeneron's shares trade at 19.1-times their 12-month forward earnings estimates, higher than 10.8 for rival biotech firm Gilead GILD.O and 13.6 for AbbVie ABBV.N. Aug 21 (Reuters) - A quicker-than-expected U.S. approval of Regeneron Pharmaceuticals' REGN.O high-dose eye disease drug, Eylea, should help return the blockbuster treatment back to growth in the next few years, Wall Street analysts said. The U.S. Food and Drug Administration approved the newer version of the drug on Friday, a few weeks ahead of schedule. |
22263.0 | 2023-08-20 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-47 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22264.0 | 2023-08-18 00:00:00 UTC | VettaFi Voices On: The Coming End of Earnings Season | ABBV | https://www.nasdaq.com/articles/vettafi-voices-on%3A-the-coming-end-of-earnings-season | nan | nan | Hi VettaFi Voices, we are heading toward the last week of the Q2 earnings season. Now seems like a good time to assess how things have gone so far and what we can expect from next week. Has it been a strong or weak earnings season? And have the reported earnings shown any kind of trend or given any indications regarding the health of the U.S. equity markets and the U.S. economy?
Todd Rosenbluth, director of research: I saw as of this past weekend that 90% of S&P 500 companies reported results. Roughly 80% of companies are beating Wall Street EPS expectations. However, the main driver of positive earnings surprises has been cost cutting, not revenue growth. Eight of the eleven sectors were reporting year-over-year earnings growth, led by the Consumer Discretionary and Communication Services sectors.
That should be a good thing for sector ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Communication Services Select Sector SPDR Fund (XLC) that are offered by State Street Global Advisors but also Vanguard Consumer Discretionary ETF (VCR) and Vanguard Communication Services ETF (VOX) from Vanguard and the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) from Invesco. However, FactSet noted that stocks like Tesla (TSLA) are not responding well after strong earnings. Why? Because the growth outlook is not bullish for many companies. Upcoming quarterly results are for modest 1% revenue growth, which means more cost-cutting.
Inflation Fatigue
Heather Bell, managing editor: The Wall Street Journal published a similar article on Thursday about how a better-than-expected earnings season isn't really enticing equity investors. Consumer confidence was pretty strong this past July. However, the WSJ article mentions "inflation fatigue" affecting consumers right now as a possible headwind for companies going forward. Does that mean things like Consumer Staples, health care, and utilities might benefit? The Sector SPDRs for those sectors are down year-to-date, with the Utilities Select Sector SPDR Fund (XLU) by far the worst performer among that lineup of funds.
Rosenbluth: Consumer staples and utilities tend to have slower earnings growth in good times. But yes, more stable earnings if a recession or an economic slowdown occurs. Healthcare tends to have a little bit more growth.
This is a good time to mention quality ETFs. Those like the iShares MSCI USA Quality Factor ETF (QUAL) and Invesco S&P 500 Quality ETF (SPHQ) have strong balance sheets and consistent earnings records. In addition, there's the Pacer US Cash Cows 100 ETF (COWZ), American Century U.S. Quality Growth ETF (QGRO), and VictoryShares Free Cash Flow ETF (VFLO) that are more growth-oriented with cash flow as the focal point. These ETFs are diversified across sectors but are different. For example, QGRO owns Booking Holdings (BKNG), Synopsis (SNPS), and Ulta Beauty (ULTA) as top positions. VFLO has AbbVie (ABBV), Cigna (CI), and PulteGroup (PHM) as top positions.
I also like the WisdomTree U.S. LargeCap Fund (EPS), which is earnings weighted and has a fee of just 0.08%, less than the SPDR S&P 500 Index ETF Trust (SPY). Exxon Mobil (XOM) has a larger weighting in the WisdomTree ETF than SPY.
I pay less attention to energy earnings than Stacey Morris, and I am eager for her take on MLPs that are inside the index behind the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR).
MLP Earnings Season Mixed
Stacey Morris, head of energy research: Thanks, Todd. The earnings season for the midstream space was generally more mixed this quarter. It had some strong results and some reports that fell short. Though earnings were mixed, companies continued to execute well in terms of returning excess cash to shareholders. We saw ongoing positive trends for distribution growth from MLPs, with ~40% of AMLP's underlying index by weighting and increasing their payouts sequentially. The corporations in ENFR's underlying index tended to be more active on the buyback front this quarter.
Rosenbluth: Stacey, are MLPs still buying back stock like they had been before, boosted by strong cash flow?
Morris: The midstream space collectively spent over $1 billion on repurchases in 2Q23, up from 1Q23 levels. However, MLPs have generally been less active with buybacks this year. This has to do with a combination of favoring distribution growth and few pullbacks creating windows of opportunity. Corporations like Cheniere Energy (LNG), Kinder Morgan (KMI), Targa Resources (TRGP), and Williams (WMB) have been leading the way on repurchases.
Rosenbluth: Back to consumer staples, Wal-Mart (WMT) reported strong results earlier today and raised its full-year guidance. E-commerce sales jumped 24%, which is a good sign. WMT is a key holding in the Consumer Staples Select Sector SPDR Fund (XLP) and the Vanguard Consumer Staples ETF (VDC). Interestingly, it has an 8% weighting in the VanEck Retail ETF (RTH). The company’s stock is down 2% as I type this on Thursday. Meanwhile, Target saw weaker earnings results on Thursday, including a 5% drop in sales. However, the stock is up 2%. This will likely shift as the day goes on.
It feels like a while ago, but Amazon.com (AMZN)’s second-quarter earnings crushed expectations. Alphabet (GOOGL) was strong too. Among the ETFs that were boosted by this were the growth-oriented Invesco QQQ Trust (QQQ) and iShares S&P 500 Growth ETF (IVW).
AI Companies Having a Strong Earnings Season
Zeno Mercer, research analyst, Robo Global: With 74% of companies in the THNQ Artificial Intelligence Index reporting, we’ve seen 62% beating expectations on revenue with an average surprise of 1.4% and growth of 11.2%. We’ve also seen 68% beating EPS expectations with an average surprise of 10.9% at 25.2% growth.
We’re definitely starting to see the AI play show signs of an upward trajectory across the different subsectors. Nine of the 11 subsectors grew year over year. Despite the inflow of attention given to AI this year, coming off of tough comps (2 years of post-COVID growth), we’re actually in a trough of sorts, currently led by companies like NVIDIA (NVDA), Arista Networks (ANET), Crowdstrike (CRWD), Samsara (IOT) and Snowflake (SNOW). Projections are pointing to a rebound to 13.2% the following year.
This all being said, earnings and sales growth are outpacing the overall market. They are expected to ramp up over the following two years as AI adoption drives demand and expands. Many semiconductor and semiconductor equipment manufacturers are still under pressure as a PC /mobile market slowdown hits globally. Additionally, Chinese restrictions are impacting +10% of revenues for many of these companies.
Data Analytics Firms Announce Slowdowns
Longer term, there is a lot of effort and capital being invested into expanding chip production into the EU and USA (such as via the CHIPS and Science Act). This, coupled with additional AI infrastructure investment, should more than offset the headwinds. Most surprising so far has been the slowdown and investor reaction regarding data analytics players like Alteryx (AYX) and Datadog (DDOG), which both announced slowdowns and more conservative guidance for the second half of this year.
Ultimately, however, the more AI integrates into the enterprise and life, the more important big data/analytics platforms become and the more money they will spend on them. Speaking of this subsector, we just had New Relic (NEWR) receive a take-private buyout offer from TPG and Francisco Partners a few weeks back.
Next week we have perhaps the biggest AI tell of them all–NVIDIA’s earnings on Aug 23. It’s clear that the demand for AI chips isn’t slowing down anytime soon. The same goes for accompanying AI software that not only relies on these chips but begets more demand as applications expand. Whether this translates to a short-term guidance raise to match the high valuations, we’ll have to see next week.
Rosenbluth: AI has been in focus this year, but especially in August. We have our AI Symposium on Aug 30 and then a webcast on Aug 31, Exploring the Impact of Generative AI on Robotics.
For more news, information, and strategy, visit the Energy Infrastructure Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VFLO has AbbVie (ABBV), Cigna (CI), and PulteGroup (PHM) as top positions. Inflation Fatigue Heather Bell, managing editor: The Wall Street Journal published a similar article on Thursday about how a better-than-expected earnings season isn't really enticing equity investors. Corporations like Cheniere Energy (LNG), Kinder Morgan (KMI), Targa Resources (TRGP), and Williams (WMB) have been leading the way on repurchases. | VFLO has AbbVie (ABBV), Cigna (CI), and PulteGroup (PHM) as top positions. That should be a good thing for sector ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Communication Services Select Sector SPDR Fund (XLC) that are offered by State Street Global Advisors but also Vanguard Consumer Discretionary ETF (VCR) and Vanguard Communication Services ETF (VOX) from Vanguard and the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) from Invesco. MLP Earnings Season Mixed Stacey Morris, head of energy research: Thanks, Todd. | VFLO has AbbVie (ABBV), Cigna (CI), and PulteGroup (PHM) as top positions. That should be a good thing for sector ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Communication Services Select Sector SPDR Fund (XLC) that are offered by State Street Global Advisors but also Vanguard Consumer Discretionary ETF (VCR) and Vanguard Communication Services ETF (VOX) from Vanguard and the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) from Invesco. In addition, there's the Pacer US Cash Cows 100 ETF (COWZ), American Century U.S. Quality Growth ETF (QGRO), and VictoryShares Free Cash Flow ETF (VFLO) that are more growth-oriented with cash flow as the focal point. | VFLO has AbbVie (ABBV), Cigna (CI), and PulteGroup (PHM) as top positions. I also like the WisdomTree U.S. LargeCap Fund (EPS), which is earnings weighted and has a fee of just 0.08%, less than the SPDR S&P 500 Index ETF Trust (SPY). AI Companies Having a Strong Earnings Season Zeno Mercer, research analyst, Robo Global: With 74% of companies in the THNQ Artificial Intelligence Index reporting, we’ve seen 62% beating expectations on revenue with an average surprise of 1.4% and growth of 11.2%. |
22265.0 | 2023-08-18 00:00:00 UTC | Notable ETF Outflow Detected - IWY, GOOGL, V, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-iwy-googl-v-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 $697.7 million dollar outflow -- that's a 10.0% decrease week over week (from 44,950,000 to 40,450,000). Among the largest underlying components of IWY, in trading today Alphabet Inc (Symbol: GOOGL) is off about 2.5%, Visa Inc (Symbol: V) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. 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 $114.66 per share, with $165.41 as the 52 week high point — that compares with a last trade of $153.45. 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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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 Alphabet Inc (Symbol: GOOGL) is off about 2.5%, Visa Inc (Symbol: V) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) 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 IWY, in trading today Alphabet Inc (Symbol: GOOGL) is off about 2.5%, Visa Inc (Symbol: V) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. 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 $114.66 per share, with $165.41 as the 52 week high point — that compares with a last trade of $153.45. 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 Alphabet Inc (Symbol: GOOGL) is off about 2.5%, Visa Inc (Symbol: V) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) 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 iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $697.7 million dollar outflow -- that's a 10.0% decrease week over week (from 44,950,000 to 40,450,000). 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 $114.66 per share, with $165.41 as the 52 week high point — that compares with a last trade of $153.45. | Among the largest underlying components of IWY, in trading today Alphabet Inc (Symbol: GOOGL) is off about 2.5%, Visa Inc (Symbol: V) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) 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 iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $697.7 million dollar outflow -- that's a 10.0% decrease week over week (from 44,950,000 to 40,450,000). 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 $114.66 per share, with $165.41 as the 52 week high point — that compares with a last trade of $153.45. |
22266.0 | 2023-08-18 00:00:00 UTC | Pharma Stock Roundup: FDA Okays PFE & JNJ Drugs, EU Approves ABBV's Migraine Drug | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-fda-okays-pfe-jnj-drugs-eu-approves-abbvs-migraine-drug | nan | nan | This week, the FDA approved Pfizer’s PFE Elrexfio (elranatamab) for relapsed or refractory multiple myeloma (“RRMM”) and J&J’s JNJ oral combination tablet, Akeega to treat BRCA-positive metastatic castration-resistant prostate cancer (mCRPC). The European Commission approved AbbVie’s ABBV Aquipta (atogepant) for preventive treatment of migraine in adults. Novartis’ NVS generics division, Sandoz announced positive data from a phase III study evaluating a biosimilar version of Regeneron Pharmaceuticals’ REGN Eylea
Recap of the Week’s Most Important Stories
FDA Approves Pfizer’s Elranatamab for Multiple Myeloma: The FDA granted accelerated approval to Pfizer’s BCMA-CD3-targeted agent Elrexfio (elranatamab) for treating heavily pre-treated patients with RRMM). Continued approval of the drug will be based on verification of clinical benefit in a confirmatory study. The FDA’s approval of Elrexfio is based on data from the pivotal phase II MagnetisMM-3 study, which evaluated elranatamab in heavily pretreated patients with RRMM who received Elrexfio as their first BCMA-directed therapy. Data from the study showed early and deep responses and a manageable safety profile for elranatamab. Elranatamab’s marketing authorization application is also under review in the EU.
FDA Approves J&J’s Prostate Cancer Tablet Akeega: The FDA granted approval to J&J’s Akeega, which is a combination of Zejula (niraparib) and abiraterone acetate, plus prednisone in the form of a dual action tablet, for the first-line treatment of adult patients with deleterious or suspected deleterious BRCA-positive mCRPC. The approval of Akeega is based on results from the phase III MAGNITUDE study. Data from the study showed that patients treated with Akeega plus prednisone achieved a reduction of 47% in radiographic progression-free survival compared to abiraterone acetate plus prednisone in patients with BRCA-positive mCRPC. Akeega was approved in the EU in April.
AbbVie’s Atogepant Gets EU Nod for Preventive Treatment of Migraine: The European Commission approved AbbVie’s CGRP receptor antagonist, Aquipta (atogepant) in Europe for prophylaxis (prevention) of migraine in adults who have four or more migraine days per month. This approval was based on results from two pivotal phase III studies, PROGRESS and ADVANCE, evaluating 60 mg dose strength of Aquipta/Qulipta in adult patients with chronic migraine or episodic migraine, respectively.
Atogepant is already approved in the United States as Qulipta for the preventive treatment of both chronic and episodic migraine. With the latest approval in EU, Aquipta has become the first and only once-daily oral CGRP receptor antagonist to be approved for the preventive treatment of both chronic and episodic migraine in the European Union.
Novartis’ Eylea Biosimilar Meets Goal in Study: Novartis unit Sandoz’s phase III study called Mylight, evaluating a biosimilar version of Regeneron’s blockbuster eye drug, Eylea (aflibercept), met its primary efficacy endpoint. It showed no clinically meaningful differences to the reference biologic, Eylea. The study showed therapeutic equivalence in mean change of best corrected visual acuity from baseline to week 8 between the biosimilar aflibercept and Eylea.
Eylea is presently approved to improve visual acuity in patients with neovascular age-related macular degeneration, diabetic macular edema, macular edema secondary to retinal vein occlusion and other specific neovascular retinal diseases. Sandoz plans to launch four key biosimilar products over the next few years, aflibercept being one of them.
The NYSE ARCA Pharmaceutical Index rose 0.08% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Merck rose the most (up 3.2%), while Roche declined the most (3.1%).
In the past six months, Lilly has risen the most (63.7%), while Pfizer has declined the most (15.5%).
(See the last pharma stock roundup here: LLY, BAYRY Post Q2 Results, NVO’s Wegovy Cuts Heart Attack Risk)
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. | The European Commission approved AbbVie’s ABBV Aquipta (atogepant) for preventive treatment of migraine in adults. AbbVie’s Atogepant Gets EU Nod for Preventive Treatment of Migraine: The European Commission approved AbbVie’s CGRP receptor antagonist, Aquipta (atogepant) in Europe for prophylaxis (prevention) of migraine in adults who have four or more migraine days per month. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie’s Atogepant Gets EU Nod for Preventive Treatment of Migraine: The European Commission approved AbbVie’s CGRP receptor antagonist, Aquipta (atogepant) in Europe for prophylaxis (prevention) of migraine in adults who have four or more migraine days per month. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. The European Commission approved AbbVie’s ABBV Aquipta (atogepant) for preventive treatment of migraine in adults. | AbbVie’s Atogepant Gets EU Nod for Preventive Treatment of Migraine: The European Commission approved AbbVie’s CGRP receptor antagonist, Aquipta (atogepant) in Europe for prophylaxis (prevention) of migraine in adults who have four or more migraine days per month. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. The European Commission approved AbbVie’s ABBV Aquipta (atogepant) for preventive treatment of migraine in adults. | The European Commission approved AbbVie’s ABBV Aquipta (atogepant) for preventive treatment of migraine in adults. AbbVie’s Atogepant Gets EU Nod for Preventive Treatment of Migraine: The European Commission approved AbbVie’s CGRP receptor antagonist, Aquipta (atogepant) in Europe for prophylaxis (prevention) of migraine in adults who have four or more migraine days per month. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22267.0 | 2023-08-18 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-14 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22268.0 | 2023-08-17 00:00:00 UTC | Trillion-Dollar Trio: These 3 Super Growth Stocks Will Dominate the Market by 2035 | ABBV | https://www.nasdaq.com/articles/trillion-dollar-trio%3A-these-3-super-growth-stocks-will-dominate-the-market-by-2035 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A trillion-dollar valuation by a single company was once unthinkable even just a few years ago. After all, the S&P 500 was created in 1957 when the total market capitalization of the index was $172 billion. Today, 41 of the stocks comprising the index have a valuation greater than that.
Now there are six stocks worth over $1 trillion. Apple (NASDAQ:AAPL) is worth $2.8 trillion itself, some 16 times more than the entire S&P 500 was worth nearly 70 years ago. It could lose more than half its valuation and still be worth more than $1 trillion!
Because companies continue to innovate, acquire, and grow, it’s natural and expected that we will see even more companies hit 13-figure valuations in the future. Over the next decade or so, the following three companies will become the next trillion-dollar stocks.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Top payment processor Visa (NYSE:V) is already almost halfway to the finish line at $488 billion. It will only require 6% compounded annual growth for it to cross over the threshold.
Wall Street forecasts that Visa will grow earnings 15% annually for the next five years, slightly less than the 20% annual growth it saw over the last five years. Yet it stands a greater chance of growing earnings faster than the forecast. Visa currently processes 86% more payments volume than nearest rival Mastercard (NYSE:MA), $10.9 trillion worth as of the end of 2021.
A bet on Visa becoming a trillion-dollar stock by 2035 is a bet on the long-term growth in U.S. consumer spending, and on an ever-expanding U.S. economy. Both seem like fairly safe bets. Not that it will occur in a straight line. It will likely even suffer periods of stagnation and decline. Overall, though, Visa seems an easy pick to hit a trillion-dollar valuation.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Facebook owner Meta Platforms (NASDAQ:META) can see the end goal in the distance because it has a $788 billion as of this writing. It also once was worth over a trillion dollar not that long ago before the stock retreated. To borrow a football metaphor, it should easily be able to move the chains down the field again.
Whatever the problems people have with social media, and they are legion, billions still use them on a daily basis. Meta is the premiere social media platform, for good or ill. Facebook, Instagram, and WhatsApp are a killer trio of apps that engage a combined 3.8 billion monthly active users.
It also recently launched so-called Twitter-killer Threads. While it did manage to sign up 100 million users in a few days of launching, the jury is still out on whether it has legs. And few companies have as much invested in the metaverse as Meta Platforms. If that pans out as expected — even goes half the way — Meta will score big and should readily see its valuation rise.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
The last potential trillion-dollar baby is AbbVie (NYSE:ABBV), the pharmaceutical stock spun off from Abbott Laboratories (NYSE:ABT) in 2013. With a market cap of just $268 billion, it is the one furthest away from achieving that valuation. Over the next dozen years, it will have to expand at a compounded rate of nearly 12% annually. That’s a tall order to be sure, but there is significant potential.
First, AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue. The therapy saw the first biosimilar hit the market in January after losing patent protection. Sales were already down by 25% by that point. Yet in the just completed second quarter, AbbVie still registered over $4 billion in net global Humira sales.
There will be more generic versions rolling out in the months and quarters to come. AbbVie, though, has a robust pipeline of drugs that will help fill the gap if not completely bridge it. It is also seeking to expand the drug’s indicated uses.
Plaque psoriasis treatment Skyrizi is a billion-dollar drug for AbbVie as is Rinvoq, a therapy for Crohn’s disease. More drugs are coming.
Whether any of them will be the massive hit Humira was remains to be seen. The continued advance of new therapies to market means AbbVie is an excellent growth stock to buy.
On the date of publication, Rich Duprey held a LONG position in 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: Piotr Swat / Shutterstock.com The last potential trillion-dollar baby is AbbVie (NYSE:ABBV), the pharmaceutical stock spun off from Abbott Laboratories (NYSE:ABT) in 2013. First, AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue. Yet in the just completed second quarter, AbbVie still registered over $4 billion in net global Humira sales. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com The last potential trillion-dollar baby is AbbVie (NYSE:ABBV), the pharmaceutical stock spun off from Abbott Laboratories (NYSE:ABT) in 2013. First, AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue. Yet in the just completed second quarter, AbbVie still registered over $4 billion in net global Humira sales. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com The last potential trillion-dollar baby is AbbVie (NYSE:ABBV), the pharmaceutical stock spun off from Abbott Laboratories (NYSE:ABT) in 2013. First, AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue. Yet in the just completed second quarter, AbbVie still registered over $4 billion in net global Humira sales. | Yet in the just completed second quarter, AbbVie still registered over $4 billion in net global Humira sales. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com The last potential trillion-dollar baby is AbbVie (NYSE:ABBV), the pharmaceutical stock spun off from Abbott Laboratories (NYSE:ABT) in 2013. First, AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue. |
22269.0 | 2023-08-17 00:00:00 UTC | AbbVie (ABBV) Gets EU Approval for Migraine Prevention Drug | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gets-eu-approval-for-migraine-prevention-drug | nan | nan | AbbVie ABBV announced that the European Commission (“EC”) approved Aquita (atogepant) for the prophylaxis (prevention) of migraines in adults who have four or more migraine days per month.
Following the approval, Qulipta is now the first and only oral calcitonin gene-related peptide (“CGRP”) receptor antagonist approved to prevent migraine across frequencies, including episodic and chronic migraines.
People living with episodic migraines get fewer than 15 headaches in a month, while those with chronic migraines experience headaches for at least 15 days a month.
The EC decision was based on the data from two late-stage studies — PROGRESS and ADVANCE studies — which evaluated a 60mg dose of Aquipta in adult patients with chronic migraine and episodic migraine, respectively. Both studies met their primary endpoint of Aquipta achieving a statistically significant reduction in mean monthly migraine days from baseline compared with a placebo over a 12-week treatment period.
The FDA has already approved the drug to prevent migraine and is currently being marketed in the United States under the brand name Qulipta.
In the year so far, shares of AbbVie have dropped 6.2% against the industry‘s 7.9% rise.
Image Source: Zacks Investment Research
Currently, many CGRP drugs are approved in the European Union for migraine prevention, like Pfizer’s PFE Vydura and Eli Lilly’s LLY Emgality. Pfizer’s Vydura is an oral drug which received EC approval last year for preventive treatment of episodic migraine in adults, Eli Lilly’s Emgality is a monoclonal antibody approved for preventive treatment of migraine in adults by the EC in 2018.
Aquipta likely holds an edge over the Pfizer and Eli Lilly drugs since it is the currently the only oral drug approved for the prevention of episodic and chronic migraine. Though Emgality is also approved for similar indication to Aquipta, it is administered via a subcutaneous injection. Pfizer’s Vydura and Lilly’s Emgality are also approved for similar indications in the United States.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold).A better-ranked stock in large-cap pharma sector is Johnson & Johnson JNJ, which carries 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 J&J’s 2023 earnings per share have increased from $10.65 to $10.75. During the same period, the earnings estimates per share for 2024 have risen from $11.10 to $11.29. Shares of J&J are down 2.4% in the year-to-date period.
Earnings of J&J beat estimates in each of the last four quarters, witnessing an average surprise of 5.58%. In the last reported quarter, J&J’s earnings beat estimates by 7.28%.
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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 the European Commission (“EC”) approved Aquita (atogepant) for the prophylaxis (prevention) of migraines in adults who have four or more migraine days per month. In the year so far, shares of AbbVie have dropped 6.2% against the industry‘s 7.9% rise. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold).A better-ranked stock in large-cap pharma sector is Johnson & Johnson JNJ, which carries a Zacks Rank #2 (Buy). | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold).A better-ranked stock in large-cap pharma sector is Johnson & Johnson JNJ, which carries a Zacks Rank #2 (Buy). Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that the European Commission (“EC”) approved Aquita (atogepant) for the prophylaxis (prevention) of migraines in adults who have four or more migraine days per month. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold).A better-ranked stock in large-cap pharma sector is Johnson & Johnson JNJ, which carries a Zacks Rank #2 (Buy). Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that the European Commission (“EC”) approved Aquita (atogepant) for the prophylaxis (prevention) of migraines in adults who have four or more migraine days per month. | AbbVie ABBV announced that the European Commission (“EC”) approved Aquita (atogepant) for the prophylaxis (prevention) of migraines in adults who have four or more migraine days per month. In the year so far, shares of AbbVie have dropped 6.2% against the industry‘s 7.9% rise. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold).A better-ranked stock in large-cap pharma sector is Johnson & Johnson JNJ, which carries a Zacks Rank #2 (Buy). |
22270.0 | 2023-08-17 00:00:00 UTC | 1 High-Yield Dividend Stock That Looks Like a Screaming Buy | ABBV | https://www.nasdaq.com/articles/1-high-yield-dividend-stock-that-looks-like-a-screaming-buy | nan | nan | Pharma giant AbbVie (NYSE: ABBV) performed poorly in the first part of the year, especially after it reported its first-quarter results. This was its first quarterly update following the loss of patent exclusivity for its blockbuster immunology medicine Humira in the U.S. However, AbbVie has performed much better over the past three weeks, although its shares remain in the red for the year.
Will AbbVie's rebound continue? It's difficult to predict how things will unfold in the next six months, but investors interested in dividend-paying stocks should consider scooping up shares of AbbVie at current levels, whether or not it performs well in the short run. Here is why.
Revenue is declining, but that won't last forever
The loss of Humira's patent exclusivity is leaving a gaping hole in AbbVie's business. It isn't just that it was the company's best-selling medicine. It was one of the top-selling drugs in the history of the entire pharmaceutical industry. Even after losing patent exclusivity in Europe in 2018, it grew to its peak annual sales of $21.2 billion last year after a brief decline post-2018.
Now that biosimilars have entered the U.S. market, it's not surprising to see AbbVie's sales decline, although things aren't that catastrophic. In the second quarter, AbbVie's net revenue came in at $13.9 billion, dropping 5% year over year. Digging deeper, Humira's sales dropped by about 25%, but Skyrizi and Rinvoq -- AbbVie's two other immunology stars -- picked up much of the slack, growing revenue by 50% and 55% year over year, respectively. There is progress elsewhere, too.
Cancer medicine Venclexta, Botox Therapeutics, migraine treatment Qulipta, and depression medicine Vraylar all saw solid increases. On the bottom line, AbbVie's adjusted earnings per share of $2.91 was 13.6% lower than the year-ago period. The top-line decline isn't great, but investors will have to get accustomed to that for now. Management expects revenue to start growing again in 2025.
Still, considering it is losing its main cash cow since its 2013 split from Abbott Laboratories, AbbVie's financial results aren't that bad.
You can rest easy: The dividend is safe
AbbVie has consistently raised its dividends over the past 10 years. The company is also a Dividend King, having raised its payout for 51st consecutive years (including its time as part of Abbott). It also offers a competitive yield of 3.89%, compared to just 1.54% for the S&P 500. There are excellent reasons to believe that AbbVie's dividend is about as safe as they come.
First, the company raised its payouts again this year despite the challenges with Humira.
ABBV Dividend data by YCharts.
That should send a signal to investors. Management knows better than anyone that the next couple of years will be challenging as AbbVie adjusts to this post-Humira world. Despite these challenges, the company is confident that its business can still support payout raises -- that's a great sign. Second, there are good indications within the company's financial results that it can eventually make up for the loss of exclusivity of Humira.
That is especially true with its two immunology medicines, Skyrizi and Rinvoq. These two therapies have earned a bunch of indications that substantially overlap with those of Humira. In some cases, they proved just as effective -- or even more so -- than AbbVie's former crown jewel. For instance, in one clinical trial, Skyrizi proved superior to Humira in treating people with plaque psoriasis, specifically in clearing patients' skin.
Third, AbbVie should successfully add more products to its vast portfolio, with dozens of ongoing programs spanning several therapeutic areas, from oncology to immunology, eye care, neuroscience, etc. AbbVie has more than 50 programs in phase 2 or phase 3 studies. Many are targeting label expansions for existing products, but some are brand-new clinical compounds. For instance, AbbVie is going after Alzheimer's Disease (AD) -- a notoriously difficult target -- with several medicines.
It's too early to tell whether AbbVie's attempted ventures into the AD market will bear fruit, but at least some of its brand-new products will eventually make it to the market. These factors highlight why AbbVie's business remains strong and why, despite the Humira problem, its dividend is safe. As a bonus, investors can get the company's shares right now while they trade at a forward price-to-earnings ratio of 13.8, compared to an average of 15.5 for the pharmaceutical industry.
That makes AbbVie an excellent buy for income 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. | It's difficult to predict how things will unfold in the next six months, but investors interested in dividend-paying stocks should consider scooping up shares of AbbVie at current levels, whether or not it performs well in the short run. Third, AbbVie should successfully add more products to its vast portfolio, with dozens of ongoing programs spanning several therapeutic areas, from oncology to immunology, eye care, neuroscience, etc. Pharma giant AbbVie (NYSE: ABBV) performed poorly in the first part of the year, especially after it reported its first-quarter results. | In the second quarter, AbbVie's net revenue came in at $13.9 billion, dropping 5% year over year. Still, considering it is losing its main cash cow since its 2013 split from Abbott Laboratories, AbbVie's financial results aren't that bad. Pharma giant AbbVie (NYSE: ABBV) performed poorly in the first part of the year, especially after it reported its first-quarter results. | Revenue is declining, but that won't last forever The loss of Humira's patent exclusivity is leaving a gaping hole in AbbVie's business. Digging deeper, Humira's sales dropped by about 25%, but Skyrizi and Rinvoq -- AbbVie's two other immunology stars -- picked up much of the slack, growing revenue by 50% and 55% year over year, respectively. You can rest easy: The dividend is safe AbbVie has consistently raised its dividends over the past 10 years. | Pharma giant AbbVie (NYSE: ABBV) performed poorly in the first part of the year, especially after it reported its first-quarter results. However, AbbVie has performed much better over the past three weeks, although its shares remain in the red for the year. Will AbbVie's rebound continue? |
22271.0 | 2023-08-17 00:00:00 UTC | European Commission Approves AbbVie's AQUIPTA For Preventive Treatment Of Migraine In Adults | ABBV | https://www.nasdaq.com/articles/european-commission-approves-abbvies-aquipta-for-preventive-treatment-of-migraine-in | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) on Thursday said the European Commission has approved its AQUIPTA (atogepant) for the preventive treatment of migraine in adults who have four or more migraine days per month.
The approval is based on two Phase 3 studies dubbed PROGRESS and ADVANCE, which evaluated AQUIPTA in adult patients with chronic migraine and episodic migraine, respectively. The company said that both studies met primary endpoint of statistically significant reduction in mean monthly migraine days (MMDs), compared to placebo across the 12-week treatment period.
Under the brand name QULIPTA, Atogepant is approved in the United States for both chronic and episodic migraine and in Canada for episodic migraine.
Chronic migraine is characterized by headache on at least 15 days per month, eight of these with migraine symptoms. Episodic migraine refers to headaches that occur in less than 15 days per month.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) on Thursday said the European Commission has approved its AQUIPTA (atogepant) for the preventive treatment of migraine in adults who have four or more migraine days per month. The company said that both studies met primary endpoint of statistically significant reduction in mean monthly migraine days (MMDs), compared to placebo across the 12-week treatment period. Episodic migraine refers to headaches that occur in less than 15 days per month. | (RTTNews) - AbbVie Inc. (ABBV) on Thursday said the European Commission has approved its AQUIPTA (atogepant) for the preventive treatment of migraine in adults who have four or more migraine days per month. The approval is based on two Phase 3 studies dubbed PROGRESS and ADVANCE, which evaluated AQUIPTA in adult patients with chronic migraine and episodic migraine, respectively. The company said that both studies met primary endpoint of statistically significant reduction in mean monthly migraine days (MMDs), compared to placebo across the 12-week treatment period. | (RTTNews) - AbbVie Inc. (ABBV) on Thursday said the European Commission has approved its AQUIPTA (atogepant) for the preventive treatment of migraine in adults who have four or more migraine days per month. The approval is based on two Phase 3 studies dubbed PROGRESS and ADVANCE, which evaluated AQUIPTA in adult patients with chronic migraine and episodic migraine, respectively. Under the brand name QULIPTA, Atogepant is approved in the United States for both chronic and episodic migraine and in Canada for episodic migraine. | (RTTNews) - AbbVie Inc. (ABBV) on Thursday said the European Commission has approved its AQUIPTA (atogepant) for the preventive treatment of migraine in adults who have four or more migraine days per month. The approval is based on two Phase 3 studies dubbed PROGRESS and ADVANCE, which evaluated AQUIPTA in adult patients with chronic migraine and episodic migraine, respectively. The company said that both studies met primary endpoint of statistically significant reduction in mean monthly migraine days (MMDs), compared to placebo across the 12-week treatment period. |
22272.0 | 2023-08-16 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-5 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22273.0 | 2023-08-15 00:00:00 UTC | 3 Dividend Aristocrats Positively Surprising Investors | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-positively-surprising-investors | nan | nan | Income investors love to target Dividend Aristocrats, S&P 500 companies that have increased dividend payouts for at least 25 consecutive years.
And it’s easy to see why they’re so beloved, as their consistency and reliability are impossible to ignore.
Interestingly enough, several members of the club – PepsiCo PEP, AbbVie ABBV, and Emerson Electric EMR – have recently posted better-than-expected results, reflecting their successful operations.
For those interested in reaping a passive income stream, let’s take a closer look at each.
PepsiCo
Consumer staples titan PepsiCo beat the Zacks Consensus EPS estimate by 7% and reported revenue 3% ahead of expectations thanks to strong consumer demand and continued business momentum. Earnings improved 13% year-over-year, whereas revenue climbed 10% from the year-ago period.
As shown below, the company’s revenue has remained steady.
Image Source: Zacks Investment Research
Undoubtedly a major positive, PepsiCo lifted its FY23 guidance following the better-than-expected results, now expecting to deliver 10% organic revenue growth (previously 8%) and 12% core EPS growth (previously 9%).
In addition, PEP expects $7.7 billion of cash returns to shareholders throughout FY23, $6.7 billion of which will go to dividend payouts. As shown below, the company’s shareholder-friendly nature is hard to ignore.
PEP shares currently yield 2.8% annually, above the Zacks Consumer Staples sector average.
Image Source: Zacks Investment Research
AbbVie
AbbVie posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 4% and delivering revenue results modestly ahead of the consensus. Both earnings and revenue declined from the year-ago period but exceeded ABBV’s expectations.
The market reacted strongly to the results, with ABBV shares seeing buying pressure post-earnings. This is illustrated by the arrow circled in the chart below.
Image Source: Zacks Investment Research
The company’s shares currently yield a sizable 4%, more than double that of the Zacks Medical sector average. Impressively, the company sports a 10% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
It’s worth noting that ABBV’s growth is forecasted to slow, with the $11.00 per share Zacks Consensus Estimate for its current fiscal year reflecting a 20% pullback on 8% lower revenues.
Emerson Electric
Emerson Electric beat the Zacks Consensus Estimate by nearly 19% and reported earnings of $1.29 per share, down modestly from the year-ago period. The company generated $3.9 billion in revenue, ahead of expectations and well lower than year-ago sales of $5.0 billion.
Impressively, EMR raised its FY23 guidance following the results, expecting net sales growth of 10.5% and free cash flow in a bracket of $2.2 – $2.3 billion. Like ABBV, the market had a strong reaction to the release, with EMR shares seeing bullish activity post-earnings.
Image Source: Zacks Investment Research
Following the release, analysts have raised their earnings expectations across several timeframes.
Image Source: Zacks Investment Research
Presently, EMR shares yield 2.2% annually, nicely above the Zacks Industrial Products sector average of 1.5%. The company sports a modest 1.5% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
The bulk of the Q2 season is in the rearview mirror, with the market eluding the earnings meltdown many had feared.
And for those with a preference for income, all three Dividend Aristocrats above – PepsiCo PEP, AbbVie ABBV, and Emerson Electric EMR – posted better-than-expected results during the period.
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. | Interestingly enough, several members of the club – PepsiCo PEP, AbbVie ABBV, and Emerson Electric EMR – have recently posted better-than-expected results, reflecting their successful operations. Image Source: Zacks Investment Research AbbVie AbbVie posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 4% and delivering revenue results modestly ahead of the consensus. Both earnings and revenue declined from the year-ago period but exceeded ABBV’s expectations. | Interestingly enough, several members of the club – PepsiCo PEP, AbbVie ABBV, and Emerson Electric EMR – have recently posted better-than-expected results, reflecting their successful operations. Image Source: Zacks Investment Research AbbVie AbbVie posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 4% and delivering revenue results modestly ahead of the consensus. Click to get this free report Emerson Electric Co. (EMR) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research AbbVie AbbVie posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 4% and delivering revenue results modestly ahead of the consensus. Image Source: Zacks Investment Research It’s worth noting that ABBV’s growth is forecasted to slow, with the $11.00 per share Zacks Consensus Estimate for its current fiscal year reflecting a 20% pullback on 8% lower revenues. Click to get this free report Emerson Electric Co. (EMR) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research AbbVie AbbVie posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 4% and delivering revenue results modestly ahead of the consensus. Interestingly enough, several members of the club – PepsiCo PEP, AbbVie ABBV, and Emerson Electric EMR – have recently posted better-than-expected results, reflecting their successful operations. Both earnings and revenue declined from the year-ago period but exceeded ABBV’s expectations. |
22274.0 | 2023-08-15 00:00:00 UTC | Notable Tuesday Option Activity: ADM, DIS, ABBV | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-adm-dis-abbv | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Archer Daniels Midland Co. (Symbol: ADM), where a total of 17,084 contracts have traded so far, representing approximately 1.7 million underlying shares. That amounts to about 62.5% of ADM's average daily trading volume over the past month of 2.7 million shares. Especially high volume was seen for the $82.50 strike call option expiring August 18, 2023, with 6,211 contracts trading so far today, representing approximately 621,100 underlying shares of ADM. Below is a chart showing ADM's trailing twelve month trading history, with the $82.50 strike highlighted in orange:
Walt Disney Co. (Symbol: DIS) options are showing a volume of 111,560 contracts thus far today. That number of contracts represents approximately 11.2 million underlying shares, working out to a sizeable 59.2% of DIS's average daily trading volume over the past month, of 18.8 million shares. Particularly high volume was seen for the $90 strike call option expiring August 18, 2023, with 12,012 contracts trading so far today, representing approximately 1.2 million underlying shares of DIS. Below is a chart showing DIS's trailing twelve month trading history, with the $90 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,862 contracts, representing approximately 3.1 million underlying shares or approximately 57.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $120 strike put option expiring August 18, 2023, with 5,668 contracts trading so far today, representing approximately 566,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for ADM options, DIS options, or ABBV options, 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. | Particularly high volume was seen for the $120 strike put option expiring August 18, 2023, with 5,668 contracts trading so far today, representing approximately 566,800 underlying shares of ABBV. Below is a chart showing DIS's trailing twelve month trading history, with the $90 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,862 contracts, representing approximately 3.1 million underlying shares or approximately 57.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for ADM options, DIS options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing DIS's trailing twelve month trading history, with the $90 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,862 contracts, representing approximately 3.1 million underlying shares or approximately 57.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $120 strike put option expiring August 18, 2023, with 5,668 contracts trading so far today, representing approximately 566,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for ADM options, DIS options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing DIS's trailing twelve month trading history, with the $90 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,862 contracts, representing approximately 3.1 million underlying shares or approximately 57.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $120 strike put option expiring August 18, 2023, with 5,668 contracts trading so far today, representing approximately 566,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for ADM options, DIS options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing DIS's trailing twelve month trading history, with the $90 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,862 contracts, representing approximately 3.1 million underlying shares or approximately 57.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $120 strike put option expiring August 18, 2023, with 5,668 contracts trading so far today, representing approximately 566,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for ADM options, DIS options, or ABBV options, visit StockOptionsChannel.com. |
22275.0 | 2023-08-15 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-8 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 74 most recent 13F filings for the 06/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 39 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Vident Investment Advisory LLC Existing +15,369 -$2,292
Westover Capital Advisors LLC Existing -18 -$235
CI Investments Inc. Existing +10,913 -$1,745
Monetary Management Group Inc. Existing -5,725 -$2,004
The Manufacturers Life Insurance Company Existing -82,659 -$65,188
The Manufacturers Life Insurance Company Existing -82,659 -$65,188
Invesco Ltd. Existing -1,470,727 -$397,618
Blackhill Capital Inc. Existing -2,400 -$6,810
Wellspring Financial Advisors LLC Existing +198 -$44
Capital Analysts LLC Existing -108 -$136
Cyrus J. Lawrence LLC Existing -10 -$31
The Manufacturers Life Insurance Company Existing -82,659 -$65,188
Oak Associates Ltd. OH Existing UNCH -$365
Hemenway Trust Co LLC Existing -117 -$795
BSW Wealth Partners Existing -690 -$337
The Manufacturers Life Insurance Company Existing -82,659 -$65,188
State Board of Administration of Florida Retirement System Existing -30,645 -$51,626
Krane Funds Advisors LLC Existing +1,469 +$105
The Manufacturers Life Insurance Company Existing -82,659 -$65,188
Landscape Capital Management L.L.C. NEW +4,374 +$589
Brandywine Global Investment Management LLC Existing -135,373 -$45,632
Hsbc Holdings PLC Existing +803,764 +$37,374
Masso Torrence Wealth Management Inc. Existing -558 -$425
Beacon Harbor Wealth Advisors Inc. Existing +807 -$764
Stableford Capital II LLC NEW +6,157 +$932
OLD Point Trust & Financial Services N A Existing UNCH -$47
Huntington National Bank Existing -42,001 -$21,019
Shakespeare Wealth Management Inc. Existing +6 -$44
Clearbridge Investments LLC Existing +134,425 -$65,214
Inceptionr LLC Existing -1,675 -$471
O Shaughnessy Asset Management LLC Existing -36,127 -$8,267
Financial Engines Advisors L.L.C. Existing -4,767 -$3,006
V Wealth Advisors LLC Existing -907 -$503
Franklin Resources Inc. Existing -961,754 -$328,741
Schroder Investment Management Group Existing +41,628 -$29,590
Miramar Capital LLC Existing -1,006 -$2,952
TradeLink Capital LLC NEW +1,600 +$216
Delta Capital Management LLC Existing -220 -$292
Trexquant Investment LP NEW +177,439 +$23,906
Aggregate Change: -1,909,974 -$1,233,823
In terms of shares owned, we count 9 of the above funds having increased existing ABBV positions from 03/31/2023 to 06/30/2023, with 24 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 06/30/2023 reporting period (out of the 4,225 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 03/31/2023 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 3,903,147 shares in the aggregate, from 259,594,801 up to 263,497,948 for a share count increase of approximately 1.50%. The overall top three funds holding ABBV on 06/30/2023 were:
» FUND SHARES OF ABBV HELD
1. Charles Schwab Investment Management Inc. 22,797,052
2. Bank of New York Mellon Corp 20,003,255
3. Dimensional Fund Advisors LP 7,732,933
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).
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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 74 most recent 13F filings for the 06/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 39 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 -961,754 -$328,741 Schroder Investment Management Group Existing +41,628 -$29,590 Miramar Capital LLC Existing -1,006 -$2,952 TradeLink Capital LLC NEW +1,600 +$216 Delta Capital Management LLC Existing -220 -$292 Trexquant Investment LP NEW +177,439 +$23,906 Aggregate Change: -1,909,974 -$1,233,823 In terms of shares owned, we count 9 of the above funds having increased existing ABBV positions from 03/31/2023 to 06/30/2023, with 24 having decreased their positions and 4 new positions. At Holdings Channel, we have reviewed the latest batch of the 74 most recent 13F filings for the 06/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 39 of these funds. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | Existing -961,754 -$328,741 Schroder Investment Management Group Existing +41,628 -$29,590 Miramar Capital LLC Existing -1,006 -$2,952 TradeLink Capital LLC NEW +1,600 +$216 Delta Capital Management LLC Existing -220 -$292 Trexquant Investment LP NEW +177,439 +$23,906 Aggregate Change: -1,909,974 -$1,233,823 In terms of shares owned, we count 9 of the above funds having increased existing ABBV positions from 03/31/2023 to 06/30/2023, with 24 having decreased their positions and 4 new positions. At Holdings Channel, we have reviewed the latest batch of the 74 most recent 13F filings for the 06/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 39 of these funds. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | Existing -961,754 -$328,741 Schroder Investment Management Group Existing +41,628 -$29,590 Miramar Capital LLC Existing -1,006 -$2,952 TradeLink Capital LLC NEW +1,600 +$216 Delta Capital Management LLC Existing -220 -$292 Trexquant Investment LP NEW +177,439 +$23,906 Aggregate Change: -1,909,974 -$1,233,823 In terms of shares owned, we count 9 of the above funds having increased existing ABBV positions from 03/31/2023 to 06/30/2023, with 24 having decreased their positions and 4 new positions. Dimensional Fund Advisors LP 7,732,933 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 74 most recent 13F filings for the 06/30/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 39 of these funds. |
22276.0 | 2023-08-14 00:00:00 UTC | Validea's Top Health Care Stocks Based On Martin Zweig - 8/14/2023 | ABBV | https://www.nasdaq.com/articles/valideas-top-health-care-stocks-based-on-martin-zweig-8-14-2023 | nan | nan | The following are the top rated Health Care stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
UNITEDHEALTH GROUP INC (UNH) is a large-cap growth stock in the Insurance (Accident & Health) industry. The rating according to our strategy based on Martin Zweig 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.
Company Description: UnitedHealth Group Incorporated is a diversified health care company that operates Optum and UnitedHealthcare platforms. Its segments include Optum Health, Optum Insight, Optum Rx and UnitedHealthcare. Optum Health segment is focused on care delivery, care management, wellness and consumer engagement, and health financial services. Optum Insight segment serves the needs of hospital systems, physicians, health plans, governments and life sciences companies. Optum Rx segment offers pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, purchasing and clinical capabilities, and develops programs in areas such as step therapy, formulary management, drug adherence and disease/drug therapy management. UnitedHealthcare includes the combined results of operations of UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State and UnitedHealthcare Global.
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.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of UNITEDHEALTH GROUP INC
UNH Guru Analysis
UNH Fundamental Analysis
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 69% 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.
Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. The Company is engaged in the research and development, manufacturing, commercialization and sale of medicines and therapies. It offers products in various therapeutic categories, including immunology products, which include Humira, Skyrizi and Rinvoq; oncology products, which include Imbruvica and Venclexta/Venclyxto; aesthetics products that include Botox Cosmetic, The Juvederm Collection of Fillers and others; neuroscience products, such as Botox Therapeutic, Vraylar, Duopa and Duodopa, and Ubrelvy; eye care products, which consists of Lumigan/Ganfort, Alphagan/Combigan and Restasis, and other key products, which include Mavyret/Maviret, Creon, Lupron, Linzess/Constella and Synthroid. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses.
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.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
CIGNA GROUP (CI) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Martin Zweig is 69% 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.
Company Description: The Cigna Group is a global health services company. The Company's portfolio of offerings solves diverse challenges across the healthcare system. The Company offers a differentiated set of pharmacy, medical, behavioral, dental and supplemental products, and services, primarily through two platforms: Evernorth Health Services and Cigna Healthcare. Evernorth Health Services includes a range of coordinated and point solution health services and capabilities, as well as those from partners across the health care system, in pharmacy benefits, home delivery pharmacy, specialty pharmacy, distribution, and care delivery and management solutions, which are provided to health plans, employers, government organizations and health care providers. Cigna Healthcare includes the United States Commercial, United States Government, and International Health operating segments, which provide medical and coordinated solutions to clients and customers.
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.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of CIGNA GROUP
CI Guru Analysis
CI Fundamental Analysis
VERTEX PHARMACEUTICALS INCORPORATED (VRTX) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 62% 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.
Company Description: Vertex Pharmaceuticals Incorporated is a global biotechnology company. The Company is focused on developing medicines that treat the underlying cause of cystic fibrosis (CF). Its pipeline includes mid- and late-stage clinical programs in sickle cell disease, beta thalassemia, acute and neuropathic pain, APOL1-mediated kidney disease, type 1 diabetes, and alpha-1 antitrypsin deficiency, and earlier-stage programs in diseases such as muscular dystrophies. Its marketed medicines are TRIKAFTA/KAFTRIO (elexacaftor/tezacaftor/ivacaftor and ivacaftor), SYMDEKO/SYMKEVI (tezacaftor/ivacaftor and ivacaftor), ORKAMBI (lumacaftor/ivacaftor) and KALYDECO (ivacaftor). The Company has a pipeline of investigational small molecule, cell and genetic therapies in other serious diseases where it has deep insight into causal human biology, including sickle cell disease, beta thalassemia, APOL1-mediated kidney disease, pain, type 1 diabetes, alpha-1 antitrypsin deficiency and Duchenne muscular dystrophy.
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.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of VERTEX PHARMACEUTICALS INCORPORATED
VRTX Guru Analysis
VRTX Fundamental Analysis
ELI LILLY AND CO (LLY) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 62% 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.
Company Description: Eli Lilly and Company is engaged in drug manufacturing businesses. It discovers, develops, manufactures, and markets products in the human pharmaceutical products segment. Its diabetes products include Basaglar, Humalog, Humulin, Jardiance, Mounjaro, and Trulicity. Its oncology products consist of Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, and others. Its immunology products include Olumiant, Taltz, oral IL-17 inhibitors and others. Its neuroscience products include Cymbalta, Emgality, and Zyprexa. Its other therapies consist of Bamlanivimab and etesevimab, Bebtelovimab and Forteo. It maintains special business groups for service wholesalers, pharmacy benefit managers, managed care organizations, group purchasing organizations, government and long-term care institutions, hospitals, and certain retail pharmacies. It manufactures and distributes its products through facilities in the United States, including Puerto Rico, and other countries. Its products are sold in over 110 countries.
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.
P/E RATIO: FAIL
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ELI LILLY AND CO
LLY Guru Analysis
LLY Fundamental Analysis
Martin Zweig Portfolio
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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. | Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. Detailed Analysis of UNITEDHEALTH GROUP INC UNH Guru Analysis UNH Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. | Detailed Analysis of UNITEDHEALTH GROUP INC UNH Guru Analysis UNH Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. | Detailed Analysis of UNITEDHEALTH GROUP INC UNH Guru Analysis UNH Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. | Detailed Analysis of UNITEDHEALTH GROUP INC UNH Guru Analysis UNH Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a diversified research-based biopharmaceutical company. Its products are sold to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from the AbbVie-owned distribution centers and public warehouses. |
22277.0 | 2023-08-14 00:00:00 UTC | Revance's Botox rival gets FDA approval for painful neck muscle condition | ABBV | https://www.nasdaq.com/articles/revances-botox-rival-gets-fda-approval-for-painful-neck-muscle-condition | nan | nan | By Leroy Leo
Aug 14 (Reuters) - The U.S. health regulator has approved expanding the use of Revance Therapeutics' Daxxify RVNC.O to treat a painful neck muscle condition, intensifying the anti-wrinkle injection's rivalry with AbbVie's ABBV.N Botox.
The approval by the Food and Drug Administration helps Revance enter the $2.5 billion U.S. market for therapeutic neuromodulator, a method that directly acts on nerves, the company said on Monday.
Cervical dystonia accounts for about $345 million of that market. The painful condition involves involuntary contraction of neck muscles and causes the head to twist to one side.
Revance will move into a preview phase with some doctors and key opinion leaders (KOLs) initially after the approval, company executives told Reuters before the decision.
"We'll use that group as our faculty to then train that broader launch group which will be in 2024," President Dustin Sjuts said.
Revance said it would share more information on the pricing when the product is launched commercially.
The company has been trying to attract clients to Daxxify from its more popular rival with its "Break Up with Botox" marketing campaign.
The newer anti-wrinkle injection recorded $22.6 million in sales in the second quarter. The California-based company is counting on Daxxify's longer treatment duration to attract more doctors and patients from Botox.
Most cervical dystonia patients saw the treatment effect last about 20 weeks and 24 weeks when using different dosages of Daxxify, a late-stage study showed, compared with three months for Botox, as per FDA data.
This was similar for Daxxify when it had secured U.S. approval as an anti-wrinkle injection last year.
(Reporting by Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Leroy Leo Aug 14 (Reuters) - The U.S. health regulator has approved expanding the use of Revance Therapeutics' Daxxify RVNC.O to treat a painful neck muscle condition, intensifying the anti-wrinkle injection's rivalry with AbbVie's ABBV.N Botox. The approval by the Food and Drug Administration helps Revance enter the $2.5 billion U.S. market for therapeutic neuromodulator, a method that directly acts on nerves, the company said on Monday. Revance will move into a preview phase with some doctors and key opinion leaders (KOLs) initially after the approval, company executives told Reuters before the decision. | By Leroy Leo Aug 14 (Reuters) - The U.S. health regulator has approved expanding the use of Revance Therapeutics' Daxxify RVNC.O to treat a painful neck muscle condition, intensifying the anti-wrinkle injection's rivalry with AbbVie's ABBV.N Botox. The California-based company is counting on Daxxify's longer treatment duration to attract more doctors and patients from Botox. Most cervical dystonia patients saw the treatment effect last about 20 weeks and 24 weeks when using different dosages of Daxxify, a late-stage study showed, compared with three months for Botox, as per FDA data. | By Leroy Leo Aug 14 (Reuters) - The U.S. health regulator has approved expanding the use of Revance Therapeutics' Daxxify RVNC.O to treat a painful neck muscle condition, intensifying the anti-wrinkle injection's rivalry with AbbVie's ABBV.N Botox. The approval by the Food and Drug Administration helps Revance enter the $2.5 billion U.S. market for therapeutic neuromodulator, a method that directly acts on nerves, the company said on Monday. Most cervical dystonia patients saw the treatment effect last about 20 weeks and 24 weeks when using different dosages of Daxxify, a late-stage study showed, compared with three months for Botox, as per FDA data. | By Leroy Leo Aug 14 (Reuters) - The U.S. health regulator has approved expanding the use of Revance Therapeutics' Daxxify RVNC.O to treat a painful neck muscle condition, intensifying the anti-wrinkle injection's rivalry with AbbVie's ABBV.N Botox. The approval by the Food and Drug Administration helps Revance enter the $2.5 billion U.S. market for therapeutic neuromodulator, a method that directly acts on nerves, the company said on Monday. The California-based company is counting on Daxxify's longer treatment duration to attract more doctors and patients from Botox. |
22278.0 | 2023-08-14 00:00:00 UTC | My Top Dividend King to Buy and Hold for the Next 10 Years, and It Isn't Even Close | ABBV | https://www.nasdaq.com/articles/my-top-dividend-king-to-buy-and-hold-for-the-next-10-years-and-it-isnt-even-close | nan | nan | Track records are important. That's true whether we're talking about sports teams, political candidates, surgeons, or dividend stocks.
The dividend stocks with the best track records of all are the group known as the Dividend Kings. These stocks have delivered at least 50 consecutive years of dividend increases.
But even within this elite club, some dividend stocks stand out above others. I think that there's one that's especially attractive right now. Here's my top Dividend King to buy and hold for the next 10 years (and it isn't even close).
The magnificent seven
I view AbbVie (NYSE: ABBV) as the king of the Dividend Kings. The drugmaker has increased its dividend for 51 consecutive years, including the time when it was part of Abbott Labs.
Yes, there are lots of other Dividend Kings with longer streaks of dividend hikes. However, one key thing that sets AbbVie apart from most of the pack is that it has increased its dividend by a jaw-dropping 270% over the last 10 years. Only one Dividend King has beaten that performance: Nordson grew its dividend by nearly 278% during the same period.
However, Nordson's dividend yield is a paltry 1.1%. That leads me to the next reason why AbbVie looks so great. Its dividend yield stands at nearly 3.9%. This yield puts AbbVie in what I call "the magnificent seven" -- the seven Dividend Kings with the highest yields.
STOCK DIVIDEND YIELD
Altria (NYSE: MO) 8.59%
Universal Corp. (NYSE: UVV) 6.74%
Leggett & Platt (NYSE: LEG) 6.29%
3M (NYSE: MMM) 5.78%
Northwest Natural Holding (NYSE: NWN) 4.72%
Federal Realty Investment Trust (NYSE: FRT) 4.24%
AbbVie 3.88%
Data source: Google Finance.
Process of elimination
The other six members of the magnificent seven offer higher yields than AbbVie. So why do I still think AbbVie is the best Dividend King? For one thing, none of those other stocks come close to matching AbbVie's huge dividend growth. However, there's more to my process of elimination to highlight AbbVie's other advantages.
Valuation is a paramount concern, in my view, especially with the S&P 500 looking expensive these days. AbbVie's shares trade at a very reasonable 13.8 times forward earnings, well below the S&P 500's forward price-to-earnings ratio of 19x.
Granted, three other members of the magnificent seven Dividend Kings claim even lower valuations than AbbVie. Altria is the cheapest with its shares trading at only 8.8 times forward earnings. Universal Corp.'s forward P/E ratio is 10.3. 3M stock trades at 12.2 times expected earnings. But I nonetheless like AbbVie better than all three of those stocks.
I ruled out Altria and Universal because they sell addictive products that cause major health problems. Some investors don't have any qualms about buying tobacco stocks, but I do after seeing people I know die too soon from cancer caused by smoking cigarettes. Aside from that, I also think that Altria's and Universal's cheap valuations are warranted because of their low growth prospects.
What about 3M? My main concern is that the company faces a boatload of lawsuits related to the manufacture of allegedly defective earplugs used by the U.S. military. Largely as a result of this litigation, 3M stock has performed dismally in recent years while AbbVie has delivered solid gains.
AbbVie for the win
Some might think I'm failing to factor in AbbVie's own challenges. The company's revenue and earnings are falling because its top-selling drug, Humira, now faces biosimilar competition in the U.S.
However, I'm confident that AbbVie will be able to bounce back in the not-too-distant future. It already has two successors to Humira on the market (Rinvoq and Skyrizi) that should generate greater peak sales together than Humira did. In addition, AbbVie has other products that are driving growth as well as a pipeline that doesn't get enough respect, in my opinion.
There are plenty of great Dividend Kings. But for investors looking for a high yield, tremendous dividend growth, an attractive valuation, and solid long-term growth prospects, AbbVie is the top Dividend King to buy and hold over the next 10 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. | Largely as a result of this litigation, 3M stock has performed dismally in recent years while AbbVie has delivered solid gains. The magnificent seven I view AbbVie (NYSE: ABBV) as the king of the Dividend Kings. However, one key thing that sets AbbVie apart from most of the pack is that it has increased its dividend by a jaw-dropping 270% over the last 10 years. | AbbVie's shares trade at a very reasonable 13.8 times forward earnings, well below the S&P 500's forward price-to-earnings ratio of 19x. But for investors looking for a high yield, tremendous dividend growth, an attractive valuation, and solid long-term growth prospects, AbbVie is the top Dividend King to buy and hold over the next 10 years. The magnificent seven I view AbbVie (NYSE: ABBV) as the king of the Dividend Kings. | The magnificent seven I view AbbVie (NYSE: ABBV) as the king of the Dividend Kings. But for investors looking for a high yield, tremendous dividend growth, an attractive valuation, and solid long-term growth prospects, AbbVie is the top Dividend King to buy and hold over the next 10 years. However, one key thing that sets AbbVie apart from most of the pack is that it has increased its dividend by a jaw-dropping 270% over the last 10 years. | The magnificent seven I view AbbVie (NYSE: ABBV) as the king of the Dividend Kings. So why do I still think AbbVie is the best Dividend King? But for investors looking for a high yield, tremendous dividend growth, an attractive valuation, and solid long-term growth prospects, AbbVie is the top Dividend King to buy and hold over the next 10 years. |
22279.0 | 2023-08-14 00:00:00 UTC | Up 45% This Year What's Driving The Growth For Eli Lilly Stock? | ABBV | https://www.nasdaq.com/articles/up-45-this-year-whats-driving-the-growth-for-eli-lilly-stock | nan | nan | Eli Lilly stock (NYSE: LLY) has seen about a 45% rise this year, significantly outperforming the broader S&P500 index, up 16%. Even if we look at the longer term, LLY stock, with a stellar 200% return from levels seen in late 2020, has outperformed the S&P 500 index, up nearly 20%. The stock has been on a strong run for the last few years, primarily due to its pipeline potential. However, from a valuation perspective, at the current price of about $525, LLY stock looks expensive, as discussed below.
This 3x rise for LLY stock since late 2020 can primarily be attributed to 1. a 170% rise in the company’s P/S ratio to 16.9x revenues currently, compared to 6.2x in 2020, 2. a 20% rise in Eli Lilly’s revenue to $30 billion over the last twelve months, compared to $25 billion in 2020, slightly offset by 3. a 5% rise in its total shares outstanding to 949 million. This has meant that Eli Lilly’s revenue per share rose 15% to $31.09 over the last twelve months, vs. $27.03 in 2020. Our dashboard on Why Eli Lilly Stock Moved has more details.
Eli Lilly’s revenue growth over the recent years has been driven by market share gains for some of its drugs, such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. But it’s not the revenue growth in recent years that has kept the stock buzzing. Last year, the company secured U.S. FDA approval for its diabetes/obesity drug – Mounjaro (Tirzepatide) – which, per some analysts, could garner over $40 billion in peak sales, and the figure would be over $65 billion, if we include the company’s other obesity drugs.
Mounjaro targets two obesity-related hormones – GLP-1 and GIP. The company is also developing – Retatrutide – which targets three obesity-related hormones, including glucagon. However, Eli Lilly is not the only one developing obesity drugs. Nova Nordisk was the first to launch weight loss treatments – Wegovy and Ozempic, and Pfizer is also working on a similar drug that targets obesity-related hormones. Pfizer estimates the total peak market opportunity for the obesity drug class at $100 billion annually.
Earlier this week, Eli Lilly reported its Q2 results, with Mounjaro garnering $1 billion in quarterly sales, compared to the $482 million it garnered in full-year 2022. The strong surge in Mounjaro sales lifted investor sentiment, sending LLY stock to its lifetime highs. One of the Wall Street analysts upgraded the potential peak sales target for Mounjaro to a whopping $68.7 billion. Mounjaro is all set to become the world’s biggest drug in history. Together, the current behemoths – Merck’s Keytruda and AbbVie’s Humira – garnered $42 billion in 2022 sales. Investors are optimistic about Eli Lilly’s future, with Mounjaro disrupting the obesity drugs market. Beyond the obesity drugs, Eli Lilly has more potential blockbuster drugs in its pipeline. For example, the company expects the U.S. FDA decision for its Alzheimer’s treatment – Donanemab – later this year. If approved, the drug could garner $5 billion in peak sales.
Looking at valuation, at its current levels of $525, LLY stock trades at 17x trailing revenues and 13x its 2024 revenues of $40 per share ($38 billion total sales). This compares with its last three-year average of 9x, implying that the stock is expensive compared to its historical average. It also trades at a much higher valuation compared to its peers. Merck, AbbVie, and J&J trade at 4.7x revenues, Pfizer at 2.2x, and Bristol Myers Squibb at 2.8x.
There is no denying that Eli Lilly is about to see a strong revenue and earnings growth phase in the coming years, but its stock price action has meant that the positives are already priced in, in our view.
What if you’re looking for a portfolio that aims for long-term growth? Here’s a value portfolio that’s done much better than the market since 2016.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
LLY Return 16% 44% 615%
S&P 500 Return -3% 16% 100%
Trefis Multi-Strategy Portfolio -5% 22% 293%
[1] Month-to-date and year-to-date as of 8/10/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating 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. | Together, the current behemoths – Merck’s Keytruda and AbbVie’s Humira – garnered $42 billion in 2022 sales. Merck, AbbVie, and J&J trade at 4.7x revenues, Pfizer at 2.2x, and Bristol Myers Squibb at 2.8x. Eli Lilly’s revenue growth over the recent years has been driven by market share gains for some of its drugs, such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. | Together, the current behemoths – Merck’s Keytruda and AbbVie’s Humira – garnered $42 billion in 2022 sales. Merck, AbbVie, and J&J trade at 4.7x revenues, Pfizer at 2.2x, and Bristol Myers Squibb at 2.8x. This 3x rise for LLY stock since late 2020 can primarily be attributed to 1. a 170% rise in the company’s P/S ratio to 16.9x revenues currently, compared to 6.2x in 2020, 2. a 20% rise in Eli Lilly’s revenue to $30 billion over the last twelve months, compared to $25 billion in 2020, slightly offset by 3. a 5% rise in its total shares outstanding to 949 million. | Together, the current behemoths – Merck’s Keytruda and AbbVie’s Humira – garnered $42 billion in 2022 sales. Merck, AbbVie, and J&J trade at 4.7x revenues, Pfizer at 2.2x, and Bristol Myers Squibb at 2.8x. This 3x rise for LLY stock since late 2020 can primarily be attributed to 1. a 170% rise in the company’s P/S ratio to 16.9x revenues currently, compared to 6.2x in 2020, 2. a 20% rise in Eli Lilly’s revenue to $30 billion over the last twelve months, compared to $25 billion in 2020, slightly offset by 3. a 5% rise in its total shares outstanding to 949 million. | Together, the current behemoths – Merck’s Keytruda and AbbVie’s Humira – garnered $42 billion in 2022 sales. Merck, AbbVie, and J&J trade at 4.7x revenues, Pfizer at 2.2x, and Bristol Myers Squibb at 2.8x. Last year, the company secured U.S. FDA approval for its diabetes/obesity drug – Mounjaro (Tirzepatide) – which, per some analysts, could garner over $40 billion in peak sales, and the figure would be over $65 billion, if we include the company’s other obesity drugs. |
22280.0 | 2023-08-13 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-46 | 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. |
22281.0 | 2023-08-12 00:00:00 UTC | 3 Unstoppable Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-unstoppable-dividend-stocks-to-buy-right-now | nan | nan | Income investors won't be happy with dividends that aren't sustainable. Instead, they want to own dividend stocks that they can depend on.
Three Motley Fool contributors identified stocks that should make income investors happy. Here's why they think AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Novartis (NYSE: NVS) are unstoppable dividend stocks to buy right now.
More unstoppable than you might think
Keith Speights (AbbVie): At first glance, AbbVie could appear to be quite stoppable. Sales of its top-selling drug Humira are tanking in the face of biosimilar competition. The company's revenue and profit are falling as a result. Its stock is down year to date while the overall market has soared.
However, AbbVie is more unstoppable than you might think. The pharma giant planned well for the day when Humira's sales would begin to sink. It invested heavily in research and development. The company also made smart acquisitions.
It's not surprising that AbbVie would feel the pain when Humira, the former best-selling drug in the world, lost patent exclusivity. But that pain shouldn't last very long.
Sales for the company's two successors to Humira, Rinvoq and Skyrizi, continue to soar. AbbVie Vice Chairman and President Rob Michael said in the second-quarter conference call that the two drugs should "deliver robust growth into the next decade and significantly exceed Humira peak revenue." The company has several other growth drivers as well, notably including antipsychotic drug Vraylar and its migraine drugs Qulipta and Ubrelvy.
Then there's the dividend. AbbVie has increased its dividend annually for 51 consecutive years (40 of those years were as a subsidiary of Abbott Laboratories). Its dividend yield stands at 3.9%. The drugmaker remains in a strong position to continue raising its dividend payouts in the future.
It will take a lot to stomp this pharma giant
Prosper Junior Bakiny (Johnson & Johnson): Is any company truly unstoppable? After all, every business faces challenges and risks, so there is always the chance, however remote, that things will go wrong. Still, some corporations are about as unstoppable as possible, and drugmaker Johnson & Johnson fits the bill.
For 61 straight years, the company has increased its dividend payout. That makes it a Dividend King, a status it has worked hard to achieve and is unlikely to put in jeopardy anytime soon.
Investors tend to be more interested in the future potential of a company than in its past performance, and there are good reasons to be optimistic about Johnson & Johnson's prospects. Consider the company's vast portfolio of medicines and medical devices. Many of them help address serious, sometimes even life-threatening, conditions; The company's drugs are especially concentrated within its immunology and oncology segments. Johnson & Johnson's products remain in high demand regardless of economic conditions.
Furthermore, the healthcare giant is constantly innovating, so it should continue delivering decent results. Johnson & Johnson's AAA credit rating also shows how robust the company's balance sheet is. Risks? Yes, Johnson & Johnson does face some, notably those related to its legal troubles. Thousands of lawsuits allege that Johnson & Johnson's talc products gave customers cancer.
But even that shouldn't stop Johnson & Johnson. The company is working to resolve the issues in a way that keeps the business operating and growing. Investors can safely count on this company to continue producing solid revenue, earnings, dividend growth, and steady stock market returns for a long time.
Novartis pays a high yield and has excellent growth prospects
David Jagielski (Novartis): Swiss pharmaceutical company Novartis isn't a flashy stock to hold, but it can be a reliable investment to hang on to for the long term. It generates consistent growth, and its dividend yield of 3.4% is more than double the S&P 500 average of 1.5%.
Earlier this year, the company announced that it will raise its dividend for the 26th straight year. Even with the 3.2% increase, Novartis estimates that its payout ratio will be roughly 61% of free cash flow. That's a healthy and sustainable dividend, and it suggests there could be room for even more rate increases in the future.
The drugmaker reported $26.6 billion in revenue through the first six months of the year, representing 8% growth excluding the impact of foreign currency exchanges. Heart drug Entresto has played a key part in the company's growth, with sales of $2.9 billion through the first half of 2023 growing at a rate of 35% year over year at constant currency. During the first two quarters, the company's free cash flow was just under $6 billion, rising by 23% from the same period last year.
Novartis is spinning off its generic and biosimilar business, Sandoz, later this year, which should help it focus more on developing new medicines and strengthening its future growth prospects. By becoming leaner, Novartis' growth rate could improve even further. The company has a large pipeline, with 129 innovative medicines currently in development, 44 of which are in phase 3 trials and seven that in the registration process.
For long-term investors, there's a lot to like about Novartis' business. It has multiple growth opportunities. It offers an incredibly attractive payout. With shares trading at only 15 times estimated future earnings, the stock provides good value and is a great buy for the long haul.
10 stocks we like better than Novartis
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the 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 Abbott Laboratories. 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. | AbbVie Vice Chairman and President Rob Michael said in the second-quarter conference call that the two drugs should "deliver robust growth into the next decade and significantly exceed Humira peak revenue." Here's why they think AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Novartis (NYSE: NVS) are unstoppable dividend stocks to buy right now. More unstoppable than you might think Keith Speights (AbbVie): At first glance, AbbVie could appear to be quite stoppable. | Here's why they think AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Novartis (NYSE: NVS) are unstoppable dividend stocks to buy right now. More unstoppable than you might think Keith Speights (AbbVie): At first glance, AbbVie could appear to be quite stoppable. However, AbbVie is more unstoppable than you might think. | Here's why they think AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Novartis (NYSE: NVS) are unstoppable dividend stocks to buy right now. More unstoppable than you might think Keith Speights (AbbVie): At first glance, AbbVie could appear to be quite stoppable. However, AbbVie is more unstoppable than you might think. | Here's why they think AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Novartis (NYSE: NVS) are unstoppable dividend stocks to buy right now. More unstoppable than you might think Keith Speights (AbbVie): At first glance, AbbVie could appear to be quite stoppable. However, AbbVie is more unstoppable than you might think. |
22282.0 | 2023-08-11 00:00:00 UTC | 5 Best Stocks to Buy in a Bear Market | ABBV | https://www.nasdaq.com/articles/5-best-stocks-to-buy-in-a-bear-market | nan | nan | In the ever-fluctuating stock market landscape, navigating bear markets can be a nerve-wracking experience for even the most seasoned investors. When stock prices plunge and economic clouds gather, it's natural to question whether investing during such turbulent times is wise. Amidst the chaos lies a wealth of hidden opportunities, including the best stocks for bear market investment.
Is it best to buy stocks in a bear market? A bear market can provide a fertile ground for value-seeking individuals, offering stocks that have been unjustly beaten down but hold immense growth potential. Legendary investors like Warren Buffett have built fortunes by capitalizing on these precise moments.
Whether you're a seasoned investor seeking to bolster your position during a downturn or a newcomer eager to capitalize on the best bear market investments, let's explore the untapped potential of bear market stocks and uncover opportunities that can transform uncertainty into financial triumph.
Overview of Bear Market Stocks
In the unpredictable terrain of a bear market, where fear and uncertainty color market sentiment, consider seeking refuge in stocks that have the potential to weather the storm and emerge stronger. The best bear market stocks are often associated with companies that demonstrate resilience, even when the economy faces headwinds. These companies typically provide essential goods and services that remain in demand, irrespective of market conditions. For instance, consumer staples companies like Walmart are known for offering everyday necessities and tend to maintain a stable revenue stream during bearish phases.
Consistent earnings growth is a key characteristic of the best stocks for a bear market. These companies exhibit a track record of generating profits in challenging market environments, showcasing their ability to endure economic hardships. Additionally, companies with solid financial health, characterized by low debt levels and ample cash reserves, are better positioned to navigate financial uncertainties.
Dividend-paying stocks hold significant appeal during a bear market. By providing regular dividend payments, these stocks offer a steady income stream that can help offset losses resulting from declining stock prices. Adopting a defensive and diversified investment approach is paramount to safeguard portfolios during a bear market. Diversification involves spreading investments across various industries and asset classes, reducing exposure to any single investment. Defensive stocks, such as those in the healthcare and utilities sectors, tend to display more stability during economic downturns due to the consistent demand for products and services.
Consider bear market exchange-traded funds (ETFs) as a strategic move during market downturns. These ETFs aim to provide returns inversely related to the overall market or specific sectors, acting as a hedge against market declines and potentially offering gains during bearish phases. Conducting thorough research and due diligence is essential when selecting bear market stocks. Analyzing financial statements, evaluating a company's business model, reading previous earning transcripts and assessing long-term growth prospects can help identify stocks with the potential to outperform during challenging market conditions.
The best bear market stocks exhibit a combination of resilience, strong earnings growth and the potential to provide stable dividends. By adopting a defensive and diversified investment approach, considering bear market ETFs and conducting thorough research, you can confidently navigate bear markets and seize opportunities through economic uncertainty.
Why Invest in Bear Market Stocks?
Investing in bear market stocks presents a unique opportunity to navigate the challenging waters of a bear market while potentially reaping significant rewards. During a bear market characterized by falling stock prices and negative investor sentiment, identifying the biggest bear stocks can lead to opportunities for substantial gains. When seeking the best stocks for a bear market, you should consider companies with strong resilience and fundamentals. These stocks may be the best stocks to buy during bear market conditions as they have the potential to weather the economic storm and emerge stronger.
One way to gain exposure to bear market stocks is through bear ETFs. Bear ETFs perform well in declining markets, providing inverse returns to the overall market. If you want to invest in a bear market, consider allocating a portion of your portfolio to these bear ETFs for added protection. Bear markets also present attractive valuations for high-quality stocks. These discounted prices benefit those seeking the best stocks in bear market conditions. By conducting thorough research and due diligence, you can identify undervalued gems with the potential for long-term growth.
Some investors may adopt a contrarian approach in choosing stocks to buy in bear market, buying when market sentiment is negative. Contrarian investors believe markets tend to overreact to short-term events, providing opportunities to buy stocks at a discount. This strategy may involve buying stocks others sell during a bear market. Dividend-paying stocks can offer stability and income during a bear market. Investing in companies with a history of regular dividend payments can offset some losses incurred during market downturns.
What Makes a Stock a Bear Market Stock?
A bear market stock is a term used to describe a stock with specific characteristics that make it resilient and potentially attractive during market downturns. Knowing what to invest in a bear market cycle is an important skill every investor must develop. When navigating the uncertainties of a bear market, you should seek out the best stocks for a bear market, looking for ones that have demonstrated the ability to outperform or withstand challenging economic conditions. Understanding what makes a stock a bear market stock is crucial to protect your portfolio and capitalize on opportunities during market downturns.
Recession-resistant business model: Bear market stocks often belong to companies with a recession-resistant business model. These companies offer products or services that remain in demand even during tough economic times. Essential goods, such as consumer staples, healthcare and utilities, fall into this category, as people continue to need these products regardless of the state of the economy.
Consistent earnings growth: The best stocks to buy during a bear market are those with a history of consistent earnings growth. These companies have proven their ability to generate profits despite challenging market conditions. Steady earnings growth signals that the company is well-managed, has a sustainable business model and can weather economic headwinds.
Strong financial position: Bear market stocks typically have a strong financial position characterized by low debt levels, ample cash reserves and efficient capital management. A robust financial standing allows these companies to navigate financial hardships and continue operations during market downturns.
Dividend-paying stocks: You should highly regard dividend-paying stocks during a bear market. Companies that regularly pay dividends provide shareholders with a steady stream of income, which can help offset potential losses resulting from declining stock prices.
Defensive business sectors: Certain sectors are considered defensive during bear markets due to the stable demand for their products or services. Investors often seek out stocks in industries like healthcare, utilities and consumer staples, as these sectors tend to exhibit more stability during economic downturns.
Long-term growth potential: Bear market stocks may also possess long-term growth potential. These companies could be industry leaders, demonstrating innovation, adaptability and the ability to seize growth opportunities even in challenging market environments.
Contrarian investing opportunities: For some investors, bear market stocks present contrarian investing opportunities. A contrarian approach involves buying stocks others sell due to adverse market sentiment. Contrarian investors believe market sentiment tends to overreact to short-term events, creating opportunities to buy undervalued assets.
Quality management team: A good bear market stock has a quality management team capable of making strategic decisions and navigating the company through economic downturns. Strong leadership ensures a company's resilience during challenging market conditions.
Diversification and risk mitigation: Investors often seek bear market stocks as part of a diversified portfolio strategy to mitigate risk during market downturns. Including assets with bear market characteristics can act as a defensive hedge against broader market declines.
A stock qualifies as a bear market stock when it exhibits traits that make it resilient, capable of withstanding market challenges and potentially attractive during economic downturns. These stocks often belong to companies with recession-resistant business models, consistent earnings growth, strong financial positions and the ability to pay dividends. The best stocks for a bear market can help you protect your portfolio and seize opportunities in market turbulence. As with any investment, thorough research and careful consideration of individual financial goals and risk tolerance are essential when selecting bear market stocks. Diversifying across various asset classes and industries can further enhance portfolio resilience during economic uncertainties.
Best Stocks to Buy in a Bear Market
When buying stocks in a bear market, you should focus on companies with strong fundamentals, competitive advantages and solid management. Such stocks may weather the downturn and perform well when the market eventually rebounds. Overall, investing in bear market stocks requires careful consideration and analysis. Understanding the risks involved and aligning investments with individual financial goals and risk tolerance is essential. You can increase your chances of success in challenging market conditions by strategically selecting the best stocks to buy during a bear market and diversifying across various assets.
Name
Ticker
Market cap
Industry description
Walmart
NYSE: WMT
$426.3 billion
Retail
AbbVie
NYSE: ABBV
$260.6 billion
Pharmaceuticals
Johnson & Johnson
NYSE: JNJ
$439.3 billion
Pharmaceuticals
T-Mobile US
NASDAQ: TMUS
$158.3 billion
Telecommunications
Equinix
NASDAQ: EQIX
$70.8 billion
Information Technology
Walmart (NYSE: WMT)
Walmart Inc. (NYSE: WMT) is a retail giant that barely requires an introduction. As one of the world's largest and most well-known companies, Walmart operates a chain of hypermarkets, discount department stores and grocery stores, offering a wide range of products, including groceries, pharmacy items and general merchandise. Its extensive product offerings and vast network of stores have solidified its position as a leader in the retail industry. Walmart's inclusion on our list of best stocks for a bear market stems from its recession-resistant business model. As a retailer of essential goods, Walmart sells products that people need daily, making it less susceptible to economic downturns. During bear markets, when consumer spending may decrease, Walmart's focus on offering essential items positions it to maintain steady demand and revenue.
Another compelling factor is Walmart's earnings growth over the years. The company's strong financial performance, backed by a proven track record of earnings, showcases effective management and a sustainable business model. These consistent earnings are essential for bear market stocks, indicating Walmart's ability to weather market challenges.
Furthermore, Walmart boasts a solid financial position with significant cash reserves and low debt levels. This financial strength enhances its ability to weather economic storms and continue its operations even if the broader economy takes a downturn. Consider companies with strong financial positions when considering how to buy stocks in bear markets when economic uncertainty is prevalent.
Moreover, the company is known for being a dividend-paying stock. Walmart (NYSE: WMT) regularly distributes dividends to its shareholders, providing you with a steady stream of income, which can help offset potential losses during bear markets. Dividend-paying stocks are highly regarded during economic downturns, as they offer a measure of stability to you. Walmart's retail business falls into the category of defensive business sectors. The demand for groceries and essential goods remains relatively stable during economic downturns, making Walmart's business more resilient in challenging market conditions.
Walmart has demonstrated long-term growth potential, adapting to changing consumer preferences and technological advancements. Its e-commerce initiatives and focus on digital transformation have contributed to its ongoing growth and competitiveness in the retail landscape. Walmart's recession-resistant business model, consistent earnings growth, strong financial position, dividend-paying status, presence in defensive business sectors, long-term growth potential and proven management team make it a compelling choice if you seek stability and potential opportunities in a bear market.
AbbVie (NYSE: ABBV)
AbbVie Inc. (NYSE: ABBV) is a renowned pharmaceutical company specializing in developing and marketing drugs for various diseases. With Abbvie's strong pipeline of new drugs in development and its portfolio of existing drugs that continue to generate robust sales, AbbVie has established itself as a leader in the biotechnology and pharmaceutical industries. AbbVie goes on our list of best stocks to buy during a bear market due to its recession-resistant business model. As a pharmaceutical company, AbbVie operates in a less sensitive sector to economic fluctuations. Regardless of market conditions, the demand for essential medications remains relatively stable, making AbbVie's business model resilient during economic downturns.
The company's consistent earnings further strengthen its position as a bear market stock. AbbVie's ability to deliver earnings growth over time underscores its effective management and successful execution of its business strategy. This track record of solid earnings indicates that AbbVie is well-managed and possesses a sustainable business model, factors highly valued during bear markets. AbbVie's strong financial position adds to its appeal as a bear market stock. The company boasts ample cash reserves and low debt levels, providing financial flexibility to weather potential economic challenges. A solid financial standing enhances AbbVie's ability to continue investing in research and development, maintaining its competitive edge even during economic downturns.
AbbVie is a dividend-paying stock, making it an attractive choice for seeking income and stability during bear markets. AbbVie's dividends offer a reliable stream of income, which can help you mitigate potential losses resulting from market declines. From a defensive perspective, the pharmaceutical industry falls into the category of defensive business sectors. People will always require medication and medical treatments, making AbbVie's products indispensable, even during challenging economic conditions.
Moreover, AbbVie's strong focus on research and development highlights its long-term growth potential. The company's pipeline of new drugs positions it to seize growth opportunities and adapt to changing market demands, making it an appealing prospect if you are seeking long-term growth even during a bear market. While AbbVie's inclusion in our list of best stocks for a bear market is based on its strong attributes, it is crucial to remember that all investments carry inherent risks. Diversification and risk mitigation strategies are essential for successful bear market investing.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a well-established healthcare company renowned for its diverse portfolio of products, including pharmaceuticals, medical devices and consumer health products. With a global presence and a history spanning over a century, Johnson & Johnson has earned a reputation for delivering innovative solutions that improve human health and well-being.
Johnson & Johnson is on our list of best stocks to buy during a bear market due to its recession-resistant business model. As a healthcare company, Johnson & Johnson operates in a relatively resilient sector during economic downturns. The demand for healthcare products and services remains steady, making Johnson & Johnson less vulnerable to economic fluctuations.
A key factor driving the company's inclusion in our list is Johnson & Johnson's consistent earnings growth. Over the years, the company has demonstrated its ability to deliver consistent earnings growth, showcasing effective management and a sustainable business model. This strong earnings growth track record enhances its appeal as a bear market stock. Furthermore, Johnson & Johnson's solid financial position shows low debt levels. This financial strength gives the company the flexibility to invest in research and development, fund acquisitions and weather potential economic challenges, bolstering its position during bear markets.
Johnson & Johnson's dividend payment is also a well-known advantage for the stock, making it an attractive choice if you seek income and stability during bear markets. The company's commitment to distributing dividends reflects its financial strength and shareholder-friendly approach.
Johnson & Johnson operates in defensive business sectors. The healthcare industry, especially pharmaceuticals and consumer health products, is considered defensive, as people continue to require medical treatments and essential health products regardless of economic conditions.
Additionally, Johnson & Johnson exhibits long-term growth potential by focusing on innovation and adaptation. The company's ongoing investment in research and development ensures a pipeline of new products and technologies, positioning it to seize growth opportunities even during economic downturns. You may find Johnson & Johnson appealing during bear markets if you seek contrarian investing opportunities. A contrarian approach involves investing in stocks others may sell due to Johnson & Johnson's recent negative market sentiment. Johnson & Johnson's solid fundamentals and long-term growth prospects may attract investors looking for undervalued assets during bearish periods.
Johnson & Johnson's commitment to quality management enhances its appeal as a bear market stock. The company's leadership team has a history of making strategic decisions and navigating the company through challenging market conditions, which can instill confidence during uncertain times. While Johnson & Johnson exhibits several favorable traits, it's essential to remember that all investments carry inherent risks. Diversification and risk mitigation strategies are crucial for successfully managing risk during bear markets.
T-Mobile US
T-Mobile US (NASDAQ: TMUS) is a prominent wireless telecommunications company that has caught our attention as one of the best stocks to buy during a bear market. As a leading player in the wireless industry, T-Mobile US boasts a recession-resistant business model, delivering essential wireless services that people continue to rely on even during challenging economic times. This resilience in its business model makes T-Mobile US an attractive option if you are seeking stability in turbulent markets.
One of the key reasons for selecting T-Mobile US as a bear market stock is its consistent earnings growth. The company has demonstrated its ability to generate steady earnings over time, a strong indicator of its effective management and sustainable business practices. This track record of consistent growth bolsters its position as a reliable investment choice in uncertain market conditions.
The company is distinguished by T-Mobile's financial position, characterized by prudent debt management. Such financial strength allows the company to navigate economic headwinds and continue investing in strategic initiatives, even amidst a bear market. Furthermore, T-Mobile US is a dividend-paying stock, providing you with a dependable income stream, which can be especially valuable during periods of market volatility.
In the wireless industry, categorized as a defensive business sector, T-Mobile US is a reliable stock option during economic downturns. The demand for wireless services remains relatively stable, making the industry less susceptible to economic fluctuations than other sectors.
This defensive characteristic adds to T-Mobile US's appeal as a bear market stock. Beyond its immediate strengths, T-Mobile US exhibits significant long-term growth potential. The company is actively expanding its 5G network and attracting new customers, positioning itself for sustained growth in the ever-evolving telecommunications landscape. In addition, T-Mobile US focuses on sustainability, a trait that is becoming more and more important. This forward-looking approach can make seeking opportunities with lasting growth potential appealing, even during a bear market.
Equinix Inc.
Equinix Inc. (NASDAQ: EQIX), a global data center company, is a notable addition to our list of best stocks to buy during a bear market. Equinix offers colocation, interconnection and data center services to businesses of all sizes, making it a critical infrastructure provider in the digital era. Several key attributes set Equinix apart as a well-positioned bear market stock.
One of the compelling reasons for selecting Equinix is its recession-resistant business model. Data centers facilitate seamless digital business operations, regardless of economic conditions. As a result, data center services are not as sensitive to economic fluctuations as other sectors, making Equinix's business model more resilient during a bear market.
Equinix's earnings growth track record contributes to its appeal as a bear market stock. Over the past years, the company has achieved impressive revenue and earnings per share growth. This consistent financial performance showcases Equinix's effectiveness in navigating dynamic market conditions and its commitment to sustainable growth.
Furthermore, Equinix boasts a solid financial position with low debt levels. This financial strength allows the company to withstand economic challenges and seize growth opportunities even during a bear market. Combining a recession-resistant model and strong financial position bolsters Equinix's reliability as an investment choice during market volatility. Equinix is also a dividend-paying stock. This dividend distribution provides a reliable income stream, even in a bear market, making Equinix an attractive option for those seeking stability in uncertain times.
Considering the future, Equinix exhibits substantial long-term growth potential. The global data center market witnessed a compound annual growth rate (CAGR) of 8% from 2022 to 2027, and Equinix positions itself to capitalize on this growth trajectory. As data usage and digital infrastructure become increasingly crucial for businesses worldwide, Equinix's services stay in high demand, driving its long-term growth. Equinix represents a contrarian investing opportunity, with the stock currently trading below its fair value. You can acquire Equinix shares at a discounted price, presenting the potential for capital appreciation when the market sentiment aligns with the company's intrinsic value. Equinix boasts comprehensive attributes that render it a compelling bear market stock.
Fortified Portfolios for Smart Investors
The carefully selected bear market stocks we've explored offer investors a shield of resilience and a gateway to potential growth in an uncertain market climate. From recession-resistant business models to consistent earnings growth and dividend-paying stocks, these stocks embody qualities that can weather the storm of market volatility. By strategically incorporating these fortified investments, investors can confidently navigate the bear market and position themselves for long-term success. Smart investors can proactively fortify their portfolios for a more secure financial future by embracing the essence of these opportunities.
FAQs
Let’s unravel the mysteries of bear market investing by answering some of your most frequently asked questions. Finding the right investment approach can be perplexing in times of market turbulence. To shed light on the subject, we've gathered some of the most commonly asked questions about bear market strategies. Let's delve into these queries to discover the secrets of navigating bearish territories with confidence and savvy decision-making.
Which stocks to buy in a bear market?
Choosing the right stocks during a bear market can be challenging. Investors often seek recession-resistant companies, those with strong balance sheets and a history of consistent earnings growth. Additionally, defensive sectors and stocks with long-term growth potential may be considered. However, it's crucial to conduct thorough research and consider individual risk tolerance before making any investment decisions.
Is it best to buy stocks in a bear market?
The decision to buy stocks during a bear market depends on individual investment goals and strategies. Some investors see bear markets as an opportunity to buy stocks at discounted prices, aiming for potential long-term gains as the market recovers. However, others may opt for a more cautious approach, focusing on preserving capital and waiting for clearer market trends.
How do you make money in a bear market?
Making money in a bear market requires careful planning and risk management. Some strategies include short-selling, investing in inverse ETFs or bear market funds and seeking refuge in defensive assets like gold or bonds. Adopting a diversified portfolio with a mix of investments can help mitigate risk and capitalize on market fluctuations.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | $426.3 billion Retail AbbVie AbbVie (NYSE: ABBV) AbbVie Inc. (NYSE: ABBV) is a renowned pharmaceutical company specializing in developing and marketing drugs for various diseases. With Abbvie's strong pipeline of new drugs in development and its portfolio of existing drugs that continue to generate robust sales, AbbVie has established itself as a leader in the biotechnology and pharmaceutical industries. | $426.3 billion Retail AbbVie AbbVie (NYSE: ABBV) AbbVie Inc. (NYSE: ABBV) is a renowned pharmaceutical company specializing in developing and marketing drugs for various diseases. With Abbvie's strong pipeline of new drugs in development and its portfolio of existing drugs that continue to generate robust sales, AbbVie has established itself as a leader in the biotechnology and pharmaceutical industries. | $426.3 billion Retail AbbVie AbbVie (NYSE: ABBV) AbbVie Inc. (NYSE: ABBV) is a renowned pharmaceutical company specializing in developing and marketing drugs for various diseases. With Abbvie's strong pipeline of new drugs in development and its portfolio of existing drugs that continue to generate robust sales, AbbVie has established itself as a leader in the biotechnology and pharmaceutical industries. | $426.3 billion Retail AbbVie AbbVie (NYSE: ABBV) AbbVie Inc. (NYSE: ABBV) is a renowned pharmaceutical company specializing in developing and marketing drugs for various diseases. With Abbvie's strong pipeline of new drugs in development and its portfolio of existing drugs that continue to generate robust sales, AbbVie has established itself as a leader in the biotechnology and pharmaceutical industries. |
22283.0 | 2023-08-11 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-13 | 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. |
22284.0 | 2023-08-10 00:00:00 UTC | Obesity drug data could boost companies' case for US coverage-analysts | ABBV | https://www.nasdaq.com/articles/obesity-drug-data-could-boost-companies-case-for-us-coverage-analysts-0 | nan | nan | By Patrick Wingrove
Aug 10 (Reuters) - New data on the heart benefit of an obesity drug from Novo Nordisk NOVOb.CO increases the chances of a pay-off for it and Eli Lilly, which have spent a record amount on U.S. lobbying to win government backing for the drugs, analysts and experts said.
U.S. law classifies weight-loss treatments as lifestyle drugs and bars Medicare from paying for them. Novo and Eli Lilly have spent nearly $1.3 million this year lobbying the U.S. Congress on obesity and specifically on a bill reintroduced in July that would allow the Medicare health plan to reimburse these medicines.
Novo's treatment was shown to decrease heart attacks and strokes by 20% and the drugmaker has said it will seek regulatory approval for Wegovy as a cardiovascular treatment, which analysts and health policy experts said could also be a route to winning reimbursement from Medicare.
Vanderbilt University Professor Stacie Dusetzina said she thought the trial results might provide an avenue to coverage for people similar to those in the study in terms of having a prior heart attack or stroke.
"The drug ingredient semaglutide is already covered when used in lower doses for treatment of diabetes, so if the drug receives additional indications that are typically covered by Medicare, I'd expect those patients to have access to the drug," she said.
Wegovy and Eli Lilly's Mounjaro, a diabetes treatment similar to Wegovy that is expected to be approved for obesity this year, are two of the fastest growing drugs in the country, with a price tag of more than $1,000 per month. Wegovy prescriptions were up 300% at their peak, according to data from Barclays, before supply issues began to hamper sales.
Novo Nordisk Chief Financial Officer Karsten Munk Knudsen said on Thursday he expects the new data to help its discussions with public health authorities and other payers about the benefits of Wegovy.
"Our assessment is that this will make a big difference both for patients, prescribers and payers," he said on a call with media after the company raised its full-year outlook.
"This is a key piece of evidence when we have payer discussions on a global level in terms of the value of obesity care treatments."
Eli Lilly did not respond to requests for comment.
A COMPELLING CASE
Analysts said the data made a compelling case for long-term health benefits of the drug.
"This 20% risk reduction in cardiovascular events, including death, will start to make a huge difference and a real push to get the law changed," said BMO analyst Evan Seigerman.
Analysts were divided on whether Medicare could potentially cover Wegovy as a cardiovascular treatment without a new law passing. Three doctors specializing in obesity treatment, including a cardiologist, were not sure whether such an indication would allow for Medicare coverage.
Dr. Eugene Yang, a cardiologist at University of Washington Medicine, said that although the data has yet to be peer-reviewed and published, it is promising because he and his colleagues have not had a strategy to deal with the growing rates of obesity and corresponding cardiovascular problems before.
"The devil will be in the details, but having a therapeutic option that reduces weight and has a potential cardiovascular benefit is exciting," he said.
Morningstar analyst Damien Conover noted that the study's positive outcome would likely push payers - a group that includes insurance companies, employers and Medicare - to increase coverage over the next year.
Companies that provide healthcare insurance have begun pulling back on coverage of weight loss drugs because of the high cost of the medicines.
Benefits experts warned that passing a law that would increase the costs for Medicare, which covers about 66 million people mostly aged 65 and older, would be difficult.
NOVO SPENDING ON PACE TO PASS 2022's
In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA).
That is almost two-thirds of Novo's reported lobbying expenditure for the whole of 2022, according to the U.S. Senate's lobbying disclosure database.
They reported spending $350,000 on lobbying the issue for the manufacturer last quarter, at least $90,000 more than Novo Nordisk's firms have disclosed collectively paying in a quarter prior to 2023.
Eli Lilly's firms also recorded having paid $640,000 collectively in the first half of this year on lobbying for Medicare weight-loss coverage, the same amount they disclosed for the issue for the whole of 2022.
The two drugmakers collectively spent more than $7.5 million on these lobbying efforts over the last decade.
Vanderbilt's Dusetzina said the increase in spend might not be enough to get Democrat and Republican lawmakers to band together on this issue.
"Changing Medicare policy and passing legislation, even if most people agree with the policy goals, is very challenging in the current political environment," she said.
Lobbying for weight loss drugs could soon pay off https://tmsnrt.rs/3QuthDM
(Reporting by Patrick Wingrove in New York; Additional reporting by Elissa Welle in New York and Ahmed Aboulenein in Washington; Editing by Caroline Humer and Sharon Singleton)
((Patrick.Wingrove@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. | Novo and Eli Lilly have spent nearly $1.3 million this year lobbying the U.S. Congress on obesity and specifically on a bill reintroduced in July that would allow the Medicare health plan to reimburse these medicines. Vanderbilt University Professor Stacie Dusetzina said she thought the trial results might provide an avenue to coverage for people similar to those in the study in terms of having a prior heart attack or stroke. Morningstar analyst Damien Conover noted that the study's positive outcome would likely push payers - a group that includes insurance companies, employers and Medicare - to increase coverage over the next year. | NOVO SPENDING ON PACE TO PASS 2022's In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA). Eli Lilly's firms also recorded having paid $640,000 collectively in the first half of this year on lobbying for Medicare weight-loss coverage, the same amount they disclosed for the issue for the whole of 2022. Lobbying for weight loss drugs could soon pay off https://tmsnrt.rs/3QuthDM (Reporting by Patrick Wingrove in New York; Additional reporting by Elissa Welle in New York and Ahmed Aboulenein in Washington; Editing by Caroline Humer and Sharon Singleton) ((Patrick.Wingrove@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 Patrick Wingrove Aug 10 (Reuters) - New data on the heart benefit of an obesity drug from Novo Nordisk NOVOb.CO increases the chances of a pay-off for it and Eli Lilly, which have spent a record amount on U.S. lobbying to win government backing for the drugs, analysts and experts said. Novo's treatment was shown to decrease heart attacks and strokes by 20% and the drugmaker has said it will seek regulatory approval for Wegovy as a cardiovascular treatment, which analysts and health policy experts said could also be a route to winning reimbursement from Medicare. NOVO SPENDING ON PACE TO PASS 2022's In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA). | Analysts were divided on whether Medicare could potentially cover Wegovy as a cardiovascular treatment without a new law passing. NOVO SPENDING ON PACE TO PASS 2022's In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA). Eli Lilly's firms also recorded having paid $640,000 collectively in the first half of this year on lobbying for Medicare weight-loss coverage, the same amount they disclosed for the issue for the whole of 2022. |
22285.0 | 2023-08-10 00:00:00 UTC | Obesity drug data could boost companies' case for US coverage-analysts | ABBV | https://www.nasdaq.com/articles/obesity-drug-data-could-boost-companies-case-for-us-coverage-analysts | nan | nan | By Patrick Wingrove
Aug 10 (Reuters) - New data on the heart benefit of an obesity drug from Novo Nordisk NOVOb.CO increases the chances of a pay-off for it and rival Eli Lilly, which have spent a record amount on U.S. lobbying to win government backing for the drugs, analysts and experts said.
U.S. law classifies weight-loss treatments as lifestyle drugs and bars Medicare from paying for them. Novo and Eli Lilly have spent nearly $1.3 million this year lobbying the U.S. Congress on obesity and specifically on a bill reintroduced in July that would allow the Medicare health plan to reimburse these medicines.
Novo's treatment was shown to decrease heart attacks and strokes by 20% and the drugmaker has said it will seek regulatory approval for Wegovy as a cardiovascular treatment, which analysts and health policy experts said could also be a route to winning reimbursement from Medicare.
Vanderbilt University Professor Stacie Dusetzina said she thought the trial results might provide an avenue to coverage for people similar to those in the study in terms of having a prior heart attack or stroke.
"The drug ingredient semaglutide is already covered when used in lower doses for treatment of diabetes, so if the drug receives additional indications that are typically covered by Medicare, I'd expect those patients to have access to the drug," she said.
Wegovy and Eli Lilly's Mounjaro, a diabetes treatment similar to Wegovy that is expected to be approved for obesity this year, are two of the fastest growing drugs in the country, with a price tag of more than $1,000 per month. Wegovy prescriptions were up 300% at their peak, according to data from Barclays, before supply issues began to hamper sales.
Novo Nordisk and Eli Lilly did not respond to requests for comment.
A COMPELLING CASE
Analysts said the data made a compelling case for long-term health benefits of the drug.
"This 20% risk reduction in cardiovascular events, including death, will start to make a huge difference and a real push to get the law changed," said BMO analyst Evan Seigerman.
Analysts were divided on whether Medicare could potentially cover Wegovy as a cardiovascular treatment without a new law passing. Three doctors specializing in obesity treatment, including a cardiologist, were not sure whether such an indication would allow for Medicare coverage.
Dr. Eugene Yang, a cardiologist at University of Washington Medicine, said that although the data has yet to be peer-reviewed and published, it is promising because he and his colleagues have not had a strategy to deal with the growing rates of obesity and corresponding cardiovascular problems before.
"The devil will be in the details, but having a therapeutic option that reduces weight and has a potential cardiovascular benefit is exciting," he said.
Morningstar analyst Damien Conover noted that the study's positive outcome would likely push payers - a group that includes insurance companies, employers and Medicare - to increase coverage over the next year.
Companies that provide healthcare insurance have begun pulling back on coverage of weight loss drugs because of the high cost of the medicines.
Benefits experts warned that passing a law that would increase the costs for Medicare, which covers about 66 million people mostly aged 65 and older, would be difficult.
NOVO SPENDING ON PACE TO PASS 2022's
In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA).
That is almost two-thirds of Novo's reported lobbying expenditure for the whole of 2022, according to the U.S. Senate's lobbying disclosure database.
They reported spending $350,000 on lobbying the issue for the manufacturer last quarter, at least $90,000 more than Novo Nordisk's firms have disclosed collectively paying in a quarter prior to 2023.
Eli Lilly's firms also recorded having paid $640,000 collectively in the first half of this year on lobbying for Medicare weight-loss coverage, the same amount they disclosed for the issue for the whole of 2022.
The two drugmakers collectively spent more than $7.5 million on these lobbying efforts over the last decade.
Vanderbilt's Dusetzina said the increase in spend might not be enough to get Democrat and Republican lawmakers to band together on this issue.
"Changing Medicare policy and passing legislation, even if most people agree with the policy goals, is very challenging in the current political environment," she said.
Lobbying for weight loss drugs could soon pay off https://tmsnrt.rs/3QuthDM
(Reporting by Patrick Wingrove in New York; Additional reporting by Elissa Welle in New York and Ahmed Aboulenein in Washington; Editing by Caroline Humer)
((Patrick.Wingrove@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. | Vanderbilt University Professor Stacie Dusetzina said she thought the trial results might provide an avenue to coverage for people similar to those in the study in terms of having a prior heart attack or stroke. Dr. Eugene Yang, a cardiologist at University of Washington Medicine, said that although the data has yet to be peer-reviewed and published, it is promising because he and his colleagues have not had a strategy to deal with the growing rates of obesity and corresponding cardiovascular problems before. Morningstar analyst Damien Conover noted that the study's positive outcome would likely push payers - a group that includes insurance companies, employers and Medicare - to increase coverage over the next year. | NOVO SPENDING ON PACE TO PASS 2022's In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA). Eli Lilly's firms also recorded having paid $640,000 collectively in the first half of this year on lobbying for Medicare weight-loss coverage, the same amount they disclosed for the issue for the whole of 2022. Lobbying for weight loss drugs could soon pay off https://tmsnrt.rs/3QuthDM (Reporting by Patrick Wingrove in New York; Additional reporting by Elissa Welle in New York and Ahmed Aboulenein in Washington; Editing by Caroline Humer) ((Patrick.Wingrove@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 Patrick Wingrove Aug 10 (Reuters) - New data on the heart benefit of an obesity drug from Novo Nordisk NOVOb.CO increases the chances of a pay-off for it and rival Eli Lilly, which have spent a record amount on U.S. lobbying to win government backing for the drugs, analysts and experts said. Novo's treatment was shown to decrease heart attacks and strokes by 20% and the drugmaker has said it will seek regulatory approval for Wegovy as a cardiovascular treatment, which analysts and health policy experts said could also be a route to winning reimbursement from Medicare. NOVO SPENDING ON PACE TO PASS 2022's In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA). | Analysts were divided on whether Medicare could potentially cover Wegovy as a cardiovascular treatment without a new law passing. NOVO SPENDING ON PACE TO PASS 2022's In the lead-up to the result, lobbying firms employed by the Danish drugmaker disclosed a collective spend of $630,000 in the first half of this year to urge lawmakers to allow Medicare to cover weight-loss drugs, including in the reintroduced law from Democratic Senator Tom Carper called the Treat and Reduce Obesity Act (TROA). Eli Lilly's firms also recorded having paid $640,000 collectively in the first half of this year on lobbying for Medicare weight-loss coverage, the same amount they disclosed for the issue for the whole of 2022. |
22286.0 | 2023-08-09 00:00:00 UTC | VHT, UNH, JNJ, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/vht-unh-jnj-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 Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $161.2 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 69,042,740 to 69,694,386). Among the largest underlying components of VHT, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.7%, Johnson & Johnson (Symbol: JNJ) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.9%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average:
Looking at the chart above, VHT's low point in its 52 week range is $220.50 per share, with $259.04 as the 52 week high point — that compares with a last trade of $247.81. 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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ACVA Next Earnings Date
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 VHT, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.7%, Johnson & Johnson (Symbol: JNJ) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.9%. 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 VHT, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.7%, Johnson & Johnson (Symbol: JNJ) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.9%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $220.50 per share, with $259.04 as the 52 week high point — that compares with a last trade of $247.81. 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 VHT, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.7%, Johnson & Johnson (Symbol: JNJ) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $161.2 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 69,042,740 to 69,694,386). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $220.50 per share, with $259.04 as the 52 week high point — that compares with a last trade of $247.81. | Among the largest underlying components of VHT, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.7%, Johnson & Johnson (Symbol: JNJ) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $161.2 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 69,042,740 to 69,694,386). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $220.50 per share, with $259.04 as the 52 week high point — that compares with a last trade of $247.81. |
22287.0 | 2023-08-09 00:00:00 UTC | 3 Stocks That Recently Raised Their Guidance for the Year | ABBV | https://www.nasdaq.com/articles/3-stocks-that-recently-raised-their-guidance-for-the-year | nan | nan | GDP grew at a rate of 2.4% in the second quarter as the economy did better than expected. And many businesses are also seeing strong demand for their products and services. That, in turn, leads to upgraded forecasts and better outlooks for the entire year.
AbbVie (NYSE: ABBV), Coca-Cola (NYSE: KO), and DoorDash (NYSE: DASH) all recently boosted their projections for 2023. Here's a look at why they are more optimistic about the future, and whether you should consider adding these stocks to your portfolio.
1. AbbVie
Drugmaker AbbVie is looking at a tough year with sales of its top drug Humira expected to fall significantly amid an increase in competition. With biosimilars becoming available, the drug's market share will take a big hit. But the situation isn't as dire as the company's original forecast suggested.
Initially, AbbVie expected Humira's sales to fall by 37% this year, but now the company is expecting a 35% decline. Some of the biosimilars aren't priced at big discounts to Humira, which is why the outlook is a bit more favorable.
At 35%, it's still a sizable hit for a drug that generated around $20 billion in revenue for AbbVie in each of the past three years. But the company raised its guidance nonetheless, and now expects its adjusted diluted per-share earnings to be within a range of $10.90 to $11.10, which is up from its previous forecast of $10.57 to $10.97.
At 13 times estimated future earnings, AbbVie's valuation is relatively low -- the average healthcare stock trades at a multiple of more than 18. Although Humira's sales will continue to decline in the future, the company has previously stated that it expects new immunology drugs Skyrizi and Rinvoq to eventually reach a higher combined peak. For long-term investors, AbbVie could make for an excellent stock to buy right now.
2. Coca-Cola
Soft drink company Coca-Cola enjoys strong pricing power, which has enabled it to pass along rising costs to consumers without seeing a big drop off in demand.
Through the first six months of the year, the company's net revenue has risen by 5%, even with foreign currency exchange rates negatively impacting its top line. Price mix has played a big part in the company's sales growth, resulting in a 10% boost to the top line -- but even concentrate sales, which relate to volume, were up by 1%, indicating that demand hasn't dropped off even with the increase in price.
As a result of the stronger-than-expected performance, management projects that the company's comparable earnings per share will grow between 4% and 5% this year, up from a previous range of 3% to 4%. It also upgraded its forecast for organic revenue growth, now projecting it to be between 8% and 9%, which is a full percentage point higher than before.
Coca-Cola could be a solid stock to own for dividend investors as it yields 3% and has a robust, stable business. But if you're a growth investor, you still may want to pass on the stock as its price-to-earnings multiple of 27 is fairly high for a business that has been relying on price increases for much of its growth this year.
3. DoorDash
Food delivery also remains surprisingly resilient even though prices are on the rise. DoorDash reported its second-quarter numbers last week, and revenue of $2.1 billion for the period ended June 30 was up 33% year over year. The company's orders were up by 25% to 532 million as demand remained strong.
For the full year, DoorDash is projecting that its marketplace gross order value, which is the total of all of its orders, will be within a range of $64.2 billion to $65.2 billion this year, up from a previous forecast of $63 billion to $64.5 billion. The company also boosted its projections for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by $150 million, and is now expecting up to $1.05 billion in adjusted earnings.
DoorDash may be the riskiest stock on this list. The business is doing well right now, but if economic conditions worsen, demand could start to drop off. A possible headwind is the resumption of student loan repayments later this year, which will impact purchasing power and potentially the amount of money consumers spend on food delivery.
With the stock inching closer to its 52-week high and trading at 83 times its estimated future earnings, investors may be better off taking a wait-and-see approach as there could still be tougher times ahead for the business.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV), Coca-Cola (NYSE: KO), and DoorDash (NYSE: DASH) all recently boosted their projections for 2023. AbbVie Drugmaker AbbVie is looking at a tough year with sales of its top drug Humira expected to fall significantly amid an increase in competition. Initially, AbbVie expected Humira's sales to fall by 37% this year, but now the company is expecting a 35% decline. | Initially, AbbVie expected Humira's sales to fall by 37% this year, but now the company is expecting a 35% decline. At 13 times estimated future earnings, AbbVie's valuation is relatively low -- the average healthcare stock trades at a multiple of more than 18. AbbVie (NYSE: ABBV), Coca-Cola (NYSE: KO), and DoorDash (NYSE: DASH) all recently boosted their projections for 2023. | AbbVie (NYSE: ABBV), Coca-Cola (NYSE: KO), and DoorDash (NYSE: DASH) all recently boosted their projections for 2023. AbbVie Drugmaker AbbVie is looking at a tough year with sales of its top drug Humira expected to fall significantly amid an increase in competition. Initially, AbbVie expected Humira's sales to fall by 37% this year, but now the company is expecting a 35% decline. | AbbVie (NYSE: ABBV), Coca-Cola (NYSE: KO), and DoorDash (NYSE: DASH) all recently boosted their projections for 2023. AbbVie Drugmaker AbbVie is looking at a tough year with sales of its top drug Humira expected to fall significantly amid an increase in competition. Initially, AbbVie expected Humira's sales to fall by 37% this year, but now the company is expecting a 35% decline. |
22288.0 | 2023-08-09 00:00:00 UTC | Ironwood's (IRWD) Reports Q2 Loss, Linzess Volume Rises | ABBV | https://www.nasdaq.com/articles/ironwoods-irwd-reports-q2-loss-linzess-volume-rises | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported second-quarter 2023 adjusted loss of $6.71 per share against earnings of 24 cents in the year-ago quarter. However, the reported figure included a one-time expense of approximately $1.1 billion pertaining to acquired in-process research and development (IPR&D) of VectivBio in the quarter.
Excluding the IPR&D cost, earnings were 31 cents per share, which beat the Zacks Consensus Estimate of 25 cents.
Ironwood completed the buyout of VectivBio, a Switzerland-based biotech company, in June. VectivBio focused on the development of treatments for severe and rare gastrointestinal conditions. The all-cash transaction was valued at approximately $1.1 billion, under which Ironwood paid $17.00 for one share of VectivBio.
Total revenues of $107.8 million beat the Zacks Consensus Estimate of $103 million. The top line also increased 10.4% year over year.
The stock nosedived 16.8% in the year-to-date period compared with the industry’s 3.5% decline.
Image Source: Zacks Investment Research
Quarter in Detail
As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $269.7 million in the United States, up 9% year over year driven by prescription growth. The total prescription and new prescription demand of Linzess increased 9% and 15%, respectively, from that recorded in the year-ago period.
Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. IRWD’s share of net profit from the sales of Linzess in the United States (included in collaborative revenues) totaled $104.8 million, up 11% year over year.
Linzess’ collaborative revenues from U.S. sales beat our model estimate of $101.5 million.
In the quarter, IRWD and ABBV received FDA’s approval for Linzess label expansion fortreating functional constipation in pediatric patients aged 6-17 years. Linzess becomes the first and only FDA-approved prescription therapy for functional constipation in pediatric patients.
Ironwood has agreements with two partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively. Both Astellas and AstraZeneca have exclusive rights to develop and market the drug in their respective territories. The partners are liable to pay royalties to Ironwood on net Linzess revenues earned in their own regions.
The company recorded $2.6 million in royalties and other revenues, down 3.7% from the prior-year quarter’s figure.
2023 Guidance Update
Ironwood updated its previously issued guidance for 2023, reflecting continued strong performance of Linzess in the United States.
The company expects total revenues in the range of $435-$450 million, up from the previous guided range of $420-$435 million. It also anticipates U.S. sales of Linzess to grow in the band of 6-8%, up from the previous range of 3-5%.
The company now expects adjusted EBITDA at a loss of approximately $900 million for the year (against the previously anticipated earnings of $250 million). The figure includes the abovementioned onetime charge of approximately $1.1 billion from the VectivBio acquisition.
Pipeline and Other Updates
With the acquisition of VectivBio, Ironwood acquired rights to develop and commercialize apraglutide. The candidate is being evaluated in a phase III study for treating short-bowel syndrome patients with intestinal failure. Enrollment in the study is complete and the top-line data from the same is expected in March 2024.
Apraglutide is also being evaluated in a phase II proof-of-concept studyfor patients with steroid-refractory gastrointestinal acute Graft versus Host Disease. Data from the study is anticipated by the first quarter of 2024.
Ironwood is also evaluating two other pipeline candidates, IW-3300 and CNP-104, for treating visceral pain conditions and primary biliary cholangitis (PBC), respectively. The phase II proof-of-concept study evaluating IW-3300 is ongoing for interstitial cystitis/bladder pain syndrome.
IRWD, in collaboration with COUR Pharmaceuticals, is developing CNP-104. The clinical study for the same is being conducted by COUR Pharmaceuticals to evaluate the candidate’s safety, tolerability, pharmacodynamic effects and efficacy in PBC patients. The study is expected to complete enrollment in the second half of 2023.
Ironwood Pharmaceuticals, Inc. Price and Consensus
Ironwood Pharmaceuticals, Inc. price-consensus-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank & Stock to Consider
Currently, Ironwood has a Zacks Rank #4 (Sell).
A better-ranked stock in the same industry is ADC Therapeutics ADCT, 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 90 days, the Zacks Consensus Estimate for ADC Therapeutics has narrowed from a loss of $2.77 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.59 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 58.3% year to date.
ADCT’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.70%.
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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 quarter, IRWD and ABBV received FDA’s approval for Linzess label expansion fortreating functional constipation in pediatric patients aged 6-17 years. Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $269.7 million in the United States, up 9% year over year driven by prescription growth. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $269.7 million in the United States, up 9% year over year driven by prescription growth. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report ADC Therapeutics SA (ADCT) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $269.7 million in the United States, up 9% year over year driven by prescription growth. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report ADC Therapeutics SA (ADCT) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $269.7 million in the United States, up 9% year over year driven by prescription growth. Ironwood and AbbVie equally share Linzess’ brand collaboration profits and losses. In the quarter, IRWD and ABBV received FDA’s approval for Linzess label expansion fortreating functional constipation in pediatric patients aged 6-17 years. |
22289.0 | 2023-08-09 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-4 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22290.0 | 2023-08-08 00:00:00 UTC | Why Shares of Enanta Pharmaceuticals Are Dropping Tuesday | ABBV | https://www.nasdaq.com/articles/why-shares-of-enanta-pharmaceuticals-are-dropping-tuesday | nan | nan | What happened
Shares of Enanta Pharmaceuticals (NASDAQ: ENTA) were down more than 9% as of 11:45 a.m. on Tuesday after the clinical-stage biotech released fiscal third-quarter earnings on Tuesday. The stock is down more than 62% so far this year.
So what
Enanta focuses on finding small-molecule drugs to treat viral infections and liver diseases. The company's quarterly revenue, all from royalties regarding sales of Mavyret, a hepatitis C therapy sold by AbbVie, fell 3% year over year to $18.9 million. Enanta reported a net loss of $39.1 million, or an earnings per share (EPS) loss of $1.86, compared to a loss of $31.7 million for an EPS loss of $1.53 in the same quarter a year ago.
The company cited increased clinical trial costs for the greater net loss. It said it had $392.5 million in cash, enough to fund operations into midyear in fiscal 2027.
In response to the earnings report, Jefferies downgraded its position on the company from buy to hold, and JMP Securities downgraded its price target for Enanta from $65 to $42.
Now what
The drop was a bit steep considering that the company, as a clinical-stage biotech, isn't expected to be profitable yet. The company had some positive phase 1 trial news regarding its respiratory syncytial virus (RSV) therapy EDP-323.
The company said encouraging safety and tolerability results for the drug means Enanta will start a phase 2 trial to see if it is effective as a monotherapy or combination therapy as an antiviral to treat RSV.
Enanta has a fairly robust pipeline of eight programs. Besides EDP-323, the company said that EDP-235, its oral protease inhibitor designed as a COVID antiviral, showed an improvement in 14 symptoms compared to a placebo in a recently completed phase 2 trial.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Jefferies Financial 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. | The company's quarterly revenue, all from royalties regarding sales of Mavyret, a hepatitis C therapy sold by AbbVie, fell 3% year over year to $18.9 million. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Jim Halley has positions in AbbVie. So what Enanta focuses on finding small-molecule drugs to treat viral infections and liver diseases. | The company's quarterly revenue, all from royalties regarding sales of Mavyret, a hepatitis C therapy sold by AbbVie, fell 3% year over year to $18.9 million. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Jim Halley has positions in AbbVie. Enanta reported a net loss of $39.1 million, or an earnings per share (EPS) loss of $1.86, compared to a loss of $31.7 million for an EPS loss of $1.53 in the same quarter a year ago. | The company's quarterly revenue, all from royalties regarding sales of Mavyret, a hepatitis C therapy sold by AbbVie, fell 3% year over year to $18.9 million. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Jim Halley has positions in AbbVie. Enanta reported a net loss of $39.1 million, or an earnings per share (EPS) loss of $1.86, compared to a loss of $31.7 million for an EPS loss of $1.53 in the same quarter a year ago. | The company's quarterly revenue, all from royalties regarding sales of Mavyret, a hepatitis C therapy sold by AbbVie, fell 3% year over year to $18.9 million. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Jim Halley has positions in AbbVie. The stock is down more than 62% so far this year. |
22291.0 | 2023-08-08 00:00:00 UTC | Organon results beat estimates on demand for women heath products, biosimilars | ABBV | https://www.nasdaq.com/articles/organon-results-beat-estimates-on-demand-for-women-heath-products-biosimilars | nan | nan | Aug 8 (Reuters) - Organon & Co OGN.N reported better-than-expected second-quarter results on Tuesday, helped by strong demand for its women's heath products and biosimilar drugs, sending the healthcare firm's shares up about 8%.
The company posted quarterly revenue of $1.61 billion, beating analysts' average estimate of $1.57 billion.
Revenue from its Women's Health segment rose 8% to $438 million, as sales of oral contraceptive Nexplanon jumped 12% to $214 million.
"In the United States, the Dobbs decision has driven an increase in demand from patients obtaining Nexplanon through providers under the 340B program, which is a more highly discounted channel," the company said in a conference call.
In the case known as as Dobbs v. Jackson Women's Health Organization, the U.S. Supreme Court in June last year overturned a ruling that established a constitutional right to abortion.
Revenue at the company's biosimilar unit increased 14%, primarily driven by Renflexis, a copycat version of autoimmune diseases' treatment Remicade.
Organon and partner Samsung Bioepis in July launched Hadlima, a biosimilar for AbbVie's ABBV.N blockbuster arthritis drug, Humira, at $1,038 per month, an 85% discount to the original treatment cost.
The biosimilar is being evaluated for the interchangeability designation, which allows patients to switch between the reference product and a copycat version without approvals from the prescribing physician.
Organon said it expects the interchangeability indication for the drug, which met the goals in a recent trial, by next summer.
The company said it expects revenue from its Established Brands franchise to be flat for 2023 after a 2% dip in second-quarter sales.
Organon now expects annual revenue of $6.25 billion to $6.45 billion, compared with its earlier forecast of $6.15 billion to $6.45 billion. Analysts estimate full-year revenue of $6.28 billion.
Excluding items, the company reported a profit of $1.31 for the quarter, compared with analysts' average estimate of 99 cents.
(Reporting by Sriparna Roy in Bengaluru Editing by Vinay Dwivedi)
((Sriparna.Roy@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. | Organon and partner Samsung Bioepis in July launched Hadlima, a biosimilar for AbbVie's ABBV.N blockbuster arthritis drug, Humira, at $1,038 per month, an 85% discount to the original treatment cost. Aug 8 (Reuters) - Organon & Co OGN.N reported better-than-expected second-quarter results on Tuesday, helped by strong demand for its women's heath products and biosimilar drugs, sending the healthcare firm's shares up about 8%. "In the United States, the Dobbs decision has driven an increase in demand from patients obtaining Nexplanon through providers under the 340B program, which is a more highly discounted channel," the company said in a conference call. | Organon and partner Samsung Bioepis in July launched Hadlima, a biosimilar for AbbVie's ABBV.N blockbuster arthritis drug, Humira, at $1,038 per month, an 85% discount to the original treatment cost. The company posted quarterly revenue of $1.61 billion, beating analysts' average estimate of $1.57 billion. Revenue at the company's biosimilar unit increased 14%, primarily driven by Renflexis, a copycat version of autoimmune diseases' treatment Remicade. | Organon and partner Samsung Bioepis in July launched Hadlima, a biosimilar for AbbVie's ABBV.N blockbuster arthritis drug, Humira, at $1,038 per month, an 85% discount to the original treatment cost. Aug 8 (Reuters) - Organon & Co OGN.N reported better-than-expected second-quarter results on Tuesday, helped by strong demand for its women's heath products and biosimilar drugs, sending the healthcare firm's shares up about 8%. The company posted quarterly revenue of $1.61 billion, beating analysts' average estimate of $1.57 billion. | Organon and partner Samsung Bioepis in July launched Hadlima, a biosimilar for AbbVie's ABBV.N blockbuster arthritis drug, Humira, at $1,038 per month, an 85% discount to the original treatment cost. The company posted quarterly revenue of $1.61 billion, beating analysts' average estimate of $1.57 billion. Revenue at the company's biosimilar unit increased 14%, primarily driven by Renflexis, a copycat version of autoimmune diseases' treatment Remicade. |
22292.0 | 2023-08-08 00:00:00 UTC | Is AbbVie Still a Good Dividend Stock to Buy? | ABBV | https://www.nasdaq.com/articles/is-abbvie-still-a-good-dividend-stock-to-buy | nan | nan | How do you know when a former favorite dividend stock is no longer one you should buy, or hold? Some would say it's time to look away as soon as the profits the company uses to make dividend payments begin shrinking.
AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year.
In January, Humira, AbbVie's top-selling drug, lost patent-protected market exclusivity in the United States. But the good news for investors is that this is a big company with lots of moving pieces. Here's a look at the pieces that are moving in the right direction. Let's see if they can offset Humira's losses and help AbbVie continue a legendary streak of dividend raises.
Dividends hardly get more reliable than this
Abbott Laboratories spun out its pharmaceutical operation as AbbVie back in 2013. Abbott hasn't missed a quarterly dividend payment in nearly 100 years, and it's raised its payout every year since 1973.
AbbVie kept up with the streak of annual increases and stepped on the gas. The drugmaker's payout has risen an outstanding 270% over the past decade.
Lucrative drug sales allowed AbbVie's operation to generate a whopping $23.5 billion in free cash flow over the past 12 months. The company needed just 43% of that amount to meet its dividend commitment. That suggests earnings can fall much further before investors need to worry about a reduced dividend.
Image source: Getty Images.
Managing the decline
Global Humira sales peaked at $21.2 billion last year, and $18.6 billion of that came from the U.S. market. Now that
Several lower-cost biosimilar versions, such as Amjevita from Amgen, are available in the U.S. market, global Humira sales fell to an annualized $16 billion during the second quarter.
This year, AbbVie expects about $53.4 billion in total revenue, which would be a decrease of just 8% from last year. The company is managing Humira's decline with rapidly rising sales of a few more recently launched drugs. Rinvoq is an arthritis treatment that launched in 2019, and it's already generating $3.7 billion in annualized sales. Skyrizi for psoriasis is about the same age as Rinvoq, and it reached an annualized run rate of $7.5 billion in the second quarter.
Earlier this year, AbbVie said it expected combined sales of Skyrizi and Rinvoq to exceed peak Humira sales by 2027. The pace they're on, though, suggests the company will beat its own timeline, and these are hardly its only growth drivers.
Vraylar, a schizophrenia treatment first approved in 2015, became a new option last December for millions of Americans with major depressive disorder. Now, AbbVie thinks Vraylar can generate an additional $2.5 billion in annual revenue at its peak.
In May, AbbVie and its collaboration partner, Genmab, received approval from the U.S. Food and Drug Administration for a new lymphoma treatment called Epkinly. This new injectable treatment is expected to generate sales of around $3 billion annually at its peak.
Still a buy
Replacing shrinking Humira revenue will be a big challenge for AbbVie, but it looks as if Skyrizi and Rinvoq are up to the task. With additional growth drivers like Epkinly and Vraylar pushing the company's needle, AbbVie should have no problem raising its dividend payout at a pace that exceeds inflation over the long run. Adding some shares to an income-generating portfolio looks like the smart move to make 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. | AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year. Lucrative drug sales allowed AbbVie's operation to generate a whopping $23.5 billion in free cash flow over the past 12 months. With additional growth drivers like Epkinly and Vraylar pushing the company's needle, AbbVie should have no problem raising its dividend payout at a pace that exceeds inflation over the long run. | Earlier this year, AbbVie said it expected combined sales of Skyrizi and Rinvoq to exceed peak Humira sales by 2027. AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year. In January, Humira, AbbVie's top-selling drug, lost patent-protected market exclusivity in the United States. | AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year. Earlier this year, AbbVie said it expected combined sales of Skyrizi and Rinvoq to exceed peak Humira sales by 2027. With additional growth drivers like Epkinly and Vraylar pushing the company's needle, AbbVie should have no problem raising its dividend payout at a pace that exceeds inflation over the long run. | Now, AbbVie thinks Vraylar can generate an additional $2.5 billion in annual revenue at its peak. AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year. In January, Humira, AbbVie's top-selling drug, lost patent-protected market exclusivity in the United States. |
22293.0 | 2023-08-07 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-12 | 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. |
22294.0 | 2023-08-07 00:00:00 UTC | Is Growth Priced into Amgen Stock after Earnings Beat? | ABBV | https://www.nasdaq.com/articles/is-growth-priced-into-amgen-stock-after-earnings-beat | nan | nan | Amgen Inc. (NASDAQ: AMGN) delivered a solid earnings report after the market closed on August 3. Shareholders hope the results will be enough to reverse the fortunes of AMGN stock, down 12% in 2023.
But heading into earnings, analyst sentiment suggests that all the growth may already be priced into the biopharmaceutical company’s stock.
The headline numbers were solid enough. The company beat on both the top and bottom lines. Earnings of $4.49 were a few cents higher than the forecast for $4.46 EPS.
On the top line, Amgen reported $7 billion in earnings, which was higher than the forecast for $6.6 billion. The company attributed the revenue beat to an 11% growth in volume which helped offset a 2% decline in net selling prices and slightly lower inventory levels.
The revenue number was higher than in the same quarter last year. Amgen earnings, however, were 3% lower on a year-over-year basis.
Revenue Up Across the Board
When a biopharmaceutical company reports earnings, investors look to see where the revenue comes from. Not surprisingly, the most reliable biopharma stocks tend to have multiple drug candidates.
If a company’s revenue is too dependent on one drug, it can be a warning sign for investors. That’s one reason AbbVie Inc. (NASDAQ: ABBV) has struggled in 2023. The company’s revenue is heavily dependent on its blockbuster drug, Humira. But this is the first year that Humira faces biosimilar competition.
And one of the primary biosimilars comes from Amgen. In January, Amgen announced that AMJEVITA would be the first biosimilar to Humira to be commercially available in the United States.
The U.S. Food & Drug Administration (FDA) approved AMJEVITA in 2016, but the patent thicket around Humira allowed Amgen to start selling the drug this year. The company reported 2% growth in quarterly sales.
Amgen also reported strong results from one of its cancer drugs, Blincyto; an osteoporosis treatment, Evenity, and its migraine treatment, Repatha.
One of the only concerns came in the results for its cancer drug LUMAKRAS, which were flat at $77 million instead of expectations for sales of $88 million.
No Move on the Horizon Front?
Another concern is that the company did not have positive news in its dispute with the Federal Trade Commission (FTC) over its proposed $28 billion acquisition of Horizon Therapeutics (NASDAQ: HZNP). Amgen stated in the conference call following earnings that, to date, the FTC has ignored the company’s commitments to address the regulatory body’s concerns.
Amgen continues to state that there are no competitive overlaps between the companies. Furthermore, the company has no incentives to bundle Amgen’s drugs with Horizon’s.
Is AMGN a Buy or a Trade?
AMGN stock rose about 1% after the earnings report, but investors always ask about the direction the stock will take after the earnings report.
Heading into the earnings report, the put/call ratio for AMGN stock was 0.75%, suggesting slightly bullish sentiment. The heaviest call volume was on a price of around $240, which is 4% higher than the price as of the market close on August 3. The heaviest put volume was on a price of $225 which is 2% lower than the August 3 closing price of $230.70.
That suggests that there isn’t much conviction for Amgen in either direction. The Amgen analyst ratings on MarketBeat reflect that. The analysts give the stock a consensus Hold rating with a price target of $249.12, approximately 8% higher than the closing price on earnings day.
But while AMGN stock may not be an exciting trade, buy-and-hold investors may be able to add to their position. And even if they don’t, the stock rewards you for holding with a dividend that has increased by 60% in the last two years. It has a 3.69% yield and has increased for 11 consecutive years.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That’s one reason AbbVie Inc. (NASDAQ: ABBV) has struggled in 2023. The company attributed the revenue beat to an 11% growth in volume which helped offset a 2% decline in net selling prices and slightly lower inventory levels. Another concern is that the company did not have positive news in its dispute with the Federal Trade Commission (FTC) over its proposed $28 billion acquisition of Horizon Therapeutics (NASDAQ: HZNP). | That’s one reason AbbVie Inc. (NASDAQ: ABBV) has struggled in 2023. Amgen Inc. (NASDAQ: AMGN) delivered a solid earnings report after the market closed on August 3. But heading into earnings, analyst sentiment suggests that all the growth may already be priced into the biopharmaceutical company’s stock. | That’s one reason AbbVie Inc. (NASDAQ: ABBV) has struggled in 2023. Amgen Inc. (NASDAQ: AMGN) delivered a solid earnings report after the market closed on August 3. But heading into earnings, analyst sentiment suggests that all the growth may already be priced into the biopharmaceutical company’s stock. | That’s one reason AbbVie Inc. (NASDAQ: ABBV) has struggled in 2023. Amgen Inc. (NASDAQ: AMGN) delivered a solid earnings report after the market closed on August 3. The revenue number was higher than in the same quarter last year. |
22295.0 | 2023-08-04 00:00:00 UTC | Amgen (AMGN) Q2 Earnings Beat Estimates, 2023 View Raised | ABBV | https://www.nasdaq.com/articles/amgen-amgn-q2-earnings-beat-estimates-2023-view-raised | nan | nan | Amgen AMGN reported second-quarter 2023 earnings of $5.00 per share, which beat the Zacks Consensus Estimate of $4.44. Earnings rose 8% year over year due to higher revenues, which were offset by higher operating costs.
Total revenues of $6.99 billion beat the Zacks Consensus Estimate of $6.63 billion. Total revenues rose 6% year over year driven by higher product sales.
Total product revenues increased 6% from the year-ago quarter to $6.68 billion (U.S.: $4.74 billion; ex-U.S.: $1.95 billion). Higher volumes were offset by lower selling prices of several drugs. Volumes rose 11% in the quarter, offset by a 2% lower net selling price. Foreign exchange movement hurt sales by 1% in the quarter.
Other revenues were $303 million in the quarter, down 3.2% year over year.
Performance of Key Drugs
General Medicine
Prolia revenues came in at $1.03 billion, up 11% from the year-ago quarter, driven by volume growth. Prolia sales beat the Zacks Consensus Estimate of $974 million as well as our model estimate of $962.6 million.
Evenity recorded sales of $281 million in the quarter, up 47% year over year, driven by strong volume growth both in and outside the United States. Evenity sales beat the Zacks Consensus Estimate of $262 million as well as our model estimate of $242.5 million.
Repatha generated revenues of $424 million, up 30% year over year, as higher volume was partially offset by lower prices. Repatha sales beat the Zacks Consensus Estimate of $382 million as well as our model estimate of $366.2 million.
Aimovig recorded sales of $82 million in the quarter, down 11% year over year due to lower net selling price.
Hematology-Oncology
Xgeva delivered revenues of $530 million, down 1% from the year-ago quarter due to unfavorable changes to estimated sales deductions and lower inventory levels. Xgeva sales were in line with the Zacks Consensus Estimate.
Kyprolis recorded sales of $346 million, up 9% year over year, driven by volume growth, which was partially offset by a lower net selling price. Increased new patient share in the second-line setting pushed up volumes in the quarter.
Vectibix revenues came in at $248 million, up 20% year over year, driven by volume growth. Nplate sales rose 9% to $310 million, driven by volume growth. Blincyto sales increased 48% from the year-ago period to $206 million.
Amgen’s newly approved drug, Lumakras/ Lumykras recorded sales of $77 million in the quarter compared with $74 million in the previous quarter. Lumakras/ Lumykras volumes rose 20% in the quarter. The benefit of higher volumes was offset by lower net selling price and inventory levels. Lumakras/Lumykras sales missed the Zacks Consensus Estimate of $88.0 million as well as our model estimate of $89.0 million.
In oncology biosimilars, sales of Kanjinti (Amgen’s biosimilar of Roche’s Herceptin) were $50 million, down 41% year over year due to lower pricing and volumes as a result of increased competition.
Sales of Mvasi (biosimilar of Roche’s Avastin) were $197 million in the quarter, down 19% year over year due to declines in net selling price.
Inflammation
Sales of Otezla were $600 million in the quarter, up 1%, driven by volume growth. Otezla sales in the United States were hurt by free drug programs launched by new competitors, with the impact expected to continue throughout 2023. Otezla sales beat the Zacks Consensus Estimate of $587 as well as our estimate of $590.3 million.
Enbrel revenues of $1.07 billion rose 2% year over year due to higher prices and the favorable impact of changes to estimated sales deductions, which offset the impact of lower inventory levels. Enbrel sales beat the Zacks Consensus Estimate of $868.0 million as well as our estimate of $797.3 million. Improved payer coverage led to some better volume growth in the second quarter.
Newly approved asthma drug, Tezspire (tezepelumab) recorded sales of $133 million in the quarter, up 39% sequentially, driven by volume growth. Tezspire volumes benefited from the launch of a self-administered, pre-filled, single-use pen formulation of the drug in the first quarter. which improves patient convenience and accessibility and also provides more flexibility in treatment options.
Amgen has a partnership with AstraZeneca AZN for Tezspire. Amgen and AstraZeneca share costs and profits equally after AstraZeneca’s payment of a mid-single-digit inventor royalty to Amgen. While AstraZeneca leads development, Amgen leads manufacturing.
Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $150 million in the quarter, up 29% year over year.
Second-quarter sales of Amjevita, as expected, were lower than first-quarter sales of $164 million due to inventory drawdowns after stocking to support the biosimilar’s launch in the first quarter. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Amgen already markets a biosimilar of AbbVie’s Humira, Amgevita, in the United States.
Also, several more biosimilar versions of AbbVie’s Humira were launched in July, which can hurt Amjevita sales going forward.
New drug Tavneos generated $30 million in sales in the second quarter compared with $23 million in the previous quarter. The drug’s 30% sequential growth was driven by new patient volume growth. Tavneos, approved for the treatment of patients with ANCA-associated vasculitis, a serious systemic autoimmune disease, was added to Amgen’s portfolio with the 2022 acquisition of ChemoCentryx.
Established Products
Total sales of established products, which include Epogen, Aranesp, Parsabiv and Neulasta, decreased 17% year over year in the second quarter.
Operating Margins Decline
Adjusted operating margin declined 0.5 percentage points to 52.6% in the quarter. Adjusted operating expenses increased 7% to $3.47 billion due to higher cost of goods sold and R&D costs.
R&D expenses rose 7% year over year to $1.09 billion due to higher investments behind late-stage pipeline candidates. SG&A spending declined 6% to $1.24 billion due to lower marketing costs.
2023 Guidance Raised
Amgen slightly raised its previously issued revenue and earnings guidance for 2023.
Revenues are expected in the range of $26.6 billion to $27.4 billion, up from the previous expectation of $26.2 billion to $27.3 billion. The Zacks Consensus Estimate is pegged at $26.96 billion.
Adjusted earnings are expected in the range of $17.80 to $18.80, up from the prior expectations of $17.60 to $18.70 per share. The Zacks Consensus Estimate is pegged at $17.54 per share.
However, third-quarter revenues and adjusted earnings are expected to be lower than the second quarter.
Adjusted R&D costs are expected to increase 5% year over year from the 2022 level versus the prior expectation of 3% to 4%. S&A spending is expected to decrease slightly year over year, driven by productivity improvements (maintained). Total operating expenses are expected to increase around 3% versus the prior expectation of 1% versus the 2022 level. Amgen expects operating margin as a percentage of product sales to be roughly 50% in 2023.
The adjusted tax rate is expected to be in the range of 17.5% to 18.5% (previously 18.0%-19.0%), while capital expenditures are expected to be approximately $925 million. The company expects to buy back shares worth not more than $500 million in 2023.
The 2023 guidance excludes any contribution from the pending acquisition of Horizon Therapeutics HZNP.
In December 2022, Amgen announced a definitive agreement to acquire Horizon Therapeutics for $116.5 per share in cash or $27.8 billion. In May, the Federal Trade Commission (“FTC”) filed a lawsuit in Federal Court to halt the buyout deal.
Per the FTC, if the acquisition is allowed to go through, a large-cap giant like Amgen could leverage its position with insurance companies and pharmacy benefit managers to entrench the monopoly positions for two of Horizon's key products — Tepezza (approved for treating thyroid eye disease) and Krystexxa (approved for treating chronic refractory gout). Per the agency, the drugs currently face little to no competition in the market and are sold at very high prices to patients. Along with the second-quarter earnings release, Amgen said it expects the acquisition to be closed in December 2023.
Pipeline Update
Along with the earnings release, Amgen announced positive data from a potentially registrational phase II study on its pipeline candidate tarlatamab in patients with relapsed or refractory small cell lung cancer who had failed two or more prior lines of treatment. Data from the DeLLphi-301 study showed that treatment with tarlatamab, a first-in-class DLL3 targeting BiTE molecule, led to a better objective response rate, the study’s primary endpoint, than that seen in earlier phase I study. Responses were durable and longer than that seen with standard-of-care chemotherapy. Amgen plans to discuss this data with the FDA to seek approval of the drug.
Our Take
Amgen’s second-quarter results were strong as it beat estimates for both earnings and sales. The company witnessed robust volume growth across all its three therapeutic areas, general medicine, inflammation and hematology-oncology portfolios. Sales of most key drugs like Prolia, Repatha, Evenity and Otezla topped expectations. Two of its newest medicines, Tezspire and Tavneos, once again achieved sequential growth in the quarter. It raised its earnings and sales guidance for the year as prescription trends and demand for its products are improving.
The stock was up 1.3% in after-hours trading. Amgen’s stock has declined 12.1% so far this year compared with a decline of 12.9% for the industry.
Image Source: Zacks Investment Research
In 2023, Amgen expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel and lower COVID-19 antibody revenues. Amgen also expects a declining net selling price in 2023. The addition of Horizon Therapeutics, if successfully closed, will enhance Amgen’s growth prospects.
Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity.
Amgen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amgen Inc. Price, Consensus and EPS Surprise
Amgen Inc. price-consensus-eps-surprise-chart | Amgen Inc. Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $150 million in the quarter, up 29% year over year. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Amgen already markets a biosimilar of AbbVie’s Humira, Amgevita, in the United States. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $150 million in the quarter, up 29% year over year. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. | Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $150 million in the quarter, up 29% year over year. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Amgen already markets a biosimilar of AbbVie’s Humira, Amgevita, in the United States. | Amjevita/Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $150 million in the quarter, up 29% year over year. Amgen launched Amjevita in the United States at a 55% lower list price than the current price set by AbbVie for Humira in February. Amgen already markets a biosimilar of AbbVie’s Humira, Amgevita, in the United States. |
22296.0 | 2023-08-04 00:00:00 UTC | 3 High Yield Dividend Stocks To Watch In August 2023 | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-watch-in-august-2023 | nan | nan | Dividends are a portion of a company’s earnings directly distributed to its shareholders, usually in the form of cash or additional shares. They’re essentially a way for companies to distribute a piece of their profitability back to those who own their stock, allowing shareholders to benefit from the company’s success beyond just the potential appreciation of the stock price. Many mature and stable companies, particularly in sectors like utilities, consumer staples, and telecommunications, tend to offer regular dividends, providing a steady stream of income to their shareholders.
Investing in dividend stocks can be a highly effective strategy for multiple types of investors. For income-focused investors, such as retirees, dividends provide a predictable income stream, often more reliable than potentially volatile market price movements. Meanwhile, growth-oriented investors may also favor dividend stocks, as reinvesting these dividends can significantly enhance long-term returns through the power of compounding.
In essence, dividend stocks can offer a balance of growth and income, making them a valuable component of a diversified investment portfolio. However, as with any investment, dividend stocks come with their own set of risks and must be chosen and managed judiciously. Keeping this in mind, here are three high-yield dividend stocks to watch in the stock market now.
High Yield Dividend Stocks To Watch Right Now
AbbVie Inc. (NYSE: ABBV)
Chevron Corporation (NYSE: CVX)
Exxon Mobil Corporation (NYSE: XOM)
AbbVie (ABBV Stock)
AbbVie Inc. (ABBV) is a biopharmaceutical company. The company is research-oriented and targets four main therapeutic fields: neuroscience, virology, oncology, and immunology. Today, ABBV offers shareholders an annual dividend yield of 3.97%.
At the end of July, AbbVie reported a beat for its second quarter of 2023 financial results. In detail, the company posted earnings of $2.91 per share and revenue of $13.87 billion for Q2 2023. This is versus estimates of an EPS of $2.79 on revenue estimates of $13.50 billion.
Over the last month of trading, shares of ABBV stock have rebounded by 8.31%. Meanwhile, on Friday morning, ABBV stock is trading at $150.15 a share.
[Read More] Top Stocks To Buy Now? 3 Tech Stocks For Your List
Chevron (CVX Stock)
Next, Chevron Corporation (CVX) is one of the largest integrated energy companies. The corporation’s operations span the full breadth of the energy sector, including oil production, refining, marketing, and distribution. Currently, CVX has an annual dividend yield of 3.78%.
In late July, Chevron announced its second quarter 2023 financial results. Diving in, the company reported earnings of $3.08 per share with revenue of $48.90 billion. This is compared to Wall Street’s consensus estimates for the quarter which were earnings of $2.95 per share and revenue of $48.98 billion.
Moreover, looking at the last month of trading action, the shares of Chevron stock have advanced by 3.08%. While, during Friday morning’s trading session, CVX stock is trading at $161.12 a share.
[Read More] What Stocks To Buy Today? 2 Dow Jones Industrial Average Stocks To Watch
Exxon Mobil (XOM Stock)
Lastly, ExxonMobil (XOM) is an integrated oil and gas company that explores, produces, and refines oil globally. As of today, XOM has an annual dividend yield of 3.40%.
Also, late last month, ExxonMobil announced its Q2 2023 financial results. Getting straight into it, the company posted earnings of $1.94 per share, with revenue of $82.91 billion for the second quarter of 2023. This is versus analysts’ consensus estimates for the quarter of $2.00 per share, with revenue of $81.10 billion.
Over the last month of trading, shares of XOM stock are up by 1.14%. While during Friday morning’s trading session, ExxonMobil is trading at $108.06 per share.
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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 Yield Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Exxon Mobil Corporation (NYSE: XOM) AbbVie (ABBV Stock) AbbVie Inc. (ABBV) is a biopharmaceutical company. Today, ABBV offers shareholders an annual dividend yield of 3.97%. At the end of July, AbbVie reported a beat for its second quarter of 2023 financial results. | High Yield Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Exxon Mobil Corporation (NYSE: XOM) AbbVie (ABBV Stock) AbbVie Inc. (ABBV) is a biopharmaceutical company. Today, ABBV offers shareholders an annual dividend yield of 3.97%. At the end of July, AbbVie reported a beat for its second quarter of 2023 financial results. | High Yield Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Exxon Mobil Corporation (NYSE: XOM) AbbVie (ABBV Stock) AbbVie Inc. (ABBV) is a biopharmaceutical company. Today, ABBV offers shareholders an annual dividend yield of 3.97%. At the end of July, AbbVie reported a beat for its second quarter of 2023 financial results. | High Yield Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Exxon Mobil Corporation (NYSE: XOM) AbbVie (ABBV Stock) AbbVie Inc. (ABBV) is a biopharmaceutical company. Today, ABBV offers shareholders an annual dividend yield of 3.97%. At the end of July, AbbVie reported a beat for its second quarter of 2023 financial results. |
22297.0 | 2023-08-04 00:00:00 UTC | Is AbbVie Stock a Buy for Income Investors? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-a-buy-for-income-investors | nan | nan | There are very few constants in life. But bills coming in on a routine basis is one of them. This is what makes income investing an appealing strategy for investors to generate the cash flow necessary to fund their lifestyles.
However, not all income stocks are created equal. Yield-focused investors are arguably best off picking companies with decades of dividend growth under their belt. Counting its time as a division of Abbott Laboratories, AbbVie (NYSE: ABBV) has 51 successive years of dividend growth to its name. But should income investors buy this Dividend King? Let's take a closer look at AbbVie's fundamentals and valuation to see if an answer can be found.
AbbVie has what it takes to bounce back
AbbVie's countless medicines are prescribed by healthcare professionals to treat over 62 million patients each year. They treat a variety of common health conditions, such as cancer, atopic dermatitis, and migraine. Thanks to the breadth of its drug portfolio, it shouldn't come as a surprise that AbbVie sports a $260 billion market capitalization -- the fourth largest among drugmakers.
ABBVIE'S TOP-SELLING DRUGS Q2 2023 NET REVENUE
1. Humira $4.01 billion
2. Skyrizi $1.88 billion
3. Rinvoq $918 million
4. Imbruvica $907 million
5. Botox Therapeutic $748 million
Data source: AbbVie.
The pharmaceutical company recorded $13.9 billion in net revenue during the second quarter ended June 30 -- down 4.9% over the year-ago period. But when taking into consideration the 0.7% foreign currency translation headwind due to the outperformance of the U.S. dollar, net revenue fell by just 4.2% year over year for the quarter.
As an investor, it's always tough to see a decline in revenue. But after years of massive success from a drug, that's just the nature of the beast, especially in the pharmaceutical industry. Biosimilar competition in the U.S. and abroad led Humira's total revenue to retreat by 25.2% in the second quarter. The good news is that due to patient share gains and continued regulatory approvals, popular immunology drugs Skyrizi and Rinvoq both grew net revenue by 50%-plus rates during the quarter. Double-digit net revenue growth from Botox Therapeutic, anti-psychotic drug Vraylar, and cancer therapy Venclexta also helped to mostly offset deteriorating Humira sales.
AbbVie's non-GAAP (adjusted) diluted earnings per share (EPS) decreased by 13.6% over the year-ago period to $2.91 for the second quarter. A reduced revenue base caused the company's non-GAAP net margin to contract by nearly 390 basis points year over year to 37.3% in the quarter. AbbVie's weakened profitability was only partially offset by a lower share count, which is how its adjusted diluted EPS dropped at a faster rate than net revenue during the quarter.
With an eye toward the future, the company should almost certainly revert to growth starting next year. For one, AbbVie's top-selling non-Humira drugs are all growing at healthy rates. Not to mention that the company's recently launched cancer treatment co-owned with Genmab, Epkinly, could be an eventual blockbuster. Finally, there are over 50 other drugs that are in mid to late-stage development. This means that AbbVie will be launching multiple other potentially promising medicines in the next few years.
Image source: Getty Images.
Dividend growth can persist
Compared to the S&P 500 index's 1.5% dividend yield, AbbVie's 4% yield likely stands out to income investors. And with the quarterly dividend per share having been boosted by 54.2% in the past five years, the company is an all-in-one growth play and income play.
AbbVie's dividend payout ratio is positioned to clock in at less than 54% for 2023. Even with Humira's recent challenges, this temporarily elevated payout ratio still leaves the company with the funds needed to invest in business growth, reduce debt, and complete share buybacks. Thus, moderate dividend growth in the mid-single digits annually doesn't seem out of the question moving forward.
Valuation makes AbbVie stock a buy
Having rallied 10% in the past month, share prices of AbbVie aren't as compelling of a value proposition now as they were not long ago. But with a forward price-to-earnings (P/E) ratio of 13.4 coming in just above the drug manufacturers' industry average forward P/E ratio of 13.3, shares remain a solid value for investors seeking growing passive income.
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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. | Counting its time as a division of Abbott Laboratories, AbbVie (NYSE: ABBV) has 51 successive years of dividend growth to its name. Let's take a closer look at AbbVie's fundamentals and valuation to see if an answer can be found. AbbVie has what it takes to bounce back AbbVie's countless medicines are prescribed by healthcare professionals to treat over 62 million patients each year. | Counting its time as a division of Abbott Laboratories, AbbVie (NYSE: ABBV) has 51 successive years of dividend growth to its name. AbbVie's non-GAAP (adjusted) diluted earnings per share (EPS) decreased by 13.6% over the year-ago period to $2.91 for the second quarter. Let's take a closer look at AbbVie's fundamentals and valuation to see if an answer can be found. | AbbVie has what it takes to bounce back AbbVie's countless medicines are prescribed by healthcare professionals to treat over 62 million patients each year. Dividend growth can persist Compared to the S&P 500 index's 1.5% dividend yield, AbbVie's 4% yield likely stands out to income investors. Valuation makes AbbVie stock a buy Having rallied 10% in the past month, share prices of AbbVie aren't as compelling of a value proposition now as they were not long ago. | Counting its time as a division of Abbott Laboratories, AbbVie (NYSE: ABBV) has 51 successive years of dividend growth to its name. Let's take a closer look at AbbVie's fundamentals and valuation to see if an answer can be found. AbbVie has what it takes to bounce back AbbVie's countless medicines are prescribed by healthcare professionals to treat over 62 million patients each year. |
22298.0 | 2023-08-04 00:00:00 UTC | Should You Buy Merck Stock After An Upbeat Q2? | ABBV | https://www.nasdaq.com/articles/should-you-buy-merck-stock-after-an-upbeat-q2-0 | nan | nan | Merck stock (NYSE: MRK), after an 8% fall in a month, underperforming the broader markets, with the S&P500 up 3%, appears to have room for growth. The company posted upbeat Q2 results this week, with solid growth for Keytruda and Gardasil. Merck’s revenues were up 3% to $15.0 billion in Q2’23, compared to the consensus estimate of $14.4 billion. This growth was driven by a 19% rise in Keytruda sales and a stellar 47% rise in Gardasil sales. This can be attributed to continued market share gains for Keytruda and label expansion. Merck’s Covid-19 antiviral treatment – Lagevrio – saw an 83% y-o-y fall in sales. Excluding Lagevrio, the top line expanded by 11%.
The company’s gross margin improved by nearly 200 bps to 73.2% due to a better product mix and lower sales of the low-margin drug – Lagevrio. Merck has seen its operating margin rise from 18.7% in 2019 to 30.3% in 2022. Our Merck Operating Income Comparison dashboard has more details. Merck reported a loss of $2.06 on a per share and adjusted basis in Q2, compared to a profit of $1.87 per share in the prior-year quarter. However, this is due to the company’s one-time charge of $10.2 billion toward the Prometheus acquisition, which will help Merck strengthen its immunology drugs portfolio.
Not only did Merck post upbeat Q2 results, but it also raised its full-year outlook. It now expects its sales to range between $58.6 billion and $59.6 billion and its adjusted EPS to be between $2.95 and $3.05. This can be attributed to strong sales growth for some of its drugs and a healthy margin expansion in recent quarters. We have updated our model to reflect the latest quarterly performance, and we believe that it will likely see sales and earnings toward the higher end of its provided range.
Looking at the stock price, we estimate Merck’s Valuation to be $124 per share, about 18% above the current market price of $105. This represents a 41x P/E multiple based on our earnings forecast of $3.05 on a per-share and adjusted basis for 2023. While this figure optically looks high, it is due to a $4.02 per share charge related to the Prometheus acquisition. If we look at the 2024 earnings, the P/E multiple is only 14x, marginally ahead of its last five-year average of 13x.
Overall, investors will likely be better off buying the dip in Merck stock for solid gains in the long run. Not only will Merck continue to expand its top and bottom line with Keytruda and Gardasil, among other drugs, the recent acquisitions will help it combat the competition from biosimilars and generics for the drugs that have or are about to lose market exclusivity.
While MRK stock can see higher levels, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities that offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Given higher inflation and the Fed raising interest rates, among other factors, Merck stock has seen a 5% fall this year. Can it drop more? See how low Merck stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a portfolio that aims for long-term growth? Here’s a value portfolio that’s done much better than the market since 2016.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return -1% -5% 79%
S&P 500 Return 0% 19% 104%
Trefis Multi-Strategy Portfolio 0% 28% 312%
[1] Month-to-date and year-to-date as of 8/2/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Merck stock (NYSE: MRK), after an 8% fall in a month, underperforming the broader markets, with the S&P500 up 3%, appears to have room for growth. The company’s gross margin improved by nearly 200 bps to 73.2% due to a better product mix and lower sales of the low-margin drug – Lagevrio. However, this is due to the company’s one-time charge of $10.2 billion toward the Prometheus acquisition, which will help Merck strengthen its immunology drugs portfolio. | The company posted upbeat Q2 results this week, with solid growth for Keytruda and Gardasil. Not only will Merck continue to expand its top and bottom line with Keytruda and Gardasil, among other drugs, the recent acquisitions will help it combat the competition from biosimilars and generics for the drugs that have or are about to lose market exclusivity. Total [2] MRK Return -1% -5% 79% S&P 500 Return 0% 19% 104% Trefis Multi-Strategy Portfolio 0% 28% 312% [1] Month-to-date and year-to-date as of 8/2/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the stock price, we estimate Merck’s Valuation to be $124 per share, about 18% above the current market price of $105. Not only will Merck continue to expand its top and bottom line with Keytruda and Gardasil, among other drugs, the recent acquisitions will help it combat the competition from biosimilars and generics for the drugs that have or are about to lose market exclusivity. Total [2] MRK Return -1% -5% 79% S&P 500 Return 0% 19% 104% Trefis Multi-Strategy Portfolio 0% 28% 312% [1] Month-to-date and year-to-date as of 8/2/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, this is due to the company’s one-time charge of $10.2 billion toward the Prometheus acquisition, which will help Merck strengthen its immunology drugs portfolio. Looking at the stock price, we estimate Merck’s Valuation to be $124 per share, about 18% above the current market price of $105. Here’s a value portfolio that’s done much better than the market since 2016. |
22299.0 | 2023-08-03 00:00:00 UTC | Amgen quarterly revenue rises 6%, profit beats Street estimates | ABBV | https://www.nasdaq.com/articles/amgen-quarterly-revenue-rises-6-profit-beats-street-estimates-0 | nan | nan | By Deena Beasley
Aug 3 (Reuters) - Amgen AMGN.O, which is facing U.S. Federal Trade Commission (FTC) delays to its planned acquisition of Horizon Therapeutics HZPN.O, on Thursday reported higher quarterly profit on strong sales of treatments for cholesterol, osteoporosis and other drugs.
The biotech company, which slightly raised its outlook for full-year revenue and profit, said it currently expects the Horizon deal to close by mid-December.
For the second quarter, Amgen reported revenue of $6.99 billion, up 6% from a year earlier, exceeding analysts' estimates of $6.68 billion, according to Refinitiv data.
Earnings, excluding items, rose 8% to $5.00 per share, ahead of analyst estimates of $4.46 per share.
Product sales by volume grew 11% from a year earlier, but net selling prices fell 2%, while foreign exchange rates and lower inventory levels also limited revenue gains, Amgen said.
"We had nine products with record sales in the quarter," Amgen Chief Financial Officer Peter Griffith said in a phone interview.
Quarterly sales of cholesterol drug Repatha totaled $424 million, beating the average analyst estimate of $372 million, while sales of osteoporosis drug Prolia reached $1.03 billion, compared with the $954 million analysts had forecast.
The results show some "bounce back" after a challenging first quarter that had raised investor fears about a slowdown in Amgen's base business, Jefferies analyst Michael Yee said in a research note.
Amgen said U.S. Amjevita sales fell 63% from the first quarter, driven by a drawdown in inventory levels, while sales outside of the U.S. rose 13% from a year earlier.
The California-based company also reported positive results from a mid-stage trial of experimental drug tarlatamab in patients with advanced lung cancer. Amgen said it is discussing with regulators whether the data could be used to seek approval of the drug for patients with relapsed or refractory disease.
For the full year, Amgen modestly raised its outlook for adjusted earnings per share to a range of $17.80 to $18.80 from its prior forecast of $17.40 to $18.60. The company also increased its outlook for 2023 revenue to $26.6 billion to $27.4 billion from $26 billion to $27.2 billion.
Amgen said the forecast does not include any impact from the planned Horizon acquisition.
In a lawsuit, the FTC said it believed Amgen could leverage its big selling drugs to pressure insurance companies and pharmacy benefit managers to favor Horizon's two key products - thyroid eye disease treatment Tepezza and gout drug Krystexxa - over potential competitors.
"We look forward to making our case in court in September," the CFO said.
Amgen shares were up about half a percentage point at $232 after hours.
(Reporting by Deena Beasley Editing by Bill Berkrot)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Deena Beasley Aug 3 (Reuters) - Amgen AMGN.O, which is facing U.S. Federal Trade Commission (FTC) delays to its planned acquisition of Horizon Therapeutics HZPN.O, on Thursday reported higher quarterly profit on strong sales of treatments for cholesterol, osteoporosis and other drugs. Product sales by volume grew 11% from a year earlier, but net selling prices fell 2%, while foreign exchange rates and lower inventory levels also limited revenue gains, Amgen said. The results show some "bounce back" after a challenging first quarter that had raised investor fears about a slowdown in Amgen's base business, Jefferies analyst Michael Yee said in a research note. | By Deena Beasley Aug 3 (Reuters) - Amgen AMGN.O, which is facing U.S. Federal Trade Commission (FTC) delays to its planned acquisition of Horizon Therapeutics HZPN.O, on Thursday reported higher quarterly profit on strong sales of treatments for cholesterol, osteoporosis and other drugs. For the second quarter, Amgen reported revenue of $6.99 billion, up 6% from a year earlier, exceeding analysts' estimates of $6.68 billion, according to Refinitiv data. Quarterly sales of cholesterol drug Repatha totaled $424 million, beating the average analyst estimate of $372 million, while sales of osteoporosis drug Prolia reached $1.03 billion, compared with the $954 million analysts had forecast. | By Deena Beasley Aug 3 (Reuters) - Amgen AMGN.O, which is facing U.S. Federal Trade Commission (FTC) delays to its planned acquisition of Horizon Therapeutics HZPN.O, on Thursday reported higher quarterly profit on strong sales of treatments for cholesterol, osteoporosis and other drugs. For the second quarter, Amgen reported revenue of $6.99 billion, up 6% from a year earlier, exceeding analysts' estimates of $6.68 billion, according to Refinitiv data. Quarterly sales of cholesterol drug Repatha totaled $424 million, beating the average analyst estimate of $372 million, while sales of osteoporosis drug Prolia reached $1.03 billion, compared with the $954 million analysts had forecast. | By Deena Beasley Aug 3 (Reuters) - Amgen AMGN.O, which is facing U.S. Federal Trade Commission (FTC) delays to its planned acquisition of Horizon Therapeutics HZPN.O, on Thursday reported higher quarterly profit on strong sales of treatments for cholesterol, osteoporosis and other drugs. For the second quarter, Amgen reported revenue of $6.99 billion, up 6% from a year earlier, exceeding analysts' estimates of $6.68 billion, according to Refinitiv data. Earnings, excluding items, rose 8% to $5.00 per share, ahead of analyst estimates of $4.46 per share. |
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