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22400.0 | 2023-07-07 00:00:00 UTC | Why Dividend Stocks Should Be a Key Part of Your Retirement Plan | ABBV | https://www.nasdaq.com/articles/why-dividend-stocks-should-be-a-key-part-of-your-retirement-plan | nan | nan | Americans believe they need to save $1.3 million for retirement, according to a recent study by Northwestern Mutual. In most cases, people are well short of that goal and it may simply not be attainable.
But one way that you can bolster your financial situation is by investing in dividend stocks. Here's why they should be part of your retirement plan and why they can alleviate some of the financial burdens later on in life.
Dividend stocks keep the money coming in
If you're pulling money out of savings, that money is gone and so is its ability to generate income for your portfolio. If you invest in dividend stocks, however, you can simply withdraw the money that those investments bring in for you every quarter. If your original investment remains unchanged, you'll still continue to generate the same level of income next quarter -- assuming, of course, that there is no change to the dividend payments.
The main drawback is that dividend income will be just a small percentage of your investment. But if by retirement you have hundreds of thousands of dollars saved up, you can spread that across many different dividend stocks or exchange-traded funds. Here's an overview of how much dividend income you could generate annually from dividend stocks based on the size of the investment and the average yield you collect from all of your stocks:
ANNUAL DIVIDEND INCOME BASED ON YIELD AND INVESTMENT SIZE
Investment 1% 2% 3% 4% 5%
$100,000 $1,000 $2,000 $3,000 $4,000 $5,000
$200,000 $2,000 $4,000 $6,000 $8,000 $10,000
$300,000 $3,000 $6,000 $9,000 $12,000 $15,000
$400,000 $4,000 $8,000 $12,000 $16,000 $20,000
$500,000 $5,000 $10,000 $15,000 $20,000 $25,000
$600,000 $6,000 $12,000 $18,000 $24,000 $30,000
$700,000 $7,000 $14,000 $21,000 $28,000 $35,000
$800,000 $8,000 $16,000 $24,000 $32,000 $40,000
$900,000 $9,000 $18,000 $27,000 $36,000 $45,000
$1,000,000 $10,000 $20,000 $30,000 $40,000 $50,000
Table by author.
While you may not want to put all your retirement money in dividend stocks, even allocating a portion of your total savings can help supplement your income without depleting your nest egg. And the good news is there are many good dividend stocks that offer high yields and that aren't risky investments.
Three high-yielding dividend options
Healthcare is a good sector for finding some solid high-yielding investments. Consider the following stocks as examples, all of which offer yields in excess of 4%.
CareTrust -- 5.7%
CareTrust REIT (NYSE: CTRE) is a real estate investment trust (REIT) that collects rent from healthcare facilities. Its major tenants include skilled nursing facilities and assisted living facilities. They make up 88% of its portfolio.
The REIT makes for a relatively stable investment. For the first three months of 2023, CareTrust reported that it collected over 96% of its contractual rent, and based on its funds available for distribution, its payout ratio was 76%. That suggests the yield is in good shape and it should remain that way given the ongoing need for these types of facilities in the future.
Viatris -- 4.9%
Generic and branded drugmaker Viatris (NASDAQ: VTRS) also pays a fairly high yield of 4.9%. Its products are broad, with the company having more than 20 globally recognized brands in its portfolio, including Lipitor, Viagra, and Lyrica. Viatris makes medicines for a wide range of therapeutic areas, such as eye care, oncology, immunology, gastroenterology, and many others. That diversity should make the business a stable one to invest in.
Over the trailing 12 months, Viatris has generated free cash flow totaling $2.5 billion, which is more than 4 times what it has paid out in dividends during that stretch -- $582 million.
AbbVie -- 4.4%
AbbVie (NYSE: ABBV) offers the lowest yield on this list at 4.4% but it has also been increasing its payouts for more than 50 years, making it a Dividend King. This includes the time when it was part of Abbott Laboratories (AbbVie spun off in 2013).
AbbVie's business relies heavily on a handful of drugs, with Humira being a key part of its lineup for years. Although Humira has begun losing patent protection, management believes Skyrizi and Rinvoq can replace it in the future.
And with AbbVie's acquisition of Botox maker Allergan in 2020, the company has a growing aesthetics business that gives it even more opportunities to pursue down the road. When in doubt, its cash flow can come to the rescue. AbbVie has reported more than $24 billion in free cash flow over the past four quarters, which is double the cost of its dividend payments ($10 billion).
These are just examples of three quality healthcare stocks that income investors can consider buying and holding for the long haul, or holding in retirement for some stable dividend income, but there are many other options investors can pursue and to help improve their financial situation in retirement.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends 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. | AbbVie -- 4.4% AbbVie (NYSE: ABBV) offers the lowest yield on this list at 4.4% but it has also been increasing its payouts for more than 50 years, making it a Dividend King. This includes the time when it was part of Abbott Laboratories (AbbVie spun off in 2013). AbbVie's business relies heavily on a handful of drugs, with Humira being a key part of its lineup for years. | AbbVie -- 4.4% AbbVie (NYSE: ABBV) offers the lowest yield on this list at 4.4% but it has also been increasing its payouts for more than 50 years, making it a Dividend King. This includes the time when it was part of Abbott Laboratories (AbbVie spun off in 2013). AbbVie's business relies heavily on a handful of drugs, with Humira being a key part of its lineup for years. | AbbVie -- 4.4% AbbVie (NYSE: ABBV) offers the lowest yield on this list at 4.4% but it has also been increasing its payouts for more than 50 years, making it a Dividend King. This includes the time when it was part of Abbott Laboratories (AbbVie spun off in 2013). AbbVie's business relies heavily on a handful of drugs, with Humira being a key part of its lineup for years. | AbbVie -- 4.4% AbbVie (NYSE: ABBV) offers the lowest yield on this list at 4.4% but it has also been increasing its payouts for more than 50 years, making it a Dividend King. This includes the time when it was part of Abbott Laboratories (AbbVie spun off in 2013). AbbVie's business relies heavily on a handful of drugs, with Humira being a key part of its lineup for years. |
22401.0 | 2023-07-07 00:00:00 UTC | The 3 Best Dividend Stocks to Buy in July | ABBV | https://www.nasdaq.com/articles/the-3-best-dividend-stocks-to-buy-in-july | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend stocks continue to be highly sought after, especially among investors who seek to generate income. Retirees appreciate the regular payments provided by stocks that offer dividends to their shareholders. That said, not all stocks pay dividends, and not all dividend payments are equal. Some dividends are more generous than others, and investors seeking to maximize their income need to pay attention to the yield offered on the dividend stocks to buy this July.
Keep in mind that the average dividend yield among stocks listed in the benchmark Standards and Practices 500 index is currently 1.56%. Anything above that figure can be considered good, though some dividend stocks pay double, even triple, the average yield. In a perfect world, investors will ferret out stocks of reliable blue-chip companies that pay above average dividends on a quarterly basis. Here are the three best dividend stocks to buy in July.
Ford Motor Co. (F)
Source: JuliusKielaitis / Shutterstock.com
Detroit automaker Ford Motor Co. (NYSE:F) is seeing its stock gain momentum. Since mid-May, F stock has risen 36%. The upswing comes as the company demonstrates that its transition to electric vehicles is gaining traction, and after it struck a deal with Tesla (NASDAQ:TSLA) to use its fast-charging stations across North America. In addition to the share price appreciation, shareholders of Ford also benefit from a quarterly dividend payment of 15 cents a share, which represents a yield of nearly 4%.
Earlier this year, Ford paid shareholders a special one-time dividend of 65 cents a share. The special dividend, which was paid on March 1, seemed to be Ford’s way of rewarding shareholders for their patience as the company shifts to battery-powered cars, trucks and SUVs. While the dividend payments are nice, Ford stock is also reasonably valued, trading at 21 times future earnings estimates. With the company’s $50 billion investment in electric vehicles starting to bear fruit, the sky appears to be the limit for this stock.
Verizon (VZ)
Source: Ken Wolter / Shutterstock.com
Wireless internet provider Verizon (NYSE:VZ) pays an incredibly strong dividend that currently yields 7% or 65 cents a share each quarter. The hefty dividend is, in part, to attract and retain shareholders who might otherwise steer clear of VZ stock due to its subpar performance across many years. So far this year, Verizon’s share price has declined 7%. Throughout the last five years, the stock is down nearly 30%. While disappointing, Verizon has prioritized its dividend, spending $2.75 billion quarterly on the payout, which is good for investors seeking income.
Trading at a forward earnings multiple of only seven, VZ stock also looks cheap, even undervalued, at current levels. Verizon has struggled with intense competition in the wireless internet space, a slumping customer base, and heavy spending to upgrade its network to the latest fifth generation (5G) wireless technology. On a positive note, Verizon is in the process of changing its senior management team and the transition to 5G internet has made substantial progress in recent quarters.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Among pharmaceutical stocks, AbbVie (NYSE:ABBV) pays one of the best dividends around. The company behind blockbuster drug Humira currently pays a $1.48 per share dividend, which is good for a yield of 4.32%. Owing to Humira coming off patent and now being replicated by generic drugmakers, ABBV stock has been in a funk lately, declining 16% on the year. However, this presents a nice buy the dip opportunity for long-term investors who would appreciate the stock’s quarterly payment.
The share price decrease has also made ABBV stock more affordable, lowering its price-earnings ratio to a more manageable 32. The stock is also near its 52-week low, setting up a nice entry point for investors to take a position. While the loss of exclusivity with Humira is a concern, AbbVie has other medications that continue to sell well for it, including rheumatoid arthritis medication RINVOQ and Lexapro to treat anxiety and depression. The company also has a robust pipeline of potentially new medications that are at various stages of approval. Whether you choose one or all of these, you can’t go wrong with any of these dividend stocks to buy this July.
On the date of publication, Joel Baglole 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.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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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 Among pharmaceutical stocks, AbbVie (NYSE:ABBV) pays one of the best dividends around. Owing to Humira coming off patent and now being replicated by generic drugmakers, ABBV stock has been in a funk lately, declining 16% on the year. The share price decrease has also made ABBV stock more affordable, lowering its price-earnings ratio to a more manageable 32. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among pharmaceutical stocks, AbbVie (NYSE:ABBV) pays one of the best dividends around. Owing to Humira coming off patent and now being replicated by generic drugmakers, ABBV stock has been in a funk lately, declining 16% on the year. The share price decrease has also made ABBV stock more affordable, lowering its price-earnings ratio to a more manageable 32. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among pharmaceutical stocks, AbbVie (NYSE:ABBV) pays one of the best dividends around. Owing to Humira coming off patent and now being replicated by generic drugmakers, ABBV stock has been in a funk lately, declining 16% on the year. The share price decrease has also made ABBV stock more affordable, lowering its price-earnings ratio to a more manageable 32. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among pharmaceutical stocks, AbbVie (NYSE:ABBV) pays one of the best dividends around. Owing to Humira coming off patent and now being replicated by generic drugmakers, ABBV stock has been in a funk lately, declining 16% on the year. The share price decrease has also made ABBV stock more affordable, lowering its price-earnings ratio to a more manageable 32. |
22402.0 | 2023-07-06 00:00:00 UTC | Is AbbVie's Dividend Yield Safe? | ABBV | https://www.nasdaq.com/articles/is-abbvies-dividend-yield-safe | nan | nan | AbbVie (NYSE: ABBV) is a leading pharmaceutical company that rewards its shareholders with a generous dividend policy. The company has a history of increasing its dividends for more than 50 years in a row, earning it the status of Dividend King. AbbVie also sports one of the highest dividend yields within its peer group. Presently, the drugmaker's annualized yield stands at a noteworthy 4.3%.
However, AbbVie is facing some significant headwinds. The company's flagship product, Humira, which treats various inflammatory conditions, lost patent protection in the U.S. earlier this year. Humira was responsible for 28% of AbbVie's revenue in the first quarter of 2023. It has also been a strong contributor to the company's free cash flows over the years due to its high price and ever-expanding utility within the sizable immunology market.
Image source: Getty Images.
As Humira faces biosimilar competition, can AbbVie maintain its attractive dividend? Let's dig deeper to find out.
A look at AbbVie's dividend prospects
Normally, dividends are paid out of a company's cash flow. Hence, it's important for income investors to have a handle on whether a business is generating enough free cash flow to cover dividend payments.
In the first quarter of 2023, AbbVie distributed about $2.7 billion in dividends to its shareholders. The pharmaceutical giant also produced around $4.2 billion in cash flows from its operations during the same period. Based on these quarterly numbers, AbbVie's dividend seems to be secure.
However, Wall Street is bracing for Humira's sales decline to accelerate in the coming quarters, as more biosimilars enter the U.S. market later this year. Although it is difficult to estimate the exact impact of this challenge on AbbVie's financial performance, the company is likely to experience a decline of at least 16.5% in net operating free cash flows compared to the previous year.
Currently, AbbVie plans to pay out about $10.6 billion in dividends to its shareholders this year, unless there are any changes to the program. Net operating free cash flow is tracking to come in at around $20.7 billion for the full year in 2023. Considering these ballpark financial projections, AbbVie's dividend should be stable in the short term, despite the patent expiration of Humira.
Moreover, AbbVie's top line might recover in 2024, as newer immunology drugs like Skyrizi and Rinvoq gain market share. This fact bodes well for AbbVie's dividend program in the near term. In the long term, the company expects to return to high-single-digit revenue growth as soon as 2025, which should enable it to continue paying a top-tier dividend for the rest of the decade.
An important caveat
One underappreciated aspect of this story that arguably deserves more attention from shareholders is the fact that Humira is not the only source of pressure for AbbVie's business. The company also faces considerable challenges in its hematology and medical aesthetics segments, which could force it to look for an expensive acquisition in the near future.
AbbVie has enough financial flexibility to pursue deals that are below $10 billion, without compromising its balance sheet. However, the number of attractive targets in this price range is limited, and none of them would provide a significant boost to its revenue stream.
To climb to the next rung of the value ladder, AbbVie would probably have to be willing to spend $20 billion or more on business development. A deal of that size would have to be financed partly by free cash flows, which might pose a risk to the company's dividend program.
The silver lining is that management seems confident that it has the right strategy and assets to overcome the loss of Humira revenue in both the short and long terms. Hence, a thesis-altering business development deal may not be necessary.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although it is difficult to estimate the exact impact of this challenge on AbbVie's financial performance, the company is likely to experience a decline of at least 16.5% in net operating free cash flows compared to the previous year. An important caveat One underappreciated aspect of this story that arguably deserves more attention from shareholders is the fact that Humira is not the only source of pressure for AbbVie's business. AbbVie (NYSE: ABBV) is a leading pharmaceutical company that rewards its shareholders with a generous dividend policy. | Based on these quarterly numbers, AbbVie's dividend seems to be secure. Although it is difficult to estimate the exact impact of this challenge on AbbVie's financial performance, the company is likely to experience a decline of at least 16.5% in net operating free cash flows compared to the previous year. AbbVie (NYSE: ABBV) is a leading pharmaceutical company that rewards its shareholders with a generous dividend policy. | A look at AbbVie's dividend prospects Normally, dividends are paid out of a company's cash flow. Although it is difficult to estimate the exact impact of this challenge on AbbVie's financial performance, the company is likely to experience a decline of at least 16.5% in net operating free cash flows compared to the previous year. Currently, AbbVie plans to pay out about $10.6 billion in dividends to its shareholders this year, unless there are any changes to the program. | Humira was responsible for 28% of AbbVie's revenue in the first quarter of 2023. A look at AbbVie's dividend prospects Normally, dividends are paid out of a company's cash flow. Currently, AbbVie plans to pay out about $10.6 billion in dividends to its shareholders this year, unless there are any changes to the program. |
22403.0 | 2023-07-06 00:00:00 UTC | AbbVie trims full-year profit forecast on higher R&D expenses | ABBV | https://www.nasdaq.com/articles/abbvie-trims-full-year-profit-forecast-on-higher-rd-expenses | nan | nan | Adds second quarter forecast in paragraph 5
July 6 (Reuters) - AbbVie Inc ABBV.N cut its full-year profit forecast on Thursday, citing $280 million in milestone and in-process research and development expenses during the second quarter.
The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 it previously expected.
Analysts on average were expecting full-year earnings of $10.97 per share, according to Refinitiv IBES data.
AbbVie also trimmed adjusted profit for the second quarter by $0.15 per share and expects to post adjusted profit of $2.75 to $2.85 per share.
The company is scheduled to report second-quarter results on July 27.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal and Sriraj Kalluvila)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds second quarter forecast in paragraph 5 July 6 (Reuters) - AbbVie Inc ABBV.N cut its full-year profit forecast on Thursday, citing $280 million in milestone and in-process research and development expenses during the second quarter. AbbVie also trimmed adjusted profit for the second quarter by $0.15 per share and expects to post adjusted profit of $2.75 to $2.85 per share. Analysts on average were expecting full-year earnings of $10.97 per share, according to Refinitiv IBES data. | Adds second quarter forecast in paragraph 5 July 6 (Reuters) - AbbVie Inc ABBV.N cut its full-year profit forecast on Thursday, citing $280 million in milestone and in-process research and development expenses during the second quarter. AbbVie also trimmed adjusted profit for the second quarter by $0.15 per share and expects to post adjusted profit of $2.75 to $2.85 per share. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 it previously expected. | Adds second quarter forecast in paragraph 5 July 6 (Reuters) - AbbVie Inc ABBV.N cut its full-year profit forecast on Thursday, citing $280 million in milestone and in-process research and development expenses during the second quarter. AbbVie also trimmed adjusted profit for the second quarter by $0.15 per share and expects to post adjusted profit of $2.75 to $2.85 per share. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 it previously expected. | AbbVie also trimmed adjusted profit for the second quarter by $0.15 per share and expects to post adjusted profit of $2.75 to $2.85 per share. Adds second quarter forecast in paragraph 5 July 6 (Reuters) - AbbVie Inc ABBV.N cut its full-year profit forecast on Thursday, citing $280 million in milestone and in-process research and development expenses during the second quarter. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 it previously expected. |
22404.0 | 2023-07-06 00:00:00 UTC | AbbVie trims full-year profit forecast due to higher R&D expenses | ABBV | https://www.nasdaq.com/articles/abbvie-trims-full-year-profit-forecast-due-to-higher-rd-expenses | nan | nan | July 6 (Reuters) - AbbVie Inc ABBV.N cut full-year profit forecast due to unfavorable impact from R&D and milestone expenses, the drugmaker said on Thursday.
The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 per share it previously expected.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 6 (Reuters) - AbbVie Inc ABBV.N cut full-year profit forecast due to unfavorable impact from R&D and milestone expenses, the drugmaker said on Thursday. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 per share it previously expected. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 6 (Reuters) - AbbVie Inc ABBV.N cut full-year profit forecast due to unfavorable impact from R&D and milestone expenses, the drugmaker said on Thursday. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 per share it previously expected. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 6 (Reuters) - AbbVie Inc ABBV.N cut full-year profit forecast due to unfavorable impact from R&D and milestone expenses, the drugmaker said on Thursday. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 per share it previously expected. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 6 (Reuters) - AbbVie Inc ABBV.N cut full-year profit forecast due to unfavorable impact from R&D and milestone expenses, the drugmaker said on Thursday. The company now expects adjusted profit between $10.57 and $10.97 per share, compared with $10.72 to $11.12 per share it previously expected. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
22405.0 | 2023-07-06 00:00:00 UTC | AbbVie (ABBV) Stock Moves -0.27%: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-moves-0.27%3A-what-you-should-know | nan | nan | AbbVie (ABBV) closed the most recent trading day at $137.25, moving -0.27% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Coming into today, shares of the drugmaker had gained 0.82% in the past month. In that same time, the Medical sector lost 0.35%, while the S&P 500 gained 4.16%.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.93 per share. This would mark a year-over-year decline of 13.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.52 billion, down 7.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.99 per share and revenue of $52.57 billion. These totals would mark changes of -20.19% and -9.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. AbbVie is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 12.52. Its industry sports an average Forward P/E of 14.67, so we one might conclude that AbbVie is trading at a discount comparatively.
We can also see that ABBV currently has a PEG ratio of 2.5. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $137.25, moving -0.27% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.93 per share. | AbbVie (ABBV) closed the most recent trading day at $137.25, moving -0.27% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.93 per share. | AbbVie (ABBV) closed the most recent trading day at $137.25, moving -0.27% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.93 per share. | AbbVie (ABBV) closed the most recent trading day at $137.25, moving -0.27% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.93 per share. |
22406.0 | 2023-07-06 00:00:00 UTC | Got $5,000? These Are 3 of the Best Stocks to Buy in July | ABBV | https://www.nasdaq.com/articles/got-%245000-these-are-3-of-the-best-stocks-to-buy-in-july | nan | nan | If you're looking to invest in the stock market this summer, there are many great options out there to consider. Whether you're after dividends, growth, or simply long-term stability, there are stocks that can help you achieve those goals -- without having to pay a huge premium to do so.
AbbVie (NYSE: ABBV), Verizon Communications (NYSE: VZ), and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) are three terrific stocks that are among the best investments to add to your portfolio this month.
1. AbbVie
A promising healthcare stock for investors to load up on today is AbbVie. The stock trades at only 12 times its estimated future earnings, and investors can get this solid business at a steep discount. The average healthcare stock trades at 18 times forward profits.
Investors are hesitant about the company's future with top-selling drug Humira losing patent protection and the company projecting a 37% drop in sales this year. But with immunology drugs Rinvoq and Skyrizi potentially filling the void for the company over the next several years, such a steep discount may not be warranted for AbbVie's stock.
The company also has an encouraging migraine medication in atogepant, which recently demonstrated positive phase 3 data showing that it was able to help people reduce their number of monthly migraine days. It has the potential to be a blockbuster drug, generating more than $1 billion in revenue at its peak.
AbbVie's business is looking strong, and the company pays an attractive dividend that yields 4.4%. This is a solid stock to buy, as it can appeal to value, growth, and dividend-oriented investors. Investing $5,000 into the stock would give you a great, balanced investment that you can hang on to for the long haul.
2. Verizon Communications
If dividend income is your main priority, then it's hard to go wrong with Verizon. The telecom giant pays an incredibly high yield of 7%. It's also a cheap buy, trading at less than eight times its future earnings. Down 5% this year, the stock has been underwhelming -- but for income investors, what matters is that the business is OK and that the dividend is sustainable. And Verizon is fine on both counts.
For the first three months of the year, the company's operating revenue of $32.9 billion was down less than 2% from the previous year. Its adjusted earnings per share of $1.20 were lower than the $1.35 Verizon reported a year ago, but this comes amid rising costs and as consumers have been tightening up spending. Even with the decline, the payout is well supported -- Verizon pays a quarterly dividend of $0.65, and its payout ratio based on earnings is around 50%.
This isn't a dividend stock that looks to be in any real danger, and although sales aren't skyrocketing right now, Verizon could make for an excellent investment to buy and hold. On a $5,000 investment, it could bring in $350 in annual dividend income.
3. Alphabet
If you're a growth investor, and particularly if you're keen on artificial intelligence (AI), then Alphabet is a stock that should be on your radar. While investors are paying up huge premiums for c3.ai, Palantir Technologies, and even Microsoft, Alphabet stand outs as a possible bargain:
GOOG PS Ratio data by YCharts
Although its AI chatbot Bard didn't wow investors out of the gate, there's loads of room for Alphabet to benefit from AI. This includes AI-powered search and advertisements on YouTube and Google Search, which already help the company generate over $280 billion in annual revenue. Its wearables business, which includes smartwatch maker Fitbit, which Alphabet acquired in 2021, has the potential to open up even more growth opportunities as well.
If you have $5,000 you can afford to invest and don't need a dividend but want exposure to AI, Alphabet is a stock you should consider buying right now.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Palantir Technologies. The Motley Fool recommends C3.ai and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But with immunology drugs Rinvoq and Skyrizi potentially filling the void for the company over the next several years, such a steep discount may not be warranted for AbbVie's stock. AbbVie (NYSE: ABBV), Verizon Communications (NYSE: VZ), and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) are three terrific stocks that are among the best investments to add to your portfolio this month. AbbVie A promising healthcare stock for investors to load up on today is AbbVie. | AbbVie (NYSE: ABBV), Verizon Communications (NYSE: VZ), and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) are three terrific stocks that are among the best investments to add to your portfolio this month. AbbVie A promising healthcare stock for investors to load up on today is AbbVie. But with immunology drugs Rinvoq and Skyrizi potentially filling the void for the company over the next several years, such a steep discount may not be warranted for AbbVie's stock. | AbbVie (NYSE: ABBV), Verizon Communications (NYSE: VZ), and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) are three terrific stocks that are among the best investments to add to your portfolio this month. AbbVie A promising healthcare stock for investors to load up on today is AbbVie. But with immunology drugs Rinvoq and Skyrizi potentially filling the void for the company over the next several years, such a steep discount may not be warranted for AbbVie's stock. | AbbVie's business is looking strong, and the company pays an attractive dividend that yields 4.4%. AbbVie (NYSE: ABBV), Verizon Communications (NYSE: VZ), and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) are three terrific stocks that are among the best investments to add to your portfolio this month. AbbVie A promising healthcare stock for investors to load up on today is AbbVie. |
22407.0 | 2023-07-06 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-7 | 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 +0.8% over the past month versus the Zacks S&P 500 composite's +4.2% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 3.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
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.
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 $2.93 per share, indicating a change of -13.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $10.99 for the current fiscal year indicates a year-over-year change of -20.2%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.04 indicates a change of +0.5% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $13.52 billion for the current quarter points to a year-over-year change of -7.3%. The $52.57 billion and $53.08 billion estimates for the current and next fiscal years indicate changes of -9.5% and +1%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $12.23 billion in the last reported quarter, representing a year-over-year change of -9.7%. EPS of $2.46 for the same period compares with $3.16 a year ago.
Compared to the Zacks Consensus Estimate of $12.08 billion, the reported revenues represent a surprise of +1.17%. The EPS surprise was +0.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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 #2 does suggest that it may outperform the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 3.3% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $12.23 billion in the last reported quarter, representing a year-over-year change of -9.7%. 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 3.3% over this period. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for AbbVie. 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 3.3% over this period. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 3.3% over this period. For the current quarter, AbbVie is expected to post earnings of $2.93 per share, indicating a change of -13.1% from the year-ago quarter. |
22408.0 | 2023-07-06 00:00:00 UTC | Pre-Market Most Active for Jul 6, 2023 : SQQQ, TQQQ, TSLA, CRBU, RIVN, LCID, FCX, NIO, GENI, ABBV, CCL, PLTR | ABBV | https://www.nasdaq.com/articles/pre-market-most-active-for-jul-6-2023-%3A-sqqq-tqqq-tsla-crbu-rivn-lcid-fcx-nio-geni-abbv | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -116.62 to 15,087.16. The total Pre-Market volume is currently 30,703,363 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.3801 at $19.17, with 3,110,791 shares traded. This represents a 3.45% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.81 at $40.44, with 2,423,873 shares traded. This represents a 151.18% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -2.03 at $280.45, with 1,901,163 shares traded. TSLA's current last sale is 126.61% of the target price of $221.5.
Caribou Biosciences, Inc. (CRBU) is +1.11 at $5.19, with 1,760,513 shares traded. As reported in the last short interest update the days to cover for CRBU is 12.105784; this calculation is based on the average trading volume of the stock.
Rivian Automotive, Inc. (RIVN) is -0.33 at $20.10, with 975,280 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
Lucid Group, Inc. (LCID) is -0.15 at $7.26, with 876,789 shares traded. LCID's current last sale is 72.6% of the target price of $10.
Freeport-McMoran, Inc. (FCX) is -0.63 at $38.55, with 779,415 shares traded. FCX's current last sale is 87.61% of the target price of $44.
NIO Inc. (NIO) is -0.13 at $10.09, with 720,454 shares traded. NIO's current last sale is 87.74% of the target price of $11.5.
Genius Sports Limited (GENI) is +0.68 at $6.49, with 697,633 shares traded. As reported by Zacks, the current mean recommendation for GENI is in the "buy range".
AbbVie Inc. (ABBV) is -0.12 at $137.50, with 594,203 shares traded. ABBV's current last sale is 82.34% of the target price of $167.
Carnival Corporation (CCL) is -0.15 at $19.06, with 560,040 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Nov 2023. The consensus EPS forecast is $-0.11. , following a 52-week high recorded in prior regular session.
Palantir Technologies Inc. (PLTR) is -0.1487 at $15.55, with 494,232 shares traded. PLTR's current last sale is 194.39% of the target price of $8.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV) is -0.12 at $137.50, with 594,203 shares traded. ABBV's current last sale is 82.34% of the target price of $167. As reported in the last short interest update the days to cover for CRBU is 12.105784; this calculation is based on the average trading volume of the stock. | AbbVie Inc. (ABBV) is -0.12 at $137.50, with 594,203 shares traded. ABBV's current last sale is 82.34% of the target price of $167. The total Pre-Market volume is currently 30,703,363 shares traded. | AbbVie Inc. (ABBV) is -0.12 at $137.50, with 594,203 shares traded. ABBV's current last sale is 82.34% of the target price of $167. The total Pre-Market volume is currently 30,703,363 shares traded. | AbbVie Inc. (ABBV) is -0.12 at $137.50, with 594,203 shares traded. ABBV's current last sale is 82.34% of the target price of $167. The following are the most active stocks for the pre-market session: |
22409.0 | 2023-07-06 00:00:00 UTC | Sarepta (SRPT) Sells Priority Review Voucher for $102M | ABBV | https://www.nasdaq.com/articles/sarepta-srpt-sells-priority-review-voucher-for-%24102m | nan | nan | Sarepta SRPT announced the completion of the sale of its Rare Pediatric Disease Priority Review Voucher (“PRV”) for $102 million.
The monetization of the PRV will enable management to develop more transformative therapies as it plans to invest the proceeds into the company’s research and development (“R&D”) efforts.
Year to date, Sarepta’s shares have lost 13.7% compared with the industry’s 10.2% decline.
Image Source: Zacks Investment Research
The PRV was awarded to the company last month after the FDA granted accelerated approval to its adeno-associated virus-based gene therapy Elevidys to treat ambulatory pediatric patients aged between four and five years with Duchenne muscular dystrophy (“DMD”).
Following this approval, Elevidys is the first one-shot gene therapy approved for treating DMD.A progressive and degenerative disorder, DMD leads to weakness and wasting away of the body’s muscles.
The FDA approval comes after several delays and questions over the effectiveness of Elevidys. In May, the FDA’s Cellular, Tissue and Gene Therapies Advisory Committee (“CTGTAC”) voted 8:6, narrowly recommending approval for Elevidys. This was likely due to the FDA’s concerns on Elevidys. Per the CTGTAC, the clinical studies conducted to date do not provide unambiguous evidence that the gene therapy will benefit DMD patients.
Based on the above factors, the FDA — in consultation with the company — decided to currently restrict the use of Elevidys in DMD patients aged between four and five years. The agency stated that it will grant a non-age restricted expansion to Elevidysprovided the phase III EMBARK study achieves its objectives. The EMBARK study is the proposed confirmatory study that will seek full approval for Elevidys in DMD indication. Top-line results from the EMBARK study are expected in fourth-quarter 2023.
Elevidyshas been developed by Sarepta in collaboration with Roche RHHBY. Sarepta and Roche entered into a licensing agreement in 2019 to jointly develop and commercialize Elevidys. Per the agreement, Roche has exclusive rights to launch and commercialize the gene therapy in ex-U.S. markets.
Apart from Elevidys, Sarepta’s commercial portfolio consists of three RNA-based PMO therapies targeting DMD — Exondys 51, Vyondys 53 and Amondys 45. These three drugs can potentially address nearly a third of all patients with DMD in the United States.
Sarepta develops SRP-5051 (vesleteplirsen), its next-generation exon-skipping pipeline candidate to treat DMD patients with skipping exon 51. This February, management also started an early-stage study (VOYAGENE) evaluating its other gene therapy candidate, SRP-9003, in patients with Limb-girdle muscular dystrophy (LGMD) type 2E/R4.
Sarepta Therapeutics, Inc. Price
Sarepta Therapeutics, Inc. price | Sarepta Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Sarepta currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include AbbVie ABBV and Vertex Pharmaceuticals VRTX, each carrying 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, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. Shares of AbbVie are down 14.8% in the year-to-date period.
Earnings of AbbVie beat estimates in each of the last four quarters, witnessing an average earnings surprise of 1.78%.
In the past 60 days, the estimate for Vertex’s 2023 and 2024 EPS have increased from $14.45 to $14.48 and $15.52 to $15.69, respectively. Shares of Vertex are up 20.6% in the year-to-date period.
Earnings of Vertex beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.51%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand-picked 7 your immediate attention.
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Roche Holding AG (RHHBY) : 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. | A couple of better-ranked stocks in the overall healthcare sector include AbbVie ABBV and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. Shares of AbbVie are down 14.8% in the year-to-date period. | A couple of better-ranked stocks in the overall healthcare sector include AbbVie ABBV and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. | Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. A couple of better-ranked stocks in the overall healthcare sector include AbbVie ABBV and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. | A couple of better-ranked stocks in the overall healthcare sector include AbbVie ABBV and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. Shares of AbbVie are down 14.8% in the year-to-date period. |
22410.0 | 2023-07-05 00:00:00 UTC | The 7 Best Forever Stocks to Buy for July 2023 | ABBV | https://www.nasdaq.com/articles/the-7-best-forever-stocks-to-buy-for-july-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the latest encouraging read on inflation sending the market on a high to end the first half of this year, the idea of acquiring the best forever stocks may seem overly cautious. After all, with sentiment strong on apparently justifiable reasons, investors may be better served with risk-on securities. Still, forever stock investments have their place.
Primarily, you never want to have a portfolio that’s geared entirely toward speculation. When you dial up the risk-reward profile, your returns might resemble the game of baseball. A few investments may enjoy moonshot gains. However, the vast majority of your portfolio could suffer losses. That’s why acquiring high-potential forever stocks offer relevancy in practically any market cycle.
More importantly in my view, the economy might not be as strong as advertised. Sure, employment figures are up but so too is the unemployment rate. Also, Americans are carrying a record level of household debt. Should circumstances go awry, most folks might not have the wherewithal to adjust. Therefore, buy long-term stocks because you really don’t know what might happen next.
Honeywell (HON)
Source: Vova Shevchuk / Shutterstock.com
While industrial conglomerate and applied sciences giant Honeywell (NASDAQ:HON) won’t exactly light up the excitement indicator, the company offers so many relevancies that it would be practically criminal not to include it in a discussion of best forever stocks to buy. From the mundane to the frontier, Honeywell helps stakeholders sleep easier at night because of demand predictability.
For example, aerospace represents Honeywell’s most profitable business unit. In 2021, this unit generated $11 billion in revenue, according to Statista. Since aerospace probably isn’t going anywhere anytime soon, HON enjoys demand predictability.
On the other end, the company is also involved in efforts to develop advanced electric vehicle batteries. Combined, you have a consistently profitable enterprise that enjoys the flexibility to explore and be relevant for decades to come. To be fair, the three-year revenue growth (per-share basis) of 1.1% isn’t exactly lighting up the board. However, if you want to buy long-term stocks, it’s difficult to ignore Honeywell for the substance it brings to the table.
ASML (ASML)
Source: PX Media / Shutterstock
Easily one of the best forever stocks to buy, ASML (NASDAQ:ASML) specializes in extreme ultraviolet (EUV) lithography. And at that point, the lay observer might wonder, so what (perhaps uttering an expletive or two)? Well, the so-what part is what makes ASML a key talking point for forever stock investments.
Per CNBC, ASML is the only company in the world with EUV lithography machines, which are vital to printing the complex designs associated with advanced semiconductors. Therefore, it’s difficult to envision a paradigm where ASML isn’t relevant. Basically, if you want to get anything done in the chip-manufacturing space, all roads lead to ASML. In the price charts, the underlying shares benefit from the enormous pertinence. Since the beginning of this year, they gained almost 34% of equity value. In the trailing one-year period, they’re up nearly 70%.
Also, as you might expect, ASML benefits from strong revenue and robustly consistent profitability. No hyperbole – ASML sells itself as one of the best stocks for July of this year and every year.
Microsoft (MSFT)
Source: Epic Cure / Shutterstock
My favorite “cheat” code when it comes to discussing anything in the markets, Microsoft (NASDAQ:MSFT) fits so very nicely in the context of best forever stocks. As with the other enterprises on this list, it’s difficult to imagine a future where Microsoft isn’t relevant. Sure, it’s had some rough moments in years past. At the same time, those struggles helped create a brand known for both consumer and professional products and services.
Of course, the big news surrounding Microsoft centers on its partnership with OpenAI and its chatbot ChatGPT. I’m not entirely sure if artificial intelligence will take over the world. Earlier, when writing up the bit about ASML, I cussed up a storm because I know that Microsoft’s ChatGPT-empowered Bing gave me the wrong answer. Nevertheless, as the underlying technology improves, AI will almost surely become a permanent fixture of society, much like email.
On that basis alone, one should target MSFT as one of the high-potential forever stocks. Financially, you’re getting what you would expect from such a stalwart: strong long-term revenue growth and consistent profitability metrics that beat out most contenders.
AbbVie (ABBV)
Source: Zurijeta / Shutterstock.com
It’s quite possible that AbbVie (NYSE:ABBV) may be the most creative take for the best forever stocks to buy. Yes, it’s a pharmaceutical giant so no matter what, it will likely be relevant. That’s not where I’m going with the earlier sentence. Rather, I specifically believe that AbbVie’s acquisition of Allergan – which came with it the Botox brand – gives the acquirer significant blue-sky potential.
Now, many social critics pointed out that millennials – the “me me me generation” – are selfish and self-centered. By logical deduction, I suppose Gen Z and their penchant for TikToks also makes this cohort superficial. However, despite these cohorts making tons of “okay boomer” jokes, I think they fail to understand one thing: everybody eventually becomes a boomer (not literally but you get my point).
So, with so much superficiality permeating society, you’re talking about AbbVie potentially making a landmark deal for Botox. As the wrinkles and panic set in, Botox sales should skyrocket. And because of the size of the millennial cohort, the runway is long and robust. Thus, ABBV is one of the best forever stock investments.
NextEra Energy (NEE)
Source: shutterstock.com/CC7
If you want to buy long-term stocks that organically represent their own pitch person, NextEra Energy (NYSE:NEE) sure makes a compelling case. Listen, I’m not exactly what you would call a go-green tree-hugging renewable energy advocate (as you’ll see below). However, that doesn’t mean I’m blind to the environmental, social, and governance concerns. Renewables are a big deal and NextEra can certainly profit from them.
According to its public profile, NextEra produced about 58 gigawatts (GW) of generating capacity. It’s also the largest electric utility holding firm in the U.S. by market capitalization. With its rich network of renewable energy sources – including wind turbines and solar panels – NextEra proves that going ESG can be quite profitable. However, shares are down more than 11% since the January opener, which may offer a discount for one of the best forever stocks.
Financially, as a utility, it doesn’t offer the most sterling profile, I’ve got to be blunt. At the same time, it’s consistently profitable, which is what you’d expect from its moat. Thus, it’s one of the best stocks for July (especially if you’re a contrarian).
Chevron (CVX)
Source: Freedom365day / Shutterstock.com
Okay, after speaking so lovingly about ESG and the renewable energy space specifically, we’ve got to discuss Chevron (NYSE:CVX). Yes, I know it’s a hydrocarbon energy giant. I also understand that the world is pressing forward with alternative solutions. For instance, the burgeoning EV market doesn’t exactly bode well for CVX on paper. However, I think folks dismiss CVX and the underlying industry too quickly.
Fundamentally, Chevron and its ilk benefit from a key scientific fact: fossil fuels command high energy density. As a result, the Brookings Institution states in part, hydrocarbons are difficult to quit. For a gallon of gasoline, you can move a modern combustion-powered car about 20 or 30 miles (maybe more). You’re not getting anywhere close to that figure for the equivalent volume of electrons.
Plus, for EVs to become viable for all uses, the underlying infrastructure will need both overhaul and advancements. For example, the long charging times involved may be a huge hindrance for those that drive for a living (think ride-sharing). Therefore, I anticipate continued relevancy for CVX, making it one of the surprising choices for the best forever stocks.
NuScale Power (SMR)
Source: ImageFlow/Shutterstock.com
Given that the context of this discussion centers on investors seeking to buy long-term stocks, such individuals should consider NuScale Power (NYSE:SMR). A participant in the nuclear energy space, it’s understandable that many may have reservations about the business. After all, a few high-profile incidents – and the matter coming to a head right now – don’t exactly help the product evangelism angle.
Still, I’m very attracted to NuScale’s case as one of the high-potential forever stocks because of its specialty: small modular reactors or SMRs. Featuring a physically smaller footprint than traditional nuclear reactors, NuScale can integrate its SMRs across a wider geographical range. Most importantly, such facilities command a strong safety protocol, helping to soothe apprehensions about essentially distributed nuclear power.
Further, said distribution may better enable advanced innovations such as desalination (i.e. converting ocean water into drinking water). With myriad opportunities available, SMR ranks among the best forever stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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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: Zurijeta / Shutterstock.com It’s quite possible that AbbVie (NYSE:ABBV) may be the most creative take for the best forever stocks to buy. Rather, I specifically believe that AbbVie’s acquisition of Allergan – which came with it the Botox brand – gives the acquirer significant blue-sky potential. So, with so much superficiality permeating society, you’re talking about AbbVie potentially making a landmark deal for Botox. | AbbVie (ABBV) Source: Zurijeta / Shutterstock.com It’s quite possible that AbbVie (NYSE:ABBV) may be the most creative take for the best forever stocks to buy. Rather, I specifically believe that AbbVie’s acquisition of Allergan – which came with it the Botox brand – gives the acquirer significant blue-sky potential. So, with so much superficiality permeating society, you’re talking about AbbVie potentially making a landmark deal for Botox. | AbbVie (ABBV) Source: Zurijeta / Shutterstock.com It’s quite possible that AbbVie (NYSE:ABBV) may be the most creative take for the best forever stocks to buy. Rather, I specifically believe that AbbVie’s acquisition of Allergan – which came with it the Botox brand – gives the acquirer significant blue-sky potential. So, with so much superficiality permeating society, you’re talking about AbbVie potentially making a landmark deal for Botox. | Thus, ABBV is one of the best forever stock investments. AbbVie (ABBV) Source: Zurijeta / Shutterstock.com It’s quite possible that AbbVie (NYSE:ABBV) may be the most creative take for the best forever stocks to buy. Rather, I specifically believe that AbbVie’s acquisition of Allergan – which came with it the Botox brand – gives the acquirer significant blue-sky potential. |
22411.0 | 2023-07-05 00:00:00 UTC | Mark Cuban's online pharmacy set to launch Humira biosimilar | ABBV | https://www.nasdaq.com/articles/mark-cubans-online-pharmacy-set-to-launch-humira-biosimilar | nan | nan | By Michael Erman
July 5 (Reuters) - Mark Cuban Cost Plus Drugs, an online pharmacy launched by the billionaire to sell drugs directly to customers at low prices, should soon begin selling Coherus BioSciences's CHRS.O biosimilar version of AbbVie Inc's ABBV.N blockbuster rheumatoid arthritis drug Humira, Cuban said on Wednesday.
"We should be getting it today or tomorrow," Cuban said in an email.
Cuban declined to make any projections on the size of the market the pharmacy will supply. "But we will be here and have it readily available to patients on costplusdrugs.com," he said.
Coherus said last month it would sell the biosimilar, branded Yusimry, at $995 per carton, compared with the current list price of Humira of $6,922 per carton. Cost Plus Drugs will sell Yusimry for $569.27 plus dispensing and shipping fees.
Coherus introduced its Humira biosimilar in the U.S. market this month alongside offerings from other drugmakers such as Boehringer Ingelheim, Sandoz and Organon OGN.N.
Usually prices fall, often dramatically, when multiple generic versions of a widely used medication enter the market.
But manufacturers of Humira biosimilars - the name for copies of biologic drugs - are likely to keep prices high to compete with one another for leverage with pharmacy benefit managers (PBMs), which negotiate insurance coverage on behalf of their customers - large employers and health insurance plans, industry experts said.
Sales of Humira, once the world's biggest-selling drug, are expected to drop 37% this year, AbbVie said in February.
Cuban's Cost Plus Drugs aims to drive down the cost of drugs broadly by selling them at a 15% markup over its cost, plus pharmacy fees. While some insured patients can use their benefits on the website, the biggest savings from the pharmacy are currently for uninsured and underinsured people.
Cuban said the company hopes to provide other biosimilar drugs as well. "Our mission is to be the low-cost provider of any and all medications we are able to carry," he wrote.
(Reporting by Michael Erman; Editing by David Holmes)
((michael.erman@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Michael Erman July 5 (Reuters) - Mark Cuban Cost Plus Drugs, an online pharmacy launched by the billionaire to sell drugs directly to customers at low prices, should soon begin selling Coherus BioSciences's CHRS.O biosimilar version of AbbVie Inc's ABBV.N blockbuster rheumatoid arthritis drug Humira, Cuban said on Wednesday. Sales of Humira, once the world's biggest-selling drug, are expected to drop 37% this year, AbbVie said in February. Coherus introduced its Humira biosimilar in the U.S. market this month alongside offerings from other drugmakers such as Boehringer Ingelheim, Sandoz and Organon OGN.N. | By Michael Erman July 5 (Reuters) - Mark Cuban Cost Plus Drugs, an online pharmacy launched by the billionaire to sell drugs directly to customers at low prices, should soon begin selling Coherus BioSciences's CHRS.O biosimilar version of AbbVie Inc's ABBV.N blockbuster rheumatoid arthritis drug Humira, Cuban said on Wednesday. Sales of Humira, once the world's biggest-selling drug, are expected to drop 37% this year, AbbVie said in February. Coherus said last month it would sell the biosimilar, branded Yusimry, at $995 per carton, compared with the current list price of Humira of $6,922 per carton. | By Michael Erman July 5 (Reuters) - Mark Cuban Cost Plus Drugs, an online pharmacy launched by the billionaire to sell drugs directly to customers at low prices, should soon begin selling Coherus BioSciences's CHRS.O biosimilar version of AbbVie Inc's ABBV.N blockbuster rheumatoid arthritis drug Humira, Cuban said on Wednesday. Sales of Humira, once the world's biggest-selling drug, are expected to drop 37% this year, AbbVie said in February. But manufacturers of Humira biosimilars - the name for copies of biologic drugs - are likely to keep prices high to compete with one another for leverage with pharmacy benefit managers (PBMs), which negotiate insurance coverage on behalf of their customers - large employers and health insurance plans, industry experts said. | By Michael Erman July 5 (Reuters) - Mark Cuban Cost Plus Drugs, an online pharmacy launched by the billionaire to sell drugs directly to customers at low prices, should soon begin selling Coherus BioSciences's CHRS.O biosimilar version of AbbVie Inc's ABBV.N blockbuster rheumatoid arthritis drug Humira, Cuban said on Wednesday. Sales of Humira, once the world's biggest-selling drug, are expected to drop 37% this year, AbbVie said in February. Coherus said last month it would sell the biosimilar, branded Yusimry, at $995 per carton, compared with the current list price of Humira of $6,922 per carton. |
22412.0 | 2023-07-05 00:00:00 UTC | Noteworthy ETF Inflows: SSO, CVX, COST, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-sso-cvx-cost-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 ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $134.1 million dollar inflow -- that's a 3.2% increase week over week in outstanding units (from 71,350,000 to 73,650,000). Among the largest underlying components of SSO, in trading today Chevron Corporation (Symbol: CVX) is down about 0.7%, Costco Wholesale Corp (Symbol: COST) is down about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.9%. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $58.41 as the 52 week high point — that compares with a last trade of $58.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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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 SSO, in trading today Chevron Corporation (Symbol: CVX) is down about 0.7%, Costco Wholesale Corp (Symbol: COST) is down about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $134.1 million dollar inflow -- that's a 3.2% increase week over week in outstanding units (from 71,350,000 to 73,650,000). 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 SSO, in trading today Chevron Corporation (Symbol: CVX) is down about 0.7%, Costco Wholesale Corp (Symbol: COST) is down about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.9%. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $58.41 as the 52 week high point — that compares with a last trade of $58.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of SSO, in trading today Chevron Corporation (Symbol: CVX) is down about 0.7%, Costco Wholesale Corp (Symbol: COST) is down about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $134.1 million dollar inflow -- that's a 3.2% increase week over week in outstanding units (from 71,350,000 to 73,650,000). For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $58.41 as the 52 week high point — that compares with a last trade of $58.20. | Among the largest underlying components of SSO, in trading today Chevron Corporation (Symbol: CVX) is down about 0.7%, Costco Wholesale Corp (Symbol: COST) is down about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $134.1 million dollar inflow -- that's a 3.2% increase week over week in outstanding units (from 71,350,000 to 73,650,000). For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $58.41 as the 52 week high point — that compares with a last trade of $58.20. |
22413.0 | 2023-07-05 00:00:00 UTC | Celltrion launches biosimilar of AbbVie's blockbuster drug Humira in US | ABBV | https://www.nasdaq.com/articles/celltrion-launches-biosimilar-of-abbvies-blockbuster-drug-humira-in-us | nan | nan | July 5 (Reuters) - South Korea's Celltrion Healthcare 091990.KQhas launched a copycat version to AbbVie Inc's ABBV.N Humira at about a 5% discount, adding to the growing competition for the blockbuster rheumatoid arthritis drug in the U.S.
The biosimilar, Yuflyma, became available for sale in the U.S. on Sunday, the company said a day later.
Yuflyma is listed at $6,576.50 per month compared to the current list price of Humira at $6,922 per carton and is available in two device types — auto-injector and pre-filled syringe options.
Celltrion said it was seeking an interchangeability designation from the U.S. Food and Drug Administration for Yuflyma. The decision is likely in the fourth quarter of 2024.
An interchangeable biosimilar product may be substituted without the intervention of the health care professional who prescribed the reference product.
Celltrion joins drugmakers such as Boehringer Ingelheim, Sandoz, Organon OGN.N, Germany's Fresenius FREG.DE and Coherus BioSciences CHRS.O, which also launched biosimilars this week.
While pills have extremely cheap generic versions, complex, expensive biologics made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. Until recently, it was the world's biggest-selling non-COVID prescription drug, hitting a record $21.2 billion in sales for 2022.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)
((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. | July 5 (Reuters) - South Korea's Celltrion Healthcare 091990.KQhas launched a copycat version to AbbVie Inc's ABBV.N Humira at about a 5% discount, adding to the growing competition for the blockbuster rheumatoid arthritis drug in the U.S. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. Celltrion joins drugmakers such as Boehringer Ingelheim, Sandoz, Organon OGN.N, Germany's Fresenius FREG.DE and Coherus BioSciences CHRS.O, which also launched biosimilars this week. | July 5 (Reuters) - South Korea's Celltrion Healthcare 091990.KQhas launched a copycat version to AbbVie Inc's ABBV.N Humira at about a 5% discount, adding to the growing competition for the blockbuster rheumatoid arthritis drug in the U.S. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. An interchangeable biosimilar product may be substituted without the intervention of the health care professional who prescribed the reference product. | July 5 (Reuters) - South Korea's Celltrion Healthcare 091990.KQhas launched a copycat version to AbbVie Inc's ABBV.N Humira at about a 5% discount, adding to the growing competition for the blockbuster rheumatoid arthritis drug in the U.S. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. Yuflyma is listed at $6,576.50 per month compared to the current list price of Humira at $6,922 per carton and is available in two device types — auto-injector and pre-filled syringe options. | July 5 (Reuters) - South Korea's Celltrion Healthcare 091990.KQhas launched a copycat version to AbbVie Inc's ABBV.N Humira at about a 5% discount, adding to the growing competition for the blockbuster rheumatoid arthritis drug in the U.S. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. The biosimilar, Yuflyma, became available for sale in the U.S. on Sunday, the company said a day later. |
22414.0 | 2023-07-04 00:00:00 UTC | 3 Spectacular Dividend Stocks to Buy in July | ABBV | https://www.nasdaq.com/articles/3-spectacular-dividend-stocks-to-buy-in-july | nan | nan | A new month is here. And with it comes a new opportunity to invest in spectacular dividend stocks.
Three Motley Fool contributors think they know some great candidates to buy in July. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ).
High-yield dividend royalty
Keith Speights (AbbVie): If you're in the market for a high dividend yield, AbbVie could be right up your alley. The big pharmaceutical company's dividend yield currently stands at nearly 4.5%.
Some high-yield dividends aren't all that reliable. That isn't the case with AbbVie, though. The drugmaker has increased its dividend for 51 consecutive years. This impressive track record qualifies AbbVie to be part of the elite group of stocks known as Dividend Kings.
There is one area of concern with AbbVie. The company's top-selling drug, Humira, lost U.S. patent exclusivity earlier this year. Sales for Humira are sinking, pulling down AbbVie's total revenue and profits in the process.
The good news is that AbbVie has plenty of other products with growing sales in addition to a promising late-stage pipeline. While sales will likely continue to slump for a while, the company expects to return to solid growth by 2025.
An underrated dividend stock trading at a steep discount
David Jagielski (Bristol Myers Squibb): Shares of Bristol Myers Squibb are down around 10% this year. For long-term investors, though, this is a great stock to buy and hold. The company is a big name in healthcare, with a market cap of $137 billion. Over the past 12 months, it has generated strong operating margins of 20%.
One thing that makes Bristol Myers such a special stock to own is that it has a solid track record for growing via mergers and acquisitions. These deals are indicative of good capital allocation decision-making. Largely as a result of its business development, the drugmaker's revenue has more than doubled over the past five years.
Bristol Myers Squibb is losing patent protection on some of its key drugs this decade, including Eliquis, Revlimid, and Opdivo. However, it also has some new drugs that will help recoup some of those losses, including skin cancer drug Opdualag and heart medication Camzyos. Plus, the company has a strong pipeline featuring over 50 compounds in development.
The big drugmaker has generated close to $12 billion in free cash flow over the past four quarters, which is more than double what it has paid out in dividends during that time frame ($4.6 billion). With sufficient money to cover its growing dividend plus resources to help its business grow, this can be a spectacular investment to buy for the long haul.
Bristol Myers has increased its payouts by 63% over the past 10 years. Today, it yields 3.5%, which is more than double the S&P 500 average of 1.6%. Trading at just 8 times its estimated future profits, it's an underrated dividend stock to buy today.
Death, taxes, and this company's dividend
Prosper Junior Bakiny (Johnson & Johnson): What do dividend investors look for in a company? First and foremost, they look for those robust businesses that can survive any downturn. But other things matter, too, including the corporation's dividend history and long-term prospects. Pharma giant Johnson & Johnson is exemplary in each of these categories.
Thanks to its vast and diversified portfolio of medicines and medical devices, the company generally records steady and consistent revenue and earnings. Regular profits and cash flow help support dividend growth, and Johnson & Johnson is also highly impressive in this department. The company is on its 61st consecutive year of dividend increases, making it a Dividend King.
There are very few companies that boast a better track record in this regard. Johnson & Johnson should be able to keep this streak going for a while as long as it remains a leader in the healthcare industry, which won't stop being relevant anytime soon. The company has proven its ability to remain competitive through innovation.
Consider the drugmaker's current pipeline, which features over 100 ongoing programs. Some of these are brand-new medicines that will help supplement Johnson & Johnson's existing lineup, many of whose existing products also routinely earn label expansions. Johnson & Johnson is looking at several growth avenues within medical devices, including in the exciting robotic-assisted surgery field with its Ottava device. At any rate, the need for the kinds of products it offers will only increase along with the world's aging population.
Johnson & Johnson should continue spending enough research and development resources to keep the innovative wheel turning and stay competitive in this challenging industry. Of course, that also means the company's dividend is about as safe as they come, considering its excellent track record, strong fundamentals, and growth prospects. Those seeking excellent dividend-paying companies in July and beyond should look no further than Johnson & Johnson.
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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 positions in Johnson & Johnson. The Motley Fool has positions in and recommends Bristol Myers Squibb. 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. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). High-yield dividend royalty Keith Speights (AbbVie): If you're in the market for a high dividend yield, AbbVie could be right up your alley. That isn't the case with AbbVie, though. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). High-yield dividend royalty Keith Speights (AbbVie): If you're in the market for a high dividend yield, AbbVie could be right up your alley. That isn't the case with AbbVie, though. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). High-yield dividend royalty Keith Speights (AbbVie): If you're in the market for a high dividend yield, AbbVie could be right up your alley. That isn't the case with AbbVie, though. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). High-yield dividend royalty Keith Speights (AbbVie): If you're in the market for a high dividend yield, AbbVie could be right up your alley. That isn't the case with AbbVie, though. |
22415.0 | 2023-07-04 00:00:00 UTC | AstraZeneca (AZN) Down 9% on Mixed Lung Cancer Study Results | ABBV | https://www.nasdaq.com/articles/astrazeneca-azn-down-9-on-mixed-lung-cancer-study-results | nan | nan | AstraZeneca AZN reported results from an interim analysis of the phase III TROPION-Lung01 study evaluating datopotamab deruxtecan (Dato-DXd) in patients with locally advanced or metastatic non-small cell lung cancer (“NSCLC”) treated with at least one prior therapy.
The company reported mixed results from the TROPION-Lung01 study. Though the TROPION-Lung01 study showed that treatment with datopotamab deruxtecan achieved one of its dual primary endpoints of progression-free survival (“PFS”) over the current standard of care chemotherapy, it did not achieve the other dual primary endpoint of overall survival (“OS”) with statistical significance.
Shares of AstraZeneca were down 8.8% on Monday post the announcement. Alhough management claimed that the OS data was still favorable and yet to mature, several Wall Street analysts pointed out that the company did not declare the positive PFS result to be “clinically meaningful”. AstraZeneca also reported that some participants in the study also experienced a Grade 5 (fatal) serious adverse event though it is unclear whether the event occurred because of the drug’s intake. Per an article by the National Library of Medicine, a grade 5 SAE indicates the worst outcome, i.e., death. The company’s press release lacked any numerical data to verify the relevance of the reported results.
AstraZeneca will continue to assess the effect of the drug on OS endpoint in the TROPION-Lung01 study.
Year to date, the stock has lost 3.8% against the industry‘s 2.2% growth.
Image Source: Zacks Investment Research
Per management, chemotherapy is the last resort for patients with advanced NSCLC despite limited effectiveness. Datopotamab deruxtecan is designed to target TROP2, a protein that is highly expressed in a large majority of lung cancers. There are no TROP2-directed antibody drug conjugates (“ADC”) approved for treating patients with lung cancer.
Datopotamab deruxtecan is being developed by AstraZeneca in collaboration with Daiichi Sankyo. Apart from NSCLC, the companies are evaluating the drug across multiple TROP2-targetable tumors, including breast cancer.
AstraZeneca and DaiiChi Sankyo initially entered into an agreement in 2019 to jointly develop and market Enhertu, which is currently approved in the United States across three oncology indications, namely breast cancer, stomach cancer and lung cancer. The companies expanded their agreement in 2020 to jointly develop datopotamab deruxtecan.
AstraZeneca is highly focused on strengthening its oncology business. In first-quarter 2023, AZN generated $4.1 billion worth of total revenues from its Oncology business, up 19% year over year at CER. The upside was driven by a solid performance of newer medicines, such as Tagrisso, Lynparza, Imfinzi and Calquence. AstraZeneca is working to further strengthen this portfolio through label expansions and advancing oncology pipeline candidates.
AstraZeneca PLC Price
AstraZeneca PLC price | AstraZeneca PLC Quote
Zacks Rank & Key Picks
AstraZeneca carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include AbbVie ABBV, Novartis NVS and Vertex Pharmaceuticals VRTX, each carrying 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, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. Shares of AbbVie are down 16.5% in the year-to-date period.
Earnings of AbbVie beat estimates in each of the last four quarters, witnessing an average earnings surprise of 1.78%.
In the past 60 days, the estimate for Novartis’ 2023 and 2024 EPS have increased from $6.60 to $6.74 and $7.11 to $7.28, respectively. Shares of Novartis are up 8.9% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.15%.
In the past 60 days, the estimate for Vertex’s 2023 and 2024 EPS have increased from $14.39 to $14.48 and $15.44 to $15.66, respectively. Shares of Vertex are up 20.4% in the year-to-date period.
Earnings of Vertex beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.51%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AstraZeneca PLC Price AstraZeneca PLC price | AstraZeneca PLC Quote Zacks Rank & Key Picks AstraZeneca carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include AbbVie ABBV, Novartis NVS and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. Shares of AbbVie are down 16.5% in the year-to-date period. | AstraZeneca PLC Price AstraZeneca PLC price | AstraZeneca PLC Quote Zacks Rank & Key Picks AstraZeneca carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include AbbVie ABBV, Novartis NVS and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. | AstraZeneca PLC Price AstraZeneca PLC price | AstraZeneca PLC Quote Zacks Rank & Key Picks AstraZeneca carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include AbbVie ABBV, Novartis NVS and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. | AstraZeneca PLC Price AstraZeneca PLC price | AstraZeneca PLC Quote Zacks Rank & Key Picks AstraZeneca carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include AbbVie ABBV, Novartis NVS and Vertex Pharmaceuticals VRTX, each carrying a Zacks Rank #2 (Buy). In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.96 to $10.99 and $11.03 to $11.04, respectively. Shares of AbbVie are down 16.5% in the year-to-date period. |
22416.0 | 2023-07-03 00:00:00 UTC | 3 Magnificent Dividend Stocks to Buy Hand Over Fist in July | ABBV | https://www.nasdaq.com/articles/3-magnificent-dividend-stocks-to-buy-hand-over-fist-in-july | nan | nan | Temperatures are rising. And so are concerns about what's next for the stock market. The answer to the former issue is air conditioning and/or a cool swim. The latter is more challenging.
However, one possibility is to invest in stocks that pay you to own them and that have solid long-term prospects. With that in mind, here are three magnificent dividend stocks to buy hand over fist in July.
1. AbbVie
You're simply not going to find much, if anything, to dislike about AbbVie's (NYSE: ABBV) dividend. Let's start with the juicy dividend yield of nearly 4.5%. Add to that the fact that AbbVie is a Dividend King with 51 consecutive years of dividend increases.
But there's more to like about AbbVie than just its dividend program. For example, the stock is a bargain. The drugmaker's shares currently trade at only 12.3 times expected earnings.
The main negative for AbbVie is that its revenue and profits are declining. This trend is due to the company's top-selling drug, Humira, losing patent exclusivity in the U.S. this year.
However, there's no reason to worry. AbbVie should quickly return to robust growth by 2025 thanks to its strong product lineup and late-stage pipeline.
2. Brookfield Renewable
Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) looks like an income investor's dream. If you're comfortable dealing with the tax hassles associated with investing in a limited partnership (LP), you can get a dividend yield of nearly 4.6% by buying BEP. If not, the corporate shares that trade under the BEPC ticker offer a yield of close to 4.4%.
Either way, you'll own a part of the same fantastic underlying business. Brookfield Renewable operates hydroelectric, wind, solar, and distributed energy facilities across the world.
The demand for renewable energy will almost certainly skyrocket over the coming years. Countries and major corporations won't be able to achieve their carbon emissions goals without more renewable energy. Also, the growth in the electric vehicle market should generate an even greater demand for electric power.
Brookfield Renewable is gearing up to meet this demand. The company's development pipeline capacity totals around 132 gigawatts. That's more than four times the current operational capacity.
3. Enterprise Products Partners
Want an especially high yield? You'll definitely want to check out Enterprise Products Partners (NYSE: EPD). This midstream energy company offers a distribution yield of nearly 7.5%.
Enterprise Products Partners' distributions come like clockwork. Even better, they get bigger and bigger. The company has increased its distribution for 24 consecutive years. We're not talking about tiny hikes, either. The compound annual growth rate for Enterprise's distributions is around 7%.
But won't renewable energy reduce the demand for the fossil fuels that flow through Enterprise Products Partners' pipelines? Not anytime soon. As the world population grows, it's unlikely that wind and solar will be able to keep up with the associated increased energy demand.
Both the U.S. Energy Information Administration and the International Energy Agency project that the global demand for oil and gas will increase through 2050. If these agencies are right (and I suspect they are), Enterprise Products Partners should be able to keep those magnificent distributions flowing for a long time to come.
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Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. The Motley Fool has positions in and recommends Brookfield Renewable. The Motley Fool recommends Brookfield Renewable Partners and Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie You're simply not going to find much, if anything, to dislike about AbbVie's (NYSE: ABBV) dividend. Add to that the fact that AbbVie is a Dividend King with 51 consecutive years of dividend increases. But there's more to like about AbbVie than just its dividend program. | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. AbbVie You're simply not going to find much, if anything, to dislike about AbbVie's (NYSE: ABBV) dividend. Add to that the fact that AbbVie is a Dividend King with 51 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. AbbVie You're simply not going to find much, if anything, to dislike about AbbVie's (NYSE: ABBV) dividend. Add to that the fact that AbbVie is a Dividend King with 51 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. AbbVie You're simply not going to find much, if anything, to dislike about AbbVie's (NYSE: ABBV) dividend. Add to that the fact that AbbVie is a Dividend King with 51 consecutive years of dividend increases. |
22417.0 | 2023-07-03 00:00:00 UTC | Novartis (NVS) to Divest Xiidra, SAF312 to Streamline Focus | ABBV | https://www.nasdaq.com/articles/novartis-nvs-to-divest-xiidra-saf312-to-streamline-focus | nan | nan | Novartis NVS, a leading pharmaceutical company, recently made a strategic decision to divest its “front of eye” ophthalmology assets to Bausch + Lomb BLCO, a global eye health company.
Xiidra, the first approved prescription treatment for dry eye disease, and SAF312, a first-in-class therapy for chronic ocular surface pain (COSP), are pivotal assets included in the transaction.
Novartis has signed an agreement with Bausch + Lomb to transfer Xiidra and SAF312 (libvatrep) for $2.5 billion. This deal comprises $1.75 billion in upfront cash, along with additional milestone payments.
The agreement also grants Bausch + Lomb rights to the AcuStream delivery device for dry eye indications and OJL332, a second-generation TRPV1 antagonist in pre-clinical development.
Novartis will be entitled to milestone payments of up to $750 million based on the anticipated future sales of Xiidra, SAF312, and OJL332.
This transaction further advances Novartis' business strategy to focus on core drugs.
While divesting its ophthalmology assets, Novartis remains committed to its research and development efforts in addressing retinal diseases. The company will leverage advanced technology platforms, such as gene therapy and optogenetics, to further advance its work in this therapeutic area.
The deal will close in the second half of 2023.
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc.
Shares of Novartis have gained 11.2% in the year so far compared with the industry’s 2.2% growth.
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In addition, Novartis presented new long-term data from the open-label extension study, ALITHIOS, at the European Academy of Neurology (EAN) Annual Meeting. The data showed the sustained efficacy of continuous treatment with Kesimpta (ofatumumab) over five years in patients with relapsing forms of multiple sclerosis (RMS).
The study demonstrated that patients treated with Kesimpta experienced significantly reduced relapse rates, fewer MRI lesions and high rates of no evidence of disease activity (NEDA-3). Notably, patients who switched from teriflunomide to Kesimpta also experienced pronounced reductions in relapse rates and MRI lesions. The number of patients achieving NEDA-3 substantially increased after the switch to Kesimpta.
These impressive five-year efficacy data, combined with Kesimpta's well-tolerated safety profile, continue to support its favorable benefit-risk profile for RMS patients.
Novartis’ performance in the first quarter was better than expected, as earnings and sales beat estimates. It also raised its annual guidance. This boosted investors’ sentiment and increased its share price.
While the older drugs face generic competition, the continued strong performance of Entresto, Pluvicto, Kesimpta and Kisqali has been fueling growth. Pluvicto and Scemblix saw very strong launches and recorded solid sales. Demand for Pluvicto continues to exceed supply in the United States. The Leqvio launch continues to progress well.
Zacks Rank and Stocks to Consider
Novartis currently carries a Zacks Rank #2 (Buy).
Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals LGND and AbbVie ABBV. While Ligand currently sports a Zacks Rank #1 (Strong Buy), AbbVie carries the same rank as Novartis. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings estimates for LGND have increased by $1.09 to $5.25. LGND topped earnings estimates in two of the last four quarters and missed in the remaining two, the average surprise being 21.50%.
Over the past 60 days, earnings estimates for ABBV have increased by 3 cents to $10.99 for 2023. ABBV surpassed estimates in all the trailing four quarters, the average surprise being 1.78%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals LGND and AbbVie ABBV. While Ligand currently sports a Zacks Rank #1 (Strong Buy), AbbVie carries the same rank as Novartis. Over the past 60 days, earnings estimates for ABBV have increased by 3 cents to $10.99 for 2023. | While Ligand currently sports a Zacks Rank #1 (Strong Buy), AbbVie carries the same rank as Novartis. Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Bausch + Lomb Corporation (BLCO) : Free Stock Analysis Report To read this article on Zacks.com click here. Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals LGND and AbbVie ABBV. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Bausch + Lomb Corporation (BLCO) : Free Stock Analysis Report To read this article on Zacks.com click here. Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals LGND and AbbVie ABBV. While Ligand currently sports a Zacks Rank #1 (Strong Buy), AbbVie carries the same rank as Novartis. | Over the past 60 days, earnings estimates for ABBV have increased by 3 cents to $10.99 for 2023. Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals LGND and AbbVie ABBV. While Ligand currently sports a Zacks Rank #1 (Strong Buy), AbbVie carries the same rank as Novartis. |
22418.0 | 2023-07-03 00:00:00 UTC | Will Eli Lilly Stock Continue To Rise After 40% Gains In The Ongoing Inflation Shock? | ABBV | https://www.nasdaq.com/articles/will-eli-lilly-stock-continue-to-rise-after-40-gains-in-the-ongoing-inflation-shock | nan | nan | Eli Lilly stock (NYSE: LLY) currently trades at $459 per share, roughly 150% above its level in March 2021, and its valuation looks stretched now, in our view. LLY saw its stock trading at around $324 in late June 2022, just before the Fed started increasing rates, and is now 40% above that level, outperforming the broader S&P 500, which gained about 16% during this period. The recent surge in LLY stock can be attributed to optimism around the company’s pipeline, including its Alzheimer’s treatment – Donanemab – with a peak sales potential of $10 billion. Eli Lilly’s diabetes drugs – Jardiance and Synjardy – were recently approved to treat type 2 diabetes in children, expanding their market size.
Investors are now eyeing Eli Lilly’s new obesity drug – Retatrutide – which recently showed weight loss of 24% after 48 weeks, marking the best results so far for any obesity drug. The company is awaiting approval for another obesity drug – Mounjaro – that targets two obesity-related hormones – GLP-1 and GIP. Retatrutide targets three obesity-related hormones, including glucagon. Eli Lilly’s obesity drugs could garner over $25 billion in peak sales. 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 recently announced that it would stop developing one of the obesity experimental drugs – Lotiglipron – which could bode well for Eli Lilly.
Investors have rewarded these positive developments for Eli Lilly in the recent past. Our detailed analysis of Eli Lilly’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt supply.
April 2021: Inflation rates cross 4% and increase rapidly.
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process.
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline.
Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses.
In contrast, here’s how LLY stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
Eli Lilly and S&P 500 Performance During 2007-08 Crisis
LLY stock declined from $58 in August 2008 (its pre-crisis peak) to around $29 in March 2009 (as the markets bottomed out), implying that it lost about 50% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $36 in early 2010, rising over 20% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
Eli Lilly’s Fundamentals Over Recent Years
Eli Lilly’s revenue rose from $22.3 billion in 2019 to $28.5 billion in 2022, driven by continued market share gains for some of its drugs, including Trulicity, Verzenio, Jardiance, and Covid-19 antibodies. While Covid-19 antibodies sales are now declining, the company secured U.S. FDA approval for its diabetes drug – Tirzepatide – last year. It is expected to garner over $5 billion in peak sales.
Eli Lilly’s operating margin has also expanded from 21.8% in 2019 to 25.3% in 2022. Our Eli Lilly Operating Income Comparison dashboard has more details. The company’s reported earnings decreased from $8.93 in 2019 to $6.93 in 2022 due to certain one-time inclusions. On an adjusted basis, EPS grew from $6.04 to 7.94 over the same period.
Does Eli Lilly Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
Eli Lilly’s total debt increased from $15.3 billion in 2019 to $16.2 billion in 2022, while its total cash decreased from around $2.4 billion to $2.2 billion over the same period. The company garnered $7.1 billion in cash flows from operations in 2022. Given its cash position, Eli Lilly appears well-positioned to meet its near-term obligations.
Conclusion
While the Fed’s efforts to tame runaway inflation rates are helping market sentiment, we believe Eli Lilly (LLY) stock is now fully valued with its positives priced in. The stock will surely see more upside in the event of regulatory approvals for its pipeline drugs, but its valuation appears to be stretched. LLY stock trades at 15.7x sales vs. the last five-year average of 8.3x. Our Eli Lilly (LLY) Valuation Ratios Comparison dashboard has more details. It usually takes a few years for a drug to reach its peak sales potential after the regulatory approvals. Eli Lilly still has a long road ahead with its potential blockbuster drugs, including Donanemab and Mounjaro.
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Returns Jun 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
LLY Return 7% 25% 524%
S&P 500 Return 5% 14% 95%
Trefis Multi-Strategy Portfolio 8% 18% 270%
[1] Month-to-date and year-to-date as of 6/29/2023
[2] Cumulative total returns since the end of 2016
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See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recent surge in LLY stock can be attributed to optimism around the company’s pipeline, including its Alzheimer’s treatment – Donanemab – with a peak sales potential of $10 billion. 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. Conclusion While the Fed’s efforts to tame runaway inflation rates are helping market sentiment, we believe Eli Lilly (LLY) stock is now fully valued with its positives priced in. | Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Eli Lilly and S&P 500 Performance During 2007-08 Crisis LLY stock declined from $58 in August 2008 (its pre-crisis peak) to around $29 in March 2009 (as the markets bottomed out), implying that it lost about 50% of its pre-crisis value. Eli Lilly’s total debt increased from $15.3 billion in 2019 to $16.2 billion in 2022, while its total cash decreased from around $2.4 billion to $2.2 billion over the same period. | Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Eli Lilly and S&P 500 Performance During 2007-08 Crisis LLY stock declined from $58 in August 2008 (its pre-crisis peak) to around $29 in March 2009 (as the markets bottomed out), implying that it lost about 50% of its pre-crisis value. Eli Lilly’s Fundamentals Over Recent Years Eli Lilly’s revenue rose from $22.3 billion in 2019 to $28.5 billion in 2022, driven by continued market share gains for some of its drugs, including Trulicity, Verzenio, Jardiance, and Covid-19 antibodies. Eli Lilly’s total debt increased from $15.3 billion in 2019 to $16.2 billion in 2022, while its total cash decreased from around $2.4 billion to $2.2 billion over the same period. | Eli Lilly stock (NYSE: LLY) currently trades at $459 per share, roughly 150% above its level in March 2021, and its valuation looks stretched now, in our view. Eli Lilly’s obesity drugs could garner over $25 billion in peak sales. Total [2] LLY Return 7% 25% 524% S&P 500 Return 5% 14% 95% Trefis Multi-Strategy Portfolio 8% 18% 270% [1] Month-to-date and year-to-date as of 6/29/2023 [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. |
22419.0 | 2023-07-03 00:00:00 UTC | Merck and AbbVie Are Facing Big Patent Cliffs, But Here's Why Both Are Still Buys | ABBV | https://www.nasdaq.com/articles/merck-and-abbvie-are-facing-big-patent-cliffs-but-heres-why-both-are-still-buys | nan | nan | Drug companies Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the best pharmaceutical investments, easily delivering better total returns than the S&P 500 average over the past three, five, and 10 years.
However, as it is often said, past performance is no guarantee of future success. Both companies are coming off record years in terms of revenue and face the prospect of decline in the next few years because of significant patent expirations affecting their lead drugs.
I don't think it's time to abandon either stock, however. The two companies have been preparing for these patent cliffs for a while, and through their huge pipelines and willingness to spend to acquire promising therapies, they have the wherewithal to get back to increasing revenue in a short period of time.
ABBV Total Return Level data by YCharts
Merck investors don't need to panic
Over the past five years, Merck's shares have grown 93%. In that same period, the company's annual revenue has climbed 40% while its annual earnings per share (EPS) has grown 146%.
The key to that strong performance was immuno-oncology blockbuster Keytruda, which was responsible for $21 billion in 2022 sales, a third of the company's sales. Keytruda has received U.S. Food and Drug Administration (FDA) approvals this year for two new indications.
However, the drug could face biosimilar competition as early as 2028. That concern explains why the stock is only up slightly more than 2% so far this year, despite a record year in revenue last year.
Merck has been preparing for Keytruda's loss of exclusivity. It hasn't been shy about acquiring key assets while spending heavily on its own pipeline. Its biggest acquisition recently was its $10.8 billion purchase of Prometheus Biosciences. Prometheus isn't profitable and it doesn't have any approved drugs yet, but it has a potential blockbuster in PRA-023, which has done well in trials to treat ulcerative colitis, Crohn's disease, and other autoimmune conditions. Merck has renamed the therapy MK-7240.
Merck's pipeline is particularly strong, with 120 programs, including more than 80 in phase 2 trials and more than 30 in phase 3 trials. The company received two FDA approvals for new indications in June, including Prevymis to stop cytomegalovirus (CMV) infections in adult kidney transplant recipients, and a new indication for Lynparza (for which Merck shares profits with AstraZeneca), as a combination therapy with abiraterone and prednisone or prednisolone to treat adults with castration-resistant prostate cancer with deleterious or suspected deleterious BRCA-mutated (BRCAm) genes.
Another reason to like Merck as a long-term buy is its quarterly dividend, which it has increased for 12 consecutive years, including a boost of 5.8% effective this year, to $0.73 per share. The yield on the dividend is roughly 2.92%. With a payout ratio of 54%, it's likely the company will continue to raise the dividend.
AbbVie will survive, even thrive, after Humira
AbbVie's stock is down 17% so far this year. The company's best-selling drug, Humira, is facing biosimilar competition for the first time in the U.S., and seeing declining sales after years of being the world's top-selling drug.
Like Mark Twain, though, reports of AbbVie's demise have been greatly exaggerated. The point is that AbbVie will do just fine in time despite lowered revenue expectations from Humira, which was responsible for 36% of the company's 2022 revenue.
AbbVie's pipeline includes 90 programs, with more than 50 of them in phase 2 or phase 3 trials. Not counting Humira, AbbVie had 11 therapies with $1 billion or more in sales last year, including two rising immunology drugs, Skyrizi and Rinvoq.
The company has predicted the two could bring in more than $15 billion in annual combined sales by 2025. They're already on the way, with $6.5 billion in sales last year. They are being heavily marketed by AbbVie as they continue to add indications for the two.
In May, the FDA approved Rinvoq as a treatment for Crohn's disease for adult patients who have not responded well to one or more tumor necrosis factor (TNF) blockers. The drug is already approved to treat rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, along with active ankylosing spondylitis and non-radiographic axial spondyloarthritis, two inflammatory diseases that frequently affect the spine.
Skyrizi is approved to treat psoriatic arthritis, plaque psoriasis, and Crohn's disease and is coming off a positive phase 3 trial in March to treat ulcerative colitis.
Like Merck, AbbVie is willing to supplement its revenue through acquisitions. In October, the company purchased private biotech company DJS Antibodies for $255 million. The company's lead therapy is DJS-002, which is in pre-clinical studies to treat idiopathic pulmonary fibrosis and other fibrotic maladies.
The company's dividend makes the stock even more worth holding on to today. Counting AbbVie's time as a division of Abbott Laboratories, the quarterly dividend has increased for 51 consecutive years, including a boost of 5% this year to $1.48. At around 4.7%, the yield is more than double the S&P 500's payout.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Abbott Laboratories and Merck. 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. | Drug companies Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the best pharmaceutical investments, easily delivering better total returns than the S&P 500 average over the past three, five, and 10 years. ABBV Total Return Level data by YCharts Merck investors don't need to panic Over the past five years, Merck's shares have grown 93%. AbbVie will survive, even thrive, after Humira AbbVie's stock is down 17% so far this year. | Not counting Humira, AbbVie had 11 therapies with $1 billion or more in sales last year, including two rising immunology drugs, Skyrizi and Rinvoq. Counting AbbVie's time as a division of Abbott Laboratories, the quarterly dividend has increased for 51 consecutive years, including a boost of 5% this year to $1.48. Drug companies Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the best pharmaceutical investments, easily delivering better total returns than the S&P 500 average over the past three, five, and 10 years. | Drug companies Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the best pharmaceutical investments, easily delivering better total returns than the S&P 500 average over the past three, five, and 10 years. ABBV Total Return Level data by YCharts Merck investors don't need to panic Over the past five years, Merck's shares have grown 93%. AbbVie will survive, even thrive, after Humira AbbVie's stock is down 17% so far this year. | Drug companies Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the best pharmaceutical investments, easily delivering better total returns than the S&P 500 average over the past three, five, and 10 years. ABBV Total Return Level data by YCharts Merck investors don't need to panic Over the past five years, Merck's shares have grown 93%. AbbVie will survive, even thrive, after Humira AbbVie's stock is down 17% so far this year. |
22420.0 | 2023-07-03 00:00:00 UTC | Coherus BioSciences launches biosimilar version of AbbVie's blockbuster Humira | ABBV | https://www.nasdaq.com/articles/coherus-biosciences-launches-biosimilar-version-of-abbvies-blockbuster-humira | nan | nan | Adds background in paragraphs 2-5
July 3 (Reuters) - Coherus BioSciences CHRS.O said on Monday it has launched a copycat version of AbbVie's ABBV.N Humira in the United States at a discount of over 85% to the blockbuster arthritis drug.
Coherus is the latest to launch the biosimilar to Humira in the U.S. market this month following Boehringer Ingelheim, Sandoz and Organon OGN.N.
While pills have extremely cheap generic versions, complex, expensive biologics made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
Coherus said last month it would sell the biosimilar, branded as Yusimry, at $995 per carton, compared with the current list price of Humira of $6,922 per carton.
The company has also partnered with billionaire entrepreneur Mark Cuban's pharmaceuticals startup to sell the biosimilar at $569.27 plus dispensing and shipping fees.
(Reporting by Sriparna Roy and Leroy Leo in Bengaluru; Editing by Dhanya Ann Thoppil and Shounak Dasgupta)
((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. | Adds background in paragraphs 2-5 July 3 (Reuters) - Coherus BioSciences CHRS.O said on Monday it has launched a copycat version of AbbVie's ABBV.N Humira in the United States at a discount of over 85% to the blockbuster arthritis drug. While pills have extremely cheap generic versions, complex, expensive biologics made from living cells cannot be exactly duplicated. The company has also partnered with billionaire entrepreneur Mark Cuban's pharmaceuticals startup to sell the biosimilar at $569.27 plus dispensing and shipping fees. | Adds background in paragraphs 2-5 July 3 (Reuters) - Coherus BioSciences CHRS.O said on Monday it has launched a copycat version of AbbVie's ABBV.N Humira in the United States at a discount of over 85% to the blockbuster arthritis drug. Coherus is the latest to launch the biosimilar to Humira in the U.S. market this month following Boehringer Ingelheim, Sandoz and Organon OGN.N. Coherus said last month it would sell the biosimilar, branded as Yusimry, at $995 per carton, compared with the current list price of Humira of $6,922 per carton. | Adds background in paragraphs 2-5 July 3 (Reuters) - Coherus BioSciences CHRS.O said on Monday it has launched a copycat version of AbbVie's ABBV.N Humira in the United States at a discount of over 85% to the blockbuster arthritis drug. Coherus is the latest to launch the biosimilar to Humira in the U.S. market this month following Boehringer Ingelheim, Sandoz and Organon OGN.N. Coherus said last month it would sell the biosimilar, branded as Yusimry, at $995 per carton, compared with the current list price of Humira of $6,922 per carton. | Adds background in paragraphs 2-5 July 3 (Reuters) - Coherus BioSciences CHRS.O said on Monday it has launched a copycat version of AbbVie's ABBV.N Humira in the United States at a discount of over 85% to the blockbuster arthritis drug. Coherus is the latest to launch the biosimilar to Humira in the U.S. market this month following Boehringer Ingelheim, Sandoz and Organon OGN.N. While pills have extremely cheap generic versions, complex, expensive biologics made from living cells cannot be exactly duplicated. |
22421.0 | 2023-07-03 00:00:00 UTC | India's Biocon Biologics launches biosimilar for AbbVie's Humira in US | ABBV | https://www.nasdaq.com/articles/indias-biocon-biologics-launches-biosimilar-for-abbvies-humira-in-us | nan | nan | July 3 (Reuters) - India's Biocon Biologics BIOC.NS said on Monday it has launched a biosimilar version of AbbVie's ABBV.N blockbuster rheumatoid arthritis drug Humira in the United States.
The launch of the copycat version, branded as Hulio, adds to a list of biosimilars introduced by drugmakers on Monday by Coherus Biosciences CHRS.O and Germany's Fresenius FREG.DE. Boehringer Ingelheim and Swiss drugmaker Sandoz launched their Humira biosimilars on Saturday.
Biocon Biologics, a unit of Biocon BION.NS, said Hulio would be available at a list price of 5% below Humira's current list price. Humira comes at list price of $6,922 per carton. The biosimilar would also be available under another plan at a list price of about 85% below that of Humira.
Unlike pills, which have extremely cheap generic copies, complex, expensive biologic drugs made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
Amgen AMGN.O launched the first Humira biosimilar for the U.S. in January at 5% and 55% discounts to the branded medicine, depending on the buyer.
Lower discount plans usually are more attractive to pharmacy benefit managers, who act as middlemen between insurers and drugmakers, as they come with more rebates from the pharmaceutical companies.
Although prices usually fall when generic versions of a widely used medication enter the market, manufacturers of Humira biosimilars are likely to keep prices high to compete with one another for leverage with pharmacy benefit managers, experts have said.
AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. Until recently, it was the world's biggest-selling non-COVID prescription drug, hitting a record $21.2 billion in sales for 2022.
(Reporting by Raghav Mahobe in Bengaluru; Editing by Shailesh Kuber)
((Raghav.Mahobe@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. | July 3 (Reuters) - India's Biocon Biologics BIOC.NS said on Monday it has launched a biosimilar version of AbbVie's ABBV.N blockbuster rheumatoid arthritis drug Humira in the United States. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. The launch of the copycat version, branded as Hulio, adds to a list of biosimilars introduced by drugmakers on Monday by Coherus Biosciences CHRS.O and Germany's Fresenius FREG.DE. | July 3 (Reuters) - India's Biocon Biologics BIOC.NS said on Monday it has launched a biosimilar version of AbbVie's ABBV.N blockbuster rheumatoid arthritis drug Humira in the United States. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. The launch of the copycat version, branded as Hulio, adds to a list of biosimilars introduced by drugmakers on Monday by Coherus Biosciences CHRS.O and Germany's Fresenius FREG.DE. | July 3 (Reuters) - India's Biocon Biologics BIOC.NS said on Monday it has launched a biosimilar version of AbbVie's ABBV.N blockbuster rheumatoid arthritis drug Humira in the United States. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. Biocon Biologics, a unit of Biocon BION.NS, said Hulio would be available at a list price of 5% below Humira's current list price. | July 3 (Reuters) - India's Biocon Biologics BIOC.NS said on Monday it has launched a biosimilar version of AbbVie's ABBV.N blockbuster rheumatoid arthritis drug Humira in the United States. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. The launch of the copycat version, branded as Hulio, adds to a list of biosimilars introduced by drugmakers on Monday by Coherus Biosciences CHRS.O and Germany's Fresenius FREG.DE. |
22422.0 | 2023-07-02 00:00:00 UTC | Could This New Drug Be a Blockbuster for These 2 Pharma Collaborators? | ABBV | https://www.nasdaq.com/articles/could-this-new-drug-be-a-blockbuster-for-these-2-pharma-collaborators | nan | nan | Epcoritamab, a cancer drug co-developed by AbbVie (NYSE: ABBV) and Genmab (NASDAQ: GMAB), was recently given the green light by the Food and Drug Administration to be used as a treatment for adults with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL).
What could this news mean for patients diagnosed with R/R DLBCL? And how much of a lift in sales could it provide to the pharmaceutical companies? Let's drill down into the efficacy of epcoritamab (marketed as Epkinly) and this specific lymphoma market to find out.
A powerful treatment for a significant medical need
Of all blood cancers, lymphoma is the most common. The disease impacts lymphocytes, which are a type of white blood cell that protects the body from bacteria and viruses. Lymphoma generally happens when lymphocytes mutate, which leads to a cell replicating more rapidly than a normal lymphocyte.
While symptoms vary from patient to patient, lymphoma is often accompanied by swelling of the lymph nodes, fevers, and a lack of energy. That is why some patients initially believe they have a cold or flu that is persisting. DLBCL is the most common type of non-Hodgkin's lymphoma, accounting for around 30,000 cases in the U.S. in 2022.
The most prominent first-line treatment for patients with DLBCL is an antibody sold by Roche and Regeneron called Rituxan combined with chemotherapy. But as is the case with any treatment regimen, not all patients experience optimal outcomes from it. Approximately 40% of patients either don't get results on the treatment (e.g., a refractory case) or they relapse -- a worsening of health after an initial improvement.
The good news is that more therapies like Epkinly are making their way to the market. In its phase 1/2 clinical trial, the drug had an overall response rate of 61%. That means a significant majority of patients achieved at least some improvement in their conditions, including 38% who showed no signs of cancer after treatment. Considering that most patients (82%) enrolled in the clinical trial had no response to their prior treatment, these results are potentially game-changing.
Image source: Getty Images.
Multibillion-dollar annual sales potential
Due to Epkinly's tremendous efficacy, analysts at SVB Securities think that the drug could reach peak annual sales of $3 billion in the U.S. Given that tens of thousands of patients could benefit from treatment with Epkinly, this doesn't seem to be an unreasonable projection.
For Genmab, up to $1.5 billion in additional annual revenue would be a major shot in the arm. Analysts expect $2.3 billion in total sales from the company in 2023. And even for a larger company like AbbVie, which is forecast to have $52.7 billion in total revenue in 2023, Epkinly sales at that level would move the needle.
Investors should consider both AbbVie and Genmab
With Genmab poised to deliver 27% annualized earnings growth over the next five years, the stock looks to be a buy. This is especially the case since its forward price-to-earnings (P/E) ratio is merely 3, which is well below the drug manufacturing industry's average of about 13.
As far as AbbVie stock is concerned, it could be a no-brainer buy for income investors. This is because the Dividend King's yield at its current share prices is an S&P 500 index-tripling 4.5%, and trades at a forward P/E ratio of just 12.
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Kody Kester has positions in AbbVie. The Motley Fool has positions in and recommends Genmab A/s. 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. | Epcoritamab, a cancer drug co-developed by AbbVie (NYSE: ABBV) and Genmab (NASDAQ: GMAB), was recently given the green light by the Food and Drug Administration to be used as a treatment for adults with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). And even for a larger company like AbbVie, which is forecast to have $52.7 billion in total revenue in 2023, Epkinly sales at that level would move the needle. Investors should consider both AbbVie and Genmab With Genmab poised to deliver 27% annualized earnings growth over the next five years, the stock looks to be a buy. | And even for a larger company like AbbVie, which is forecast to have $52.7 billion in total revenue in 2023, Epkinly sales at that level would move the needle. Epcoritamab, a cancer drug co-developed by AbbVie (NYSE: ABBV) and Genmab (NASDAQ: GMAB), was recently given the green light by the Food and Drug Administration to be used as a treatment for adults with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Investors should consider both AbbVie and Genmab With Genmab poised to deliver 27% annualized earnings growth over the next five years, the stock looks to be a buy. | Epcoritamab, a cancer drug co-developed by AbbVie (NYSE: ABBV) and Genmab (NASDAQ: GMAB), was recently given the green light by the Food and Drug Administration to be used as a treatment for adults with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). Investors should consider both AbbVie and Genmab With Genmab poised to deliver 27% annualized earnings growth over the next five years, the stock looks to be a buy. And even for a larger company like AbbVie, which is forecast to have $52.7 billion in total revenue in 2023, Epkinly sales at that level would move the needle. | Epcoritamab, a cancer drug co-developed by AbbVie (NYSE: ABBV) and Genmab (NASDAQ: GMAB), was recently given the green light by the Food and Drug Administration to be used as a treatment for adults with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL). And even for a larger company like AbbVie, which is forecast to have $52.7 billion in total revenue in 2023, Epkinly sales at that level would move the needle. Investors should consider both AbbVie and Genmab With Genmab poised to deliver 27% annualized earnings growth over the next five years, the stock looks to be a buy. |
22423.0 | 2023-07-02 00:00:00 UTC | 10 Stocks You Can Buy Right Now With Dividend Yields of Over 4% | ABBV | https://www.nasdaq.com/articles/10-stocks-you-can-buy-right-now-with-dividend-yields-of-over-4 | nan | nan | Have you ever received a check in the mail for an amount that was less than the cost of the stamp? The effort to send the check really wasn't worth the trouble.
In a similar vein, some stocks offer dividends that are so puny that they don't help investors much. However, there are others that definitely make a difference. Here are 10 such dividend stocks you can buy right now with yields of over 4%.
"En and in" -- energy and infrastructure
Energy stocks and infrastructure stocks tend to pay attractive dividends. These four especially stand out, in my view.
1. Brookfield Renewable
The demand for renewable energy will almost certainly increase significantly in the coming years. Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) is preparing to meet that demand with a development pipeline capacity more than four times greater than its current operational capacity. The company's limited partnership shares (which trade under the BEP ticker) pay a dividend yield of nearly 4.6%, while its corporate entity shares (which trade under the BEPC ticker) offer a yield of close to 4.4%.
2. Cohen & Steer Infrastructure Fund
Technically, Cohen & Steers Infrastructure Fund (NYSE: UTF) isn't a dividend stock; it's a closed-end fund (CEF). However, it trades exactly as a stock does. The CEF also offers a convenient way to invest in a basket of infrastructure stocks. Best of all, its yield stands at 8.1%.
3. Devon Energy
Sure, Devon Energy's (NYSE: DVN) dividend could fluctuate somewhat. That's because the oil and gas company bases the variable portion of its dividend on how much excess free cash flow it generates. But Devon's dividend yield of nearly 9.5% looks really attractive. I don't expect its dividend to fall very much over the near term, if at all.
4. Enterprise Products Partners
Twenty-four years of consecutive distribution increases. Compound annual growth for those distributions of around 7%. And a yield of close to 7.5%. That's what you'll get by buying shares of Enterprise Products Partners (NYSE: EPD). The midstream energy company operates over 50,000 miles of pipelines that produce steady revenue regardless of what oil and gas prices are.
Follow the money
Remember the old adage, "It takes money to make money"? These companies have plenty of money to lend to borrowers -- and pay handsome dividends to income investors.
5. Ares Capital
Business development companies (BDCs) provide financing to small-to-medium-sized businesses. Ares Capital (NASDAQ: ARCC) ranks as the biggest publicly traded BDC. With its long track record of beating the market and its juicy dividend yield of nearly 10.3%, I'd argue that Ares Capital is also the best BDC stock out there.
6. M&T Bank
The failure of several U.S. banks has taken a steep toll on M&T Bank (NYSE: MTB) stock. However, that decline has pushed the bank's dividend yield to over 4.1%. Meanwhile, M&T's profits continue to grow. Its balance sheet looks solid. Once the dust settles from the banking crisis, I think the stock should rebound nicely.
To your health
Income investors can find many stocks to like in the healthcare sector. These two big pharmaceutical stocks rank among the best.
7. AbbVie
AbbVie (NYSE: ABBV) has increased its dividend for a remarkable 51 consecutive years. Its dividend yield currently stands at nearly 4.5%. Although the company faces some temporary headwinds as sales of its top-selling drug Humira decline, its long-term prospects remain good.
8. Pfizer
COVID-19 vaccine Comirnaty and antiviral therapy Paxlovid turbocharged Pfizer's (NYSE: PFE) revenue and profits over the last few years. While sales of these products are falling, Pfizer still expects to deliver solid growth throughout this decade thanks in large part to its new product launches and acquisitions. In the meantime, the drugmaker's dividend yields more than 4.5%.
Wireless winners
The demand for wireless services should grow with the broad adoption of 5G networks and the rise of the Internet of Things. Two great dividend payers should benefit from this trend.
9. Crown Castle
Crown Castle (NYSE: CCI) is a real estate investment trust (REIT) that owns cell towers and small cells (antennas on existing structures that provide wireless access in high-demand areas). Its dividend yield currently tops 5.5%.
10. Verizon Communications
Don't worry about Verizon Communications' (NYSE: VZ) declining free cash flow. The telecom giant should see its free cash flow improve significantly in the coming quarters as its capital spending declines. Income investors should be able to count on Verizon's attractive dividend, which yields 7.1% right now.
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Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, Cohen & Steers Infrastructure Fund, Devon Energy, Enterprise Products Partners, and Pfizer. The Motley Fool has positions in and recommends Brookfield Renewable, Crown Castle, and Pfizer. The Motley Fool recommends Brookfield Renewable Partners, Enterprise Products Partners, and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend for a remarkable 51 consecutive years. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, Cohen & Steers Infrastructure Fund, Devon Energy, Enterprise Products Partners, and Pfizer. The midstream energy company operates over 50,000 miles of pipelines that produce steady revenue regardless of what oil and gas prices are. | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, Cohen & Steers Infrastructure Fund, Devon Energy, Enterprise Products Partners, and Pfizer. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for a remarkable 51 consecutive years. Cohen & Steer Infrastructure Fund Technically, Cohen & Steers Infrastructure Fund (NYSE: UTF) isn't a dividend stock; it's a closed-end fund (CEF). | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, Cohen & Steers Infrastructure Fund, Devon Energy, Enterprise Products Partners, and Pfizer. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for a remarkable 51 consecutive years. "En and in" -- energy and infrastructure Energy stocks and infrastructure stocks tend to pay attractive dividends. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend for a remarkable 51 consecutive years. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, Cohen & Steers Infrastructure Fund, Devon Energy, Enterprise Products Partners, and Pfizer. Here are 10 such dividend stocks you can buy right now with yields of over 4%. |
22424.0 | 2023-07-01 00:00:00 UTC | Organon, Samsung Bioepis launch copycat for arthritis drug Humira at 85% discount | ABBV | https://www.nasdaq.com/articles/organon-samsung-bioepis-launch-copycat-for-arthritis-drug-humira-at-85-discount | nan | nan | By Patrick Wingrove
July 1 (Reuters) - Drugmaker partners Organon and Samsung Bioepis said on Saturday that they had launched a far cheaper copycat version of AbbVie’s ABBV.N blockbuster arthritis drug Humira, while two other drugmakers entered the market with much more modest discounts to the branded medicine's list price.
The copycat drug called Hadlima will be listed at $1,038 per month, representing an 85% discount of Humira’s current $6,922 monthly price, the companies said.
Swiss drugmaker Sandoz also said on Saturday that it had launched a Humira biosimilar, Hyrimoz, at a 5% discount to the branded medicine's price, as well as an unbranded version of Humira at an 81% discount.
Germany-based Boehringer Ingelheim later said it released its rival version of Humira, Cyltezo, at a 5% to 7% price cut from the list price of the branded medicine.
Unlike pills, which have extremely cheap generic copies, complex, expensive biologic drugs made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
Organon and Samsung Bioepis did not say if they had struck deals with pharmacy benefit managers (PBMs), which negotiate insurance coverage on behalf of large employers and health insurance plans, to secure reimbursement of Hadlima for patients.
Three PBMs -- CVS Health Corp (CVS.N), Cigna Group's (CI.N) Express Scripts and UnitedHealth Group's (UNH.N) Optum RX -- together control 80% of the U.S. prescription drug market.
Healthcare experts predicted some Humira biosimilars would debut with a small discount to appeal to pharmacy benefit managers. Some of their fees are a percentage of the savings they negotiate and the PBMs are expected to win significant discounts from the announced prices for health plans.
In an interview with Reuters, Organon Chief Executive Officer Kevin Ali said the drugmakers that did not make PBM deals for their Humira biosimilars this year would fight it out over the next six months for insurance coverage in 2024.
“Right now, it's really about what I would consider the race to getting on (PBM) formularies,” he said.
Hadlima was approved by the U.S. Food and Drug Administration in 2019, but the terms of a legal settlement with AbbVie restricted the companies from offering it in the U.S.
Thousand Oaks, California-based Amgen AMGN.O launched the first Humira biosimilar for the U.S. in January at 5% and 55% discounts to the branded medicine, depending on the buyer.
California drugmaker Coherus BioSciences CHRS.O said last month that it planned to launch its biosimilar in partnership with billionaire Mark Cuban at an 85% discount.
AbbVie sued the company, accusing it of breaching the agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the U.S. from July 1.
(Reporting by Patrick Wingrove; Editing by Cynthia Osterman)
((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. | AbbVie sued the company, accusing it of breaching the agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the U.S. from July 1. By Patrick Wingrove July 1 (Reuters) - Drugmaker partners Organon and Samsung Bioepis said on Saturday that they had launched a far cheaper copycat version of AbbVie’s ABBV.N blockbuster arthritis drug Humira, while two other drugmakers entered the market with much more modest discounts to the branded medicine's list price. Hadlima was approved by the U.S. Food and Drug Administration in 2019, but the terms of a legal settlement with AbbVie restricted the companies from offering it in the U.S. | By Patrick Wingrove July 1 (Reuters) - Drugmaker partners Organon and Samsung Bioepis said on Saturday that they had launched a far cheaper copycat version of AbbVie’s ABBV.N blockbuster arthritis drug Humira, while two other drugmakers entered the market with much more modest discounts to the branded medicine's list price. Hadlima was approved by the U.S. Food and Drug Administration in 2019, but the terms of a legal settlement with AbbVie restricted the companies from offering it in the U.S. AbbVie sued the company, accusing it of breaching the agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the U.S. from July 1. | By Patrick Wingrove July 1 (Reuters) - Drugmaker partners Organon and Samsung Bioepis said on Saturday that they had launched a far cheaper copycat version of AbbVie’s ABBV.N blockbuster arthritis drug Humira, while two other drugmakers entered the market with much more modest discounts to the branded medicine's list price. Hadlima was approved by the U.S. Food and Drug Administration in 2019, but the terms of a legal settlement with AbbVie restricted the companies from offering it in the U.S. AbbVie sued the company, accusing it of breaching the agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the U.S. from July 1. | By Patrick Wingrove July 1 (Reuters) - Drugmaker partners Organon and Samsung Bioepis said on Saturday that they had launched a far cheaper copycat version of AbbVie’s ABBV.N blockbuster arthritis drug Humira, while two other drugmakers entered the market with much more modest discounts to the branded medicine's list price. Hadlima was approved by the U.S. Food and Drug Administration in 2019, but the terms of a legal settlement with AbbVie restricted the companies from offering it in the U.S. AbbVie sued the company, accusing it of breaching the agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the U.S. from July 1. |
22425.0 | 2023-07-01 00:00:00 UTC | Sandoz launches rival version of AbbVie's arthritis drug Humira | ABBV | https://www.nasdaq.com/articles/sandoz-launches-rival-version-of-abbvies-arthritis-drug-humira | nan | nan | July 1 (Reuters) - Swiss drugmaker Sandoz said on Saturday it had launched a biosimilar version of AbbVie Inc's ABBV.N big selling arthritis treatment Humira, adding to U.S. competition for the drug that started in January.
The Novartis NOVN.S-owned company said its drug, Hyrimoz, will be priced at a 5% discount off Humira’s current list price of $6,922 per month, but that it was also offering an unbranded version of Humira at an 81% discount.
Healthcare experts have said that drugmakers will probably launch their Humira biosimilars with small discounts to appeal to pharmacy benefit managers, which take some of their fees as a percentage of the discounts they negotiate on behalf of their customers - large employers and health insurance plans.
The lower-priced version may attract healthcare systems that act as both an insurer and a provider and typically do not seek after-market discounts, as pharmacy benefit managers do.
Biosimilars are developed to work like an original, branded biotech drug, but are not necessarily exact copies, like traditional generic medicines, because they are cultivated in living cells.
Rival Amgen Inc AMGN.O was the first to launch a biosimilar of Humira earlier this year, which debuted at a 5% and 55% discount to Humira, depending on who was purchasing.
At least nine copies of Humira, which also treats conditions like ulcerative colitis and psoriasis, from companies including Pfizer Inc PFE.N and South Korea's Celltrion 068270.KS are expected to be available in the United States by the end of the year.
(Reporting by Patrick Wingrove; Editing by Edwina Gibbs)
((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. | July 1 (Reuters) - Swiss drugmaker Sandoz said on Saturday it had launched a biosimilar version of AbbVie Inc's ABBV.N big selling arthritis treatment Humira, adding to U.S. competition for the drug that started in January. Biosimilars are developed to work like an original, branded biotech drug, but are not necessarily exact copies, like traditional generic medicines, because they are cultivated in living cells. At least nine copies of Humira, which also treats conditions like ulcerative colitis and psoriasis, from companies including Pfizer Inc PFE.N and South Korea's Celltrion 068270.KS are expected to be available in the United States by the end of the year. | July 1 (Reuters) - Swiss drugmaker Sandoz said on Saturday it had launched a biosimilar version of AbbVie Inc's ABBV.N big selling arthritis treatment Humira, adding to U.S. competition for the drug that started in January. Healthcare experts have said that drugmakers will probably launch their Humira biosimilars with small discounts to appeal to pharmacy benefit managers, which take some of their fees as a percentage of the discounts they negotiate on behalf of their customers - large employers and health insurance plans. The lower-priced version may attract healthcare systems that act as both an insurer and a provider and typically do not seek after-market discounts, as pharmacy benefit managers do. | July 1 (Reuters) - Swiss drugmaker Sandoz said on Saturday it had launched a biosimilar version of AbbVie Inc's ABBV.N big selling arthritis treatment Humira, adding to U.S. competition for the drug that started in January. The Novartis NOVN.S-owned company said its drug, Hyrimoz, will be priced at a 5% discount off Humira’s current list price of $6,922 per month, but that it was also offering an unbranded version of Humira at an 81% discount. Healthcare experts have said that drugmakers will probably launch their Humira biosimilars with small discounts to appeal to pharmacy benefit managers, which take some of their fees as a percentage of the discounts they negotiate on behalf of their customers - large employers and health insurance plans. | July 1 (Reuters) - Swiss drugmaker Sandoz said on Saturday it had launched a biosimilar version of AbbVie Inc's ABBV.N big selling arthritis treatment Humira, adding to U.S. competition for the drug that started in January. The Novartis NOVN.S-owned company said its drug, Hyrimoz, will be priced at a 5% discount off Humira’s current list price of $6,922 per month, but that it was also offering an unbranded version of Humira at an 81% discount. Healthcare experts have said that drugmakers will probably launch their Humira biosimilars with small discounts to appeal to pharmacy benefit managers, which take some of their fees as a percentage of the discounts they negotiate on behalf of their customers - large employers and health insurance plans. |
22426.0 | 2023-06-30 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-6 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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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. |
22427.0 | 2023-06-30 00:00:00 UTC | Immunome Pops on Compelling Merger Agreement | ABBV | https://www.nasdaq.com/articles/immunome-pops-on-compelling-merger-agreement | nan | nan | Though the Thursday session ended on a soft note for Wall Street, aspirational biopharmaceutical firm Immunome (US:IMNM) enjoyed a dramatic leap higher, with INMN stock gaining over 30% against the prior day’s close. Undergirding the extreme positive sentiment was a merger agreement with Morphimmune, a privately held biotechnology company focused on developing targeted oncology therapeutics.
Fundamentally, the joining of forces should bolster Immunome’s ambitions to improve patient care for those suffering from cancers and infectious diseases that lack viable therapeutic options. Specifically, Immunome leverages the information stored in memory B cells -- or a type of white blood cell of the lymphocyte subtype -- to guide discovery of first-in-class antibody therapeutics.
Scientists have discovered that “…immunological memory for many infectious diseases is acquired after a single infection and is dependent on the acquisition of two main ‘walls’ of memory; namely, long-lived plasma cells that produce protective antibodies and memory B cells that are able to respond on reinfection to pathogens and their variants,” according to a December 2019 Nature Reviews Immunology article.
Significantly, memory B cells may offer a potential solution in helping the human immune system fight cancer. According to Immunome’s investor presentation, cancer cells modify their microenvironment to facilitate fertile ground for tumor growth. Under the context of this environment, the immune system delivers a coordinated, time-dependent attack. Here, memory B cells record important attack point targets for antibodies, thus possibly empowering precision-based oncology.
'Mighty Merger'
Chardan senior research analyst Matthew Barcus, PhD, was out with a note to clients late Thursday that called the tie-up a "mighty merger." "We are optimistic about the strategic business combination as it significantly expands Immunome's capabilities in tackling cancer," he wrote.
To be sure, the deal is not without its shortcomings. Barcus noted that "although the merged company currently lacks active clinical programs, it has ambitious plans to file three INDs (Investigational New Drug applications) in the near future. C
Chardan has IMNM stock as a 'buy' with an $8 per share target.
Screener Surface
Given the promising blue-sky opportunity undergirding INMN stock, Immunome surface on Fintel’s screener for unusual stock options volume. Specifically, call volume hit 2,421 contracts against an open interest reading of 228. On average, call volume reaches only 2 contracts.
Looking to the other side of the equation, put volume mustered a comparatively soft 366 contracts against open interest of 374. Typically, put volume only reaches 5 contracts.
At last look, the put/call ratio for IMNM stock stands at 1.64, which has less-than-positive implications, since puts generally represent pessimistic sentiment. However, eagerness for Immunome in the open market is palpable, with shares skyrocketing over 136% on a year-to-date basis.
Fundamentally, the small biopharma company -- which only carries a market capitalization just north of $94 million at time of writing -- benefits from credible and lucrative partnerships. According to Immunome’s first quarter of 2023 earnings report, the enterprise announced a strategic collaboration with AbbVie (US:ABBV) to discover multiple novel oncology targets.
Finally, data from The Wall Street Journal reveals that up to a month ago, no analyst covered IMNM stock. However, in the current month, one expert assessed shares as a buy. With Immunome up nearly 140% in the past 365 days, more experts may consider the risky but enticing opportunity.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to Immunome’s first quarter of 2023 earnings report, the enterprise announced a strategic collaboration with AbbVie (US:ABBV) to discover multiple novel oncology targets. Though the Thursday session ended on a soft note for Wall Street, aspirational biopharmaceutical firm Immunome (US:IMNM) enjoyed a dramatic leap higher, with INMN stock gaining over 30% against the prior day’s close. Fundamentally, the joining of forces should bolster Immunome’s ambitions to improve patient care for those suffering from cancers and infectious diseases that lack viable therapeutic options. | According to Immunome’s first quarter of 2023 earnings report, the enterprise announced a strategic collaboration with AbbVie (US:ABBV) to discover multiple novel oncology targets. Fundamentally, the joining of forces should bolster Immunome’s ambitions to improve patient care for those suffering from cancers and infectious diseases that lack viable therapeutic options. Screener Surface Given the promising blue-sky opportunity undergirding INMN stock, Immunome surface on Fintel’s screener for unusual stock options volume. | According to Immunome’s first quarter of 2023 earnings report, the enterprise announced a strategic collaboration with AbbVie (US:ABBV) to discover multiple novel oncology targets. Though the Thursday session ended on a soft note for Wall Street, aspirational biopharmaceutical firm Immunome (US:IMNM) enjoyed a dramatic leap higher, with INMN stock gaining over 30% against the prior day’s close. Scientists have discovered that “…immunological memory for many infectious diseases is acquired after a single infection and is dependent on the acquisition of two main ‘walls’ of memory; namely, long-lived plasma cells that produce protective antibodies and memory B cells that are able to respond on reinfection to pathogens and their variants,” according to a December 2019 Nature Reviews Immunology article. | According to Immunome’s first quarter of 2023 earnings report, the enterprise announced a strategic collaboration with AbbVie (US:ABBV) to discover multiple novel oncology targets. Significantly, memory B cells may offer a potential solution in helping the human immune system fight cancer. C Chardan has IMNM stock as a 'buy' with an $8 per share target. |
22428.0 | 2023-06-30 00:00:00 UTC | ANALYSIS-New Humira rivals likely to hit US market with small discounts in July | ABBV | https://www.nasdaq.com/articles/analysis-new-humira-rivals-likely-to-hit-us-market-with-small-discounts-in-july | nan | nan | By Patrick Wingrove
NEW YORK, June 30 (Reuters) - At least four drugmakers are expected to launch new copycat versions of AbbVie's ABBV.N top-selling rheumatoid arthritis drug, Humira, over the next week, but experts expect little change in prices for the treatment even with the new competition.
Drugmakers Boehringer Ingelheim, Sandoz and Organon are expected to launch their biosimilars on Saturday, adding to U.S. competition for the drug that started when Amgen AMGN.O released its copy in January. Germany's Fresenius FREG.DE plans to release its copycat version on Monday, according to the company.
Usually prices fall, often dramatically, when multiple generic versions of a widely used medication enter market.
But manufacturers of Humira biosimilars - the name for copies of biologic drugs - are likely to keep prices high to compete with one another for leverage with pharmacy benefit managers (PBMs), which negotiate insurance coverage on behalf of their customers - large employers and health insurance plans, industry experts said.
PBMs have come under increasing scrutiny for taking some of their fees as a percentage of the discounts they negotiate for drugs that they cover, which some lawmakers have said can lead them to favor higher-priced medicines in their negotiations.
In all, at least nine copies of Humira, which also treats conditions like ulcerative colitis and psoriasis, from companies including Pfizer PFE.N and South Korea's Celltrion 068270.KS are expected to be available in the United States by the end of the year.
Most of the new biosimilars are expected to debut with marginal discounts to Humira's monthly price of $6,922. Boehringer Ingelheim executive Stephen Pagnotta said the company’s Humira copy, Cyltezo, will be priced similarly to the branded product.
The two Humira biosimilar makers that spoke to Reuters would not comment on their pricing strategies.
Coherus BioSciences CHRS.O, a California-based drugmaker, is fighting AbbVie in court to launch its biosimilar in partnership with billionaire Mark Cuban at an 85% discount.
Robert Popovian, the chief science policy officer at patient advocacy group Global Healthy Living Foundation, said: "I don’t foresee anyone changing their pricing policy," but added that PBMs might face political pressure to cover Coherus' significantly discounted copy.
"Cuban has a big presence," he said, "and it will be difficult for PBMs to explain why they are not covering the product that is 85% lower in price."
Even if PBMs secure discounts for the health plans they represent on the high-priced Humira biosimilars, patients who pay co-insurance costs out of pocket will probably lose out, said Vanderbilt University Professor Stacie Dusetzina.
"The thing that is really upsetting is because patients often pay based on the list price for these higher-priced drugs, they wouldn't get that price relief, even if the plans are getting the price relief," she said.
Until recently, Humira was the world’s biggest-selling non-COVID prescription drug, hitting a record $21.2 billion in sales for 2022.
Humira cost the U.S. government more than $2.9 billion in 2021, according to data from the agency that runs the Medicare and Medicaid health programs. It is expected to be excluded from government drug price negotiations that start later this year because rival medicines are now on the market.
AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. Analysts predict that sales of Humira will fall to $14.1 billion this year, before dropping to $8.7 billion in 2024 and $6.1 billion the following year, according to Refinitiv data.
The market share each of the biosimilar makers capture will be determined in part by the deals they strike with PBMs like CVS Health Corp CVS.N, Cigna Group's CI.N Express Scripts, and UnitedHealth Group's UNH.N Optum RX, which together control 80% of the prescription drug market.
The Pharmaceutical Care Management Association, which represents these PBMs, declined to comment on the potential prices of the Humira copies. CVS said only drugmakers can set the prices for their drugs.
More U.S. competition arriving for AbbVie's Humira/span https://tmsnrt.rs/44o0Gnv
(Reporting by Patrick Wingrove in New York Editing by Michele Gershberg and Matthew Lewis)
((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 NEW YORK, June 30 (Reuters) - At least four drugmakers are expected to launch new copycat versions of AbbVie's ABBV.N top-selling rheumatoid arthritis drug, Humira, over the next week, but experts expect little change in prices for the treatment even with the new competition. Coherus BioSciences CHRS.O, a California-based drugmaker, is fighting AbbVie in court to launch its biosimilar in partnership with billionaire Mark Cuban at an 85% discount. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. | By Patrick Wingrove NEW YORK, June 30 (Reuters) - At least four drugmakers are expected to launch new copycat versions of AbbVie's ABBV.N top-selling rheumatoid arthritis drug, Humira, over the next week, but experts expect little change in prices for the treatment even with the new competition. Coherus BioSciences CHRS.O, a California-based drugmaker, is fighting AbbVie in court to launch its biosimilar in partnership with billionaire Mark Cuban at an 85% discount. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. | By Patrick Wingrove NEW YORK, June 30 (Reuters) - At least four drugmakers are expected to launch new copycat versions of AbbVie's ABBV.N top-selling rheumatoid arthritis drug, Humira, over the next week, but experts expect little change in prices for the treatment even with the new competition. Coherus BioSciences CHRS.O, a California-based drugmaker, is fighting AbbVie in court to launch its biosimilar in partnership with billionaire Mark Cuban at an 85% discount. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. | By Patrick Wingrove NEW YORK, June 30 (Reuters) - At least four drugmakers are expected to launch new copycat versions of AbbVie's ABBV.N top-selling rheumatoid arthritis drug, Humira, over the next week, but experts expect little change in prices for the treatment even with the new competition. Coherus BioSciences CHRS.O, a California-based drugmaker, is fighting AbbVie in court to launch its biosimilar in partnership with billionaire Mark Cuban at an 85% discount. AbbVie has forecast a 37% drop in Humira sales in 2023 due to competition. |
22429.0 | 2023-06-30 00:00:00 UTC | Bausch + Lomb to buy Novartis dry-eye drug for $1.75 bln - WSJ | ABBV | https://www.nasdaq.com/articles/bausch-lomb-to-buy-novartis-dry-eye-drug-for-%241.75-bln-wsj | nan | nan | Adds background throughout
June 30 (Reuters) - Bausch + Lomb Corp BLCO.TO will purchase a dry-eye drug from Swiss pharma company Novartis NOVN.S for $1.75 billion, the Wall Street Journal reported on Friday, as the contact lens maker seeks to capitalise on a growing market for the disease's treatment.
Acquisition of the drug, Xiidra, will mark the first big deal by CEO Brent Saunders since he returned to the company in March.
Sales of the anti-inflammation eye drop Xiidra, mainly from the U.S. market, were $487 million last year, up 4%. It faces competition from AbbVie's ABBV.N Restasis and cheaper copycat versions.
A spokesperson for Novartis declined to comment, while Bausch + Lomb did not immediately respond to a Reuters request for comment.
(Reporting by Leroy Leo in Bengaluru and Ludwig Burger in Frankfurt; Editing by Anil D'Silva and Vinay Dwivedi)
((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. | It faces competition from AbbVie's ABBV.N Restasis and cheaper copycat versions. Adds background throughout June 30 (Reuters) - Bausch + Lomb Corp BLCO.TO will purchase a dry-eye drug from Swiss pharma company Novartis NOVN.S for $1.75 billion, the Wall Street Journal reported on Friday, as the contact lens maker seeks to capitalise on a growing market for the disease's treatment. Acquisition of the drug, Xiidra, will mark the first big deal by CEO Brent Saunders since he returned to the company in March. | It faces competition from AbbVie's ABBV.N Restasis and cheaper copycat versions. Adds background throughout June 30 (Reuters) - Bausch + Lomb Corp BLCO.TO will purchase a dry-eye drug from Swiss pharma company Novartis NOVN.S for $1.75 billion, the Wall Street Journal reported on Friday, as the contact lens maker seeks to capitalise on a growing market for the disease's treatment. Acquisition of the drug, Xiidra, will mark the first big deal by CEO Brent Saunders since he returned to the company in March. | It faces competition from AbbVie's ABBV.N Restasis and cheaper copycat versions. Adds background throughout June 30 (Reuters) - Bausch + Lomb Corp BLCO.TO will purchase a dry-eye drug from Swiss pharma company Novartis NOVN.S for $1.75 billion, the Wall Street Journal reported on Friday, as the contact lens maker seeks to capitalise on a growing market for the disease's treatment. (Reporting by Leroy Leo in Bengaluru and Ludwig Burger in Frankfurt; Editing by Anil D'Silva and Vinay Dwivedi) ((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. | It faces competition from AbbVie's ABBV.N Restasis and cheaper copycat versions. Adds background throughout June 30 (Reuters) - Bausch + Lomb Corp BLCO.TO will purchase a dry-eye drug from Swiss pharma company Novartis NOVN.S for $1.75 billion, the Wall Street Journal reported on Friday, as the contact lens maker seeks to capitalise on a growing market for the disease's treatment. Acquisition of the drug, Xiidra, will mark the first big deal by CEO Brent Saunders since he returned to the company in March. |
22430.0 | 2023-06-30 00:00:00 UTC | Notable Friday Option Activity: ABBV, TWLO, UNH | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-abbv-twlo-unh | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,753 contracts have traded so far, representing approximately 3.5 million underlying shares. That amounts to about 55% of ABBV's average daily trading volume over the past month of 6.3 million shares. Particularly high volume was seen for the $140 strike call option expiring January 19, 2024, with 7,855 contracts trading so far today, representing approximately 785,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange:
Twilio Inc (Symbol: TWLO) saw options trading volume of 17,797 contracts, representing approximately 1.8 million underlying shares or approximately 53.9% of TWLO's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $70 strike call option expiring July 21, 2023, with 1,386 contracts trading so far today, representing approximately 138,600 underlying shares of TWLO. Below is a chart showing TWLO's trailing twelve month trading history, with the $70 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 22,822 contracts, representing approximately 2.3 million underlying shares or approximately 51.6% of UNH's average daily trading volume over the past month, of 4.4 million shares. Especially high volume was seen for the $480 strike call option expiring June 30, 2023, with 1,861 contracts trading so far today, representing approximately 186,100 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $480 strike highlighted in orange:
For the various different available expirations for ABBV options, TWLO options, or UNH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $140 strike call option expiring January 19, 2024, with 7,855 contracts trading so far today, representing approximately 785,500 underlying shares of ABBV. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,753 contracts have traded so far, representing approximately 3.5 million underlying shares. That amounts to about 55% of ABBV's average daily trading volume over the past month of 6.3 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange: Twilio Inc (Symbol: TWLO) saw options trading volume of 17,797 contracts, representing approximately 1.8 million underlying shares or approximately 53.9% of TWLO's average daily trading volume over the past month, of 3.3 million shares. Below is a chart showing UNH's trailing twelve month trading history, with the $480 strike highlighted in orange: For the various different available expirations for ABBV options, TWLO options, or UNH options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,753 contracts have traded so far, representing approximately 3.5 million underlying shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,753 contracts have traded so far, representing approximately 3.5 million underlying shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange: Twilio Inc (Symbol: TWLO) saw options trading volume of 17,797 contracts, representing approximately 1.8 million underlying shares or approximately 53.9% of TWLO's average daily trading volume over the past month, of 3.3 million shares. That amounts to about 55% of ABBV's average daily trading volume over the past month of 6.3 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange: Twilio Inc (Symbol: TWLO) saw options trading volume of 17,797 contracts, representing approximately 1.8 million underlying shares or approximately 53.9% of TWLO's average daily trading volume over the past month, of 3.3 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,753 contracts have traded so far, representing approximately 3.5 million underlying shares. That amounts to about 55% of ABBV's average daily trading volume over the past month of 6.3 million shares. |
22431.0 | 2023-06-30 00:00:00 UTC | Sigilon (SGTX) Skyrockets 441% on Buyout Offer From Eli Lilly | ABBV | https://www.nasdaq.com/articles/sigilon-sgtx-skyrockets-441-on-buyout-offer-from-eli-lilly | nan | nan | Shares of Sigilon Therapeutics SGTX surged 440.9% on Jun 29, after the company announced that it has signed a definitive agreement with Eli Lilly LLY. Lilly will acquire all the outstanding shares of Sigilon for an upfront payment of $14.92 per share in cash, aggregating to $34.6 million.
Existing shareholders will also be eligible to receive one non-tradeable contingent value right (“CVR”) per share, which will entitle the holder to receive up to $111.64 per share. This CVR, which is tied to clinical and regulatory milestones, brings the total value of the deal up to $309.6 million. Per the terms of the agreement, the CVR holders would be entitled to receive contingent payments of $4.06 per share in cash upon first dosing of a specified product in the first human clinical study, $26.39 per share in cash in the first human clinical study for registration and $81.19 per share in cash upon receipt of the first regulatory approval of a specified product.
This acquisition deal is an extension of an agreement entered between the companies in 2018 to jointly develop encapsulated cell therapies for treating type 1 diabetes (“T1D”). Using these therapies, Lilly intends to develop novel therapies that free patients from constant disease management by sensing blood glucose levels, restoring insulin production and releasing it over the long term.
Sigilon’s most advanced pipeline candidate is SIG-002, an islet cell therapy solution, which is being developed in collaboration with Lilly as a potential treatment for T1D. Management intends to submit an investigational new drug (IND) application to the FDA for SIG-002 next year to start clinical studies on the same.
The transaction, expected to be completed by third-quarter 2023, is subject to customary closing conditions and clearance from the regulatory authorities. The board of directors of Eli Lilly and Sigilon Therapeutics have also given their approval to this transaction.
In the year so far, shares of Sigilon Therapeutics have surged 364.7% against the industry’s 3.4% fall.
Image Source: Zacks Investment Research
Sigilon Therapeutics is a preclinical-stage biotechnology company that utilizes its proprietary Shielded Living Therapeutics (“SLTx”) platform to develop new molecule therapies for patients with acute and chronic diseases. The company, which currently lacks a steady stream of revenues due to a lack of approved drugs, is entirely dependent on its pipeline for growth.
An acquisition by a big pharma giant like Lilly, which has high reserves of cash flow, would allow the company to ramp up the development of its pipeline.Once the pipeline candidates are approved for marketing, Sigilon Therapeutics will have access to Lilly’s larger and well-established commercial supply chain and network distribution.
The acquisition is also a strategic fit for Lilly’s existing business since it helps focus on developing long-terms solutions to diseases like T1D. Eli Lilly has a strong portfolio of medicines to treat diabetes that includes drugs like Tradjenta, Jardiance, Trulicity, Synjardy, Glyxambi, Trijardy XR and Basaglar (basal insulin).
Sigilon Therapeutics, Inc. Price
Sigilon Therapeutics, Inc. price | Sigilon Therapeutics, Inc. Quote
Zacks Rank & Other Stocks to Consider
Sigilon currently carries a Zacks Rank #2 (Buy). Some other top-ranked stock in the overall healthcare sector are AbbVie ABBV and Novartis NVS, which also carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.95 to $10.99 and $11.02 to $11.04, respectively. Shares of AbbVie are down 17.6% in the year-to-date period.
Earnings of AbbVie beat estimates in each of the last four quarters, witnessing an average earnings surprise of 1.78%.
In the past 60 days, the estimate for Novartis’ 2023 and 2024 EPS have increased from $6.60 to $6.74 and $7.11 to $7.28, respectively. Shares of Novartis are up 9.5% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.15%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stock in the overall healthcare sector are AbbVie ABBV and Novartis NVS, which also carry a Zacks Rank #2. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.95 to $10.99 and $11.02 to $11.04, respectively. Shares of AbbVie are down 17.6% in the year-to-date period. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Sigilon Therapeutics, Inc. (SGTX) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stock in the overall healthcare sector are AbbVie ABBV and Novartis NVS, which also carry a Zacks Rank #2. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.95 to $10.99 and $11.02 to $11.04, respectively. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Sigilon Therapeutics, Inc. (SGTX) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stock in the overall healthcare sector are AbbVie ABBV and Novartis NVS, which also carry a Zacks Rank #2. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.95 to $10.99 and $11.02 to $11.04, respectively. | Some other top-ranked stock in the overall healthcare sector are AbbVie ABBV and Novartis NVS, which also carry a Zacks Rank #2. In the past 60 days, the estimate for AbbVie’s 2023 and 2024 EPS have increased from $10.95 to $10.99 and $11.02 to $11.04, respectively. Shares of AbbVie are down 17.6% in the year-to-date period. |
22432.0 | 2023-06-30 00:00:00 UTC | The 3 Most Undervalued Pharma Stocks to Buy Now: June 2023 | ABBV | https://www.nasdaq.com/articles/the-3-most-undervalued-pharma-stocks-to-buy-now%3A-june-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Pharmaceutical stocks have not shared in this year’s bull rally. Year to date, the S&P Pharmaceuticals Select Industry index is down 1% while the benchmark S&P 500 index has gained 15%. After a strong run during the pandemic when Covid-19 vaccines started being developed, pharma stocks appear to now be taking a breather. With a few exceptions, most major pharmaceutical stocks are down by double digits this year.
There are many reasons for the poor performances including the declining sales of Covid-19 treatments, some blockbuster medications losing their patent protections and a slowing economy that could fall into a recession. Whatever the reasons, the decline has led to many pharma stocks becoming undervalued, presenting an opportunity for investors. Here are the three most undervalued pharma stock to buy now in June 2023.
Eli Lilly (LLY)
Source: Jonathan Weiss / Shutterstock.com
It might not be undervalued per se, but pharmaceutical giant Eli Lilly’s (NYSE:LLY) stock has more runway ahead. Up 42% in the last 12 months, including a 27% gain this year, LLY stock looks a little pricey with a price-earnings (PE) ratio of 73. However, it might be worth paying a premium for the stock given its growth potential. Eli Lilly’s share price has a huge catalyst in the form of Mounjaro, a medication that treats Type 2 Diabetes and has also been found to cause dramatic weight loss, opening the door for it to be used to also treat obesity.
Each study released concerning Mounjaro appears to be better than the previous one. Eli Lilly is waiting on approval from the U.S. Food and Drug Administration (FDA) to begin selling Mounjaro as a weight loss treatment, but it is already advertising the medication for Diabetes patients and it is going full force producing the drug in anticipation of getting a greenlight from the FDA later this year. Conservative estimates say that Mounjaro could generate sales of $25 billion for Eli Lilly. This makes LLY stock a buy.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
A more obvious undervalued pharma stock is AbbVie (NYSE:ABBV). The company behind the blockbuster drug Humira which is used to treat autoimmune diseases such as rheumatoid arthritis and Crohn’s disease has seen its stock decline 18% this year. The share price is currently trading 25% below its all-time high reached in April 2022. A price-to-earnings ratio of 31 makes the stock seem fairly valued, and shareholders benefit from a hearty dividend that yields 4.45% or $1.48 a share each quarter.
The reason for the slide in ABBV stock is that the company lost patent exclusivity for Humira earlier this year, a situation that is expected to hurt sales and earnings moving forward. There have also been reports of executives at AbbVie selling their stock in the company, with Chief Commercial Officer Jeffrey Stewart selling $4.8 million worth of shares throughout the last 12 months. These events have pushed many investors to the sidelines. However, the decline in ABBV stock has created a buying opportunity for investors who want undervalued pharma stocks.
Merck & Co. (MRK)
Source: JHVEPhoto / Shutterstock.com
Pharma company Merck & Co.’s (NYSE:MRK) stock looks ripe for the picking. Best known for the cancer treatment Keytruda and the HPV vaccine Gardasil, Merck & Co’s stock is flat on the year (up 1%) and it has an attractive P/E ratio of 22, which is low for a company that has a market capitalization of nearly $300 billion. MRK stock also pays a healthy dividend that yields 2.58% or 73 cents a share per quarter. Over five years, MRK stock has nearly doubled, having gained 95% since June 2018.
The reasons for this year’s lackluster performance is declining sales of the company’s Covid-19 antiviral pill called Lagevrio. Slowing sales of the Covid pill dragged Merck’s revenues down 9% to $14.5 billion in this year’s first quarter, which gave analysts and investors some pause. However, long-term, Merck & Co. remains a leading global pharmaceutical company with annual sales of more than $40 billion. The company also has a healthy pipeline of new medications and several blockbuster drugs that remain under patent protection.
On the date of publication, Joel Baglole held a long position in LLY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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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 reason for the slide in ABBV stock is that the company lost patent exclusivity for Humira earlier this year, a situation that is expected to hurt sales and earnings moving forward. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A more obvious undervalued pharma stock is AbbVie (NYSE:ABBV). There have also been reports of executives at AbbVie selling their stock in the company, with Chief Commercial Officer Jeffrey Stewart selling $4.8 million worth of shares throughout the last 12 months. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A more obvious undervalued pharma stock is AbbVie (NYSE:ABBV). The reason for the slide in ABBV stock is that the company lost patent exclusivity for Humira earlier this year, a situation that is expected to hurt sales and earnings moving forward. There have also been reports of executives at AbbVie selling their stock in the company, with Chief Commercial Officer Jeffrey Stewart selling $4.8 million worth of shares throughout the last 12 months. | However, the decline in ABBV stock has created a buying opportunity for investors who want undervalued pharma stocks. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A more obvious undervalued pharma stock is AbbVie (NYSE:ABBV). The reason for the slide in ABBV stock is that the company lost patent exclusivity for Humira earlier this year, a situation that is expected to hurt sales and earnings moving forward. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com A more obvious undervalued pharma stock is AbbVie (NYSE:ABBV). The reason for the slide in ABBV stock is that the company lost patent exclusivity for Humira earlier this year, a situation that is expected to hurt sales and earnings moving forward. There have also been reports of executives at AbbVie selling their stock in the company, with Chief Commercial Officer Jeffrey Stewart selling $4.8 million worth of shares throughout the last 12 months. |
22433.0 | 2023-06-30 00:00:00 UTC | Why Shares of Alvotech Are Jumping Friday | ABBV | https://www.nasdaq.com/articles/why-shares-of-alvotech-are-jumping-friday | nan | nan | What happened
Shares of biosimilar pharmaceutical maker Alvotech (NASDAQ: ALVO) were up more than 11% as of noon on Friday. On Thursday, it plunged more than 6% after the company announced it had received a complete response letter (CRL) from the Food and Drug Administration (FDA) regarding one of its therapies.
So what
Friday's bounce back is a reaction to what is being viewed as the market's overreaction the day before. While the FDA did issue a complete response to a second Biologics License Application (BLA) for AVT02, a high-concentration Humira biosimilar candidate, delaying the drug's approval, that CRL had to do with deficiencies the FDA saw in the Iceland-based company's Reykjavik facility, rather than any issues with AVT02 itself.
Humira, made by AbbVie, is a therapy approved to treat a variety of inflammatory conditions. Other than COVID-19 vaccines, it was the top-selling drug in the world over the last few years.
Now what
The setback for AVT02 is likely only temporary. Alvotech said it will raise additional funds to continue the development of its biosimilar pipeline, which includes seven named and three unnamed therapies. AVT02 has already been approved by regulators for sale in 27 countries, so ultimately, the company should be able to get approval for it from the FDA.
"We remain committed to bringing AVT02 to patients in the US, where the need for a high-concentration, interchangeable biosimilar to Humira remains significant," Alvotech Chairman and CEO Robert Wessman said in a press release issued Wednesday. "We expect that a reinspection of our manufacturing facility will be required to gain approval in the US and anticipate a reinspection following resubmission of a BLA for AVT02."
In the first quarter, the company reported $15.9 million in revenue, but booked a net loss of $276.2 million. It said it had $115.8 million in cash and equivalents on its books at the end of the quarter, so its need to raise more funds is obvious.
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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. | Humira, made by AbbVie, is a therapy approved to treat a variety of inflammatory conditions. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Jim Halley has positions in AbbVie. What happened Shares of biosimilar pharmaceutical maker Alvotech (NASDAQ: ALVO) were up more than 11% as of noon on Friday. | Humira, made by AbbVie, is a therapy approved to treat a variety of inflammatory conditions. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Jim Halley has positions in AbbVie. While the FDA did issue a complete response to a second Biologics License Application (BLA) for AVT02, a high-concentration Humira biosimilar candidate, delaying the drug's approval, that CRL had to do with deficiencies the FDA saw in the Iceland-based company's Reykjavik facility, rather than any issues with AVT02 itself. | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Jim Halley has positions in AbbVie. Humira, made by AbbVie, is a therapy approved to treat a variety of inflammatory conditions. While the FDA did issue a complete response to a second Biologics License Application (BLA) for AVT02, a high-concentration Humira biosimilar candidate, delaying the drug's approval, that CRL had to do with deficiencies the FDA saw in the Iceland-based company's Reykjavik facility, rather than any issues with AVT02 itself. | Humira, made by AbbVie, is a therapy approved to treat a variety of inflammatory conditions. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Jim Halley has positions in AbbVie. While the FDA did issue a complete response to a second Biologics License Application (BLA) for AVT02, a high-concentration Humira biosimilar candidate, delaying the drug's approval, that CRL had to do with deficiencies the FDA saw in the Iceland-based company's Reykjavik facility, rather than any issues with AVT02 itself. |
22434.0 | 2023-06-29 00:00:00 UTC | 5 High-Yielding Dividend Stocks That Are Bargain Buys | ABBV | https://www.nasdaq.com/articles/5-high-yielding-dividend-stocks-that-are-bargain-buys | nan | nan | If you're in search of bargain stocks to buy, the healthcare industry is a great place to start looking. The tech sector has been attracting more attention of late due to the hype around artificial intelligence (AI).
But that has left some pretty good deals overlooked in the healthcare sector. Among them are Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE) -- all of which pay dividends and offer great value.
COMPANY DIVIDEND YIELD FORWARD PRICE-TO-EARNINGS RATIO PERCENTAGE ABOVE 52-WEEK LOW
Johnson & Johnson 2.9% 15.3 9%
AbbVie 4.4% 12.3 3%
Bristol Myers Squibb 3.5% 8.0 3%
Amgen 3.8% 12.7 6%
Pfizer 4.3% 11.1 2%
Source: Yahoo Finance. Data and calculations as of June 26.
Those yields are all higher than the S&P 500's average yield of 1.6%. And within their sector, those stocks are bargains; the average healthcare stock trades at a forward price-to-earnings (P/E) multiple of around 18. But there are more reasons than that why each of them is potentially a good buy right now.
1. Johnson & Johnson
Johnson & Johnson is a healthcare beast with a market capitalization of $425 billion. The company recently spun off its consumer health business, so it has lost a bit of its diversification. But with a renewed focus on its pharmaceutical and medical device businesses, its looks like an underrated growth stock.
The company's operations are normally highly profitable with net margins of 19% in 2022. While its financials will look different now that it has hived off its slower-growing consumer health business, I wouldn't expect them to get worse. J&J also looks like a bit of a safer buy as it appears to be inching closer to settling its talc-asbestos lawsuits. Its latest offer of a $9 billion settlement is getting strong support from plaintiffs' lawyers.
This is one of the better dividend stocks you can own in healthcare. While there are higher yields out there, investors won't find better a track record for dividend growth in the industry. Johnson & Johnson has raised its payouts for a remarkable 61 straight years.
2. AbbVie
AbbVie is a bit of a contrarian buy these days -- investors are worried about the loss of patent exclusivity for its top-selling drug, Humira. Biosimilars of Humira are already on the way, and the company expects the drug's sales to fall by a mammoth 37% this year.
There's no denying the significance of Humira. The biologic drug, which is prescribed for a host of conditions, generated more than $21 billion in revenue last year, accounting for more than one-third of the company's revenue of $58 billion.
But AbbVie has been preparing for this eventuality. It has two newer immunology drugs, Skyrizi and Rinvoq, that between them are now approved for most of the conditions Humira treats.
The company forecasts that together they can reach higher peak sales than Humira. And by 2027, it says they could combine for $21 billion in revenue. So while the short term looks troubling for AbbVie, in the long run, the business should be OK.
Like Johnson & Johnson, AbbVie is a Dividend King with a strong 51-year track record of increasing its payouts (including its time as part of Abbott Laboratories from which it was spun off in 2013). And its 4.4% yield at the current share price tops the five stocks on this list.
3. Bristol Myers Squibb
Another drugmaker that's facing patent cliffs is Bristol Myers Squibb. Although its business is diverse, the looming losses of patent protection for Eliquis, Revlimid, and Opdivo are concerning. Together, they combined for $30 billion in revenue last year, which is close to two-thirds of the company's $46.2 billion top line.
However, investors need to remember that the company's sales of these drugs won't instantly go to zero when generic versions hit the market, and it still has years to develop new products or seek out acquisitions, as it has in the past, to bolster its business. It's one of the riskier stocks here due to its patent cliffs, but investors can get it at a particularly good valuation -- among the five stocks being discussed here, Bristol Myers Squibb stock trades at the lowest forward price-to-earnings ratio.
This is an established company that investors shouldn't be quick to throw in the towel on. With more than $27 billion in current assets on its books and the business generating more than $10 billion in free cash flow in each of the past three years, Bristol Myers Squibb has the resources to navigate its future.
4. Amgen
One company that hasn't been hesitant when it comes to dealmaking is drugmaker Amgen. In 2022, it acquired biopharma company ChemoCentryx for $3.7 billion, which brought the promising autoimmune product (and potential blockbuster) Tavneos into its portfolio.
It is also trying to acquire Horizon Therapeutics for around $28 billion. Through that deal, it would gain the thyroid treatment Tepezza, which could bring in more than $3.8 billion in annual revenue by 2028. The Federal Trade Commission filed a lawsuit to block the deal, however, saying it will hurt competition in the industry. But Amgen is optimistic that the deal will eventually go through.
If it doesn't, however, Amgen could still pursue other acquisitions with that money and look to upgrade its growth potential in other ways.
5. Pfizer
One of the most aggressive companies in the past few years with respect to acquisitions has been Pfizer. Revenue from its COVID-19 vaccine will decline, and the company is facing multiple patent cliffs. As a result, it has been working on ways to significantly improve its growth prospects.
Pfizer is looking to acquire Seagen for a whopping $43 billion; it says that deal could help it produce better cancer drugs in the future. However, that purchase could also face some challenges from the FTC. Through a combination of acquisitions and its in-house R&D pipeline, Pfizer believes it can add $25 billion to its annual sales by 2030.
Pfizer is facing a challenging transition period, but its balance sheet provides it with a robust cushion. As of the end of March, it held cash and short-term investments totaling just under $20 billion.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol-Myers Squibb, Pfizer, and Seagen. The Motley Fool recommends Amgen and 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. | Among them are Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE) -- all of which pay dividends and offer great value. Johnson & Johnson 2.9% 15.3 9% AbbVie 4.4% 12.3 3% Bristol Myers Squibb 3.5% 8.0 3% Amgen 3.8% 12.7 6% Pfizer 4.3% 11.1 2% Source: Yahoo Finance. AbbVie AbbVie is a bit of a contrarian buy these days -- investors are worried about the loss of patent exclusivity for its top-selling drug, Humira. | Among them are Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE) -- all of which pay dividends and offer great value. Johnson & Johnson 2.9% 15.3 9% AbbVie 4.4% 12.3 3% Bristol Myers Squibb 3.5% 8.0 3% Amgen 3.8% 12.7 6% Pfizer 4.3% 11.1 2% Source: Yahoo Finance. AbbVie AbbVie is a bit of a contrarian buy these days -- investors are worried about the loss of patent exclusivity for its top-selling drug, Humira. | Among them are Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE) -- all of which pay dividends and offer great value. Johnson & Johnson 2.9% 15.3 9% AbbVie 4.4% 12.3 3% Bristol Myers Squibb 3.5% 8.0 3% Amgen 3.8% 12.7 6% Pfizer 4.3% 11.1 2% Source: Yahoo Finance. AbbVie AbbVie is a bit of a contrarian buy these days -- investors are worried about the loss of patent exclusivity for its top-selling drug, Humira. | Johnson & Johnson 2.9% 15.3 9% AbbVie 4.4% 12.3 3% Bristol Myers Squibb 3.5% 8.0 3% Amgen 3.8% 12.7 6% Pfizer 4.3% 11.1 2% Source: Yahoo Finance. Among them are Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE) -- all of which pay dividends and offer great value. AbbVie AbbVie is a bit of a contrarian buy these days -- investors are worried about the loss of patent exclusivity for its top-selling drug, Humira. |
22435.0 | 2023-06-29 00:00:00 UTC | 7 Best Dividend Stocks to Buy Now in July 2023 | ABBV | https://www.nasdaq.com/articles/7-best-dividend-stocks-to-buy-now-in-july-2023 | nan | nan | Today, I provide my seven best dividend stocks to buy for the month of July 2023. Dividend stocks are a great way to add balance and passive income to a long-term investing portfolio. Compound interest is often called the eighth wonder of the world, and dividends are a great way to accelerate your wealth.
Two of my favorite dividend stocks on the list are AbbVie (NYSE: ABBV) and Visa (NYSE: V). To see the other five dividend stock picks and more information, please watch the video below.
*Stock prices used were the morning prices of June 29, 2023. The video was published on June 29, 2023.
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Eric Cuka has positions in AbbVie, Costco Wholesale, Schwab U.S. Dividend Equity ETF, and Tractor Supply. The Motley Fool has positions in and recommends Costco Wholesale, Texas Instruments, Union Pacific, and Visa. The Motley Fool recommends Lockheed Martin and Tractor Supply. The Motley Fool has a disclosure policy.
Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two of my favorite dividend stocks on the list are AbbVie (NYSE: ABBV) and Visa (NYSE: V). 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Eric Cuka has positions in AbbVie, Costco Wholesale, Schwab U.S. Dividend Equity ETF, and Tractor Supply. Two of my favorite dividend stocks on the list are AbbVie (NYSE: ABBV) and Visa (NYSE: V). 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. | See the 10 stocks *Stock Advisor returns as of June 26, 2023 Eric Cuka has positions in AbbVie, Costco Wholesale, Schwab U.S. Dividend Equity ETF, and Tractor Supply. Two of my favorite dividend stocks on the list are AbbVie (NYSE: ABBV) and Visa (NYSE: V). 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. | Two of my favorite dividend stocks on the list are AbbVie (NYSE: ABBV) and Visa (NYSE: V). 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
22436.0 | 2023-06-29 00:00:00 UTC | 3 Dividend Kings Yielding Royal Sums | ABBV | https://www.nasdaq.com/articles/3-dividend-kings-yielding-royal-sums | nan | nan | If you are focused on investing for income look no further. Dividend Kings are stocks that have raised their dividends for at least 50 consecutive years, a feat made possible by uber-consistent business management and commitment to shareholders.
These are stocks that have not only survived a huge range of different adverse economic environments but have managed to increase the cash they return to investors despite the challenging periods.
Further boosting your odds of picking a winning stock, each of the recommendations in this article have strong Zacks Ranks, indicating improving earnings revisions.
Kimberly-Clark KMB, Northwest Natural NWN, and AbbVie ABBV all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come.
Image Source: Zacks Investment Research
KimberlyClark
KimberlyClark is a multinational consumer goods company founded in 1872. Headquartered in the United States, the company specializes in the manufacturing and marketing of personal care and hygiene products. KMB offers a diverse range of brands, including Huggies, Kleenex, Cottonelle, and Scott. The company operates globally, serving customers in over 175 countries. Notably, KimberlyClark has raised its dividend for 51 years consecutively.
KMB currently boasts a Zacks Rank #2 (Buy), and beat earnings estimates last quarter by a whopping 25%. Additionally, its Zacks earnings ESP projects a 7% earnings beat at the next report. FY23 earnings have been revised higher by 5% and are expected to climb 10% YoY.
KimberlyClark has a dividend yield of 3.4% and has raised the payment by an average of 3.9% annually over the last five years. Further demonstrating its commitment to returning cash to shareholders is management’s willingness to buy back shares. Over the last 20 years the KMB share count has been reduced by 31%.
Image Source: Zacks Investment Research
KimberlyClark is trading at a one-year forward earnings multiple of 22x, which is above the market average of 20.5x, and above its 10-year median of 19.3x.
Image Source: Zacks Investment Research
Northwest Natural
Founded in 1859, Northwest Natural is a gas utility company that operates in the Pacific Northwest region. Over the years, Northwest Natural has experienced substantial growth, expanding its customer base to serve more than 760,000 customers to date. The company's primary mission revolves around the delivery of natural gas to its customers in the Pacific Northwest. NWN has raised its dividend for 66 consecutive years.
Current quarter earnings have been revised higher by 42% over the last two months, giving NWN a Zacks Rank #2 (Buy). FY23 earnings estimates have been upgraded just slightly but are projected to grow 6.3% YoY a nice pace for a utility company.
Image Source: Zacks Investment Research
Northwest Natural has a generous dividend yield of 4.6%, which has been raised by an average of 0.5% annually over the last five years. Over the last 25 years NWN’s dividend yield has grown at a CAGR of 2%.
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Northwest Natural is currently trading at a 10-year low valuation in terms of earnings multiple. Its one-year forward earnings multiple is 15.8x, which is below the market average of 20.5x, and well below its 10-year median 21.6x.
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AbbVie
AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. It focuses on research and development, aiming to address various medical conditions. AbbVie's portfolio includes therapeutic areas such as immunology, oncology, neuroscience, and virology. The company's notable product is Humira, a leading treatment for autoimmune diseases.
While facing biosimilar competition in Europe and the upcoming loss of patent protection for Humira in the United States, AbbVie remains proactive in expanding its product pipeline and pursuing new drug discoveries. Through strategic acquisitions and collaborations, AbbVie continues growing. ABBV has raised its dividend for 51 consecutive years.
ABBV is extremely steady when it comes to earnings reports. Over the last decade it has missed its quarterly earnings estimates only two times. AbbVie also currently has a Zacks Rank #2 (Buy), indicating upward trending earnings revisions.
AbbVie is currently trading at a one-year forward earnings multiple of 12x, which is below the industry average of 17.8x, and in line with its 10-year median of 12x. ABBV offers a substantial dividend yield of 4.5% and has raised it by an average of 9.8% annually over the last five years.
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Bottom Line
Like big dividend checks and companies that will likely be around for another few decades? KimberlyClark, Northwest Natural and AbbVie all fit the profile. Dividend kings and dividend aristocrats are a great place for investors to go looking for income producing stocks. Better yet if they have improving earnings estimates as measured by the Zacks Rank.
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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. | Kimberly-Clark KMB, Northwest Natural NWN, and AbbVie ABBV all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come. While facing biosimilar competition in Europe and the upcoming loss of patent protection for Humira in the United States, AbbVie remains proactive in expanding its product pipeline and pursuing new drug discoveries. Image Source: Zacks Investment Research AbbVie AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. | Click to get this free report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report Northwest Natural Gas Company (NWN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Kimberly-Clark KMB, Northwest Natural NWN, and AbbVie ABBV all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come. Image Source: Zacks Investment Research AbbVie AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. | Click to get this free report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report Northwest Natural Gas Company (NWN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Kimberly-Clark KMB, Northwest Natural NWN, and AbbVie ABBV all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come. Image Source: Zacks Investment Research AbbVie AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. | Kimberly-Clark KMB, Northwest Natural NWN, and AbbVie ABBV all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come. Image Source: Zacks Investment Research AbbVie AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. AbbVie's portfolio includes therapeutic areas such as immunology, oncology, neuroscience, and virology. |
22437.0 | 2023-06-29 00:00:00 UTC | FXH's Holdings Imply 19% Gain Potential | ABBV | https://www.nasdaq.com/articles/fxhs-holdings-imply-19-gain-potential | 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 First Trust Health Care AlphaDEX Fund ETF (Symbol: FXH), we found that the implied analyst target price for the ETF based upon its underlying holdings is $127.34 per unit.
With FXH trading at a recent price near $106.96 per unit, that means that analysts see 19.05% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FXH's underlying holdings with notable upside to their analyst target prices are Viatris Inc (Symbol: VTRS), Exelixis Inc (Symbol: EXEL), and AbbVie Inc (Symbol: ABBV). Although VTRS has traded at a recent price of $9.73/share, the average analyst target is 34.89% higher at $13.12/share. Similarly, EXEL has 34.52% upside from the recent share price of $18.99 if the average analyst target price of $25.55/share is reached, and analysts on average are expecting ABBV to reach a target price of $169.15/share, which is 27.65% above the recent price of $132.51. Below is a twelve month price history chart comparing the stock performance of VTRS, EXEL, and ABBV:
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
First Trust Health Care AlphaDEX Fund ETF FXH $106.96 $127.34 19.05%
Viatris Inc VTRS $9.73 $13.12 34.89%
Exelixis Inc EXEL $18.99 $25.55 34.52%
AbbVie Inc ABBV $132.51 $169.15 27.65%
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. | First Trust Health Care AlphaDEX Fund ETF FXH $106.96 $127.34 19.05% Viatris Inc VTRS $9.73 $13.12 34.89% Exelixis Inc EXEL $18.99 $25.55 34.52% AbbVie Inc ABBV $132.51 $169.15 27.65% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FXH's underlying holdings with notable upside to their analyst target prices are Viatris Inc (Symbol: VTRS), Exelixis Inc (Symbol: EXEL), and AbbVie Inc (Symbol: ABBV). Similarly, EXEL has 34.52% upside from the recent share price of $18.99 if the average analyst target price of $25.55/share is reached, and analysts on average are expecting ABBV to reach a target price of $169.15/share, which is 27.65% above the recent price of $132.51. | Three of FXH's underlying holdings with notable upside to their analyst target prices are Viatris Inc (Symbol: VTRS), Exelixis Inc (Symbol: EXEL), and AbbVie Inc (Symbol: ABBV). Similarly, EXEL has 34.52% upside from the recent share price of $18.99 if the average analyst target price of $25.55/share is reached, and analysts on average are expecting ABBV to reach a target price of $169.15/share, which is 27.65% above the recent price of $132.51. First Trust Health Care AlphaDEX Fund ETF FXH $106.96 $127.34 19.05% Viatris Inc VTRS $9.73 $13.12 34.89% Exelixis Inc EXEL $18.99 $25.55 34.52% AbbVie Inc ABBV $132.51 $169.15 27.65% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, EXEL has 34.52% upside from the recent share price of $18.99 if the average analyst target price of $25.55/share is reached, and analysts on average are expecting ABBV to reach a target price of $169.15/share, which is 27.65% above the recent price of $132.51. Three of FXH's underlying holdings with notable upside to their analyst target prices are Viatris Inc (Symbol: VTRS), Exelixis Inc (Symbol: EXEL), and AbbVie Inc (Symbol: ABBV). Below is a twelve month price history chart comparing the stock performance of VTRS, EXEL, and ABBV: Below is a summary table of the current analyst target prices discussed above: | Below is a twelve month price history chart comparing the stock performance of VTRS, EXEL, and ABBV: Below is a summary table of the current analyst target prices discussed above: Three of FXH's underlying holdings with notable upside to their analyst target prices are Viatris Inc (Symbol: VTRS), Exelixis Inc (Symbol: EXEL), and AbbVie Inc (Symbol: ABBV). Similarly, EXEL has 34.52% upside from the recent share price of $18.99 if the average analyst target price of $25.55/share is reached, and analysts on average are expecting ABBV to reach a target price of $169.15/share, which is 27.65% above the recent price of $132.51. |
22438.0 | 2023-06-29 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-92 | 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
Stepan Co. (Symbol: SCL) $93.55 $124.00 32.55%
Target Corp (Symbol: TGT) $132.47 $174.89 32.02%
AbbVie Inc (Symbol: ABBV) $132.51 $169.15 27.65%
Lancaster Colony Corp (Symbol: LANC) $196.83 $237.00 20.41%
NIKE Inc (Symbol: NKE) $113.03 $134.74 19.21%
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
Stepan Co. (Symbol: SCL) 1.56% 32.55% 34.11%
Target Corp (Symbol: TGT) 3.32% 32.02% 35.34%
AbbVie Inc (Symbol: ABBV) 4.47% 27.65% 32.12%
Lancaster Colony Corp (Symbol: LANC) 1.73% 20.41% 22.14%
NIKE Inc (Symbol: NKE) 1.20% 19.21% 20.41%
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
Stepan Co. (Symbol: SCL) $1.31 $1.43 9.16%
Target Corp (Symbol: TGT) $3.6 $4.32 20.00%
AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64%
Lancaster Colony Corp (Symbol: LANC) $3.15 $3.35 6.35%
NIKE Inc (Symbol: NKE) $1.19 $1.325 11.34%
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. | Stepan Co. (Symbol: SCL) $93.55 $124.00 32.55% Target Corp (Symbol: TGT) $132.47 $174.89 32.02% AbbVie Inc (Symbol: ABBV) $132.51 $169.15 27.65% Lancaster Colony Corp (Symbol: LANC) $196.83 $237.00 20.41% NIKE Inc (Symbol: NKE) $113.03 $134.74 19.21% 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. Stepan Co. (Symbol: SCL) 1.56% 32.55% 34.11% Target Corp (Symbol: TGT) 3.32% 32.02% 35.34% AbbVie Inc (Symbol: ABBV) 4.47% 27.65% 32.12% Lancaster Colony Corp (Symbol: LANC) 1.73% 20.41% 22.14% NIKE Inc (Symbol: NKE) 1.20% 19.21% 20.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.31 $1.43 9.16% Target Corp (Symbol: TGT) $3.6 $4.32 20.00% AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Lancaster Colony Corp (Symbol: LANC) $3.15 $3.35 6.35% NIKE Inc (Symbol: NKE) $1.19 $1.325 11.34% These five stocks are part of our full Dividend Aristocrats List. | Stepan Co. (Symbol: SCL) $93.55 $124.00 32.55% Target Corp (Symbol: TGT) $132.47 $174.89 32.02% AbbVie Inc (Symbol: ABBV) $132.51 $169.15 27.65% Lancaster Colony Corp (Symbol: LANC) $196.83 $237.00 20.41% NIKE Inc (Symbol: NKE) $113.03 $134.74 19.21% 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. Stepan Co. (Symbol: SCL) 1.56% 32.55% 34.11% Target Corp (Symbol: TGT) 3.32% 32.02% 35.34% AbbVie Inc (Symbol: ABBV) 4.47% 27.65% 32.12% Lancaster Colony Corp (Symbol: LANC) 1.73% 20.41% 22.14% NIKE Inc (Symbol: NKE) 1.20% 19.21% 20.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.31 $1.43 9.16% Target Corp (Symbol: TGT) $3.6 $4.32 20.00% AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Lancaster Colony Corp (Symbol: LANC) $3.15 $3.35 6.35% NIKE Inc (Symbol: NKE) $1.19 $1.325 11.34% These five stocks are part of our full Dividend Aristocrats List. | Stepan Co. (Symbol: SCL) $93.55 $124.00 32.55% Target Corp (Symbol: TGT) $132.47 $174.89 32.02% AbbVie Inc (Symbol: ABBV) $132.51 $169.15 27.65% Lancaster Colony Corp (Symbol: LANC) $196.83 $237.00 20.41% NIKE Inc (Symbol: NKE) $113.03 $134.74 19.21% 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. Stepan Co. (Symbol: SCL) 1.56% 32.55% 34.11% Target Corp (Symbol: TGT) 3.32% 32.02% 35.34% AbbVie Inc (Symbol: ABBV) 4.47% 27.65% 32.12% Lancaster Colony Corp (Symbol: LANC) 1.73% 20.41% 22.14% NIKE Inc (Symbol: NKE) 1.20% 19.21% 20.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.31 $1.43 9.16% Target Corp (Symbol: TGT) $3.6 $4.32 20.00% AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Lancaster Colony Corp (Symbol: LANC) $3.15 $3.35 6.35% NIKE Inc (Symbol: NKE) $1.19 $1.325 11.34% These five stocks are part of our full Dividend Aristocrats List. | Stepan Co. (Symbol: SCL) $93.55 $124.00 32.55% Target Corp (Symbol: TGT) $132.47 $174.89 32.02% AbbVie Inc (Symbol: ABBV) $132.51 $169.15 27.65% Lancaster Colony Corp (Symbol: LANC) $196.83 $237.00 20.41% NIKE Inc (Symbol: NKE) $113.03 $134.74 19.21% 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. Stepan Co. (Symbol: SCL) 1.56% 32.55% 34.11% Target Corp (Symbol: TGT) 3.32% 32.02% 35.34% AbbVie Inc (Symbol: ABBV) 4.47% 27.65% 32.12% Lancaster Colony Corp (Symbol: LANC) 1.73% 20.41% 22.14% NIKE Inc (Symbol: NKE) 1.20% 19.21% 20.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.31 $1.43 9.16% Target Corp (Symbol: TGT) $3.6 $4.32 20.00% AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Lancaster Colony Corp (Symbol: LANC) $3.15 $3.35 6.35% NIKE Inc (Symbol: NKE) $1.19 $1.325 11.34% These five stocks are part of our full Dividend Aristocrats List. |
22439.0 | 2023-06-28 00:00:00 UTC | The Zacks Analyst Blog Highlights Novo Nordisk, Home Depot, Disney, AbbVie and Automatic Data Processing | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-novo-nordisk-home-depot-disney-abbvie-and-automatic-data | nan | nan | For Immediate Release
Chicago, IL – June 28, 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: Novo Nordisk A/S NVO, The Home Depot, Inc. HD, The Walt Disney Co. DIS, AbbVie Inc. ABBV and Automatic Data Processing, Inc. ADP.
Here are highlights from Tuesday’s Analyst Blog:
Top Stock Reports for Novo Nordisk, Home Depot 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 Novo Nordisk A/S, The Home Depot, 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 >>>
Shares of Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+40.6% vs. +8.9%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining and maintaining momentum.
Label expansion of the diabetes drugs is likely to further boost sales. Novo resolved the supply issues with Wegovy, which led to a sales increase in the first quarter of 2023, consequently raising its full-year guidance. The company’s diversifying efforts to develop new treatments are reassuring.
However, Pfizer’s successful study on its oral type II diabetes candidate, danuglipron, is alarming. If approved, Pfizer is likely to eat away from Novo Nordisk’s Diabetes care market share. Patent expiry and pricing pressure across the diabetes market also remain a woe.
(You can read the full research report on Novo Nordisk here >>>)
Home Depot shares have gained +17.0% over the past year against the Zacks Building Products - Retail industry’s gain of +24.2%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.
The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.
However, shares of Home Depot lagged the industry year to date on dismal performance in first-quarter fiscal 2023. Results were impacted by a more broad-based pressure across the business, driven by softened demand versus expectations. A deflation in lumber prices and unfavorable weather have also hurt the results. HD also provided a conservative view for fiscal 2023.
(You can read the full research report on Home Depot here >>>)
Shares of Walt Disney have gained +5.4% over the past six months against the Zacks Media Conglomerates industry’s gain of +6.5%. The company is benefiting from the growing popularity of Disney+ core, owing to a strong content portfolio and a cheaper bundle offering.
Strong line-up of movies that include The Little Mermaid; Indiana Jones and the Dial of Destiny; Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment. Revival in Parks, Experiences and Products businesses is encouraging.
Theme Park business is likely to gain from strong demand across both the domestic and international parks. However, Disney+’s profitability continues to be negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. and Automatic Data Processing, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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Automatic Data Processing, Inc. (ADP) : 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. | Stocks recently featured in the blog include: Novo Nordisk A/S NVO, The Home Depot, Inc. HD, The Walt Disney Co. DIS, AbbVie Inc. ABBV and Automatic Data Processing, Inc. ADP. Other noteworthy reports we are featuring today include AbbVie Inc. and Automatic Data Processing, Inc. Why Haven’t You Looked at Zacks' Top Stocks? Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: Novo Nordisk A/S NVO, The Home Depot, Inc. HD, The Walt Disney Co. DIS, AbbVie Inc. ABBV and Automatic Data Processing, Inc. ADP. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include AbbVie Inc. and Automatic Data Processing, Inc. Why Haven’t You Looked at Zacks' Top Stocks? | Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Novo Nordisk A/S NVO, The Home Depot, Inc. HD, The Walt Disney Co. DIS, AbbVie Inc. ABBV and Automatic Data Processing, Inc. ADP. Other noteworthy reports we are featuring today include AbbVie Inc. and Automatic Data Processing, Inc. Why Haven’t You Looked at Zacks' Top Stocks? | Stocks recently featured in the blog include: Novo Nordisk A/S NVO, The Home Depot, Inc. HD, The Walt Disney Co. DIS, AbbVie Inc. ABBV and Automatic Data Processing, Inc. ADP. Other noteworthy reports we are featuring today include AbbVie Inc. and Automatic Data Processing, Inc. Why Haven’t You Looked at Zacks' Top Stocks? Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22440.0 | 2023-06-28 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis-0 | 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. |
22441.0 | 2023-06-28 00:00:00 UTC | AbbVie Enters Oversold Territory | ABBV | https://www.nasdaq.com/articles/abbvie-enters-oversold-territory-1 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABBV entered into oversold territory, changing hands as low as $130.9601 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 52.9. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 4.46% based upon the recent $132.60 share price.
A bullish investor could look at ABBV's 29.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
XRAY Dividend Growth Rate
HALL shares outstanding history
HME Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABBV's 29.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABBV entered into oversold territory, changing hands as low as $130.9601 per share. | In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 52.9. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 4.46% based upon the recent $132.60 share price. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 52.9. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABBV entered into oversold territory, changing hands as low as $130.9601 per share. | In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 52.9. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. |
22442.0 | 2023-06-28 00:00:00 UTC | What Will AbbVie Buy Next? | ABBV | https://www.nasdaq.com/articles/what-will-abbvie-buy-next | nan | nan | AbbVie (NYSE: ABBV) is facing a tough year ahead. The company's blockbuster drug Humira, which treats various autoimmune conditions such as rheumatoid arthritis, psoriasis, and Crohn's disease, will face biosimilar competition in the U.S. market starting in January 2023. Humira was a major revenue driver for AbbVie, contributing $3.5 billion out of the company's $12.2 billion total net revenue in the first quarter of 2023, and accounting for nearly 40% of the company's annual revenue in previous years.
To cope with this challenge, AbbVie has made several strategic acquisitions in the past few years, such as Pharmacyclics for the blood cancer drug Imbruvica and Allergan for its medical aesthetics and neuroscience portfolios. However, these deals may not be sufficient to offset Humira's commercial decline (see here and here for more details). Therefore, AbbVie may have to look for more opportunities to acquire smaller companies with promising drugs in 2023 and beyond.
AbbVie's dealmaking prospects
One of the key considerations for biopharma companies when pursuing business development opportunities is how well the target company aligns with its strategic goals, such as expanding into new therapeutic areas, enhancing its pipeline, or diversifying its revenue streams. Another important factor is the market value of the target company's products, whether they are in clinical development or already approved and marketed. A third factor is the price that the acquiring company is willing to pay, which depends on various factors such as the competitive landscape, the expected return on investment, and the availability of financing.
AbbVie, for its part, has expertise in the fields of immunology, oncology, aesthetics, neuroscience, and eye care. Therefore, the drugmaker can choose from a wide variety of indications for its dealmaking activities. However, the price will be an important factor. AbbVie can comfortably spend up to $10 billion on business development without negatively impacting its balance sheet. A large-ish deal of $20 billion or more may not be feasible due to AbbVie's high debt level and the potential for pushback from the Federal Trade Commission.
Two budget-friendly options
Which companies stand out as potential targets for AbbVie within this price range? Blueprint Medicines (NASDAQ: BPMC) and Krystal Biotech (NASDAQ: KRYS) both screen as logical buyout candidates for the drugmaker at this price point.
Blueprint is a biotechnology company that specializes in developing targeted therapies for cancer. The company has a market value of about $3.8 billion as of this writing. It has two Food and Drug Administration (FDA) approved drugs: Ayvakit for the treatment of advanced or indolent systemic mastocytosis and Gavreto for advanced or metastatic RET-mutant medullary thyroid cancer and metastatic RET fusion-positive non-small cell lung cancer.
However, the main attraction of Blueprint as an acquisition candidate is its early-stage pipeline of drugs for various solid tumors. AbbVie could likely acquire the precision oncology company for a reasonable price of $5 billion to $5.5 billion, making it an affordable option in the high-value solid tumor space.
Krystal Biotech is a gene therapy company with a focus on rare skin conditions. The company recently received FDA approval for Vyjuvek, a topical gene therapy for dystrophic epidermolysis bullosa, a genetic disorder that affects the skin and mucous membranes. Vyjuvek has the potential to generate more than $750 million in annual sales in the U.S. in this setting. Globally, Wall Street analysts think the therapy could top $1.1 billion in peak sales.
Krystal also has a diverse pipeline of pre-clinical and early stage dermatology programs. Moreover, the company is exploring gene therapies for rare respiratory diseases and medical aesthetics. AbbVie could probably acquire Krystal for less than $5 billion, making it an attractive and affordable target with plenty of upside potential.
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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. | To cope with this challenge, AbbVie has made several strategic acquisitions in the past few years, such as Pharmacyclics for the blood cancer drug Imbruvica and Allergan for its medical aesthetics and neuroscience portfolios. AbbVie (NYSE: ABBV) is facing a tough year ahead. Humira was a major revenue driver for AbbVie, contributing $3.5 billion out of the company's $12.2 billion total net revenue in the first quarter of 2023, and accounting for nearly 40% of the company's annual revenue in previous years. | AbbVie could likely acquire the precision oncology company for a reasonable price of $5 billion to $5.5 billion, making it an affordable option in the high-value solid tumor space. AbbVie could probably acquire Krystal for less than $5 billion, making it an attractive and affordable target with plenty of upside potential. AbbVie (NYSE: ABBV) is facing a tough year ahead. | Humira was a major revenue driver for AbbVie, contributing $3.5 billion out of the company's $12.2 billion total net revenue in the first quarter of 2023, and accounting for nearly 40% of the company's annual revenue in previous years. AbbVie's dealmaking prospects One of the key considerations for biopharma companies when pursuing business development opportunities is how well the target company aligns with its strategic goals, such as expanding into new therapeutic areas, enhancing its pipeline, or diversifying its revenue streams. AbbVie could likely acquire the precision oncology company for a reasonable price of $5 billion to $5.5 billion, making it an affordable option in the high-value solid tumor space. | AbbVie (NYSE: ABBV) is facing a tough year ahead. Humira was a major revenue driver for AbbVie, contributing $3.5 billion out of the company's $12.2 billion total net revenue in the first quarter of 2023, and accounting for nearly 40% of the company's annual revenue in previous years. To cope with this challenge, AbbVie has made several strategic acquisitions in the past few years, such as Pharmacyclics for the blood cancer drug Imbruvica and Allergan for its medical aesthetics and neuroscience portfolios. |
22443.0 | 2023-06-27 00:00:00 UTC | Quant Ratings Updated on 90 Stocks | ABBV | https://www.nasdaq.com/articles/quant-ratings-updated-on-90-stocks | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s hard to believe that the second quarter – and the first half of the year – is now drawing to a close. While we’ve seen our fair share of volatility, the indices are ending the first half of 2023 on a strong note. As I write this, the S&P 500 is up 14.1% and the Dow is up 2.5% year-to-date. The NASDAQ is up a stunning 29.6%.
I should add that the breadth and power of the stock market is suddenly expanding. Case in point: At the end of April, seven Big Tech stocks accounted for most of the S&P 500’s year-to-date gains. Then, at the end of May, 20 stocks accounted for most of the S&P 500’s year-to-date gains.
We can thank the sudden expansion due to “green shoots.” For example, housing starts surged 21.7% in May to a 1.63 million annual pace, which is the strongest monthly surge since 2016. Building permits also rose 5.2% in May to a 1.49 million pace. In the wake of the May housing starts report, the Atlanta Fed revised its second-quarter GDP estimate up slightly to 1.9%, up from previous estimates for 1.8%.
The rest of the world, on the other hand, continues to struggle. The chaos in Russia with the leader of the Wagner Group trying to overthrow the Russian Defense Ministry, before being exiled to Belarus, has thrown more uncertainty on worldwide crude oil supplies. China is experiencing a decline in imports and exports, and the People’s Bank of China is starting to cut key interest rates.
Over in Europe, a recession is now official as France, Germany and Ireland are in the midst of a contraction. Even though the eurozone has had its GDP contract in the past couple of quarters, there was hope that the summer months would stimulate economic activity. However, the June purchasing managers’ index (PMI) showed that economic activity plunged in France. As a result, it appears that the eurozone may not be able to pull out of its recent economic contraction.
The Bank of England (BOE) also voted to raise its key interest rate by 0.5% to 5%. This was a surprise hike and appeared to be an act of desperation to fight the United Kingdom’s hideous inflation, which is running at an 8.7% annual pace.
In the middle of all this chaos, the United States is unquestionably the world leader. The fact that the U.S. is energy and agriculturally independent and has better demographics than China and Europe means that we can have more organic, domestic growth.
What this mean is that the U.S. can have more economic growth. I should also add that the U.S. is trading more with Southeast Asia, India, South Korea and Japan, as businesses seek to shore up their supply chains. As a result, the U.S. dollar should continue to grow stronger as U.S. GDP outpaces most of the world.
The bottom line is that more U.S. companies are prospering, and I look for investors to flock to fundamentally superior stocks that can steadily grow their top and bottom lines. So, to be successful in the current environment, it’s important to stay away from companies with weak fundamentals.
This Week’s Ratings Changes
One way to do that is to follow my Portfolio Grader ratings. And over the weekend, my Portfolio Grader made quite a few revisions. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 90 big blue chips.
22 stocks were downgraded to a “Hold” (C-rating) and 25 stocks were downgraded to a “Sell” (D-rating). I’ve listed the first 10 stocks that were downgraded to a D-rating below, but you can find the full list – including the stocks’ Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
TICKER COMPANY NAME TOTAL GRADE
ABBV AbbVie, Inc. D
AEE Ameren Corporation D
AWK American Water Works Company, Inc. D
BF.A Brown-Forman Corporation Class A D
BNTX BioNTech SE Sponsored ADR D
CHT Chunghwa Telecom Co., Ltd Sponsored ADR D
CMS CMS Energy Corporation D
CRWD CrowdStrike Holdings, Inc. Class A D
DDOG Datadog Inc Class A D
ELS Equity LifeStyle Properties, Inc. D
My Portfolio Grader is a great tool to check a stock’s grade and determine if it’s a buy or sell on a week-to-week basis. However, if you’re looking to determine a stock’s price a month out, then look to further than the revolutionary artificial intelligence (AI) algorithm InvestorPlace’s partner Tradesmith created.
That AI algorithm is called An-E (pronounced Annie, short for Analytical Engine).
And An-E can make these types of accurate predictions for nearly 3,000 stocks on the market.
Keith Kaplan, Tradesmith’s CEO, and I sat down last week to discuss this breakthrough. During this presentation, he even showed what An-E’s predicting prices of Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Symbotic Inc. (SYM) will be next month.
For full details on An-E and how it can help you target the winners and losers, click here to watch a replay of the event now.
Sincerely,
Louis Navellier
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV AbbVie, Inc. D AEE Ameren Corporation D AWK American Water Works Company, Inc. D BF.A Brown-Forman Corporation Class A D BNTX BioNTech SE Sponsored ADR D CHT Chunghwa Telecom Co., Ltd Sponsored ADR D CMS CMS Energy Corporation D CRWD CrowdStrike Holdings, Inc. Class A D DDOG Datadog Inc Class A D ELS Equity LifeStyle Properties, Inc. D My Portfolio Grader is a great tool to check a stock’s grade and determine if it’s a buy or sell on a week-to-week basis. The chaos in Russia with the leader of the Wagner Group trying to overthrow the Russian Defense Ministry, before being exiled to Belarus, has thrown more uncertainty on worldwide crude oil supplies. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 90 big blue chips. | ABBV AbbVie, Inc. D AEE Ameren Corporation D AWK American Water Works Company, Inc. D BF.A Brown-Forman Corporation Class A D BNTX BioNTech SE Sponsored ADR D CHT Chunghwa Telecom Co., Ltd Sponsored ADR D CMS CMS Energy Corporation D CRWD CrowdStrike Holdings, Inc. Class A D DDOG Datadog Inc Class A D ELS Equity LifeStyle Properties, Inc. D My Portfolio Grader is a great tool to check a stock’s grade and determine if it’s a buy or sell on a week-to-week basis. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s hard to believe that the second quarter – and the first half of the year – is now drawing to a close. During this presentation, he even showed what An-E’s predicting prices of Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Symbotic Inc. (SYM) will be next month. | ABBV AbbVie, Inc. D AEE Ameren Corporation D AWK American Water Works Company, Inc. D BF.A Brown-Forman Corporation Class A D BNTX BioNTech SE Sponsored ADR D CHT Chunghwa Telecom Co., Ltd Sponsored ADR D CMS CMS Energy Corporation D CRWD CrowdStrike Holdings, Inc. Class A D DDOG Datadog Inc Class A D ELS Equity LifeStyle Properties, Inc. D My Portfolio Grader is a great tool to check a stock’s grade and determine if it’s a buy or sell on a week-to-week basis. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s hard to believe that the second quarter – and the first half of the year – is now drawing to a close. I’ve listed the first 10 stocks that were downgraded to a D-rating below, but you can find the full list – including the stocks’ Fundamental and Quantitative Grades – here. | ABBV AbbVie, Inc. D AEE Ameren Corporation D AWK American Water Works Company, Inc. D BF.A Brown-Forman Corporation Class A D BNTX BioNTech SE Sponsored ADR D CHT Chunghwa Telecom Co., Ltd Sponsored ADR D CMS CMS Energy Corporation D CRWD CrowdStrike Holdings, Inc. Class A D DDOG Datadog Inc Class A D ELS Equity LifeStyle Properties, Inc. D My Portfolio Grader is a great tool to check a stock’s grade and determine if it’s a buy or sell on a week-to-week basis. Then, at the end of May, 20 stocks accounted for most of the S&P 500’s year-to-date gains. We can thank the sudden expansion due to “green shoots.” For example, housing starts surged 21.7% in May to a 1.63 million annual pace, which is the strongest monthly surge since 2016. |
22444.0 | 2023-06-27 00:00:00 UTC | AbbVie, Genmab Announces Positive Results From Phase 1/2 Trial Of Epcoritamab | ABBV | https://www.nasdaq.com/articles/abbvie-genmab-announces-positive-results-from-phase-1-2-trial-of-epcoritamab | nan | nan | (RTTNews) - AbbVie (ABBV) and Genmab (GMAB) announced positive results from the follicular lymphoma or FL cohort of the Phase 1/2 EPCORE NHL-1 clinical trial evaluating epcoritamab (DuoBody-CD3xCD20), an investigational T-cell engaging bispecific antibody administered subcutaneously.
The study cohort includes 128 adult patients with relapsed or refractory (R/R) FL who received at least two or more lines of systemic therapy. 70.3 percent of patients were double refractory to an anti-CD20 monoclonal antibody and an alkylating agent.
Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration.
EPCORE NHL-1 is an open-label trial evaluating the safety and preliminary efficacy of epcoritamab and consists of three parts: a Phase 1 first-in-human, dose escalation part; a Phase 2a expansion part; and a Phase 2a optimization part.
According to the companies, the positive results from the cohort showed an overall response rate (ORR) of 82 percent as confirmed by an independent review committee (IRC), which exceeded the protocol prespecified threshold for efficacy. But the observed median duration of response (DOR) was not reached, and longer follow-up will be required. The median number of lines of prior therapy in this cohort was three (range: two to nine lines of therapy).
The most common treatment-emergent adverse event was cytokine release syndrome (CRS) with 66.4 percent (1.6 percent Grade 3 or higher). The optimization part of the trial is continuing to evaluate alternative step-up dosing regimens to help further mitigate the risk of CRS, preliminary data are encouraging.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) and Genmab (GMAB) announced positive results from the follicular lymphoma or FL cohort of the Phase 1/2 EPCORE NHL-1 clinical trial evaluating epcoritamab (DuoBody-CD3xCD20), an investigational T-cell engaging bispecific antibody administered subcutaneously. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. According to the companies, the positive results from the cohort showed an overall response rate (ORR) of 82 percent as confirmed by an independent review committee (IRC), which exceeded the protocol prespecified threshold for efficacy. | (RTTNews) - AbbVie (ABBV) and Genmab (GMAB) announced positive results from the follicular lymphoma or FL cohort of the Phase 1/2 EPCORE NHL-1 clinical trial evaluating epcoritamab (DuoBody-CD3xCD20), an investigational T-cell engaging bispecific antibody administered subcutaneously. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. EPCORE NHL-1 is an open-label trial evaluating the safety and preliminary efficacy of epcoritamab and consists of three parts: a Phase 1 first-in-human, dose escalation part; a Phase 2a expansion part; and a Phase 2a optimization part. | (RTTNews) - AbbVie (ABBV) and Genmab (GMAB) announced positive results from the follicular lymphoma or FL cohort of the Phase 1/2 EPCORE NHL-1 clinical trial evaluating epcoritamab (DuoBody-CD3xCD20), an investigational T-cell engaging bispecific antibody administered subcutaneously. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. EPCORE NHL-1 is an open-label trial evaluating the safety and preliminary efficacy of epcoritamab and consists of three parts: a Phase 1 first-in-human, dose escalation part; a Phase 2a expansion part; and a Phase 2a optimization part. | (RTTNews) - AbbVie (ABBV) and Genmab (GMAB) announced positive results from the follicular lymphoma or FL cohort of the Phase 1/2 EPCORE NHL-1 clinical trial evaluating epcoritamab (DuoBody-CD3xCD20), an investigational T-cell engaging bispecific antibody administered subcutaneously. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. The study cohort includes 128 adult patients with relapsed or refractory (R/R) FL who received at least two or more lines of systemic therapy. |
22445.0 | 2023-06-27 00:00:00 UTC | 7 Stocks That Every 40-Year-Old Should Buy Today | ABBV | https://www.nasdaq.com/articles/7-stocks-that-every-40-year-old-should-buy-today | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While swinging for the fences brings excitement to the art of investing, slow and steady usually wins the race, which brings us to the best investments for 40-year-olds. Around this time frame, the emphasis centers on balance. You still want growth because you have time on your side. Nevertheless, you don’t want to take too many wild bets.
Unlike other demographics, stocks for 40-year-old investors will require a nuanced approach. For example, if you’re just starting out, speculative small capitalization plays might make sense. Basically, you have plenty of time on your side. On the other hand, those close to retirement should ease up on the risk-reward pedal.
For so-called buy now stocks for 40-year-olds, investors can’t be too conservative; otherwise, you end up missing the mark by retirement time. In contrast, though, being too aggressive can put you in a bad spot with less time to course correct.
Fortunately, with seven ideas, it’s a bit easier to craft a workable strategy. Below are the top stocks for midlife investing.
IBM (IBM)
Source: PX Media / Shutterstock
To be fair, legacy technology giant IBM (NYSE:IBM) might not seem like one of the best investments for 40-year-olds but rather for folks two decades older. As well, the company doesn’t quite have the pizzazz of its sector peers. However, Big Blue’s concerted efforts into revamping itself through relevant businesses such as artificial intelligence and cloud computing make it one of the buy now stocks for 40-year-olds.
True, IBM requires some patience. Since the Jan. opener, shares slipped more than 7%. At the same time, IBM stock is now undervalued. Presently, the market prices shares at a forward multiple of 13.83. As a discount to projected earnings, IBM ranks better than 77.24% of the competition.
Significantly, IBM offers a forward yield of 5.06%, handily beating out the tech sector’s average yield of 1.37%. With 30 years of consecutive dividend increases, it’s a status management won’t give up easily. Finally, analysts peg IBM as a buy with an average price target of $146.56 (implying almost 12% growth). Therefore, it’s a solid choice among ideal stocks for 40-year-olds.
AbbVie (ABBV)
Source: Zurijeta / Shutterstock.com
A pharmaceutical giant, AbbVie (NYSE:ABBV) ranks among the best investments for 40-year-olds because of burgeoning relevancies. In particular, its acquisition of Allergan offers longstanding significance thanks to Botox. With digitalization and social media making people much more shallow, you can almost bet the farm that Botox demand will skyrocket as millennials (and eventually Generation Z) hit middle age.
Put another way, AbbVie represents an opportunity you can grow with. That’s why without hesitation, it’s one of my top stocks for midlife investing. Eve better, the market prices ABBV at a forward multiple of 12.09. As a discount to projected earnings, the pharma ranks better than nearly 68% of the field.
In terms of passive income, AbbVie carries a forward yield of 4.39%. This stat ranks much higher than the healthcare sector’s average yield of 1.58%. As well, the company enjoys 51 years of consecutive dividend increases.
Lastly, analysts peg ABBV as a moderate buy with an average price target of $167.44 (implying 24% upside potential).
Chevron (CVX)
Source: shutterstock.com/CC7
I know, I know – electric vehicles are the future. Therefore, a hydrocarbon energy giant – particularly one that’s involved in the entire value chain of the underlying industry – seems irrelevant. Nevertheless, I believe Chevron (NYSE:CVX) ranks among the best investments for 40-year-olds.
Fundamentally, I’m having a hard time believing that we’ll see full integration of EVs anytime soon. Let’s set aside the fact that they’re quite pricey at the moment. More than a few sources have warned that the current electric grid can’t handle extreme weather conditions. So, if air conditioners running during the summer poses severe problems, let’s not even talk about EVs.
Plus, because so many voices in the mainstream talk up EVs, few appreciate the growth and profitability machine that is Chevron. As well, the company offers a forward yield of 3.92%, which isn’t bad considering its sustainable payout ratio of 42.23%.
In closing, analysts peg CVX as a moderate buy with an average price target of $189.55 (implying 23% upside). It’s somewhat risky but I believe is a relevant opportunity for buy now stocks for 40-year-olds.
Amazon (AMZN)
Source: Freedom365day / Shutterstock.com
Presenting Amazon (NASDAQ:AMZN) as one of the investments for 40-year-olds brings up some complications because of forward potential. You see, AMZN already skyrocketed more than 48% since the beginning of this year. So, it’s possible that in the immediate future, shares could lose some steam. Nevertheless, over the long run, I believe it’s a top idea to consider.
While it’s been around the block several times, Amazon still represents a massive growth machine. Per Gurufocus, its three-year revenue growth rate (on a per-share basis) clocks in at 21.9%, above 83.43% of its peers. Also, its book growth during the same period stands at 31.8%, above 85.9%.
Fundamentally, e-commerce as a percentage of total retail sales has been steadily increasing since the second quarter of last year. Personally, I see this metric rising and Amazon dominating e-commerce because of its convenience. With next day and sometimes same-day deliveries, you don’t need to ever enter a brick-and-mortar anymore.
Turning to Wall Street, analysts peg AMZN a consensus strong buy with an average price target of $139.80 (implying 10% upside).
MercadoLibre (MELI)
Source: Chompoo Suriyo / Shutterstock.com
While investments for 40-year-olds should arguably focus mostly in the domestic market, going international with MercadoLibre (NASDAQ:MELI) makes sense for more adventurous experienced investors. An Argentine company headquartered in Montevideo, Uruguay, MercadoLibre’s online marketplace and auctioning business is particularly relevant thanks to the Latin America angle.
Since the beginning of this year, MELI gained nearly 40%. Over the past 365 days, it gained just over 61% of equity value. However, that momentum came at a cost, with shares being overpriced. For instance, MELI trades at a forward multiple of 67.76, ranking worse than 92.86% of cyclical retail competitors.
At the same time, the company benefits from strong operational stats. Its three-year revenue growth rate pings at 63.3%. Also, it enjoys a trailing-year net margin of 5.46%, outpacing almost 70% of rivals. For patient buyers, MELI could be one of the ideal stocks for 40-year-olds.
Looking to the Street, analysts peg MELI as a consensus strong buy with an average price target of $1,597.50 (implying over 38% growth).
PayPal (PYPL)
Source: ImageFlow/Shutterstock.com
One of the higher-risk plays associated with investments for 40-year-olds, PayPal (NASDAQ:PYPL) began soaring from the lows of the Covid-19 pandemic through the final months of 2021. Unfortunately, a combination of consumer pressures (related to inflation) and competition in the financial technology (fintech) space cratered PYPL. Even now, it’s still struggling, losing 11% since the Jan. opener.
Still, PYPL could be one of the top stocks for midlife investing for those willing to speculate a bit. True, the red ink doesn’t exactly inspire confidence. However, PayPal carries tremendous brand power and awareness. Also, being around for since the late 1990s affords familiarity and provenance that fresh rivals just can’t compete with.
On a fundamental note, I’m looking to the burgeoning gig economy to bolster PYPL. According to Business Research Insights, the global gig economy could hit $873 billion by 2028. So, some patience with PayPal can go a long way.
Lastly, analysts peg PYPL a buy with an average price target of $91.22 (implying over 37% growth). Thus, it’s a compelling idea for stocks for 40-year-old investors.
Service Corp (SCI)
Source: AdityaB. Photography/ShutterStock.com
When it comes to investments for 40-year-olds, I might as well save the most awkward for last. With Service Corp (NYSE:SCI), we’re talking of course about final services. Based on the average U.S. life expectancy of 77.28 years, people in their 40s have fewer years remaining (on average) in their future than they’ve clocked on the odometer. Plus, with life expectancy in this country declining, it’s a very uncomfortable topic.
Fortunately, if I can even say that, Service Corp is a permanently relevant enterprise that will likely enjoy a pushed-up demand profile. Again, because life expectancy in this nation is declining, Service should more quickly reap the benefits of its…err…total addressable market.
Also, investors should take a closer look at SCI as one of the stocks for 40-year-old investors because it’s underappreciated. Per Gurufocus, the company’s three-year revenue growth rate pings at 13.8%, above 85.42% of its competitors. Also, it trades at a lowly forward multiple of 18.32, ranking better than 60% of rivals.
On a final note, analysts peg SCI a moderate buy with an average target of $82.50 (implying nearly 29% upside).
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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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: Zurijeta / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) ranks among the best investments for 40-year-olds because of burgeoning relevancies. Put another way, AbbVie represents an opportunity you can grow with. Eve better, the market prices ABBV at a forward multiple of 12.09. | Lastly, analysts peg ABBV as a moderate buy with an average price target of $167.44 (implying 24% upside potential). AbbVie (ABBV) Source: Zurijeta / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) ranks among the best investments for 40-year-olds because of burgeoning relevancies. Put another way, AbbVie represents an opportunity you can grow with. | AbbVie (ABBV) Source: Zurijeta / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) ranks among the best investments for 40-year-olds because of burgeoning relevancies. Put another way, AbbVie represents an opportunity you can grow with. Eve better, the market prices ABBV at a forward multiple of 12.09. | AbbVie (ABBV) Source: Zurijeta / Shutterstock.com A pharmaceutical giant, AbbVie (NYSE:ABBV) ranks among the best investments for 40-year-olds because of burgeoning relevancies. Put another way, AbbVie represents an opportunity you can grow with. Eve better, the market prices ABBV at a forward multiple of 12.09. |
22446.0 | 2023-06-27 00:00:00 UTC | Top Stock Reports for Novo Nordisk, Home Depot & Walt Disney | ABBV | https://www.nasdaq.com/articles/top-stock-reports-for-novo-nordisk-home-depot-walt-disney | nan | nan | Tuesday, June 27, 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 Novo Nordisk A/S (NVO), The Home Depot, Inc. (HD) 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 >>>
Shares of Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+40.6% vs. +8.9%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining and maintaining momentum.
Label expansion of the diabetes drugs is likely to further boost sales. Novo resolved the supply issues with Wegovy, which led to a sales increase in the first quarter of 2023, consequently raising its full-year guidance. The company’s diversifying efforts to develop new treatments are reassuring.
However, Pfizer’s successful study on its oral type II diabetes candidate, danuglipron, is alarming. If approved, Pfizer is likely to eat away from Novo Nordisk’s Diabetes care market share. Patent expiry and pricing pressure across the diabetes market also remain a woe.
(You can read the full research report on Novo Nordisk here >>>)
Home Depot shares have gained +17.0% over the past year against the Zacks Building Products - Retail industry’s gain of +24.2%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.
The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.
However, shares of Home Depot lagged the industry year to date on dismal performance in first-quarter fiscal 2023. Results were impacted by a more broad-based pressure across the business, driven by softened demand versus expectations. A deflation in lumber prices and unfavorable weather have also hurt the results. HD also provided a conservative view for fiscal 2023.
(You can read the full research report on Home Depot here >>>)
Shares of Walt Disney have gained +5.4% over the past six months against the Zacks Media Conglomerates industry’s gain of +6.5%. The company is benefiting from growing popularity of Disney+ core, owing to a strong content portfolio and a cheaper bundle offering.
Strong line-up of movies that include The Little Mermaid; Indiana Jones and the Dial of Destiny; Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment. Revival in Parks, Experiences and Products businesses is encouraging.
Theme Park business is likely to gain from strong demand across both the domestic and international parks. However, Disney+’s profitability continues to be negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Intuit Inc. (INTU) and Automatic Data Processing, Inc. (ADP).
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
Wegovy to Boost Novo Nordisk (NVO), Market Rivalry a Woe
Home Depot's (HD) Interconnected Strategy to Boost Sales
Disney+ Growth & Revival of Parks Business Aids Disney (DIS)
Featured Reports
AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales
Per the Zacks Analyst, AbbVie has several new drugs in its portfolio, like Rinvoq and Skyrizi, which have the potential to drive its top line and make up for sales lost due to Humira generic erosion.
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.
Solid Business Model Aids ADP, Escalating Expenses Hurt
The Zacks Analyst is positive about ADP's business model that ensures high recurring revenues, good margins, robust client retention and low capital expenditure. Rising expenses remain a concern.
Technology, Loans Support ICICI Bank (IBN), High Costs Ail
Per the Zacks analyst, ICICI Bank's efforts to digitize operations, rising rates and steady loan and deposit growth will aid profitability. Yet, weak credit quality and higher costs are key headwinds.
Progressive (PGR) Gains on Premiums, Cat Loss Woes Linger
Per the Zacks analyst, Progressive is set to grow on solid Agency and Direct business, which will drive improvement in net premiums. However, exposure to catastrophe loss remains a headwind.
Solid Investments Aid PSEG (PEG) Growth, Weak Solvency Woes
Per the Zacks analyst, Public Service Enterprise Group's, also known as PSEG, consistent investments in infrastructure projects may aid its growth. Yet, its weak solvency position remains a bottleneck
Aspen (AZPN) To Benefit From Diversified Product Portfolio
Per the Zacks analyst, Aspen will benefit from increased demand across all business segment and frequent product launches. However, stiff competition is a headwind
New Upgrades
Strength in Energy Systems Segment Benefits EnerSys (ENS)
Per the Zacks analyst, EnerSys' Energy Systems segment is driven by robust broadband, data center and telecom businesses. The company's shareholder friendly measures are encouraging.
Dycom (DY) Rides on Solid Telecommunications Business Growth
Per the Zacks analyst, Dycom is befitting from increased demand for network bandwidth and mobile broadband. Also, new contracts and Engineering & Construction investments bode well.
Online Strength & GenNext Plan to Aid Aaron's (AAN) Top Line
Per the Zacks analyst, Aaron's has been gaining from cost-reduction initiatives, increased online traffic and strength in GenNext stores. This led to revenue growth of 21.5% in Q1.
New Downgrades
Callon (CPE) Likely to Get Hurt by Aggressive Capital Budget
The Zacks analyst believes that Callon's higher 2023 operational capital budget of $1,000 million can affect its profitability. Also, the company's debt-laden balance sheet is concerning.
Drop in M&A Activity Affects Revenues, Net Outflow Increases
Per the Zacks Analyst, slowdown in deal making activity will affect financial advisory revenues. Also, a rise in net outflows and unsustainable capital deployment activities are concerning.
Regulatory Requirements, Forex Woes Impairs Catalent (CTLT)
The Zacks analyst is worried about Catalent's operation in a highly regulated healthcare industry. Unfavorable currency movement is an added issue.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Wegovy to Boost Novo Nordisk (NVO), Market Rivalry a Woe Home Depot's (HD) Interconnected Strategy to Boost Sales Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Per the Zacks Analyst, AbbVie has several new drugs in its portfolio, like Rinvoq and Skyrizi, which have the potential to drive its top line and make up for sales lost due to Humira generic erosion. Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Intuit Inc. (INTU) and Automatic Data Processing, Inc. (ADP). Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Wegovy to Boost Novo Nordisk (NVO), Market Rivalry a Woe Home Depot's (HD) Interconnected Strategy to Boost Sales Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Per the Zacks Analyst, AbbVie has several new drugs in its portfolio, like Rinvoq and Skyrizi, which have the potential to drive its top line and make up for sales lost due to Humira generic erosion. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Intuit Inc. (INTU) and Automatic Data Processing, Inc. (ADP). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Wegovy to Boost Novo Nordisk (NVO), Market Rivalry a Woe Home Depot's (HD) Interconnected Strategy to Boost Sales Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Per the Zacks Analyst, AbbVie has several new drugs in its portfolio, like Rinvoq and Skyrizi, which have the potential to drive its top line and make up for sales lost due to Humira generic erosion. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Intuit Inc. (INTU) and Automatic Data Processing, Inc. (ADP). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Wegovy to Boost Novo Nordisk (NVO), Market Rivalry a Woe Home Depot's (HD) Interconnected Strategy to Boost Sales Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Per the Zacks Analyst, AbbVie has several new drugs in its portfolio, like Rinvoq and Skyrizi, which have the potential to drive its top line and make up for sales lost due to Humira generic erosion. Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Intuit Inc. (INTU) and Automatic Data Processing, Inc. (ADP). Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22447.0 | 2023-06-27 00:00:00 UTC | Is Global X SuperDividend U.S. ETF (DIV) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-global-x-superdividend-u.s.-etf-div-a-strong-etf-right-now-8 | nan | nan | The Global X SuperDividend U.S. ETF (DIV) was launched on 03/11/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Global X Management, and has been able to amass over $600.30 million, which makes it one of the larger ETFs in the Style Box - All Cap Value. DIV seeks to match the performance of the INDXX SuperDividend U.S. Low Volatility Index before fees and expenses.
The INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally weighted common stocks, MLPs & REITs that rank among the highest dividend yielding equity securities in the US.
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.
Annual operating expenses for DIV are 0.45%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 7.53%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector - about 25.40% of the portfolio. Financials and Consumer Staples round out the top three.
Taking into account individual holdings, B&g Foods Inc (BGS) accounts for about 2.71% of the fund's total assets, followed by San Juan Basin Royalty Tr (SJT) and Abbvie Inc (ABBV).
Its top 10 holdings account for approximately 22.38% of DIV's total assets under management.
Performance and Risk
The ETF has lost about -9.79% and is down about -9.14% so far this year and in the past one year (as of 06/27/2023), respectively. DIV has traded between $16.05 and $21.08 during this last 52-week period.
DIV has a beta of 1.02 and standard deviation of 15.33% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Global X SuperDividend U.S. ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
WBI Power Factor High Dividend ETF (WBIY) tracks Solactive Power Factor High Dividend Index and the Global X SuperDividend ETF (SDIV) tracks Solactive Global SuperDividend Index. WBI Power Factor High Dividend ETF has $60.40 million in assets, Global X SuperDividend ETF has $746.69 million. WBIY has an expense ratio of 0.70% and SDIV charges 0.58%.
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 - All 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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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Global X SuperDividend U.S. ETF (DIV): ETF Research Reports
B&G Foods, Inc. (BGS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Global X SuperDividend ETF (SDIV): ETF Research Reports
WBI Power Factor High Dividend ETF (WBIY): ETF Research Reports
San Juan Basin Royalty Trust (SJT) : 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. | Taking into account individual holdings, B&g Foods Inc (BGS) accounts for about 2.71% of the fund's total assets, followed by San Juan Basin Royalty Tr (SJT) and Abbvie Inc (ABBV). Click to get this free report Global X SuperDividend U.S. ETF (DIV): ETF Research Reports B&G Foods, Inc. (BGS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Global X SuperDividend ETF (SDIV): ETF Research Reports WBI Power Factor High Dividend ETF (WBIY): ETF Research Reports San Juan Basin Royalty Trust (SJT) : Free Stock Analysis Report To read this article on Zacks.com click here. The Global X SuperDividend U.S. ETF (DIV) was launched on 03/11/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market. | Click to get this free report Global X SuperDividend U.S. ETF (DIV): ETF Research Reports B&G Foods, Inc. (BGS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Global X SuperDividend ETF (SDIV): ETF Research Reports WBI Power Factor High Dividend ETF (WBIY): ETF Research Reports San Juan Basin Royalty Trust (SJT) : Free Stock Analysis Report To read this article on Zacks.com click here. Taking into account individual holdings, B&g Foods Inc (BGS) accounts for about 2.71% of the fund's total assets, followed by San Juan Basin Royalty Tr (SJT) and Abbvie Inc (ABBV). WBI Power Factor High Dividend ETF (WBIY) tracks Solactive Power Factor High Dividend Index and the Global X SuperDividend ETF (SDIV) tracks Solactive Global SuperDividend Index. | Click to get this free report Global X SuperDividend U.S. ETF (DIV): ETF Research Reports B&G Foods, Inc. (BGS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Global X SuperDividend ETF (SDIV): ETF Research Reports WBI Power Factor High Dividend ETF (WBIY): ETF Research Reports San Juan Basin Royalty Trust (SJT) : Free Stock Analysis Report To read this article on Zacks.com click here. Taking into account individual holdings, B&g Foods Inc (BGS) accounts for about 2.71% of the fund's total assets, followed by San Juan Basin Royalty Tr (SJT) and Abbvie Inc (ABBV). WBI Power Factor High Dividend ETF (WBIY) tracks Solactive Power Factor High Dividend Index and the Global X SuperDividend ETF (SDIV) tracks Solactive Global SuperDividend Index. | Taking into account individual holdings, B&g Foods Inc (BGS) accounts for about 2.71% of the fund's total assets, followed by San Juan Basin Royalty Tr (SJT) and Abbvie Inc (ABBV). Click to get this free report Global X SuperDividend U.S. ETF (DIV): ETF Research Reports B&G Foods, Inc. (BGS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Global X SuperDividend ETF (SDIV): ETF Research Reports WBI Power Factor High Dividend ETF (WBIY): ETF Research Reports San Juan Basin Royalty Trust (SJT) : Free Stock Analysis Report To read this article on Zacks.com click here. The Global X SuperDividend U.S. ETF (DIV) was launched on 03/11/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market. |
22448.0 | 2023-06-27 00:00:00 UTC | Siemens and UCLA say data compromised in MOVEit data breach | ABBV | https://www.nasdaq.com/articles/siemens-and-ucla-say-data-compromised-in-moveit-data-breach | nan | nan | Rewrites with comments from UCLA, FBI, background
FRANKFURT, June 27 (Reuters) - Siemens Energy ENR1n.DE and the University of California, Los Angeles (UCLA) said on Tuesday they were among victims of the MOVEit hack that has affected scores of corporations, governments and other institutions in recent weeks.
The hackers behind the wide-ranging breach, Cl0p, had earlier boasted about stealing data from UCLA and Siemens on their website. Cl0p also claimed to have stolen data from biopharmaceutical company Abbvie Inc ABBV.N and French industrial group Schneider Electric SCHN.PA.
Those two firms did not immediately provide comment. Cl0p did not immediately return a message. The FBI said in a statement it was "aware of and investigating the recent exploitation of a MOVEit vulnerability by malicious ransomware actors".
Siemens and UCLA provided few additional details about the scope or consequences of the breach. Siemens said none of its critical data had been compromised and its operations remained unaffected. UCLA said its campus systems were unaffected and that "all of those who have been impacted have been notified".
The MOVEit software is used by organizations around the world to share sensitive data. Last week, U.S. pension fund Calpers and insurer Genworth Financial GNW.N said personal information of their members and customers had been compromised as part of the hack.
(Reporting by Christoph Steitz and Raphael Satter Editing by Matthias Williams and Mark Potter)
((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cl0p also claimed to have stolen data from biopharmaceutical company Abbvie Inc ABBV.N and French industrial group Schneider Electric SCHN.PA. The FBI said in a statement it was "aware of and investigating the recent exploitation of a MOVEit vulnerability by malicious ransomware actors". Last week, U.S. pension fund Calpers and insurer Genworth Financial GNW.N said personal information of their members and customers had been compromised as part of the hack. | Cl0p also claimed to have stolen data from biopharmaceutical company Abbvie Inc ABBV.N and French industrial group Schneider Electric SCHN.PA. Rewrites with comments from UCLA, FBI, background FRANKFURT, June 27 (Reuters) - Siemens Energy ENR1n.DE and the University of California, Los Angeles (UCLA) said on Tuesday they were among victims of the MOVEit hack that has affected scores of corporations, governments and other institutions in recent weeks. Those two firms did not immediately provide comment. | Cl0p also claimed to have stolen data from biopharmaceutical company Abbvie Inc ABBV.N and French industrial group Schneider Electric SCHN.PA. Rewrites with comments from UCLA, FBI, background FRANKFURT, June 27 (Reuters) - Siemens Energy ENR1n.DE and the University of California, Los Angeles (UCLA) said on Tuesday they were among victims of the MOVEit hack that has affected scores of corporations, governments and other institutions in recent weeks. The hackers behind the wide-ranging breach, Cl0p, had earlier boasted about stealing data from UCLA and Siemens on their website. | Cl0p also claimed to have stolen data from biopharmaceutical company Abbvie Inc ABBV.N and French industrial group Schneider Electric SCHN.PA. Rewrites with comments from UCLA, FBI, background FRANKFURT, June 27 (Reuters) - Siemens Energy ENR1n.DE and the University of California, Los Angeles (UCLA) said on Tuesday they were among victims of the MOVEit hack that has affected scores of corporations, governments and other institutions in recent weeks. Those two firms did not immediately provide comment. |
22449.0 | 2023-06-26 00:00:00 UTC | AbbVie (ABBV) Gets CHMP Positive Opinion for Atogepant Approval | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gets-chmp-positive-opinion-for-atogepant-approval | nan | nan | AbbVie ABBV announced that the European Medicines Agency's (“EMA”) Committee for Medicinal Products for Human Use (“CHMP”) has given a positive opinion for atogepant. The CHMP has recommended approval of atogepant to treat migraine in adults. AbbVie’s atogepant is a once-daily, orally administered, CGRP receptor antagonist, to treat patients who experience four or more migraine days per month.
Chronic migraine (CM) is characterized by headaches for 15 or more days a month and at least eight migraine days, while episodic migraine (EM) refers to people with migraine who have less than 15 headache days per month. It’s a serious condition that reduces the efficiency of people suffering from it. In the European Union (EU), an estimated 41 million people suffer from migraine, which is considered to deprive the economy of approximately €50 billion annually due to reduced productivity and workdays lost.
Year to date, shares of AbbVie have lost 15.9% against the industry’s 2% rise.
Image Source: Zacks Investment Research
The positive opinion adopted by the EMA’s CHMP was based on results from two pivotal phase III studies, PROGRESS and ADVANCE, evaluating 60 mg dose strength of atogepant in adult patients with CM or EM, respectively. Both studies met the primary endpoint of a statistically significant reduction in mean monthly migraine days, compared to the treatment with placebo for 12 weeks. Furthermore, treatment with atogepant also met all secondary endpoints demonstrating statistically significant improvements.
ABBV further reported that the 60 mg dose strength of atogepant demonstrated a safety profile consistent with previous studies and was overall well-tolerated by the patient population. The most common side effects of treatment with atogepant were constipation, nausea and fatigue. Nausea was observed to cause most study discontinuations related to an adverse drug reaction.
Subject to approval, AbbVie is set to become the only company offering a drug with the CGRP receptor antagonist mechanism of action for the treatment of both episodic and chronic migraine in the EU.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Zacks Rank and Stocks to Consider
AbbVie currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall medical sector are Novartis NVS, Adaptimmune Therapeutics ADAP and Akero Therapeutics AKRO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for Novartis’ 2023 earnings per share has increased from $6.55 to $6.74. During the same period, the estimate for Novartis’ 2024 earnings has increased from $7.04 to $7.28. Year to date, shares of Novartis have gained by 11%.
NVS beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 5.15%.
In the past 90 days, the Zacks Consensus Estimate for Adaptimmune Therapeutics’ 2023 loss per share has narrowed from 63 cents to 46 cents. During the same period, the estimate for Adaptimmune Therapeutics’ 2024 loss per share has narrowed from 59 cents to 56 cents. Year to date, shares of ADAP have fallen by 34.9%.
ADAP beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 36.89%.
In the past 90 days, the Zacks Consensus Estimate for Akero Therapeutics’ 2023 loss per share has narrowed from $2.96 to $2.80. During the same period, the estimate for Akero Therapeutics’ 2024 loss per share has narrowed from $3.40 to $3.27. Year to date, shares of AKRO have lost 7.3%.
AKRO beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 7.96%.
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Novartis AG (NVS) : 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. | Subject to approval, AbbVie is set to become the only company offering a drug with the CGRP receptor antagonist mechanism of action for the treatment of both episodic and chronic migraine in the EU. AbbVie ABBV announced that the European Medicines Agency's (“EMA”) Committee for Medicinal Products for Human Use (“CHMP”) has given a positive opinion for atogepant. AbbVie’s atogepant is a once-daily, orally administered, CGRP receptor antagonist, to treat patients who experience four or more migraine days per month. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Adaptimmune Therapeutics PLC (ADAP) : Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that the European Medicines Agency's (“EMA”) Committee for Medicinal Products for Human Use (“CHMP”) has given a positive opinion for atogepant. AbbVie’s atogepant is a once-daily, orally administered, CGRP receptor antagonist, to treat patients who experience four or more migraine days per month. | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Zacks Rank and Stocks to Consider AbbVie currently has a Zacks Rank #3 (Hold). Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Adaptimmune Therapeutics PLC (ADAP) : Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that the European Medicines Agency's (“EMA”) Committee for Medicinal Products for Human Use (“CHMP”) has given a positive opinion for atogepant. | AbbVie ABBV announced that the European Medicines Agency's (“EMA”) Committee for Medicinal Products for Human Use (“CHMP”) has given a positive opinion for atogepant. AbbVie’s atogepant is a once-daily, orally administered, CGRP receptor antagonist, to treat patients who experience four or more migraine days per month. Year to date, shares of AbbVie have lost 15.9% against the industry’s 2% rise. |
22450.0 | 2023-06-26 00:00:00 UTC | Notable ETF Inflow Detected - DGRO, JNJ, XOM, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-dgro-jnj-xom-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 Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $88.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 461,150,000 to 462,900,000). Among the largest underlying components of DGRO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.9%, Exxon Mobil Corp (Symbol: XOM) is up about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.8%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average:
Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $52.975 as the 52 week high point — that compares with a last trade of $50.34. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
DSG Historical Stock Prices
Institutional Holders of LKQ
EDBL market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DGRO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.9%, Exxon Mobil Corp (Symbol: XOM) is up about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.8%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of DGRO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.9%, Exxon Mobil Corp (Symbol: XOM) is up about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.8%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $52.975 as the 52 week high point — that compares with a last trade of $50.34. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of DGRO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.9%, Exxon Mobil Corp (Symbol: XOM) is up about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $88.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 461,150,000 to 462,900,000). For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $52.975 as the 52 week high point — that compares with a last trade of $50.34. | Among the largest underlying components of DGRO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.9%, Exxon Mobil Corp (Symbol: XOM) is up about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $88.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 461,150,000 to 462,900,000). For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $52.975 as the 52 week high point — that compares with a last trade of $50.34. |
22451.0 | 2023-06-26 00:00:00 UTC | Should SPDR Portfolio S&P 500 High Dividend ETF (SPYD) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-high-dividend-etf-spyd-be-on-your-investing-radar-7 | nan | nan | Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the SPDR Portfolio S&P 500 High Dividend ETF (SPYD), a passively managed exchange traded fund launched on 10/21/2015.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $6.28 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 4.97%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Real Estate sector--about 22.40% of the portfolio. Financials and Utilities round out the top three.
Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG).
The top 10 holdings account for about 13.31% of total assets under management.
Performance and Risk
SPYD seeks to match the performance of the S&P 500 High Dividend Index before fees and expenses. The S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield.
The ETF has lost about -7.50% so far this year and is down about -4.70% in the last one year (as of 06/26/2023). In the past 52-week period, it has traded between $35.13 and $43.38.
The ETF has a beta of 0.99 and standard deviation of 20.25% for the trailing three-year period, making it a medium risk choice in the space. With about 82 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 High Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPYD is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.77 billion in assets, Vanguard Value ETF has $97.12 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
Packaging Corporation of America (PKG) : 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, Abbvie Inc. (ABBV) accounts for about 1.50% of total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : 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. It has amassed assets over $6.28 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : 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. You should consider the SPDR Portfolio S&P 500 High Dividend ETF (SPYD), a passively managed exchange traded fund launched on 10/21/2015. | Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : 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, Abbvie Inc. (ABBV) accounts for about 1.50% of total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Alternatives SPDR Portfolio S&P 500 High Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : 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. Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space. |
22452.0 | 2023-06-26 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-3 | nan | nan | AbbVie (ABBV) closed at $134.95 in the latest trading session, marking a -0.71% move from the prior day. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.
Prior to today's trading, shares of the drugmaker had lost 1.19% over the past month. This has lagged the Medical sector's gain of 1.08% and the S&P 500's gain of 5.01% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 13.06%. Meanwhile, our latest consensus estimate is calling for revenue of $13.52 billion, down 7.27% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.97 per share and revenue of $52.57 billion. These totals would mark changes of -20.33% and -9.45%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AbbVie is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 12.39. Its industry sports an average Forward P/E of 14.93, so we one might conclude that AbbVie is trading at a discount comparatively.
Meanwhile, ABBV's PEG ratio is currently 2.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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 $134.95 in the latest trading session, marking a -0.71% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 13.06%. | 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 $134.95 in the latest trading session, marking a -0.71% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. | AbbVie (ABBV) closed at $134.95 in the latest trading session, marking a -0.71% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 13.06%. | AbbVie (ABBV) closed at $134.95 in the latest trading session, marking a -0.71% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 13.06%. |
22453.0 | 2023-06-26 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-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. |
22454.0 | 2023-06-25 00:00:00 UTC | 1 Phenomenal High-Yield Dividend Stock You Can Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/1-phenomenal-high-yield-dividend-stock-you-can-buy-and-hold-forever | nan | nan | What's the biggest knock against many high-yield dividend stocks? Probably that either the dividend or the share price is likely to sink sooner or later. That means that you often won't want to own these stocks for very long.
There are exceptions, though. Here's one phenomenal high-yield dividend stock you can buy and hold forever.
Impeccable dividend credentials
AbbVie (NYSE: ABBV) isn't an ordinary dividend stock. First of all, the big drugmaker offers an especially juicy yield of over 4.3%. That's nearly three times greater than the average yield of a stock in the S&P 500.
Even better, AbbVie has an impressive track record of dividend increases. The company has raised its dividend for 51 consecutive years, making it a member of the elite group of Dividend Kings.
Some might argue that most of that achievement was made while AbbVie was part of Abbott Labs. That's true. However, it doesn't minimize the accomplishment. Furthermore, AbbVie has boosted its dividend by a whopping 270% since its spin-off from Abbott.
Importantly, AbbVie should be in a great position to continue its remarkable streak of dividend hikes. Last year, the company paid roughly $10 billion in dividends. But it generated around $24 billion in free cash flow.
Near-term challenges
One potential objection to investing in AbbVie is that company faces biosimilar competition for Humira. That's certainly a big deal. Humira raked in 37% of AbbVie's total revenue in 2022.
The company is already feeling the impact of new competition to Humira in the U.S. Global sales for the drug fell 25.2% year over year in the first quarter of this year. That dragged overall revenue down by 9.7%.
Don't give up on AbbVie because of these headwinds, though. The company has long known the day would come when its sales for Humira would tumble. And it has prepared for that day.
AbbVie already has two successors to Humira on the market (Rinvoq and Skyrizi). The company fully expects that these drugs together will generate greater sales than Humira did at its peak. It also has other strong growth drivers, notably including Botox, antipsychotic drug Vraylar, and migraine drug Ubrelvy.
The slump resulting from Humira losing U.S. patent exclusivity shouldn't last very long. AbbVie thinks that it will return to robust growth beginning in 2025.
Phenomenal
Most drugmakers will eventually face patent cliffs. The best ones, though, are able to successfully fund profits made from their top-selling drugs into research and development and dealmaking to build up strong pipelines. AbbVie has done just that.
The company's pipeline currently features more than 90 compounds in development. Over 50 of them are in either mid- or late-stage clinical testing. Roughly 60% of these programs have a novel mechanism of action.
AbbVie has also pulled off several smart acquisitions in recent years. The biggest of these was its 2019 purchase of Allergan. Its latest deal was the acquisition of DJS Antibodies.
The facts are clear. AbbVie boasts a great track record of execution. It has consistently met or beat its guidance. The company won't just survive the loss of exclusivity of its top drug but will ultimately thrive.
AbbVie pays a juicy dividend with a history of increases that few can top. That dividend will almost certainly continue to grow for years to come. I think we can truly sum up this high-yield dividend stock in one word -- phenomenal.
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Keith Speights has positions in AbbVie. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Near-term challenges One potential objection to investing in AbbVie is that company faces biosimilar competition for Humira. Impeccable dividend credentials AbbVie (NYSE: ABBV) isn't an ordinary dividend stock. Even better, AbbVie has an impressive track record of dividend increases. | AbbVie pays a juicy dividend with a history of increases that few can top. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Keith Speights has positions in AbbVie. Impeccable dividend credentials AbbVie (NYSE: ABBV) isn't an ordinary dividend stock. | Impeccable dividend credentials AbbVie (NYSE: ABBV) isn't an ordinary dividend stock. 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Keith Speights has positions in AbbVie. | AbbVie has done just that. Impeccable dividend credentials AbbVie (NYSE: ABBV) isn't an ordinary dividend stock. Even better, AbbVie has an impressive track record of dividend increases. |
22455.0 | 2023-06-24 00:00:00 UTC | ABBV Quantitative Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-quantitative-stock-analysis-0 | 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. |
22456.0 | 2023-06-24 00:00:00 UTC | 4 Stocks That Can Turn $100,000 Into $500,000 by the Time You Retire | ABBV | https://www.nasdaq.com/articles/4-stocks-that-can-turn-%24100000-into-%24500000-by-the-time-you-retire-5 | nan | nan | Are you truly ready to dive into a handful of stocks and then sit on them for years -- maybe even decades -- in search of future fortune?
It's OK if you aren't. For some people, navigating the market's every twist and turn and perpetually looking for the next hot stock is just their jam. For others, though, buying and holding the right growth stocks makes the most sense.
Here's a closer look at four buy-and-hold growth stocks capable of dishing out triple-digit gains over the course of the next 10 to 20 years.
1. Microsoft
Microsoft (NASDAQ: MSFT) is of course the centerpiece of the personal computer market. GlobalStats estimates Microsoft's Windows operating system is installed on two-thirds of the world's actively used PCs, making the company the top gatekeeper (of sorts) for people's access to the internet.
Microsoft is so much more than Windows these days, however. Its cloud computing arm now accounts for 23% of the world's cloud computing revenue, according to numbers from Synergy Research, and it's outgrowing all others on this front. The software giant also still commands a huge piece of the office productivity market now that cloud-based Office 365 is available at a nominal cost. The Xbox video gaming ecosystem is a Microsoft product as well. Then there's the ancillary business support services most people never see, or even think about.
The point is, the world is highly dependent on Microsoft, and not too terribly interested in venturing into less-known and less-proven platforms.
Evidence of this claim lies in its results. Not once since late-2017 has the company failed to drive year-over-year quarterly revenue growth of some degree, even including the early days of the COVID-19 pandemic. Operating income growth has been almost as reliable. Credit the relatively young business model of renting rather than outright selling access to much of its software, which generates consistent and predictable sales.
MSFT Revenue (Quarterly) data by YCharts
Both the top and bottom lines are running into economic headwinds now. But, Microsoft being what it is, there's little reason to doubt it will be able to push through this one as it has all the others.
2. Broadcom
When most investors think of the microchip business, high-profile companies like Intel and Nvidia come to mind. And to be fair, both are important to the industry. If there was one overlooked name in the business you'd desperately miss were it to close shop, however, it would arguably be Broadcom (NASDAQ: AVGO).
See, while Broadcom doesn't make computer processors or graphics cards, it does make semiconductors found in everything from fiber-optic networking equipment to ethernet adapters to Wi-Fi chips to data storage controllers. Its customers include data centers, technology-driven factories, and telecom service providers, just to name a few.
There's a trade-off investors need to consider. That is, while companies like Nvidia or Intel regularly report sales and earnings growth well into the double digits, Broadcom doesn't. For perspective, this year's expected top-line growth of less than 8% and next year's projected growth of under 7% are more or less the current norm. That's not exactly compelling.
The trade-off may well be worth it, though. Broadcom's sales are reliably in that single-digit range from one year to the next, whereas companies such as Intel and Nvidia are one developmental misstep or one economic downturn away from a major sales setback. That's just the nature of being at the cutting edge of any technology business, which isn't where Broadcom operates. Broadcom makes somewhat simpler chips used in commonly purchased equipment, but it's still the powerhouse of that proven arena.
3. Amgen
While they may know the name, most investors would be hard-pressed to name a single drug that pharmaceutical company Amgen (NASDAQ: AMGN) makes. And the company likes it that way.
To fully understand why this is the case, however, you have to use another pharma name as an example of what not to do.
Kudos to pharma outfit AbbVie (NYSE: ABBV) for having the foresight and research and development acumen to turn the once-overlooked arthritis treatment Humira into one of the world's best-selling drugs. There's a clear downside to developing a blockbuster drug, though. That is, it's easy to become too reliant on that single drug's sales. Sooner or later patent protection expires, upending that revenue. For AbbVie, the end of Humira's patent protection is already taking a big bite out of what as recently as last year accounted for over one-third of its sales. The drug's revenue is expected to fall 27% in Abbvie's second quarter and fall 37% for the full year.
Amgen doesn't have this problem. No single drug makes up more than 16% of its total sales, while most of them account for less than 5% of its total top line.
Don't confuse this lack of flagship drugs as developmental weakness. It's by design. Amgen thinks about its pipeline and portfolio very carefully, limiting it to investments that make good fiscal sense. Indeed, it may be one of the most disciplined names in the business, making Amgen one of the market's best bets for long-term investors looking to build a nice retirement fund.
4. Lam Research
Last but not least, add Lam Research (NASDAQ: LRCX) to your list of growth stocks with the potential to grow into a five-bagger by the time you retire.
If you're old enough, you've probably heard the one about how the gold rush of 1849 enriched the people selling pickaxes far more than it rewarded actual gold prospectors. In many ways, the same idea applies to Lam Research. It's not a semiconductor company. Rather, it offers semiconductor manufacturing tools to the tech companies that do such fabrication work, offloading much of the risk of being involved in the chip business.
And it's more than up to the task. Whether a foundry is looking to etch, strip and clean, or measure a wafer, Lam Research can deliver.
Lam's also perpetually getting better. Its recently unveiled Coronus DX bevel deposition solution (needed to prevent contamination in the silicon wafer fabrication process) is the industry's first of its kind, and will overcome the key challenges that are surfacing following the rise of next-generation 3D NAND and logic microchips.
Or if you're not a chip techie, Lam Research's new Coronus DX solution makes it easier to manufacture defect-free chips.
For investors, however, the big takeaway is that Lam is one of only a few players in the foundry support part of the semiconductor business that's set to keep growing. Business consulting outfit McKinsey & Company estimates the worldwide semiconductor business will be worth $1 trillion by 2030, up from 2021's $600 billion. If artificial intelligence is to become everything it's suggested to eventually become, though, that outlook may be far too modest.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lam Research, Microsoft, and Nvidia. The Motley Fool recommends Amgen, Broadcom, and Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. 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. | Kudos to pharma outfit AbbVie (NYSE: ABBV) for having the foresight and research and development acumen to turn the once-overlooked arthritis treatment Humira into one of the world's best-selling drugs. For AbbVie, the end of Humira's patent protection is already taking a big bite out of what as recently as last year accounted for over one-third of its sales. The drug's revenue is expected to fall 27% in Abbvie's second quarter and fall 37% for the full year. | Kudos to pharma outfit AbbVie (NYSE: ABBV) for having the foresight and research and development acumen to turn the once-overlooked arthritis treatment Humira into one of the world's best-selling drugs. For AbbVie, the end of Humira's patent protection is already taking a big bite out of what as recently as last year accounted for over one-third of its sales. The drug's revenue is expected to fall 27% in Abbvie's second quarter and fall 37% for the full year. | Kudos to pharma outfit AbbVie (NYSE: ABBV) for having the foresight and research and development acumen to turn the once-overlooked arthritis treatment Humira into one of the world's best-selling drugs. For AbbVie, the end of Humira's patent protection is already taking a big bite out of what as recently as last year accounted for over one-third of its sales. The drug's revenue is expected to fall 27% in Abbvie's second quarter and fall 37% for the full year. | Kudos to pharma outfit AbbVie (NYSE: ABBV) for having the foresight and research and development acumen to turn the once-overlooked arthritis treatment Humira into one of the world's best-selling drugs. For AbbVie, the end of Humira's patent protection is already taking a big bite out of what as recently as last year accounted for over one-third of its sales. The drug's revenue is expected to fall 27% in Abbvie's second quarter and fall 37% for the full year. |
22457.0 | 2023-06-23 00:00:00 UTC | Daily Dividend Report: DTE,AIT,ABBV,LEN,MATX | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-dteaitabbvlenmatx | nan | nan | The DTE Energy Board of Directors declared a $0.9525 per share dividend on its common stock payable Oct. 15, 2023, to shareholders of record at the close of business Sept. 18, 2023.
Applied Industrial Technologies Board of Directors has declared a quarterly cash dividend of $0.35 per common share, payable on August 31, 2023, to shareholders of record on August 15, 2023.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. The cash dividend is payable August 15, 2023, to stockholders of record at the close of business on July 14, 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.
Lennar, one of the nation's leading homebuilders, announced that its Board of Directors has declared a quarterly cash dividend of $0.375 per share for both Class A and Class B common stock payable on July 21, 2023 to holders of record at the close of business on July 7, 2023.
The Board of Directors of Matson, a leading U.S. carrier in the Pacific, today declared a third quarter dividend of $0.32 per common share. The dividend represents a one-cent, or 3.2%, increase over the previous quarter's dividend and will be paid on September 7, 2023 to all shareholders of record as of the close of business on August 3, 2023.
VIDEO: Daily Dividend Report: DTE,AIT,ABBV,LEN,MATX
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. |
22458.0 | 2023-06-23 00:00:00 UTC | AbbVie's Atogepant Secures Positive CHMP Opinion For The Preventive Treatment Of Migraine | ABBV | https://www.nasdaq.com/articles/abbvies-atogepant-secures-positive-chmp-opinion-for-the-preventive-treatment-of-migraine | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Friday that the Committee for Medicinal Products for Human Use or CHMP of European Medicines Agency has given a positive opinion on the approval of Atogepant for the preventive treatment of migraine in adults.
If approved by the European Commission, the company will be the only one to offer a daily once oral calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) treatment spanning both episodic and chronic migraine in the European Union.
The positive opinion on the drug is based on the results from two pivotal Phase 3 studies evaluating Atogepant for the prophylaxis of migraine in adults with episodic or chronic migraine. Both studies met their primary end point with a reduction in mean monthly migraine days compared to the placebo in the 12-week treatment period.
Atogepant is already approved in the U.S. under the brand name Qulipta, to prevent episodic and chronic migraine.
Chronic migraine has the characteristics of more headache days a month with at least eight migraine days. Episodic migraine refers to people who have less than 15 headache days per month.
Migraine is estimated to cost the economy 50 billion euros annually due to reduced productivity and lost workdays in Europe. It is very prevalent and affects around one billion people globally, including an estimated 41 million people in Europe.
In premarket activity, shares of AbbVie are trading at $137.10, down 0.23% or $0.31 on the New York Stock Exchange.
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 on Friday that the Committee for Medicinal Products for Human Use or CHMP of European Medicines Agency has given a positive opinion on the approval of Atogepant for the preventive treatment of migraine in adults. In premarket activity, shares of AbbVie are trading at $137.10, down 0.23% or $0.31 on the New York Stock Exchange. Both studies met their primary end point with a reduction in mean monthly migraine days compared to the placebo in the 12-week treatment period. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Friday that the Committee for Medicinal Products for Human Use or CHMP of European Medicines Agency has given a positive opinion on the approval of Atogepant for the preventive treatment of migraine in adults. In premarket activity, shares of AbbVie are trading at $137.10, down 0.23% or $0.31 on the New York Stock Exchange. The positive opinion on the drug is based on the results from two pivotal Phase 3 studies evaluating Atogepant for the prophylaxis of migraine in adults with episodic or chronic migraine. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Friday that the Committee for Medicinal Products for Human Use or CHMP of European Medicines Agency has given a positive opinion on the approval of Atogepant for the preventive treatment of migraine in adults. In premarket activity, shares of AbbVie are trading at $137.10, down 0.23% or $0.31 on the New York Stock Exchange. The positive opinion on the drug is based on the results from two pivotal Phase 3 studies evaluating Atogepant for the prophylaxis of migraine in adults with episodic or chronic migraine. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Friday that the Committee for Medicinal Products for Human Use or CHMP of European Medicines Agency has given a positive opinion on the approval of Atogepant for the preventive treatment of migraine in adults. In premarket activity, shares of AbbVie are trading at $137.10, down 0.23% or $0.31 on the New York Stock Exchange. Episodic migraine refers to people who have less than 15 headache days per month. |
22459.0 | 2023-06-22 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-40 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22460.0 | 2023-06-22 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-6 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned -3% over the past month versus the Zacks S&P 500 composite's +4.3% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.5% 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.
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 $2.93 per share, indicating a change of -13.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.97 points to a change of -20.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.04 indicates a change of +0.6% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $13.52 billion for the current quarter points to a year-over-year change of -7.3%. The $52.57 billion and $53.08 billion estimates for the current and next fiscal years indicate changes of -9.5% and +1%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $12.23 billion in the last reported quarter, representing a year-over-year change of -9.7%. EPS of $2.46 for the same period compares with $3.16 a year ago.
Compared to the Zacks Consensus Estimate of $12.08 billion, the reported revenues represent a surprise of +1.17%. The EPS surprise was +0.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.5% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $12.23 billion in the last reported quarter, representing a year-over-year change of -9.7%. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.5% over this period. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.5% over this period. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.5% over this period. For the current quarter, AbbVie is expected to post earnings of $2.93 per share, indicating a change of -13.1% from the year-ago quarter. |
22461.0 | 2023-06-22 00:00:00 UTC | 2 No-Brainer Healthcare Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-no-brainer-healthcare-stocks-to-buy-right-now-3 | nan | nan | Investors looking to participate in the stock market have a multitude of options, and it can sometimes be hard to separate the wheat from the chaff. But some companies look especially attractive, perhaps due to reasonable valuations, excellent prospects, or other factors.
Buying shares of such businesses and holding onto them for a while is one of the secrets to earning outsize returns over the long run. Let's examine two healthcare stocks that look like excellent picks right now: AbbVie (NYSE: ABBV) and Veeva Systems (NYSE: VEEV).
1. AbbVie
Pharmaceutical giant AbbVie isn't doing well in the stock market in 2023 thus far, and the reason behind that is no secret. The company lost U.S. patent exclusivity for its blockbuster drug Humira earlier this year. Biosimilar competition is already eating into the market share of the rheumatoid arthritis medicine. Due to this major patent cliff, AbbVie's sales will continue to decline until next year.
But these developments shouldn't have been a surprise. Humira is one of the best-selling drugs in the history of the industry. Losing patent protection was always a highly anticipated event. And what's more, AbbVie had prepared to deal with it. Once the dust settles, the company's revenue should start growing again, largely thanks to a duo of immunology medicines, Skyrizi and Rinvoq.
These drugs continue to earn key indications, many overlapping with Humira's most important ones. Management has predicted that Skyrizi and Rinvoq will eventually combine to exceed Humira's peak annual sales, something that should happen by 2027. There are other key growth drivers that will help AbbVie. Among them are migraine treatment Qulipta, depression medicine Vraylar, cancer therapy Venclexta, its Botox franchise, and potentially brand-new products that will come out of the dozens of programs currently in the company's pipeline.
AbbVie could also make new acquisitions, according to CEO Richard Gonzalez. So patient investors can rest assured that the drugmaker will eventually bounce back. Nor will AbbVie threaten its excellent dividend program because it is part of the prestigious group of Dividend Kings. The company has raised its payouts by about 54% in the past five years alone.
The market has punished AbbVie's stock despite its still bright long-term prospects and excellent dividend history, and that's what makes the company a no-brainer buy as its shares look very attractive at current levels. AbbVie is trading at a forward price-to-earnings (P/E) ratio of just 12.3, much better than the pharmaceutical industry average of 15.9.
With AbbVie's stock, investors should follow the advice of Warren Buffett and be greedy when others are fearful.
2. Veeva Systems
Veeva Systems offers a suite of cloud-based software solutions tailor-made for pharmaceutical, biotech, and medical device companies. Corporations in this industry face unique challenges. Bringing their products to market is a long, capital-intensive process that also requires abiding by a barrage of strict laws and regulations, and failure to do so can have costly consequences. Veeva Systems makes things easier for its clients.
The company's services are incredibly valuable, and it's not easy for its customers to migrate to a competing provider of cloud-based software programs for the life sciences. The shift would risk slowing the process of getting products to market, as well as the the loss of valuable data -- all serious potential pitfalls pharmaceutical companies would want to avoid at all costs.
That gives Veeva Systems' business a competitive edge in the form of high switching costs, and it is a crucial reason why the company is such an excellent stock to buy. Here is another: Veeva Systems still has plenty of growth potential left. After all, the life sciences industry is massive. The company estimates its total addressable market (TAM) is worth more than $13 billion.
Its current top line is a mere fraction of that figure. In the first quarter of Veeva's fiscal 2024 (ended April 30), the company's total revenue of $526.3 million increased by 4% year over year. For its full fiscal 2024, Veeva expects its top line to come in between $2.36 billion and $2.37 billion. In other words, even grabbing an additional 20% of its $13 billion TAM would more than double its revenue compared to what it expects for its current fiscal year.
VEEV PE Ratio (Forward) data by YCharts
Looking at valuation, Veeva Systems' stock isn't cheap, but its forward P/E of 43 looks reasonable compared to where it stood in late summer of 2022. In my view, the company will justify this valuation over the long run for investors who hold onto its shares.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Veeva Systems. 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 market has punished AbbVie's stock despite its still bright long-term prospects and excellent dividend history, and that's what makes the company a no-brainer buy as its shares look very attractive at current levels. Let's examine two healthcare stocks that look like excellent picks right now: AbbVie (NYSE: ABBV) and Veeva Systems (NYSE: VEEV). AbbVie Pharmaceutical giant AbbVie isn't doing well in the stock market in 2023 thus far, and the reason behind that is no secret. | The market has punished AbbVie's stock despite its still bright long-term prospects and excellent dividend history, and that's what makes the company a no-brainer buy as its shares look very attractive at current levels. Let's examine two healthcare stocks that look like excellent picks right now: AbbVie (NYSE: ABBV) and Veeva Systems (NYSE: VEEV). AbbVie Pharmaceutical giant AbbVie isn't doing well in the stock market in 2023 thus far, and the reason behind that is no secret. | AbbVie Pharmaceutical giant AbbVie isn't doing well in the stock market in 2023 thus far, and the reason behind that is no secret. The market has punished AbbVie's stock despite its still bright long-term prospects and excellent dividend history, and that's what makes the company a no-brainer buy as its shares look very attractive at current levels. Let's examine two healthcare stocks that look like excellent picks right now: AbbVie (NYSE: ABBV) and Veeva Systems (NYSE: VEEV). | AbbVie Pharmaceutical giant AbbVie isn't doing well in the stock market in 2023 thus far, and the reason behind that is no secret. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Let's examine two healthcare stocks that look like excellent picks right now: AbbVie (NYSE: ABBV) and Veeva Systems (NYSE: VEEV). |
22462.0 | 2023-06-21 00:00:00 UTC | Alleged Industrial Espionage Makes an Interesting Story | ABBV | https://www.nasdaq.com/articles/alleged-industrial-espionage-makes-an-interesting-story | nan | nan | In this podcast, Motley Fool senior analyst Bill Mann and host Deidre Woollard discuss:
The high value of getting a leg up on the competition in the semiconductor industry.
If companies can do anything to keep secrets from leaking out.
Why Alphabet's adtech is attracting regulators' attention.
Motley Fool host Ricky Mulvey and analyst Kirsten Guerra take a look at Vertex Pharmaceuticals and its role at the center of cystic fibrosis treatment.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Find out why Vertex Pharmaceuticals is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Vertex Pharmaceuticals is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of June 12, 2023
This video was recorded on June 15, 2023.
Deidre Woollard: The shadowy world of stealing tech secrets and Google's ad tech business raises European eyebrows. Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Deidre Woollard here with Motley Fool analyst, Bill Mann. How are you today Bill?
Bill Mann: Hey Deidre. How are you?
Deidre Woollard: I'm doing well. You brought up the story that I want to dive into because it sounds like the plot of a movie. You've got an executive, he's formerly at Samsung and another Korean manufacturer. He attempts to steal trade secrets and build a chip factory not even a mile away from the existing chip factory in China. What's the backstory here?
Bill Mann: It's a bold statement isn't it? Obviously, when something like this happens, this is a multimillion-dollar facility and it's industrial espionage on a massive scale. This is a fairly high ranking official at Samsung who stole the blueprints. When I say stole, let's start that again. Allegedly stole. I don't want us to end up on the wrong side of the law. According to the allegations, stole blueprints and designs to replicate an entire chip factory in China. Manufacturing has started, was in the city of Xi'an. You could basically see the new facility, the copied facility rising from the original Samsung facility. It's almost as if they were not particularly worried about getting caught.
Deidre Woollard: Yeah. Well, and I found it interesting that in this story, one deal fell through and he was able to find new backers. So this sort of seems like, is it a bit of a free for all with IP or companies not that concerned about where the information is coming from or is it a difference between design and know-how?
Bill Mann: They're estimating that the data that he stole was in the range of $200 million. The interesting thing to me is when you say backers, you would immediately say, well, someone within China was doing the backing, but there were Taiwanese firms involved, there were Japanese firms involved. He hired away 18 Korean experts and technologists as part of this audacious plot, if you will. It really just goes to show, on the one hand, the lengths to which companies will go and countries will go to steal, but also in this environment where semiconductors and chips are essentially the lifeblood of so many industries, is the lifeblood of so many economies. What you're talking about here is it's espionage on a geopolitical level. To say that it's company to company is one thing, but to say that this is something that in a world in which China is being restricted from access to equipment from ASML, for example. This is a huge potential deal and I guarantee you this is not the only place where this is happening.
Deidre Woollard: You mentioned ASML, so we've got this situation right now where we're trying to build factories in the US, we're trying to restrict China from knowing things. When we look ahead to the future, what do you think is going to happen to overall chip technology looking ahead like a decade? Are we going to develop separate pads here?
Bill Mann: I don't know, and I know that's a terrible answer because we're supposed to know things, but I really don't know. But I do suspect that this is, as I said, not the only time that this is happening. China will in fact not sit idly by and just say, well, we don't have access to chips. We might as well do something else. They will be developing very quickly. They don't have anywhere near the know-how to replicate ASML's technology or even Taiwan Semiconductor's technology. I would suspect that there will continue to be efforts if they are not available on formal channels, through more informal channels.
Deidre Woollard: It's not just the chips. There was a story that came out in Bloomberg a couple of weeks ago about a chemist to Coca-Cola, Shannon Yu, she tried to steal the secrets to Coca-Cola's can lining formula. She was setting up this new business in China. How big of a threat is this for companies in the US?
Bill Mann: It's a spectacularly large threat. I thought that was such a, I don't want to say a funny story, but it was so interesting because you assume if someone is stealing anything from Coca-Cola, it's the vaunted formula for Coca-Cola itself, but instead there is a lining that goes inside the cans which allows Coca-Cola products to be preserved longer, to remain fresh and that's what she was after. It doesn't seem on certain levels like that's that big a deal, but I can assure you that is a highly proprietary piece of technology that Coca-Cola has spent millions developing and is not interested in having it shared.
Deidre Woollard: Absolutely, and I think one of the things that always surprises me about stories like this is that despite all of the cybersecurity things we have in place, it gets relatively easy for someone who has knowledge of things to walk away with them. In that story, she was downloading things multiple times and the company seems to be aware of it, but didn't necessarily confront her about it.
Bill Mann: Yeah, cat videos that she was uploading at the same time. Who knows what they're doing to mask their activity? But in a knowledge economy, you're exactly right. The knowledge goes down the elevator every single day and leaves the building. Yes, there is a great capability and all sorts of incentive for people to take that knowledge with them. As former NFL Commissioner Roone Arledge said, "Whatever the question is here, the answer is money."
Deidre Woollard: The answer is always money. Is there anything that companies can do to stop this sort of thing or is this always trying to plug a hole that there's just another hole that's just going to pop up?
Bill Mann: Well, I think that there are an endless amount of ways in which companies and other competent bodies will try to steal. It's been going on since as long as there has been money. Yes, there are an endless amount of ways that they will continue to have to plug their holes. This sounds like a fairly negative story, it is important to note that once again, they were caught. We know about this because this alleged activity was unearthed. It's going to continue to happen, but I think that we are probably better at finding and upending espionage than people might think.
Deidre Woollard: Absolutely. Well, switching from text secrets to monopolies, earlier this year, the US Justice Department, they sued Alphabet over having a monopoly in the ad tech space. Now the EU, they're getting in on the act. The European Commission says that Google may have abused its dominant position by basically favoring its own ad tech services. The interesting thing about this is Google, they're active on all sides of the ad tech transaction, sell-side, buy-side. They've got the exchange in the middle so the concern is, there's a monopoly here. Is this a problem and what do you think might happen next?
Bill Mann: I want to make sure that I add this little disclaimer, which is this. I am not an attorney nor am I a trade attorney. So anybody who is a trade attorney who is listening to this be like, you don't have this or this right. I'm going to just try to be as best I can a layman who is setting the table properly. US and EU antitrust laws are a little bit different from each other. The standards for antitrust in the US are much higher and generally speaking, in order to win an antitrust case, the thing that needs to be proven is harm to the customer, whoever the end-customer is that is generally speaking, who the U.S. antitrust laws are focused on. In Europe, it's not quite the same. They are focused on a number of different parties.
Bill Mann: There is a term of art called a refusal to deal. The threshold by which in Europe antitrust law can find that a company has refused to deal is much lower. In this case, what Google is primarily being accused of, is shutting out other competitors for its ad space, for its ad-tech, and making sure that its own ad technology, its own ad partners got premacy on the Google system. They've already paid more than $8 billion worth of fines in Europe, which sounds like a lot until you realize that they make manifold that amount. You could almost view it as a cost of doing business. In this case, Europe is suing with the possible outcome of Google having to break up its ad business either in Europe or worldwide. They actually do have the power to do this. They did say that this suit is not a presumption of a finding. It is, however, a pretty massive exposure for Google itself.
Deidre Woodlard: Well, in the response to the announcement, Google's VP of Global ads, Dan Taylor, he published this post. It seems like monopoly one-to-ones, or there are lots of other competitors in the ad space. This position actually helped that little guy. There was like a point to the other guys. That's like no, this our position actually helps the little guy. Is this a compelling argument?
Bill Mann: No, it's not a compelling argument. I mean, I don't think so. I mean, I'm not sure under US law that they would be able to prove harm to consumers. But this is what we're talking about here. Yes, there are plenty of different places you can go. But Google is by far the dominant one. They have so much capacity to put their thumb on the scales. I mean, did they I'm not guy, and under no circumstances what I suggest, what they have or have not done, but they very much do have the capacity to shut anybody out, including Glenn, the ad guy or it's really hard to look at a case like this and say, well, Google had all opportunity. Are we really saying that, there was never a case in which they made sure that they were getting the best of the other side of the business.
Deidre Woodlard: Well, both the US and the EUR saying that Google may need to break up the business, and potentially sell ad exchange. That's the story. That's the thing right in the middle between the buy and the sell side. If that happens, any idea of any company you'd like to see as a potential buyer?
Bill Mann: Though, I would imagine that if they were going to be broken apart, that ad exchange would become its own business. I mean, I don't think that what Google would do would be to say, well, Apple, you take it because then you have the same problem. But it's just a little bit in a different place of the alphabet. I think that if we go down the road, and if Google does have to break out certain components of their business, those certain components of their business are going to almost by necessity be independent.
Deidre Woodlard: But we'll have to stay tuned, and see what happens with this one. Thanks for your time today, Bill.
Bill Mann: Hey, thank you, Deidre.
Deidre Woodlard: We've got even more monopoly discussion up next. Ricky Mulvey in Motley Fool, analysts, Kirsten Guerra dive into a biotech company that owns a virtual monopoly for life-changing treatments.
Ricky Mulvey: You can innovate and generate solid free cash flow. Joining us now to talk about a company doing just that. It's Motley Fool analysts, Kirsten Guerra. Good to see again.
Kirsten Guerra: Thanks for having me on, Ricky.
Ricky Mulvey: Wanted to talk about Vertex Pharmaceuticals, ticker VRTX. To set the table, what does this company do?
Kirsten Guerra: Yeah. Vertex Pharmaceuticals, as you can probably tell by the name, they are biopharmaceuticals company. They have a whole commercial drug development program. Their bread and butter, really, that drives their cashflows right now is a suite of cystic fibrosis drugs. In this space, specifically, they have a virtual monopoly at this point. They sell those drugs under several different names. You may have heard of TRIKAFTA, ZyDeco or Combi Kalydeco. These different titles are these different names serve different mutations. They're approved for various different age groups. But they all target the cystic fibrosis patient population. They're all really in that area. Let me back up for a second. If there's anyone unfamiliar with cystic fibrosis, it is a genetic condition that just deals with the fluids of the lungs and digestive system where those fluids become too viscous essentially, so it causes a lot of mucus buildup, and it can impact quality of life. This area for Vertex, they've been very successful in this area, as they said, they have a virtual monopoly here it is, provides the dominant cash flow for the company. But of course, being a biopharmaceuticals company, they also have a pretty extensive drug pipeline as well with different drugs for different conditions in various stages of that pipeline. I'm sure that we'll get into that.
Ricky Mulvey: Yeah, TRIKAFTA, is this the big cash cow for Vertex, but is this something that could be disrupted by a generic treatment or competitors working on something similar?
Kirsten Guerra: Yeah, definitely. I mean, there are other ways to treat cystic fibrosis. First of all, you can take simple things like antibiotics just to prevent lung infection or you can take medicines that will thin the mucus that's building up. There's also like vests that have these high-frequency oscillations that physically break up the mucus from this condition. But all of those things are band-aids or they're more like band-aids. Whereas the Vertex cystic fibrosis suite, they all really treat the underlying condition. They actually go in, and correct the misshapen protein that causes cystic fibrosis. To be clear, it's not a cure. This still requires that patients take daily tablets, but it's way better than all of those band-aid options. Could a generic treatment come in and disrupt that? Absolutely. When I call it a near-monopoly, that based on the quality of life that's offered. Like I said, there are all of these other treatments you can do. But the quality of life here as much higher with this drug suite. It's been shown to let, those who take TRIKAFTA have shown significantly lower levels of anxiety and depression, than non TRIKAFTA patients. Because of that, it is definitely priced for monopoly status.
Kirsten Guerra: So any threat to that would potentially drive down the price, whether it's a generic or even a comparable branded drug that's able to come to market. With all that said, it's easier said than done. It's not as if competitors aren't out here trying they are competing development pipelines exist in this space. AbbVie, for example, just recently canceled their development program for cystic fibrosis. They didn't make it to our Phase 2, but their Chief Scientific Officer came out recently and said that it's simply, "does not work". And so again, it's easier said than done to actually compete with a drug like this.
Ricky Mulvey: So approval process is very difficult for these drug companies and they're working on some bleeding-edge stuff like a non-opioid pain killer, CRISPR treatment for sickle-cell. How do you think about regulatory risk for investors and Vertex or investors considering it?
Kirsten Guerra: They have a substantial pipeline going on here, focusing on a lot more specialty markets. And all of those are in various stages of the regulatory process that you mentioned. So for example, there's some under-development for sickle cell disease and beta-thalassemia, muscular dystrophy, type one diabetes, among others. As they said, they're all in various stages. Some as early as just being researched, some that have moved into phases 1,2,3. And the way to think about those phases is that realistically any of these drugs can and will fail at any point. The higher the Phase drug makes it into, the more likely it will come to market. But the likelihood is still quite low. This is still very risky. And so to think about that regulatory framework, I think you just have to be aware upfront and accept the fact that this is an industry where a lot of the future cash flows that you might be excited for on the horizon potentially just won't come to pass. And so that's why a substantial pipeline is key. And maybe of ten treatments, if that's what's in development and maybe only one of them comes to pass. And that's how these things are priced out. You mentioned CRISPR, some of the corporate audit.
Ricky Mulvey: Let's talk about it. What's going on with the work with CRISPR Therapeutics?
Kirsten Guerra: So crisper, some of their more advanced stage pipeline development programs actually are with CRISPR, with CRISPR Therapeutics using the CRISPR gene editing technology. So they're trying to develop one-time treatments here that focus on, the partnership with CRISPR is specifically toward blood disorders, sickle cell disease, and beta-thalassemia right now with CRISPR, those studies are ongoing in phase 3, which as I mentioned, is one of the later stages. But they have already filed their biologics license applications to the FDA, including a request for priority review. So typically the review processes around 12 months and they're trying to do that even quicker. That's not yet approved to be clear. But in this space, anything like that is a positive sign. Management here knows far more about the success or failure of the trial at this point. So any indication we get of how they're communicating that with the FDA is going to be a positive sign.
Ricky Mulvey: In the human trials that have been going on for years now, there were 31 sickle cell patients that were all freed from symptoms, even though they had all been previously diagnosed with severe cases. Good MPR story about it and I'm hopeful for those people with this new treatment. Anything else in the development pipeline you want to chat about?
Kirsten Guerra: I would say that for anyone interested in seeing more that is in the pipeline, I would just search up, google Vertex Pharmaceuticals pipeline. They have a great visual. The first result that comes up should be their website. They have a great visual of everything they have in the pipeline, what stage it's at, what they're trying to treat, what thereafter? Acute pain. They have had a pretty widely publicized effort in acute pain, a non-opioid pain drug, last March was when it was announced that Phase two resulted in outperformance of placebo and important early first step in that development program. Phase 3 should've started late 2022. That's expected to come with results in late 2023 or early 2024. Still behind the scenes. A lot of times with these drugs, you just assume that progress is being made until suddenly you are informed whether that is true or whether something has ended. But that's where that one is. That again, as I said, that's widely publicized. I think a lot of people are excited for the opportunity there.
Ricky Mulvey: The person driving the ship is Reshma Kewalramani , that's the CEO. Is leadership something you focus on with this company? Or do you want to make sure that the CEO is not Martin Shkreli and then you just move on to the development pipeline.
Kirsten Guerra: A little bit. The Shkreli background, it's interesting. Because his background is just business. Kewalramani , she does have a business background, general management program grad from Harvard, but she also has graduated from the med program at Boston University, went through residency, nephrology fellowship. She was a physician before joining Vertex. So she has a clear proven interest in the field beyond just that business acumen. And if you look at the investor or the insider holdings of this company, it's quite low, less than one percent. That's very standard across the industry. Maybe not for every company, but it's pretty standard that most shares tend to be held by institutional investors.
This is just a space where biotech is very tough. It requires tons of cash up front, really long timelines, and they really need that alignment with their investors. So it's best for them to institutional investors that are really willing to fund and hold for longer terms, not a retail investor that's in and out. So that the bigger thing that I would be concerned about in this space that I would look for is if you're looking at biotechs that are smaller cap have single-product pipelines instead of Vertex is many irons in the fire approach, high-retail ownership might be something that concerns me. It could be a sign that they went to institutional investors and couldn't get a lot of backing, and so they're just trying to market themselves in another venue and then maybe an unsafe way for retail investors. So I would just look in that area for if they are doing a lot of clear marketing, if they're speaking to you with a lot of marketing language or their boasting about like every unimportant advancement along the way, anything they can possibly spend as positive, I'd look out for that. But when you look at how Kewalramani speaks or read the transcripts, she always speaks with a very long-term focus for the company. She's very measured in how she presents results moving forward. It does not sound like marketing jargon or a hype cycle. So that's what I look for and I don't see a lot of concern here with Vertex.
Ricky Mulvey: On devaluation, vertex does have a higher sticker price than many other biotech pharma companies like Gilead, Amgen, Biogen. Do you think the growth story for this company warrants that higher sticker price?
Kirsten Guerra: I definitely do. There's a couple of ways to think about valuation. If you look at like forward price to earnings ratio, for example, Giliead is somewhere around 10 or 11. Amgen is around 13. Vertex right now is around 22. The first thing you notice about that, of course, is that it's higher. I think maybe what's more interesting is that if you look at, if you look at the trend over the past year or so, where Giliead, like I said, 10 or 11, it's very flat around that area. Amgen, again also pretty flat around 13, vertex 22 now, but was 17 just over a year ago. So you actually see a pretty clear rise there. And so what does that mean. It can be a number of things. Many things influenced the market of course, but I think biotech analysts consensus seems to be rising on the progressive updates that we're getting in this pipeline. This is one of the more advanced pipelines in the space.
So you just see that rising interest based on continued positive feedback coming from the company. My preference in thinking about valuation here is to do more of an expectations investing approach to take the current price that it's at. And then back that out into, what are the revenue and operating margins that are really expected here based on that price. And if you do that, there's a number of ways to do this. You can come up with different numbers. I came up with something around five percent revenue growth, 50 percent operating margins where in terms of operating margins, that's where Vertex operates about right now. And then i dropped that to 40 percent in perpetuity.
Given that outcome, I think that that's where Vertex is today. That's pretty reasonable in terms of expectations. It is dragged down, largely over concerns that we talked about the potential for competitors to enter the space or generics. But I think it is not factoring in a lot of expectation for the pipeline. It's a balance of those two things, the uncertainty of generics and in my opinion, maybe not weighing the potential of their advanced pipeline quite enough. That's how I think about valuation, but there's definite risk here. I don't mean to say that there's not most pipelines again, do not work out. It's very possible that most of the things in their pipeline don't work out. But if even one or two does, that could be a very substantial contribution to the company going forward for their cashflows.
Ricky Mulvey: Kirsten Guerra, thank you for your time and your insights.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about on the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard. Thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bill Mann has positions in Alphabet. Deidre Woollard has positions in Alphabet and Apple. Kirsten Guerra has positions in ASML, Alphabet, and Vertex Pharmaceuticals. Ricky Mulvey has positions in CRISPR Therapeutics. The Motley Fool has positions in and recommends ASML, Alphabet, Apple, CRISPR Therapeutics, Gilead Sciences, Taiwan Semiconductor Manufacturing, and Vertex Pharmaceuticals. The Motley Fool recommends Amgen and Biogen and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, for example, just recently canceled their development program for cystic fibrosis. In this podcast, Motley Fool senior analyst Bill Mann and host Deidre Woollard discuss: The high value of getting a leg up on the competition in the semiconductor industry. Ricky Mulvey: So approval process is very difficult for these drug companies and they're working on some bleeding-edge stuff like a non-opioid pain killer, CRISPR treatment for sickle-cell. | AbbVie, for example, just recently canceled their development program for cystic fibrosis. In this podcast, Motley Fool senior analyst Bill Mann and host Deidre Woollard discuss: The high value of getting a leg up on the competition in the semiconductor industry. Ricky Mulvey in Motley Fool, analysts, Kirsten Guerra dive into a biotech company that owns a virtual monopoly for life-changing treatments. | AbbVie, for example, just recently canceled their development program for cystic fibrosis. Motley Fool host Ricky Mulvey and analyst Kirsten Guerra take a look at Vertex Pharmaceuticals and its role at the center of cystic fibrosis treatment. Ricky Mulvey in Motley Fool, analysts, Kirsten Guerra dive into a biotech company that owns a virtual monopoly for life-changing treatments. | AbbVie, for example, just recently canceled their development program for cystic fibrosis. Motley Fool host Ricky Mulvey and analyst Kirsten Guerra take a look at Vertex Pharmaceuticals and its role at the center of cystic fibrosis treatment. Deidre Woollard: Absolutely, and I think one of the things that always surprises me about stories like this is that despite all of the cybersecurity things we have in place, it gets relatively easy for someone who has knowledge of things to walk away with them. |
22463.0 | 2023-06-21 00:00:00 UTC | The Zacks Analyst Blog Highlights PepsiCo, AbbVie, Honeywell, Salesforce and Goldman Sachs | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-pepsico-abbvie-honeywell-salesforce-and-goldman-sachs | nan | nan | For Immediate Release
Chicago, IL – June 21, 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: PepsiCo, Inc. PEP, AbbVie Inc. ABBV, Honeywell International Inc. HON, Salesforce, Inc. CRM and The Goldman Sachs Group, Inc. GS.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for PepsiCo, AbbVie and Honeywell
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 PepsiCo, Inc., AbbVie Inc. and Honeywell International Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
PepsiCo shares have gained +3.4% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +7.4%. The company’s results reflect gains from strength and resilience in its diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.
It also gained from the resilience and strength in the global beverage and convenient food businesses. However, PepsiCo witnessed margin pressures in the first quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of AbbVie have gained +0.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +17.5%. The company has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. However, there are concerns about long-term sales growth since Humira generics have entered the U.S. market.
Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
(You can read the full research report on AbbVie here >>>)
Honeywell shares have outperformed the Zacks Diversified Operations industry over the past year (+14.8% vs. +12.4%). The company is benefitting from the recovery in commercial flight hours, strength in advanced materials and UOP businesses augur well for Honeywell’s growth. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line.
The company’s bullish forecast for 2023 holds promise. Efforts to handsomely reward shareholders with dividends and share buybacks hold promise. HON’s deal to acquire Compressor Controls raises optimism in the stock.
However, supply-chain disruptions remain a concern for the company. Weakness in the Safety and Productivity Solutions unit due to lower warehouse, and workflow and productivity solutions volumes is worrisome. Raw material cost inflation and adverse foreign currency movements are other headwinds.
(You can read the full research report on Honeywell here >>>)
Other noteworthy reports we are featuring today include Salesforce, Inc. and The Goldman Sachs Group, Inc.
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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. | PEP, AbbVie Inc. ABBV, Honeywell International Inc. HON, Salesforce, Inc. CRM and The Goldman Sachs Group, Inc. GS. Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for PepsiCo, AbbVie and Honeywell 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 PepsiCo, Inc., AbbVie Inc. and Honeywell International Inc. | PEP, AbbVie Inc. ABBV, Honeywell International Inc. HON, Salesforce, Inc. CRM and The Goldman Sachs Group, Inc. GS. Today's Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc., AbbVie Inc. and Honeywell International Inc. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Honeywell International Inc. (HON) : 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. | Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for PepsiCo, AbbVie and Honeywell The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Honeywell International Inc. (HON) : 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. PEP, AbbVie Inc. ABBV, Honeywell International Inc. HON, Salesforce, Inc. CRM and The Goldman Sachs Group, Inc. GS. | Today's Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc., AbbVie Inc. and Honeywell International Inc. PEP, AbbVie Inc. ABBV, Honeywell International Inc. HON, Salesforce, Inc. CRM and The Goldman Sachs Group, Inc. GS. Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for PepsiCo, AbbVie and Honeywell The Zacks Research Daily presents the best research output of our analyst team. |
22464.0 | 2023-06-20 00:00:00 UTC | Ready for a Rebound: 7 Blue-Chips Set to Regain Their Market Mojo | ABBV | https://www.nasdaq.com/articles/ready-for-a-rebound%3A-7-blue-chips-set-to-regain-their-market-mojo | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While the smaller-capitalization trades tend to attract the most speculative attention, for reliable upside prospects, investors may want to consider blue-chip stocks to buy. To better understand the motivation behind targeting these stalwarts, a baseball analogy may be helpful.
Some of the best clubs in Major League Baseball enjoy prolonged success thanks to their work in scouting out prospects. However, rearing young players from single-A ball to enter the big show – not even talking about making significant contributions – is a time-consuming and speculative effort. That’s the market equivalent of acquiring the small caps, which is a completely different proposition from high-growth blue-chip stocks.
With blue chips ready for a rebound, we’re talking about clubs acquiring proven contributors, either through trades or free-agency acquisition. Under this approach, teams will not usually receive the greatest magnitude of returns. However, they will increase their chances of amassing wins throughout the season via steady contributions from the acquired players. Even better, sometimes great ballplayers can suffer slumps. It’s the same with the market. By requiring top rebounding blue-chip stocks to buy, investors can potentially net significant returns.
Blue-Chip Stocks to Buy: Home Depot (HD)
Source: Shutterstock
Practically the go-to name for home improvement projects, Home Depot (NYSE:HD) stands among the giants of blue-chip stocks to buy. Featuring a market capitalization of just above $303 billion, HD underlines a well-recognized brand. However, the market doesn’t really care, with shares losing almost 5% since the beginning of this year.
Still, astute investors may be able to pick up a compelling discount among the top rebounding blue-chip stocks to buy. First, data from Gurufocus indicates that HD lands between 5% to 15% above its 52-week low, thus representing a relative discount. On the financial side, Home Depot represents an overlooked growth engine. No, it’s not some sexy quantum computing firm. However, on a per-share basis, it sports a three-year revenue growth rate of 15.2%, above 76.5% of its peers. Also, its EBITDA growth rate during the same period impresses at 16.7%. Thus, it’s worthy of consideration for blue chips ready for a rebound.
Blue-Chip Stocks to Buy: AbbVie (ABBV)
Source: Shutterstock
A pharmaceutical firm, AbbVie (NYSE:ABBV) is no stranger to lists covering blue-chip stocks to buy, many of which I penned. Carrying a market cap of $244.6 billion, it more than meets the requirement of a blue-chip enterprise. Unfortunately for stakeholders at the moment, the market doesn’t care. Since the January opener, ABBV slipped nearly 15% in equity value.
Like Home Depot above and the other high-growth blue-chip stocks on this list, ABBV lands between 5% to 15% above its 52-week low. More specifically, in the trailing one-year period, it’s down more than 3%. Still, investors may be overlooking AbbVie’s acquisition of Botox and its underlying relevancy. Basically, with more workers forced to return to the office, products specializing in enhancing looks should rise in demand.
On a financial note, market participants also may be ignoring AbbVie’s growth narrative. Using data from Gurufocus, the company’s three-year revenue growth rate (again, on a per-share basis) clocks in at 13.4%. That’s above 71.84% of its peers, making ABBV a strong candidate for blue-chip stocks to regain market momentum.
Blue-Chip Stocks to Buy: Pfizer (PFE)
Source: Shutterstock
A multinational pharmaceutical and biotechnology firm, Pfizer (NYSE:PFE) also frequently made prior lists focused on blue-chip stocks to buy. Carrying a market cap of over $226 billion, Pfizer dramatically inserted itself into the public discourse with the Covid-19 vaccine. However, because of fading fears of the SARS-CoV-2 virus, investors quickly abandoned PFE. Since the start of the year, shares tumbled nearly 22%.
While the red ink is certainly understandable, it might also make Pfizer one of the top rebounding blue-chip stocks to consider. True, Covid-19 may no longer be the public health crisis that it once was. At the same time, fading relevance for one use of the underlying messenger-RNA technology doesn’t mean that Pfizer can’t leverage the acumen for other uses.
More importantly, the financial data suggests that astute investors should keep tabs on PFE. While recent quarterly data isn’t exactly encouraging because of the fading Covid-19 story, its three-year revenue growth rate still pings at 34.4%. Also, the market prices PFE at a forward multiple of 12, which is quite undervalued. Thus, it might be one of the blue chips ready for a rebound.
Thermo Fisher Scientific (TMO)
Source: Shutterstock
As a manufacturer and distributor of scientific and medical equipment, Thermo Fisher Scientific (NYSE:TMO) may represent a boring entity for some folks. Sure enough, since the beginning of this year, TMO slipped about 3%. However, the company carries significant influence in the broader healthcare sector, with a market cap of over $207 billion. Given its everyday relevance, TMO is a top idea among blue-chip stocks to buy.
To be fair, Thermo Fisher hasn’t delivered compelling results in the charts. Nevertheless, it’s a business built for the long haul. By undergirding the biotech and pharmaceutical industries, Thermo almost guarantees that it will keep its name at the forefront. Regarding its financial profile, Thermo benefits from a robust three-year revenue growth rate of 21.6%, beating out 70.3% of its peers. Also, its EBITDA growth rate comes in at 20.2%, above 60.62% of the competition. Finally, Thermo is a consistently profitable enterprise. Combined with its trailing-year net margin of 13.75%, TMO belongs on your radar of high-growth blue-chip stocks to buy.
Infosys (INFY)
Source: Shutterstock
An Indian multinational information technology firm, Infosys (NYSE:INFY) might not be the most recognizable name (for American investors) among blue-chip stocks to buy. Nevertheless, the company earns the distinction. At the moment, it commands a market cap of almost $67 billion. However, the market hasn’t been enthused about the IT space. Since the Jan. opener, INFY slipped over 13%.
It’s also an underperformer against the trailing-year framework, shedding almost 16%. Still, it’s possible that with shares rising since late April of this year, INFY may have hit a bottom. It’s no guarantee but if you want to speculate on blue-chip stocks to regain market momentum, INFY represents a “leveraged” opportunity of sorts. Looking at the financials, Infosys features a three-year revenue growth rate of 17%, beating out 70% of players in the software industry. As well, it enjoys consistent profitability with an impressive trailing-year net margin of 16.38%. As a bonus, the market prices INFY at a forward multiple of only 20.49. That’s conspicuously below the sector median stat of 26.32 times.
Occidental Petroleum (OXY)
Source: Shutterstock
Arguably one of the most credible blue-chip stocks to buy on discount, Occidental Petroleum (NYSE:OXY) engages in hydrocarbon exploration. Currently, the company carries a market cap of over $52 billion, which may be on the smaller side compared to other entities on this list. Nevertheless, it deserves plenty of respect for its practical relevance to the overall economy. Still, the market doesn’t care, sending OXY down nearly 5% since the January opener.
Against the trailing-year comparison, OXY gained only half a percent, which seems ludicrous. True, many consumers may be transitioning to electric vehicles. Also, the Federal Reserve’s efforts to curb inflation appear to have gained some momentum. However, with more workers returning to the office, demand for hydrocarbons should blossom. After all, most drivers continue to operate combustion-powered vehicles.
On the financials, Occidental posts a better-than-average three-year revenue growth rate of 12.3%. Also, its EBITDA growth rate during the same frame lands at 33.1%, outpacing 72.38% of its peers. Combined with the aforementioned fundamental catalyst, OXY could be a candidate for top rebounding blue-chip stocks.
PayPal (PYPL)
Source: Shutterstock
Standing within the spectrum of high-risk, high-reward blue-chip stocks to buy, PayPal (NASDAQ:PYPL) presents an awfully compelling narrative. A digital payments processor and overall financial technology (fintech) specialist, PayPal carries tremendous brand awareness. In addition, it sports a market cap of just over $74 billion. Unfortunately, skyrocketing inflation that began in late 2021 and early 2022 sharply crimped PayPal’s business.
Unlike other tech plays, however, PYPL simply failed to recover. So far this year, shares tumbled nearly 11%. In the past 365 days, they gave up more than 8% of equity value. Fundamentally, PayPal suffers from challenges impacting the consumer economy. Also, the fintech space has become incredibly competitive.
Nevertheless, PayPal can still bank on its brand power, making it a possible candidate for blue chips ready for a rebound. Additionally, the company’s three-year revenue growth rate clocks in at 16.7%, outflanking 75.2% of its peers. Also, its book growth rate during the same frame comes in at 7.4%, above 60.65% of the competition.
HD Home Depot $301.75
ABBV AbbVie $138.65
PFE Pfizer $39.62
TMO Thermo Fisher $527.41
INFY Infosys $15.70
OXY Occidental Petroleum $57.13
PYPL PayPal $69.12
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. | HD Home Depot $301.75 ABBV AbbVie $138.65 PFE Pfizer $39.62 TMO Thermo Fisher $527.41 INFY Infosys $15.70 OXY Occidental Petroleum $57.13 PYPL PayPal $69.12 On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Shutterstock A pharmaceutical firm, AbbVie (NYSE:ABBV) is no stranger to lists covering blue-chip stocks to buy, many of which I penned. Since the January opener, ABBV slipped nearly 15% in equity value. | Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Shutterstock A pharmaceutical firm, AbbVie (NYSE:ABBV) is no stranger to lists covering blue-chip stocks to buy, many of which I penned. HD Home Depot $301.75 ABBV AbbVie $138.65 PFE Pfizer $39.62 TMO Thermo Fisher $527.41 INFY Infosys $15.70 OXY Occidental Petroleum $57.13 PYPL PayPal $69.12 On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. Since the January opener, ABBV slipped nearly 15% in equity value. | Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Shutterstock A pharmaceutical firm, AbbVie (NYSE:ABBV) is no stranger to lists covering blue-chip stocks to buy, many of which I penned. Since the January opener, ABBV slipped nearly 15% in equity value. Like Home Depot above and the other high-growth blue-chip stocks on this list, ABBV lands between 5% to 15% above its 52-week low. | Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Shutterstock A pharmaceutical firm, AbbVie (NYSE:ABBV) is no stranger to lists covering blue-chip stocks to buy, many of which I penned. Since the January opener, ABBV slipped nearly 15% in equity value. Like Home Depot above and the other high-growth blue-chip stocks on this list, ABBV lands between 5% to 15% above its 52-week low. |
22465.0 | 2023-06-20 00:00:00 UTC | Top Analyst Reports for PepsiCo, AbbVie & Honeywell | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-pepsico-abbvie-honeywell | nan | nan | Tuesday, June 20, 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 PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). 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 >>>
PepsiCo shares have gained +3.4% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +7.4%. The company’s results reflect gains from strength and resilience in its diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.
It also gained from the resilience and strength in the global beverage and convenient food businesses. However, PepsiCo witnessed margin pressures in the first quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of AbbVie have gained +0.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +17.5%. The company has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. However, there are concerns about long-term sales growth since Humira generics have entered the U.S. market.
Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
(You can read the full research report on AbbVie here >>>)
Honeywell shares have outperformed the Zacks Diversified Operations industry over the past year (+14.8% vs. +12.4%). The company is benefitting from the recovery in commercial flight hours, strength in advanced materials and UOP businesses augur well for Honeywell’s growth. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line.
The company’s bullish forecast for 2023 holds promise. Efforts to handsomely reward shareholders with dividends and share buybacks hold promise. HON’s deal to acquire Compressor Controls raises optimism in the stock.
However, supply-chain disruptions remain a concern for the company. Weakness in the Safety and Productivity Solutions unit due to lower warehouse, and workflow and productivity solutions volumes is worrisome. Raw material cost inflation and adverse foreign currency movements are other headwinds.
(You can read the full research report on Honeywell here >>>)
Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), The Goldman Sachs Group, Inc. (GS) and CVS Health Corporation (CVS).
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
PepsiCo's (PEP) Business Investments to Bolster Performance
AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales
Aerospace Unit Aids Honeywell (HON) Amid Supply Chain Woes
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CVS Health (CVS) Pharmacy Arm, Digital Capabilities Expand
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Norfolk Southern's (NSC) Dividends Support, Fuel Costs Hurt
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Solid Demand, New Products to Aid Lincoln Electric (LECO)
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Inflation & Adverse Product Mix Hurt Dollar Tree (DLTR)
Per the Zacks analyst, Dollar Tree has been witnessing adverse product mix due to demand shift toward low-margin consumable goods. Inflation is likely to ail margins and bottom line in the near term.
Lincoln National (LNC) Weak on High Costs, Poor Life Business
Per the Zacks analyst, a high benefits expense level can dampen the company's margins. Lower fee income and struggling Life business are a concern for Lincoln National.
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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 PepsiCo's (PEP) Business Investments to Bolster Performance AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Aerospace Unit Aids Honeywell (HON) Amid Supply Chain Woes Featured Reports Salesforce (CRM) Rides on Partnership Wins & Acquisitions Per the Zacks analyst, Salesforce's expanding partner ecosystem is contributing to business wins and boosting its presence globally. Today's Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). Shares of AbbVie have gained +0.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +17.5%. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read PepsiCo's (PEP) Business Investments to Bolster Performance AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Aerospace Unit Aids Honeywell (HON) Amid Supply Chain Woes Featured Reports Salesforce (CRM) Rides on Partnership Wins & Acquisitions Per the Zacks analyst, Salesforce's expanding partner ecosystem is contributing to business wins and boosting its presence globally. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Honeywell International Inc. (HON) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read PepsiCo's (PEP) Business Investments to Bolster Performance AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales Aerospace Unit Aids Honeywell (HON) Amid Supply Chain Woes Featured Reports Salesforce (CRM) Rides on Partnership Wins & Acquisitions Per the Zacks analyst, Salesforce's expanding partner ecosystem is contributing to business wins and boosting its presence globally. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Honeywell International Inc. (HON) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). | Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Honeywell International Inc. (HON) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). Shares of AbbVie have gained +0.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +17.5%. |
22466.0 | 2023-06-20 00:00:00 UTC | ABBV Quantitative Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-quantitative-stock-analysis | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
22467.0 | 2023-06-20 00:00:00 UTC | INSIGHT-Lab crunch: British science has nowhere to go | ABBV | https://www.nasdaq.com/articles/insight-lab-crunch%3A-british-science-has-nowhere-to-go | nan | nan | By Kate Holton
OXFORD, England, June 20 (Reuters) - For Ros Deegan, the thrill of raising $100 million to expand a biotech firm among the dreaming spires of Oxford was soon tempered: unable to find a bigger laboratory, she routinely had to work at home.
Not far away in the rival academic centre of Cambridge, biochemist Catherine Elton, persistently frustrated by similar real estate issues, taught herself how to turn old offices into labs to keep expanding her bioactive protein business.
The two businesswomen in Britain's fast-growing life sciences industry are far from alone.
Property consultants Bidwells put demand for lab space in Cambridge at 1.19 million square feet (110,000 square metres) - but only 7,000 sq ft are available. In Oxford, demand stands at 850,000 sq ft with just 25,000 ready to go.
The dearth of state-of-the-art labs in the cities is just one example of how a lack of an overarching strategy for Britain's life sciences sector is throttling the growth of some of the country's most promising companies, according to Reuters interviews with 17 people with knowledge of the challenges.
The industry figures, from biotech bosses, property developers, industry sources to investors, all spoke of a growing frustration with the lack of a coherent approach in Britain to everything from lab space to funding, talent, suppliers, affordable homes, transport, water and power.
At a time of rapid innovation, when the United States and the Europe Union are spending heavily to help businesses shift faster to newer technologies in the next wave of industrial transformation, they say that Britain risks falling behind.
"It's a huge barrier when you're trying to set a company up and you can't actually find a lab for it," said Elton, founder of Qkine. She said the latest office conversion took up more than 20% of her firm's time in the year before it opened.
Deegan, meanwhile, counts herself lucky that OMass Therapeutics, the drug discovery company she runs, only had to wait a year from raising funds to moving to a larger site.
"I couldn't go to work because there just wasn't a place to sit. You'd end up in the kitchen," the chief executive said.
'DEATH BY A THOUSAND CUTS'
Life sciences is meant to be one of Britain's most important sectors. Generating 94 billion pounds ($118 billion) in 2021 and employing more than 280,000 people, it enables the government to boast Britain is on its way to becoming a "science superpower".
In biotech, Britain lags only the United States in activity, according to consultants McKinsey, driven by the discoveries that come out of colleges in Cambridge, London and Oxford, and aided by a centralised health system for clinical trials.
That has led to an explosion in venture capital, with much of it coming from the United States. But in the small cities home to ancient universities - and strict planning laws - the delivery of new infrastructure has failed to keep pace.
Diarmuid O'Brien, head of Cambridge Enterprise which works to commercialise research at the university, said the current environment led to "death by a thousand cuts" as many spin-outs were sold to U.S. companies, or moved across the Atlantic.
Humira, for example, one of the world's bestselling drugs owned by U.S. company AbbVie ABBV.N, was based on technology that emerged from Cambridge. Illumina ILMN.O, a U.S. firm with a market value of $33 billion, has a DNA sequencing approach also discovered at Cambridge at the heart of its technology.
Prime Minister Rishi Sunak's government has acknowledged there's a real estate problem and is looking to reform planning rules, asking local authorities to take research and development needs into consideration when assessing applications.
"Only last month we announced more than 100 million pounds to provide world-class lab space to help unlock UK researchers' full potential," a government spokesperson said, referring to funding designed to upgrade infrastructure and equipment.
RECORD RENTS
The race to develop and retain new technologies is taking place across the world, with Western governments such as France touting cheap power and fast-track planning systems to attract next-generation industries such as battery gigafactories.
Gordon Sanghera, who was determined to list his Oxford Nanopore Technologies ONT.L in Britain, told Reuters he often thought the country's success was in spite of the support available, not because of it, and Britain needed to realise it was in competition with others.
The lab shortage is not only driving up rents to record highs - Bidwells says they rose 25% for purpose built lab space in Oxford in 2022 - but it also means access to laboratories can become a defining issue in whether a company succeeds or not.
To meet its full potential, Britain's biotech industry says it needs small companies to be able to access shared laboratory space on decent rents with flexible leases, before they can move to independent labs with the potential to expand.
Company founders also say they want to be as close to the heart of academic centres as possible - rather than on more distant science parks - so they can tap into the cluster effect that comes from sharing experiences and contacts, take advantage of existing transport links and recruit talent more easily.
Michael Chen moved to Cambridge from the United States in 2012 to do a doctorate in chemistry. He later formed Nuclera with two PhD colleagues to improve the accessibility of proteins for research and drug discovery.
He said Cambridge offered a cheaper location for drug discovery than the U.S. city of Boston, the world's leading hub, due to lower rents and salaries, but a lack of growth capital and space meant it struggled to scale up those businesses.
The fact many scientists spend time overseeing the refit of an old building puts off executives who have raised funds and floated spin-outs before, he said. "They'll just move to Boston and make their life easier."
'NOT KEEPING PACE'
Laboratory developers say more space is in the works but the challenge of building vast modern labs in densely built university cities cannot be ignored.
"They're fundamentally quite small cities, going through extremely rapid rates of growth," said Artem Korolev, head of developer Mission Street.
Anna Strongman agreed. She leads a joint venture between Oxford University and Legal & General LGEN.L to build lab space and homes. Strongman said the industry needed to address the impact new projects would have on housing, traffic, power and school places to keep the local community onside.
But to go further, with more homes and train lines, would require greater government input.
"We are a country that doesn't have a growth solution, and there is one in Oxford," she said. "There is amazing potential."
Pioneer Group, which provides funding and lab space in Britain, said action was needed now to address the "crazy" demand. "If planning takes years to come through, then the opportunity will potentially have been lost," Executive Director Glenn Crocker said.
Alistair Cory, a director at Oxford's Begbroke Science Park, welcomed the government's renewed focus on support for the life sciences sector, saying a leadership vacuum in recent years had resulted in glacial progress.
"We're not keeping pace with those who are accelerating faster around us, whether that's North America, or parts of Europe, or parts of Asia and particularly China," he said.
"Every two years or so, if you're successful, you need to move, and that's just disruptive," she said. "It affects the speed at which you can grow."
($1 = 0.7994 pounds)
INSIGHT-France rolls out the red carpet for EV battery factories
INSIGHT-UK employers feel the strain of missing skilled workers
INSIGHT-In a health system in crisis, Britain's heart care suffers
(Reporting by Kate Holton in London and Toby Melville in Oxford; Editing by David Clarke)
((kate.holton@thomsonreuters.com; 0044 207 542 8560; Reuters Messaging: kate.holton.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. | Humira, for example, one of the world's bestselling drugs owned by U.S. company AbbVie ABBV.N, was based on technology that emerged from Cambridge. Not far away in the rival academic centre of Cambridge, biochemist Catherine Elton, persistently frustrated by similar real estate issues, taught herself how to turn old offices into labs to keep expanding her bioactive protein business. Company founders also say they want to be as close to the heart of academic centres as possible - rather than on more distant science parks - so they can tap into the cluster effect that comes from sharing experiences and contacts, take advantage of existing transport links and recruit talent more easily. | Humira, for example, one of the world's bestselling drugs owned by U.S. company AbbVie ABBV.N, was based on technology that emerged from Cambridge. Property consultants Bidwells put demand for lab space in Cambridge at 1.19 million square feet (110,000 square metres) - but only 7,000 sq ft are available. The industry figures, from biotech bosses, property developers, industry sources to investors, all spoke of a growing frustration with the lack of a coherent approach in Britain to everything from lab space to funding, talent, suppliers, affordable homes, transport, water and power. | Humira, for example, one of the world's bestselling drugs owned by U.S. company AbbVie ABBV.N, was based on technology that emerged from Cambridge. The dearth of state-of-the-art labs in the cities is just one example of how a lack of an overarching strategy for Britain's life sciences sector is throttling the growth of some of the country's most promising companies, according to Reuters interviews with 17 people with knowledge of the challenges. The industry figures, from biotech bosses, property developers, industry sources to investors, all spoke of a growing frustration with the lack of a coherent approach in Britain to everything from lab space to funding, talent, suppliers, affordable homes, transport, water and power. | Humira, for example, one of the world's bestselling drugs owned by U.S. company AbbVie ABBV.N, was based on technology that emerged from Cambridge. The dearth of state-of-the-art labs in the cities is just one example of how a lack of an overarching strategy for Britain's life sciences sector is throttling the growth of some of the country's most promising companies, according to Reuters interviews with 17 people with knowledge of the challenges. To meet its full potential, Britain's biotech industry says it needs small companies to be able to access shared laboratory space on decent rents with flexible leases, before they can move to independent labs with the potential to expand. |
22468.0 | 2023-06-19 00:00:00 UTC | Lilly's (LLY) Migraine Drug Fails Vis-a-Vis Pfizer's Nurtec ODT | ABBV | https://www.nasdaq.com/articles/lillys-lly-migraine-drug-fails-vis-a-vis-pfizers-nurtec-odt | nan | nan | Eli Lilly LLY announced that the phase IV CHALLENGE-MIG study, evaluating the efficacy and safety of its migraine drug Emgality against Pfizer‘s PFE Nurtec ODT, failed to meet primary endpoint of statistical superiority in achieving at least 50% reduction in monthly migraine headache days.
Emgality performed numerically better than Pfizer’s Nurtec ODT on key secondary endpoints of the CHALLENGE-MIG study.
Per management, the response rates were similar following treatment with both drugs.
Lilly stated that the treatment with Emgality exhibited clinically meaningful efficacy and safety during the treatment tenure, which was consistent with studies previously conducted on the drug.
Shares of Eli Lilly have increased 22.4% so far this year compared with the industry’s 2.0% rise.
Image Source: Zacks Investment Research
The CHALLENGE-MIG study is a post-approval study that evaluated Emgality against Nurtec ODT in the prevention of episodic migraine in 580 adults over a three-month period. The study randomized patients to receive either four injections of 120mg Emgality or 45 oral tablets of Nurtec ODT during the treatment period.
Emgality was approved by the FDA in 2018 for the preventive treatment of migraine in adults. Lilly received label expansion approval for the drug to treat episodic cluster headache in adults in 2019.
Pfizer’s Nurtec ODT is approved for acute treatment of migraine with or without aura in adults and preventive treatment of episodic migraine. The drug was recently acquired by Pfizer following the completion of Biohaven’s CGRP business last year.
Another competitor in this segment is AbbVie ABBV that markets its own oral CGRP antagonist Qulipta approved for treating migraine. In April, AbbVie announced that the FDA approved the label expansion for Qulipta to include the prevention of chronic migraine in adults. AbbVie’s Qulipta was initially approved by the agency in 2021 for the preventive treatment of episodic migraine in adults.
Eli Lilly and Company Price
Eli Lilly and Company price | Eli Lilly and Company Quote
Zacks Rank & Stocks to Consider
Eli Lilly currently carries a Zacks Rank #3 (Hold).A better-ranked stock in the overall healthcare sector is Novartis NVS, 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 Novartis’ 2023 and 2024 earnings per share have increased from $6.58 to $6.72 and $7.08 to $7.26, respectively. Shares of Novartis are up 19.2% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.15%. In the last reported quarter, Novartis’earnings beat estimates by 10.32%.
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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 April, AbbVie announced that the FDA approved the label expansion for Qulipta to include the prevention of chronic migraine in adults. Another competitor in this segment is AbbVie ABBV that markets its own oral CGRP antagonist Qulipta approved for treating migraine. AbbVie’s Qulipta was initially approved by the agency in 2021 for the preventive treatment of episodic migraine in adults. | Click to get this free report Novartis AG (NVS) : 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. Another competitor in this segment is AbbVie ABBV that markets its own oral CGRP antagonist Qulipta approved for treating migraine. In April, AbbVie announced that the FDA approved the label expansion for Qulipta to include the prevention of chronic migraine in adults. | Click to get this free report Novartis AG (NVS) : 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. Another competitor in this segment is AbbVie ABBV that markets its own oral CGRP antagonist Qulipta approved for treating migraine. In April, AbbVie announced that the FDA approved the label expansion for Qulipta to include the prevention of chronic migraine in adults. | Click to get this free report Novartis AG (NVS) : 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. Another competitor in this segment is AbbVie ABBV that markets its own oral CGRP antagonist Qulipta approved for treating migraine. In April, AbbVie announced that the FDA approved the label expansion for Qulipta to include the prevention of chronic migraine in adults. |
22469.0 | 2023-06-19 00:00:00 UTC | Why Investors Should Care About Novartis' Latest Label Expansion -- It Could Mean Billions | ABBV | https://www.nasdaq.com/articles/why-investors-should-care-about-novartis-latest-label-expansion-it-could-mean-billions | nan | nan | Earlier this month, Novartis' (NYSE: NVS) smash-hit immunology medicine Cosentyx became the first drug within its class to be approved in the European Union to treat adult patients with moderate to severe hidradenitis suppurativa (HS).
What was the reasoning for the European Commission's approval of Cosentyx's sixth indication? And how much of a boost could it provide to Novartis' sales? Let's explore Cosentyx's phase 3 clinical trial results and the European HS market to try to arrive at some answers.
A much-needed treatment for a common disease
HS is a lifelong, progressive, inflammatory skin condition that can cause great discomfort to patients. The disease results in repeated abscesses that can burst, which creates open wounds, most often around the armpits and groin. This can lead to symptoms such as burning, itching, or sweating sensations around the skin, scarring, and slowly healing skin.
Like all diseases, the severity of HS exists on a spectrum, ranging from mild to severe. Moderate to severe cases of the condition are defined as five or more inflammatory regions affecting at least two distinct areas of the body. Due to the impact HS can have on daily life, moderate to severe HS patients are at risk of developing other conditions, such as anxiety and depression.
Until recently, AbbVie's (NYSE: ABBV) Humira was the only treatment specifically approved for patients with moderate to severe HS. While the drug was a major advancement in the treatment of the disease, 50% of patients on Humira can lose response to the medicine over time.
Fortunately, the approval of Cosentyx in the European Union (and possibly the U.S. later this year) could bring newfound hope to countless patients. In a phase 3 clinical trial, patients receiving Cosentyx every two weeks fared much better than patients in the placebo group. The treatment group achieved hidradenitis suppurativa clinical response (HiSCR) at a rate of 42% at week 16, which was superior to the placebo group rate of 31% at week 16. For context, HiSCR is defined as a 50% or more decrease in a patient's abscess and inflammatory nodule count.
Image source: Getty Images.
The sales potential is meaningful
Cosentyx could be an impactful treatment option for the arsenals of dermatologists and patients. But what could this mean for Novartis' sales?
It is estimated that HS affects up to one in 100 people around the world. Drilling down further, roughly 200,000 patients in Europe have moderate to severe cases of the disease. Since Humira is the only other drug on the market and it has a first-mover advantage over Cosentyx, I believe a 40% patient share rate is a realistic assumption -- or 80,000 patients.
The annual list price of Cosentyx in its 300-milligram dose strength package is $83,000 (over $6,900 monthly). Adjusting for the fact that drugs are about 50% cheaper in the European Union, this equates to an annual list price of $40,000. And further factoring in patient financial assistance programs and negotiations with health insurers, I will conservatively use a $15,000 annual net price per patient.
This brings the sales potential of Cosentyx's HS indication to $1.2 billion in the European Union alone. Stacked up against the $53.3 billion in total revenue that analysts expect from the Swiss pharmaceutical in 2023, this is enough to move the growth needle by itself.
Novartis stock is a buy
With more than 130 other indications in its pipeline, Novartis' growth prospects are strong. That is why analysts believe the company's non-GAAP (adjusted) diluted earnings per share (EPS) will grow by 8.2% annually over the next five years. For context, that is better than the drug manufacturers' industry average annual earnings growth outlook of 6.7%.
Yet, shares of Novartis are trading at a forward price-to-earnings ratio of 13.6. This is pretty close to the industry average of 13.3, which is what arguably makes the stock a great value 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. | Until recently, AbbVie's (NYSE: ABBV) Humira was the only treatment specifically approved for patients with moderate to severe HS. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Kody Kester has positions in AbbVie. Earlier this month, Novartis' (NYSE: NVS) smash-hit immunology medicine Cosentyx became the first drug within its class to be approved in the European Union to treat adult patients with moderate to severe hidradenitis suppurativa (HS). | Until recently, AbbVie's (NYSE: ABBV) Humira was the only treatment specifically approved for patients with moderate to severe HS. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Kody Kester has positions in AbbVie. Let's explore Cosentyx's phase 3 clinical trial results and the European HS market to try to arrive at some answers. | Until recently, AbbVie's (NYSE: ABBV) Humira was the only treatment specifically approved for patients with moderate to severe HS. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Kody Kester has positions in AbbVie. Earlier this month, Novartis' (NYSE: NVS) smash-hit immunology medicine Cosentyx became the first drug within its class to be approved in the European Union to treat adult patients with moderate to severe hidradenitis suppurativa (HS). | Until recently, AbbVie's (NYSE: ABBV) Humira was the only treatment specifically approved for patients with moderate to severe HS. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Kody Kester has positions in AbbVie. Earlier this month, Novartis' (NYSE: NVS) smash-hit immunology medicine Cosentyx became the first drug within its class to be approved in the European Union to treat adult patients with moderate to severe hidradenitis suppurativa (HS). |
22470.0 | 2023-06-18 00:00:00 UTC | Unlock the Potential of These 7 Cash-Flow Machines | ABBV | https://www.nasdaq.com/articles/unlock-the-potential-of-these-7-cash-flow-machines | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are several reasons to seek out high-cash-flow stocks. In the simplest terms, companies that generate strong cash flow can pay – and increase – dividends, develop new products and buy back shares among other things. Free cash flow is the cash a company has left over even after paying for things such as capital expenditures and dividend payments. In other words, the company is “free” to use this cash for whatever they need to use it for.
But like many other things, it’s important to put free cash flow in context. Some companies generate free cash flow because they have stopped growing. While that may be okay for income-oriented investors, most dividend investors want to maximize their total return. The seven stocks on this list are high cash flow stocks that are also profitable stock investments.
AAPL Apple $184.92
AVGO Broadcom $868.11
CVX Chevron $157.26
CAT Caterpillar $245.27
ABBV AbbVie $138.64
PFE Pfizer $40.06
KO Coca-Cola $61.67
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL) is up about 43% in 2023. It’s a nice reward for investors who piled into the stock when it was trading under $130 in Dec. 2022. Even now, Apple continues to be a polarizing stock. In fact, the company, well-known for its iconic products, such as the iPhone, remains an important source of revenue. But the company is much more than the iPhone. And the combination of those products and services has turned Apple into a cash-generating machine. As of June 2023, estimates have the company generating $163 billion of cash every day. Much of this becomes free cash flow. In the last two years, Apple’s FCF in 2022 was $92.95 billion a gain of over 57% in two years. In 2023, the company’s FCF is projected to grow an additional 23% to $115 billion. And by 2030, free cash flow will top $203 billion.
Broadcom (AVGO)
Source: Vova Shevchuk / Shutterstock.com
Broadcom (NASDAQ:AVGO) is another one of the high cash flow stocks that is one of the market’s best-performing stocks. AVGO stock is up 58% as the entire chip sector is recovering after leading the market downturn in 2022.
Demand for semiconductors remains strong, and the emergence of artificial intelligence applications will fuel future growth. But the base case for Broadcom is a little simpler. The company recently announced a partnership with Apple that will ensure continued revenue growth and earnings growth. The company’s strong profit margins are already fueling free cash flow growth which is expected to remain in the $17 to $18 billion range between now and 2030.
AVGO stock has a forward P/E ratio of around 23x earnings. That’s not exactly cheap, but investors get an attractive dividend that has a yield of 2.08% and an annual payout of $18.40 per share. Plus the company has increased its dividend in each of the last 13 years.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
If you could only pick one heavy cash flow energy stock, you can’t do much better than Chevron (NYSE:CVX). Chevron’s free cash flow topped $21 billion in 2022. And it’s expected to grow at an average of 7.14% in the next eight years. As one of the “big oil” stocks, Chevron is out of favor with many investors. And it’s also drawing the ire of lawmakers because of the company’s “windfall” profits. However, CVX shareholders certainly appreciate the company’s focus on providing value to its shareholders with its share buybacks and a dividend that currently has a yield of 3.82%.
And in this time of economic uncertainty, CVX stock is undervalued with a P/E ratio of just over 7x earnings. The company has also taken steps to reduce its debt which means that more buybacks and dividend growth are a near certainty.
Caterpillar (CAT)
Source: Epic Cure / Shutterstock
Caterpillar (NYSE:CAT) shareholders have been among the biggest beneficiaries of the current market rally. The stock has erased a 30% loss for the year to being and is now posting a small gain.
With more infrastructure money continuing to flow into the economy, the stock has room to run. Even with the recent run-up CAT stock is attractively valued at just 13x forward earnings. Plus, the company is a dividend aristocrat having increased its dividend in each of the last 30 consecutive years. In terms of free cash flow, Caterpillar doesn’t have the eye-popping numbers of some of the stocks on this list. But for investors who are looking for a safe haven stock, Caterpillar is a strong choice. The company’s FCF is expected to remain in the range of $7 to $8 billion, which will be more than enough to support the total return on CAT stock.
AbbVie (ABBV)
Source: shutterstock.com/CC7
AbbVie (NYSE:ABBV) is one of the first names to come to mind when you think about high-cash-flow stocks. Even though the company’s free cash flow will be lower with declining revenue from Humira, it’s still expected to remain in the mid to upper $20 billion range between now and 2030.
At the moment, ABBV is trading near its 52-week low. It has a forward P/E ratio of just over 12x. Both make a compelling case for bulls, especially when we factor in their yield of 4.27%. AbbVie is a dividend king having increased its dividend for 51 consecutive years. Moving forward, the company is facing massive biosimilar competition for Humira in the United States. Fortunately, the company has created a patent thicket around Humira which will protect the drug for certain indications. Better, the real protection for AbbVie comes from two newer drugs, Rinvoq and Skyrizi which are helping to make up for Humira’s lost revenue.
Pfizer (PFE)
Source: Freedom365day / Shutterstock.com
Pfizer (NYSE:PFE) was one of the best-performing stocks in 2021 and most of 2022. Over the last 18 months, not so much. In fact, in the last year, PFE stock is down 18% and that’s after rallying approximately 6% in the 30 days ending on June 15. However, with a P/E ratio of 7x earnings and a price that’s hovering around its 52-week low, PFE stock appears undervalued. And while analysts are concerned the company’s revenue and earnings will decline in 2023, the company has assured investors sales would not drop off as badly as feared. In addition, the bigger story is the company’s recent bid for Seagen (NASDAQ:SGEN) which will add to Pfizer’s existing pipeline of oncology drugs. The company believes that Seagen will contribute $10 billion in revenue by 2030. That will likely increase the company’s free cash flow which is forecast to be $15 billion in 2030 without the revenue from Seagen factored in.
Coca-Cola (KO)
Source: AdityaB. Photography/ShutterStock.com
Back in the 1980s, consumers chose their side in the “cola wars” between PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO). Today, the choice between PEP stock and KO stock may not be as polarizing, but it does bring out some distinct differences. While Pepsi is a more diversified company with a growing snack food division, when it comes to free cash flow, Coke is king. In 2022, Coke generated approximately $11 billion in free cash flow. That’s expected to climb to over $17 billion by 2030, a gain of over 54%.
To be fair, based strictly on total return, PEP stock has outpaced KO stock over the last five years. But Coca-Cola has always been known for its slow, steady growth. That’s one reason it has the support of Warren Buffett. Another reason is the company’s dividend. The dividend king has increased its dividend for 61 consecutive years and currently has a yield of 3.01%.
On the date of publication, Chris Markoch had a long position in AAPL, CVX, and PFE. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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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. | AAPL Apple $184.92 AVGO Broadcom $868.11 CVX Chevron $157.26 CAT Caterpillar $245.27 ABBV AbbVie $138.64 PFE Pfizer $40.06 KO Coca-Cola $61.67 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is up about 43% in 2023. AbbVie (ABBV) Source: shutterstock.com/CC7 AbbVie (NYSE:ABBV) is one of the first names to come to mind when you think about high-cash-flow stocks. At the moment, ABBV is trading near its 52-week low. | AAPL Apple $184.92 AVGO Broadcom $868.11 CVX Chevron $157.26 CAT Caterpillar $245.27 ABBV AbbVie $138.64 PFE Pfizer $40.06 KO Coca-Cola $61.67 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is up about 43% in 2023. AbbVie (ABBV) Source: shutterstock.com/CC7 AbbVie (NYSE:ABBV) is one of the first names to come to mind when you think about high-cash-flow stocks. At the moment, ABBV is trading near its 52-week low. | AAPL Apple $184.92 AVGO Broadcom $868.11 CVX Chevron $157.26 CAT Caterpillar $245.27 ABBV AbbVie $138.64 PFE Pfizer $40.06 KO Coca-Cola $61.67 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is up about 43% in 2023. AbbVie (ABBV) Source: shutterstock.com/CC7 AbbVie (NYSE:ABBV) is one of the first names to come to mind when you think about high-cash-flow stocks. At the moment, ABBV is trading near its 52-week low. | AAPL Apple $184.92 AVGO Broadcom $868.11 CVX Chevron $157.26 CAT Caterpillar $245.27 ABBV AbbVie $138.64 PFE Pfizer $40.06 KO Coca-Cola $61.67 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is up about 43% in 2023. AbbVie (ABBV) Source: shutterstock.com/CC7 AbbVie (NYSE:ABBV) is one of the first names to come to mind when you think about high-cash-flow stocks. At the moment, ABBV is trading near its 52-week low. |
22471.0 | 2023-06-16 00:00:00 UTC | This Biotech Is About to Eat AbbVie's Market Share, but Is It a Buy? | ABBV | https://www.nasdaq.com/articles/this-biotech-is-about-to-eat-abbvies-market-share-but-is-it-a-buy | nan | nan | Soon enough, there's a big chance that the plucky biotech Coherus Biosciences (NASDAQ: CHRS) is going to be eating AbbVie's (NYSE: ABBV) lunch. Assuming it does, it's not going to be stealing a fry from the corner of AbbVie's plate -- it's going for a big-mouth chomp of the cheeseburger with all the fixings. And there's nothing the larger company can do about it.
AbbVie shareholders are doubtless bracing themselves. But does that mean you should be considering an investment in Coherus? Let's find out.
This company's boon will be AbbVie's lament
Coherus develops new oncology drugs with a combination of in-licensing candidates and its own research and development (R&D) activities, but it also currently sells biosimilar drugs that are copies of medicines developed by other companies. While none of its internally developed therapies have been commercialized yet, it has two biosimilars on the market, and it plans to launch three more by the end of 2023. Sales of those biosimilars brought in $211 million in 2022, but its existing portfolio of marketed medicines hasn't been enough to make the company profitable yet. Still, if regulators give it the green light to commercialize its biosimilar to Humira, AbbVie's crown jewel, that could change almost overnight.
In case you aren't familiar, Humira is one of the world's highest-grossing medicines. It treats rheumatoid arthritis, ankylosing spondylitis, Crohn's disease, plaque psoriasis, and several other conditions, and in 2022, global sales of the drug were $21.2 billion. But since 2023, Humira no longer has the exclusivity protections that prevented competitors from making generic copies of it.
That's where Coherus is looking to profit. Its management estimates that the generic market for Humira will be worth around $17 billion per year. The company plans to market its biosimilar to Humira under the trade name Yusimry, and the strategy will be to keep its pricing as low as possible in order to compete on scale. Its price point will be $995 per carton, which is 85% lower than brand-name Humira, so AbbVie has practically zero chance of retaining its market share.
By the end of July, Yusimry is likely to be on the market. Amgen already launched its biosimilar to Humira, and other competing entries are on the way too. But Amgen's pricing will be between $1,557 and $3,288 per two-week supply, so Coherus will have an advantage despite showing up late to the market.
Does any of the above make this stock a buy?
The return Coherus is anticipating from commercializing Yusimry is likely to be quite significant. Wall Street analysts are estimating that its total revenue will rise by more than 41% this year, and then by 94% in 2024, potentially bringing in roughly $581 million. By the end of 2024, that should make it profitable, per Wall Street.
As of Q1, it had $471 million in long-term debt and $128 million in cash, equivalents, and short-term investments, and its trailing 12-month operating expenses are $398 million. It also just issued quite a lot of stock, raising $50 million in the process. Even with the boost from the new share issuance, something is going to have to give within the next 12 months, as it simply doesn't have enough money to pay for its operations at their current level.
Given its sunny near-term prospects, it can probably take out more debt to tide it over for the next year and a half or so without too much trouble. But if reaching profitability by scaling up Yusimry hits a bump in the road, it might need to dilute its shareholders more by issuing more stock or taking out even more debt. In the long term, the more it needs to borrow today, the lower its earnings will be in the future, at least until it's generating enough free cash flow (FCF) to deleverage aggressively, which could take a few years.
Overall, investors don't have any hard evidence that Coherus will actually be profitable in the foreseeable future. Investors will be closely watching whether the company can follow through on its ambition to commercialize one of its non-generic therapy programs while also launching four biosimilars (including Yusimry) over the next year or so. If all of these play out as anticipated, it's hard to see how the stock would do anything other than go up.
Investors will also be watching if Coherus can demonstrate that its discount pricing strategy makes Yusimry more appealing to buyers than the other biosimilars to Humira over the coming quarters. Again, if successful, that'll be another strong point in the stock's favor.
With that said, there aren't any major red flags aside from its debt, but there is still a solid possibility that its plans are more expansive than what it can actually accomplish given its financial constraints right now. So if you're willing to take a moderately risky shot, it could be worth buying a few shares, but there's no rush.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool recommends Amgen. 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. | Soon enough, there's a big chance that the plucky biotech Coherus Biosciences (NASDAQ: CHRS) is going to be eating AbbVie's (NYSE: ABBV) lunch. Assuming it does, it's not going to be stealing a fry from the corner of AbbVie's plate -- it's going for a big-mouth chomp of the cheeseburger with all the fixings. AbbVie shareholders are doubtless bracing themselves. | Soon enough, there's a big chance that the plucky biotech Coherus Biosciences (NASDAQ: CHRS) is going to be eating AbbVie's (NYSE: ABBV) lunch. Assuming it does, it's not going to be stealing a fry from the corner of AbbVie's plate -- it's going for a big-mouth chomp of the cheeseburger with all the fixings. AbbVie shareholders are doubtless bracing themselves. | This company's boon will be AbbVie's lament Coherus develops new oncology drugs with a combination of in-licensing candidates and its own research and development (R&D) activities, but it also currently sells biosimilar drugs that are copies of medicines developed by other companies. Soon enough, there's a big chance that the plucky biotech Coherus Biosciences (NASDAQ: CHRS) is going to be eating AbbVie's (NYSE: ABBV) lunch. Assuming it does, it's not going to be stealing a fry from the corner of AbbVie's plate -- it's going for a big-mouth chomp of the cheeseburger with all the fixings. | Soon enough, there's a big chance that the plucky biotech Coherus Biosciences (NASDAQ: CHRS) is going to be eating AbbVie's (NYSE: ABBV) lunch. Assuming it does, it's not going to be stealing a fry from the corner of AbbVie's plate -- it's going for a big-mouth chomp of the cheeseburger with all the fixings. AbbVie shareholders are doubtless bracing themselves. |
22472.0 | 2023-06-16 00:00:00 UTC | Notable ETF Inflow Detected - XLV, ABBV, DHR, BMY | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-xlv-abbv-dhr-bmy | 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 $350.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 310,620,000 to 313,270,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Danaher Corp (Symbol: DHR) is up about 0.1%, and Bristol Myers Squibb Co. (Symbol: BMY) is higher by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $119.85 per share, with $141.77 as the 52 week high point — that compares with a last trade of $132.61. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Danaher Corp (Symbol: DHR) is up about 0.1%, and Bristol Myers Squibb Co. (Symbol: BMY) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 310,620,000 to 313,270,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Danaher Corp (Symbol: DHR) is up about 0.1%, and Bristol Myers Squibb Co. (Symbol: BMY) is higher by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $119.85 per share, with $141.77 as the 52 week high point — that compares with a last trade of $132.61. 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 XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Danaher Corp (Symbol: DHR) is up about 0.1%, and Bristol Myers Squibb Co. (Symbol: BMY) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 310,620,000 to 313,270,000). 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 $119.85 per share, with $141.77 as the 52 week high point — that compares with a last trade of $132.61. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Danaher Corp (Symbol: DHR) is up about 0.1%, and Bristol Myers Squibb Co. (Symbol: BMY) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 310,620,000 to 313,270,000). Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. |
22473.0 | 2023-06-16 00:00:00 UTC | AbbVie's (ABBV) Skyrizi Meets Ulcerative Colitis Study Goals | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-skyrizi-meets-ulcerative-colitis-study-goals | nan | nan | AbbVie, Inc. ABBV announced top-line data from the phase III maintenance study, COMMAND, which evaluated its IL-23 drug Skyrizi (risankizumab) in adult patients with moderately to severely active ulcerative colitis (“UC”) indication.
Data from the COMMAND study showed that a significantly higher proportion of patients treated with Skyrizi (180mg or 360mg, administered subcutaneously) achieved the primary endpoint of clinical remission at week 52.40% and 38% of study participants who received the 180mg and 360mg dose of the drug, respectively, achieved clinical remission, compared to 25% of patients enrolled in the control group.
Study participants who were administered Skyrizi also achieved endoscopic improvement, histologic-endoscopic mucosal improvement and steroid-free remission following 52 weeks of treatment, which were also the study’s key secondary endpoints. The drug’s safety profile was consistent with the data from prior studies in other indications.
Currently, Skyrizi is approved by the FDA for three indications, which are plaque psoriasis, psoriatic arthritis (PsA) and Crohn’s disease (“CD”).
Shares of AbbVie have declined 15.9% so far this year against the industry’s 0.6% rise.
Image Source: Zacks Investment Research
The COMMAND study enrolled only those patients who had responded to induction treatment with the drug in the phase III INSPIRE study. In March, AbbVie reported top-line data from the INSPIRE study, wherein treatment with an intravenous 1200mg dose of Skyrizi achieved the primary endpoint of clinical remission at week 12.
The targeted UC market is highly competitive. AbbVie faces stiff competition from Johnson & Johnson JNJ, which markets its own drug Stelara which utilizes a similar mechanism of action to treat the CD indication.
A blockbuster drug, J&J’s Stelara is a human IL-12 and IL-23 antagonist approved by the FDA for treating moderately to severely active UC. The drug is also approved for other indications, including psoriasis, CD and PsA. Evidently, Stelara is one of J&J’s top-line drivers. During first-quarter 2023, J&J recorded revenues worth $2.4 billion from Stelara sales.
Last month, the FDA approved AbbVie’s blockbuster JAK inhibitor Rinvoq for the treatment of adults with moderately to severely active CD who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The approval marks the seventh FDA-approved indication for Rinvoq across rheumatology, dermatology and gastroenterology. Apart from CD, Rinvoq is also approved for rheumatoid arthritis, PsA, UC, ankylosing spondylitis and eczema indications.
AbbVie is focused on strengthening its focus on new immunology medicines, Skyrizi and Rinvoq, to lessen its dependence on Humira, a major top-line driver for AbbVie, which recently lost exclusivity in the United States. Both Skyrizi and Rinvoq demonstrated differentiated clinical profiles, compared to Humira.
Over the years, AbbVie’s Humira sales have been steadily declining due to biosimilars eroding the ex-U.S. sales of the drug. Humira’s international sales are already eroding due to the launch of several direct biosimilar drugs in Europe by other pharma companies, including Amgen AMGN, Novartis’ NVS Sandoz division and Biogen. Companies like Amgen, Novartis and Biogen were the first to start commercializing a Humira-biosimilar in Europe in 2018.
In January, Amgen announced the launch of the first Humira biosimilar in the United States. The biosimilar is being marketed by Amgen under the trade name Amjevita. Like Amgen, several other companies like Biogen, Boehringer Ingelheim and Pfizer have also received FDA approvals for their own Humira biosimilars, many of which are expected to be launched at various times this year per agreements with AbbVie. In March 2023, Novartis (through its Sandoz division) announced that the FDA had approved its Humira biosimilar, which will be marketed under the trade name Hyrimoz. The Novartis division intends to market the drug in the United States from July 1, 2023.
With many new indications coming in the next couple of years, AbbVie expects sales of Skyrizi and Rinvoq to be higher and potentially replace Humira. Skyrizi and Rinvoq are expected to collectively exceed the peak revenues achieved by Humira by 2027. Management expects the combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $17.5 billion in 2025 and more than $21 billion by 2027.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Inc. ABBV announced top-line data from the phase III maintenance study, COMMAND, which evaluated its IL-23 drug Skyrizi (risankizumab) in adult patients with moderately to severely active ulcerative colitis (“UC”) indication. Last month, the FDA approved AbbVie’s blockbuster JAK inhibitor Rinvoq for the treatment of adults with moderately to severely active CD who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. Shares of AbbVie have declined 15.9% so far this year against the industry’s 0.6% rise. | AbbVie, Inc. ABBV announced top-line data from the phase III maintenance study, COMMAND, which evaluated its IL-23 drug Skyrizi (risankizumab) in adult patients with moderately to severely active ulcerative colitis (“UC”) indication. 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. Shares of AbbVie have declined 15.9% so far this year against the industry’s 0.6% rise. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank AbbVie currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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, Inc. ABBV announced top-line data from the phase III maintenance study, COMMAND, which evaluated its IL-23 drug Skyrizi (risankizumab) in adult patients with moderately to severely active ulcerative colitis (“UC”) indication. | Like Amgen, several other companies like Biogen, Boehringer Ingelheim and Pfizer have also received FDA approvals for their own Humira biosimilars, many of which are expected to be launched at various times this year per agreements with AbbVie. AbbVie, Inc. ABBV announced top-line data from the phase III maintenance study, COMMAND, which evaluated its IL-23 drug Skyrizi (risankizumab) in adult patients with moderately to severely active ulcerative colitis (“UC”) indication. Shares of AbbVie have declined 15.9% so far this year against the industry’s 0.6% rise. |
22474.0 | 2023-06-16 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-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. |
22475.0 | 2023-06-16 00:00:00 UTC | Roche's cancer therapy gets US FDA nod, heating up competition with AbbVie | ABBV | https://www.nasdaq.com/articles/roches-cancer-therapy-gets-us-fda-nod-heating-up-competition-with-abbvie | nan | nan | By Mariam Sunny and Pratik Jain
June 16 (Reuters) - The U.S. Food and Drug Administration (FDA) greenlighted Roche Holding AG's ROG.S experimental therapy to treat a type of advanced blood cancer, nearly a month after the approval of a rival therapy from AbbVie Inc ABBV.N.
Roche's Columvi, an antibody-based therapy chemically known as glofitamab, was approved to treat diffuse large B-cell lymphoma in adults, who had received at least two prior lines of treatment before their cancer relapsed, the Swiss drugmaker said late on Thursday.
AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO therapy, epcoritamab, last month became the first approved bispecific antibody-based therapy for the disease that annually affects 150,000 people globally.
The list price of epcoritamab, branded as Epkinly, is $37,500 per month. It has an average therapy duration of around nine months, followed by infrequent dosing thereafter.
Roche's Columvi, a fixed-duration treatment completed in about 8.5 months, is expected to cost about $350,000 for the full course and would be available in the United States in the coming weeks, the company said in an emailed response.
Shares of Roche listed on the Swiss stock exchange rose 1.8% to 280.35 CHF ($314.61).
Both Columvi and Epkinly belong to a class of therapies called bispecific antibodies that are designed to bring a cancer cell and an immune cell together so the body's immune system can kill the cancer.
Columvi's approval is based on data from a mid-stage study that showed that 56% of patients treated with the therapy had no signs of cancer or had seen a significant decrease in cancer cells in the body.
($1 = 0.8911 Swiss francs)
(Reporting by Mariam Sunny and Pratik Jain in Bengaluru; Editing by Shinjini Ganguli)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mariam Sunny and Pratik Jain June 16 (Reuters) - The U.S. Food and Drug Administration (FDA) greenlighted Roche Holding AG's ROG.S experimental therapy to treat a type of advanced blood cancer, nearly a month after the approval of a rival therapy from AbbVie Inc ABBV.N. AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO therapy, epcoritamab, last month became the first approved bispecific antibody-based therapy for the disease that annually affects 150,000 people globally. Roche's Columvi, an antibody-based therapy chemically known as glofitamab, was approved to treat diffuse large B-cell lymphoma in adults, who had received at least two prior lines of treatment before their cancer relapsed, the Swiss drugmaker said late on Thursday. | By Mariam Sunny and Pratik Jain June 16 (Reuters) - The U.S. Food and Drug Administration (FDA) greenlighted Roche Holding AG's ROG.S experimental therapy to treat a type of advanced blood cancer, nearly a month after the approval of a rival therapy from AbbVie Inc ABBV.N. AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO therapy, epcoritamab, last month became the first approved bispecific antibody-based therapy for the disease that annually affects 150,000 people globally. Both Columvi and Epkinly belong to a class of therapies called bispecific antibodies that are designed to bring a cancer cell and an immune cell together so the body's immune system can kill the cancer. | By Mariam Sunny and Pratik Jain June 16 (Reuters) - The U.S. Food and Drug Administration (FDA) greenlighted Roche Holding AG's ROG.S experimental therapy to treat a type of advanced blood cancer, nearly a month after the approval of a rival therapy from AbbVie Inc ABBV.N. AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO therapy, epcoritamab, last month became the first approved bispecific antibody-based therapy for the disease that annually affects 150,000 people globally. Roche's Columvi, an antibody-based therapy chemically known as glofitamab, was approved to treat diffuse large B-cell lymphoma in adults, who had received at least two prior lines of treatment before their cancer relapsed, the Swiss drugmaker said late on Thursday. | By Mariam Sunny and Pratik Jain June 16 (Reuters) - The U.S. Food and Drug Administration (FDA) greenlighted Roche Holding AG's ROG.S experimental therapy to treat a type of advanced blood cancer, nearly a month after the approval of a rival therapy from AbbVie Inc ABBV.N. AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO therapy, epcoritamab, last month became the first approved bispecific antibody-based therapy for the disease that annually affects 150,000 people globally. The list price of epcoritamab, branded as Epkinly, is $37,500 per month. |
22476.0 | 2023-06-15 00:00:00 UTC | How Has Merck Stock Performed During The 2022-23 Inflation Shock? | ABBV | https://www.nasdaq.com/articles/how-has-merck-stock-performed-during-the-2022-23-inflation-shock | nan | nan | Merck stock (NYSE: MRK) currently trades at $110 per share, roughly 43% above its level in March 2021, and it looks fully valued. Merck saw its stock trading at around $91 in late June 2022, just before the Fed started increasing rates, and is now 20% above that level. The stock has gained 28% since September 2022 compared to the S&P 500, which gained about 21% during this period. The rise in Merck stock over the recent past can be attributed to its upbeat Q1 and the company raising its full-year outlook. Merck recently acquired Prometheus Biosciences, bolstering its autoimmune pipeline and aiding its stock appreciation. Given that MRK stock has already rallied quite a bit since its lows in 2021, we believe it’s fully valued now and estimate Merck’s valuation to be around $112 per share, aligning with the current market price.
Our detailed analysis of Merck’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses.
In contrast, here’s how MRK stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
Merck and S&P 500 Performance During 2007-08 Crisis
MRK stock declined from $52 in September 2007 (pre-crisis peak) to around $24 in March 2009 (as the markets bottomed out), implying it lost nearly 54% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $37 in early 2010, rising 50% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
Merck’s Fundamentals Over Recent Years
Merck’s revenues rose from $39.1 billion in 2019 to $59.3 billion in 2022, led by Keytruda and its Covid-19 antiviral drug. Although Merck has seen a slight decline in sales over the recent quarters due to the lower contribution of its Covid-19 drug, its key products – Keytruda and Gardasil – continue to gain market share and deliver strong sales growth. Merck’s operating margin has expanded from 18.7% in 2019 to 27.8% now. Our Merck’s Operating Income Comparison dashboard has more details.
Does Merck Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
Merck’s total debt increased from $26 billion in 2019 to $31 billion now, while its total cash increased marginally from around $11 billion to $12 billion over the same period. The company garnered $19 billion in cash flows from operations in 2022. Overall, Merck is in a very comfortable position to meet its near-term obligations, given its solid cash position.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe Merck’s (MRK) stock is now fully valued with limited upside, even if fears of a potential recession are allayed. In fact, the uncertainties around the U.S. government’s attempt to bring down the drug prices paid for by Medicare remain a key risk factor for Merck’s stock.
While MRK stock looks like it is fully valued, 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 which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for IDEX vs. Merck.
With inflation rising and the Fed raising interest rates, among other factors, MRK stock has fallen 1% 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 more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.
Returns Jun 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return 0% -1% 87%
S&P 500 Return 4% 13% 94%
Trefis Multi-Strategy Portfolio 5% 15% 260%
[1] Month-to-date and year-to-date as of 6/14/2023
[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. | Given that MRK stock has already rallied quite a bit since its lows in 2021, we believe it’s fully valued now and estimate Merck’s valuation to be around $112 per share, aligning with the current market price. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe Merck’s (MRK) stock is now fully valued with limited upside, even if fears of a potential recession are allayed. In fact, the uncertainties around the U.S. government’s attempt to bring down the drug prices paid for by Medicare remain a key risk factor for Merck’s stock. | July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Merck and S&P 500 Performance During 2007-08 Crisis MRK stock declined from $52 in September 2007 (pre-crisis peak) to around $24 in March 2009 (as the markets bottomed out), implying it lost nearly 54% of its pre-crisis value. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe Merck’s (MRK) stock is now fully valued with limited upside, even if fears of a potential recession are allayed. | Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Merck and S&P 500 Performance During 2007-08 Crisis MRK stock declined from $52 in September 2007 (pre-crisis peak) to around $24 in March 2009 (as the markets bottomed out), implying it lost nearly 54% of its pre-crisis value. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe Merck’s (MRK) stock is now fully valued with limited upside, even if fears of a potential recession are allayed. Total [2] MRK Return 0% -1% 87% S&P 500 Return 4% 13% 94% Trefis Multi-Strategy Portfolio 5% 15% 260% [1] Month-to-date and year-to-date as of 6/14/2023 [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. | Given that MRK stock has already rallied quite a bit since its lows in 2021, we believe it’s fully valued now and estimate Merck’s valuation to be around $112 per share, aligning with the current market price. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. Total [2] MRK Return 0% -1% 87% S&P 500 Return 4% 13% 94% Trefis Multi-Strategy Portfolio 5% 15% 260% [1] Month-to-date and year-to-date as of 6/14/2023 [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. |
22477.0 | 2023-06-15 00:00:00 UTC | Notable Thursday Option Activity: PG, MARA, ABBV | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-pg-mara-abbv | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Procter & Gamble Company (Symbol: PG), where a total volume of 25,957 contracts has been traded thus far today, a contract volume which is representative of approximately 2.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 40.9% of PG's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $160 strike put option expiring June 16, 2023, with 4,100 contracts trading so far today, representing approximately 410,000 underlying shares of PG. Below is a chart showing PG's trailing twelve month trading history, with the $160 strike highlighted in orange:
Marathon Digital Holdings Inc (Symbol: MARA) options are showing a volume of 122,686 contracts thus far today. That number of contracts represents approximately 12.3 million underlying shares, working out to a sizeable 40.5% of MARA's average daily trading volume over the past month, of 30.3 million shares. Particularly high volume was seen for the $10 strike call option expiring June 16, 2023, with 12,290 contracts trading so far today, representing approximately 1.2 million underlying shares of MARA. Below is a chart showing MARA's trailing twelve month trading history, with the $10 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 24,075 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 40.1% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $165 strike put option expiring June 16, 2023, with 3,550 contracts trading so far today, representing approximately 355,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for PG options, MARA options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
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MKUL Historical Stock Prices
LMAT Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $165 strike put option expiring June 16, 2023, with 3,550 contracts trading so far today, representing approximately 355,000 underlying shares of ABBV. Below is a chart showing MARA's trailing twelve month trading history, with the $10 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 24,075 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 40.1% of ABBV's average daily trading volume over the past month, of 6.0 million shares. | Below is a chart showing MARA's trailing twelve month trading history, with the $10 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 24,075 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 40.1% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $165 strike put option expiring June 16, 2023, with 3,550 contracts trading so far today, representing approximately 355,000 underlying shares of ABBV. | That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 40.1% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing MARA's trailing twelve month trading history, with the $10 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 24,075 contracts thus far today. Especially high volume was seen for the $165 strike put option expiring June 16, 2023, with 3,550 contracts trading so far today, representing approximately 355,000 underlying shares of ABBV. | That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 40.1% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $165 strike put option expiring June 16, 2023, with 3,550 contracts trading so far today, representing approximately 355,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for PG options, MARA options, or ABBV options, visit StockOptionsChannel.com. |
22478.0 | 2023-06-15 00:00:00 UTC | Abbvie, Coherus agree to resolve dispute over Humira biosimilar | ABBV | https://www.nasdaq.com/articles/abbvie-coherus-agree-to-resolve-dispute-over-humira-biosimilar | nan | nan | June 15 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it had agreed to resolve a dispute over its plans to launch a lower-priced version of AbbVie Inc's ABBV.N Humira, its blockbuster rheumatoid arthritis drug.
Earlier this month, Coherus had said it would launch a biosimilar version of the world's biggest selling drug, at an 85% discount to the list price of about $6,922, and partnered with Mark Cuban Cost Plus Drug Company to sell it at $569.27.
AbbVie had alleged that it was a breach of an older agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the United States from July 1.
The companies on Wednesday reached an agreement that Abbvie would not terminate the initial licensing deal based on its notice.
They also agreed that Abbvie would have to serve another notice and give Coherus time to resolve the breach if it chooses to terminate the licensing agreement.
AbbVie did not immediately respond to a Reuters request for comment.
(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. | June 15 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it had agreed to resolve a dispute over its plans to launch a lower-priced version of AbbVie Inc's ABBV.N Humira, its blockbuster rheumatoid arthritis drug. AbbVie had alleged that it was a breach of an older agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the United States from July 1. They also agreed that Abbvie would have to serve another notice and give Coherus time to resolve the breach if it chooses to terminate the licensing agreement. | AbbVie had alleged that it was a breach of an older agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the United States from July 1. They also agreed that Abbvie would have to serve another notice and give Coherus time to resolve the breach if it chooses to terminate the licensing agreement. June 15 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it had agreed to resolve a dispute over its plans to launch a lower-priced version of AbbVie Inc's ABBV.N Humira, its blockbuster rheumatoid arthritis drug. | June 15 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it had agreed to resolve a dispute over its plans to launch a lower-priced version of AbbVie Inc's ABBV.N Humira, its blockbuster rheumatoid arthritis drug. AbbVie had alleged that it was a breach of an older agreement that granted Coherus a non-exclusive license to commercialize a biosimilar version of Humira in the United States from July 1. They also agreed that Abbvie would have to serve another notice and give Coherus time to resolve the breach if it chooses to terminate the licensing agreement. | June 15 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it had agreed to resolve a dispute over its plans to launch a lower-priced version of AbbVie Inc's ABBV.N Humira, its blockbuster rheumatoid arthritis drug. They also agreed that Abbvie would have to serve another notice and give Coherus time to resolve the breach if it chooses to terminate the licensing agreement. AbbVie did not immediately respond to a Reuters request for comment. |
22479.0 | 2023-06-14 00:00:00 UTC | ABBV Factor-Based Stock Analysis | ABBV | https://www.nasdaq.com/articles/abbv-factor-based-stock-analysis | 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. |
22480.0 | 2023-06-13 00:00:00 UTC | Is SPDR Portfolio S&P 500 High Dividend ETF (SPYD) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-spdr-portfolio-sp-500-high-dividend-etf-spyd-a-strong-etf-right-now-8 | nan | nan | The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) was launched on 10/21/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
SPYD is managed by State Street Global Advisors, and this fund has amassed over $6.49 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the S&P 500 High Dividend Index.
The S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for SPYD are 0.07%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 4.64%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For SPYD, it has heaviest allocation in the Real Estate sector --about 22.60% of the portfolio --while Financials and Utilities round out the top three.
Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of the fund's total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG).
The top 10 holdings account for about 13.31% of total assets under management.
Performance and Risk
Year-to-date, the SPDR Portfolio S&P 500 High Dividend ETF has lost about -5.51% so far, and is down about -8.72% over the last 12 months (as of 06/13/2023). SPYD has traded between $35.13 and $43.38 in this past 52-week period.
The ETF has a beta of 0.99 and standard deviation of 20.30% for the trailing three-year period, making it a medium risk choice in the space. With about 82 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.98 billion in assets, Vanguard Value ETF has $98.16 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of the fund's total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) was launched on 10/21/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of the fund's total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : 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. 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. | Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of the fund's total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) was launched on 10/21/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 1.50% of the fund's total assets, followed by Pinnacle West Capital Corporation (PNW) and Packaging Corporation Of America (PKG). Click to get this free report SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) was launched on 10/21/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. |
22481.0 | 2023-06-13 00:00:00 UTC | Mustang (MBIO) Up 9% on Rare Blood Cancer Study's Upbeat Data | ABBV | https://www.nasdaq.com/articles/mustang-mbio-up-9-on-rare-blood-cancer-studys-upbeat-data | nan | nan | Shares of Mustang Bio MBIO were up 9.2% on Jun 12 after management announced updated results from a cohort of an ongoing single-institution phase I/II study evaluating its lead clinical candidate MB-106 in patients with Waldenstrom macroglobulinemia (“WM”), a rare form of blood cancer.
Data from the study showed that treatment with MB-106 exhibited a favorable safety and efficacy profile in WM patients, all (n=6) of whom were previously treated with Bruton's tyrosine kinase (“BTK”) inhibitors and their disease continued to progress while on BTK inhibitors.
Per management, participants treated with MB-106 achieved an overall response rate (“ORR”) of 83%, including two complete responses (“CR”). One of the patients who achieved CR remains in remission at 22 months. Also, none of the patients started treatment with an additional anti-WM treatment following MB-106 administration.
Mustang Bio’s stock has risen 20.7% in the past year against the industry‘s 7.8% decline.
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A CD20-targeted autologous CAR T cell therapy, MB-106, is being developed in the above-mentioned phase I/II study to treat patients with relapsed or refractory B-cell non-Hodgkin lymphomas (“B-NHLs”) and chronic lymphocytic leukemia (“CLL”). This study is being sponsored by Fred Hutchinson Cancer Center (“Fred Hutch”), Mustang’s research collaborator. MB-106 was licensed by Fred Hutch to Mustang in 2017.
Currently, there are no FDA-approved CAR T treatments in WM indication. Mustang believes that MB-106 has the potential to address a significant unmet need. The FDA has granted orphan drug designation to MB-106 in WM indication based on data from a company-sponsored phase I/II multicenter study evaluating MB-106 in patients with relapsed or refractory B-Cell NHL or CLL.
A popular drug approved in WM indication is Imbruvica, which is jointly marketed by pharma giants J&J JNJ and AbbVie ABBV. The AbbVie-J&J partnered drug was the first FDA-approved therapy in WM indication. A BTK inhibitor, AbbVie/J&J’s Imbruvica is also approved by the FDA in CLL and small lymphocytic lymphoma (“SLL”) indications.
ABBV and J&J co-exclusively market Imbruvica in the United States. However, J&J has an exclusive license to market the drug outside the United States and shares profits from the drug’s ex-U.S. sales with AbbVie.
Mustang Bio, Inc. Price
Mustang Bio, Inc. price | Mustang Bio, Inc. Quote
Zacks Rank & Stocks to Consider
Mustang Bio currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another better-ranked stock in the overall healthcare sector is Novartis NVS, which carries the same rank as that of MBIO.
In the past 60 days, estimates for Novartis’ 2023 and 2024 earnings per share have increased from $6.57 to $6.72 and $7.08 to $7.26, respectively. Shares of Novartis are up 10.2% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.15%. In the last reported quarter, Novartis’ earnings beat estimates by 10.32%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A popular drug approved in WM indication is Imbruvica, which is jointly marketed by pharma giants J&J JNJ and AbbVie ABBV. The AbbVie-J&J partnered drug was the first FDA-approved therapy in WM indication. A BTK inhibitor, AbbVie/J&J’s Imbruvica is also approved by the FDA in CLL and small lymphocytic lymphoma (“SLL”) indications. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Mustang Bio, Inc. (MBIO) : Free Stock Analysis Report To read this article on Zacks.com click here. A popular drug approved in WM indication is Imbruvica, which is jointly marketed by pharma giants J&J JNJ and AbbVie ABBV. The AbbVie-J&J partnered drug was the first FDA-approved therapy in WM indication. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Mustang Bio, Inc. (MBIO) : Free Stock Analysis Report To read this article on Zacks.com click here. A popular drug approved in WM indication is Imbruvica, which is jointly marketed by pharma giants J&J JNJ and AbbVie ABBV. The AbbVie-J&J partnered drug was the first FDA-approved therapy in WM indication. | A popular drug approved in WM indication is Imbruvica, which is jointly marketed by pharma giants J&J JNJ and AbbVie ABBV. The AbbVie-J&J partnered drug was the first FDA-approved therapy in WM indication. A BTK inhibitor, AbbVie/J&J’s Imbruvica is also approved by the FDA in CLL and small lymphocytic lymphoma (“SLL”) indications. |
22482.0 | 2023-06-13 00:00:00 UTC | Ironwood (IRWD), AbbVie Get FDA Nod for Linzess Label Expansion | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-abbvie-get-fda-nod-for-linzess-label-expansion | nan | nan | Ironwood IRWD announced that the FDA has approved Linzess (linaclotide) as a once-daily treatment for functional constipation in pediatric patients aged 6-17 years. This approval for the new indication marks a milestone for IRWD as Linzess becomes the first and only FDA-approved prescription therapy for functional constipation in pediatric patients.
The drug was launched in 2012 for patients suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC). With a strong market demand, Linzess is a leading brand in treating gastrointestinal diseases in the United States. More than 4.5 million adult patients with IBS-C and CIC have been treated with the drug since its launch.
In December 2022, partner AbbVie ABBV filed a regulatory application with the FDA, seeking expanded use of Linzess to treat functional constipation in pediatric patients.
Shares of Ironwood nosedived 7.8% year to date compared with the industry’s 2.5% decline.
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Functional constipation in children is a chronic condition, characterized by infrequent and hard bowel movements that are often painful. It is estimated that approximately 6 million children, aged 6-17 years, in the United States are affected by this health condition.
The FDA approval for the use of Linzess in pediatric population was based on data from a large double-blind phase III study that evaluated the drug’s effectiveness in patients with functional constipation. The study involved 328 patients who were randomized to receive either Linzess 72 mcg or a placebo.
The results showed that linaclotide demonstrated a statistically significant and clinically meaningful improvement compared to placebo. The linaclotide-treated patients experienced more than a two-fold increase in spontaneous bowel movements per week compared to the other group.
Ironwood co-develops and co-commercializes Linzess with partner AbbVie. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. Ironwood receives royalties on sales of Constella in these two regions.
Ironwood has partnered with AstraZeneca for the development and commercialization of Linzess in China. It has also joined forces with AbbVie for the global development and commercialization of linaclotide.
In the first quarter of 2023, Ironwood’s share of net profits from the sales of Linzess in the United States was $101.6 million, up 8% year over year. This can be attributed to an acceleration in new prescription volume. The new prescription demand increased 10% from that recorded in the year-ago period.
Ironwood Pharmaceuticals, Inc. Price and Consensus
Ironwood Pharmaceuticals, Inc. price-consensus-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Ironwood currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the biotech sector are Akero Therapeutics AKRO and ADMA Biologics, Inc. ADMA, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimate for Akero Therapeutics has narrowed from $3.46 to $2.80 for 2023 in the past 90 days. Shares of Akero Therapeutics have risen 1% year to date.
AKRO’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 7.96%.
Loss per share estimate for ADMA Biologics has narrowed from 19 cents to 9 cents for 2023 in the past 90 days. Shares of ADMA Biologics have nosedived 1.5% year to date.
ADMA’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.13%.
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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 December 2022, partner AbbVie ABBV filed a regulatory application with the FDA, seeking expanded use of Linzess to treat functional constipation in pediatric patients. Ironwood co-develops and co-commercializes Linzess with partner AbbVie. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. | Click to get this free report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO) : Free Stock Analysis Report To read this article on Zacks.com click here. In December 2022, partner AbbVie ABBV filed a regulatory application with the FDA, seeking expanded use of Linzess to treat functional constipation in pediatric patients. Ironwood co-develops and co-commercializes Linzess with partner AbbVie. | Click to get this free report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO) : Free Stock Analysis Report To read this article on Zacks.com click here. In December 2022, partner AbbVie ABBV filed a regulatory application with the FDA, seeking expanded use of Linzess to treat functional constipation in pediatric patients. Ironwood co-develops and co-commercializes Linzess with partner AbbVie. | In December 2022, partner AbbVie ABBV filed a regulatory application with the FDA, seeking expanded use of Linzess to treat functional constipation in pediatric patients. Ironwood co-develops and co-commercializes Linzess with partner AbbVie. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. |
22483.0 | 2023-06-12 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-10 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $137.73, marking a -0.33% move from the previous day. This move lagged the S&P 500's daily gain of 0.93%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.
Prior to today's trading, shares of the drugmaker had lost 6.1% over the past month. This has lagged the Medical sector's loss of 1.62% and the S&P 500's gain of 4.61% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $2.93, down 13.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.52 billion, down 7.27% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.97 per share and revenue of $52.57 billion. These totals would mark changes of -20.33% and -9.45%, respectively, from last year.
Investors should also note any 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. AbbVie currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 12.59 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.01.
Also, we should mention that ABBV has a PEG ratio of 2.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.68 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $137.73, marking a -0.33% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $137.73, marking a -0.33% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $137.73, marking a -0.33% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $137.73, marking a -0.33% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. |
22484.0 | 2023-06-12 00:00:00 UTC | XPeng's New EV Is a Hit, but This Biotech Stock Is Leaving It in the Dust | ABBV | https://www.nasdaq.com/articles/xpengs-new-ev-is-a-hit-but-this-biotech-stock-is-leaving-it-in-the-dust | nan | nan | Investors appeared to be in a good mood on Monday morning. Based on stock index futures, it was likely that major market benchmarks would hold onto their gains from last week and even make modest moves higher. The Nasdaq Composite seemed particularly well positioned, with indications suggesting a rise of as much as half a percent early Monday.
Electric vehicles (EVs) remain an important driver of economic growth, and XPeng (NYSE: XPEV) reported that a new model got off to a roaring start over the weekend. However, the jump in the Chinese EV maker's stock was modest compared to the much larger move for Chinook Therapeutics (NASDAQ: KDNY), whose shares skyrocketed on news of an agreement to purchase the biotech specialist. Read on to learn the details behind both companies and their latest stock-price gains.
XPeng has buyers excited
Shares of XPeng climbed 9% in premarket trading on Monday morning. The Chinese electric vehicle maker has seen its stock fall sharply over the past year as competition in the industry heats up, but investors were pleased to see a new vehicle model get a positive reception from consumers over the weekend.
XPeng started showing consumers its new G6 SUV model late last week, and would-be buyers flooded into the company's stores to look at the new vehicle. Apparently, many of them were impressed, because XPeng said that it got over 25,000 orders for G6 vehicles in the first 72 hours it started accepting them.
The G6 has several attractive features. Its range of nearly 470 miles is appealing to those who need to drive long distances on a single charge, while its high-voltage internal electrical system gives the G6 fast-charging capabilities that are increasingly important as more EVs hit the road. Pre-sale prices are also lower than what Tesla (NASDAQ: TSLA) is charging for its Model Y in China right now.
There are plenty of automakers in China vying for supremacy in the fast-growing EV segment, and XPeng can't declare victory yet. Nevertheless, for shareholders who have hoped for a positive catalyst, the new G6 could be at least one step in the right direction for XPeng.
Chinook gets an offer it can't refuse
Shares of Chinook Therapeutics got a much larger boost early Monday. The stock soared nearly 60% as the biotech company entered into an acquisition agreement with a much larger industry peer.
Chinook said it had entered into a merger agreement with Novartis (NYSE: NVS) that values the smaller company at $3.2 billion. Under the terms of the agreement, Chinook shareholders will receive $40 per share in cash up front for their stock, and they'll also receive contingent value rights (CVRs) that will extend beyond the closing date of the merger.
Chinook's lead product candidate is atrasentan, the rights to which it obtained from AbbVie (NYSE: ABBV) in early 2020. Over the past few years, Chinook has done research using atrasentan with patients suffering from various forms of kidney disease, advancing into stage 3 trials. The CVRs that Chinook shareholders would receive under the merger agreement will pay as much as $4 per share in additional future payments if atrasentan gets regulatory approvals for treating IgA nephropathy and focal segmental glomerulosclerosis.
The news is a positive for shareholders who participated in Chinook's reverse merger with Aduro Biotech in late 2020, as the stock has climbed steadily since then. For the much larger Novartis, the acquisition should help bolster an already impressive pipeline of candidate treatments.
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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. | Chinook's lead product candidate is atrasentan, the rights to which it obtained from AbbVie (NYSE: ABBV) in early 2020. However, the jump in the Chinese EV maker's stock was modest compared to the much larger move for Chinook Therapeutics (NASDAQ: KDNY), whose shares skyrocketed on news of an agreement to purchase the biotech specialist. Its range of nearly 470 miles is appealing to those who need to drive long distances on a single charge, while its high-voltage internal electrical system gives the G6 fast-charging capabilities that are increasingly important as more EVs hit the road. | Chinook's lead product candidate is atrasentan, the rights to which it obtained from AbbVie (NYSE: ABBV) in early 2020. However, the jump in the Chinese EV maker's stock was modest compared to the much larger move for Chinook Therapeutics (NASDAQ: KDNY), whose shares skyrocketed on news of an agreement to purchase the biotech specialist. There are plenty of automakers in China vying for supremacy in the fast-growing EV segment, and XPeng can't declare victory yet. | Chinook's lead product candidate is atrasentan, the rights to which it obtained from AbbVie (NYSE: ABBV) in early 2020. However, the jump in the Chinese EV maker's stock was modest compared to the much larger move for Chinook Therapeutics (NASDAQ: KDNY), whose shares skyrocketed on news of an agreement to purchase the biotech specialist. The Chinese electric vehicle maker has seen its stock fall sharply over the past year as competition in the industry heats up, but investors were pleased to see a new vehicle model get a positive reception from consumers over the weekend. | Chinook's lead product candidate is atrasentan, the rights to which it obtained from AbbVie (NYSE: ABBV) in early 2020. Electric vehicles (EVs) remain an important driver of economic growth, and XPeng (NYSE: XPEV) reported that a new model got off to a roaring start over the weekend. However, the jump in the Chinese EV maker's stock was modest compared to the much larger move for Chinook Therapeutics (NASDAQ: KDNY), whose shares skyrocketed on news of an agreement to purchase the biotech specialist. |
22485.0 | 2023-06-11 00:00:00 UTC | 7 Top Blue-Chip Stocks to Buy in June 2023 | ABBV | https://www.nasdaq.com/articles/7-top-blue-chip-stocks-to-buy-in-june-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The market probably feels like the movie Groundhog’s Day for many investors. The major indexes continue to trade within a range, which is frustrating both bulls and bears. And with the market entering what is usually a quieter period, it may stay this way until Labor Day. However, one key strategy for profiting in a market like this is to look for some top blue-chip stocks to buy.
Blue-chip stocks are large-cap companies that offer investors predictable revenue and earnings growth. Many of these stocks pay dividends which helps boost the total return you get for many stocks. The benefit of owning blue-chip stocks is their dependability. These stocks can be foundational stocks that help you manage risk in your portfolio. In fact, here are seven top blue-chip stocks to consider now.
KMI Kinder Morgan $17.03
VZ Verizon $35.47
ABBV AbbVie $138.18
PFE Pfizer $38.97
DE Deere $378.87
JNJ Johnson & Johnson $160.01
BAC Bank of America $29.27
Kinder Morgan (KMI)
Source: Shutterstock
The first among the top blue-chip stocks to buy is Kinder Morgan (NYSE:KMI). The company owns and controls 83,000 miles of pipeline and 143 terminals throughout North America.
Oil prices have been mostly muted since Saudi Arabia unilaterally announced it would cut an additional million barrels of oil production starting in July. But this shouldn’t affect Kinder Morgan at all. The company’s business model relies on long-term contracts that come with regulated rate structures. The bottom line for investors is that over 90% of the company’s cash flows are not exposed to commodity prices.
You have to be careful not to confuse a stock’s price with its value. KMI stock is trading under $20, but in this case, it also looks to be trading at a discount. Its forward P/E ratio is 15.8x earnings. And analysts give the stock an upside of 19.7%. Plus, investors get a company that is a cash-generating machine. And that machine gets put to use to grow the company’s dividend which currently has a yield of 6.5%.
Verizon (VZ)
Source: Shutterstock
Next up on this list of top blue-chip stocks to own is Verizon Communications (NYSE:VZ). The company is in a very competitive business with low margins and little to differentiate one company from another. The continued expansion of 5G will continue for the rest of the decade. And that means that Verizon will have revenue and earnings. Sure, Verizon isn’t the only game in town when it comes to wireless carriers, but it has an established user base that provides sticky revenue.
Analysts are projecting earnings growth of 0.21% this year. But slower growth does not mean the stock is failing. Quite the opposite. And that turns our attention to the company’s dividend which has a yield of over 7%. When you combine that with a P/E ratio of around 6.8x, you can see why VZ stock is a compelling choice for income-oriented investors.
AbbVie (ABBV)
Source: Shutterstock
There’s also AbbVie (NYSE:ABBV). While the stock is down about 15% in 2023, there’s still a lot to like here. Granted, its signature drug Humira is facing biosimilar competition, which has been a negative for the ABBV stock. However, the company has other drugs such as Rinvoq and Skyrizi that are helping to pick up the slack. And in the first quarter, both drugs posted revenue gains of over 40%. Add to this an expansive pipeline and AbbVie will continue to deliver for investors for years to come. Investors that are looking to scoop up ABBV shares near their 52-week low will also benefit from a juicy yield of 4.3% yield.
Pfizer (PFE)
Source: Shutterstock
Another top blue-chip stock to consider is Pfizer (NYSE:PFE). Lately, the company has been fueled by investor sentiment on the way up and on the way down. However, if you strip away that noise, you see a company that is positioning itself for whatever comes next. It recently acquired Seagen (NASDAQ:SGEN). This will add to Pfizer’s existing pipeline of oncology drugs. In fact, the company believes that Seagen will contribute $10 billion in revenue by 2030.
Pfizer also has the financial resources to be a leader in emerging fields like gene editing and precision medicine. And PFE stock is also objectively undervalued. It trades at just 7.7x earnings and has a consensus upside of about 21%. Plus, it pays a dividend with a 4.19% yield.
Deere (DE)
Source: Shutterstock
When it comes to top blue-chip stocks, like Deere (NYSE:DE), earnings show there is strong demand for farming equipment. Not only is that demand fueling revenue and earnings, but it’s also boosting its free cash flow projections in 2023. Beyond that, Deere is becoming a tech stock that is on the cutting edge of areas such as robotics and autonomous vehicles that are well suited for making agricultural tasks more efficient.
Some skeptics will say that the stock is priced to perfection and that stagnant earnings in 2024 will stunt the company’s growth. But trading for around 11x forward earnings and a price target that suggests a 16% upside, DE stock is offering value even as it trades in the middle of its 52-week range.
Johnson & Johnson (JNJ)
Source: Shutterstock
Johnson & Johnson (NYSE:JNJ) stock is up 30% in the last five years, but it’s down 10% in the last year. All as investors exercise caution with the company’s long-standing lawsuit regarding its talc powder. The company also announced plans to spin off its consumer products division in 2023.
But with the company’s $9 billion settlement of the talc lawsuit in addition to the company’s spinoff of Kenvue (NYSE:KVUE) has quieted some of the noise. Plus, Johnson & Johnson delivered its first quarter earnings which is alleviating concerns about falling revenue now that Stelara faces biosimilar competition.
All of this is allowing investors to focus on the value of JNJ stock. It does carry a hefty current 33x P/E ratio. But that drops to 14x when you look at forward earnings. And Johnson & Johnson is another dividend king on this list with a dividend that the company has been increasing for the last 62 years and is currently yielding 2.98%.
Bank of America (BAC)
Source: Shutterstock
No list of top blue-chip stocks would be complete without at least one Warren Buffett stock. That’s not the only reason to consider Bank of America (NYSE:BAC), but it doesn’t hurt. At a time when investors are increasingly concerned about the security of their deposits, Bank of America is a safe port for consumer dollars and investor capital.
The bank’s revenue and earnings were up sharply in the first quarter of 2023. Skeptics could say that was logical with concerns over regional banks. But if you look back just two quarters, you can see that the bank was showing year-over-year increases in both revenue and earnings. So, a more nuanced look might say this is a continuation of an existing trend. BAC stock is inexpensive at around 8.8x earnings. That’s probably appealing to Buffett who owns 13% of the bank’s stock. The billionaire’s hedge fund also bought 22.8 million more shares in the first quarter.
On the date of publication, Chris Markoch 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.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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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. | KMI Kinder Morgan $17.03 VZ Verizon $35.47 ABBV AbbVie $138.18 PFE Pfizer $38.97 DE Deere $378.87 JNJ Johnson & Johnson $160.01 BAC Bank of America $29.27 Kinder Morgan (KMI) Source: Shutterstock The first among the top blue-chip stocks to buy is Kinder Morgan (NYSE:KMI). AbbVie (ABBV) Source: Shutterstock There’s also AbbVie (NYSE:ABBV). Granted, its signature drug Humira is facing biosimilar competition, which has been a negative for the ABBV stock. | KMI Kinder Morgan $17.03 VZ Verizon $35.47 ABBV AbbVie $138.18 PFE Pfizer $38.97 DE Deere $378.87 JNJ Johnson & Johnson $160.01 BAC Bank of America $29.27 Kinder Morgan (KMI) Source: Shutterstock The first among the top blue-chip stocks to buy is Kinder Morgan (NYSE:KMI). AbbVie (ABBV) Source: Shutterstock There’s also AbbVie (NYSE:ABBV). Granted, its signature drug Humira is facing biosimilar competition, which has been a negative for the ABBV stock. | KMI Kinder Morgan $17.03 VZ Verizon $35.47 ABBV AbbVie $138.18 PFE Pfizer $38.97 DE Deere $378.87 JNJ Johnson & Johnson $160.01 BAC Bank of America $29.27 Kinder Morgan (KMI) Source: Shutterstock The first among the top blue-chip stocks to buy is Kinder Morgan (NYSE:KMI). AbbVie (ABBV) Source: Shutterstock There’s also AbbVie (NYSE:ABBV). Granted, its signature drug Humira is facing biosimilar competition, which has been a negative for the ABBV stock. | KMI Kinder Morgan $17.03 VZ Verizon $35.47 ABBV AbbVie $138.18 PFE Pfizer $38.97 DE Deere $378.87 JNJ Johnson & Johnson $160.01 BAC Bank of America $29.27 Kinder Morgan (KMI) Source: Shutterstock The first among the top blue-chip stocks to buy is Kinder Morgan (NYSE:KMI). AbbVie (ABBV) Source: Shutterstock There’s also AbbVie (NYSE:ABBV). Granted, its signature drug Humira is facing biosimilar competition, which has been a negative for the ABBV stock. |
22486.0 | 2023-06-11 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-38 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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. |
22487.0 | 2023-06-10 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-37 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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. |
22488.0 | 2023-06-10 00:00:00 UTC | Better Long-Term Buy: AbbVie or Novo Nordisk? | ABBV | https://www.nasdaq.com/articles/better-long-term-buy%3A-abbvie-or-novo-nordisk | nan | nan | Pharmaceutical companies Novo Nordisk (NYSE: NVO) and AbbVie (NYSE: ABBV) seem to be headed in separate directions.
Denmark-based Novo Nordisk, thanks to growing sales of diabetes drug Ozempic and obesity therapy Wegovy, is predicting sales to grow between 24% to 30% and operating profit to rise 28% to 34% this year.
AbbVie, on the other hand, thanks to the loss of patent protection for immunology blockbuster Humira, has forecasted 2023 adjusted earnings per share (EPS) to drop by 20% to 23%, from 2022 levels. Both stocks rewarded investors over the past decade, but for the long term, which is a better buy right now? Let's find out.
NVO data by YCharts.
Novo Nordisk's earnings growth is just beginning
Novo Nordisk's shares are up nearly 18% so far this year. The Danish pharmaceutical company reported 176.9 billion Danish kroners (roughly $25.4 billion) in revenue in 2022, up 25.7%, and earnings per share (EPS) of 24.44 kroners (roughly $3.51), up 18% from the previous year.
The future looks strong for Novo Nordisk, as weight-loss therapy Wegovy and diabetes drug Ozempic are selling so well, the company has had difficulty keeping up with demand.
The one problem I see with Novo Nordisk is that it seems its growth may already be priced into the stock, as it is trading at roughly 41 times earnings and with a forward price-to-earnings ratio of 31 times earnings.
The company has a relatively large pipeline, with 31 programs, which is good because it has seven products that face patent extinction this decade.
Novo Nordisk also has a semi-annual dividend, with one larger dividend and one smaller dividend. It raised the larger one this year by 16% to $1.19, delivering a yield of around 0.80%.
AbbVie will survive, even thrive, after Humira
AbbVie's future has long been tied up with the immunology drug Humira -- the world's top-selling drug, other than COVID-19 vaccines, since 2014. That's a long time at the top of the hill, and now that the drug is facing biosimilar competition in the United States, doom is being forecasted for AbbVie. The therapy was responsible for 36% of the Chicago company's $58 billion in revenue last year.
The latest salvo is that Mark Cuban's pharmaceutical start-up is combining with Coherus Biosciences to produce Yusimry, a Humira biosimilar that costs 85% less than Humira. It will be one of more than 10 Humira biosimilars that are expected to launch this year.
AbbVie stock is down nearly 15% so far this year, thanks in part to an underwhelming first-quarter report. With Humira revenue cratering, what is the company expected to do?
Exactly what AstraZeneca did, beginning in 2012, when three of its blockbuster drugs -- heartburn and acid reflux therapy Nexium, antipsychotic therapy Seroquel, and cholesterol drug Crestor -- all lost patent protection in a four-year period. The trio was responsible for 46% of the British pharmaceutical company's revenue in 2012.
AstraZeneca used its profits to develop its broad pipeline. Over the past 10 years, its share price has increased by 190% while its annual revenue has grown by 72%. In the first quarter, Nexium, which had been the world's top-selling drug with $5.6 billion in sales in 2012, did only $1.28 billion in sales last year, but so what? AstraZeneca had 13 other drugs that did $1 billion or more in sales, led by non-small cell lung cancer therapy Tagrisso, with $5.4 billion in revenue.
AbbVie already has a huge pipeline with 90 programs. The company has two immunology drugs, Skyrizi and Rinvoq, that combined for $6.5 billion in sales last year, and they're relatively new and adding indications every year. AbbVie predicts more than $15 billion in combined sales for the two in 2025. It also had, not counting any of its immunology stars, seven other therapies with $1 billion or more in annual sales. It's easy to see why the company said it expects to return to revenue growth within three years.
In the meantime, AbbVie is trading for only 12 times forward earnings. Investors could swoop in now, and take advantage of an above-average quarterly dividend that yields around 4.2% and has grown for 51 consecutive years, including a 5% bump this year to $1.48. Counting its time as part of Abbott Laboratories, AbbVie is a Dividend King. Since AbbVie's spinoff in 2013, it has increased its dividend by 270%.
Not a simple choice
Novo Nordisk's growth in the next few years is nearly guaranteed, while AbbVie stock is likely to take its lumps.
However, the fundamental strength of AbbVie and its huge pipeline make it a good stock to own now, at its current price, if you see the stock as a long-term buy. The company's strong dividend will reward patient investors in the meantime. However, there is some short-term risk involved, particularly if the company's second-quarter numbers disappoint. Novo Nordisk is likely to see its shares rise, particularly as Ozempic's and Wegovy's sales increase. However, its smaller pipeline and smaller dividend, and future patent expirations -- along with its higher valuation -- make it less of a long-term buy for me.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends 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. | AbbVie, on the other hand, thanks to the loss of patent protection for immunology blockbuster Humira, has forecasted 2023 adjusted earnings per share (EPS) to drop by 20% to 23%, from 2022 levels. That's a long time at the top of the hill, and now that the drug is facing biosimilar competition in the United States, doom is being forecasted for AbbVie. Pharmaceutical companies Novo Nordisk (NYSE: NVO) and AbbVie (NYSE: ABBV) seem to be headed in separate directions. | Pharmaceutical companies Novo Nordisk (NYSE: NVO) and AbbVie (NYSE: ABBV) seem to be headed in separate directions. AbbVie, on the other hand, thanks to the loss of patent protection for immunology blockbuster Humira, has forecasted 2023 adjusted earnings per share (EPS) to drop by 20% to 23%, from 2022 levels. AbbVie will survive, even thrive, after Humira AbbVie's future has long been tied up with the immunology drug Humira -- the world's top-selling drug, other than COVID-19 vaccines, since 2014. | Pharmaceutical companies Novo Nordisk (NYSE: NVO) and AbbVie (NYSE: ABBV) seem to be headed in separate directions. AbbVie, on the other hand, thanks to the loss of patent protection for immunology blockbuster Humira, has forecasted 2023 adjusted earnings per share (EPS) to drop by 20% to 23%, from 2022 levels. AbbVie will survive, even thrive, after Humira AbbVie's future has long been tied up with the immunology drug Humira -- the world's top-selling drug, other than COVID-19 vaccines, since 2014. | However, the fundamental strength of AbbVie and its huge pipeline make it a good stock to own now, at its current price, if you see the stock as a long-term buy. Pharmaceutical companies Novo Nordisk (NYSE: NVO) and AbbVie (NYSE: ABBV) seem to be headed in separate directions. AbbVie, on the other hand, thanks to the loss of patent protection for immunology blockbuster Humira, has forecasted 2023 adjusted earnings per share (EPS) to drop by 20% to 23%, from 2022 levels. |
22489.0 | 2023-06-09 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-2 | 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. |
22490.0 | 2023-06-09 00:00:00 UTC | Here is What to Know Beyond Why AbbVie Inc. (ABBV) is a Trending Stock | ABBV | https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-abbvie-inc.-abbv-is-a-trending-stock-3 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned -6.1% over the past month versus the Zacks S&P 500 composite's +4% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
Earnings Estimate Revisions
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 $2.93 per share, indicating a change of -13.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.97 points to a change of -20.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $11.04 indicates a change of +0.6% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $13.52 billion for the current quarter points to a year-over-year change of -7.3%. The $52.57 billion and $53.08 billion estimates for the current and next fiscal years indicate changes of -9.5% and +1%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $12.23 billion in the last reported quarter, representing a year-over-year change of -9.7%. EPS of $2.46 for the same period compares with $3.16 a year ago.
Compared to the Zacks Consensus Estimate of $12.08 billion, the reported revenues represent a surprise of +1.17%. The EPS surprise was +0.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $12.23 billion in the last reported quarter, representing a year-over-year change of -9.7%. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. For the current quarter, AbbVie is expected to post earnings of $2.93 per share, indicating a change of -13.1% from the year-ago quarter. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. |
22491.0 | 2023-06-09 00:00:00 UTC | U.S. government sets penalties on 43 drugs over price hikes | ABBV | https://www.nasdaq.com/articles/u.s.-government-sets-penalties-on-43-drugs-over-price-hikes | nan | nan | By Patrick Wingrove
June 9 (Reuters) - The Biden administration on Friday announced it would impose inflation penalties on 43 drugs for the third quarter of 2023, having fined 27 earlier this year, in a move it said would lower costs for older Americans by as much as $449 per dose.
Drugmakers hiked the price of these 43 drugs by more than the rate of inflation and are required to pay the difference of those medicines to Medicare, the federal health program for Americans over age 65.
"People taking 43 of these drugs could pay less (in coinsurance) to access these important treatments, starting July 1," Dr. Meena Seshamani, director for Medicare at the Centers for Medicare & Medicaid Services (CMS) told reporters.
The Medicare agency plans to send the first invoices to drugmakers in 2025 for the rebates owed to Medicare this year and for 2024.
President Joe Biden's signature Inflation Reduction Act (IRA) includes a provision that penalizes drugmakers for charging prices that rise faster than inflation for people on Medicare.
Biden announced in March that his administration would subject 27 drugs to inflation fines for the second quarter of this year. The new list of 43 replaces that selection for the third quarter of 2023.
The list of drugs facing the inflation penalty for the third quarter includes – for the second time – AbbVie's (ABBV.N) blockbuster arthritis drug Humira and Seagen's (SGEN.O) targeted cancer therapy Padcev, the White House said in a fact sheet.
(Reporting by Patrick Wingrove; Editing by Sonali Paul)
((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. | The list of drugs facing the inflation penalty for the third quarter includes – for the second time – AbbVie's (ABBV.N) blockbuster arthritis drug Humira and Seagen's (SGEN.O) targeted cancer therapy Padcev, the White House said in a fact sheet. By Patrick Wingrove June 9 (Reuters) - The Biden administration on Friday announced it would impose inflation penalties on 43 drugs for the third quarter of 2023, having fined 27 earlier this year, in a move it said would lower costs for older Americans by as much as $449 per dose. Drugmakers hiked the price of these 43 drugs by more than the rate of inflation and are required to pay the difference of those medicines to Medicare, the federal health program for Americans over age 65. | The list of drugs facing the inflation penalty for the third quarter includes – for the second time – AbbVie's (ABBV.N) blockbuster arthritis drug Humira and Seagen's (SGEN.O) targeted cancer therapy Padcev, the White House said in a fact sheet. By Patrick Wingrove June 9 (Reuters) - The Biden administration on Friday announced it would impose inflation penalties on 43 drugs for the third quarter of 2023, having fined 27 earlier this year, in a move it said would lower costs for older Americans by as much as $449 per dose. Biden announced in March that his administration would subject 27 drugs to inflation fines for the second quarter of this year. | The list of drugs facing the inflation penalty for the third quarter includes – for the second time – AbbVie's (ABBV.N) blockbuster arthritis drug Humira and Seagen's (SGEN.O) targeted cancer therapy Padcev, the White House said in a fact sheet. By Patrick Wingrove June 9 (Reuters) - The Biden administration on Friday announced it would impose inflation penalties on 43 drugs for the third quarter of 2023, having fined 27 earlier this year, in a move it said would lower costs for older Americans by as much as $449 per dose. President Joe Biden's signature Inflation Reduction Act (IRA) includes a provision that penalizes drugmakers for charging prices that rise faster than inflation for people on Medicare. | The list of drugs facing the inflation penalty for the third quarter includes – for the second time – AbbVie's (ABBV.N) blockbuster arthritis drug Humira and Seagen's (SGEN.O) targeted cancer therapy Padcev, the White House said in a fact sheet. By Patrick Wingrove June 9 (Reuters) - The Biden administration on Friday announced it would impose inflation penalties on 43 drugs for the third quarter of 2023, having fined 27 earlier this year, in a move it said would lower costs for older Americans by as much as $449 per dose. Drugmakers hiked the price of these 43 drugs by more than the rate of inflation and are required to pay the difference of those medicines to Medicare, the federal health program for Americans over age 65. |
22492.0 | 2023-06-08 00:00:00 UTC | Interesting ABBV Put And Call Options For July 28th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-july-28th | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $2.57. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $132.43 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $137.09/share today.
Because the $135.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.90% return on the cash commitment, or 13.90% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $2.05. If an investor was to purchase shares of ABBV stock at the current price level of $137.09/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.62% if the stock gets called away at the July 28th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.50% boost of extra return to the investor, or 10.92% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $137.09) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend 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. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $2.05. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 28th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. |
22493.0 | 2023-06-08 00:00:00 UTC | Interesting ABBV Put And Call Options For July 28th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-july-28th-0 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $2.57. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $132.43 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $137.09/share today.
Because the $135.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.90% return on the cash commitment, or 13.90% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $2.05. If an investor was to purchase shares of ABBV stock at the current price level of $137.09/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.62% if the stock gets called away at the July 28th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.50% boost of extra return to the investor, or 10.92% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $137.09) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
Also see:
Top Stocks Held By Cathie Wood
Funds Holding LMLB
Institutional Holders of BEMO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $2.05. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 28th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 28th expiration. |
22494.0 | 2023-06-08 00:00:00 UTC | First Trust Morningstar Dividend Leaders Index Fund Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/first-trust-morningstar-dividend-leaders-index-fund-experiences-big-outflow | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL) where we have detected an approximate $170.7 million dollar outflow -- that's a 3.6% decrease week over week (from 138,050,002 to 133,100,002). Among the largest underlying components of FDL, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Philip Morris International Inc (Symbol: PM) is up about 0.1%, and Altria Group Inc (Symbol: MO) is higher by about 0.3%. For a complete list of holdings, visit the FDL Holdings page » The chart below shows the one year price performance of FDL, versus its 200 day moving average:
Looking at the chart above, FDL's low point in its 52 week range is $32.10 per share, with $38.33 as the 52 week high point — that compares with a last trade of $34.43. 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 »
Also see:
Mortgage REITs Hedge Funds Are Selling
IRM Price Target
FFBC Dividend Growth Rate
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 FDL, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Philip Morris International Inc (Symbol: PM) is up about 0.1%, and Altria Group Inc (Symbol: MO) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL) where we have detected an approximate $170.7 million dollar outflow -- that's a 3.6% decrease week over week (from 138,050,002 to 133,100,002). 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 FDL, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Philip Morris International Inc (Symbol: PM) is up about 0.1%, and Altria Group Inc (Symbol: MO) is higher by about 0.3%. For a complete list of holdings, visit the FDL Holdings page » The chart below shows the one year price performance of FDL, versus its 200 day moving average: Looking at the chart above, FDL's low point in its 52 week range is $32.10 per share, with $38.33 as the 52 week high point — that compares with a last trade of $34.43. 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 FDL, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Philip Morris International Inc (Symbol: PM) is up about 0.1%, and Altria Group Inc (Symbol: MO) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL) where we have detected an approximate $170.7 million dollar outflow -- that's a 3.6% decrease week over week (from 138,050,002 to 133,100,002). For a complete list of holdings, visit the FDL Holdings page » The chart below shows the one year price performance of FDL, versus its 200 day moving average: Looking at the chart above, FDL's low point in its 52 week range is $32.10 per share, with $38.33 as the 52 week high point — that compares with a last trade of $34.43. | Among the largest underlying components of FDL, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Philip Morris International Inc (Symbol: PM) is up about 0.1%, and Altria Group Inc (Symbol: MO) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL) where we have detected an approximate $170.7 million dollar outflow -- that's a 3.6% decrease week over week (from 138,050,002 to 133,100,002). For a complete list of holdings, visit the FDL Holdings page » The chart below shows the one year price performance of FDL, versus its 200 day moving average: Looking at the chart above, FDL's low point in its 52 week range is $32.10 per share, with $38.33 as the 52 week high point — that compares with a last trade of $34.43. |
22495.0 | 2023-06-08 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-36 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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. |
22496.0 | 2023-06-08 00:00:00 UTC | Is ProShares S&P 500 Dividend Aristocrats ETF (NOBL) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-proshares-sp-500-dividend-aristocrats-etf-nobl-a-strong-etf-right-now-7 | nan | nan | A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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 $11.23 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. NOBL is managed by Proshares. Before fees and expenses, NOBL seeks to match the performance of the S&P 500 DividendAristocrats Index.
The S&P 500 Dividend Aristocrats Index targets companies that are currently members of the S&P 500, have increased dividend payments each year for at least 25 years & meet certain market capitalization & liquidity requirements.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.35%.
NOBL's 12-month trailing dividend yield is 1.91%.
Performance and Risk
Year-to-date, the ProShares S&P 500 Dividend Aristocrats ETF return is roughly 2.20% so far, and is up about 1.10% over the last 12 months (as of 06/08/2023). NOBL has traded between $79.96 and $95.15 in this past 52-week period.
The fund has a beta of 0.89 and standard deviation of 16.86% for the trailing three-year period, which makes NOBL a medium risk choice in this particular space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
ProShares S&P 500 Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $23.18 billion in assets, Vanguard Dividend Appreciation ETF has $66.79 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Abbott Laboratories (ABT) : Free Stock Analysis Report
Aflac Incorporated (AFL) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
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. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market. The fund has a beta of 0.89 and standard deviation of 16.86% for the trailing three-year period, which makes NOBL a medium risk choice in this particular space. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $23.18 billion in assets, Vanguard Dividend Appreciation ETF has $66.79 billion. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. |
22497.0 | 2023-06-07 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-1 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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. |
22498.0 | 2023-06-07 00:00:00 UTC | Vertex (VRTX) Stock Poised Well for Growth in 2023: Here's Why | ABBV | https://www.nasdaq.com/articles/vertex-vrtx-stock-poised-well-for-growth-in-2023%3A-heres-why | nan | nan | Vertex Pharmaceuticals Incorporated VRTX enjoys a dominant position in the cystic fibrosis (CF) market. Vertex’s CF sales continue to grow, driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups are driving Trikafta/Kaftrio sales higher, a trend expected to continue this year.
While CF remains the main area of focus, Vertex is also developing treatments for sickle cell disease (SCD), beta thalassemia (TDT), acute and neuropathic pain, APOL1-mediated kidney disease (AMKD), type I diabetes, and alpha-1 antitrypsin (AAT) deficiency. It has earlier-stage programs in diseases such as muscular dystrophies.
This year is expected to be a catalyst-rich year for Vertex. Multiple clinical milestones are expected in 2023 and 2024, both in its CF and non-CF portfolio.
In the year so far, the stock has risen 19.5% against the industry’s 6.2% fall.
Image Source: Zacks Investment Research
Vertex is evaluating its medicines in younger patient populations and aims to have small-molecule treatments for most people with CF. Additionally, Vertex is also developing a mRNA therapeutic, VX-522, in partnership with Moderna MRNA for approximately 5,000 people with CF who cannot benefit from its CFTR modulators. Vertex and Moderna are conducting a single ascending dose (SAD) clinical study on VX-522, after the FDA cleared the investigational new drug application in December 2022. Vertex and Moderna expect to complete the SAD and initiate the multiple ascending dose study this year.
Vertex is also conducting two pivotal phase III studies, evaluating a triple combination of vanzacaftor/VX-561, a CFTR potentiator, deutivacaftor/VX-121, a CFTR corrector, and tezacaftor in CF patients 12 years and older. This new once-a-day combination medicine has the potential for enhanced patient benefit than Trikafta patients and can potentially treat CF patients who have discontinued Trikafta or other Vertex CF medicines. The studies are expected to be completed by the end of 2023. Vertex also initiated the pivotal development of vanzacaftor/tezacaftor/deutivacaftor in patients 6 to 11 years old
With AbbVie ABBV discontinuing its CF program recently, we believe, Vertex’s position is further strengthened in this market. AbbVie announced on the first-quarter conference call that it is discontinuing its cystic fibrosis program. The company analyzed data from an ongoing proof-of-concept study evaluating a triple combination therapy in CF. The results from the interim analysis did not meet AbbVie’s internal criteria for advancing the CF program, which prompted AbbVie to end the CF program.
While Vertex’s main focus is on the development and strengthening of its CF franchise, the company also has a rapidly advancing mid-to-late stage pipeline in eight disease areas beyond CF like acute pain, SCD, TDT, AMKD, AAT deficiency and cell therapy for type I diabetes. Many of these candidates represent multibillion-dollar opportunities. Six of the programs are past the proof-of-concept stage.
Vertex has co-developed a gene-editing treatment, exa-cel (formerly CTX001), in partnership with CRISPR Therapeutics CRSP, for two devastating diseases — SCD and TDT. Vertex is gearing up for the next commercial launch opportunity for exa-cel in SCD and TDT, with exa-cel’s BLA filing with the FDA now complete for both indications. Vertex expects the FDA to grant a priority review to the BLA. Vertex and CRISPR Therapeutics’ submissions on exa-cel in Europe and the United Kingdom are also under review.
Among its other CF programs, investors are paying a lot of attention to pain asset VX-548, which, they believe, has blockbuster potential. VX-548, a novel first-in-class, non-opioid NaV1.8 inhibitor, is being evaluated in two pivotal phase III acute pain studies, one following bunionectomy surgery and the other following abdominoplasty surgery. The pivotal program is expected to be completed in late 2023 or early 2024. Vertex initiated a phase II study of VX-548 in diabetic peripheral neuropathy, a form of peripheral neuropathic pain, in the fourth quarter of 2022. The neuropathic pain study is also expected to be completed in late 2023 or early 2024.
Vertex currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
CRISPR Therapeutics AG (CRSP) : 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. | Vertex also initiated the pivotal development of vanzacaftor/tezacaftor/deutivacaftor in patients 6 to 11 years old With AbbVie ABBV discontinuing its CF program recently, we believe, Vertex’s position is further strengthened in this market. AbbVie announced on the first-quarter conference call that it is discontinuing its cystic fibrosis program. The results from the interim analysis did not meet AbbVie’s internal criteria for advancing the CF program, which prompted AbbVie to end the CF program. | Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. Vertex also initiated the pivotal development of vanzacaftor/tezacaftor/deutivacaftor in patients 6 to 11 years old With AbbVie ABBV discontinuing its CF program recently, we believe, Vertex’s position is further strengthened in this market. AbbVie announced on the first-quarter conference call that it is discontinuing its cystic fibrosis program. | Vertex also initiated the pivotal development of vanzacaftor/tezacaftor/deutivacaftor in patients 6 to 11 years old With AbbVie ABBV discontinuing its CF program recently, we believe, Vertex’s position is further strengthened in this market. Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie announced on the first-quarter conference call that it is discontinuing its cystic fibrosis program. | Vertex also initiated the pivotal development of vanzacaftor/tezacaftor/deutivacaftor in patients 6 to 11 years old With AbbVie ABBV discontinuing its CF program recently, we believe, Vertex’s position is further strengthened in this market. AbbVie announced on the first-quarter conference call that it is discontinuing its cystic fibrosis program. The results from the interim analysis did not meet AbbVie’s internal criteria for advancing the CF program, which prompted AbbVie to end the CF program. |
22499.0 | 2023-06-06 00:00:00 UTC | $300 a Month in These 3 Stocks Could Make You a Millionaire by Retirement | ABBV | https://www.nasdaq.com/articles/%24300-a-month-in-these-3-stocks-could-make-you-a-millionaire-by-retirement-5 | nan | nan | What is the link between the theoretical physicist Albert Einstein and investing? At first blush, newer investors may not be aware there was such a link between the two topics of discussion.
Einstein is sometimes attributed with saying: "Compound interest is the eighth wonder of the world. He who understands it, earns it ... He who doesn't, pays it." Even if he didn't say it, there's no arguing with the concept. Investing as little as $300 a month into the stock market at its historical annual total return rate of 10% for 35 years is enough to start from nothing and become a millionaire. Here are three stocks to consider steadily investing $100 a month into that could put you well on your way to becoming a millionaire in just over three decades.
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1. AbbVie: A Dividend King with the potential for a promising future
AbbVie (NYSE: ABBV) is best known for its smash-hit immunology therapy Humira. Despite the slew of biosimilar competition that the medicine is facing in 2023, the consensus is that Humira will still haul in $13.5 billion in revenue for the pharmaceutical company for the year. With 10 other products that are set to generate at least $1 billion each in sales, it's safe to say that AbbVie's product portfolio is robust.
The company's commitment to innovation has paid off for shareholders over the past five years. A $10,000 investment in the stock would now be valued at $18,000 with dividends reinvested-- a 12% compound annual growth rate. For context, that's a bit more than the $17,000 that an investment in the S&P 500 index would be worth today with dividends reinvested.
And given that AbbVie spent $7.1 billion on research and development to advance clinical trials for more than 90 indications in 2022, the years ahead could be just as bright. If this wasn't enough, the company is also a Dividend King with a well-covered 4.4% dividend yield -- much more than the S&P 500 index's 1.6% yield.
Income investors seeking moderate capital appreciation as well can add shares of AbbVie at a forward price-to-earnings (P/E) ratio of 12.2. That's just below the drug manufacturers industry average forward P/E ratio of about 12.9. In my opinion, that makes the stock a solid value at the current price of about $137.
2. Air Products & Chemicals: Selling inputs into products we can't live without
You may not realize it, but Air Products & Chemicals' (NYSE: APD) gases play a key role as inputs into a variety of commonly used products, such as beer, gasoline, medicine, and smartphones/tablets/laptops. Because of its critical nature to our everyday lives, a $10,000 investment in this company made just five years ago would now be worth $19,000 with dividends reinvested.
Looking ahead, the demand for Air Products & Chemicals' industrial gases, such as hydrogen, oxygen, and carbon dioxide, is sure to grow along with the demand for consumer products. This is why analysts believe the company's earnings will rise by 9.4% annually over the next five years. Growth in profits and a manageable dividend payout ratio are the reasons for my confidence that Air Products & Chemicals can build on its 41-year dividend growth streak.
Investors can scoop up shares of the stock and its 2.6% dividend yield at a forward P/E ratio of 22. While this is a significant premium to the specialty chemicals industry average forward P/E ratio of about 16, it's arguably justified by Air Products & Chemicals' superb quality as a business.
3. PepsiCo: A juggernaut of the consumer staples sector
PepsiCo (NASDAQ: PEP) is arguably the most well-balanced company within the consumer staples sector. Unlike Coca-Cola (NYSE: KO), which focuses purely on beverages, the former's product portfolio includes numerous billion-dollar brands across both the beverage and food and snack categories. PepsiCo's most successful brands include the sports drink Gatorade, Lay's potato chips, and Aquafina bottled water.
This explains how a $10,000 investment made in the stock five years ago would now be worth $21,000 with dividends reinvested. As the company completes bolt-on acquisitions and the global population continues to increase each year, its revenue and earnings should also grow. Analysts believe that PepsiCo's earnings will climb by 7.8% each year through the next five years.
The company's steady earnings growth potential and a sustainable dividend payout ratio are why I am confident that it can extend its status as a Dividend King in the years to come. Dividend growth investors can pick up shares of PepsiCo and its 2.8% dividend yield at a forward P/E ratio of 23. This is only slightly above the non-alcoholic beverages industry average forward P/E ratio of 21.9.
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Kody Kester has positions in AbbVie, Air Products And Chemicals, Coca-Cola, and PepsiCo. 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: A Dividend King with the potential for a promising future AbbVie (NYSE: ABBV) is best known for its smash-hit immunology therapy Humira. With 10 other products that are set to generate at least $1 billion each in sales, it's safe to say that AbbVie's product portfolio is robust. And given that AbbVie spent $7.1 billion on research and development to advance clinical trials for more than 90 indications in 2022, the years ahead could be just as bright. | AbbVie: A Dividend King with the potential for a promising future AbbVie (NYSE: ABBV) is best known for its smash-hit immunology therapy Humira. With 10 other products that are set to generate at least $1 billion each in sales, it's safe to say that AbbVie's product portfolio is robust. And given that AbbVie spent $7.1 billion on research and development to advance clinical trials for more than 90 indications in 2022, the years ahead could be just as bright. | See the 10 stocks *Stock Advisor returns as of May 30, 2023 Kody Kester has positions in AbbVie, Air Products And Chemicals, Coca-Cola, and PepsiCo. AbbVie: A Dividend King with the potential for a promising future AbbVie (NYSE: ABBV) is best known for its smash-hit immunology therapy Humira. With 10 other products that are set to generate at least $1 billion each in sales, it's safe to say that AbbVie's product portfolio is robust. | AbbVie: A Dividend King with the potential for a promising future AbbVie (NYSE: ABBV) is best known for its smash-hit immunology therapy Humira. With 10 other products that are set to generate at least $1 billion each in sales, it's safe to say that AbbVie's product portfolio is robust. And given that AbbVie spent $7.1 billion on research and development to advance clinical trials for more than 90 indications in 2022, the years ahead could be just as bright. |
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