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22500.0 | 2023-06-06 00:00:00 UTC | IBM, CVX, or ABBV: Which Dividend Aristocrat Stock is the Most Compelling Pick? | ABBV | https://www.nasdaq.com/articles/ibm-cvx-or-abbv%3A-which-dividend-aristocrat-stock-is-the-most-compelling-pick | nan | nan | During these uncertain times, investors seek reliable dividend-paying companies that can generate stable income. Dividend aristocrats are companies that have increased their dividends for at least 25 consecutive years and are preferred by investors looking for passive income for their ability to build wealth over time. Using TipRanks’ Stock Comparison Tool, we placed IBM (NYSE:IBM), Chevron (NYSE:CVX), and AbbVie (NYSE:ABBV) against each other to pick the most attractive dividend aristocrat.
IBM (NYSE:IBM)
Earlier this year, tech giant IBM announced a less than 1% hike in its quarterly dividend to $1.66 per share, payable June 10, 2023, to stockholders of record as of May 10, 2023. This hike marks the 28th consecutive year of dividend increase for the company. IBM has been paying quarterly dividends since 1916. With the latest hike, IBM’s forward dividend yield stands at 5%, which is well above the sector average of 1.03%.
IBM’s weak financial performance over the past five years has been a matter of concern for several investors. That said, the company is taking several measures to reduce costs and improve its profitability. Also, it is focusing on growth prospects in hybrid cloud and artificial intelligence (AI).
It expects to generate about $10.5 billion in free cash flow this year, reflecting an increase of more than $1 billion from last year.
Is IBM Stock a Good Buy?
Last month, BMO Capital analyst Keith Bachman and an analyst at Bernstein reiterated a Hold rating on IBM stock, with both analysts having a price target of $145.
Overall, Wall Street’s Moderate Buy consensus rating on IBM is based on four Buys and five Holds. The average price target of $146.56 implies 10.5% upside.
Chevron (NYSE:CVX)
Integrated oil and gas giant Chevron made huge profits last year, thanks to high energy prices. The company generated free cash flow of $37.6 billion last year and distributed $11 billion in dividends. Earlier this year, the company raised its quarterly dividend by 6% to $1.51 per share. This made 2023 the 36th consecutive year in which Chevron raised its dividends. Chevron offers a dividend yield of nearly 4%.
It is worth noting that Chevron has consistently raised its dividends despite the highly cyclical nature of the oil sector, thanks to its fortress balance sheet. In Q1 2023, the company’s shareholder distributions increased 65% year-over-year to about $6.6 billion (including dividends of $2.9 billion and share repurchases of $3.75 billion.)
IS CVX Stock a Buy, Hold, or Sell?
Last week, RBC Capital analyst Biraj Borkhataria upgraded Chevron from a Hold to Buy and raised the price target from $165 to $180, saying that the PDC Energy acquisition re-rates the energy major's free cash flow yield higher.
While the analyst expects the macro environment to remain volatile, he believes that “weaker end product demand and OPEC+ managing the oil market leaves CVX’s upstream heavy weighting well-placed.”
Further, Borkhataria thinks that Chevron has the ability to be defensive in difficult times due to its strong balance sheet and commitment to remain disciplined through organic and inorganic activity.
With 10 Buys and nine Holds, Chevron scores a Moderate Buy consensus rating. The average price target of $188.58 implies 21.3% upside.
AbbVie (NYSE:ABBV)
Pharmaceutical company AbbVie’s Q1 2023 performance, particularly the impact of biosimilars on blockbuster immunology drug Humira’s sales, has hurt investor sentiment about the stock. However, AbbVie is confident about the growth potential of newer immunology drugs Skyrizi and Rinvoq and the long-term potential of its overall pipeline.
This year, the company expects to generate an adjusted free cash flow of nearly $19 billion, net of $1.4 billion in Skyrizi royalty payments. AbbVie expects its solid cash flows to support its dividends and debt repayment of $4 billion in 2023.
AbbVie has increased its dividend for 51 consecutive years [including the years it was part of Abbott Laboratories (ABT)]. According to the company, which currently pays a quarterly dividend of $1.48 per share, it has increased its dividends by more than 270% since becoming an independent entity in 2013. The company offers an attractive dividend yield of 4.3%.
What is the Price Target for ABBV Stock?
Last week, SVB analyst David Risinger reiterated a Hold rating on AbbVie following the news that Coherus Biosciences (CHRS) will begin selling its Humira biosimilar on July 1 at a list price that is 85% below Humira’s price.
Moreover, Mark Cuban Cost Plus Drug Company announced that it will offer the Humira biosimilar directly to consumers at 92% below Humira’s list price. The analyst assumes that Mark Cuban Cost Plus Drug Company is purchasing the product from Coherus at a slight discount to its price. Risinger awaits further biosimilar market developments to assess the situation, with several biosimilars expected to be launched in the second half of the year.
Wall Street’s Moderate Buy consensus rating on AbbVie stock is based on four Buys and six Holds. The average price target of $165.88 suggests 21.2% upside.
Conclusion
Wall Street is cautiously optimistic about all the three dividend aristocrats discussed here. Currently, they see higher upside potential in Chevron and AbbVie stocks than IBM. Taking into account total returns (estimated stock price appreciation and dividend yield), Chevron and AbbVie could offer comparable gains over the next 12 months.
Disclosure
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 total returns (estimated stock price appreciation and dividend yield), Chevron and AbbVie could offer comparable gains over the next 12 months. Using TipRanks’ Stock Comparison Tool, we placed IBM (NYSE:IBM), Chevron (NYSE:CVX), and AbbVie (NYSE:ABBV) against each other to pick the most attractive dividend aristocrat. AbbVie (NYSE:ABBV) Pharmaceutical company AbbVie’s Q1 2023 performance, particularly the impact of biosimilars on blockbuster immunology drug Humira’s sales, has hurt investor sentiment about the stock. | Using TipRanks’ Stock Comparison Tool, we placed IBM (NYSE:IBM), Chevron (NYSE:CVX), and AbbVie (NYSE:ABBV) against each other to pick the most attractive dividend aristocrat. AbbVie (NYSE:ABBV) Pharmaceutical company AbbVie’s Q1 2023 performance, particularly the impact of biosimilars on blockbuster immunology drug Humira’s sales, has hurt investor sentiment about the stock. However, AbbVie is confident about the growth potential of newer immunology drugs Skyrizi and Rinvoq and the long-term potential of its overall pipeline. | Using TipRanks’ Stock Comparison Tool, we placed IBM (NYSE:IBM), Chevron (NYSE:CVX), and AbbVie (NYSE:ABBV) against each other to pick the most attractive dividend aristocrat. AbbVie (NYSE:ABBV) Pharmaceutical company AbbVie’s Q1 2023 performance, particularly the impact of biosimilars on blockbuster immunology drug Humira’s sales, has hurt investor sentiment about the stock. However, AbbVie is confident about the growth potential of newer immunology drugs Skyrizi and Rinvoq and the long-term potential of its overall pipeline. | Currently, they see higher upside potential in Chevron and AbbVie stocks than IBM. Using TipRanks’ Stock Comparison Tool, we placed IBM (NYSE:IBM), Chevron (NYSE:CVX), and AbbVie (NYSE:ABBV) against each other to pick the most attractive dividend aristocrat. AbbVie (NYSE:ABBV) Pharmaceutical company AbbVie’s Q1 2023 performance, particularly the impact of biosimilars on blockbuster immunology drug Humira’s sales, has hurt investor sentiment about the stock. |
22501.0 | 2023-06-05 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv-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.
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. |
22502.0 | 2023-06-04 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-34 | 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. |
22503.0 | 2023-06-03 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-33 | 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. |
22504.0 | 2023-06-02 00:00:00 UTC | Is Merck Stock A Better Pick Over ABBV? | ABBV | https://www.nasdaq.com/articles/is-merck-stock-a-better-pick-over-abbv | nan | nan | We believe that AbbVie stock (NYSE: ABBV) is a better pick than its industry peer, Merck stock (NYSE: MRK). MRK stock trades at a slightly higher valuation of 4.8x trailing revenues, compared to 4.2x for AbbVie, and this valuation gap will likely narrow over time in favor of AbbVie, in our view. Looking at stock returns, Merck stock has fared better than AbbVie, and both have underperformed the broader indices. While MRK is down 2% this year, ABBV is down 16%, and the S&P500 index is up 10%. There is more to the comparison, and in the sections below, we discuss why we believe ABBV stock will offer higher returns than MRK stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Merck vs. AbbVie: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. AbbVie’s Revenue Growth Is Better
AbbVie’s revenue growth has been better, with a 21.2% average annual growth rate in the last three years, compared to 15.1% for Merck.
AbbVie’s revenue growth has been buoyed by its Allergan acquisition in 2020.
The company is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered $21.2 billion in 2022 sales, reflecting a 3% y-o-y growth. Now, Humira’s biosimilar has already hit the European and U.S. markets, weighing on the company’s sales.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil.
However, if we look at the last twelve-month period, Merck fares better with sales growth of 7.2% vs. no growth for AbbVie.
Keytruda alone garnered $21 billion in sales in 2022, growing at a solid 22% y-o-y. Gardasil accounted for $7 billion in sales last year.
Merck saw a $6 billion contribution from sales of Lagevrio – its Covid-19 antiviral pill.
Our AbbVie Revenue Comparison and Merck Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Merck will see Lagevrio’s sales decline in 2023 and beyond. Some other drugs, including Januvia/Janumet, are also likely to see a slowdown in sales, with increased competition. However, Keytruda is expected to see continued market share gains in the near term, aiding the company’s top-line growth.
For AbbVie, more Humira biosimilars are expected to enter the U.S. this year, likely resulting in a significant drop in the drug’s sales over the coming years.
That said, AbbVie is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis, are gaining market share. For perspective, these three products garnered $13.0 billion in 2022, reflecting about 40% y-o-y growth.
Overall, 2023 will be a painful year for AbbVie, with a decline in sales due to Humira biosimilars, but it will likely return to growth from 2024 with its relatively new drugs gaining market share.
2. AbbVie Is More Profitable
AbbVie’s operating margin declined from 39% in 2019 to 31.2% in 2022, while Merck’s operating margin rose from 18.7% to 30.3% over this period.
Looking at the last twelve-month period, AbbVie’s operating margin of 28.5% fares marginally better than 27.7% for Merck.
AbbVie’s 2019 operating margin of 39% was higher due to an $890 million other income recorded in the financials.
Our AbbVie Operating Income Comparison and Merck Operating Income Comparison dashboards have more details.
AbbVie’s free cash flow margin of 42.7% is higher than 27.1% for Merck.
Looking at financial risk, Merck fares better with its 11.1% debt as a percentage of equity lower than 25.8% for AbbVie, and its 10.8% cash as a percentage of assets higher than 5.0% for the latter, implying that Merck has a better debt position and more cash cushion.
3. The Net of It All
We see that AbbVie has demonstrated better revenue growth, is more profitable, and is trading at a comparatively lower valuation multiple. On the other hand, Merck has a better debt position and cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe AbbVie is the better choice of the two, primarily because of its slightly lower valuation and promising new drugs. Also, it appears that the investors have already priced in Humira’s biosimilar risks.
If we compare the current valuation multiples to the historical averages, AbbVie fares better, with its stock currently trading at 4.2x trailing revenues vs. the last five-year average of 5.3x. In contrast, Merck stock trades at 4.8x trailing revenues vs. the last five-year average of 5.2x.
Our AbbVie (ABBV) Valuation Ratios Comparison and Merck (MRK) Valuation Ratios Comparison have more details.
While ABBV may outperform MRK in the next three years, it is helpful to see how AbbVie’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Given the higher inflation and the Fed raising interest rates, MRK has seen a 2% fall this year. But can it drop from here? 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 high-performance portfolio with a low downside instead? Here’s a reinforced value portfolio that has beaten the market consistently while limiting losses during periods of sharp market declines.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return -5% -2% 85%
ABBV Return -10% -16% 118%
S&P 500 Return 1% 10% 88%
Trefis Multi-Strategy Portfolio 1% 10% 247%
[1] Month-to-date and year-to-date as of 5/31/2023
[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. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Merck vs. AbbVie: Which Stock Is A Better Bet? Overall, 2023 will be a painful year for AbbVie, with a decline in sales due to Humira biosimilars, but it will likely return to growth from 2024 with its relatively new drugs gaining market share. Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe AbbVie is the better choice of the two, primarily because of its slightly lower valuation and promising new drugs. | Our AbbVie Operating Income Comparison and Merck Operating Income Comparison dashboards have more details. If we compare the current valuation multiples to the historical averages, AbbVie fares better, with its stock currently trading at 4.2x trailing revenues vs. the last five-year average of 5.3x. Our AbbVie (ABBV) Valuation Ratios Comparison and Merck (MRK) Valuation Ratios Comparison have more details. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Merck vs. AbbVie: Which Stock Is A Better Bet? AbbVie’s Revenue Growth Is Better AbbVie’s revenue growth has been better, with a 21.2% average annual growth rate in the last three years, compared to 15.1% for Merck. Overall, 2023 will be a painful year for AbbVie, with a decline in sales due to Humira biosimilars, but it will likely return to growth from 2024 with its relatively new drugs gaining market share. | There is more to the comparison, and in the sections below, we discuss why we believe ABBV stock will offer higher returns than MRK stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Merck vs. AbbVie: Which Stock Is A Better Bet? Overall, 2023 will be a painful year for AbbVie, with a decline in sales due to Humira biosimilars, but it will likely return to growth from 2024 with its relatively new drugs gaining market share. |
22505.0 | 2023-06-01 00:00:00 UTC | 7 Best Dividend Stocks to Buy Now in June 2023 | ABBV | https://www.nasdaq.com/articles/7-best-dividend-stocks-to-buy-now-in-june-2023 | nan | nan | Today, I provide my seven best dividend stocks to buy for the month of June. 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 Nike (NYSE: NKE) and Qualcomm (NASDAQ: QCOM). 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 1, 2023. The video was published on June 1, 2023.
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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. | Eric Cuka has positions in AbbVie, Bank of America, Deere, Nike, Schwab U.S. Dividend Equity ETF, and Tractor Supply. Dividend stocks are a great way to add balance and passive income to a long-term investing portfolio. Two of my favorite dividend stocks on the list are Nike (NYSE: NKE) and Qualcomm (NASDAQ: QCOM). | Eric Cuka has positions in AbbVie, Bank of America, Deere, Nike, Schwab U.S. Dividend Equity ETF, and Tractor Supply. The Motley Fool has positions in and recommends Bank of America, Nike, and Qualcomm. The Motley Fool recommends Deere, Tractor Supply, and Vici Properties and recommends the following options: long January 2025 $47.50 calls on Nike. | Eric Cuka has positions in AbbVie, Bank of America, Deere, Nike, Schwab U.S. Dividend Equity ETF, and Tractor Supply. Two of my favorite dividend stocks on the list are Nike (NYSE: NKE) and Qualcomm (NASDAQ: QCOM). 10 stocks we like better than Qualcomm When our analyst team has a stock tip, it can pay to listen. | Eric Cuka has positions in AbbVie, Bank of America, Deere, Nike, Schwab U.S. Dividend Equity ETF, and Tractor Supply. Today, I provide my seven best dividend stocks to buy for the month of June. The video was published on June 1, 2023. |
22506.0 | 2023-06-01 00:00:00 UTC | Why AbbVie and Amgen Are Moving Lower Today | ABBV | https://www.nasdaq.com/articles/why-abbvie-and-amgen-are-moving-lower-today | nan | nan | What happened
Shares of the immunology juggernaut AbbVie (NYSE: ABBV) were down by 4% on sky-high volume as of 11 a.m. ET Thursday. That's equivalent to a $7 billion drop in market capitalization.
What's spooking investors this morning? The big loss came after Coherus Biosciences announced a partnership with billionaire Mark Cuban's pharmaceuticals start-up -- known as the Mark Cuban Cost Plus Drug Company -- to sell a biosimilar (a generic biologic) version of AbbVie's flagship anti-inflammatory medication, Humira, at an 85% discount.
Coherus' biosimilar will be branded as Yusimry. The small-cap pharma company plans on launching the low-priced Humira knock-off in July, according to the press release.
So what
This news is also negatively impacting Amgen's (NASDAQ: AMGN) stock today. The biotech pioneer's shares fell by as much as 4% in the early portion of Thursday's trading session immediately following this announcement. Amgen's shares are likely sinking in response to this development for two interrelated reasons.
First up, the biotech launched the first U.S. Humira biosimilar, known as Amjevita, earlier this year. Wall Street was expecting big things from this drug. However, this bull thesis may no longer hold water, given that Coherus also drastically undercut Amjevita on price.
Secondly, the availability of a relatively cheap version of Humira could negatively impact Amgen's top-selling anti-inflammatory offering, Enbrel. The key reason is that Humira and Enbrel belong to the same class of drugs known as tumor necrosis factor (TNF) blockers.
Moreover, there are strong signs that Amjevita is already dimming Enbrel's earnings power due to its lower cost. So an even cheaper TNF blocker isn't great news for Amgen. Highlighting this point, Enbrel accounted for approximately 15.6% of the drugmaker's total sales in 2022. This drug is also one of the key components behind Amgen's above-average free-cash-flow generation over the last several years.
Now what
Are AbbVie or Amgen a strong buy on this latest dip? That's a tough call.
Prescribers have generally shown a preference for maintaining patients on branded biologics when possible. But a big part of this trend has been due to the relatively minor differences in price between branded biologics and their biosimilar rivals. However, this bold move by Coherus and Mark Cuban's pharmacy start-up may prove to be a game changer in terms of off-patent biologic drug pricing. As a result, it might be best to wait until more data is available before buying shares in either of these blue chip biotech 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. | The big loss came after Coherus Biosciences announced a partnership with billionaire Mark Cuban's pharmaceuticals start-up -- known as the Mark Cuban Cost Plus Drug Company -- to sell a biosimilar (a generic biologic) version of AbbVie's flagship anti-inflammatory medication, Humira, at an 85% discount. What happened Shares of the immunology juggernaut AbbVie (NYSE: ABBV) were down by 4% on sky-high volume as of 11 a.m. Now what Are AbbVie or Amgen a strong buy on this latest dip? | The big loss came after Coherus Biosciences announced a partnership with billionaire Mark Cuban's pharmaceuticals start-up -- known as the Mark Cuban Cost Plus Drug Company -- to sell a biosimilar (a generic biologic) version of AbbVie's flagship anti-inflammatory medication, Humira, at an 85% discount. What happened Shares of the immunology juggernaut AbbVie (NYSE: ABBV) were down by 4% on sky-high volume as of 11 a.m. Now what Are AbbVie or Amgen a strong buy on this latest dip? | The big loss came after Coherus Biosciences announced a partnership with billionaire Mark Cuban's pharmaceuticals start-up -- known as the Mark Cuban Cost Plus Drug Company -- to sell a biosimilar (a generic biologic) version of AbbVie's flagship anti-inflammatory medication, Humira, at an 85% discount. 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. What happened Shares of the immunology juggernaut AbbVie (NYSE: ABBV) were down by 4% on sky-high volume as of 11 a.m. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! What happened Shares of the immunology juggernaut AbbVie (NYSE: ABBV) were down by 4% on sky-high volume as of 11 a.m. The big loss came after Coherus Biosciences announced a partnership with billionaire Mark Cuban's pharmaceuticals start-up -- known as the Mark Cuban Cost Plus Drug Company -- to sell a biosimilar (a generic biologic) version of AbbVie's flagship anti-inflammatory medication, Humira, at an 85% discount. |
22507.0 | 2023-06-01 00:00:00 UTC | AstraZeneca (AZN) Discontinues Brazikumab Development | ABBV | https://www.nasdaq.com/articles/astrazeneca-azn-discontinues-brazikumab-development | nan | nan | AstraZeneca AZN announced the discontinuation of studies on its monoclonal antibody targeting IL23, brazikumab. The candidate was being studied for two indications, Crohn’s disease (CD) and ulcerative colitis (UC), under the inflammatory bowel disease (IBD) development program.
A phase IIb/III INTREPID study was evaluating brazikumab for treating CD and a phase II EXPEDITION study for treating UC. The program also included the respective open-label extension studies of the INTREPID and EXPEDITION studies.
AstraZeneca cited evolving competitive landscape and the delayed regulatory timeline of brazikumab as reasons for discontinuing the IBD development program on brazikumab. The company further elaborated that the impact of regulatory delays on brazikumab’s development was irrecoverable due to global events.
In the year so far, shares of AstraZeneca have climbed 7.7% against the industry’s 1.9% decline.
Image Source: Zacks Investment Research
We would like to remind the investors that in 2016, AstraZeneca first entered into a licensing agreement with Allergan, now part of AbbVie ABBV, for the global rights to brazikumab. However, in early 2020, AstraZeneca announced that it will regain the global rights to brazikumab from Allergan (now AbbVie).
The termination of the agreement with Allergan was due to Allergan’s decision to divest brazikumab in connection with its merger with AbbVie. AbbVie was contributing to the ongoing funding of brazikumab studies, but this funding will now end.
AstraZeneca’s another recent pipeline setback was the ALXN1840 program. The company announced that it is discontinuing the ALXN1840 program in Wilson Diseases based on the feedback from regulatory authorities which reviewed data from the phase III FoCus study and two phase II mechanistic studies.
AstraZeneca PLC Price and Consensus
AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote
Zacks Rank and Stocks to Consider
AstraZeneca currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the overall medical sector are Novartis NVS and Akero Therapeutics AKRO, 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.
In the past 90 days, the Zacks Consensus Estimate for Novartis’ 2023 earnings per share has increased from $6.52 to $6.67. In the year so far, shares of Novartis have increased 6.1%.
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 Akero Therapeutics’ 2023 loss per share has narrowed from $3.46 to $2.78. In the year so far, shares of Akero Therapeutics have fallen by 18.7%.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research We would like to remind the investors that in 2016, AstraZeneca first entered into a licensing agreement with Allergan, now part of AbbVie ABBV, for the global rights to brazikumab. However, in early 2020, AstraZeneca announced that it will regain the global rights to brazikumab from Allergan (now AbbVie). The termination of the agreement with Allergan was due to Allergan’s decision to divest brazikumab in connection with its merger with AbbVie. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research We would like to remind the investors that in 2016, AstraZeneca first entered into a licensing agreement with Allergan, now part of AbbVie ABBV, for the global rights to brazikumab. However, in early 2020, AstraZeneca announced that it will regain the global rights to brazikumab from Allergan (now AbbVie). | Image Source: Zacks Investment Research We would like to remind the investors that in 2016, AstraZeneca first entered into a licensing agreement with Allergan, now part of AbbVie ABBV, for the global rights to brazikumab. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO) : Free Stock Analysis Report To read this article on Zacks.com click here. However, in early 2020, AstraZeneca announced that it will regain the global rights to brazikumab from Allergan (now AbbVie). | Image Source: Zacks Investment Research We would like to remind the investors that in 2016, AstraZeneca first entered into a licensing agreement with Allergan, now part of AbbVie ABBV, for the global rights to brazikumab. However, in early 2020, AstraZeneca announced that it will regain the global rights to brazikumab from Allergan (now AbbVie). The termination of the agreement with Allergan was due to Allergan’s decision to divest brazikumab in connection with its merger with AbbVie. |
22508.0 | 2023-06-01 00:00:00 UTC | Coherus BioSciences to launch Humira biosimilar at 85% discount | ABBV | https://www.nasdaq.com/articles/coherus-biosciences-to-launch-humira-biosimilar-at-85-discount | nan | nan | Updates AbbVie shares, adds Amgen shares in paragraph 7, background on competitors in paragraphs 5-6
June 1 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it plans to launch a biosimilar of AbbVie Inc's ABBV.N Humira in July at a list price of $995 per carton, representing a discount of about 85% from the blockbuster arthritis drug.
The annual cost of the biosimilar, branded as Yusimry, will be around $13,000, compared with $90,000 for Humira, Coherus said.
Coherus has also partnered with Billionaire entrepreneur Mark Cuban's pharmaceuticals startup to sell the biosimilar at $569.27 plus dispensing and shipping fees. The Mark Cuban Cost Plus Drug Company provides generic drugs through direct contracts with manufacturers and charges a standard markup.
More than 300,000 patients in the U.S. take Humira every year, according to Coherus.
Unlike pills, which have extremely cheap generic copies, complex, expensive biologics made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
Rival Amgen Inc AMGN.Olaunched the first biosimilar version of Humira earlier this year. The company priced the drug at two levels - $3,288 and $1,557 per 40 milligram pen device for a two-week supply - depending on who was purchasing.
About half a dozen companies, including Teva Pharmaceutical TEVA.TA, are planning to launch biosimilars to Humira in the U.S. market in July.
AbbVie shares were down more than 4%, while Amgen fell nearly 4% in early trade.
(Reporting by Raghav Mahobe in Bengaluru; Editing by Krishna Chandra Eluri)
((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. | Updates AbbVie shares, adds Amgen shares in paragraph 7, background on competitors in paragraphs 5-6 June 1 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it plans to launch a biosimilar of AbbVie Inc's ABBV.N Humira in July at a list price of $995 per carton, representing a discount of about 85% from the blockbuster arthritis drug. AbbVie shares were down more than 4%, while Amgen fell nearly 4% in early trade. Coherus has also partnered with Billionaire entrepreneur Mark Cuban's pharmaceuticals startup to sell the biosimilar at $569.27 plus dispensing and shipping fees. | Updates AbbVie shares, adds Amgen shares in paragraph 7, background on competitors in paragraphs 5-6 June 1 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it plans to launch a biosimilar of AbbVie Inc's ABBV.N Humira in July at a list price of $995 per carton, representing a discount of about 85% from the blockbuster arthritis drug. AbbVie shares were down more than 4%, while Amgen fell nearly 4% in early trade. The Mark Cuban Cost Plus Drug Company provides generic drugs through direct contracts with manufacturers and charges a standard markup. | Updates AbbVie shares, adds Amgen shares in paragraph 7, background on competitors in paragraphs 5-6 June 1 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it plans to launch a biosimilar of AbbVie Inc's ABBV.N Humira in July at a list price of $995 per carton, representing a discount of about 85% from the blockbuster arthritis drug. AbbVie shares were down more than 4%, while Amgen fell nearly 4% in early trade. The Mark Cuban Cost Plus Drug Company provides generic drugs through direct contracts with manufacturers and charges a standard markup. | Updates AbbVie shares, adds Amgen shares in paragraph 7, background on competitors in paragraphs 5-6 June 1 (Reuters) - Coherus BioSciences Inc CHRS.O said on Thursday it plans to launch a biosimilar of AbbVie Inc's ABBV.N Humira in July at a list price of $995 per carton, representing a discount of about 85% from the blockbuster arthritis drug. AbbVie shares were down more than 4%, while Amgen fell nearly 4% in early trade. The Mark Cuban Cost Plus Drug Company provides generic drugs through direct contracts with manufacturers and charges a standard markup. |
22509.0 | 2023-06-01 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-32 | 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
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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. |
22510.0 | 2023-06-01 00:00:00 UTC | AstraZeneca to stop developing Crohn's disease drug | ABBV | https://www.nasdaq.com/articles/astrazeneca-to-stop-developing-crohns-disease-drug | nan | nan | Adds background on drug and AbbVie funding in paragraphs 3 and 4
June 1 (Reuters) - British drugmaker AstraZeneca AZN.L said on Thursday it would stop developing its drug brazikumab to treat inflammatory bowel diseases, including Crohn's disease and ulcerative colitis.
The company said the discontinuation was due to a delay in the drug's development timeline, affected by global events and "the context of a competitive landscape".
AstraZeneca regained the rights to brazikumab from Allergan in 2020 following U.S. drugmaker AbbVie's ABBV.N $63 billion tie-up with Allergan.
AbbVie will stop funding the drug's development, AstraZeneca said.
AbbVie's Skyrizi also treats Crohn's disease.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio D'Souza)
((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))
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 on drug and AbbVie funding in paragraphs 3 and 4 June 1 (Reuters) - British drugmaker AstraZeneca AZN.L said on Thursday it would stop developing its drug brazikumab to treat inflammatory bowel diseases, including Crohn's disease and ulcerative colitis. AstraZeneca regained the rights to brazikumab from Allergan in 2020 following U.S. drugmaker AbbVie's ABBV.N $63 billion tie-up with Allergan. AbbVie will stop funding the drug's development, AstraZeneca said. | Adds background on drug and AbbVie funding in paragraphs 3 and 4 June 1 (Reuters) - British drugmaker AstraZeneca AZN.L said on Thursday it would stop developing its drug brazikumab to treat inflammatory bowel diseases, including Crohn's disease and ulcerative colitis. AbbVie will stop funding the drug's development, AstraZeneca said. AbbVie's Skyrizi also treats Crohn's disease. | Adds background on drug and AbbVie funding in paragraphs 3 and 4 June 1 (Reuters) - British drugmaker AstraZeneca AZN.L said on Thursday it would stop developing its drug brazikumab to treat inflammatory bowel diseases, including Crohn's disease and ulcerative colitis. AbbVie will stop funding the drug's development, AstraZeneca said. AstraZeneca regained the rights to brazikumab from Allergan in 2020 following U.S. drugmaker AbbVie's ABBV.N $63 billion tie-up with Allergan. | Adds background on drug and AbbVie funding in paragraphs 3 and 4 June 1 (Reuters) - British drugmaker AstraZeneca AZN.L said on Thursday it would stop developing its drug brazikumab to treat inflammatory bowel diseases, including Crohn's disease and ulcerative colitis. AstraZeneca regained the rights to brazikumab from Allergan in 2020 following U.S. drugmaker AbbVie's ABBV.N $63 billion tie-up with Allergan. AbbVie will stop funding the drug's development, AstraZeneca said. |
22511.0 | 2023-05-31 00:00:00 UTC | SPLG, BRK.B, MRK, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/splg-brk.b-mrk-abbv%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $108.7 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 347,600,000 to 349,800,000). Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.4%, and AbbVie Inc (Symbol: ABBV) is up by about 0.2%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $50.76 as the 52 week high point — that compares with a last trade of $49.01. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.4%, and AbbVie Inc (Symbol: ABBV) is up by about 0.2%. 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 SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.4%, and AbbVie Inc (Symbol: ABBV) is up by about 0.2%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $50.76 as the 52 week high point — that compares with a last trade of $49.01. 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 SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.4%, and AbbVie Inc (Symbol: ABBV) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $108.7 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 347,600,000 to 349,800,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $50.76 as the 52 week high point — that compares with a last trade of $49.01. | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.4%, and AbbVie Inc (Symbol: ABBV) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $108.7 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 347,600,000 to 349,800,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
22512.0 | 2023-05-31 00:00:00 UTC | Validea Detailed Fundamental Analysis - ABBV | ABBV | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-abbv | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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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. |
22513.0 | 2023-05-31 00:00:00 UTC | What's Ahead for the 10 Stocks That Have Driven Over 80% of U.S. Market Returns So Far in 2023 | ABBV | https://www.nasdaq.com/articles/whats-ahead-for-the-10-stocks-that-have-driven-over-80-of-u.s.-market-returns-so-far-in | nan | nan | So far, 2023 has been a remarkable year for U.S. equities markets, with the S&P 500 index staging a 10% rally, defying recession fears. However, behind this seemingly positive performance lies a concerning trend.
A select group of technology giants, commonly referred to as the ‘FAANG’ megacaps [minus Netflix (US:NFLX)], have been driving the majority of these gains, casting a shadow over the broader market's performance.
These 10 stocks, fueled by the AI frenzy, have played a pivotal role in pushing the S&P 500 into positive territory for the year.
The year-to-date returns of these companies speak volumes about their influence:
Amazon (US:AMZN) +43.0%
AMD (US:AMD) +96.1%
Apple (US:AAPL) +35.0%
Broadcom (US:AVGO) +45.4%
Meta (US:META) +117.8%
Microsoft (US:MSFT) +38.8%
NVIDIA (US:NVDA) +166.5%
Salesforce (US:CRM) +62.5%
Tesla (US:TSLA) +56.8%
Collectively, these 10 stocks have accounted for more than 80% of broader US index gains in 2023.
The heat map below shows the year to date return by sector and stock:
What sets these tech behemoths apart is their aggressive cost-cutting measures, which have improved their earnings power compared to the previous year. Furthermore, the declining pace of interest rate hikes by the FED in recent months has played a significant role in supporting the valuation of these traditionally high-multiple stocks, further fueling their re-ascent.
Staggering Influence
The magnitude of this group's influence is staggering, with their collective performance driving more than $2 trillion in total market cap growth so far this year. It is a testament to the growing dominance of the tech and AI sectors in the market, particularly in a year when ChatGPT, powered by OpenAI, has become a household name.
Microsoft's $10 billion investment in OpenAI, coupled with its integration of generative AI into Bing, exemplified its commitment to the changing landscape of technology with the AI revolution. NVIDIA stock, on the other hand, has established itself as America's most valuable chipmaker, catering to the demands of machine learning models with its powerful A100 chips.
However, while the remarkable gains of these select AI-related stocks paint an enticing picture, they also raise concerns about market breadth. Market breadth refers to the extent to which gains are distributed across a wide range of companies. When only a handful of stocks drive the majority of gains, it signals higher risk in the market. Currently, market breadth is exceptionally narrow, with these ten companies comprising over ~30% of the entire index's market capitalization.
Staying Power
The broader market's performance is being masked by the dominance of these few AI-related firms. The question remains: for how long can this trend continue? A variety of market pressures, from rising interest rates to banking uncertainties, may introduce additional challenges in the near future.
This situation marks a stark contrast to 2022 when the tech sector endured a challenging period, battered by the Federal Reserve's initiation of the rate hiking cycle aimed at curbing high inflation. However, as bank runs captured headlines earlier this year, investors sought refuge in the tech sector. With limited exposure to the financial sector and the growing momentum of new trends like artificial intelligence, tech companies became an attractive option.
Last year was undeniably bleak for the tech industry, with the Nasdaq Composite index experiencing a staggering 33% slide. Amazon slid by 50%, Meta and Tesla fell by more than 60% and Apple was not prone to losses with a smaller retracement of around 27%.
The tech sector's vulnerability to the Fed’s interest rate hikes, coupled with its emphasis on growth, made it especially susceptible to the sharp rise in borrowing costs. Nevertheless, the Nasdaq has made a strong comeback in 2023, posting a 25% year-to-date gain, outperforming the broader S&P 500.
While these stocks have been broader winners in 2023, there have also been losers in other sectors. Oil and gas giant Chevron (US:CVX) is down 14.2%, while healthcare heavyweights Pfizer (US:PFE) is down 26.6%, Abbvie (US:ABBV) is down 14.9% and Johnson and Johnson (US:JNJ) is off by 12.6%. In the Financials sector Bank of America (US:BAC) has retreated by 14.5% and Charles Schwab (US:SCHW) is sharply lower with 35.5% of losses YTD.
As we move forward, it will be essential to monitor the dynamics of these AI-related firms and their impact on the broader market. While their remarkable gains have propelled the S&P 500 to annual heights, it begs to question whether more opportunities lay in stocks with smaller market caps that are trading on “cheaper valuations”.
The heat map below shows the forward PE ratio for the S&P 500 and highlights the valuation disparity between sectors.
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. | Oil and gas giant Chevron (US:CVX) is down 14.2%, while healthcare heavyweights Pfizer (US:PFE) is down 26.6%, Abbvie (US:ABBV) is down 14.9% and Johnson and Johnson (US:JNJ) is off by 12.6%. A select group of technology giants, commonly referred to as the ‘FAANG’ megacaps [minus Netflix (US:NFLX)], have been driving the majority of these gains, casting a shadow over the broader market's performance. Furthermore, the declining pace of interest rate hikes by the FED in recent months has played a significant role in supporting the valuation of these traditionally high-multiple stocks, further fueling their re-ascent. | Oil and gas giant Chevron (US:CVX) is down 14.2%, while healthcare heavyweights Pfizer (US:PFE) is down 26.6%, Abbvie (US:ABBV) is down 14.9% and Johnson and Johnson (US:JNJ) is off by 12.6%. Staggering Influence The magnitude of this group's influence is staggering, with their collective performance driving more than $2 trillion in total market cap growth so far this year. It is a testament to the growing dominance of the tech and AI sectors in the market, particularly in a year when ChatGPT, powered by OpenAI, has become a household name. | Oil and gas giant Chevron (US:CVX) is down 14.2%, while healthcare heavyweights Pfizer (US:PFE) is down 26.6%, Abbvie (US:ABBV) is down 14.9% and Johnson and Johnson (US:JNJ) is off by 12.6%. A select group of technology giants, commonly referred to as the ‘FAANG’ megacaps [minus Netflix (US:NFLX)], have been driving the majority of these gains, casting a shadow over the broader market's performance. The heat map below shows the year to date return by sector and stock: What sets these tech behemoths apart is their aggressive cost-cutting measures, which have improved their earnings power compared to the previous year. | Oil and gas giant Chevron (US:CVX) is down 14.2%, while healthcare heavyweights Pfizer (US:PFE) is down 26.6%, Abbvie (US:ABBV) is down 14.9% and Johnson and Johnson (US:JNJ) is off by 12.6%. It is a testament to the growing dominance of the tech and AI sectors in the market, particularly in a year when ChatGPT, powered by OpenAI, has become a household name. Staying Power The broader market's performance is being masked by the dominance of these few AI-related firms. |
22514.0 | 2023-05-31 00:00:00 UTC | AbbVie Says Upadacitinib 30 Mg Meets Primary Goals In SLE Patients In Mid-stage Study | ABBV | https://www.nasdaq.com/articles/abbvie-says-upadacitinib-30-mg-meets-primary-goals-in-sle-patients-in-mid-stage-study | nan | nan | (RTTNews) - AbbVie Inc. (ABBV), a clinical-stage pharmaceutical company, Wednesday announced the results of its phase 2 SLEek study evaluating upadacitinib (RINVOQ 30 mg), alone and in combination with ABBV-599 high dose (elsubrutinib 60 mg) for systemic lupus erythematosus or SLE in adults.
In the phase 2 of the study, patients suffering from moderate to severe lupus receiving upadacitinib 30 mg or ABBV-599 high dose achieved the primary endpoint of the study.
"At week 24, upadacitinib 30 mg given alone or as a combination therapy (ABBV-599 high dose [elsubrutinib 60 mg and upadacitinib 30 mg]) met the primary endpoint of systemic lupus erythematosus (SLE) Responder Index (SRI-4) and steroid dose less than or equal to 10 mg prednisone equivalent once per day in patients with moderately to severely active SLE receiving standard lupus therapies," the company said in a statement.
SLE is the most common type of Lupus and it is an auto immune disease where the body's immune system attacks its own tissues and organs causing inflammation, tissue damage in the affected organs. It can impact joints, skin, brain, lungs, kidneys and blood vessels, causing many symptoms including fatigue, skin rashes, fevers, and pain and swelling in the joints.
Roopal Thakkar, chief medical officer at AbbVie commented, "There are limited treatment options for people living with SLE, leaving physicians challenged on how to effectively slow disease progression and limit potential organ damage in their patients."
Key secondary endpoints were also achieved in the 48 week and it showed greater treatment effect in the upadacitinib 30 mg and ABBV-599 high dose groups compared to placebo.
The company is presenting the study results at the European Congress of Rheumatology, EULAR 2023.
On Tuesday, shares of Abbvie closed at $136.44 down 0.81% or $1.12 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) - AbbVie Inc. (ABBV), a clinical-stage pharmaceutical company, Wednesday announced the results of its phase 2 SLEek study evaluating upadacitinib (RINVOQ 30 mg), alone and in combination with ABBV-599 high dose (elsubrutinib 60 mg) for systemic lupus erythematosus or SLE in adults. Roopal Thakkar, chief medical officer at AbbVie commented, "There are limited treatment options for people living with SLE, leaving physicians challenged on how to effectively slow disease progression and limit potential organ damage in their patients." Key secondary endpoints were also achieved in the 48 week and it showed greater treatment effect in the upadacitinib 30 mg and ABBV-599 high dose groups compared to placebo. | (RTTNews) - AbbVie Inc. (ABBV), a clinical-stage pharmaceutical company, Wednesday announced the results of its phase 2 SLEek study evaluating upadacitinib (RINVOQ 30 mg), alone and in combination with ABBV-599 high dose (elsubrutinib 60 mg) for systemic lupus erythematosus or SLE in adults. In the phase 2 of the study, patients suffering from moderate to severe lupus receiving upadacitinib 30 mg or ABBV-599 high dose achieved the primary endpoint of the study. "At week 24, upadacitinib 30 mg given alone or as a combination therapy (ABBV-599 high dose [elsubrutinib 60 mg and upadacitinib 30 mg]) met the primary endpoint of systemic lupus erythematosus (SLE) Responder Index (SRI-4) and steroid dose less than or equal to 10 mg prednisone equivalent once per day in patients with moderately to severely active SLE receiving standard lupus therapies," the company said in a statement. | (RTTNews) - AbbVie Inc. (ABBV), a clinical-stage pharmaceutical company, Wednesday announced the results of its phase 2 SLEek study evaluating upadacitinib (RINVOQ 30 mg), alone and in combination with ABBV-599 high dose (elsubrutinib 60 mg) for systemic lupus erythematosus or SLE in adults. In the phase 2 of the study, patients suffering from moderate to severe lupus receiving upadacitinib 30 mg or ABBV-599 high dose achieved the primary endpoint of the study. "At week 24, upadacitinib 30 mg given alone or as a combination therapy (ABBV-599 high dose [elsubrutinib 60 mg and upadacitinib 30 mg]) met the primary endpoint of systemic lupus erythematosus (SLE) Responder Index (SRI-4) and steroid dose less than or equal to 10 mg prednisone equivalent once per day in patients with moderately to severely active SLE receiving standard lupus therapies," the company said in a statement. | (RTTNews) - AbbVie Inc. (ABBV), a clinical-stage pharmaceutical company, Wednesday announced the results of its phase 2 SLEek study evaluating upadacitinib (RINVOQ 30 mg), alone and in combination with ABBV-599 high dose (elsubrutinib 60 mg) for systemic lupus erythematosus or SLE in adults. In the phase 2 of the study, patients suffering from moderate to severe lupus receiving upadacitinib 30 mg or ABBV-599 high dose achieved the primary endpoint of the study. "At week 24, upadacitinib 30 mg given alone or as a combination therapy (ABBV-599 high dose [elsubrutinib 60 mg and upadacitinib 30 mg]) met the primary endpoint of systemic lupus erythematosus (SLE) Responder Index (SRI-4) and steroid dose less than or equal to 10 mg prednisone equivalent once per day in patients with moderately to severely active SLE receiving standard lupus therapies," the company said in a statement. |
22515.0 | 2023-05-30 00:00:00 UTC | Should Invesco Dynamic Large Cap Value ETF (PWV) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-invesco-dynamic-large-cap-value-etf-pwv-be-on-your-investing-radar-8 | nan | nan | Launched on 03/03/2005, the Invesco Dynamic Large Cap Value ETF (PWV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $734.77 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
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 counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.55%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 2.53%.
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 to the Healthcare sector--about 31.40% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO).
The top 10 holdings account for about 34.69% of total assets under management.
Performance and Risk
PWV seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses. The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
The ETF has lost about -5.51% so far this year and is down about -6.35% in the last one year (as of 05/30/2023). In the past 52-week period, it has traded between $41.65 and $49.21.
The ETF has a beta of 0.88 and standard deviation of 16.60% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value 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, PWV 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 $48.59 billion in assets, Vanguard Value ETF has $98.85 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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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Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : 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 $734.77 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/03/2005, the Invesco Dynamic Large Cap Value ETF (PWV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : 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, United Parcel Service Inc (UPS) accounts for about 3.72% of total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). Launched on 03/03/2005, the Invesco Dynamic Large Cap Value ETF (PWV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/03/2005, the Invesco Dynamic Large Cap Value ETF (PWV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. |
22516.0 | 2023-05-29 00:00:00 UTC | Should You Pick AbbVie Stock Over LLY? | ABBV | https://www.nasdaq.com/articles/should-you-pick-abbvie-stock-over-lly | nan | nan | We believe that AbbVie stock (NYSE: ABBV) is a better pick than its industry peer, Eli Lilly stock (NYSE: LLY). LLY stock trades at a higher valuation of 14.6x trailing revenues, compared to just 4.2x for AbbVie, and this valuation gap will likely narrow over time in favor of AbbVie, in our view. Looking at stock returns, Eli Lilly has outperformed AbbVie and the broader indices. While LLY is up 16% this year, ABBV is down 13%, and the S&P500 index is up 7%. There is more to the comparison, and in the sections below, we discuss why we believe ABBV stock will offer higher returns than LLY stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Eli Lilly vs. AbbVie: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. AbbVie’s Revenue Growth Is Better
AbbVie’s revenue growth has been much better, with a 21.2% average annual growth rate in the last three years, compared to 8.7% for Eli Lilly.
AbbVie’s revenue growth has been buoyed by its Allergan acquisition in 2020.
The company is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered $21.2 billion in 2022 sales, reflecting a 3% y-o-y growth. Now, Humira’s biosimilar has already hit the European and the U.S. markets, weighing on the company’s sales.
Eli Lilly’s revenue growth has been driven by continued market share gains for drugs such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. The company also secured U.S. FDA approval for its diabetes drug – Tirzepatide – which is expected to garner over $5 billion in peak sales.
Even if we look at the last twelve-month period, AbbVie fares better with sales growth of 4.4% vs. -5.6% for Eli Lilly. However, this decline for Eli Lilly is primarily attributed to lower sales for its Covid-19 antibodies.
Our AbbVie Revenue Comparison and Eli Lilly Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, more Humira biosimilars are expected to enter the U.S. this year, likely resulting in a significant drop in the drug’s sales over the coming years.
That said, AbbVie is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis, are gaining market share. For perspective, these three products garnered $13.0 billion in 2022, reflecting about 40% y-o-y growth.
Eli Lilly, conversely, has no near-term risks associated with biosimilars. It has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion.
Overall, 2023 will be a painful year for AbbVie, with a decline in sales due to Humira biosimilars, but it will likely return to growth from 2024 with its relatively new drugs gaining market share.
2. AbbVie Is More Profitable
AbbVie’s operating margin declined from 39% in 2019 to 31.2% in 2022, while Eli Lilly’s operating margin rose from 21.8% to 25.3% over this period.
Looking at the last twelve-month period, AbbVie’s operating margin of 31.6% fares better than 22.7% for Eli Lilly.
AbbVie’s 2019 operating margin of 39% was higher due to an $890 million other income recorded in the financials.
Our AbbVie Operating Income Comparison and Eli Lilly Operating Income Comparison dashboards have more details.
AbbVie’s free cash flow margin of 43.4% is higher than 22.7% for Eli Lilly.
Looking at financial risk, Eli Lilly fares better with its 4.7% debt as a percentage of equity lower than 32.8% for AbbVie, and its 6.9% cash as a percentage of assets higher than 4.9% for the latter, implying that Eli Lilly has a better debt position and more cash cushion.
3. The Net of It All
We see that AbbVie has demonstrated better revenue growth, is more profitable, and is trading at a comparatively lower valuation multiple. On the other hand, Eli Lilly has a better debt position and cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe AbbVie is the better choice of the two, primarily because of its lower valuation. It appears that the investors have already priced in Humira’s biosimilar risks.
If we compare the current valuation multiples to the historical averages, AbbVie fares better, with its stock currently trading at 4.3x trailing revenues vs. the last five-year average of 5.3x. In contrast, Eli Lilly stock trades at 14.2x trailing revenues vs. the last five-year average of 8.3x.
Just like AbbVie’s concerns appear to be priced in, Eli Lilly’s strong pipeline potential also seems to be priced in by the investors.
Our AbbVie (ABBV) Valuation Ratios Comparison and Eli Lilly (LLY) Valuation Ratios Comparison have more details.
While ABBV may outperform LLY in the next three years, it is helpful to see how AbbVie’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 Amedisys vs. Amerco.
Despite higher inflation and the Fed raising interest rates, LLY has seen a 16% rise this year. But can it drop from here? See how low Eli Lilly 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 high-performance portfolio with a low downside instead? Here’s a reinforced value portfolio that has beaten the market consistently while limiting losses during periods of sharp market declines.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
LLY Return 8% 16% 479%
ABBV Return -7% -13% 125%
S&P 500 Return -1% 7% 84%
Trefis Multi-Strategy Portfolio -1% 8% 239%
[1] Month-to-date and year-to-date as of 5/25/2023
[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. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Eli Lilly vs. AbbVie: Which Stock Is A Better Bet? We believe that AbbVie stock (NYSE: ABBV) is a better pick than its industry peer, Eli Lilly stock (NYSE: LLY). LLY stock trades at a higher valuation of 14.6x trailing revenues, compared to just 4.2x for AbbVie, and this valuation gap will likely narrow over time in favor of AbbVie, in our view. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Eli Lilly vs. AbbVie: Which Stock Is A Better Bet? Our AbbVie Operating Income Comparison and Eli Lilly Operating Income Comparison dashboards have more details. Our AbbVie (ABBV) Valuation Ratios Comparison and Eli Lilly (LLY) Valuation Ratios Comparison have more details. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Eli Lilly vs. AbbVie: Which Stock Is A Better Bet? AbbVie’s Revenue Growth Is Better AbbVie’s revenue growth has been much better, with a 21.2% average annual growth rate in the last three years, compared to 8.7% for Eli Lilly. Looking at financial risk, Eli Lilly fares better with its 4.7% debt as a percentage of equity lower than 32.8% for AbbVie, and its 6.9% cash as a percentage of assets higher than 4.9% for the latter, implying that Eli Lilly has a better debt position and more cash cushion. | There is more to the comparison, and in the sections below, we discuss why we believe ABBV stock will offer higher returns than LLY stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Eli Lilly vs. AbbVie: Which Stock Is A Better Bet? Overall, 2023 will be a painful year for AbbVie, with a decline in sales due to Humira biosimilars, but it will likely return to growth from 2024 with its relatively new drugs gaining market share. |
22517.0 | 2023-05-29 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-31 | 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
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. |
22518.0 | 2023-05-29 00:00:00 UTC | AbbVie Inc. (ABBV) is Attracting Investor Attention: Here is What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-attracting-investor-attention%3A-here-is-what-you-should-know-7 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drugmaker have returned -9%, compared to the Zacks S&P 500 composite's +3.9% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AbbVie is expected to post earnings of $2.93 per share for the current quarter, representing a year-over-year change of -13.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.9%.
The consensus earnings estimate of $10.97 for the current fiscal year indicates a year-over-year change of -20.3%. This estimate has changed +0.3% over the last 30 days.
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 +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $13.52 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. | 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. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. | 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. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. AbbVie is expected to post earnings of $2.93 per share for the current quarter, representing a year-over-year change of -13.1%. |
22519.0 | 2023-05-26 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-30 | 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
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. |
22520.0 | 2023-05-25 00:00:00 UTC | 2 Dividend Kings on Sale That Are Yielding More Than 4% | ABBV | https://www.nasdaq.com/articles/2-dividend-kings-on-sale-that-are-yielding-more-than-4 | nan | nan | Dividend Kings have excellent track records for dividend growth, and are often seen as some of the safest income investments to own. Two dividend growth stocks that may look tempting and that investors may want to take a closer look at today are AbbVie (NYSE: ABBV) and 3M (NYSE: MMM). They have been struggling this year and their yields are up over 4%. Here's a look at what's gotten investors bearish on these stocks -- and if they're good buys right now.
1. AbbVie
Healthcare company AbbVie pays a dividend yield of 4.1%, which is more than double the S&P 500 average of 1.7%. Including when it was part of Abbott Laboratories, the company has been increasing its dividend payments for 51 consecutive years. AbbVie also looks to be in a strong position to continue paying and increasing its dividend. That's because in each of the past two years, its free cash flow has totaled more than $20 billion -- double its annual dividend costs of $10 billion.
At face value, AbbVie looks like a solid dividend stock. But one of the reasons investors haven't been buying up the stock, and why it's down 10% year to date, is that it's facing some uncertainty in its top line. Top-selling drug Humira has begun to lose patent protection, and this year management expects sales to decline by 37% -- and that's on the low end of an initial estimate that projected sales could drop by as much as 55%.
Despite the drop in revenue, AbbVie still has growth catalysts for long-term investors to count on. Rinvoq and Skyrizi are two fast-growing immunology drugs that AbbVie expects could combine for higher peak annual sales than Humira. And last month the company announced positive results from a phase 3 trial from migraine medication Qulipta (atogepant), a potential blockbuster drug whose sales could top $1 billion.
AbbVie isn't at its 52-week low, but its share price has been sliding this year, and investors are turning bearish on the company. If you're willing to buy and hold the stock, AbbVie could make for a great income-generating investment to have in your portfolio for many years.
2. 3M
An even more impressive dividend growth streak comes from 3M. The conglomerate, which makes healthcare, industrial, and consumer goods products, has increased its dividend for 62 consecutive years. Its 62% payout ratio is modest, and this too is a stock that at first glance appears to be a safe option for dividend investors.
3M's business for the most part is stable, and it could make for a reliable long-term investment. Year to date, however, its share price has crashed more than 17%. The big risk facing the company today is that is financials are deteriorating and they could get worse. Gross profit margins, for example, have been falling over the past five years:
MMM Gross Profit Margin data by YCharts
Net sales of just over $8 billion for the period ended March 31 were down 9% year over year, but worsening margins resulted in the company's net income of $976 million falling more heavily, at a rate of 25%.
The bigger issue is what may lie ahead as the company is facing hundreds of thousands of lawsuits relating to its earplugs, which military personnel claim were ineffective and failed to protect them from loud noises. It has the potential to be a crippling legal battle for 3M. The problem is that it can be difficult to estimate, but given the number of plaintiffs it wouldn't be unreasonable to expect that the costs could be in the tens of billions -- at least.
As a result, 3M isn't the rock-solid investment it has been in years past. Its dividend can withstand worsening margins as its payout ratio remains manageable. But the looming legal cases present too much risk for this to be a stock worth taking a chance on right now as even its impressive dividend streak could be in jeopardy.
Although 3M's 6% dividend yield looks incredibly appealing, this is a stock that would only be suitable for contrarian investors who are comfortable taking on a lot of risk.
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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 3M. 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. | Two dividend growth stocks that may look tempting and that investors may want to take a closer look at today are AbbVie (NYSE: ABBV) and 3M (NYSE: MMM). AbbVie Healthcare company AbbVie pays a dividend yield of 4.1%, which is more than double the S&P 500 average of 1.7%. AbbVie also looks to be in a strong position to continue paying and increasing its dividend. | AbbVie Healthcare company AbbVie pays a dividend yield of 4.1%, which is more than double the S&P 500 average of 1.7%. Two dividend growth stocks that may look tempting and that investors may want to take a closer look at today are AbbVie (NYSE: ABBV) and 3M (NYSE: MMM). AbbVie also looks to be in a strong position to continue paying and increasing its dividend. | Two dividend growth stocks that may look tempting and that investors may want to take a closer look at today are AbbVie (NYSE: ABBV) and 3M (NYSE: MMM). AbbVie Healthcare company AbbVie pays a dividend yield of 4.1%, which is more than double the S&P 500 average of 1.7%. AbbVie also looks to be in a strong position to continue paying and increasing its dividend. | AbbVie Healthcare company AbbVie pays a dividend yield of 4.1%, which is more than double the S&P 500 average of 1.7%. At face value, AbbVie looks like a solid dividend stock. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
22521.0 | 2023-05-25 00:00:00 UTC | 2 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/2-top-dividend-kings-to-buy-for-the-long-haul-5 | nan | nan | The market had a difficult 2022. Last year revealed the importance of having safe stocks in your portfolio during times of market volatility.
Enter dividend stocks. What's better than companies that have a track record of consistently paying and increasing dividends? And the most impressive of them all are Dividend Kings -- companies that have increased their dividend for the past 50 years in a row.
I've got two in mind. These growth stocks allow investors to let their money appreciate while also providing a steady income. Let's take a closer look at why they're the best dividend stocks to buy right now.
Image source: Getty Images.
1. Abbvie
Biotech company AbbVie's (NYSE: ABBV) has increased its dividend for 51 consecutive years. This includes its time as part of parent company Abbott Laboratories, which it was spun off from in 2013. Since the spinoff, AbbVie's dividend has increased by more than 250%.
The company recently lost patent exclusivity in the U.S. for its star drug Humira, which has worried investors. Since AbbVie's separation from Abbott, Humira has been critical to its success. In 2022, Humira generated $21 billion in sales, making up 36% of AbbVie's total revenue.
However, AbbVie is wise to avoid depending on a single product for its survival. It also has several other successful drugs, including Rinvoq (used to treat adults with moderate to severe active rheumatoid arthritis) and Skyrizi (used to treat adults with moderate to severe plaque psoriasis).
Management believes that these two drugs will eventually surpass Humira by 2027. For 2022, both drugs generated $7.6 billion in sales. The company reported a strong first quarter and anticipates a strong finish to the year.
AbbVie continues to invest heavily in research and development, which came in at $6.5 billion, or 12% of revenue, in 2022. It may take some time for the company to make up for Humira's record-breaking sales, but the AbbVie has bright long-term prospects. It also has a slew of new products in its pipeline that could boost revenue in the coming years.
Its strong drug portfolio and consistent dividend payments make it an appealing growth and income stock.
2. Coca-Cola
Despite rising costs putting pressure on most consumer companies, Coca-Cola (NYSE: KO) continues to grow at a rapid pace. With its profitable business model, the company has dominated the beverage market for a very long time. This resilience has enabled it to pay and raise dividends consistently over the last 61 years.
Coke's total revenue increased by 11% year over year to $43 billion in 2022. Talking about the results, management said, "While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment." In 2022, the company paid out $7.6 billion in dividends.
Even better, the company kicked off 2023 with a 12% increase in organic revenue in Q1 over the previous year's quarter. Net earnings increased by 5% for the quarter. Coke expects to generate $9.5 billion in free cash flow for the full year, allowing it to continue paying and raising dividends while also funding growth initiatives.
It has a promising year ahead of it, expecting revenue and margins to increase steadily. Management is confident that all of its 2023 objectives will be met.
KO Revenue (Annual) data by YCharts
Coca-Cola's pricing power is critical to maintaining its profit margins. It usually passes on rising raw material costs to customers, who have been willing to pay. To offset rising costs this year, Coke had to raise its prices by double-digits in the first quarter. Fortunately, it had no effect on volume, which increased by 3% in the quarter.
Coke's focus has long been on beverages, primarily soda, putting it at risk by failing to diversify its product line. However, it appears to be on track for the time being by expanding to coffee, energy drinks, still water, and alcohol.
Long-term investing is the goal
When it comes to stock performance this year, both AbbVie and Coca-Cola are underperforming the broader market index. Short-term performance, however, is usually not a priority for long-term investors, especially when a stable dividend is included. Over the last five years, both companies have steadily increased their revenue and earnings. They each pay a dividend yield higher than the S&P 500's current payout of 1.6%.
KO Dividend Yield data by YCharts
But when choosing dividend stocks, yield is not the only factor to consider. Investors should also consider the consistency of dividend payments. Earning the title of Dividend King helps ensure a company will deliver reliable income for investors regardless of economic cycles.
Both companies understand how to adapt to challenges, which has allowed them to pay consistent dividends for so many years. These are two good stocks to buy and hold for some stability in the face of market volatility.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. 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. | Long-term investing is the goal When it comes to stock performance this year, both AbbVie and Coca-Cola are underperforming the broader market index. Abbvie Biotech company AbbVie's (NYSE: ABBV) has increased its dividend for 51 consecutive years. Since the spinoff, AbbVie's dividend has increased by more than 250%. | In 2022, Humira generated $21 billion in sales, making up 36% of AbbVie's total revenue. Abbvie Biotech company AbbVie's (NYSE: ABBV) has increased its dividend for 51 consecutive years. Since the spinoff, AbbVie's dividend has increased by more than 250%. | Abbvie Biotech company AbbVie's (NYSE: ABBV) has increased its dividend for 51 consecutive years. Since the spinoff, AbbVie's dividend has increased by more than 250%. Since AbbVie's separation from Abbott, Humira has been critical to its success. | Abbvie Biotech company AbbVie's (NYSE: ABBV) has increased its dividend for 51 consecutive years. Since the spinoff, AbbVie's dividend has increased by more than 250%. Since AbbVie's separation from Abbott, Humira has been critical to its success. |
22522.0 | 2023-05-25 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, Intel, Qualcomm, Regeneron and CME Group | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-intel-qualcomm-regeneron-and-cme-group | nan | nan | For Immediate Release
Chicago, IL – May 25, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Intel Corp. INTC, Qualcomm Inc. QCOM, Regeneron Pharmaceuticals, Inc. REGN and CME Group Inc. CME.
Here are highlights from Wednesday’s Analyst Blog:
Top Research Reports for AbbVie, Intel and Qualcomm
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 AbbVie Inc., Intel Corp. and Qualcomm 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 >>>
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-2.6% vs. +9.8%). There are concerns about long-term sales growth as 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. AbbVie has several new drugs in its portfolio with the potential to drive the top line to make up for lost Humira revenues.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. The company has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Intel’s shares have gained +2.2% over the past six months against the Zacks Semiconductor - General industry’s gain of +49.3%. The company is witnessing healthy momentum in its data center business with integrated affordable solutions. Heavy investment in research and development to drive technological innovation and concerted focus on increasing market diversification are tailwinds.
Intel is increasingly focusing on a diversified product range targeting different segments of the market. Healthy traction from Mobileye’s technologies related to in-car networking, sensor-chips, cloud software, machine learning and data management are positives.
However, an uncertain macroeconomic environment, PC inventory correction, contraction in the server market and high debt burden are affecting its margins. A highly competitive market and manufacturing delays are hurting Intel’s profitability. Signs of market saturation, foreign exchange headwinds and geopolitical instability are worrisome.
(You can read the full research report on Intel here >>>)
Shares of Qualcomm have underperformed the Zacks Wireless Equipment industry over the past six months (-15.1% vs. +12.9%). The company’s global presence exposes it to risk of trade disputes and geopolitical tensions. High dependence on the smartphone industry is a headwind as weak consumer demand trends can significantly affect margins. Macroeconomic uncertainty and competition from other low-cost chip manufacturers remain other concerns.
Nevertheless, Qualcomm is well-positioned to benefit from solid 5G traction with greater visibility and a diversified revenue stream. The EDGE networking business is witnessing steady progress as it focuses on transitioning from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
It is likely to help users experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and best-in-class security.
(You can read the full research report on QUALCOMM here >>>)
Other noteworthy reports we are featuring today include Regeneron Pharmaceuticals, Inc. and CME 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. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Intel Corp. INTC, Qualcomm Inc. QCOM, Regeneron Pharmaceuticals, Inc. REGN and CME Group Inc. CME. Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for AbbVie, Intel and Qualcomm 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 AbbVie Inc., Intel Corp. and Qualcomm Inc. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Intel Corp. INTC, Qualcomm Inc. QCOM, Regeneron Pharmaceuticals, Inc. REGN and CME Group Inc. CME. Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for AbbVie, Intel and Qualcomm The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report CME Group Inc. (CME) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for AbbVie, Intel and Qualcomm 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 AbbVie Inc., Intel Corp. and Qualcomm Inc. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report CME Group Inc. (CME) : 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 AbbVie Inc., Intel Corp. and Qualcomm Inc. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Intel Corp. INTC, Qualcomm Inc. QCOM, Regeneron Pharmaceuticals, Inc. REGN and CME Group Inc. CME. Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for AbbVie, Intel and Qualcomm The Zacks Research Daily presents the best research output of our analyst team. |
22523.0 | 2023-05-25 00:00:00 UTC | Should First Trust Morningstar Dividend Leaders ETF (FDL) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-first-trust-morningstar-dividend-leaders-etf-fdl-be-on-your-investing-radar-6 | nan | nan | Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the First Trust Morningstar Dividend Leaders ETF (FDL), a passively managed exchange traded fund launched on 03/09/2006.
The fund is sponsored by First Trust Advisors. It has amassed assets over $4.72 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.96%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 21.30% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.88% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ).
The top 10 holdings account for about 56.57% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has lost about -6.67% so far this year and is down about -8.11% in the last one year (as of 05/25/2023). In the past 52-week period, it has traded between $32.13 and $39.18.
The ETF has a beta of 0.86 and standard deviation of 17.25% for the trailing three-year period, making it a medium risk choice in the space. With about 98 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Morningstar Dividend Leaders 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, FDL is a great 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 $48.36 billion in assets, Vanguard Value ETF has $98.54 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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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.88% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the First Trust Morningstar Dividend Leaders ETF (FDL), a passively managed exchange traded fund launched on 03/09/2006. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.88% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the First Trust Morningstar Dividend Leaders ETF (FDL), a passively managed exchange traded fund launched on 03/09/2006. | Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.88% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). Alternatives First Trust Morningstar Dividend Leaders ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.88% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the First Trust Morningstar Dividend Leaders ETF (FDL), a passively managed exchange traded fund launched on 03/09/2006. |
22524.0 | 2023-05-24 00:00:00 UTC | Oversold Conditions For AbbVie | ABBV | https://www.nasdaq.com/articles/oversold-conditions-for-abbvie | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $141.65 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 47.0. A bullish investor could look at ABBV's 29.9 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. The chart below shows the one year performance of ABBV shares:
Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $168.11 as the 52 week high point — that compares with a last trade of $142.36.
Find out what 9 other oversold stocks you need to know about »
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABBV's 29.9 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. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $168.11 as the 52 week high point — that compares with a last trade of $142.36. In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $141.65 per share. | A bullish investor could look at ABBV's 29.9 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. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $168.11 as the 52 week high point — that compares with a last trade of $142.36. In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $141.65 per share. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $141.65 per share. A bullish investor could look at ABBV's 29.9 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. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $168.11 as the 52 week high point — that compares with a last trade of $142.36. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $141.65 per share. A bullish investor could look at ABBV's 29.9 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. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $168.11 as the 52 week high point — that compares with a last trade of $142.36. |
22525.0 | 2023-05-24 00:00:00 UTC | Top Research Reports for AbbVie, Intel & Qualcomm | ABBV | https://www.nasdaq.com/articles/top-research-reports-for-abbvie-intel-qualcomm | nan | nan | Wednesday, May 24, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), Intel Corp. (INTC) and Qualcomm Inc. (QCOM). 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 AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-2.6% vs. +9.8%). There are concerns about long-term sales growth as 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. AbbVie has several new drugs in its portfolio with the potential to drive the top line to make up for lost Humira revenues.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. The company has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Intel’s shares have gained +2.2% over the past six months against the Zacks Semiconductor - General industry’s gain of +49.3%. The company is witnessing healthy momentum in its data center business with integrated affordable solutions. Heavy investment in research and development to drive technological innovation and concerted focus on increasing market diversification are tailwinds.
Intel is increasingly focusing on a diversified product range targeting different segments of the market. Healthy traction from Mobileye’s technologies related to in-car networking, sensor-chips, cloud software, machine learning and data management are positives.
However, an uncertain macroeconomic environment, PC inventory correction, contraction in the server market and high debt burden are affecting its margins. A highly competitive market and manufacturing delays are hurting Intel’s profitability. Signs of market saturation, foreign exchange headwinds and geopolitical instability are worrisome.
(You can read the full research report on Intel here >>>)
Shares of Qualcomm have underperformed the Zacks Wireless Equipment industry over the past six months (-15.1% vs. +12.9%). The company’s global presence exposes it to risk of trade disputes and geopolitical tensions. High dependence on smartphone industry is a headwind as weak consumer demand trends can significantly affect margins. Macroeconomic uncertainty and competition from other low-cost chip manufacturers remain other concerns.
Nevertheless, Qualcomm is well-positioned to benefit from solid 5G traction with greater visibility and a diversified revenue stream. The EDGE networking business is witnessing steady progress as it focuses on transitioning from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
It is likely to help users experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and best-in-class security.
(You can read the full research report on QUALCOMM here >>>)
Other noteworthy reports we are featuring today include Regeneron Pharmaceuticals, Inc. (REGN) and CME Group Inc. (CME).
Mark Vickery
Senior Editor
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
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Intel (INTC) Rides on Mobileye, Diverse Portfolio Strength
Qualcomm (QCOM) Remains Poised to Gain from Solid 5G Traction
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Business Separation & Regulated Investment Aid Exelon (EXC)
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Twilio (TWLO) Banks on Growing Active Customer Accounts
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New Upgrades
Enterprise (EPD) Banks on $6B of Key Midstream Projects
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Fleet Modernization & Cost-Cuts Aid Copa Holdings (CPA)
The Zacks analyst is impressed with Copa Holdings' efforts to modernize its fleet. The company's initiatives to check non-fuel unit costs are encouraging too.
Strategic Acquisitions Aid Builders FirstSource (BLDR)
Per the Zacks analyst, Builders FirstSource is benefiting from cost synergies and strategic acquisitions. Also, focus on investment in innovations and enhancing digital solutions bode well.
New Downgrades
Trinity Industries (TRN) Reels Under High Labor Expenses
The Zacks analyst is worried about the company's weak liquidity position. Supply chain disruptions and high labor costs are also hurting Trinity's operation
G-III Apparel (GIII) Witnesses Inflationary & Other Woes
Per Zacks analyst, G-III Apparel is seeing inflationary pressures for a while. Also, the company is battling high SG&A costs. For the first quarter, it forecast adjusted loss per share of 5-15 cents.
Overdependence on NanoKnife Impairs AngioDynamics (ANGO)
The Zacks analyst is worried about AngioDynamics' continued overdependence on NanoKnife. Pricing pressure is an added issue.
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Intel Corporation (INTC) : Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Exelon Corporation (EXC) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Intel (INTC) Rides on Mobileye, Diverse Portfolio Strength Qualcomm (QCOM) Remains Poised to Gain from Solid 5G Traction Featured Reports Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces challenges. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), Intel Corp. (INTC) and Qualcomm Inc. (QCOM). Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-2.6% vs. +9.8%). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Intel (INTC) Rides on Mobileye, Diverse Portfolio Strength Qualcomm (QCOM) Remains Poised to Gain from Solid 5G Traction Featured Reports Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces challenges. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Exelon Corporation (EXC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report CME Group Inc. (CME) : 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 AbbVie Inc. (ABBV), Intel Corp. (INTC) and Qualcomm Inc. (QCOM). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Intel (INTC) Rides on Mobileye, Diverse Portfolio Strength Qualcomm (QCOM) Remains Poised to Gain from Solid 5G Traction Featured Reports Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces challenges. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Exelon Corporation (EXC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report CME Group Inc. (CME) : 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 AbbVie Inc. (ABBV), Intel Corp. (INTC) and Qualcomm Inc. (QCOM). | Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Exelon Corporation (EXC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report CME Group Inc. (CME) : 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 AbbVie Inc. (ABBV), Intel Corp. (INTC) and Qualcomm Inc. (QCOM). Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-2.6% vs. +9.8%). |
22526.0 | 2023-05-24 00:00:00 UTC | Noteworthy Wednesday Option Activity: COIN, ABNB, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-coin-abnb-abbv | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Coinbase Global Inc (Symbol: COIN), where a total of 93,518 contracts have traded so far, representing approximately 9.4 million underlying shares. That amounts to about 72.5% of COIN's average daily trading volume over the past month of 12.9 million shares. Especially high volume was seen for the $50 strike put option expiring June 16, 2023, with 5,806 contracts trading so far today, representing approximately 580,600 underlying shares of COIN. Below is a chart showing COIN's trailing twelve month trading history, with the $50 strike highlighted in orange:
Airbnb Inc (Symbol: ABNB) options are showing a volume of 60,259 contracts thus far today. That number of contracts represents approximately 6.0 million underlying shares, working out to a sizeable 71.1% of ABNB's average daily trading volume over the past month, of 8.5 million shares. Especially high volume was seen for the $98 strike put option expiring June 16, 2023, with 3,914 contracts trading so far today, representing approximately 391,400 underlying shares of ABNB. Below is a chart showing ABNB's trailing twelve month trading history, with the $98 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 37,726 contracts, representing approximately 3.8 million underlying shares or approximately 68.1% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $165 strike put option expiring June 16, 2023, with 7,550 contracts trading so far today, representing approximately 755,000 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 COIN options, ABNB options, or ABBV options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $165 strike put option expiring June 16, 2023, with 7,550 contracts trading so far today, representing approximately 755,000 underlying shares of ABBV. Below is a chart showing ABNB's trailing twelve month trading history, with the $98 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 37,726 contracts, representing approximately 3.8 million underlying shares or approximately 68.1% of ABBV's average daily trading volume over the past month, of 5.5 million shares. 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 COIN options, ABNB options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing ABNB's trailing twelve month trading history, with the $98 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 37,726 contracts, representing approximately 3.8 million underlying shares or approximately 68.1% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $165 strike put option expiring June 16, 2023, with 7,550 contracts trading so far today, representing approximately 755,000 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 COIN options, ABNB options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing ABNB's trailing twelve month trading history, with the $98 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 37,726 contracts, representing approximately 3.8 million underlying shares or approximately 68.1% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $165 strike put option expiring June 16, 2023, with 7,550 contracts trading so far today, representing approximately 755,000 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 COIN options, ABNB options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing ABNB's trailing twelve month trading history, with the $98 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 37,726 contracts, representing approximately 3.8 million underlying shares or approximately 68.1% of ABBV's average daily trading volume over the past month, of 5.5 million shares. 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 COIN options, ABNB options, or ABBV options, visit StockOptionsChannel.com. Particularly high volume was seen for the $165 strike put option expiring June 16, 2023, with 7,550 contracts trading so far today, representing approximately 755,000 underlying shares of ABBV. |
22527.0 | 2023-05-23 00:00:00 UTC | Ironwood (IRWD) to Acquire VectivBio for $1B, Stock Up 3.6% | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-to-acquire-vectivbio-for-%241b-stock-up-3.6 | nan | nan | Ironwood IRWD announced a definitive agreement to acquire VectivBio VECT, a Switzerland-based biotech company, focused on the development of treatments for severe and rare gastrointestinal conditions.
Shares of Ironwood and VectivBio surged 3.6% and 38.6%, respectively, following the news.
The all-cash transaction is valued at approximately $1 billion. Ironwood will pay $17.00 per share, which is a premium of about 43% of VectivBio’s closing price of May 19.
This strategic move by Ironwood aims to strengthen its pipeline for gastrointestinal diseases. This is because VectivBio focuses on formulating medicines for severe rare gastrointestinal conditions.
VECT is developing its lead candidate, apraglutide, for treating short-bowel syndrome patients with intestinal failure. The candidate is in phase III clinical study with plans for a top-line readout by the end of 2023.
If apraglutide is developed successfully, it holds great promise as a next-generation GLP-2 analog with a potential to generate $1 billion in peak net sales. The candidate was granted orphan drug designation by the FDA for the treatment of adult patients with SBS-IF.
Approximately 18,000 adult patients in Europe, Japan and the United States suffer from short bowel syndrome with intestinal failure. Apraglutide can potentially address this issue.
The agreement has been approved by both companies' board of directors and is expected to be closed in the second half of 2023, subject to customary closing conditions.
Shares of Ironwood have plunged 9.8% in the year-to-date period against the industry’s 0.8% growth.
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The acquisition will add a promising treatment for digestive disorders to IRWD’s portfolio. It will also strengthen the company’s existing portfolio, which includes Linzess, a widely used and successful gastrointestinal treatment.
Ironwood, with partner with AbbVie ABBV, co-develops and co-commercializes Linzess in equal shares. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. Ironwood receives royalties on sales of Constella in Europe and Canada from AbbVie.
From a financial perspective, the acquisition is expected to support long-term profitability and cash-flow generation for Ironwood. The transaction is anticipated to benefit IRWD’s earnings, beginning 2026.
IRWD plans to finance the acquisition using its cash reserves and funds drawn through a four-year, $500 million revolving credit facility established in connection with the transaction.
Ironwood Pharmaceuticals, Inc. Price and Consensus
Ironwood Pharmaceuticals, Inc. price-consensus-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank and Stock to Consider
Currently, Ironwood carries a Zacks Rank #3 (Hold).
A better-ranked stock for investors interested in the same sector is ADMA Biologics ADMA, 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 estimates for ADMA have narrowed from 19 cents to 9 cents for 2023 in the past 60 days. Shares of ADMA have risen 6.7% in the year-to-date period.
ADMA Biologics’ earnings beat estimates in three of the trailing four quarters and met the mark in one, delivering an average surprise of 19.3%.
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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. | Ironwood, with partner with AbbVie ABBV, co-develops and co-commercializes Linzess in equal shares. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. Ironwood receives royalties on sales of Constella in Europe and Canada from 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 VectivBio Holding AG (VECT) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood, with partner with AbbVie ABBV, co-develops and co-commercializes Linzess in equal shares. 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 VectivBio Holding AG (VECT) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood, with partner with AbbVie ABBV, co-develops and co-commercializes Linzess in equal shares. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. | Ironwood, with partner with AbbVie ABBV, co-develops and co-commercializes Linzess in equal shares. Linzess is marketed by AbbVie in Europe and Canada under the brand name, Constella. Ironwood receives royalties on sales of Constella in Europe and Canada from AbbVie. |
22528.0 | 2023-05-23 00:00:00 UTC | Noteworthy ETF Outflows: IXJ, ABBV, PFE, ELV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-ixj-abbv-pfe-elv | 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 Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $72.8 million dollar outflow -- that's a 1.7% decrease week over week (from 48,650,000 to 47,800,000). Among the largest underlying components of IXJ, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Pfizer Inc (Symbol: PFE) is off about 0.9%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average:
Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.19. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IXJ, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Pfizer Inc (Symbol: PFE) is off about 0.9%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. 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 IXJ, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Pfizer Inc (Symbol: PFE) is off about 0.9%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.19. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IXJ, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Pfizer Inc (Symbol: PFE) is off about 0.9%, and Elevance Health Inc (Symbol: ELV) is lower 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 iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $72.8 million dollar outflow -- that's a 1.7% decrease week over week (from 48,650,000 to 47,800,000). For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.19. | Among the largest underlying components of IXJ, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Pfizer Inc (Symbol: PFE) is off about 0.9%, and Elevance Health Inc (Symbol: ELV) is lower 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 iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $72.8 million dollar outflow -- that's a 1.7% decrease week over week (from 48,650,000 to 47,800,000). For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.19. |
22529.0 | 2023-05-22 00:00:00 UTC | Why Ironwood Pharmaceuticals Stock Bumped Higher Today | ABBV | https://www.nasdaq.com/articles/why-ironwood-pharmaceuticals-stock-bumped-higher-today | nan | nan | What happened
Ironwood Pharmaceuticals (NASDAQ: IRWD) is choosing to go the acquisition route to grow its business. On Monday, the company announced it has agreed to acquire clinical-stage biotech VectivBio Holding (NASDAQ: VECT). Investors were clearly warm to that move, as they subsequently traded up Ironwood stock by almost 4% on the day.
So what
Under the terms of the deal, Ironwood will pay roughly $1 billion in cash to become VectivBio's new owner. That shakes out to $17 per share, representing a hefty 42% premium over the latter's most recent closing stock price.
Both companies concentrate on treatments for gastrointestinal (GI) disorders, so the arrangement feels sensible and synergistic. In its press release touting the acquisition, Ironwood CEO Tom McCourt described his company's asset-to-be as "an ideal strategic fit" with its business.
It certainly bolsters Ironwood as a GI specialist. VectivBio is currently developing a drug, apraglutide, to treat short bowel syndrome-associated intestinal failure (SBS-IF). In Ironwood's view, apraglutide has clear potential to be a blockbuster drug.
VectivBio is also developing a treatment for severe inherited metabolic diseases. The drug is called CoMET.
Now what
Ironwood can also benefit greatly from a larger portfolio; at the moment, Linzess is its sole approved drug therapy for irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC).
The drug, which was developed in partnership with pharmaceutical sector mainstay AbbVie, was approved in mid-2021. It was responsible for nearly all of Ironwood's more than $104 million in revenue in the company's most recently reported quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The drug, which was developed in partnership with pharmaceutical sector mainstay AbbVie, was approved in mid-2021. On Monday, the company announced it has agreed to acquire clinical-stage biotech VectivBio Holding (NASDAQ: VECT). In its press release touting the acquisition, Ironwood CEO Tom McCourt described his company's asset-to-be as "an ideal strategic fit" with its business. | The drug, which was developed in partnership with pharmaceutical sector mainstay AbbVie, was approved in mid-2021. What happened Ironwood Pharmaceuticals (NASDAQ: IRWD) is choosing to go the acquisition route to grow its business. In Ironwood's view, apraglutide has clear potential to be a blockbuster drug. | The drug, which was developed in partnership with pharmaceutical sector mainstay AbbVie, was approved in mid-2021. 10 stocks we like better than Ironwood Pharmaceuticals 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 Ironwood Pharmaceuticals wasn't one of them! | The drug, which was developed in partnership with pharmaceutical sector mainstay AbbVie, was approved in mid-2021. VectivBio is currently developing a drug, apraglutide, to treat short bowel syndrome-associated intestinal failure (SBS-IF). 10 stocks we like better than Ironwood Pharmaceuticals When our analyst team has a stock tip, it can pay to listen. |
22530.0 | 2023-05-22 00:00:00 UTC | Is Invesco Dynamic Large Cap Value ETF (PWV) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-invesco-dynamic-large-cap-value-etf-pwv-a-strong-etf-right-now-7 | nan | nan | A smart beta exchange traded fund, the Invesco Dynamic Large Cap Value ETF (PWV) debuted on 03/03/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, PWV has amassed assets over $753.67 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Value Intellidex Index.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the more expensive products in the space, this ETF has annual operating expenses of 0.55%.
It's 12-month trailing dividend yield comes in at 2.50%.
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.
For PWV, it has heaviest allocation in the Healthcare sector --about 32.10% of the portfolio --while Financials and Consumer Staples round out the top three.
Taking into account individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO).
Its top 10 holdings account for approximately 34.69% of PWV's total assets under management.
Performance and Risk
So far this year, PWV has lost about -4.36%, and is up about 0.86% in the last one year (as of 05/22/2023). During this past 52-week period, the fund has traded between $41.65 and $49.21.
PWV has a beta of 0.88 and standard deviation of 16.78% 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
Invesco Dynamic Large Cap Value 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 $49.25 billion in assets, Vanguard Value ETF has $100.22 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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Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports
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Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : 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. 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. | Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : 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, United Parcel Service Inc (UPS) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). A smart beta exchange traded fund, the Invesco Dynamic Large Cap Value ETF (PWV) debuted on 03/03/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : 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, United Parcel Service Inc (UPS) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). A smart beta exchange traded fund, the Invesco Dynamic Large Cap Value ETF (PWV) debuted on 03/03/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, United Parcel Service Inc (UPS) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV) and Cisco Systems Inc (CSCO). Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the Invesco Dynamic Large Cap Value ETF (PWV) debuted on 03/03/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. |
22531.0 | 2023-05-22 00:00:00 UTC | Should You Invest in the Invesco Dynamic Pharmaceuticals ETF (PJP)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dynamic-pharmaceuticals-etf-pjp-7 | nan | nan | Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Pharma segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $303.35 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index before fees and expenses.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.98%.
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 in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 6.11% of total assets, followed by Abbvie Inc (ABBV) and Amgen Inc (AMGN).
The top 10 holdings account for about 53.97% of total assets under management.
Performance and Risk
The ETF has lost about -2.48% and is up about 5.22% so far this year and in the past one year (as of 05/22/2023), respectively. PJP has traded between $69.08 and $81.07 during this last 52-week period.
The ETF has a beta of 0.66 and standard deviation of 17.22% for the trailing three-year period, making it a high risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. PJP, then, is not the best option for investors seeking exposure to the Health Care ETFs segment of the market. Instead, there are better ETFs in the space to consider.
IShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index and the VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index. IShares U.S. Pharmaceuticals ETF has $380.16 million in assets, VanEck Pharmaceutical ETF has $403.28 million. IHE has an expense ratio of 0.39% and PPH charges 0.36%.
Bottom Line
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Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
VanEck Pharmaceutical ETF (PPH): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 6.11% of total assets, followed by Abbvie Inc (ABBV) and Amgen Inc (AMGN). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Pharma segment of the equity market. | Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 6.11% of total assets, followed by Abbvie Inc (ABBV) and Amgen Inc (AMGN). Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Pharma segment of the equity market. | Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 6.11% of total assets, followed by Abbvie Inc (ABBV) and Amgen Inc (AMGN). Alternatives Invesco Dynamic Pharmaceuticals ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 6.11% of total assets, followed by Abbvie Inc (ABBV) and Amgen Inc (AMGN). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. |
22532.0 | 2023-05-22 00:00:00 UTC | AbbVie (ABBV) Gets FDA Nod for Lymphoma Drug Epcoritamab | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gets-fda-nod-for-lymphoma-drug-epcoritamab | nan | nan | AbbVie ABBV and partner Genmab GMAB announced that the FDA has granted accelerated approval to their T-cell engaging bispecific antibody epcoritamab for treating relapsed/refractory diffuse large B-cell lymphoma (DLBCL). The new drug will be marketed by the trade name of Epkinly. Continued approval for this indication will be based on data from some confirmatory studies.
Epkinly is approved for treating relapsed/refractory DLBCL not otherwise specified, including DLBCL arising from indolent lymphoma, and high-grade B–cell lymphoma, after two or more lines of systemic therapies. DLBCL is a common, aggressive and fast-growing form of non-Hodgkin's lymphoma (NHL).
At present, DLBCL is being treated with chemoimmunotherapy-based regimens while several targeted therapies including T-cell mediated treatments are there for relapsed/refractory DLBCL patients. Epcoritamab offers a non-chemotherapy, single-agent treatment for the third-line DLBCL patient population in need of additional therapy following failure to respond to currently available therapies.
Epkinly is the third approved blood cancer drug in AbbVie’s portfolio, the other two being Imbruvica and Venclexta. However, Epkinly’s label contains a boxed warning for serious or life-threatening cytokine release syndrome and immune effector cell-associated neurotoxicity syndrome.
The approval was based on the response rate and durability of response data from the expansion cohort of phase I/II study, EPCORE NHL-1. In the study, epcoritamab demonstrated a confirmed overall response rate of 61%, a complete response rate of 38%, while the median duration of response was 15.6 months patients with CD20+ DLBCL.
AbbVie’s stock has declined 2% in the past year against an increase of 9.6% for the industry.
Image Source: Zacks Investment Research
AbbVie and Genmab announced an oncology collaboration deal in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates, which included epcoritamab. AbbVie and Genmab share commercial responsibilities for epcoritamab in the United States and Japan. AbbVie is responsible for further global commercialization. Genmab had filed the BLA for epcoritamab, a subcutaneous bispecific antibody, in October 2022. In the EU too, a marketing authorization application was validated by the European Medicines Agency in October.
AbbVie and Genmab are evaluating epcoritamab both as a monotherapy and as a combination regimen across lines of therapy in a range of hematologic malignancies. Some ongoing studies are a phase III study on epcoritamab as a monotherapy in patients with relapsed/refractory DLBCL and two other evaluating epcoritamab in combination in patients with newly diagnosed DLBCL and relapsed/refractory follicular lymphoma.
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked large drugmakers are Novo Nordisk NVO and Novartis NVS. While Novo Nordisk has a Zacks Rank of 1 (Strong Buy), Novartis has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Novo Nordisk’s 2023 earnings per share have increased from $4.43 to $4.95 over the past 30 days. Estimates for 2024 have jumped from $5.19 per share to $5.74 in the same timeframe. Novo Nordisk’s stock has surged 58.2% in the past year.
Novo Nordisk beat earnings expectations in three of the trailing four quarters. The company delivered a four-quarter earnings surprise of 0.35%, on average.
Estimates for Novartis’ earnings per share have increased from $6.55 to $6.67 over the past 60 days, while those for 2024 have gone up from $7.04 per share to $7.22 per share. Novartis’ stock has risen 11.2% in the past year.
Novartis beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 5.15%, on average.
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Novartis AG (NVS) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Genmab A/S Sponsored ADR (GMAB) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has granted accelerated approval to their T-cell engaging bispecific antibody epcoritamab for treating relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Image Source: Zacks Investment Research AbbVie and Genmab announced an oncology collaboration deal in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates, which included epcoritamab. Epkinly is the third approved blood cancer drug in AbbVie’s portfolio, the other two being Imbruvica and Venclexta. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has granted accelerated approval to their T-cell engaging bispecific antibody epcoritamab for treating relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Genmab A/S Sponsored ADR (GMAB) : Free Stock Analysis Report To read this article on Zacks.com click here. Epkinly is the third approved blood cancer drug in AbbVie’s portfolio, the other two being Imbruvica and Venclexta. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has granted accelerated approval to their T-cell engaging bispecific antibody epcoritamab for treating relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Genmab A/S Sponsored ADR (GMAB) : Free Stock Analysis Report To read this article on Zacks.com click here. Epkinly is the third approved blood cancer drug in AbbVie’s portfolio, the other two being Imbruvica and Venclexta. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has granted accelerated approval to their T-cell engaging bispecific antibody epcoritamab for treating relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Epkinly is the third approved blood cancer drug in AbbVie’s portfolio, the other two being Imbruvica and Venclexta. AbbVie’s stock has declined 2% in the past year against an increase of 9.6% for the industry. |
22533.0 | 2023-05-22 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-29 | 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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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. |
22534.0 | 2023-05-20 00:00:00 UTC | 3 Relatively Safe Stocks to Buy if a Recession Is on the Way | ABBV | https://www.nasdaq.com/articles/3-relatively-safe-stocks-to-buy-if-a-recession-is-on-the-way | nan | nan | We don't have a modern-day Paul Revere riding a horse through the streets shouting that a recession is coming. But we don't need one, as there are plenty of economists, analysts, and even the Federal Reserve warning that a recession is likely in 2023.
But just because a recession may be on the way, investors don't have to abandon the stock market. Here's why three Motley Fool contributors think that AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ) are relatively safe stocks to buy if a recession is declared this year.
Stay put through the transition
Prosper Junior Bakiny (AbbVie): It may be hard to believe that AbbVie is a safe stock right now. The company's shares recently took a tumble following poor first-quarter results. AbbVie's revenue and earnings dropped during the period. But that's something investors surely expected -- the drugmaker lost U.S. patent exclusivity for its blockbuster rheumatoid arthritis medicine, Humira, this year.
AbbVie's period of declining revenue could last a couple of years. However, the pharmaceutical giant remains a safe stock to buy for several reasons.
First, what AbbVie is going through isn't rare or unusual for drugmakers. Virtually every single pharma giant has had to deal with similar revenue-declining transition periods associated with patent cliffs at some point. The best remedy against that is the ability to develop new products to replace older ones, or in other words, a strong pipeline.
That brings us to our second point. AbbVie has already produced two key immunology products designed to replace Humira: Skyrizi and Rinvoq. These medicines' indications substantially overlap with Humira's. Management expects their collective peak annual revenue to surpass that of the company's former crown jewel by 2027. But with several dozen ongoing programs, AbbVie should be more than capable of adding more products to its portfolio over the years.
Last but not least, the drugmaker's ongoing revenue slump is unlikely to lead to it slashing its dividend either. AbbVie is a Dividend King, currently on its 51st consecutive year of payout increases (inherited in the years before 2013 from its parent company Abbott Laboratories). Management won't risk getting kicked out of this club. The company also offers a competitive dividend yield hovering around 4.1% and a conservative cash payout ratio of 43%, which leaves plenty more room for further dividend hikes.
A recession won't do much to disrupt AbbVie's prospects. Like other drugmakers, the company benefits from selling necessary goods that remain in demand even during downturns. And the regular payouts will help smooth out market losses in an economic meltdown. That's why AbbVie's stock is a buy in case a recession is on the way.
A rock-solid stock to buy and hold
David Jagielski (Gilead Sciences): Recession or not, Gilead Sciences is a business that's likely to perform well. The reason that seems probable is that the company focuses on areas of healthcare that require ongoing care, including oncology and HIV. Treatments for those illnesses don't stop because of what cycle the economy is in. And those are big areas of Gilead's operations.
They're also the areas of the company that are growing the fastest. For the first three months of 2023, it was oncology leading the way with 59% year-over-year revenue growth for Gilead Sciences. At $670 million in oncology-related revenue for the quarter, that still pales in comparison to the $4.2 billion that Gilead's HIV segment generated. But it's growing fast, and the company is putting more resources toward expanding its oncology business.
Earlier this month, the company announced that it acquired all the shares of XinThera, a privately held biotech company that focuses on developing treatments for cancer and immunological diseases. The transaction will help strengthen Gilead's pipeline in both oncology and inflammation.
Gilead also has a potential catalyst in its HIV business, which generated sales growth of 13% last quarter. In 2022, the U.S. Food and Drug Administration approved a twice-yearly injectable, Sunlenca, which will give patients with hard-to-treat HIV another viable treatment option. At its peak, the drug could bring in $1.5 billion in annual revenue.
In addition to its top-growing business units being in oncology and HIV, which should provide Gilead with long-term stability, the stock also pays an attractive dividend yield of 3.8%. That level is well above the S&P 500 average of 1.7%. With consistent profits, some solid business units, and a high dividend yield, Gilead is one of the safer stocks investors can be holding heading into a potential recession this year.
A longtime safe haven
Keith Speights (Johnson & Johnson): Investors have flocked to Johnson & Johnson as a safe haven during tumultuous times for decades. And for good reason.
The company is a healthcare giant with a market cap of over $400 billion. It's a Dividend King with 61 consecutive years of dividend increases. And perhaps most importantly, J&J's products typically enjoy strong demand even during economic downturns.
Johnson & Johnson no longer has household names such as Band-Aid and Listerine in its lineup. They now belong to the company's spinoff, KenVue.
However, J&J still markets pharmaceuticals and medical devices. Sales for the latter tend to hold up especially well during recessions for the simple reason that they're necessities for patients.
Many investors like Johnson & Johnson's reputation, track record, and financial strength. If the economy deteriorates, these attributes will likely become even more appealing.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories and Gilead Sciences. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why three Motley Fool contributors think that AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ) are relatively safe stocks to buy if a recession is declared this year. Stay put through the transition Prosper Junior Bakiny (AbbVie): It may be hard to believe that AbbVie is a safe stock right now. AbbVie's revenue and earnings dropped during the period. | Here's why three Motley Fool contributors think that AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ) are relatively safe stocks to buy if a recession is declared this year. Stay put through the transition Prosper Junior Bakiny (AbbVie): It may be hard to believe that AbbVie is a safe stock right now. AbbVie's revenue and earnings dropped during the period. | Here's why three Motley Fool contributors think that AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ) are relatively safe stocks to buy if a recession is declared this year. Stay put through the transition Prosper Junior Bakiny (AbbVie): It may be hard to believe that AbbVie is a safe stock right now. AbbVie's revenue and earnings dropped during the period. | Here's why three Motley Fool contributors think that AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ) are relatively safe stocks to buy if a recession is declared this year. Stay put through the transition Prosper Junior Bakiny (AbbVie): It may be hard to believe that AbbVie is a safe stock right now. AbbVie's revenue and earnings dropped during the period. |
22535.0 | 2023-05-20 00:00:00 UTC | 3 No-Brainer Dividend Stocks to Buy With $1,000 Right Now | ABBV | https://www.nasdaq.com/articles/3-no-brainer-dividend-stocks-to-buy-with-%241000-right-now | nan | nan | Paralysis analysis. It's what happens when you have so many alternatives to evaluate that overthinking causes you to be unable to make a decision.
This condition can easily occur when selecting dividend stocks. Over 4,000 stocks traded on U.S. exchanges offer dividends. But income-seeking investors don't have to suffer from paralysis analysis. Here are three no-brainer dividend stocks to buy with $1,000 right now.
1. Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC) offers a distribution yield of over 4.2% for its limited partnership shares (traded under the BEP ticker) and over 3.8% for its corporate shares (traded under the BEPC ticker). With either stock, you'll get a piece of the same underlying business.
That business is poised for tremendous growth. Brookfield Renewable currently operates hydroelectric, wind, solar, and distributed energy facilities that together generate roughly 25 gigawatts of power. The company's development pipeline should add another 110 gigawatts of capacity.
Are Brookfield Renewable's expansion plans overly ambitious? Not at all. Governments and major corporations across the world are pushing hard to reduce their carbon emissions. The demand for renewable energy will almost certainly continue to soar over the coming decades.
Brookfield Renewable shouldn't have a problem achieving its plans, either. CEO Connor Teskey stated in the first-quarter conference call that the company is on track to commission around 5 gigawatts of capacity this year. Brookfield also recently announced the acquisition of Australia's Origin Energy. This deal will enable Brookfield to add another 14 gigawatts of capacity.
The company expects to deliver total returns of between 12% and 15% per year on average over the long term. This translates to investors' money doubling every five to six years. That sounds like a no-brainer pick to me.
2. Enterprise Products Partners
While a transition to renewable energy is in progress, the use of fossil fuels won't diminish anytime soon. Actually, the demand for certain fossil fuels -- especially cleaner-burning natural gas and natural gas liquids -- could grow quite a bit. This makes Enterprise Products Partners (NYSE: EPD) a great option for income investors.
Enterprise is a midstream energy provider. It operates over 50,000 miles of pipeline plus other assets including natural gas processing plants, liquids storage facilities, and deepwater docks.
The company's dividend yield currently tops 7.5%. Even better, Enterprise has increased its distribution for 24 consecutive years. That streak is likely to continue.
Thanks to Enterprise's business model and financial strength, investors can depend on its dividend distributions. The company's revenue doesn't swing up and down along with commodity prices. Enterprise also avoids taking on too much debt and risk, which helps make its dividend one of the safest in the energy sector.
3. AbbVie
Some might be surprised to see AbbVie (NYSE: ABBV) on a list of no-brainer dividend stocks to buy. After all, the company's top-selling drug, Humira, lost U.S. patent exclusivity. The declining sales for Humira are dragging down AbbVie's total revenue, profits, and share price.
However, I'd argue that this scenario is what makes AbbVie a great contrarian pick right now. Many investors are only looking at the short-term prospects for the drugmaker, which indeed look dismal. But AbbVie's woes should only be temporary.
The company expects to return to growth in 2025. Two successors to Humira, Rinvoq and Skyrizi, are key factors behind that confidence. AbbVie believes the two drugs will together generate peak annual sales that exceed Humira's highest sales levels.
Investors will also be paid handsomely while they wait for AbbVie's business rebound. The company's dividend yield is over 4.1%. AbbVie is a Dividend King with 51 consecutive years of dividend increases. Look for the big drugmaker to extend its streak of dividend hikes.
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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 Some might be surprised to see AbbVie (NYSE: ABBV) on a list of no-brainer dividend stocks to buy. The declining sales for Humira are dragging down AbbVie's total revenue, profits, and share price. However, I'd argue that this scenario is what makes AbbVie a great contrarian pick right now. | See the 10 stocks *Stock Advisor returns as of May 15, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. AbbVie Some might be surprised to see AbbVie (NYSE: ABBV) on a list of no-brainer dividend stocks to buy. The declining sales for Humira are dragging down AbbVie's total revenue, profits, and share price. | AbbVie Some might be surprised to see AbbVie (NYSE: ABBV) on a list of no-brainer dividend stocks to buy. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. The declining sales for Humira are dragging down AbbVie's total revenue, profits, and share price. | See the 10 stocks *Stock Advisor returns as of May 15, 2023 Keith Speights has positions in AbbVie, Brookfield Renewable, Brookfield Renewable Partners, and Enterprise Products Partners. AbbVie Some might be surprised to see AbbVie (NYSE: ABBV) on a list of no-brainer dividend stocks to buy. The declining sales for Humira are dragging down AbbVie's total revenue, profits, and share price. |
22536.0 | 2023-05-19 00:00:00 UTC | Pharma Stock Roundup: FDA Nod to ABBV's Rinvoq for New Indication & Other Updates | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-fda-nod-to-abbvs-rinvoq-for-new-indication-other-updates | nan | nan | This week an FDA panel voted in favor of approving Pfizer’s PFE experimental maternal RSV vaccine candidate. The FDA approved AbbVie’s ABBV Rinvoq for its seventh indication, Crohn’s Disease and granted Fast Track Designation to Bayer’s BAYRY asundexian atrial fibrillation program. Roche’s RHHBY BTK inhibitor, fenebrutinib, significantly reduced brain lesions in people with relapsing forms of multiple sclerosis in a mid-stage study.
Recap of the Week’s Most Important Stories
FDA Approves AbbVie’s Rinvoq for Crohn’s Disease: The FDA approved AbbVie’s Rinvoq for the treatment of adult patients with moderately to severely active Crohn's disease for patients who have had an inadequate response or intolerance to one or more TNF blockers. The approval was based on results from two induction studies and one maintenance study, which showed that Rinvoq achieved the co-primary endpoints of clinical remission and endoscopic response as an induction and maintenance treatment. Crohn’s disease becomes the seventh FDA-approved indication for Rinvoq across gastroenterology, rheumatology and dermatology in the United States. It is already approved for treating rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy and ulcerative colitis in certain patients in several countries.
FDA Committee Votes in Favor of Pfizer’s RSV Vaccine for Maternal Immunization: Pfizer announced that the FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC) has voted in favor of its RSV bivalent vaccine candidate PF-06928316 or RSVpreF to help prevent RSV in infants through maternal immunization. The committee voted 10 to 4 on safety and 14 to 0 on effectiveness. The vaccine candidate is under FDA review, with a decision expected in August.
If approved by the FDA, RSVpreF will help prevent medically attended lower respiratory tract disease (MA-LRTD) and severe MA-LRTD caused by RSV in infants from birth up to six months of age by active immunization of pregnant individuals. Pfizer’s BLA seeking approval of the RSV vaccine for older adults (aged 60 and above) is already under priority review, with the FDA decision expected later this month. The VRBPAC had also voted in favor of the RSV vaccine for older adults in February 2023. The vaccine candidate is also under review for both older adults and maternal immunization in Europe.
Pfizer is planning a debt offering worth $31 billion to fund its pending acquisition of cancer drugmaker, Seagen SGEN. In March, Pfizer offered to buy Seagen for $229 per share in cash, which adds up to a total enterprise value of approximately $43 billion. Seagen’s acquisition is expected to strengthen Pfizer’s portfolio of cancer drugs by adding a class of antibody-drug conjugates (ADCs).
The bond sale is probably one of the largest debt offerings of all time. The debt offering, which will consist of eight tranches of notes, is expected to be closed on May 19. Pfizer said that BofA Securities, Citigroup, Goldman Sachs and J.P. Morgan are acting as the joint lead managers and joint book-running managers.
Roche’s BTK inhibitor, Fenebrutinib Meets Goals in Multiple Sclerosis Study: Roche’s data from a phase II study showed that BTK inhibitor fenebrutinib significantly reduced brain lesions in adults with relapsing forms of multiple sclerosis. The phase II FENopta study met its primary endpoint by reducing the total number of new gadolinium-enhancing T1 brain lesions, as measured by magnetic resonance imaging (MRI). The study also met its key secondary endpoint by significantly reducing the total number of new or enlarging T2 brain lesions compared to placebo. T1 lesions are a marker of active inflammation while T2 lesions represent the amount of lesion load.
FDA’s Fast Track Status to Bayer’s Stroke Prevention Candidate: The FDA granted fast track designation to Bayer’s oral FXIa inhibitor, asundexian (BAY2433334) as a potential treatment option for stroke prevention and systemic embolism in people with atrial fibrillation (AF). Asundexian already enjoys the FDA’s Fast Track Designation for the prevention of stroke in patients after a non-cardioembolic ischemic stroke. Asundexian is currently being evaluated in two large phase III multinational studies, OCEANIC-AF and OCEANIC-STROKE for stroke prevention.
The NYSE ARCA Pharmaceutical Index declined 1.67% in the last five trading sessions.
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Lilly rose the most (up 0.6%), while Merck declined the most (3%).
In the past six months, Lilly has risen the most (21.2%), while Pfizer has declined the most (24.3%).
(See the last pharma stock roundup here: BAYRY Mixed Q1 Results, AZN, RHHBY Regulatory/Pipeline Updates)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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 FDA approved AbbVie’s ABBV Rinvoq for its seventh indication, Crohn’s Disease and granted Fast Track Designation to Bayer’s BAYRY asundexian atrial fibrillation program. Recap of the Week’s Most Important Stories FDA Approves AbbVie’s Rinvoq for Crohn’s Disease: The FDA approved AbbVie’s Rinvoq for the treatment of adult patients with moderately to severely active Crohn's disease for patients who have had an inadequate response or intolerance to one or more TNF blockers. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Seagen Inc. (SGEN) : Free Stock Analysis Report To read this article on Zacks.com click here. | The FDA approved AbbVie’s ABBV Rinvoq for its seventh indication, Crohn’s Disease and granted Fast Track Designation to Bayer’s BAYRY asundexian atrial fibrillation program. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Seagen Inc. (SGEN) : Free Stock Analysis Report To read this article on Zacks.com click here. Recap of the Week’s Most Important Stories FDA Approves AbbVie’s Rinvoq for Crohn’s Disease: The FDA approved AbbVie’s Rinvoq for the treatment of adult patients with moderately to severely active Crohn's disease for patients who have had an inadequate response or intolerance to one or more TNF blockers. | Recap of the Week’s Most Important Stories FDA Approves AbbVie’s Rinvoq for Crohn’s Disease: The FDA approved AbbVie’s Rinvoq for the treatment of adult patients with moderately to severely active Crohn's disease for patients who have had an inadequate response or intolerance to one or more TNF blockers. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Seagen Inc. (SGEN) : Free Stock Analysis Report To read this article on Zacks.com click here. The FDA approved AbbVie’s ABBV Rinvoq for its seventh indication, Crohn’s Disease and granted Fast Track Designation to Bayer’s BAYRY asundexian atrial fibrillation program. | Recap of the Week’s Most Important Stories FDA Approves AbbVie’s Rinvoq for Crohn’s Disease: The FDA approved AbbVie’s Rinvoq for the treatment of adult patients with moderately to severely active Crohn's disease for patients who have had an inadequate response or intolerance to one or more TNF blockers. The FDA approved AbbVie’s ABBV Rinvoq for its seventh indication, Crohn’s Disease and granted Fast Track Designation to Bayer’s BAYRY asundexian atrial fibrillation program. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Seagen Inc. (SGEN) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22537.0 | 2023-05-19 00:00:00 UTC | US FDA approves Genmab-AbbVie's blood cancer therapy | ABBV | https://www.nasdaq.com/articles/us-fda-approves-genmab-abbvies-blood-cancer-therapy | nan | nan | May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO experimental blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday.
(Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber)
((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. | May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO experimental blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. (Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber) ((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. | May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO experimental blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. (Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber) ((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. | May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO experimental blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. (Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber) ((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. | May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO experimental blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. (Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber) ((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. |
22538.0 | 2023-05-19 00:00:00 UTC | US FDA approves Genmab-AbbVie's blood cancer therapy | ABBV | https://www.nasdaq.com/articles/us-fda-approves-genmab-abbvies-blood-cancer-therapy-0 | nan | nan | Adds details of the drug, background
May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday.
The drug, epcoritamab, to be sold under the brand name Epkinly was developed to treat a type of advanced large B-cell lymphoma, a cancer that starts in white blood cells.
Epcoritamab belongs to a class of drugs called bispecific antibodies that uses complex therapeutic proteins with the potential to latch onto the body's immune cells and attack cancer cells.
The approval makes epcoritamab the first of its kind to get the FDA's nod for the disease which has about 150,000 new cases each year globally, according to the companies.
Swiss drugmaker Roche ROG.S is developing glofitamab (Columvi) for the same indication and is under review by the FDA. The agency is expected to make a decision by July 1 this year.
(Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details of the drug, background May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. The drug, epcoritamab, to be sold under the brand name Epkinly was developed to treat a type of advanced large B-cell lymphoma, a cancer that starts in white blood cells. The approval makes epcoritamab the first of its kind to get the FDA's nod for the disease which has about 150,000 new cases each year globally, according to the companies. | Adds details of the drug, background May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. The drug, epcoritamab, to be sold under the brand name Epkinly was developed to treat a type of advanced large B-cell lymphoma, a cancer that starts in white blood cells. The approval makes epcoritamab the first of its kind to get the FDA's nod for the disease which has about 150,000 new cases each year globally, according to the companies. | Adds details of the drug, background May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. The drug, epcoritamab, to be sold under the brand name Epkinly was developed to treat a type of advanced large B-cell lymphoma, a cancer that starts in white blood cells. Epcoritamab belongs to a class of drugs called bispecific antibodies that uses complex therapeutic proteins with the potential to latch onto the body's immune cells and attack cancer cells. | Adds details of the drug, background May 19 (Reuters) - The U.S. Food and Drug Administration has approved AbbVie Inc ABBV.N and Danish drugmaker Genmab's GMAB.CO blood cancer therapy for adult patients who have received at least two prior lines of treatment, the companies said on Friday. The drug, epcoritamab, to be sold under the brand name Epkinly was developed to treat a type of advanced large B-cell lymphoma, a cancer that starts in white blood cells. Epcoritamab belongs to a class of drugs called bispecific antibodies that uses complex therapeutic proteins with the potential to latch onto the body's immune cells and attack cancer cells. |
22539.0 | 2023-05-19 00:00:00 UTC | AbbVie's (ABBV) Rinvoq Gets FDA Nod to Treat Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-rinvoq-gets-fda-nod-to-treat-crohns-disease | nan | nan | AbbVie ABBV announced the FDA approval of its immunology drug, Rinvoq (upadacitinib), a once-daily pill for the treatment of adults with moderately to severely active Crohn's disease who have had an inadequate response or intolerance to one or moretumor necrosis factor blockers. Rinvoq is one of AbbVie’s newer drugs. This approval by the FDA marks the seventh FDA-approved indication for Rinvoq across rheumatology, dermatology and gastroenterology.
Rinvoq is already approved for treating rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy and ulcerative colitis in certain patients in several countries.
In the past year, shares of AbbVie have lost 5% against the industry’s 9.4% rise.
Image Source: Zacks Investment Research
The FDA approval was based on positive data from two induction studies, U-EXCEED and U-EXCEL and one maintenance study, U-ENDURE. The company achieved both co-primary endpoints of endoscopic response and clinical remission, as well as key secondary endpoints of rapid clinical response and corticosteroid-free clinical remission, with statistical significance. In the induction studies, 45 mg dose of Rinvoq was used and dose strengths of 15 mg and 30 mg of Rinvoq were used in the maintenance study, compared with placebo.
The endoscopic response was observed in 34% and 46% of patients treated with a 45 mg dose of Rinvoq, in the two induction studies at week 12, respectively, compared with 3% and 13% of patients receiving placebo. In the maintenance study, 28% and 41% of patients treated with 15 mg and 30 mg doses of Rinvoq, respectively, achieved endoscopic response at week 52.
A clinical remission was achieved in 36% and 46% of patients treated with Rinvoq 45 mg, in the two induction studies at 12 weeks, respectively, compared with 18% and 23% of patients receiving placebo. Moreover, 42% and 55% of patients treated with Rinvoq 15 mg and 30 mg achieved clinical remission at 52 weeks in the maintenance study, compared with 14% of patients receiving placebo.
Crohn’s disease is a chronic and progressive disease that causes inflammation in the digestive tract. The symptoms of this disease include persistent diarrhea and abdominal pain. Due to the unpredictable nature of its symptoms, Crohn’s disease severely hampers the quality of life of patients living with this disease.
Per management, the study outcomes show that treatment with Rinvoq results in both early and long-term symptom relief in Crohn’s disease, along with evidence of a visible reduction of damage to the intestinal lining caused by excess inflammation.
Several phase III label-expanding studies of Rinvoq are currently ongoing in several indications, comprising rheumatoid arthritis, atopic dermatitis, psoriatic arthritis, axial spondyloarthritis, Crohn's disease, ulcerative colitis, giant cell arteritis and Takayasu arteritis.
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 from the overall medical sector include Novo Nordisk NVO, Novartis NVS and Allogene Therapeutics ALLO. While Novo Nordisk currently sports a Zacks Rank #1 (Strong Buy), Novartis and Allogene, both have a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimates for Novo Nordisk’s 2023 earnings per share have increased from $4.43 to $4.95. Shares of Novo Nordisk have gained 56.4% in the past year.
NVO beat estimates in three of the last four quarters and missed the mark on one occasion, delivering an earnings surprise of 0.35%, on average.
In the past 60 days, the Zacks Consensus Estimates for Novartis’ 2023 earnings per share have increased from $6.55 to $6.67. Shares of NVS have rallied 12.2% in the past year.
NVS beat estimates in each of the last trailing four quarters, delivering an earnings surprise of 5.15%, on average.
In the past 60 days, the Zacks Consensus Estimate for Allogene Therapeutics’ 2023 loss per share has narrowed from $2.50 to $2.32. In the past year, shares of Allogene Therapeutics have fallen by 18.7%.
ALLO beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 5.08%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV announced the FDA approval of its immunology drug, Rinvoq (upadacitinib), a once-daily pill for the treatment of adults with moderately to severely active Crohn's disease who have had an inadequate response or intolerance to one or moretumor necrosis factor blockers. Rinvoq is one of AbbVie’s newer drugs. In the past year, shares of AbbVie have lost 5% against the industry’s 9.4% rise. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced the FDA approval of its immunology drug, Rinvoq (upadacitinib), a once-daily pill for the treatment of adults with moderately to severely active Crohn's disease who have had an inadequate response or intolerance to one or moretumor necrosis factor blockers. Rinvoq is one of AbbVie’s newer drugs. | 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 Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced the FDA approval of its immunology drug, Rinvoq (upadacitinib), a once-daily pill for the treatment of adults with moderately to severely active Crohn's disease who have had an inadequate response or intolerance to one or moretumor necrosis factor blockers. | AbbVie ABBV announced the FDA approval of its immunology drug, Rinvoq (upadacitinib), a once-daily pill for the treatment of adults with moderately to severely active Crohn's disease who have had an inadequate response or intolerance to one or moretumor necrosis factor blockers. Rinvoq is one of AbbVie’s newer drugs. In the past year, shares of AbbVie have lost 5% against the industry’s 9.4% rise. |
22540.0 | 2023-05-19 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-28 | 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. |
22541.0 | 2023-05-18 00:00:00 UTC | Should Schwab U.S. Dividend Equity ETF (SCHD) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-schwab-u.s.-dividend-equity-etf-schd-be-on-your-investing-radar-7 | nan | nan | The Schwab U.S. Dividend Equity ETF (SCHD) was launched on 10/20/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $45.19 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 3.76%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 17.50% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 4.34% of total assets, followed by Pepsico Inc (PEP) and Cisco Systems Inc (CSCO).
The top 10 holdings account for about 41.77% of total assets under management.
Performance and Risk
SCHD seeks to match the performance of the Dow Jones U.S. Dividend 100 Index before fees and expenses. The Dow Jones U.S. Dividend 100 Index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios.
The ETF has lost about -6.32% so far this year and is down about -6.59% in the last one year (as of 05/18/2023). In the past 52-week period, it has traded between $66.43 and $79.12.
The ETF has a beta of 0.88 and standard deviation of 17.37% for the trailing three-year period, making it a medium risk choice in the space. With about 104 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Dividend Equity 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, SCHD is a great 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 $49.11 billion in assets, Vanguard Value ETF has $99.90 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Cisco Systems, Inc. (CSCO) : 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. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 4.34% of total assets, followed by Pepsico Inc (PEP) and Cisco Systems Inc (CSCO). Click to get this free report Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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 $45.19 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market. | Click to get this free report Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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 4.34% of total assets, followed by Pepsico Inc (PEP) and Cisco Systems Inc (CSCO). The Schwab U.S. Dividend Equity ETF (SCHD) was launched on 10/20/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | Click to get this free report Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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 4.34% of total assets, followed by Pepsico Inc (PEP) and Cisco Systems Inc (CSCO). Alternatives Schwab U.S. Dividend Equity 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 4.34% of total assets, followed by Pepsico Inc (PEP) and Cisco Systems Inc (CSCO). Click to get this free report Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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 Schwab U.S. Dividend Equity ETF (SCHD) was launched on 10/20/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. |
22542.0 | 2023-05-18 00:00:00 UTC | Which Pharmaceuticals Stock Is A Better Pick: Johnson & Johnson Or Eliquis' Maker? | ABBV | https://www.nasdaq.com/articles/which-pharmaceuticals-stock-is-a-better-pick%3A-johnson-johnson-or-eliquis-maker | nan | nan | We believe Bristol Myers Squibb stock (NYSE: BMY) is a better pick than its industry peer, Johnson & Johnson (NYSE: JNJ). J&J trades at a higher valuation of 4.4x trailing revenues, compared to 3.1x for BMS, and this valuation gap will likely narrow over the coming years in favor of BMS, in our view. While BMS has seen better revenue growth in recent years, J&J is more profitable and has a better financial position, as discussed below.
Looking at stock returns, BMY has fared slightly better with -5% returns this year vs. -10% returns for JNJ. However, both have underperformed the broader S&P500 index, up 8%. There is more to the comparison, and in the sections below, we discuss why we believe BMY stock will offer higher returns than JNJ stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. Bristol Myers Squibb: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. BMS’ Revenue Growth Is Better
BMS’ revenue growth has been much better, with a 23.7% average annual growth rate in the last three years, compared to 5.1% for J&J.
While J&J’s medical devices business faced headwinds in 2020 due to the pandemic’s impact, it rebounded in 2021. The pharmaceuticals segment saw a 14% rise in 2021 sales, and the medical devices segment sales were up 18%.
BMS’ revenue growth was bolstered by its Celgene acquisition in 2019.
If we look at the last twelve-month period, J&J has fared slightly better, with sales growth of 1.2% vs. -0.5% for BMS.
The growth for J&J’s medical devices and pharmaceuticals businesses slowed to 1% each in 2022. This can partly be attributed to lower contribution from the Covid-19 vaccine and falling sales for Remicade, which now faces biosimilar competition.
Although BMS has benefited from market share gains for some of its drugs, including its anticoagulant – Eliquis – the company faces biosimilar competition for its top-selling drug – Revlimid.
Our Johnson & Johnson Revenue Comparison and Bristol Myers Squibb Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, BMS’ revenue is expected to grow faster than J&J’s over the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 3% for J&J, compared to a 10% CAGR for BMS, based on Trefis Machine Learning analysis.
J&J’s pharmaceuticals business will likely benefit from market share gains for its cancer drug – Darzalex – and immunology drugs, Erleada and Tremfya. The company is currently in the process of spinning off its consumer healthcare business as a separately traded company – Kenvue – which has already filed for an IPO. The company completed the acquisition of heart pump maker – Abiomed – last year, and it is expected to aid the top-line growth of its MedTech segment.
For BMS, its Revlimid sales declined a significant 32% y-o-y to $2.3 billion in 2022. However, Opdivo sales were up 11%, and some of its newly approved drugs, including Abecma, Zeposia, Reblozyl, and Breyanzi, were up between 30% and 80%. Most of these drugs are potentially blockbuster drugs, and as they gain market share, their sales growth will likely more than offset the decline from Revlimid.
Note that we have different methodologies for companies negatively impacted by Covid and those not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to predict recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. J&J Is More Profitable
J&J’s operating margin has risen slightly from 24.5% in 2019 to 24.9% in 2022, while BMS’ operating margin declined from 22.6% to 18.0% over this period.
Looking at the last twelve-month period, J&J’s operating margin of 25.4% fares better than 19.7% for BMS.
Our Johnson & Johnson Operating Income Comparison and Bristol Myers Squibb Operating Income Comparison dashboards have more details.
BMS’ free cash flow margin of 28.3% is higher than 22.3% for J&J.
Looking at financial risk, J&J fares better with its 9.6% debt as a percentage of equity lower than 27.5% for BMS and its 12.6% cash as a percentage of assets higher than 9.6% for the latter, implying that J&J has a better debt position and more cash cushion.
3. The Net of It All
We see that BMS has demonstrated better revenue growth and is available at a comparatively lower valuation multiple. On the other hand, J&J is more profitable and has a better debt position and cash cushion, and this also explains its higher P/S multiple compared to BMS.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe BMS is the better choice of the two, given its lower valuation and better prospects.
If we compare the current valuation multiples to the historical averages, BMS fares better, with its stock currently trading at 3.1x trailing revenues vs. the last five-year average of 4.5x. In contrast, JNJ stock trades at 4.4x trailing revenues vs. the last five-year average of 4.9x.
Our Johnson & Johnson (JNJ) Valuation Ratios Comparison and Bristol Myers Squibb (BMY) Valuation Ratios Comparison have more details.
The table below summarizes our revenue and return expectations for J&J and BMS over the next three years and points to an expected return of 44% for BMS over this period vs. a 10% expected return for J&J, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Bristol Myers Squibb – which also provides more details on how we arrive at these numbers.
While BMY may outperform JNJ in the next three years, it is helpful to see how Johnson & Johnson’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 Amedisys vs. Amerco.
With higher inflation and the Fed raising interest rates, JNJ has seen a 10% fall this year. Can it drop more? See how low Johnson & Johnson 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? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JNJ Return -3% -10% 38%
BMY Return 2% -5% 17%
S&P 500 Return -1% 8% 85%
Trefis Multi-Strategy Portfolio -1% 8% 239%
[1] Month-to-date and year-to-date as of 5/16/2023
[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. | This can partly be attributed to lower contribution from the Covid-19 vaccine and falling sales for Remicade, which now faces biosimilar competition. The company completed the acquisition of heart pump maker – Abiomed – last year, and it is expected to aid the top-line growth of its MedTech segment. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. | Our Johnson & Johnson Operating Income Comparison and Bristol Myers Squibb Operating Income Comparison dashboards have more details. Our Johnson & Johnson (JNJ) Valuation Ratios Comparison and Bristol Myers Squibb (BMY) Valuation Ratios Comparison have more details. The table below summarizes our revenue and return expectations for J&J and BMS over the next three years and points to an expected return of 44% for BMS over this period vs. a 10% expected return for J&J, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Bristol Myers Squibb – which also provides more details on how we arrive at these numbers. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. Bristol Myers Squibb: Which Stock Is A Better Bet? BMS’ Revenue Growth Is Better BMS’ revenue growth has been much better, with a 23.7% average annual growth rate in the last three years, compared to 5.1% for J&J. The table below summarizes our revenue and return expectations for J&J and BMS over the next three years and points to an expected return of 44% for BMS over this period vs. a 10% expected return for J&J, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Bristol Myers Squibb – which also provides more details on how we arrive at these numbers. | There is more to the comparison, and in the sections below, we discuss why we believe BMY stock will offer higher returns than JNJ stock in the next three years. BMS’ Revenue Growth Is Better BMS’ revenue growth has been much better, with a 23.7% average annual growth rate in the last three years, compared to 5.1% for J&J. The table below summarizes our revenue and return expectations for J&J and BMS over the next three years and points to an expected return of 44% for BMS over this period vs. a 10% expected return for J&J, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Bristol Myers Squibb – which also provides more details on how we arrive at these numbers. |
22543.0 | 2023-05-18 00:00:00 UTC | EXPLAINER-The latest on tax credit rules in Biden's climate and drugs bill | ABBV | https://www.nasdaq.com/articles/explainer-the-latest-on-tax-credit-rules-in-bidens-climate-and-drugs-bill | nan | nan | By Jarrett Renshaw and Philip Blenkinsop
May 18 (Reuters) - U.S. President Joe Biden's Inflation Reduction Act (IRA), cheered by some Democrats and the White House as a milestone in the fight against climate change, has also rankled foreign allies and global companies with its economic protectionism and prompted a new subsidy race with Europe.
Since the $739 billion in costs and revenues measure, which also tackles rising health care costs, deficit reduction and enforcement at the Internal Revenue Service, passed into law in August, the administration has issued a series of highly-watched rules on how the tax credits that power its climate investments are earned, including the Made in America requirements that upset Group of Seven (G7) leaders and global CEOs.
Here's the latest:
ELECTRIC VEHICLE FRICTION
Biden's domestic policy is embodied in working to electrify roadways across the United States. Getting more electric vehicles on the roads is central to his climate change agenda, ensuring the vehicles are "Made in America" is part of his commitment to restore manufacturing jobs.
But the IRA's consumer tax credits are tightly linked to the cars' and batteries being made in the U.S., roiling allies in Europe and Asia whose companies sell into U.S. markets.
After a feverish push by EU and Japanese leaders for Washington concessions, there seems to be a broad acceptance that the wording of the Act will not change, beyond possible flexibility on critical raw materials.
NEW RACE FOR SUBSIDIES
Tesla Inc TSLA.Osaid in February that it had begun assembling batteries in Germany but will focus cell production in the United States thanks to IRA incentives, making it one of the first firms to declare a strategy shift prompted by the law.
Car makers Mercedes-Benz Group and Volkswagen-owned Audi VOWG_p.DE are weighing new investments in the U.S. to take advantage of new federal subsidies, including charging stations and expanding production of vehicles that qualify for U.S. tax credits.
Europe, looking for its own ways to attract domestic investment, loosened state aid rules for green industry projects in March; two electric vehicle battery makers recently announced they plan to spend around $11 billion on new factories there.
Sweden's Northvolt said it is set to pick Heide in northern Germany for its factory as long as subsidies are approved, estimated to be near $50 million. Taiwan's ProLogium announced a new plant in the French city of Dunkirk after France offered deal sweeteners and competitive power prices, executives from the company said.
However, some of the world’s biggest drugmakers are laying legal groundwork to fight the plan, arguing some elements of the plan are unconstitutional.
The first Medicare drug price reduction process begins in September, when the Centers for Medicare and Medicaid Services(CMS) identifies its 10 most costly drugs.
The blood thinner Eliquis from Bristol Myers Squibb (BMY.N) and Pfizer (PFE.N), Pfizer's breast cancer drug Ibrance and AbbVie's (ABBV.N) leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to the negotiations.
The legislation rules offers a mix of tax credits and other incentives to try and spur clean energy plants in the United States and reduce reliance on China for the parts that power them.
Solar and wind farms can apply for a 30 percent tax credit on the costs of their plants, without any domestic requirements, for example.
But China's dominance of the global solar industry has created a tricky calculus.
The U.S. Treasury Department said earlier this month it would offer a 10 percent bonus tax credit for facilities assembling solar panels in the United States, even if they import the critical silicon wafers used to make those panels from foreign countries. Roughly 90% of the world's silicon wafers are produced in China. The move angered U.S. companies who argue it fails to do enough to combat China.
(Reporting By Jarrett Renshaw and Philip Blenkinsop; Editing by Heather Timmons and Grant McCool)
((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The blood thinner Eliquis from Bristol Myers Squibb (BMY.N) and Pfizer (PFE.N), Pfizer's breast cancer drug Ibrance and AbbVie's (ABBV.N) leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to the negotiations. By Jarrett Renshaw and Philip Blenkinsop May 18 (Reuters) - U.S. President Joe Biden's Inflation Reduction Act (IRA), cheered by some Democrats and the White House as a milestone in the fight against climate change, has also rankled foreign allies and global companies with its economic protectionism and prompted a new subsidy race with Europe. Tesla Inc TSLA.Osaid in February that it had begun assembling batteries in Germany but will focus cell production in the United States thanks to IRA incentives, making it one of the first firms to declare a strategy shift prompted by the law. | The blood thinner Eliquis from Bristol Myers Squibb (BMY.N) and Pfizer (PFE.N), Pfizer's breast cancer drug Ibrance and AbbVie's (ABBV.N) leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to the negotiations. Since the $739 billion in costs and revenues measure, which also tackles rising health care costs, deficit reduction and enforcement at the Internal Revenue Service, passed into law in August, the administration has issued a series of highly-watched rules on how the tax credits that power its climate investments are earned, including the Made in America requirements that upset Group of Seven (G7) leaders and global CEOs. Europe, looking for its own ways to attract domestic investment, loosened state aid rules for green industry projects in March; two electric vehicle battery makers recently announced they plan to spend around $11 billion on new factories there. | The blood thinner Eliquis from Bristol Myers Squibb (BMY.N) and Pfizer (PFE.N), Pfizer's breast cancer drug Ibrance and AbbVie's (ABBV.N) leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to the negotiations. By Jarrett Renshaw and Philip Blenkinsop May 18 (Reuters) - U.S. President Joe Biden's Inflation Reduction Act (IRA), cheered by some Democrats and the White House as a milestone in the fight against climate change, has also rankled foreign allies and global companies with its economic protectionism and prompted a new subsidy race with Europe. Since the $739 billion in costs and revenues measure, which also tackles rising health care costs, deficit reduction and enforcement at the Internal Revenue Service, passed into law in August, the administration has issued a series of highly-watched rules on how the tax credits that power its climate investments are earned, including the Made in America requirements that upset Group of Seven (G7) leaders and global CEOs. | The blood thinner Eliquis from Bristol Myers Squibb (BMY.N) and Pfizer (PFE.N), Pfizer's breast cancer drug Ibrance and AbbVie's (ABBV.N) leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to the negotiations. By Jarrett Renshaw and Philip Blenkinsop May 18 (Reuters) - U.S. President Joe Biden's Inflation Reduction Act (IRA), cheered by some Democrats and the White House as a milestone in the fight against climate change, has also rankled foreign allies and global companies with its economic protectionism and prompted a new subsidy race with Europe. The legislation rules offers a mix of tax credits and other incentives to try and spur clean energy plants in the United States and reduce reliance on China for the parts that power them. |
22544.0 | 2023-05-17 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-27 | 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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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. |
22545.0 | 2023-05-16 00:00:00 UTC | Notable Tuesday Option Activity: PENN, ABBV, KEYS | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-penn-abbv-keys | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in PENN Entertainment Inc (Symbol: PENN), where a total volume of 11,973 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 41% of PENN's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $35 strike put option expiring January 17, 2025, with 4,470 contracts trading so far today, representing approximately 447,000 underlying shares of PENN. Below is a chart showing PENN's trailing twelve month trading history, with the $35 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,391 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 40.7% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $160 strike put option expiring May 19, 2023, with 2,241 contracts trading so far today, representing approximately 224,100 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Keysight Technologies Inc (Symbol: KEYS) options are showing a volume of 4,747 contracts thus far today. That number of contracts represents approximately 474,700 underlying shares, working out to a sizeable 40.2% of KEYS's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $150 strike call option expiring May 19, 2023, with 999 contracts trading so far today, representing approximately 99,900 underlying shares of KEYS. Below is a chart showing KEYS's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for PENN options, ABBV options, or KEYS 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 $160 strike put option expiring May 19, 2023, with 2,241 contracts trading so far today, representing approximately 224,100 underlying shares of ABBV. Below is a chart showing PENN's trailing twelve month trading history, with the $35 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,391 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 40.7% of ABBV's average daily trading volume over the past month, of 5.5 million shares. | Below is a chart showing PENN's trailing twelve month trading history, with the $35 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,391 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 40.7% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $160 strike put option expiring May 19, 2023, with 2,241 contracts trading so far today, representing approximately 224,100 underlying shares of ABBV. | That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 40.7% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Below is a chart showing PENN's trailing twelve month trading history, with the $35 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,391 contracts thus far today. Particularly high volume was seen for the $160 strike put option expiring May 19, 2023, with 2,241 contracts trading so far today, representing approximately 224,100 underlying shares of ABBV. | Below is a chart showing KEYS's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for PENN options, ABBV options, or KEYS options, visit StockOptionsChannel.com. Below is a chart showing PENN's trailing twelve month trading history, with the $35 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,391 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 40.7% of ABBV's average daily trading volume over the past month, of 5.5 million shares. |
22546.0 | 2023-05-16 00:00:00 UTC | AstraZeneca to leave leading U.S. drug lobby group | ABBV | https://www.nasdaq.com/articles/astrazeneca-to-leave-leading-u.s.-drug-lobby-group-0 | nan | nan | By Maggie Fick
LONDON, May 16 (Reuters) - AstraZeneca AZN.L has decided to leave the main U.S. drug lobby group, the Pharmaceutical Research and Manufacturers of America (PhRMA), and pursue other ways of engaging in advocacy at the state and federal level, the company said.
AstraZeneca decided not to continue its membership after a recent assessment of whether it was "the most productive and effective use of (company) resources", a spokesperson for the British drugmaker said in an emailed statement.
PhRMA said in a separate emailed statement that AstraZeneca had decided not to renew its membership for the second half of 2023.
The news, first reported by Politico, marks the trade body's third major departure in six months. AstraZeneca's exit follows those of AbbVie, maker of blockbuster arthritis drug Humira, and Teva, a leading manufacturer of generic drugs.
AstraZeneca will redirect the funds previously used on its PhRMA membership to continue U.S. advocacy efforts with state and federal policymakers, its statement read.
The U.S. is the largest national market for all big pharma companies. Drugmakers suffered a rare defeat last year in failing to stop the Inflation Reduction Act, which allows the government to negotiate prices on certain drugs.
(Reporting by Maggie Fick Editing by David Goodman and Mark Potter)
((maggie.fick@thomsonreuters.com; +44 7890 916706;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AstraZeneca's exit follows those of AbbVie, maker of blockbuster arthritis drug Humira, and Teva, a leading manufacturer of generic drugs. By Maggie Fick LONDON, May 16 (Reuters) - AstraZeneca AZN.L has decided to leave the main U.S. drug lobby group, the Pharmaceutical Research and Manufacturers of America (PhRMA), and pursue other ways of engaging in advocacy at the state and federal level, the company said. AstraZeneca decided not to continue its membership after a recent assessment of whether it was "the most productive and effective use of (company) resources", a spokesperson for the British drugmaker said in an emailed statement. | AstraZeneca's exit follows those of AbbVie, maker of blockbuster arthritis drug Humira, and Teva, a leading manufacturer of generic drugs. AstraZeneca decided not to continue its membership after a recent assessment of whether it was "the most productive and effective use of (company) resources", a spokesperson for the British drugmaker said in an emailed statement. PhRMA said in a separate emailed statement that AstraZeneca had decided not to renew its membership for the second half of 2023. | AstraZeneca's exit follows those of AbbVie, maker of blockbuster arthritis drug Humira, and Teva, a leading manufacturer of generic drugs. By Maggie Fick LONDON, May 16 (Reuters) - AstraZeneca AZN.L has decided to leave the main U.S. drug lobby group, the Pharmaceutical Research and Manufacturers of America (PhRMA), and pursue other ways of engaging in advocacy at the state and federal level, the company said. AstraZeneca decided not to continue its membership after a recent assessment of whether it was "the most productive and effective use of (company) resources", a spokesperson for the British drugmaker said in an emailed statement. | AstraZeneca's exit follows those of AbbVie, maker of blockbuster arthritis drug Humira, and Teva, a leading manufacturer of generic drugs. The news, first reported by Politico, marks the trade body's third major departure in six months. AstraZeneca will redirect the funds previously used on its PhRMA membership to continue U.S. advocacy efforts with state and federal policymakers, its statement read. |
22547.0 | 2023-05-16 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-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 -9.1% over the past month versus the Zacks S&P 500 composite's +0.1% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 0.4% 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
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
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 +2.8% 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 +0.5%.
For the next fiscal year, the consensus earnings estimate of $11.03 indicates a change of +0.5% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AbbVie, the consensus sales estimate for the current quarter of $13.52 billion indicates a year-over-year change of -7.3%. For the current and next fiscal years, $52.57 billion and $53.05 billion estimates indicate -9.5% and +0.9% changes, 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.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 0.4% 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 gained 0.4% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). 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 gained 0.4% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). 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 gained 0.4% over this period. |
22548.0 | 2023-05-15 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-26 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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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. |
22549.0 | 2023-05-15 00:00:00 UTC | Allergan Aesthetics Says FDA Approves SKINVIVE By JUVEDERM | ABBV | https://www.nasdaq.com/articles/allergan-aesthetics-says-fda-approves-skinvive-by-juvederm | nan | nan | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced Monday the U.S. FDA approval of SKINVIVE by JUVEDERM to improve skin smoothness of the cheeks in adults over the age of 21.
SKINVIVE by JUVEDERM is the first and only hyaluronic acid (HA) intradermal microdroplet injection for skin smoothness available in the U.S. with results lasting through six months with optimal treatment.
SKINVIVE by JUVEDERM is a smooth, injectable HA gel that contains a small amount of local anesthetic (lidocaine).1 Unlike other facial injectables that enhance and augment the treatment area, SKINVIVE by JUVEDERM improves skin quality in the cheeks by smoothing the skin and increasing hydration.
SKINVIVE by JUVEDERM is a specialized, smooth, hydrating gel that flows easily into the skin and is approved for all Fitzpatrick Skin Types I-VI, lightest to darkest, addressing an important unmet need in the skin quality category.
Allergan Aesthetics anticipates that SKINVIVE by JUVEDERM will be broadly commercially available within the next six months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced Monday the U.S. FDA approval of SKINVIVE by JUVEDERM to improve skin smoothness of the cheeks in adults over the age of 21. SKINVIVE by JUVEDERM is the first and only hyaluronic acid (HA) intradermal microdroplet injection for skin smoothness available in the U.S. with results lasting through six months with optimal treatment. SKINVIVE by JUVEDERM is a smooth, injectable HA gel that contains a small amount of local anesthetic (lidocaine).1 Unlike other facial injectables that enhance and augment the treatment area, SKINVIVE by JUVEDERM improves skin quality in the cheeks by smoothing the skin and increasing hydration. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced Monday the U.S. FDA approval of SKINVIVE by JUVEDERM to improve skin smoothness of the cheeks in adults over the age of 21. SKINVIVE by JUVEDERM is a smooth, injectable HA gel that contains a small amount of local anesthetic (lidocaine).1 Unlike other facial injectables that enhance and augment the treatment area, SKINVIVE by JUVEDERM improves skin quality in the cheeks by smoothing the skin and increasing hydration. SKINVIVE by JUVEDERM is a specialized, smooth, hydrating gel that flows easily into the skin and is approved for all Fitzpatrick Skin Types I-VI, lightest to darkest, addressing an important unmet need in the skin quality category. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced Monday the U.S. FDA approval of SKINVIVE by JUVEDERM to improve skin smoothness of the cheeks in adults over the age of 21. SKINVIVE by JUVEDERM is a smooth, injectable HA gel that contains a small amount of local anesthetic (lidocaine).1 Unlike other facial injectables that enhance and augment the treatment area, SKINVIVE by JUVEDERM improves skin quality in the cheeks by smoothing the skin and increasing hydration. SKINVIVE by JUVEDERM is a specialized, smooth, hydrating gel that flows easily into the skin and is approved for all Fitzpatrick Skin Types I-VI, lightest to darkest, addressing an important unmet need in the skin quality category. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced Monday the U.S. FDA approval of SKINVIVE by JUVEDERM to improve skin smoothness of the cheeks in adults over the age of 21. SKINVIVE by JUVEDERM is the first and only hyaluronic acid (HA) intradermal microdroplet injection for skin smoothness available in the U.S. with results lasting through six months with optimal treatment. SKINVIVE by JUVEDERM is a smooth, injectable HA gel that contains a small amount of local anesthetic (lidocaine).1 Unlike other facial injectables that enhance and augment the treatment area, SKINVIVE by JUVEDERM improves skin quality in the cheeks by smoothing the skin and increasing hydration. |
22550.0 | 2023-05-15 00:00:00 UTC | IXJ, MRK, ABBV, PFE: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/ixj-mrk-abbv-pfe%3A-etf-outflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $154.8 million dollar outflow -- that's a 3.6% decrease week over week (from 50,450,000 to 48,650,000). Among the largest underlying components of IXJ, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.5%, AbbVie Inc (Symbol: ABBV) is off about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 0.3%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average:
Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.99. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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ETFs Holding BHLB
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 IXJ, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.5%, AbbVie Inc (Symbol: ABBV) is off about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 0.3%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.99. 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 IXJ, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.5%, AbbVie Inc (Symbol: ABBV) is off about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 0.3%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.99. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IXJ, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.5%, AbbVie Inc (Symbol: ABBV) is off about 0.1%, and Pfizer Inc (Symbol: PFE) is lower 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 iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $154.8 million dollar outflow -- that's a 3.6% decrease week over week (from 50,450,000 to 48,650,000). For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $74.50 per share, with $88.18 as the 52 week high point — that compares with a last trade of $85.99. | Among the largest underlying components of IXJ, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.5%, AbbVie Inc (Symbol: ABBV) is off about 0.1%, and Pfizer Inc (Symbol: PFE) is lower 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 iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $154.8 million dollar outflow -- that's a 3.6% decrease week over week (from 50,450,000 to 48,650,000). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. |
22551.0 | 2023-05-12 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-7 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 46 most recent 13F filings for the 03/31/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 22 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Milestone Advisory Partners Existing UNCH -$3
L2 Asset Management LLC Existing -1,163 -$211
Curbstone Financial Management Corp Existing -200 -$59
Cyrus J. Lawrence LLC Existing -525 -$87
Inceptionr LLC NEW +9,945 +$1,585
Penn Capital Management Company LLC NEW +2,169 +$346
TCTC Holdings LLC Existing +706 -$232
Zuckerman Investment Group LLC Existing -265 -$208
Orleans Capital Management Corp LA Existing -500 -$154
Trellis Advisors LLC Existing +24 -$3
Stonebridge Capital Advisors LLC Existing -59,526 -$9,625
Miramar Capital LLC Existing +784 -$129
Cooper Haims Advisors LLC Existing -125 -$29
Brandywine Global Investment Management LLC Existing -35,844 -$8,283
Independent Advisor Alliance Existing +3,076 +$217
Bollard Group LLC Existing +23 -$6
Bridgecreek Investment Management LLC Existing UNCH -$25
Goepper Burkhardt LLC Existing +1 -$8
Philadelphia Trust Co. Existing -15,858 -$3,034
Gallacher Capital Management LLC Existing +799 +$125
Cambridge Trust Co. Existing -2,118 -$418
Banco de Sabadell S.A Existing +359 +$55
Aggregate Change: -98,238 -$20,186
In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 12/31/2022 to 03/31/2023, with 10 having decreased their positions and 2 new positions. Worth noting is that FORA Capital LLC, included in this recent batch of 13F filers, exited ABBV common stock as of 03/31/2023.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 03/31/2023 reporting period (out of the 4,163 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 12/31/2022 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds reduced their holdings by 9,256,922 shares in the aggregate, from 331,976,314 down to 322,719,392 for a share count decline of approximately -2.79%. The overall top three funds holding ABBV on 03/31/2023 were:
» FUND SHARES OF ABBV HELD
1. JPMorgan Chase & Co. 57,066,222
2. Bank of New York Mellon Corp 20,188,059
3. FMR LLC 12,885,486
4-10 Find out the full Top 10 Hedge Funds Holding ABBV »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV).
10 S&P 500 Components Hedge Funds Are Buying »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 46 most recent 13F filings for the 03/31/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 22 of these funds. Worth noting is that FORA Capital LLC, included in this recent batch of 13F filers, exited ABBV common stock as of 03/31/2023. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV). | At Holdings Channel, we have reviewed the latest batch of the 46 most recent 13F filings for the 03/31/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 22 of these funds. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: Existing -2,118 -$418 Banco de Sabadell S.A Existing +359 +$55 Aggregate Change: -98,238 -$20,186 In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 12/31/2022 to 03/31/2023, with 10 having decreased their positions and 2 new positions. | Existing -2,118 -$418 Banco de Sabadell S.A Existing +359 +$55 Aggregate Change: -98,238 -$20,186 In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 12/31/2022 to 03/31/2023, with 10 having decreased their positions and 2 new positions. 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 46 most recent 13F filings for the 03/31/2023 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 22 of these funds. | Existing -2,118 -$418 Banco de Sabadell S.A Existing +359 +$55 Aggregate Change: -98,238 -$20,186 In terms of shares owned, we count 8 of the above funds having increased existing ABBV positions from 12/31/2022 to 03/31/2023, with 10 having decreased their positions and 2 new positions. Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 03/31/2023 reporting period (out of the 4,163 we looked at in total). 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. |
22552.0 | 2023-05-12 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-25 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Factor-Based Stock Portfolios
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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. |
22553.0 | 2023-05-11 00:00:00 UTC | Is WisdomTree U.S. High Dividend ETF (DHS) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-high-dividend-etf-dhs-a-strong-etf-right-now-6 | nan | nan | The WisdomTree U.S. High Dividend ETF (DHS) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large 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.
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.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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
Managed by Wisdomtree, DHS has amassed assets over $1.25 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. DHS seeks to match the performance of the WisdomTree U.S. High Dividend Index before fees and expenses.
The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.30%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For DHS, it has heaviest allocation in the Energy sector --about 19.90% of the portfolio --while Financials and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX).
DHS's top 10 holdings account for about 40.02% of its total assets under management.
Performance and Risk
So far this year, DHS has lost about -7.26%, and is down about -3.98% in the last one year (as of 05/11/2023). During this past 52-week period, the fund has traded between $75.81 and $90.88.
The ETF has a beta of 0.81 and standard deviation of 16.46% for the trailing three-year period, making it a medium risk choice in the space. With about 392 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.27 billion in assets, Vanguard Value ETF has $100.12 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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WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. High Dividend ETF (DHS) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. High Dividend ETF (DHS) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. |
22554.0 | 2023-05-11 00:00:00 UTC | Should You Invest in the Vanguard Health Care ETF (VHT)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-health-care-etf-vht-7 | nan | nan | The Vanguard Health Care ETF (VHT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $17.22 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. VHT seeks to match the performance of the MSCI US Investable Market Health Care 25/50 Index before fees and expenses.
The MSCI US Investable Market Health Care 25/50 Index is made up of stocks of U.S. companies within the health care sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.36%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Unitedhealth Group Inc. (UNH) accounts for about 8.05% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc. (ABBV).
Performance and Risk
So far this year, VHT has lost about -0.79%, and is up roughly 7.38% in the last one year (as of 05/11/2023). During this past 52-week period, the fund has traded between $219.51 and $255.96.
The ETF has a beta of 0.73 and standard deviation of 16.49% for the trailing three-year period, making it a medium risk choice in the space. With about 409 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Health Care ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VHT is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Healthcare ETF (IXJ) tracks S&P Global 1200 Healthcare Sector Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. IShares Global Healthcare ETF has $4.36 billion in assets, Health Care Select Sector SPDR ETF has $40.39 billion. IXJ has an expense ratio of 0.40% and XLV charges 0.10%.
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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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
Vanguard Health Care ETF (VHT): ETF Research Reports
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
iShares Global Healthcare ETF (IXJ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Unitedhealth Group Inc. (UNH) accounts for about 8.05% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc. (ABBV). Click to get this free report Vanguard Health Care ETF (VHT): ETF Research Reports UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports iShares Global Healthcare ETF (IXJ): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $17.22 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. | Click to get this free report Vanguard Health Care ETF (VHT): ETF Research Reports UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports iShares Global Healthcare ETF (IXJ): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Unitedhealth Group Inc. (UNH) accounts for about 8.05% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc. (ABBV). IShares Global Healthcare ETF (IXJ) tracks S&P Global 1200 Healthcare Sector Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. | Click to get this free report Vanguard Health Care ETF (VHT): ETF Research Reports UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports iShares Global Healthcare ETF (IXJ): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Unitedhealth Group Inc. (UNH) accounts for about 8.05% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc. (ABBV). IShares Global Healthcare ETF (IXJ) tracks S&P Global 1200 Healthcare Sector Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. | Looking at individual holdings, Unitedhealth Group Inc. (UNH) accounts for about 8.05% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc. (ABBV). Click to get this free report Vanguard Health Care ETF (VHT): ETF Research Reports UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports iShares Global Healthcare ETF (IXJ): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Health Care ETF (VHT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market. |
22555.0 | 2023-05-10 00:00:00 UTC | Unusual Put Option Trade in Abbvie (ABBV) Worth $4,742.50K | ABBV | https://www.nasdaq.com/articles/unusual-put-option-trade-in-abbvie-abbv-worth-%244742.50k | nan | nan | On May 10, 2023 at 15:19:36 ET an unusually large $4,742.50K block of Put contracts in Abbvie (ABBV) was bought, with a strike price of $160.00 / share, expiring in 9 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.53 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 4512 funds or institutions reporting positions in Abbvie. This is an increase of 69 owner(s) or 1.55% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.83%, a decrease of 8.02%. Total shares owned by institutions increased in the last three months by 0.67% to 1,435,581K shares.
The put/call ratio of ABBV is 0.86, indicating a bullish outlook.
Analyst Price Forecast Suggests 14.68% Upside
As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The forecasts range from a low of 136.35 to a high of $210.00. The average price target represents an increase of 14.68% from its latest reported closing price of 146.83.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. The projected annual non-GAAP EPS is 11.88.
What are Other Shareholders Doing?
Jpmorgan Chase holds 60,910K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 58,479K shares, representing an increase of 3.99%. The firm increased its portfolio allocation in ABBV by 15.14% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 53,756K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 52,745K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in ABBV by 13.33% over the last quarter.
Capital International Investors holds 47,099K shares representing 2.67% ownership of the company. In it's prior filing, the firm reported owning 45,827K shares, representing an increase of 2.70%. The firm increased its portfolio allocation in ABBV by 13.88% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,882K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 40,081K shares, representing an increase of 1.96%. The firm increased its portfolio allocation in ABBV by 13.15% over the last quarter.
Capital Research Global Investors holds 36,712K shares representing 2.08% ownership of the company. In it's prior filing, the firm reported owning 36,193K shares, representing an increase of 1.41%. The firm increased its portfolio allocation in ABBV by 12.36% over the last quarter.
Abbvie Declares $1.48 Dividend
On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of April 14, 2023 will receive the payment on May 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $146.83 / share, the stock's dividend yield is 4.03%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=237).
The current dividend yield is 0.90 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.38. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
See all Abbvie regulatory filings.
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. | On May 10, 2023 at 15:19:36 ET an unusually large $4,742.50K block of Put contracts in Abbvie (ABBV) was bought, with a strike price of $160.00 / share, expiring in 9 day(s) (on May 19, 2023). AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Fintel tracks all large options trades, and the premium spent on this trade was 3.53 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. | On May 10, 2023 at 15:19:36 ET an unusually large $4,742.50K block of Put contracts in Abbvie (ABBV) was bought, with a strike price of $160.00 / share, expiring in 9 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.53 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. There are 4512 funds or institutions reporting positions in Abbvie. | Abbvie Declares $1.48 Dividend On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). On May 10, 2023 at 15:19:36 ET an unusually large $4,742.50K block of Put contracts in Abbvie (ABBV) was bought, with a strike price of $160.00 / share, expiring in 9 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.53 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. | Analyst Price Forecast Suggests 14.68% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. On May 10, 2023 at 15:19:36 ET an unusually large $4,742.50K block of Put contracts in Abbvie (ABBV) was bought, with a strike price of $160.00 / share, expiring in 9 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.53 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. |
22556.0 | 2023-05-10 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-24 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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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. |
22557.0 | 2023-05-10 00:00:00 UTC | Should WisdomTree U.S. High Dividend ETF (DHS) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-high-dividend-etf-dhs-be-on-your-investing-radar-7 | nan | nan | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.26 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.28%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 19.80% of the portfolio. Financials and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX).
The top 10 holdings account for about 40.02% of total assets under management.
Performance and Risk
DHS seeks to match the performance of the WisdomTree U.S. High Dividend Index before fees and expenses. The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.
The ETF has lost about -6.94% so far this year and is down about -4.28% in the last one year (as of 05/10/2023). In the past 52-week period, it has traded between $75.81 and $90.88.
The ETF has a beta of 0.81 and standard deviation of 16.47% for the trailing three-year period, making it a medium risk choice in the space. With about 392 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DHS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.32 billion in assets, Vanguard Value ETF has $100.29 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund launched on 06/16/2006. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund launched on 06/16/2006. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Alternatives WisdomTree U.S. High Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.82% of total assets, followed by Abbvie Inc (ABBV) and Chevron Corp (CVX). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund launched on 06/16/2006. |
22558.0 | 2023-05-10 00:00:00 UTC | Should You Buy Merck Stock At $120? | ABBV | https://www.nasdaq.com/articles/should-you-buy-merck-stock-at-%24120 | nan | nan | Merck stock (NYSE: MRK) is up 5% in a month, faring slightly better than the broader markets, with the S&P500 up 1%. Although the company posted upbeat Q1 results late last month, we believe MRK stock is fully valued. Merck’s revenues were down 9% to $14.5 billion in Q1’23, compared to our forecast of $13.9 billion. This decline in revenue can primarily be attributed to lower sales for its Covid-19 antiviral pill – Lagevrio. Excluding Lagevrio, the company’s top line expanded by 11%. This growth was driven by continued market share gains and strong performance for the world’s biggest drug (by revenue) – Keytruda – based on expected 2023 sales of about $23 billion, topping the likes of AbbVie’s Humira and Pfizer’s Covid-19 vaccine. While Keytruda sales were up 20% to $5.8 billion in Q1, Merck’s Gardasil continued to grow strongly, with its sales rising 35% y-o-y to $2.0 billion.
The company’s gross margins improved by 670 bps to 72.9% in Q1 due to a favorable impact of product mix, including lower sales of its low-margin drug – Lagevrio. However, Merck’s operating margin plunged over 900 bps to 26% in Q1’23 due to a $1.2 billion charge for the acquisition of Imago. Our Merck Operating Income Comparison dashboard has more details. The earnings of $1.40 on a per share and adjusted basis were down 35% from $2.14 in the prior-year quarter, and this compares with our estimate of $1.36. The decline in earnings can be attributed to lower sales and charges related to the Imago acquisition.
Not only did Merck post upbeat Q1 results, but it also raised its full-year outlook. It now expects its sales to be in the range of $57.7 billion and $58.9 billion, compared to its previous guidance of $52.7 billion and $58.7 billion. Similarly, it now expects earnings of $6.88 to $7.00 on a per-share and adjusted basis, vs. its previous outlook of $6.80 and $6.95.
Looking at valuation, we estimate Merck’s Valuation to be $112 per share, slightly below its current market price of $118. At its current levels, MRK is trading a forward P/E multiple of 17x based on our EPS forecast of $6.95 in 2023, slightly higher than the last three-year average of 14x, implying that MRK stock is fully priced. A slight rise in the P/E multiple is justified, given that the company should benefit from its recent acquisitions, resulting in better earnings growth in the coming years. While we don’t see any significant downside risk for MRK from the current levels, investors will likely be better off waiting for a dip to enter, in our view.
While MRK stock looks 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 that offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite higher inflation and the Fed raising interest rates, Merck stock has risen 6% this year. But can it drop from here? 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? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return 2% 6% 100%
S&P 500 Return -1% 8% 85%
Trefis Multi-Strategy Portfolio 0% 8% 240%
[1] Month-to-date and year-to-date as of 5/8/2023
[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. | This growth was driven by continued market share gains and strong performance for the world’s biggest drug (by revenue) – Keytruda – based on expected 2023 sales of about $23 billion, topping the likes of AbbVie’s Humira and Pfizer’s Covid-19 vaccine. The company’s gross margins improved by 670 bps to 72.9% in Q1 due to a favorable impact of product mix, including lower sales of its low-margin drug – Lagevrio. While we don’t see any significant downside risk for MRK from the current levels, investors will likely be better off waiting for a dip to enter, in our view. | This growth was driven by continued market share gains and strong performance for the world’s biggest drug (by revenue) – Keytruda – based on expected 2023 sales of about $23 billion, topping the likes of AbbVie’s Humira and Pfizer’s Covid-19 vaccine. Although the company posted upbeat Q1 results late last month, we believe MRK stock is fully valued. Total [2] MRK Return 2% 6% 100% S&P 500 Return -1% 8% 85% Trefis Multi-Strategy Portfolio 0% 8% 240% [1] Month-to-date and year-to-date as of 5/8/2023 [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. | This growth was driven by continued market share gains and strong performance for the world’s biggest drug (by revenue) – Keytruda – based on expected 2023 sales of about $23 billion, topping the likes of AbbVie’s Humira and Pfizer’s Covid-19 vaccine. While Keytruda sales were up 20% to $5.8 billion in Q1, Merck’s Gardasil continued to grow strongly, with its sales rising 35% y-o-y to $2.0 billion. It now expects its sales to be in the range of $57.7 billion and $58.9 billion, compared to its previous guidance of $52.7 billion and $58.7 billion. | This growth was driven by continued market share gains and strong performance for the world’s biggest drug (by revenue) – Keytruda – based on expected 2023 sales of about $23 billion, topping the likes of AbbVie’s Humira and Pfizer’s Covid-19 vaccine. Merck’s revenues were down 9% to $14.5 billion in Q1’23, compared to our forecast of $13.9 billion. At its current levels, MRK is trading a forward P/E multiple of 17x based on our EPS forecast of $6.95 in 2023, slightly higher than the last three-year average of 14x, implying that MRK stock is fully priced. |
22559.0 | 2023-05-09 00:00:00 UTC | Why Viking Therapeutics Stock Wobbled Today | ABBV | https://www.nasdaq.com/articles/why-viking-therapeutics-stock-wobbled-today | nan | nan | What happened
Shares of clinical-stage biotech Viking Therapeutics (NASDAQ: VKTX) fell by as much as 4.8% on exceptionally low volume during the first hour of trading Tuesday morning. Since this mid-single-digit dip, the biotech's shares have battled back over the course of today's trading session.
As of 2:33 p.m. ET Tuesday afternoon, Viking's stock was only down by 0.86% on a fraction of its normal daily volume. The biotech's shares appeared to drop in response to a broad-based sell-off across the growth equity landscape during the opening hours of Tuesday's session.
So what
Viking's stock has been among the biggest winners within the growth equity space this year, thanks to an upcoming mid-stage data readout in nonalcoholic steatohepatitis (NASH), along with a surprisingly strong early-stage readout for its weight-loss candidate, VK2735.
With both drugs targeting multibillion-dollar markets, most shareholders appear to be in wait-and-see mode at this point, based on the stock's modest trading volume today.
Now what
Is Viking stock still a buy? Although the company has received a fair amount of criticism for possibly becoming a "story stock" following its meteoric rise this year, the fact remains that its shares are still cheap relative to its commercial prospects in the NASH and weight loss arenas.
On the weight loss front, Wall Street thinks this market will top $100 billion in annual sales by the end of the decade. The two big winners are expected to be Eli Lilly's Mounjaro and Novo Nordisk's Wegovy. Taken together, the more optimistic analyst estimates call for these two drugs to rake in nearly $70 billion in annual sales by 2030.
This leaves approximately $30 billion in market share up for grabs for latecomers like VK2735. That's an enormous opportunity for a company like Viking, with its $2.25 billion market cap.
And then there's NASH. While estimates vary, Viking is quite possibly looking at another $10 billion to perhaps $30 billion in white space by the time its lead candidate, VK2809, would be ready to enter the market.
So while it is definitely fair game to doubt Viking's ability to compete against the front-runners in the NASH and weight loss drug spaces, there is enough meat on the bone, so to speak, to justify the biotech's eye-popping trajectory over the past few months.
Keeping with this theme, there is a real chance that Viking ultimately gets bought out at some point within the next 12 months. AbbVie (NYSE: ABBV), for instance, has openly admitted that it is on the hunt for high-growth opportunities due to emerging competition in its core area of expertise, immunology. And Viking definitely qualifies as a budget-friendly play for a debt-laden company like AbbVie.
AbbVie also doesn't have much in the way of a dyed-in-the-wool metabolic pipeline, Viking, in turn, would open up a new area of potential growth for the drugmaker.
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George Budwell has no position in any of the stocks mentioned. 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 (NYSE: ABBV), for instance, has openly admitted that it is on the hunt for high-growth opportunities due to emerging competition in its core area of expertise, immunology. And Viking definitely qualifies as a budget-friendly play for a debt-laden company like AbbVie. AbbVie also doesn't have much in the way of a dyed-in-the-wool metabolic pipeline, Viking, in turn, would open up a new area of potential growth for the drugmaker. | AbbVie (NYSE: ABBV), for instance, has openly admitted that it is on the hunt for high-growth opportunities due to emerging competition in its core area of expertise, immunology. And Viking definitely qualifies as a budget-friendly play for a debt-laden company like AbbVie. AbbVie also doesn't have much in the way of a dyed-in-the-wool metabolic pipeline, Viking, in turn, would open up a new area of potential growth for the drugmaker. | AbbVie (NYSE: ABBV), for instance, has openly admitted that it is on the hunt for high-growth opportunities due to emerging competition in its core area of expertise, immunology. And Viking definitely qualifies as a budget-friendly play for a debt-laden company like AbbVie. AbbVie also doesn't have much in the way of a dyed-in-the-wool metabolic pipeline, Viking, in turn, would open up a new area of potential growth for the drugmaker. | AbbVie (NYSE: ABBV), for instance, has openly admitted that it is on the hunt for high-growth opportunities due to emerging competition in its core area of expertise, immunology. And Viking definitely qualifies as a budget-friendly play for a debt-laden company like AbbVie. AbbVie also doesn't have much in the way of a dyed-in-the-wool metabolic pipeline, Viking, in turn, would open up a new area of potential growth for the drugmaker. |
22560.0 | 2023-05-09 00:00:00 UTC | Noteworthy Tuesday Option Activity: HOLX, ABBV, JNJ | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-holx-abbv-jnj | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Hologic Inc (Symbol: HOLX), where a total of 7,207 contracts have traded so far, representing approximately 720,700 underlying shares. That amounts to about 54.7% of HOLX's average daily trading volume over the past month of 1.3 million shares. Especially high volume was seen for the $90 strike call option expiring May 19, 2023, with 3,344 contracts trading so far today, representing approximately 334,400 underlying shares of HOLX. Below is a chart showing HOLX's trailing twelve month trading history, with the $90 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) saw options trading volume of 27,683 contracts, representing approximately 2.8 million underlying shares or approximately 51.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $152.50 strike call option expiring May 12, 2023, with 13,777 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $152.50 strike highlighted in orange:
And Johnson & Johnson (Symbol: JNJ) options are showing a volume of 31,973 contracts thus far today. That number of contracts represents approximately 3.2 million underlying shares, working out to a sizeable 48.1% of JNJ's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $175 strike call option expiring July 21, 2023, with 10,603 contracts trading so far today, representing approximately 1.1 million underlying shares of JNJ. Below is a chart showing JNJ's trailing twelve month trading history, with the $175 strike highlighted in orange:
For the various different available expirations for HOLX options, ABBV options, or JNJ options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
DLBL shares outstanding history
CHMG Price Target
Funds Holding GMT
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 $152.50 strike call option expiring May 12, 2023, with 13,777 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing HOLX's trailing twelve month trading history, with the $90 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 27,683 contracts, representing approximately 2.8 million underlying shares or approximately 51.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $152.50 strike highlighted in orange: And Johnson & Johnson (Symbol: JNJ) options are showing a volume of 31,973 contracts thus far today. | Below is a chart showing HOLX's trailing twelve month trading history, with the $90 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 27,683 contracts, representing approximately 2.8 million underlying shares or approximately 51.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $152.50 strike call option expiring May 12, 2023, with 13,777 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $152.50 strike highlighted in orange: And Johnson & Johnson (Symbol: JNJ) options are showing a volume of 31,973 contracts thus far today. | Below is a chart showing HOLX's trailing twelve month trading history, with the $90 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 27,683 contracts, representing approximately 2.8 million underlying shares or approximately 51.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $152.50 strike call option expiring May 12, 2023, with 13,777 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $152.50 strike highlighted in orange: And Johnson & Johnson (Symbol: JNJ) options are showing a volume of 31,973 contracts thus far today. | Below is a chart showing HOLX's trailing twelve month trading history, with the $90 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 27,683 contracts, representing approximately 2.8 million underlying shares or approximately 51.3% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $152.50 strike call option expiring May 12, 2023, with 13,777 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing JNJ's trailing twelve month trading history, with the $175 strike highlighted in orange: For the various different available expirations for HOLX options, ABBV options, or JNJ options, visit StockOptionsChannel.com. |
22561.0 | 2023-05-09 00:00:00 UTC | AbbVie Says Health Canada Approves RINVOQ To Treat Adults With Active Nr-axSpA | ABBV | https://www.nasdaq.com/articles/abbvie-says-health-canada-approves-rinvoq-to-treat-adults-with-active-nr-axspa | nan | nan | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved RINVOQ (upadacitinib, 15 mg), the first oral, once-daily selective and reversible JAK inhibitor for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have had an inadequate response to a biologic disease modifying anti-rheumatic drug (DMARD) or when use of those therapies is inadvisable.
This indication follows the July 2022 Health Canada approval of RINVOQ for adults with active ankylosing spondylitis (AS) who have had an inadequate response to a biologic DMARD or when use of those therapies is inadvisable, making RINVOQ the first and only JAK inhibitor approved for the full spectrum of axial spondyloarthritis.
The approval is based on results from the Phase 3 SELECT-AXIS 2 pivotal clinical trial in which RINVOQ delivered rapid and meaningful disease control, meeting the primary endpoint of ASAS40 response at week 14 versus placebo.
RINVOQ is the first and only Janus Kinase (JAK) inhibitor approved to treat patients across the spectrum of axial spondyloarthritis (nr-axSpA and ankylosing spondylitis) in Canada.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved RINVOQ (upadacitinib, 15 mg), the first oral, once-daily selective and reversible JAK inhibitor for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have had an inadequate response to a biologic disease modifying anti-rheumatic drug (DMARD) or when use of those therapies is inadvisable. The approval is based on results from the Phase 3 SELECT-AXIS 2 pivotal clinical trial in which RINVOQ delivered rapid and meaningful disease control, meeting the primary endpoint of ASAS40 response at week 14 versus placebo. RINVOQ is the first and only Janus Kinase (JAK) inhibitor approved to treat patients across the spectrum of axial spondyloarthritis (nr-axSpA and ankylosing spondylitis) in Canada. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved RINVOQ (upadacitinib, 15 mg), the first oral, once-daily selective and reversible JAK inhibitor for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have had an inadequate response to a biologic disease modifying anti-rheumatic drug (DMARD) or when use of those therapies is inadvisable. This indication follows the July 2022 Health Canada approval of RINVOQ for adults with active ankylosing spondylitis (AS) who have had an inadequate response to a biologic DMARD or when use of those therapies is inadvisable, making RINVOQ the first and only JAK inhibitor approved for the full spectrum of axial spondyloarthritis. RINVOQ is the first and only Janus Kinase (JAK) inhibitor approved to treat patients across the spectrum of axial spondyloarthritis (nr-axSpA and ankylosing spondylitis) in Canada. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved RINVOQ (upadacitinib, 15 mg), the first oral, once-daily selective and reversible JAK inhibitor for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have had an inadequate response to a biologic disease modifying anti-rheumatic drug (DMARD) or when use of those therapies is inadvisable. This indication follows the July 2022 Health Canada approval of RINVOQ for adults with active ankylosing spondylitis (AS) who have had an inadequate response to a biologic DMARD or when use of those therapies is inadvisable, making RINVOQ the first and only JAK inhibitor approved for the full spectrum of axial spondyloarthritis. RINVOQ is the first and only Janus Kinase (JAK) inhibitor approved to treat patients across the spectrum of axial spondyloarthritis (nr-axSpA and ankylosing spondylitis) in Canada. | (RTTNews) - AbbVie (ABBV) announced Tuesday that Health Canada has approved RINVOQ (upadacitinib, 15 mg), the first oral, once-daily selective and reversible JAK inhibitor for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have had an inadequate response to a biologic disease modifying anti-rheumatic drug (DMARD) or when use of those therapies is inadvisable. This indication follows the July 2022 Health Canada approval of RINVOQ for adults with active ankylosing spondylitis (AS) who have had an inadequate response to a biologic DMARD or when use of those therapies is inadvisable, making RINVOQ the first and only JAK inhibitor approved for the full spectrum of axial spondyloarthritis. The approval is based on results from the Phase 3 SELECT-AXIS 2 pivotal clinical trial in which RINVOQ delivered rapid and meaningful disease control, meeting the primary endpoint of ASAS40 response at week 14 versus placebo. |
22562.0 | 2023-05-08 00:00:00 UTC | 7 Dividend Stocks That Will Pay You Through Any Market Turmoil | ABBV | https://www.nasdaq.com/articles/7-dividend-stocks-that-will-pay-you-through-any-market-turmoil | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While there’s nothing quite as exciting as betting everything on a hot growth enterprise, prudent investors may want to consider the best dividend stocks for market crash. In late April, CNBC reported that investors face the threat of persistently higher inflation while simultaneously digesting a bleak economic outlook. If the Federal Reserve is truly making headway against inflation, recession fears should ease. Yet we’re often left with ambiguity. In such a situation, recession-proof dividend stocks should be ideal. Finally, enterprises that pay passive income tend to be more reliable than those that don’t.
With that, below are ideas for safe dividend stocks in volatile market.
DUK Duke Energy $98.90
ABBV AbbVie $147.45
BUD Anheuser-Busch $64.68
NEE NextEra Energy $76.06
IBM IBM. $123.40
XOM Exxon Mobil $109.11
ADM Archer-Daniels-Midland $75.40
Duke Energy (DUK)
Source: jittawit21/Shutterstock.com
An electric power and natural gas holding company, Duke Energy (NYSE:DUK) is a utility play that benefits from a natural monopoly. Basically, nothing legally prevents other companies from competing with Duke. However, because the barrier to entry for the utility sector is so steep, no one even bothers. Therefore, DUK inherently stands alone in its core coverage area, which includes some Southern and Midwestern states.
Financially, Duke doesn’t natively offer the greatest-looking paper. However, it does rank well in terms of consistent profitability. In the trailing one-year period, the power company holds an operating margin of 22.33%. This stat beats out 75.75% of sector rivals. For passive income, Duke’s forward yield comes in at 4.05%. That’s a bit higher than the utility sector’s average yield of 3.75%. Also, the company commands 18 years of consecutive dividend increases, putting DUK on the best dividend stocks for market crash list. Finally, analysts peg DUK a moderate buy with a $108.13 average price target.
AbbVie (ABBV)
Source: iQoncept/shutterstock.com
A pharmaceutical company, AbbVie (NYSE:ABBV) makes a strong case for recession-proof dividend stocks to buy. Basically, even under negative economic cycles, scientific research will push forward, seeking to address various human ailments. Under this context, I’m not particularly worried about ABBV’s loss of nearly 9% of equity value since the Jan. opener. Eventually, AbbVie will rise above the muck.
For now, intrepid investors might consider shares undervalued. At the moment, ABBV trades at 10.77-times free cash flow (FCF). In contrast, the sector median stat stands at 23.41 times. Also, the company enjoys a solid three-year revenue growth rate (13.4%) as well as a trailing-year net margin (13.37%). It also belongs on the safe dividend stocks in volatile market list. AbbVie’s forward yield pings at 4%, well above the healthcare sector’s average yield of 53.28%. Also, it commands 51 years of consecutive dividend increases. Obviously, this attribute qualifies ABBV for the dividend aristocrats for market downturn list. Lastly, analysts peg ABBV a moderate buy with a $162.79 price target. This estimate implies 10% upside potential.
Anheuser-Busch (BUD)
Source: Shutterstock
I’m going to dip my toes into the controversy with Anheuser-Busch (NYSE:BUD). By now, I’m sure you’ve all heard about the uproar. It’s quite possible that you may have strong feelings about the underlying issues. That’s great. However, the angst over Anheuser-Busch – based on historical trends – is unlikely to sustain itself. Therefore, BUD really could be a discounted opportunity for the best dividend stocks for market crash designation.
Though up nearly 9% for the year, BUD slipped more than 2% in the trailing month. However, this doesn’t justify hitting the panic button. Remember, Nike (NYSE:NKE) stood by Colin Kaepernick during the anthem protest controversy. The sports apparel manufacturer is doing just fine now (relatively speaking). Also, the Equifax (NYSE:EFX) data breach hurt millions, probably including you. EFX has also performed well since the scandal.
So, one person’s identity transition won’t mean squat in the end. Turning to passive income, BUD’s forward yield is 2.54%, above the consumer staple sector’s average yield of 1.89%. Notably, the payout ratio sits in the credibly sustainable side at 44.43%. To close out, analysts peg BUD a moderate buy with a $72 price target. The estimate implies 11% upside potential.
NextEra Energy (NEE)
Source: Shutterstock
As a leader in the renewable energy infrastructure space with its wind and solar projects, NextEra Energy (NYSE:NEE) easily ranks among the best dividend stocks for a market crash list. Basically, even if the unpleasant material hit the proverbial fan, modern societies need energy to survive. As well, the emerging Generation Z cares deeply about sustainability. Therefore, companies ignore this trend at their peril.
Financially, NextEra offers somewhat of a similar profile to other utilities in that it could always use some work. For example, its balance sheet isn’t exactly sterling. If I’m being honest, much of the operational side could use some beefing up. However, its consistently profitable and it prints an impressive net margin of 26.97%.
And that segues into passive income, where NextEra’s forward yield comes in at 2.48%. While lower than the utility sector average, NEE commands 30 years of consecutive dividend increases. Thus, it belongs in the dividend aristocrats for market downturn list. Turning to Wall Street, analysts peg NEE as a consensus strong buy with an $89.64 price target. The estimate implies nearly 19% upside potential.
IBM (IBM)
Source: Shutterstock
While legacy technology giant IBM (NYSE:IBM) constantly wrestles with its reputation as being a boring enterprise, it no longer must tolerate insults about being irrelevant. With management aggressively pivoting toward pertinent sectors such as hybrid-cloud endeavors, IBM can duke it out with the others. However, it’s trading at a relative discount right now, with shares down almost 13% since the January opener.
In addition, IBM belongs on the best dividend stocks for market crash list because of its fundamental value proposition. Right now, the market prices shares at a forward multiple of 13.09. As a discount to projected earnings, IBM ranks better than 81.49% of the competition.
Switching to passive income, “Big Blue” carries a forward yield of 5.37%. Thus, it’s legitimately one of the high-yield dividend stocks for market turmoil. Also, the company features 30 years of consecutive dividend increases. Looking to the Street, analysts peg IBM a moderate buy with a $147.71 price target. The estimate implies over 19% upside potential.
Exxon Mobil (XOM)
Source: Shutterstock
Standing alongside some of the biggest hydrocarbon energy firms in the world, Exxon Mobil (NYSE:XOM) needs no introduction. Though fossil fuels may be going out of style in the ideological front, they remain incredibly relevant today. Because of their high energy density and reliability, they may continue to be relevant for years to come. Therefore, it inks entry into the best dividend stocks for market crash list.
Financially, Exxon Mobil benefits from strong operational stats. Its three-year revenue growth rate pings at 15.9%, above 65.09% of its peers. Also, its net margin lands at 15.63%, ranked better than 68.13% of sector peers. As a “bonus,” Exxon also benefits from robust stability in the balance sheet.
Heading over to the passive income side, XOM’s forward yield is 3.35%, a bit lower than the energy sector’s average yield of 4.24%. However, the underlying company features 40 years of consecutive dividend increases. Of course, that qualifies for the dividend aristocrats for market downturn list. Lastly, analysts peg XOM as a moderate buy with a $130.96 price target. The estimate implies almost 21% upside potential.
Archer-Daniels-Midland (ADM)
Source: Shutterstock
A multinational food processing and commodities trading corporation, Archer-Daniels-Midland (NYSE:ADM) by default earns inclusion into the best dividend stocks for market crash list. Essentially, humans have to eat. Bad things happen when we don’t. Nevertheless, the market doesn’t see it that way, with ADM losing over 15% of equity value since the Jan. opener.
While Archer Daniels beat profit forecasts, management’s forward guidance disappointed. Nevertheless, the red ink might present an opportunity for intrepid investors. Right now, the market prices shares at a forward multiple of 10.93. As a discount to projected earnings, ADM ranks better than 77.31% of the field. Regarding passive income, the company carries a forward yield of 2.37%, above the consumer staple sector’s average yield of 1.89%. Also, it enjoys 51 years of consecutive dividend increases. So, it’s not just one of the dividend aristocrats for market downturn; it’s really a dividend king (50 or more years of increases).
On a final note, analysts peg ADM a strong buy with a $101 price target. The estimate implies 33% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Dividend Stocks That Will Pay You Through Any Market Turmoil appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DUK Duke Energy $98.90 ABBV AbbVie $147.45 BUD Anheuser-Busch $64.68 NEE NextEra Energy $76.06 AbbVie (ABBV) Source: iQoncept/shutterstock.com A pharmaceutical company, AbbVie (NYSE:ABBV) makes a strong case for recession-proof dividend stocks to buy. Under this context, I’m not particularly worried about ABBV’s loss of nearly 9% of equity value since the Jan. opener. | DUK Duke Energy $98.90 ABBV AbbVie $147.45 BUD Anheuser-Busch $64.68 NEE NextEra Energy $76.06 AbbVie (ABBV) Source: iQoncept/shutterstock.com A pharmaceutical company, AbbVie (NYSE:ABBV) makes a strong case for recession-proof dividend stocks to buy. Under this context, I’m not particularly worried about ABBV’s loss of nearly 9% of equity value since the Jan. opener. | DUK Duke Energy $98.90 ABBV AbbVie $147.45 BUD Anheuser-Busch $64.68 NEE NextEra Energy $76.06 AbbVie (ABBV) Source: iQoncept/shutterstock.com A pharmaceutical company, AbbVie (NYSE:ABBV) makes a strong case for recession-proof dividend stocks to buy. Under this context, I’m not particularly worried about ABBV’s loss of nearly 9% of equity value since the Jan. opener. | DUK Duke Energy $98.90 ABBV AbbVie $147.45 BUD Anheuser-Busch $64.68 NEE NextEra Energy $76.06 AbbVie (ABBV) Source: iQoncept/shutterstock.com A pharmaceutical company, AbbVie (NYSE:ABBV) makes a strong case for recession-proof dividend stocks to buy. Under this context, I’m not particularly worried about ABBV’s loss of nearly 9% of equity value since the Jan. opener. |
22563.0 | 2023-05-08 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-23 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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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. |
22564.0 | 2023-05-06 00:00:00 UTC | 1 Relatively Safe Dividend Growth Stock to Buy Hand Over Fist Right Now | ABBV | https://www.nasdaq.com/articles/1-relatively-safe-dividend-growth-stock-to-buy-hand-over-fist-right-now | nan | nan | If you can buy high-quality dividend stocks when other investors sour on them, you can plant the seeds for robust returns in the future. And that's exactly why it might be worth buying shares of AbbVie (NYSE: ABBV) like it's about to go out of style.
Despite its fully expected, yet ultimately abysmal, first-quarter earnings, the 1% total return of its shares over the last 12 months is still above and beyond the 4% loss for the SPDR S&P 500 ETF Trust, the ETF tracking the S&P 500 index. Few other players could see their earnings evaporate and still outperform the overall market. Here's why AbbVie can do it, and why it could be a smart investment for long-term holding.
Why you should consider investing in AbbVie
AbbVie is one of the world's pharmaceutical leaders, and that's one of the core reasons that it's a relatively safe dividend stock. Its forward dividend yield is currently in the ballpark of 4%, which is higher than that of many of its big pharma competitors. Over the last five years, its dividend has risen by 54%, and management is keen to keep the good times rolling.
To accomplish that, the company will keep doing what it's good at. First, it develops new medicines and commercializes them. Then it spends heavily on follow-on research and development (R&D) to commercialize those medicines for additional indications, squeezing even more revenue out of them. It expects to bring in at least $32 billion in new revenue between now and 2030: more than $21 billion from its immunology segment, more than $9 billion from its aesthetics segment, and at least $2 billion from its neuroscience division. For reference, its top line in 2022 was $58 billion, so there's plenty of growth to come.
But AbbVie's growth is expected to be on the slower side for 2023 and 2024, as some of its older oncology and immunology medicines lose their manufacturing exclusivity and competitors step in to steal market share with generics. That process has already started, as shown in its uncharacteristically disastrous Q1 earnings: Diluted earnings per share (EPS) crashed by 95% year over year, reaching $0.13 on a non-adjusted basis. The good news is that another steep drop is extremely unlikely as the market has most likely factored in future visibility until earnings recover.
Management is banking on the recovery starting mid-decade and picking up steam through the end of the 2020s. As AbbVie commercializes new moneymakers, there's a high chance that profitable growth will return at a consistent pace. And in the meantime, it'll keep paying out its dividend and buying back shares so that investors get some of the benefit of cash flow from its existing portfolio. So for long-term oriented investors, this stock's temporary doldrums are a great opportunity to buy.
Stay abreast of this new risk
Though AbbVie is likely to continue advancing its pipeline and bringing new medicines to the market, it faces a new risk that's likely to be in the headlines on and off over the coming quarters, and perhaps even years.
Per new regulations contained in the Inflation Reduction Act, the Centers for Medicare & Medicaid Services (CMS) can levy a fine against pharmaceutical businesses that hike the prices of certain medicines faster than the rate of inflation. AbbVie, a habitual price-hiker that's been singled out by Congress on several occasions, is already on the list of bio-pharmaceutical companies that have run afoul of the rule -- thanks to increasing the price for Humira, its best-selling arthritic drug. That means it'll need to pay back CMS an unspecified amount, by an unspecified deadline, after going through a newly created and somewhat ambiguous regulatory appeals process. What's more, it could be at least a few months before there's any additional clarity on the entire affair.
Investors should expect that AbbVie will need to cough up fines to satisfy the government at some point in the next few years, but the new regulations are unlikely to be so burdensome that they seriously disrupt the company's ability to continue to grow and pay out excess capital to its shareholders. Plus, once there's more information about how to avoid running afoul of regulations in the future, management can change its pricing strategy accordingly, and the issue will (probably) fade from the stock's most pressing set of risks. So in the long term, the new regulations aren't likely to be a significant competitive factor, as AbbVie's competitors will need to play by the same rules.
So if you're considering a purchase of this stock, now's a good time to invest. The longer you wait, the more dividend income you'll likely miss out on, and there's little in the way of upcoming headwinds that might threaten AbbVie's merit as an investment. It probably won't outperform the market in 2023. But by the end of the decade, its new drivers of growth will be online and humming, and people who bought in now could be significantly richer.
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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. | But AbbVie's growth is expected to be on the slower side for 2023 and 2024, as some of its older oncology and immunology medicines lose their manufacturing exclusivity and competitors step in to steal market share with generics. AbbVie, a habitual price-hiker that's been singled out by Congress on several occasions, is already on the list of bio-pharmaceutical companies that have run afoul of the rule -- thanks to increasing the price for Humira, its best-selling arthritic drug. Investors should expect that AbbVie will need to cough up fines to satisfy the government at some point in the next few years, but the new regulations are unlikely to be so burdensome that they seriously disrupt the company's ability to continue to grow and pay out excess capital to its shareholders. | And that's exactly why it might be worth buying shares of AbbVie (NYSE: ABBV) like it's about to go out of style. Here's why AbbVie can do it, and why it could be a smart investment for long-term holding. Why you should consider investing in AbbVie AbbVie is one of the world's pharmaceutical leaders, and that's one of the core reasons that it's a relatively safe dividend stock. | Why you should consider investing in AbbVie AbbVie is one of the world's pharmaceutical leaders, and that's one of the core reasons that it's a relatively safe dividend stock. 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. And that's exactly why it might be worth buying shares of AbbVie (NYSE: ABBV) like it's about to go out of style. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! And that's exactly why it might be worth buying shares of AbbVie (NYSE: ABBV) like it's about to go out of style. Here's why AbbVie can do it, and why it could be a smart investment for long-term holding. |
22565.0 | 2023-05-06 00:00:00 UTC | Looking for Steady, Passive Income? Buy AbbVie Stock | ABBV | https://www.nasdaq.com/articles/looking-for-steady-passive-income-buy-abbvie-stock | nan | nan | Dividend growth investing revolves around selecting only the most reliable businesses for your portfolio. This can be measured by consecutive years of dividend growth.
With 51 consecutive years of dividend growth to its credit (including time spent as part of Abbott Laboratories), AbbVie (NYSE: ABBV) certainly has such a record. In fact, it qualifies as a Dividend King.
Let's assess why the company continues to be an excellent pick for dividend growth investors now.
1. Humira woes won't hold AbbVie down long
The investment world has known for years that AbbVie's mega-hit immunology drug Humira would eventually face its day of reckoning. After years of waiting, that day finally arrived when the company reported its results last month for the first quarter ended March 31.
AbbVie's net revenue dipped by 9.7% year over year to $12.2 billion in Q1. But this net revenue decline includes the foreign currency translation headwinds that the company faced during the period. Factoring out the 1.4% ding to net revenue from AbbVie's global operations at a time when the U.S. dollar has been very strong, operational revenue was down 8.3% over the year-ago period.
The recent launch of Amgen's Humira biosimilar Amjevita in the U.S., along with continued competition in international markets, weighed on results. This led the medicine's net revenue to plunge 25.2% year over year to $3.5 billion in the first quarter.
Double-digit revenue growth from immunology drugs Skyrizi and Rinvoq and anti-psychotic medicine Vraylar combined to produce net sales of $2.6 billion. Still, that wasn't enough to offset Humira's sharp decrease in net revenue.
But on the positive side, AbbVie projects that Skyrizi and Rinvoq will exceed $21 billion in combined revenue by 2027. Along with a deep pipeline, this is how the company anticipates it can return to growth in 2024 and continue expanding at a high-single-digit pace through the rest of the decade.
AbbVie's non-GAAP (adjusted) diluted earnings per share (EPS) fell 22.2% over the year-ago period to $2.46 during the quarter. Lower net revenue and higher operating expenses resulted in a 580-basis-point drop in non-GAAP net margin to 35.9% for the quarter. This explains how the company's adjusted diluted EPS contracted at a faster rate than net revenue in the quarter.
Image source: Getty Images.
2. The market-topping payout is sustainable
Income investors will be pleased to learn that AbbVie's 3.9% dividend yield is more than twice the S&P 500 index's 1.7% yield. Most importantly, the company's dividend seems to be viable moving forward.
AbbVie's dividend payout ratio is expected to come in at around 54% in 2023. This is on the high side compared to recent years. But that's to be expected when taking into consideration that 2023 is slated to be a trough year in terms of profits due to Humira's U.S. loss of exclusivity cliff. This is why, as the years progress, I believe the dividend will become more secure.
3. A sensible valuation
AbbVie appears to be a reasonable buy for income investors. The stock's forward price-to-earnings (P/E) ratio of 13.9 is only slightly more than the drug manufacturer industry average of 13.4. Considering that AbbVie joins Johnson & Johnson as the only other pharmaceutical-focused Dividend King, the stock is arguably deserving of this premium valuation. This is especially the case when factoring in that AbbVie's fundamentals appear to be intact for the foreseeable future.
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Kody Kester has positions in AbbVie, Abbott Laboratories, Amgen, and Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories. 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. | With 51 consecutive years of dividend growth to its credit (including time spent as part of Abbott Laboratories), AbbVie (NYSE: ABBV) certainly has such a record. Humira woes won't hold AbbVie down long The investment world has known for years that AbbVie's mega-hit immunology drug Humira would eventually face its day of reckoning. AbbVie's net revenue dipped by 9.7% year over year to $12.2 billion in Q1. | See the 10 stocks *Stock Advisor returns as of May 1, 2023 Kody Kester has positions in AbbVie, Abbott Laboratories, Amgen, and Johnson & Johnson. With 51 consecutive years of dividend growth to its credit (including time spent as part of Abbott Laboratories), AbbVie (NYSE: ABBV) certainly has such a record. Humira woes won't hold AbbVie down long The investment world has known for years that AbbVie's mega-hit immunology drug Humira would eventually face its day of reckoning. | Humira woes won't hold AbbVie down long The investment world has known for years that AbbVie's mega-hit immunology drug Humira would eventually face its day of reckoning. AbbVie's net revenue dipped by 9.7% year over year to $12.2 billion in Q1. See the 10 stocks *Stock Advisor returns as of May 1, 2023 Kody Kester has positions in AbbVie, Abbott Laboratories, Amgen, and Johnson & Johnson. | AbbVie's net revenue dipped by 9.7% year over year to $12.2 billion in Q1. See the 10 stocks *Stock Advisor returns as of May 1, 2023 Kody Kester has positions in AbbVie, Abbott Laboratories, Amgen, and Johnson & Johnson. With 51 consecutive years of dividend growth to its credit (including time spent as part of Abbott Laboratories), AbbVie (NYSE: ABBV) certainly has such a record. |
22566.0 | 2023-05-06 00:00:00 UTC | 3 Great Income Stocks That Retirees Should Love | ABBV | https://www.nasdaq.com/articles/3-great-income-stocks-that-retirees-should-love | nan | nan | Most Americans don't have to wait until they're retired to know that Social Security benefits won't be enough to maintain their current lifestyle. If they pay any attention to retirement planning advice, they know they will need other sources of income as well. Investing in dividend stocks is one great way to generate additional income.
Three Fool.com contributors were asked to discuss some great income stocks that they think retirees should love. They picked AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). Here's why.
A new era, but the same great dividend
Keith Speights (AbbVie): There's no question that AbbVie is entering into a new era in its history. The big drugmaker can no longer depend on Humira to generate solid growth. Sales are declining for the blockbuster autoimmune-disease drug as it faces competition from biosimilars.
However, one important thing hasn't changed for AbbVie in this new era: The company still offers a very attractive dividend. AbbVie is a Dividend King with 51 consecutive years of dividend increases (41 of those years the dividend came from its being part of parent company Abbott Laboratories). Its dividend yield currently tops 4%.
AbbVie should remain a great pick for retirees, even with Humira's challenges. The company has built a solid product lineup in recent years in anticipation of Humira losing exclusivity. Two newer drugs, Rinvoq and Skyrizi, are projected to offset the sales decline for Humira by themselves. The company has other drugs in the approval pipeline as well.
Granted, AbbVie's revenue and earnings will slump temporarily. But the drugmaker fully expects to return to growth beginning in 2025. It also should be in a good position to keep its streak of dividend increases going for years to come.
An ideal income stock for retirees
David Jagielski (Johnson & Johnson): For retirees, an income stock that can make for a sound investment is one that isn't volatile and that can be counted on for a dividend. Johnson & Johnson is a stock that ticks off those boxes, and as a bonus, it also has a great track record for increasing its payouts. Last month, the company announced its 61st consecutive year of dividend increases. The Dividend King is among the safest dividend growth stocks you can find on the markets today.
At 2.9%, retirees can earn a decent payout from investing in Johnson & Johnson. On a $50,000 investment, for example, it could generate $1,450 in annual dividends. If you can invest $100,000 into the stock, the annual dividend comes in at $2,900.
Plus, if the company increases its dividend payments by 5% or more as it has been doing in recent years, after five years your dividend could be 28% higher than it is now. That means that $2,900 annual dividend could grow to over $3,700.
What's particularly attractive for retirees is that this is also a low-volatility stock. That means it doesn't have big swings in value, even though the markets might. Johnson & Johnson stock has a beta value of around 0.5. A beta value of 1 indicates that a stock moves similarly to the markets. The lower the beta value, the less volatile the stock has been.
And mind you, this is even as Johnson & Johnson has been involved with many legal battles, including its talc lawsuits. That's because while it may end up costing the company $8.9 billion in today's dollars to settle those lawsuits, Johnson & Johnson generates double that in operating cash flow every year. The company's business is in solid shape and well-equipped to handle just about any adversity that may come its way.
J&J spun off its consumer health business this week into a new company called Kenvue (NYSE: KVUE) and becoming less diversified in the process, that's likely to be a net positive for investors as well. J&J made the move so it can focus on its faster-growing segments: medical devices and pharmaceuticals.
Strong financials, a growing dividend, and a fairly stable stock are reasons why Johnson & Johnson can be a great income investment for retirees to buy and hold.
More than just passive income
Prosper Junior Bakiny (Pfizer): Retirees tend to be attracted to reliable, dividend-paying companies that generate solid profits and raise their payouts regularly. Pharmaceutical giant Pfizer fits that description well. The company has a vast, diversified portfolio of medicines across various therapeutic areas, including oncology, immunology, and infectious disease. Pfizer is, of course, a leader in the COVID-19 space.
The steep decline in demand for coronavirus products this year will lead to an equally significant drop in year-over-year revenue for the company. However, Pfizer's lineup is growing, partly thanks to acquisitions. But there will also be plenty of new approvals over the next year, leading to a rejuvenated portfolio for the company. The result will be stronger revenue and earnings growth, especially once comparisons to the worst of the pandemic years cease.
Pfizer is unlikely to suspend or cut its dividend, even during the initial decline in revenue it will encounter this year. It generated more than enough cash flow in the past couple of years to sustain payout increases, despite less impressive financial results incoming this year.
Pfizer grew its dividend by a respectable 20.6% in the past five years. Its cash payout ratio is just 34.5% -- a low enough number for the company to afford many more hikes. That should appeal to dividend investors, particularly retirees.
The company's stock price is down by 25% this year as many investors headed for the exits due to the perceived end of its coronavirus-related tailwind. That arguably creates an excellent entry point for investors. Those who buy Pfizer's shares now and hold them for a while will eventually be rewarded with strong top- and bottom-line growth and dividend increases.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Pfizer. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories and Pfizer. 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. | They picked AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A new era, but the same great dividend Keith Speights (AbbVie): There's no question that AbbVie is entering into a new era in its history. However, one important thing hasn't changed for AbbVie in this new era: The company still offers a very attractive dividend. | They picked AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A new era, but the same great dividend Keith Speights (AbbVie): There's no question that AbbVie is entering into a new era in its history. However, one important thing hasn't changed for AbbVie in this new era: The company still offers a very attractive dividend. | AbbVie is a Dividend King with 51 consecutive years of dividend increases (41 of those years the dividend came from its being part of parent company Abbott Laboratories). They picked AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A new era, but the same great dividend Keith Speights (AbbVie): There's no question that AbbVie is entering into a new era in its history. | AbbVie is a Dividend King with 51 consecutive years of dividend increases (41 of those years the dividend came from its being part of parent company Abbott Laboratories). They picked AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A new era, but the same great dividend Keith Speights (AbbVie): There's no question that AbbVie is entering into a new era in its history. |
22567.0 | 2023-05-05 00:00:00 UTC | XLV: 5 Reasons to Put This Healthcare ETF on Your Radar | ABBV | https://www.nasdaq.com/articles/xlv%3A-5-reasons-to-put-this-healthcare-etf-on-your-radar | nan | nan | The Healthcare Select Sector SPDR ETF (NYSEARCA:XLV) has had a relatively quiet 2023 thus far. XLV has a loss of about 1.1% year-to-date, but it looks like an attractive investment vehicle in the current environment -- here are five reasons why.
1. Healthcare is Defensive
Between soaring inflation, rising interest rates, and a spate of bank failures, the stock market has been volatile over the past year, and the economy is on uncertain footing. That’s why a healthcare ETF like XLV makes a lot of sense in this challenging investment environment.
Unlike parts of the consumer goods sector, for example, healthcare is not discretionary spending. In the event of an economic slowdown or a recession, many people will put off making major purchases like a house or a car and hang on to their current car or hold off on upgrading to a bigger house for a few years.
They may also forgo eating out, skip going on vacation, or cut costs in other areas, but they most likely aren’t going to forgo spending on their healthcare needs, as healthcare is more of a necessity than a want. Therefore, an ETF like XLV, which invests in the healthcare segment of the S&P 500 (SPX), should help investors fortify their portfolios in the event that the economic picture worsens.
Healthcare is less dependent on overall economic growth, and healthcare stocks have outperformed during stagflationary environments in the past. Therefore, it seems like a good sector to be exposed to amid a challenging macro backdrop.
2. Healthcare Valuations are Modest
Adding to XLV’s defensive positioning is the fact that valuations in the healthcare sector are relatively modest. The average P/E multiple for XLV as a whole was 17.2 times earnings at of the end of Q1. While this isn’t a screaming bargain, it is several turns cheaper than the broader market, as the S&P 500 currently has an average P/E multiple of 23.5.
By using TipRanks’ holdings tool, we can get an overview of XLV’s top holdings. Some of these holdings trade at pretty attractive valuations. For example, top 10 holding AbbVie (NYSE:ABBV) trades at just 13.4 times earnings, while Bristol Myers (NYSE:BMY) trades at an even cheaper 8.3 times earnings.
3. Stable, Growing Dividends
Many of these individual stocks listed above also feature some pretty attractive dividend yields, such as AbbVie’s 4%, Bristol Myers’ 3.4%, and Pfizer’s (NYSE:PFE) 4.3%. Unfortunately, though, because it holds some positions with lower yields or that don’t pay a dividend at all, XLV’s dividend yield of 1.5% is lower than that of these individual examples.
That being said, it has a rock-solid track record as a dividend payer. XLV has paid out an annual dividend to its investors for 22 years in a row, and it has currently increased the amount of this payout for 13 years and counting. So, while the current dividend yield may not get your heart racing, investors can have reasonable confidence that XLV's dividend payout will continue to grow over time.
4. Minimal Fees
Another attractive aspect of XLV is that investors in the fund pay minimal fees. XLV has an expense ratio of just 0.10%. This means that an investor putting $10,000 into XLV today would pay just $10 in fees over the course of the year.
Assuming a 5% return on the investment each year, an XLV investor would pay just $32 after three years, $56 over the course of five years, and $128 over the course of the decade (according to the ETF's prospectus), which is very reasonable. Fees can really add up over the years, so investing in low-cost ETFs like this is a good way to preserve and grow the overall value of your portfolio over time.
5. Innovation
So far, we've covered this ETF's appeal thanks to its defensive nature, modest valuation, reliable dividends, and low fees. This almost makes it easy to forget that healthcare stocks also have considerable room for upside based on their innovation.
Many of these companies are working on some pretty amazing treatments and trying to find cures for ailments and diseases that affect millions of people worldwide. Finding and commercializing cures and treatments for these diseases and conditions not only improves the lives of the people who suffer from them but can become major blockbusters for these companies.
For example, top 10 holding Eli Lilly’s weight-loss drug Mounjaro could help in the fight against obesity by helping adults lose as much as 22.5% of their body weight (measured over a 72-week period). The CDC finds that roughly 40% of Americans are obese, so there is a massive potential market for this type of treatment.
Meanwhile, Eli Lilly is also working on Donanemab, a potential cure for Alzheimer's, and Mirikizumab, a potential treatment for ulcerative colitis and Crohn's disease. Evaluate Vantage forecasts that if approved, both of these drugs would bring in over a billion dollars worth of annual revenue in 2028. Other top holdings like AbbVie and Merck are developing treatments for conditions like Lymphoma and Pulmonary arterial hypertension, respectively, which have similar blockbuster potential.
These types of projections should, of course, be taken with a grain of salt, as some of these treatments still have a long way to go before being approved and successfully commercialized, and their projected sales are a long way into the future. However, it does illustrate the high level of potential upside that healthcare stocks can have.
What is the Price Target for XLV Stock?
The analyst community agrees that there is some upside here as well, collectively rating the XLV stock a Moderate Buy. Of the 764 analyst ratings on XLV, 61.9% are Buys, 35.5% are Holds, and 2.6% are Sells. The average XLV stock price target of $151.66 implies upside potential of 13.5% from here.
Risks
While these are five features that make XLV an attractive investment opportunity, all investments come with risks, and XLV is no different. Since XLV holds some drug companies, drugs not being approved by the FDA or successfully commercialized are top risks that come to mind. On the other hand, this is a diversified portfolio of healthcare companies, which blunts the risk of one drug failing.
Furthermore, it's important to note that this is a healthcare ETF, not a biotech or pharma ETF, so not all of the companies here are developing drugs. Top holding United Group (NYSE:UNH) is an insurance company, while other top 10 holdings, including ThermoFisher (NYSE:TMO) and Danaher (NYSE:DHR), provide equipment to the healthcare industry.
One additional industry-wide risk to keep an eye on is the White House's pressure on drug companies to lower prices, but there is no guarantee that this will become law. Furthermore, the proposed drug price caps would only affect Medicare Part D, meaning that not everyone will be affected.
Lastly, I view UnitedHealth Group's weighting of over 9% as a potential risk, not because of anything specific to the company itself but simply because this gives XLV investors a lot of exposure to a single stock and takes away from the ETF's diversification.
Looking Ahead
In conclusion, the XLV ETF looks like a relatively appealing port in the storm of market volatility and an uncertain economic outlook. The ETF's stocks are mostly reasonably priced, and it pays a consistent dividend, charges an investor-friendly 0.1% management fee, and invests in a defensive sector that is less dependent on overall economic growth. Therefore, XLV looks like a sensible ETF that investors should take a look at.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, top 10 holding AbbVie (NYSE:ABBV) trades at just 13.4 times earnings, while Bristol Myers (NYSE:BMY) trades at an even cheaper 8.3 times earnings. Stable, Growing Dividends Many of these individual stocks listed above also feature some pretty attractive dividend yields, such as AbbVie’s 4%, Bristol Myers’ 3.4%, and Pfizer’s (NYSE:PFE) 4.3%. Other top holdings like AbbVie and Merck are developing treatments for conditions like Lymphoma and Pulmonary arterial hypertension, respectively, which have similar blockbuster potential. | For example, top 10 holding AbbVie (NYSE:ABBV) trades at just 13.4 times earnings, while Bristol Myers (NYSE:BMY) trades at an even cheaper 8.3 times earnings. Stable, Growing Dividends Many of these individual stocks listed above also feature some pretty attractive dividend yields, such as AbbVie’s 4%, Bristol Myers’ 3.4%, and Pfizer’s (NYSE:PFE) 4.3%. Other top holdings like AbbVie and Merck are developing treatments for conditions like Lymphoma and Pulmonary arterial hypertension, respectively, which have similar blockbuster potential. | For example, top 10 holding AbbVie (NYSE:ABBV) trades at just 13.4 times earnings, while Bristol Myers (NYSE:BMY) trades at an even cheaper 8.3 times earnings. Stable, Growing Dividends Many of these individual stocks listed above also feature some pretty attractive dividend yields, such as AbbVie’s 4%, Bristol Myers’ 3.4%, and Pfizer’s (NYSE:PFE) 4.3%. Other top holdings like AbbVie and Merck are developing treatments for conditions like Lymphoma and Pulmonary arterial hypertension, respectively, which have similar blockbuster potential. | For example, top 10 holding AbbVie (NYSE:ABBV) trades at just 13.4 times earnings, while Bristol Myers (NYSE:BMY) trades at an even cheaper 8.3 times earnings. Stable, Growing Dividends Many of these individual stocks listed above also feature some pretty attractive dividend yields, such as AbbVie’s 4%, Bristol Myers’ 3.4%, and Pfizer’s (NYSE:PFE) 4.3%. Other top holdings like AbbVie and Merck are developing treatments for conditions like Lymphoma and Pulmonary arterial hypertension, respectively, which have similar blockbuster potential. |
22568.0 | 2023-05-05 00:00:00 UTC | VYM, JPM, CVX, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/vym-jpm-cvx-abbv%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $233.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 463,654,199 to 465,925,492). Among the largest underlying components of VYM, in trading today JPMorgan Chase & Co (Symbol: JPM) is up about 1.9%, Chevron Corporation (Symbol: CVX) is up about 2.6%, and AbbVie Inc (Symbol: ABBV) is up by about 0.8%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average:
Looking at the chart above, VYM's low point in its 52 week range is $94.59 per share, with $113.78 as the 52 week high point — that compares with a last trade of $104.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VYM, in trading today JPMorgan Chase & Co (Symbol: JPM) is up about 1.9%, Chevron Corporation (Symbol: CVX) is up about 2.6%, and AbbVie Inc (Symbol: ABBV) is up 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 VYM, in trading today JPMorgan Chase & Co (Symbol: JPM) is up about 1.9%, Chevron Corporation (Symbol: CVX) is up about 2.6%, and AbbVie Inc (Symbol: ABBV) is up by about 0.8%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $94.59 per share, with $113.78 as the 52 week high point — that compares with a last trade of $104.24. 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 VYM, in trading today JPMorgan Chase & Co (Symbol: JPM) is up about 1.9%, Chevron Corporation (Symbol: CVX) is up about 2.6%, and AbbVie Inc (Symbol: ABBV) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $233.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 463,654,199 to 465,925,492). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $94.59 per share, with $113.78 as the 52 week high point — that compares with a last trade of $104.24. | Among the largest underlying components of VYM, in trading today JPMorgan Chase & Co (Symbol: JPM) is up about 1.9%, Chevron Corporation (Symbol: CVX) is up about 2.6%, and AbbVie Inc (Symbol: ABBV) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $233.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 463,654,199 to 465,925,492). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
22569.0 | 2023-05-04 00:00:00 UTC | 7 Stock Upgrades and Downgrades Alerts You Cannot Ignore | ABBV | https://www.nasdaq.com/articles/7-stock-upgrades-and-downgrades-alerts-you-cannot-ignore | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Analyst stock upgrades and downgrades create powerful headlines that will move the underlying shares. Investors should take advantage of the price swings analysts create, especially when they make the wrong calls.
Stock price changes are noisy. Investors may use the stock volatility to buy a stock at a temporary discount or sell on a spike.
Among the seven companies discussed below, those with a strong revenue pipeline and earnings visibility are buys. In addition, they are typically large capitalization companies that have decades of experience navigating the economic cycle.
Conversely, firms that posted weak growth, an earnings per share loss, and who failed to post an outlook are the stocks to avoid.
Some of the weak companies trade at lofty valuations. Their management team lacks the experience to prepare for an economic downturn. It will have operating cost growth that is rising while its revenue growth declines.
Hopeful investors may bet that the company will work through the elongated sales cycle, which hurt results. That bet is a risky proposition, especially when markets punish overvalued companies.
The discussion on a company’s fundamentals will help readers pick out the true stocks to buy and those to sell.
ABBV AbbVie $149.25
INTC Intel $30.65
MSFT Microsoft $304.40
MXL MaxLinear $24.14
NET Cloudflare $41.90
SNY Sanofi $ 54.22
TSCO Tractor Supply $243.31
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) earned multiple “buy” ratings in the last week. An analyst at Barclays assigned a Buy rating and a $160 price target.
In Q1/2023, AbbVie posted revenue and earnings declines. Investors should listen to analysts reiterating buy ratings on the stock. Skyrizi and Rinvoq are growth catalysts.
Demand for Rinvoq and Skyrizi grew by around 60%. Looking ahead, growth could increase. The drugs benefit from the number of indications approved.
AbbVie has five additional indications for Rinvoq and Two for Skyrizi. The market’s failure to appreciate the revenue potential is creating mispricing of the stock.
The Allergan unit will thrive in the aesthetics market. The U.S. economy is still healthy, at least after building momentum in Q1. Strong real personal consumption expenditure suggests that consumers will spend on aesthetic products. Still, if the economy slows, toxins in aesthetics will grow in the low-to-mid single digits. The rebound in China’s economy should counter such slowdown risks.
Intel (INTC)
Source: Kate Krav-Rude / Shutterstock.com
Intel (NASDAQ:INTC) earned a reiterated buy rating from Raymond James. The analyst assigned a $35 price target (per tipranks), despite a steep drop in Intel’s revenue.
Intel reported Q1 revenue falling by 36% Y/Y to $11.7 billion. This resulted in a GAAP EPS loss of 66 cents. Analysts are praising the expense management that drove efficiencies and cost savings in the last quarter. A demand rebound for PCs would justify multiple Buy upgrades in the coming quarters.
Intel may release multiple generations and benefit from leveraging. CEO Pat Gelsinger said that Sapphire and Emerald Gen 4 and Gen 5 are on the same platform.
Customers benefit from leveraging the same platform. Clearwater Forest, which follows Sierra Forest and Granite Rapids, is all on the same platform.
The ramp-up on the Sapphire Rapids product will capture market share in the data center sector. Customers need hardware to support artificial intelligence. They need more security capabilities. This will require buying the latest Intel hardware.
Microsoft (MSFT)
Source: Peteri / Shutterstock.com
Microsoft (NASDAQ:MSFT) earned at least two “buy” upgrades when it posted strong quarterly results. A BMO Capital analyst upgraded MSFT stock and assigned a $347 price target.
The UK’s decision to block its acquisition of Activision (NASDAQ:ATVI) is not a headwind. Expect the software giant to fight the ruling and complete the deal.
Chief Financial Officer Amy Hood praised Microsoft’s partnership with OpenAI to introduce AI in its ecosystem. Azure infrastructure and Azure AI services will support end customers in implementing AI. The AI may handle many new workloads. Once Microsoft optimizes them, system efficiency will increase, lowering costs. It will also result in higher conversion rates as customers subscribe to Azure OpenAI API.
Microsoft earned the stock upgrade for continually finding additional revenue sources. Copilot will monetize by introducing various price meters. Customers may sign up for a consumption meter or a per-user subscription. The flexible fee schedule should increase monetization rates, boosting profits.
MaxLinear (MXL)
Source: Shutterstock.com
MaxLinear (NASDAQ:MXL) earned multiple buy ratings in the last week. The highest price target is $48.00.
The hardware company of integrated radio-frequency analog posted weak expectations that missed the analyst forecast. It expects revenue of between $175 million to $205 million. Analysts expected $230 million.
The company’s unwillingness to offer a forecast for the rest of the year hurt MXL stock. The company discussed inventory across all of its end markets, especially in broadband and connectivity. It needs to work through the inventory glut in the second half of the year first.
While demand for hyper scaler solutions unfolds, MaxLinear did not want to issue a strong forecast for the second half of this year. CFO Steve Litchfield sees optical product ramps later, accelerating in 2024.
The company lowered operating expenditure in Q1. It expects costs to fall in Q2, aligning with the revenue headwinds. It will need demand to continue after it works down its revenue first.
Cloudflare (NET)
Source: IgorGolovniov / Shutterstock.com
Cloudflare (NYSE:NET) earned mixed ratings from analysts after posting weak quarterly results. Goldman Sachs issued a ‘Sell’ rating from a 0.5-star analyst. Conversely, analysts from three different firms but with 0.5-star ratings called NET stock a buy.
CloudFlare’s business is slowing down as its startup customers face tighter funding. Revenue increased by 37% to $290.2 million, yet the firm still posted a GAAP loss of $47.3 million.
Look closely at the condensed consolidated statement of operations. Stock-based compensation rose to $61.7 million, up from $41.8 million last year.
CFO Thomas Seifert said that the company faced a more challenging quarter than expected. While it expected an elongation in closing sales deals, the company was not ready for the deteriorating environment. Expenses grew while sales slumped.
CEO Matthew Prince said that AI companies of all sizes are having a positive impact on the business.
Cloudflare may offer both an efficient back-end and cybersecurity. In the short term, investors should not count on the momentum of AI to lift this company to profitability.
Sanofi (SNY)
Source: nitpicker / Shutterstock.com
Sanofi (NASDAQ:SNY) earned a “buy” rating from Bank of America (NYSE:BAC) and a $64 price target. Specialty care, vaccines, and consumer healthcare strength lifted sales by 5.5% Y/Y.
In the last quarter, the flu season boosted vaccine demand. Momentum will continue as it expands Efluelda in Europe, a flu vaccine for seniors. It has a sizable volume of trivalent to quadrivalent vaccine formulations that China and Mexico demand.
Sanofi earned the stock upgrade as analysts expect positive momentum to continue. The company has a solid ongoing supply execution that will fulfill vaccine demand in the year ahead.
SNY stock should get a lift later this year during the flu season. Sanofi will book strong revenue for influenza vaccines in the third and fourth quarters.
Unlike other drug companies, Sanofi does not have a loss of exclusivity headwinds that would hurt its growth. Instead, it offers attractive growth from products like Tamiflu and Dupixent.
Tractor Supply (TSCO)
Source: Shutterstock
An analyst at Telsey Advisory issued a “buy” rating on Tractor Supply (NASDAQ:TSCO) with a $270 price target. The largest rural lifestyle retailer in the U.S. posted modest comparable sales store growth of 2.1%. It benefited from the strength in consumable, usable, and edible categories. It expects to earn up to $10.60 a share in FY 2023.
CEO Hal Lawton said that the cooler spring weather is slowing its sales recovery. As the company progresses into the summer, the annual business momentum will benefit from the cultivation of farms.
In particular, investors should expect a favorable comparison to last year. In 2022, the U.S. experienced a one-in-10-year drought.
Spending in the consumer sector remains strong. For example, consumers are spending more in poultry feed. Tractor Supply’s CEO said that organic fee continues to be the strongest segment in its feed. Dog food demand continues to be strong. The strong cat food market is also healthy.
On the date of publication, Chris Lau 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 Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get actionable insight to achieve strong investment returns.
The post 7 Stock Upgrades and Downgrades Alerts You Cannot Ignore appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV AbbVie $149.25 INTC Intel $30.65 MSFT Microsoft $304.40 MXL MaxLinear $24.14 NET Cloudflare $41.90 SNY Sanofi $ 54.22 TSCO Tractor Supply $243.31 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) earned multiple “buy” ratings in the last week. In Q1/2023, AbbVie posted revenue and earnings declines. AbbVie has five additional indications for Rinvoq and Two for Skyrizi. | ABBV AbbVie $149.25 INTC Intel $30.65 MSFT Microsoft $304.40 MXL MaxLinear $24.14 NET Cloudflare $41.90 SNY Sanofi $ 54.22 TSCO Tractor Supply $243.31 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) earned multiple “buy” ratings in the last week. In Q1/2023, AbbVie posted revenue and earnings declines. AbbVie has five additional indications for Rinvoq and Two for Skyrizi. | ABBV AbbVie $149.25 INTC Intel $30.65 MSFT Microsoft $304.40 MXL MaxLinear $24.14 NET Cloudflare $41.90 SNY Sanofi $ 54.22 TSCO Tractor Supply $243.31 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) earned multiple “buy” ratings in the last week. In Q1/2023, AbbVie posted revenue and earnings declines. AbbVie has five additional indications for Rinvoq and Two for Skyrizi. | ABBV AbbVie $149.25 INTC Intel $30.65 MSFT Microsoft $304.40 MXL MaxLinear $24.14 NET Cloudflare $41.90 SNY Sanofi $ 54.22 TSCO Tractor Supply $243.31 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) earned multiple “buy” ratings in the last week. In Q1/2023, AbbVie posted revenue and earnings declines. AbbVie has five additional indications for Rinvoq and Two for Skyrizi. |
22570.0 | 2023-05-04 00:00:00 UTC | 7 Dividend-Paying Large-Cap Stocks to Buy in May | ABBV | https://www.nasdaq.com/articles/7-dividend-paying-large-cap-stocks-to-buy-in-may-0 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Large-cap stocks are those that have a market capitalization above $10 billion and are synonymously known as big cap stocks. A company’s market capitalization is calculated by multiplying the share price by the number of shares outstanding. By that metric, all of the shares listed below qualify as large cap. Each stock listed below also pays out a dividend, providing shareholders with a dependable source of income.
May is a great month to buy these companies despite the old adage to “sell in May and go away.” There may be a historical precedent for weaker performance during the summer, but investors in these dividend-paying large-cap stocks generate passive income year round. Investors who choose to direct their capital into the safety of large-cap dividend stocks should consider doing so right now, at least in these names.
AVGO Broadcom $610.16
RTX Raytheon $95.92
LIN Linde $360.80
ABBV AbbVie $147.36
HSY Hershey $274.64
MA Mastercard $376.12
UNH UnitedHealth Group $487.28
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Broadcom (NASDAQ:AVGO) is a semiconductor and infrastructure software solutions firm with a strong history. It is indeed among the group of large-cap stocks, boasting a market cap north of $250 billion. Broadcom designs, develops, and sells its software well. This is reflected in the company’s strong fundamentals and valuation metrics, which I think make it a company worthy of investment.
Although it is currently earnings season, Broadcom actually released its results two months ago. Earnings were strong, and the market reacted in kind, sending share prices from $598 to around $630 overnight. That would have been a better time to establish a position, but now is as good a time as any. That’s partly because the company’s share price has since sunk back down toward the $610 level, significantly below the average analyst target price above $700.
In short, Broadcom grew its revenue 16% on a year-over-year basis. This enabled the company to repurchase shares and provide a decent outlook for 8% growth in Q2.
Broadcom is still working to acquire VMWare, which is likely to spike its stock price closer to that $700 level if it goes through.
Raytheon (RTX)
Source: JHVEPhoto / Shutterstock.com
There’s good reason to believe Raytheon (NYSE:RTX) stock could move $10 higher toward its target price in the coming months. The defense company released Q1 results on April 25 which showed investors a strong, predictable firm with good prospects.
Raytheon reported 10% overall sales growth along with 10% organic growth. So, why should RTX stock be expected to grow now? I think the answer to that question relates to a few key factors. For one, demand for its products and services is high. The company has a record $180 billion backlog and a book-to-bill ratio of 1.25. Book-to-bill is a comparison of booked orders relative to those that have been processed and are ready to bill.
Those figures seem to vindicate the general idea that defense spending is trending upward as geopoltical tensions rise. Raytheon reduced its dividend in 2021, but has since increased it twice. The dividend yields a modest 2.2% currently and is at a healthy payout range.
Linde (LIN)
Source: Gorodenkoff / Shutterstock.com
Linde (NYSE:LIN) also pays a modest dividend, but is a company that has a more reliable track record than Raytheon’s. Currently, LIN stock yields 1.4%, and was last reduced in 1996. Linde is an industrial gases firm with a global footprint and serves multiple end markets from chemicals & energy, to healthcare, manufacturing and more.
Linde’s Q1 earnings report was quite satisfactory overall. Although sales were flat at $8.2 billion and up only 3% year-over-year, the period was strong overall. Operating profit increased by over 16%, reaching $2 billion. However, earnings per share was where Linde really shined. The company delivered earnings per share of $3.42, well beyond the highest end of the analyst range. In fact, it was the fourth straight quarter in which Linde’s EPS exceeded analysts’ predictions.
Linde’s continued strong earnings performance suggests that it has strong upside potential over the long-term.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Now is the time to invest in AbbVie (NYSE:ABBV), even as Humira sales decline sharply. The blockbuster rheumatoid arthritis drug accounted for $5.587 billion of AbbVie’s $12.23 billion in sales during Q1. However, sales also declined sharply for the drug, falling 25.2% year-over-year.
That led to an overall sales decline at AbbVie of 9.7%. None of this sounds particularly positive. AbbVie relies on Humira, which is losing patent protection for a large portion of its business. A predictable decline is occurring as expected.
But there’s a caveat here. AbbVie’s sales were slightly above those expected on Wall Street. The earnings beat, though small, suggests AbbVie is strategically doing what it should be, in promoting the other parts of its portfolio and pushing for greater sales and market share.
AbbVie didn’t do worse than expected, but investors simply didn’t care to see Humira sales soften, although everyone knew they would. The markets were being irrational when they dinged ABBV stock for these results, meaning there’s an opportunity for keen investors.
Hershey (HSY)
Source: George Sheldon / Shutterstock.com
Hershey (NYSE:HSY) stock informs investors why any sort of business improvement is positive, no matter how it comes. Let me explain.
Hershey currently expects sales to decline by 8% in 2023 after releasing Q1 earnings on April 27. Additionally, the company expects its earnings per share to shrink by 15%. This is a case of seemingly bad news being good news.
An 8% decline in 2023 sales is an upward adjustment to the high end of Hershey’s previous range. That is also true for its earnings per share figures. Indeed, this appears to all be a result of strong consumer demand that resulted in a revenue increase of 12.1% (12.2% organic) in Q1, with overall revenue reaching $2.898 billion. Net income also came in at $587.2 million, up 10.9%.
These strong results are attributable to the fact that consumers remain willing to pay more for everyday items. That truth has been evident across the market as earnings continue to come in and companies continue to report the same idea that consumers are still willing to absorb higher prices.
Mastercard (MA)
Source: Alexander Yakimov / Shutterstock.com
Mastercard (NYSE:MA) is a dividend-paying stock to consider buying right now. Notably, MA stock pays a very modest 57 cent dividend that yields 0.6%. Admittedly, that isn’t a particularly compelling reason to buy. Investors don’t really buy this stock for its dividend – it’s the company’s growth profile that continues to shine.
Indeed, Mastercard is a smart choice right now for a different set of reasons. Consumer spending remains very strong for one. Mastercard notes as much in its earnings report. Management also notes that cross-border travel continues to strengthen given the company further tailwinds.
But at the same time, that’s all a positive spin on a bitter truth. American credit card debt is spiraling out of control. It reached $986 billion in total in Q4, up by $61 billion in Q3. American consumer spending benefits Mastercard tremendously as balances rise. The bill is going to come due, and Mastercard will likely be one of the primary beneficiaries.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
UnitedHealth Group (NYSE:UNH) continues to be a strong pick among large-cap dividend stocks.
The insurance and healthcare provider’s better-than-expected first quarter results reaffirm that idea. The company’s earnings per share of $6.26 beat expectations by 10 cents. Likewise, the company’s medical loss ratio, at 82.2%, came in lower than expected. That means the company paid fewer medical care premiums overall, in turn contributing to stronger earnings per share figures.
UnitedHealth Group’s dividend is rock-solid, yet modest. Currently, UNH stock yields only 1.35%, but was last reduced in 1990. Let’s run some hypothetical math here to understand the real beauty of UNH stock as an investment. Shares currently trade for $492 but have a target price of $596. Assuming dividends remain the same for the next year an investor could reasonably expect their $492 to be worth $602.60 if analysts are correct ($596 + 1.65(4)). That equates to a 22.47% return. That’s an excellent return over a 12 to 18 month period.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Dividend-Paying Large-Cap Stocks to Buy in May appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The earnings beat, though small, suggests AbbVie is strategically doing what it should be, in promoting the other parts of its portfolio and pushing for greater sales and market share. AVGO Broadcom $610.16 RTX Raytheon $95.92 LIN Linde $360.80 ABBV AbbVie $147.36 HSY Hershey $274.64 MA Mastercard $376.12 UNH UnitedHealth Group $487.28 Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is a semiconductor and infrastructure software solutions firm with a strong history. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Now is the time to invest in AbbVie (NYSE:ABBV), even as Humira sales decline sharply. | AVGO Broadcom $610.16 RTX Raytheon $95.92 LIN Linde $360.80 ABBV AbbVie $147.36 HSY Hershey $274.64 MA Mastercard $376.12 UNH UnitedHealth Group $487.28 Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is a semiconductor and infrastructure software solutions firm with a strong history. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Now is the time to invest in AbbVie (NYSE:ABBV), even as Humira sales decline sharply. The blockbuster rheumatoid arthritis drug accounted for $5.587 billion of AbbVie’s $12.23 billion in sales during Q1. | AVGO Broadcom $610.16 RTX Raytheon $95.92 LIN Linde $360.80 ABBV AbbVie $147.36 HSY Hershey $274.64 MA Mastercard $376.12 UNH UnitedHealth Group $487.28 Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is a semiconductor and infrastructure software solutions firm with a strong history. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Now is the time to invest in AbbVie (NYSE:ABBV), even as Humira sales decline sharply. The blockbuster rheumatoid arthritis drug accounted for $5.587 billion of AbbVie’s $12.23 billion in sales during Q1. | AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Now is the time to invest in AbbVie (NYSE:ABBV), even as Humira sales decline sharply. AVGO Broadcom $610.16 RTX Raytheon $95.92 LIN Linde $360.80 ABBV AbbVie $147.36 HSY Hershey $274.64 MA Mastercard $376.12 UNH UnitedHealth Group $487.28 Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is a semiconductor and infrastructure software solutions firm with a strong history. The blockbuster rheumatoid arthritis drug accounted for $5.587 billion of AbbVie’s $12.23 billion in sales during Q1. |
22571.0 | 2023-05-04 00:00:00 UTC | June 23rd Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/june-23rd-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $145.00 strike price has a current bid of $2.46. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $145.00, but will also collect the premium, putting the cost basis of the shares at $142.54 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $148.00/share today.
Because the $145.00 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 1.70% return on the cash commitment, or 12.38% 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 $145.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $3.25. If an investor was to purchase shares of ABBV stock at the current price level of $148.00/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $150.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.55% if the stock gets called away at the June 23rd 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 $150.00 strike highlighted in red:
Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.20% boost of extra return to the investor, or 16.03% 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 $148.00) 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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Funds Holding MPEL
Funds Holding SPLK
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 $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 23rd expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 23rd expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $145.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $3.25. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 23rd expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 23rd 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 23rd expiration. |
22572.0 | 2023-05-03 00:00:00 UTC | 2 Things About AbbVie That Investors Are Ignoring | ABBV | https://www.nasdaq.com/articles/2-things-about-abbvie-that-investors-are-ignoring | nan | nan | Investors were ready for declines in AbbVie's (NYSE: ABBV) blockbuster immunology drug Humira. The product now is facing competition in the U.S. So, seeing a 26% drop in Humira's U.S. first-quarter sales wasn't a surprise. And AbbVie has been grooming its newer immunology drugs -- Rinvoq and Skyrizi -- to eventually compensate for Humira and even drive further growth.
That's probably why, when Rinvoq and Skyrizi missed some analysts' forecasts for the quarter, AbbVie shares slipped. Still, it's important to look at the general trend and not focus on just one quarter. And if we do that, there's reason to be optimistic about AbbVie. Let's check out two things investors are ignoring.
1. Rinvoq and Skyrizi are on track to meet goals
Yes, Rinvoq and Skyrizi each missed certain analysts' forecasts. But both drugs still posted double-digit gains in revenue. Rinvoq revenue increased more than 47% to $686 million. And Skyrizi revenue climbed more than 44% to $1.3 billion in the quarter.
Importantly, both drugs' growth rates during the first quarter met AbbVie's expectations -- and they're on track to, together, bring in $11 billion in revenue this year. The company also said the products are showing solid performance across all indications. For example, Skyrizi has taken the lead in the U.S. biologics market for psoriasis with 30% share of prescriptions.
Today, Rinvoq is approved in five indications and awaiting a regulatory decision on Crohn's disease. Skyrizi is approved in three indications and soon will file globally for approval in ulcerative colitis.
It's clear investors will focus on these two drugs since they are likely to drive growth as Humira sales decline. The eventual goal is for Rinvoq and Skyrizi, together, to generate more than $21 billion in annual revenue in 2027. That would even surpass Humira's peak revenue. Can these newer immunology drugs do it? So far, there's reason to be optimistic.
2. Aesthetics and neuroscience are looking good
AbbVie generates billions of dollars in annual revenue from both its aesthetics and neuroscience portfolios. And performance this year is looking good. In fact, the company plans to increase its annual outlook for aesthetics and neuroscience.
We'll talk about aesthetics first. AbbVie sells two of the world's leading products -- Botox for wrinkles and the Juvederm line of filler products. This is a positive point. And it should help AbbVie over time benefit from aglobal marketthat's growing in the double digits. AbbVie aims for $9 billion in total aesthetics sales by the end of the decade.
Even in today's environment, hurt by rising inflation and coronavirus disruptions in the key market of China, AbbVie is reporting positive news. First-quarter global aesthetics revenue totaled $1.3 billion, beating the company's expectations. That's thanks to a big rebound in China in March. The country is the business' second-biggest market -- and AbbVie now expects demand to continue throughout the year.
As for neuroscience, revenue soared more than 13% to $1.6 billion. Blockbuster Vraylar performed "exceptionally well," the company said. The drug got a boost from a recent new approval -- for use as an adjunctive therapy to antidepressants in major depressive disorder. This significantly increased prescriptions, AbbVie said.
What does this mean for investors?
AbbVie shares may not take off immediately. The company still is transitioning from top Humira sales to growth led by other products. Investors may want to see a few quarters of progress before betting on AbbVie. But the good news here is this opens up the door to opportunity for long-term investors.
Today, you can pick up shares of AbbVie for only about 14 times forward earnings estimates. That's a deal considering AbbVie's exciting new chapter in immunology -- and potential for more success in the growth markets of aesthetics and neuroscience.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And AbbVie has been grooming its newer immunology drugs -- Rinvoq and Skyrizi -- to eventually compensate for Humira and even drive further growth. Importantly, both drugs' growth rates during the first quarter met AbbVie's expectations -- and they're on track to, together, bring in $11 billion in revenue this year. Even in today's environment, hurt by rising inflation and coronavirus disruptions in the key market of China, AbbVie is reporting positive news. | And AbbVie has been grooming its newer immunology drugs -- Rinvoq and Skyrizi -- to eventually compensate for Humira and even drive further growth. That's probably why, when Rinvoq and Skyrizi missed some analysts' forecasts for the quarter, AbbVie shares slipped. Investors were ready for declines in AbbVie's (NYSE: ABBV) blockbuster immunology drug Humira. | And AbbVie has been grooming its newer immunology drugs -- Rinvoq and Skyrizi -- to eventually compensate for Humira and even drive further growth. Importantly, both drugs' growth rates during the first quarter met AbbVie's expectations -- and they're on track to, together, bring in $11 billion in revenue this year. Aesthetics and neuroscience are looking good AbbVie generates billions of dollars in annual revenue from both its aesthetics and neuroscience portfolios. | That's probably why, when Rinvoq and Skyrizi missed some analysts' forecasts for the quarter, AbbVie shares slipped. Importantly, both drugs' growth rates during the first quarter met AbbVie's expectations -- and they're on track to, together, bring in $11 billion in revenue this year. Investors were ready for declines in AbbVie's (NYSE: ABBV) blockbuster immunology drug Humira. |
22573.0 | 2023-05-03 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-22 | 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. |
22574.0 | 2023-05-02 00:00:00 UTC | Vertex Pharmaceuticals Just Lost a Potential Rival. Is the Stock a Buy? | ABBV | https://www.nasdaq.com/articles/vertex-pharmaceuticals-just-lost-a-potential-rival.-is-the-stock-a-buy | nan | nan | Vertex Pharmaceuticals (NASDAQ: VRTX) is the global leader in cystic fibrosis (CF) treatment. The company is known for its combination therapies targeting a defective protein that causes the disease's devastating symptoms.
But one possible threat to market share waited in the wings. AbbVie (NYSE: ABBV) had shepherded its own combination-therapy candidate -- also targeting the defective protein -- into phase 2 studies.
Just recently, though, AbbVie ended development of the potential treatment and dropped its CF program. That means Vertex lost a potential rival, and one with significant resources. AbbVie is forecast to become the No. 1 pharmaceutical company by prescription-drug market share later this decade, according to Evaluate. Does this big player's CF exit make Vertex a buy? Let's find out.
Dominance and growth
First, let's talk about Vertex's dominance and potential growth in CF. Right now, the company sells four CF drugs. Its biggest one is the newest: Trikafta, approved in 2019.
Like Vertex's other CF drugs, it improves the function of the cystic fibrosis transmembrane conductance regulator (CFTR) protein. These types of drugs are game changers for those suffering from the disease. As a result, doctors and patients have flocked to them -- and they have brought in billions of dollars for Vertex.
Trikafta addresses the most common CF genetic mutation, so it's able to treat 90% of patients. And there's hope for the other 10%. These are patients who don't produce any CFTR protein. Vertex is working on a potential therapy for them with Moderna, and the partners recently launched clinical trials. This represents possible growth for Vertex down the road.
Also, Trikafta's growth is far from over. The treatment recently won U.S. regulatory approval for use in children ages 2 through 5. This means Trikafta could reach an additional 900 patients.
The therapy's revenue also could grow as more countries approve reimbursements. More than 20,000 CF patients in North America, Europe, Australia, and New Zealand are candidates for Vertex's medicines but aren't yet being treated with them.
So, Vertex has plenty of growth on the horizon thanks to the CF portfolio. And the company's CF program probably won't depend on just Trikafta. Vertex is testing a next-in-class triple combination therapy in phase 3 trials against its top drug. And this candidate might win.
It already is more convenient, with one dose per day rather than Trikafta's two. Vertex aims to complete the trial of this potential new product this year.
In 2021, Vertex predicted it would dominate CF treatment until at least the late 2030s. Considering Trikafta's growth and the possibility of an even better product just ahead, there's reason to be confident.
The AbbVie decision
Now, let's get back to the AbbVie decision. The big pharma company decided its candidate's trial results weren't compelling enough to merit more research. This treatment represented AbbVie's entire CF program, so it's not surprising the company decided to completely exit CF.
If AbbVie's candidate eventually demonstrated superiority to Trikafta, and if the company could have offered such a therapy at a lower price, then it might have hurt Vertex's market share. So AbbVie's exit is good news for Vertex.
Still, I don't think AbbVie represented an enormous threat. Vertex has developed expertise in CF and has advanced to such a point that it will be difficult for another company to leap ahead.
Considering all of this, should you buy Vertex shares? I would have bought its shares even if AbbVie had continued its program. Vertex has an extremely solid leadership position in CF. In its first-quarter earnings report this week, Vertex reiterated its forecast for full-year product revenue of at least $9.55 billion.
The company also has more than $11 billion in cash, and free cash flow is on the rise. This means Vertex has what it takes to support its programs and invest externally for growth.
VRTX free cash flow data by YCharts.
Vertex trades for 23 times forward earnings estimates, which might look expensive compared to certain pharmaceutical names. For example, AbbVie trades for 14. But Vertex's position in the billion-dollar CF market and its pipeline of exciting programs make it worth the price. And that's why it's a top stock to buy now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If AbbVie's candidate eventually demonstrated superiority to Trikafta, and if the company could have offered such a therapy at a lower price, then it might have hurt Vertex's market share. AbbVie (NYSE: ABBV) had shepherded its own combination-therapy candidate -- also targeting the defective protein -- into phase 2 studies. Just recently, though, AbbVie ended development of the potential treatment and dropped its CF program. | AbbVie (NYSE: ABBV) had shepherded its own combination-therapy candidate -- also targeting the defective protein -- into phase 2 studies. Just recently, though, AbbVie ended development of the potential treatment and dropped its CF program. AbbVie is forecast to become the No. | This treatment represented AbbVie's entire CF program, so it's not surprising the company decided to completely exit CF. If AbbVie's candidate eventually demonstrated superiority to Trikafta, and if the company could have offered such a therapy at a lower price, then it might have hurt Vertex's market share. AbbVie (NYSE: ABBV) had shepherded its own combination-therapy candidate -- also targeting the defective protein -- into phase 2 studies. | This treatment represented AbbVie's entire CF program, so it's not surprising the company decided to completely exit CF. AbbVie (NYSE: ABBV) had shepherded its own combination-therapy candidate -- also targeting the defective protein -- into phase 2 studies. Just recently, though, AbbVie ended development of the potential treatment and dropped its CF program. |
22575.0 | 2023-05-02 00:00:00 UTC | AmerisourceBergen raises profit forecast on demand for pricier specialty drugs | ABBV | https://www.nasdaq.com/articles/amerisourcebergen-raises-profit-forecast-on-demand-for-pricier-specialty-drugs | nan | nan | May 2 (Reuters) - AmerisourceBergen Corp ABC.N on Tuesday raised full-year profit forecast and beat estimates for the second quarter, as the drug distributor benefited from demand for costly specialty therapies.
The Pennsylvania-based company has been looking to diversify its specialty services business, through which it distributes medicines, both branded and generic, for the treatment of complex and chronic conditions like cancer and rheumatoid arthritis, among others.
It is also expected to benefit from the launch of cheaper versions of some branded drugs, as drugmakers like AbbVie Inc ABBV.N face looming patent cliffs for its top-selling drugs, like Humira for rheumatoid arthritis treatment that lost its exclusivity this year in the US market.
AmerisourceBergen now expects adjusted 2023 earnings in the range of $11.70 to $11.90 per share, compared with its prior forecast of $11.50 to $11.75. Analysts were expecting annual profit of $11.63 per share.
Its U.S. sales rose 11% to $56.7 billion in the quarter ended March 31, compared with a year earlier.
The biosimilar market represents a $31 billion revenue opportunity by 2025 for U.S. drug distributors such as AmerisourceBergen, Evercore ISI analyst Elizabeth Anderson said in a note ahead of the results.
The drug distributor recently acquired a minority stake in cancer care provider OneOncology for around $685 million, and had announced plans to rename itself as Cencora in the second half of the year.
For the second quarter, it reported total revenue of $63.5 billion, topping analysts' estimates of $60.4 billion, according to Refinitiv data.
Excluding one-off items, profit came in at $3.50 per share, beating expectations of $3.29 per share.
(Reporting by Mariam Sunny in Bengaluru; Editing by Shweta Agarwal)
((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. | It is also expected to benefit from the launch of cheaper versions of some branded drugs, as drugmakers like AbbVie Inc ABBV.N face looming patent cliffs for its top-selling drugs, like Humira for rheumatoid arthritis treatment that lost its exclusivity this year in the US market. May 2 (Reuters) - AmerisourceBergen Corp ABC.N on Tuesday raised full-year profit forecast and beat estimates for the second quarter, as the drug distributor benefited from demand for costly specialty therapies. The biosimilar market represents a $31 billion revenue opportunity by 2025 for U.S. drug distributors such as AmerisourceBergen, Evercore ISI analyst Elizabeth Anderson said in a note ahead of the results. | It is also expected to benefit from the launch of cheaper versions of some branded drugs, as drugmakers like AbbVie Inc ABBV.N face looming patent cliffs for its top-selling drugs, like Humira for rheumatoid arthritis treatment that lost its exclusivity this year in the US market. May 2 (Reuters) - AmerisourceBergen Corp ABC.N on Tuesday raised full-year profit forecast and beat estimates for the second quarter, as the drug distributor benefited from demand for costly specialty therapies. The biosimilar market represents a $31 billion revenue opportunity by 2025 for U.S. drug distributors such as AmerisourceBergen, Evercore ISI analyst Elizabeth Anderson said in a note ahead of the results. | It is also expected to benefit from the launch of cheaper versions of some branded drugs, as drugmakers like AbbVie Inc ABBV.N face looming patent cliffs for its top-selling drugs, like Humira for rheumatoid arthritis treatment that lost its exclusivity this year in the US market. May 2 (Reuters) - AmerisourceBergen Corp ABC.N on Tuesday raised full-year profit forecast and beat estimates for the second quarter, as the drug distributor benefited from demand for costly specialty therapies. The biosimilar market represents a $31 billion revenue opportunity by 2025 for U.S. drug distributors such as AmerisourceBergen, Evercore ISI analyst Elizabeth Anderson said in a note ahead of the results. | It is also expected to benefit from the launch of cheaper versions of some branded drugs, as drugmakers like AbbVie Inc ABBV.N face looming patent cliffs for its top-selling drugs, like Humira for rheumatoid arthritis treatment that lost its exclusivity this year in the US market. AmerisourceBergen now expects adjusted 2023 earnings in the range of $11.70 to $11.90 per share, compared with its prior forecast of $11.50 to $11.75. For the second quarter, it reported total revenue of $63.5 billion, topping analysts' estimates of $60.4 billion, according to Refinitiv data. |
22576.0 | 2023-05-02 00:00:00 UTC | Vertex Pharmaceuticals Stock Is an Even Better Buy Now Thanks to AbbVie | ABBV | https://www.nasdaq.com/articles/vertex-pharmaceuticals-stock-is-an-even-better-buy-now-thanks-to-abbvie | nan | nan | While the overall market plummeted last year, shares of Vertex Pharmaceuticals (NASDAQ: VRTX) skyrocketed 31%. So far in 2023, the stock is up nearly 20%.
I've shouted from the rooftop for a long time that Vertex is one of the best biotech stocks around. And I'm more convinced of that than ever after a key development last week. Here's why Vertex stock is an even better buy now thanks to AbbVie (NYSE: ABBV).
Throwing in the towel
AbbVie had been evaluating a triple-drug combo targeting cystic fibrosis (CF) in phase 2 testing. Note the use of the past tense in that statement. The company announced in its first-quarterearnings callon April 27, 2023, that it's throwing in the towel on its CF program.
Chief Scientific Officer Tom Hudson said in the Q1 call that AbbVie recently analyzed data from the phase 2 study. He stated bluntly that the triplet combo "did not work."
When asked by an analyst if AbbVie has any other asset in early development that it might move forward, Hudson replied that the company doesn't have any other CF pipeline candidates. He added, "So we don't have other options than to discontinue the CF program."
This wasn't AbbVie's first setback in CF. Last year, the company halted the development of ABBV-119, which it had licensed from Galapagos. Hudson alluded to the failure of the experimental CF drug in his comments.
The only game in town
Vertex remains the only company with approved therapies that target the underlying cause of CF. With AbbVie's decision to shut down its CF program, that leaves only two other drugmakers that have potentially competitive drugs in clinical testing.
Eloxx Pharmaceuticals is conducting a phase 2 study of ELX-02 in treating CF. However, in the company's latest quarterly update, it didn't even mention this study. Instead, Eloxx appears to be focusing much more heavily on the potential for ELX-02 to treat Alport syndrome, a genetic kidney disease.
4D Molecular Therapeutics is only in phase 1 testing with its experimental CF therapy 4D-710. The small drugmaker expects to present interim data from the early stage study at a scientific conference this quarter. But it has a long way to go before having even a possibility of being in a position to compete against Vertex.
Vertex doesn't lose patent protection for its top CF drug, Trikafta, until 2037. The company isn't resting on its laurels, either. What could be Vertex's most powerful CF therapy yet -- a triple-drug combo featuring vanzacaftor -- is in late-stage testing. This vanzacaftor triplet could also be the company's most profitable CF therapy yet, if approved. Vertex's royalties will be much lower with it compared to its other CF drugs.
Looking beyond CF
The company's prospects beyond CF are even more exciting. Vertex and its partner, CRISPR Therapeutics, hope to soon win approvals in the U.S. and Europe for exa-cel in treating sickle cell disease and transfusion-dependent beta-thalassemia. The gene-editing therapy seems likely to become a megablockbuster.
Vertex expects to wrap up late-stage testing of its non-opioid pain drug VX-548 as soon as late 2023. It could be another multibillion-dollar therapy for the company if approved.
The big biotech is evaluating inaxaplin in a pivotal study targeting APOL1-mediated kidney disease. This indication impacts more patients than CF does. In addition, Vertex's pipeline includes earlier-stage programs focused on rare genetic disease alpha-1 antitrypsin deficiency and type 1 diabetes.
In the meantime, AbbVie's discontinuation of its CF program makes Vertex's monopoly even stronger. Vertex should be able to continue growing its CF revenue as it rolls out new products, secures additional reimbursements, and wins approvals in younger age groups.
This biotech stock was already a great pick. Now it's an even better one.
Find out why Vertex Pharmaceuticals is one of the 10 best stocks to buy now
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Keith Speights has positions in AbbVie and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When asked by an analyst if AbbVie has any other asset in early development that it might move forward, Hudson replied that the company doesn't have any other CF pipeline candidates. Here's why Vertex stock is an even better buy now thanks to AbbVie (NYSE: ABBV). Throwing in the towel AbbVie had been evaluating a triple-drug combo targeting cystic fibrosis (CF) in phase 2 testing. | Throwing in the towel AbbVie had been evaluating a triple-drug combo targeting cystic fibrosis (CF) in phase 2 testing. Here's why Vertex stock is an even better buy now thanks to AbbVie (NYSE: ABBV). Chief Scientific Officer Tom Hudson said in the Q1 call that AbbVie recently analyzed data from the phase 2 study. | Here's why Vertex stock is an even better buy now thanks to AbbVie (NYSE: ABBV). Throwing in the towel AbbVie had been evaluating a triple-drug combo targeting cystic fibrosis (CF) in phase 2 testing. Chief Scientific Officer Tom Hudson said in the Q1 call that AbbVie recently analyzed data from the phase 2 study. | Throwing in the towel AbbVie had been evaluating a triple-drug combo targeting cystic fibrosis (CF) in phase 2 testing. This wasn't AbbVie's first setback in CF. Here's why Vertex stock is an even better buy now thanks to AbbVie (NYSE: ABBV). |
22577.0 | 2023-05-02 00:00:00 UTC | High-Yield Pfizer Falls Off The COVID Cliff, And Survives | ABBV | https://www.nasdaq.com/articles/high-yield-pfizer-falls-off-the-covid-cliff-and-survives | nan | nan | Pfizer (NYSE: PFE) was expected to post a significant decline in revenue and earnings because of the slowing COVID business, and it did. However, the takeaway from the report is that business is better than expected, the company is growing at the core level, and the pipeline of new products is robust. That’s important because of the looming patent cliff, which is set to impact results in 2025.
Regarding Pfizer’s pipeline, the company has a record number of new products on track for release this year and early in 2024, with even more in the works; among the most promising new treatments is Xandi, which has been shown to reduce the risk of death in certain prostate cancer patients by more than 50%.
This means the 4.2% yielding dividend is as reliable as ever, and the stock presents a value among peers. Shares of Pfizer trade at only 11.5X earnings compared to 14X for AbbVie (NYSE: ABBV), 16X for Merck & Co. (NYSE: MRK) and an even higher 49X for AstraZeneca (NYSE: AZN) and none of them have a comparable yield. AbbVie is the closest at 3.85%, but it is facing 1 of the toughest patent cliffs on the docket.
AbbVie’s Humira was worth more than 36% of revenue in Q4 2022 and is losing patent protections this year. Regarding Pfizer’s dividend health, the company is paying less than 25% of the 2023 consensus estimate and is already outperforming the Marketbeat.com figures.
Pfizer Has Healthy Quarter, Shares Respond Favorably
Pfizer did not have a great quarter, with revenue falling 28.8% YOY to $18.3 billion, but it did have a much better-than-expected quarter and reaffirmed the guidance. The company’s revenue beat the consensus by $1.81 billion or 1100 basis points on unexpected strength in COVID sales and growth in the core business.
Revenue from Comirnaty and Paxlovid, the critical COVID treatments, came in at $7.1 billion or 38% of revenue, while the core business grew by 5%. On a segment basis, using the company’s new reporting structure, the Biopharma business contracted by 26% on a 37% decline in Pharma offset by 8% growth in Specialty products and a 1% decline in Oncology treatments.
The company experienced margin pressure and earnings declines, offset by share repurchases made in Q1 last year. On the bottom line, the GAAP earnings fell by 25%, and the adjusted by 24%, but both outpaced the near 29% decline in revenue and beat the consensus figures by a wide margin. The adjusted earnings beat consensus by more than 2500 basis points, and this strength may be expected in the current quarter.
Guidance was reaffirmed in a range that brackets the consensus for revenue and earnings. This positive for the market may lead to additional catalysts later in the year, assuming the company’s momentum persists into the current and following quarters.
The Analysts Could Spark Reversal For Pfizer Shares
The analysts haven’t come out with revisions to their outlook yet, and the trend ahead of the report was negative, but there is a bullish catalyst in the details. Despite lowering their price targets and ratings in Q1, the analysts view the stock as a Hold with about 25% upside potential.
Even the low price target is above the current price target, and many of the most recent is above that, putting the stock above a critical resistance point. That point is near $42; a sustainable rally may form if the market can get above there, and upward revisions from the analysts would help get it there.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Pfizer trade at only 11.5X earnings compared to 14X for AbbVie (NYSE: ABBV), 16X for Merck & Co. (NYSE: MRK) and an even higher 49X for AstraZeneca (NYSE: AZN) and none of them have a comparable yield. AbbVie is the closest at 3.85%, but it is facing 1 of the toughest patent cliffs on the docket. AbbVie’s Humira was worth more than 36% of revenue in Q4 2022 and is losing patent protections this year. | Shares of Pfizer trade at only 11.5X earnings compared to 14X for AbbVie (NYSE: ABBV), 16X for Merck & Co. (NYSE: MRK) and an even higher 49X for AstraZeneca (NYSE: AZN) and none of them have a comparable yield. AbbVie is the closest at 3.85%, but it is facing 1 of the toughest patent cliffs on the docket. AbbVie’s Humira was worth more than 36% of revenue in Q4 2022 and is losing patent protections this year. | Shares of Pfizer trade at only 11.5X earnings compared to 14X for AbbVie (NYSE: ABBV), 16X for Merck & Co. (NYSE: MRK) and an even higher 49X for AstraZeneca (NYSE: AZN) and none of them have a comparable yield. AbbVie is the closest at 3.85%, but it is facing 1 of the toughest patent cliffs on the docket. AbbVie’s Humira was worth more than 36% of revenue in Q4 2022 and is losing patent protections this year. | Shares of Pfizer trade at only 11.5X earnings compared to 14X for AbbVie (NYSE: ABBV), 16X for Merck & Co. (NYSE: MRK) and an even higher 49X for AstraZeneca (NYSE: AZN) and none of them have a comparable yield. AbbVie is the closest at 3.85%, but it is facing 1 of the toughest patent cliffs on the docket. AbbVie’s Humira was worth more than 36% of revenue in Q4 2022 and is losing patent protections this year. |
22578.0 | 2023-05-02 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-5 | 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 -4.2% over the past month versus the Zacks S&P 500 composite's +1.5% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 5.9% 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
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $2.89 per share, indicating a change of -14.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.9% over the last 30 days.
The consensus earnings estimate of $10.95 for the current fiscal year indicates a year-over-year change of -20.5%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.03 indicates a change of +0.7% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
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 $13.47 billion for the current quarter points to a year-over-year change of -7.6%. The $52.53 billion and $53.05 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 B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 5.9% 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 gained 5.9% 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 gained 5.9% 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 gained 5.9% over this period. |
22579.0 | 2023-05-01 00:00:00 UTC | Unusual Put Option Trade in Abbvie (ABBV) Worth $1,585.00K | ABBV | https://www.nasdaq.com/articles/unusual-put-option-trade-in-abbvie-abbv-worth-%241585.00k | nan | nan | On May 1, 2023 at 11:32:44 ET an unusually large $1,585.00K block of Put contracts in Abbvie (ABBV) was sold, with a strike price of $150.00 / share, expiring in 627 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 5.38 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 4530 funds or institutions reporting positions in Abbvie. This is an increase of 146 owner(s) or 3.33% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.76%, a decrease of 2.17%. Total shares owned by institutions increased in the last three months by 1.16% to 1,439,156K shares.
The put/call ratio of ABBV is 0.87, indicating a bullish outlook.
Analyst Price Forecast Suggests 11.43% Upside
As of April 24, 2023, the average one-year price target for Abbvie is $168.39. The forecasts range from a low of $136.35 to a high of $210.00. The average price target represents an increase of 11.43% from its latest reported closing price of $151.12.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is $55,229MM, a decrease of 2.66%. The projected annual non-GAAP EPS is $11.88.
What are Other Shareholders Doing?
Goodwin Daniel L holds 2K shares representing 0.00% ownership of the company.
NSBAX - Nuveen Santa Barbara Dividend Growth Fund - holds 957K shares representing 0.05% ownership of the company. In it's prior filing, the firm reported owning 1,013K shares, representing a decrease of 5.81%. The firm decreased its portfolio allocation in ABBV by 4.06% over the last quarter.
Chapin Davis holds 11K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 11K shares, representing an increase of 1.62%. The firm increased its portfolio allocation in ABBV by 89,180.28% over the last quarter.
Garrett Investment Advisors holds 4K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 4K shares, representing an increase of 10.65%. The firm decreased its portfolio allocation in ABBV by 1.16% over the last quarter.
Hikari Tsushin holds 110K shares representing 0.01% ownership of the company. No change in the last quarter.
Abbvie Declares $1.48 Dividend
On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of April 14, 2023 will receive the payment on May 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $151.12 / share, the stock's dividend yield is 3.92%. Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=237).
The current dividend yield is 1.05 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.38. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
See all Abbvie regulatory filings.
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. | On May 1, 2023 at 11:32:44 ET an unusually large $1,585.00K block of Put contracts in Abbvie (ABBV) was sold, with a strike price of $150.00 / share, expiring in 627 day(s) (on January 17, 2025). AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Fintel tracks all large options trades, and the premium spent on this trade was 5.38 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. | On May 1, 2023 at 11:32:44 ET an unusually large $1,585.00K block of Put contracts in Abbvie (ABBV) was sold, with a strike price of $150.00 / share, expiring in 627 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 5.38 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. There are 4530 funds or institutions reporting positions in Abbvie. | Abbvie Declares $1.48 Dividend On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). On May 1, 2023 at 11:32:44 ET an unusually large $1,585.00K block of Put contracts in Abbvie (ABBV) was sold, with a strike price of $150.00 / share, expiring in 627 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 5.38 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. | On May 1, 2023 at 11:32:44 ET an unusually large $1,585.00K block of Put contracts in Abbvie (ABBV) was sold, with a strike price of $150.00 / share, expiring in 627 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 5.38 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in ABBV options. There are 4530 funds or institutions reporting positions in Abbvie. |
22580.0 | 2023-05-01 00:00:00 UTC | Notable Monday Option Activity: ABBV, ORCL, MTCH | ABBV | https://www.nasdaq.com/articles/notable-monday-option-activity%3A-abbv-orcl-mtch | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 27,571 contracts have traded so far, representing approximately 2.8 million underlying shares. That amounts to about 52.6% of ABBV's average daily trading volume over the past month of 5.2 million shares. Especially high volume was seen for the $165 strike put option expiring May 19, 2023, with 3,505 contracts trading so far today, representing approximately 350,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange:
Oracle Corp (Symbol: ORCL) options are showing a volume of 36,899 contracts thus far today. That number of contracts represents approximately 3.7 million underlying shares, working out to a sizeable 52.4% of ORCL's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $95 strike call option expiring May 05, 2023, with 8,903 contracts trading so far today, representing approximately 890,300 underlying shares of ORCL. Below is a chart showing ORCL's trailing twelve month trading history, with the $95 strike highlighted in orange:
And Match Group Inc (Symbol: MTCH) options are showing a volume of 18,897 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 45.6% of MTCH's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $42.50 strike call option expiring May 19, 2023, with 6,234 contracts trading so far today, representing approximately 623,400 underlying shares of MTCH. Below is a chart showing MTCH's trailing twelve month trading history, with the $42.50 strike highlighted in orange:
For the various different available expirations for ABBV options, ORCL options, or MTCH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
CCE market cap history
Snap-on Earnings History
ACER 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 May 19, 2023, with 3,505 contracts trading so far today, representing approximately 350,500 underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 27,571 contracts have traded so far, representing approximately 2.8 million underlying shares. That amounts to about 52.6% of ABBV's average daily trading volume over the past month of 5.2 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: Oracle Corp (Symbol: ORCL) options are showing a volume of 36,899 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 27,571 contracts have traded so far, representing approximately 2.8 million underlying shares. That amounts to about 52.6% of ABBV's average daily trading volume over the past month of 5.2 million shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 27,571 contracts have traded so far, representing approximately 2.8 million underlying shares. Below is a chart showing MTCH's trailing twelve month trading history, with the $42.50 strike highlighted in orange: For the various different available expirations for ABBV options, ORCL options, or MTCH options, visit StockOptionsChannel.com. That amounts to about 52.6% of ABBV's average daily trading volume over the past month of 5.2 million shares. | Especially high volume was seen for the $165 strike put option expiring May 19, 2023, with 3,505 contracts trading so far today, representing approximately 350,500 underlying shares of ABBV. Below is a chart showing MTCH's trailing twelve month trading history, with the $42.50 strike highlighted in orange: For the various different available expirations for ABBV options, ORCL options, or MTCH options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 27,571 contracts have traded so far, representing approximately 2.8 million underlying shares. |
22581.0 | 2023-05-01 00:00:00 UTC | Where Will AbbVie Be in 5 Years? | ABBV | https://www.nasdaq.com/articles/where-will-abbvie-be-in-5-years | nan | nan | On paper, drugmaker AbbVie (NYSE: ABBV) isn't having the best year. The company recently lost patent exclusivity in the U.S for its biggest cash cow, immunology medicine Humira. This product has been the key asset for AbbVie over the 10 years since it split from Abbott Laboratories, so this is a big deal.
But even if AbbVie is nearly synonymous with Humira, can the company rise above this massive headwind and deliver solid returns to investors over the long run? To answer that, let's examine how things might unfold for AbbVie over the next five years.
Revenue growth should rebound, eventually
Humira generated peak annual sales of $21.2 billion last year. The first biosimilar for the medicine to be launched in the U.S. hit the market in late January. Considering that Humira alone made up about 37% of AbbVie's total revenue in 2022, it's not surprising that management expects its top line to decline for the next couple of years. Investors just got a taste of this dire situation when AbbVie released its first-quarter results.
But it isn't rare for drugmakers to see their revenue move in the wrong direction when dealing with patent cliffs. AbbVie has known for a long time that it had to prepare for life after Humira. The company's lineup should allow it to return to growth by 2025, partly thanks to a duo of immunology medicines, Skyrizi and Rinvoq, that will pick up much of Humira's slack.
These therapies largely overlap with many of Humira's indications and have even proven, in some cases, to be more effective. Here's one example. In a head-to-head clinical study of Skyrizi and Humira in patients with plaque psoriasis, the winner was Skyrizi, which allowed patients to achieve clear skin more often.
Many of those currently taking Humira will likely switch to some biosimilar version, but Skyrizi and Rinvoq continue to earn indications and grow their revenue. That won't stop in the next five years. Management expects these two products to surpass Humira's peak sales by 2027.
However, there's more to AbbVie's business, as it has several other promising products. One of them is Qulipta, which first earned approval in 2021 as a preventive treatment for migraine. Earlier this month, Qulipta won a label expansion in targeting chronic migraine. It also proved effective in a phase 3 trial in treating this debilitating condition in patients with prior treatment failure.
AbbVie's Botox franchise has been performing well, too, and should continue to see its sales grow over the next five years.
Expect brand-new products
In addition to its current lineup, AbbVie expects to launch new products over the coming few years that will help strengthen its business and drive stronger top-line growth. The drugmaker's pipeline features dozens of ongoing programs, many of which are existing medicines seeking label expansions. But some are entirely new clinical compounds.
One is telisotuzumab vedotin (Teliso-V), a potential therapy for non-small cell lung cancer (NSCLC). Teliso-V targets a group of NSCLC patients with overexpression of c-met (a type of protein), a small niche for which there currently is no specific therapy. The U.S. Food and Drug Administration awarded it the breakthrough designation, which is reserved for medicines that would be an improvement over existing treatment options. The therapy is currently undergoing a phase 3 clinical trial.
Another product for which AbbVie could earn approval relatively soon is RGX-314, which it's developing in collaboration with Regenxbio. RGX-314 is a potential gene therapy for wet age-related macular degeneration, an eye disease that causes blurred vision.
This highlights yet another way AbbVie could expand its lineup: by entering into strategic collaboration agreements with smaller drugmakers that have promising programs under their belts.
Still a terrific dividend stock
One of AbbVie's biggest selling points is the company's dividend history. It's in the exclusive club of Dividend Kings, having raised its payouts for 51 straight years (including its time as part of Abbott Labs). That isn't about to change.
Although revenue will drop for a little while, AbbVie is committed to rewarding its shareholders with dividend increases. With a cash payout ratio of about 41%, it has room to sustain more hikes. So expect AbbVie to still be a Dividend King in five years.
The company's business remains strong, even with Humira's biosimilar threat. That makes it a solid stock to buy and hold through the next half-decade and beyond.
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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. | Considering that Humira alone made up about 37% of AbbVie's total revenue in 2022, it's not surprising that management expects its top line to decline for the next couple of years. On paper, drugmaker AbbVie (NYSE: ABBV) isn't having the best year. This product has been the key asset for AbbVie over the 10 years since it split from Abbott Laboratories, so this is a big deal. | On paper, drugmaker AbbVie (NYSE: ABBV) isn't having the best year. This product has been the key asset for AbbVie over the 10 years since it split from Abbott Laboratories, so this is a big deal. But even if AbbVie is nearly synonymous with Humira, can the company rise above this massive headwind and deliver solid returns to investors over the long run? | Considering that Humira alone made up about 37% of AbbVie's total revenue in 2022, it's not surprising that management expects its top line to decline for the next couple of years. Expect brand-new products In addition to its current lineup, AbbVie expects to launch new products over the coming few years that will help strengthen its business and drive stronger top-line growth. Still a terrific dividend stock One of AbbVie's biggest selling points is the company's dividend history. | So expect AbbVie to still be a Dividend King in five years. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! On paper, drugmaker AbbVie (NYSE: ABBV) isn't having the best year. |
22582.0 | 2023-05-01 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-21 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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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. |
22583.0 | 2023-05-01 00:00:00 UTC | AbbVie Stock Plunged: Should You Buy the Dip? | ABBV | https://www.nasdaq.com/articles/abbvie-stock-plunged%3A-should-you-buy-the-dip | nan | nan | AbbVie (NYSE: ABBV) spent 11 weeks building solid momentum. Its stock climbed more than 14% during the period. But it took only one day to wipe out most of the gain.
The drugmaker's shares plunged last Thursday after AbbVie announced its first-quarter results. Although the pharma stock rebounded slightly on Friday, it's still well below the levels from earlier last week. Should you buy AbbVie stock on the dip?
Why AbbVie stock was hit so hard
There were several factors behind why AbbVie stock crashed last week. The most obvious reason is that sales for the company's longtime best-selling drug, Humira, sank 25% year over year with a 26% drop in the United States. Humira now faces biosimilar competition in the U.S. market.
Humira wasn't the only problem, though. Global sales of blood-cancer drug Imbruvica also plummeted by 25% year over year. AbbVie attributed the dismal performance to "to increasing competition and the cumulative impact of a suppressed market."
The company faced challenges with its aesthetics portfolio, too. Net revenue for the franchise slid 5.4% from the prior-year period. Although Botox Cosmetic sales rose 2.9%, it wasn't enough to offset a 13.4% sales decline for Juvederm.
Wall Street wasn't happy with the results for Humira's successors, Rinvoq and Skyrizi. First-quarter sales for both autoimmune-disease drugs missed analysts' estimates.
More to the story
Before total gloom and despair set in, however, it's important to note that there's more to the story with AbbVie's Q1 update. For one thing, the company actually beat the consensus Wall Street revenue estimate as well as its own internal top- and bottom-line expectations.
Humira's sales decline was fully anticipated. AbbVie CEO Rick Gonzalez maintained in the Q1 conference call that the company is "managing the erosion well."
Despite the lower aesthetics sales in Q1, the numbers were actually ahead of AbbVie's guidance. Senior vice president Carrie Strom, who heads up AbbVie's aesthetics business, said in the quarterly update that the Chinese market reopened faster than anticipated and the U.S. economy was a little stronger than projected.
What about those results for Rinvoq and Skyrizi that displeased Wall Street analysts? Sales for Rinvoq skyrocketed nearly 48% year over year to $686 million. Skyrizi delivered growth of nearly 45% with global sales of $1.36 billion.
AbbVie president Rob Michael stated in the Q1 call, "Growth rates in the first quarter for both products are consistent with our full-year expectations." The company continues to project 2023 combined sales for Rinvoq and Skyrizi of over $11 billion.
Sales for both drugs were negatively impacted by inventory destocking in the first quarter. However, Michael said that this destocking was factored into AbbVie's guidance and is typical for the beginning of the year. This shouldn't be an issue in the remaining quarters of 2023.
Buy on the dip?
My view is that nothing about AbbVie's long-term prospects was materially changed with the company's Q1 update. If you liked the stock before, you should like it even more now that it's available at a lower price.
And I think there are several reasons to like AbbVie. Its valuation is relatively attractive with shares currently trading below 15x forward earnings. The company continues to expect to deliver solid growth over the long term. AbbVie is also a Dividend King with a juicy dividend yield of over 3.9%.
It's easy to get caught up in all of the negative commentary when a stock falls as AbbVie did in recent days. However, the big drugmaker's prospects actually remain pretty good over the rest of the decade and beyond.
I think last week's sell-off was overdone. AbbVie appears to be a solid stock to buy on the dip, in my view.
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Keith Speights has positions in AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Senior vice president Carrie Strom, who heads up AbbVie's aesthetics business, said in the quarterly update that the Chinese market reopened faster than anticipated and the U.S. economy was a little stronger than projected. AbbVie president Rob Michael stated in the Q1 call, "Growth rates in the first quarter for both products are consistent with our full-year expectations." AbbVie (NYSE: ABBV) spent 11 weeks building solid momentum. | AbbVie president Rob Michael stated in the Q1 call, "Growth rates in the first quarter for both products are consistent with our full-year expectations." AbbVie (NYSE: ABBV) spent 11 weeks building solid momentum. The drugmaker's shares plunged last Thursday after AbbVie announced its first-quarter results. | Why AbbVie stock was hit so hard There were several factors behind why AbbVie stock crashed last week. 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 April 24, 2023 Keith Speights has positions in AbbVie. | Why AbbVie stock was hit so hard There were several factors behind why AbbVie stock crashed last week. AbbVie appears to be a solid stock to buy on the dip, in my view. AbbVie (NYSE: ABBV) spent 11 weeks building solid momentum. |
22584.0 | 2023-04-30 00:00:00 UTC | AbbVie's Blockbuster Is Falling Fast. Time to Sell? | ABBV | https://www.nasdaq.com/articles/abbvies-blockbuster-is-falling-fast.-time-to-sell | nan | nan | Last week wasn't a great one for a lot of pharmaceutical stock investors. Shares of AbbVie (NYSE: ABBV) dropped by about 8% on Thursday, April 27. The market was responding to an earnings report that was the company's first since its lead product, Humira, lost patent-protected exclusivity in the U.S. market.
Humira losing market share to Amgen's Amjevita and other biosimilars isn't the only reason AbbVie's stock tanked. Wall Street analysts who follow AbbVie were quick to point out decelerating sales growth for two recently launched drugs that are expected to offset Humira's losses.
The bad news
Going into 2023, AbbVie was leaning on U.S. Humira sales for about one-third of total revenue. Competition from lower-cost biosimilar versions hammered first-quarter Humira sales down by more than $2 billion compared to the previous quarter.
Humira is a treatment for arthritis and psoriasis that the Food and Drug Administration (FDA) first approved in 2002. Its sales peaked last year at $21.2 billion, but its losses could be more than offset by a pair of more recently launched drugs aimed at the same patient groups as Humira.
Skyrizi for psoriasis and Rinvoq for arthritis are both blockbuster new drugs that earned their first FDA approvals in 2019. For a long time now, AbbVie has eased investors' concerns about Humira's demise by touting the strength of these two treatments. Last year they generated a combined $7.4 billion in sales; in January, management said it expects this figure to exceed $21 billion in 2027.
PRODUCT Q3 2022 CHANGE (YOY) Q4 2022 CHANGE (YOY) Q1 2023 CHANGE (YOY)
Skyrizi $1.40 billion 75% $1.58 billion 76% $1.36 billion 45%
Rinvoq $695 million 54% $770 million 49% $686 million 48%
Data source: AbbVie. YOY = year over year.
Losses for Humira were expected, but investors were caught off-guard by a pullback in sales of Skyrizi and Rinvoq. While sales of these two are still way up year over year, there was a noticeable decline compared to previous quarters. This is making investors nervous that AbbVie may have miscalculated the effect Humira biosimilars would have on demand for new psoriasis and arthritis treatments.
The good news
U.S. Humira sales fell so quickly in the first quarter that now they're responsible for just 24% of total revenue. There are still a lot of potential losses to overcome, but by the end of 2023, the heaviest quarterly losses will all be in the rearview mirror.
The sudden availability of Humira biosimilars in January limited new prescriptions of Skyrizi and Rinvoq during the first quarter of 2023. Luckily, there's a good chance these drugs will earn approval for new indications that can give them a sales boost in the years ahead.
Skyrizi and Rinvoq aren't AbbVie's only growth drivers. Vraylar, an antipsychotic first approved to treat schizophrenia in 2015, grew first-quarter sales by 31% year over year to $561 million.
Looking ahead, the FDA's recent approval of Qulipta to prevent migraine headaches could make it another big contributor. Qulipta is a tablet, while the treatments it competes against are all injected.
The bottom line
We've known for a long time that 2023 isn't going to be a great year for AbbVie. Selling the stock because Rinvoq and Skyrizi hit a little speed bump doesn't seem wise. In fact, right now could be a good time to add to your position.
AbbVie is taking Humira's losses in stride. Despite sinking sales, management raised its adjusted earnings outlook for 2023 by $0.10 to a range between $10.72 and $11.12 per share.
At recent prices, you can buy the stock for just 13.6 times the midpoint of management's guidance for 2023 earnings. At this low valuation, investors can come out ahead over the long run, even if the business creeps forward at a low-single-digit percentage.
The stock could be more volatile than usual this year as Humira losses batter the company's quarterly income statements. But a juicy dividend yield, which works out to 4% at recent prices, will make holding on to the shares through any potential turmoil relatively easy.
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Cory Renauer 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. | Humira losing market share to Amgen's Amjevita and other biosimilars isn't the only reason AbbVie's stock tanked. Wall Street analysts who follow AbbVie were quick to point out decelerating sales growth for two recently launched drugs that are expected to offset Humira's losses. Shares of AbbVie (NYSE: ABBV) dropped by about 8% on Thursday, April 27. | Humira losing market share to Amgen's Amjevita and other biosimilars isn't the only reason AbbVie's stock tanked. Wall Street analysts who follow AbbVie were quick to point out decelerating sales growth for two recently launched drugs that are expected to offset Humira's losses. Skyrizi $1.40 billion 75% $1.58 billion 76% $1.36 billion 45% Rinvoq $695 million 54% $770 million 49% $686 million 48% Data source: AbbVie. | Humira losing market share to Amgen's Amjevita and other biosimilars isn't the only reason AbbVie's stock tanked. Wall Street analysts who follow AbbVie were quick to point out decelerating sales growth for two recently launched drugs that are expected to offset Humira's losses. Shares of AbbVie (NYSE: ABBV) dropped by about 8% on Thursday, April 27. | Humira losing market share to Amgen's Amjevita and other biosimilars isn't the only reason AbbVie's stock tanked. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Shares of AbbVie (NYSE: ABBV) dropped by about 8% on Thursday, April 27. |
22585.0 | 2023-04-29 00:00:00 UTC | 3 Unstoppable Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-unstoppable-stocks-to-buy-right-now | nan | nan | The laws of physics apply in some ways to investing. For example, some stocks have inertia -- they just can't break out of their rut. Others, though, either have momentum or the likelihood of gaining it in the future. Those are the kinds of stocks that are hard to keep down.
Three Motley Fool contributors have thoughts on which unstoppable stocks are great picks to buy right now. Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX).
Multiple blockbusters to build its business around
David Jagielski (AbbVie): This year will undoubtedly be a tough one for AbbVie. Sales for its top-selling rheumatoid arthritis drug Humira will decline by as much as 37%, according to the company's own estimates. That's especially concerning considering the drug's sales topped $21 billion in 2022.
But the business's long-term trajectory remains solid because AbbVie has a plan. Immunology drugs Skyrizi and Rinvoq, for instance, should make up for the decline in Humira's sales and their combined sales could reach a higher peak.
The company also has many other promising products in its pipeline, including migraine medication Qulipta. In a recent phase 3 trial, the drug was effective in decreasing the number of mean monthly migraine days in adult patients by 4.2 days (versus 1.85 for the placebo). At its peak, Qulipta could be a blockbuster, bringing in more than $1 billion in annual revenue.
Ubrelvy is another migraine medication that could generate a similar amount in sales. Then there's schizophrenia and depression drug Vraylar, which may hit a peak of $4 billion in revenue; it already generated $2 billion last year.
AbbVie is a growth-oriented business that isn't slowing down. The company still has more than 50 programs in its pipeline. And with the business generating at least $22 billion in free cash flow in each of the past two years, it has plenty of resources at its disposal to invest in its pipeline.
While the stock hasn't performed well so far this year, investors should consider loading up on it for the long haul. This appears to be an underrated growth stock to buy right now.
More than meets the eye
Keith Speights (Pfizer): Pfizer's shares have plummeted close to 25% so far this year. Sales for its COVID-19 vaccine, Comirnaty, and antiviral therapy, Paxlovid, are sinking. Some might think that Pfizer is past its prime.
But there's more than meets the eye to this big drugmaker. Pfizer's long-term prospects should be much better than its current situation implies.
For one thing, the story is far from over for Comirnaty and Paxlovid. Pfizer anticipates that sales for both products will rebound after a trough year in 2023. The company even thinks that by 2026 a combination COVID-19/flu vaccine could generate higher sales than Paxlovid did last year.
New product launches through the first half of 2024 that have no connection with COVID should generate revenue growth in the ballpark of $20 billion, based on Pfizer's projections. This should more than offset any sales declines resulting from existing products losing exclusivity.
One new product likely on the way especially stands out: Pfizer's respiratory syncytial virus (RSV) vaccine, PF-06928316. This vaccine could be a big winner in the $10 billion RSV market.
Pfizer also looks for a big revenue boost from its business development deals. The company has already completed several key transactions, including its purchases of Arena and Biohaven. It awaits regulatory approvals to acquire Seagen, which could add more than $10 billion in risk-adjusted revenue in 2030.
This stock currently trades at only around 12 times forward earnings. It offers a dividend yield of nearly 4.3%. Pfizer might not appear to be unstoppable, but I think it could be for long-term investors.
This company boasts incredible potential
Prosper Junior Bakiny (Vertex Pharmaceuticals): Vertex Pharmaceuticals has been nearly unstoppable for the better part of the last decade, a period during which its returns dwarf that of the S&P 500. That's excellent news for the company's shareholders, but there is even better news for investors who have yet to initiate a position: Vertex Pharmaceuticals isn't done delivering these kinds of returns.
The company's greatest strength is its focus on developing medicines for illnesses for which few safe and effective treatment options exist. It achieved tremendous success in the cystic fibrosis (CF) market, where it holds a monopoly on the market for medicines that address the underlying causes of the disease. Its pipeline features promising programs targeting type 1 diabetes (T1D), acute and neuropathic pain, sickle cell disease (SCD), and transfusion-dependent beta-thalassemia (TDT) -- two blood-related disorders -- among other targets.
Vertex isn't just trying to develop run-of-the-mill therapies for these conditions. In TDT and SCD, its exa-cel, codeveloped with CRISPR Therapeutics, could be a one-time curative treatment. The company's potential T1D medicines could restore patients' ability to make their own insulin.
There's no guarantee all of these programs will succeed. As have most biotechs, Vertex Pharmaceuticals has tasted failure in clinical studies before. But at least some of its programs will likely be successful.
Further, Vertex Pharmaceuticals' free cash flow has been on an upward trend for a while; it currently stands at about $4 billion. The company has the funds to acquire the rights to new promising programs, which is what it did with what it expects to be its next launch, exa-cel. This medicine is looking at annual sales potential above $5 billion.
Vertex's lineup of CF therapies and its diversified pipeline should allow it to continue doing what it did over the past decade: Beat the market.
Find out why Vertex Pharmaceuticals is one of the 10 best stocks to buy now
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie, Pfizer, and Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Pfizer, Seagen, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). Multiple blockbusters to build its business around David Jagielski (AbbVie): This year will undoubtedly be a tough one for AbbVie. But the business's long-term trajectory remains solid because AbbVie has a plan. | Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). Multiple blockbusters to build its business around David Jagielski (AbbVie): This year will undoubtedly be a tough one for AbbVie. But the business's long-term trajectory remains solid because AbbVie has a plan. | Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). Multiple blockbusters to build its business around David Jagielski (AbbVie): This year will undoubtedly be a tough one for AbbVie. But the business's long-term trajectory remains solid because AbbVie has a plan. | Keith Speights has positions in AbbVie, Pfizer, and Vertex Pharmaceuticals. Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). Multiple blockbusters to build its business around David Jagielski (AbbVie): This year will undoubtedly be a tough one for AbbVie. |
22586.0 | 2023-04-28 00:00:00 UTC | AbbVie (ABBV) Q1 2023 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q1-2023-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q1 2023 Earnings Call
Apr 27, 2023, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to the AbbVie first quarter 2023earnings conference call All participants will be able to listen-only until the question-and-answer portion of this call. [Operator instructions] I would now like to introduce Ms.
Liz Shea, senior vice president, investor relations.
Liz Shea -- Vice President, Investor Relations
Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Rob Michael, vice chairman and president; Jeff Stewart, executive vice president and chief commercial officer; Scott Reents, executive vice president and chief financial officer; Carrie Strom, senior vice president and president, Allergan Aesthetics; and Tom Hudson, senior vice president, R&D, and chief scientific officer. Joining us for the Q&A portion of the call is Roopal Thakkar, senior vice president, development and regulatory affairs, and chief medical officer. Before we get started, I'll note that some statements we make today may be considered forward-looking statements based on our current expectations.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.
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These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings release and regulatory filings from today which can be found on our website. Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'm extremely pleased with our start to 2023 with first quarter total revenues and adjusted earnings per share both exceeding our expectations. This performance was driven by double-digit sales growth from several key products, including, Skyrizi, Rinvoq, Venclexta, and Vraylar; positive momentum from our aesthetics business; and strong results internationally; and stabilizing consumer trends in the U.S.
And in-line performance from U.S. Humira, our biosimilar allergen, is tracking as expected with much of the impact driven by price. Since our inception, we have successfully created a well-diversified portfolio with multiple growth platforms in highly attractive markets, including immunology, hematological oncology, neuroscience, and aesthetics. Our commercial execution, including the launch of new products and expanded indications, has been outstanding, especially across Skyrizi and Rinvoq, and recently with Vraylar and MDD.
Each of these assets are expected to contribute significant revenue growth over the decade. The breadth and the depth of our R&D pipeline also supports our long-term growth outlook, and we anticipate numerous important pipeline milestones over the next two years. In summary, we are one quarter into the U.S. biosimilar event for Humira and are managing the erosion well.
Most importantly, our growth platform is demonstrating strong performance, exceeding our expectations. We are executing well across all aspects of our business and see numerous opportunities for our diverse portfolio to drive long-term growth. With that, I'll turn the call over to Rob for additional comments on our business performance. Rob?
Rob Michael -- Vice Chairman and President
Thank you, Rick. We're off to an excellent start in 2023 with each of our five key therapeutic areas meeting or exceeding our first quarter expectations, a testament to the strength of our broad portfolio. We delivered adjusted earnings per share of $2.46, which is $0.10 above our guidance midpoint. Total net revenues were $12.2 billion, approximately $400 million ahead of our expectations.
First quarter results include continued robust performance from Skyrizi and Rinvoq, which remain on track to contribute more than $11 billion in combined sales this year. Growth rates in the first quarter for both products are consistent with our full-year expectations. Skyrizi and Rinvoq are demonstrating momentum across all approved indications. And we expect to round out their opportunities in IBD later this year.
This includes Rinvoq's anticipated U.S. approval in Crohn's disease, as well as Skyrizi's European launch in Crohn's and its global regulatory submission in UC. We are also performing exceptionally well in neuroscience. Total net revenues this quarter were nearly $200 million above our guidance with Vraylar sales accelerating following MDD approval and migraine delivering strong growth.
As a result, we will be increasing our full-year outlook for neuroscience. Aesthetics is also performing better than expected. We are seeing positive recovery trends in China, and some stability in the U.S. market where we are closely monitoring several economic indicators that correlate with aesthetics procedures, including consumer confidence, personal consumption, and Google searches.
Although it's still early in the year, these positive trends, especially across our international markets, give us the confidence to increase our full-year outlook for aesthetics as well. This continues to be an under-penetrated market with significant growth potential. Based on our robust performance this quarter and the continued strong outlook for our business, we are raising our full-year adjusted earnings per share guidance by $0.10, and now expect adjusted earnings per share between $10.72 and $11.12. In closing, I'm extremely pleased with the performance of our diverse portfolio.
We're off to a strong start to the year, which further reinforces our confidence in the long-term outlook of the business. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Thank you, Rob. I'm very pleased with the strong commercial execution across our therapeutic portfolio. Immunology delivered total revenues of approximately $5.6 billion with continued robust double-digit growth from Skyrizi and Rinvoq. Skyrizi global sales were nearly $1.4 billion, reflecting operational growth of more than 46% despite retail inventory destocking in the quarter.
Skyrizi is the clear market leader in the U.S. biologic psoriasis market with a total prescription share now at 30%. In psoriasis, Skyrizi has set a very high bar relative to other therapies on the market or in development with differentiated attributes across the categories that physicians and patients deem most important. This includes the rapid onset of action after the first dose, nearly complete skin clearance with multifold higher rates on PASI 90 and PASI 100; high durability of response, which we have demonstrated can increase over time, as well as quarterly dosing for maintenance therapy, a convenient alternative to daily oral or more frequently administered injectables.
With a nearly 50% U.S. in-play share of new and switching patients, there is substantial room for Skyrizi's continued growth in psoriasis. This best-in-class profile is supporting strong momentum now in psoriatic arthritis with Skyrizi achieving an in-play biologic share of roughly 20% in the U.S. dermatology segment.
Skyrizi is also been co-positioned with Rinvoq in the U.S. rheum segment in PsA where we are seeing increasing utilization among rheumatologists as well. Globally, Skyrizi has achieved in-play psoriatic disease leadership in more than 25 countries. And, total market share leadership in nearly 20 of those key markets.
In Crohn's disease, we are seeing very fast adoption of Skyrizi in the U.S. with a total in-play patient share at approximately 20%, second only to Stelara. Feedback from gastroenterologists is very positive, especially as it relates to Skyrizi's novel dosing and overall clinical profile. We see strong uptick in Japan and Canada as well with the European launch forthcoming.
We also recently reported strong induction data for Skyrizi in ulcerative colitis, which Tom will discuss momentarily. Based on the results of that trial, it is increasingly clear that Skyrizi represents a differentiated asset across inflammatory bowel disease. And, we look forward to bringing this potential new indication to physicians and patients next year. Turning now to Rinvoq, which delivered global sales of $686 million, reflecting operational growth of more than 50% despite similar retail inventory destocking in the quarter, I am very pleased with the performance in rheumatology with total prescriptions increasing across each of the four approved indications.
Atopic dermatitis is also tracking in line with our expectations. We continue to see market share momentum globally, including in-play patient share, increasing to approximately 17% in the U.S. We are very excited about the growth potential in gastroenterology. Rinvoq has set a high bar for efficacy in both ulcerative colitis and Crohn's disease, demonstrating strong rates of remission and endoscopic improvement.
We are seeing very strong momentum in UC where adoption has been robust. Rinvoq is now achieving a 23% in-play share in the U.S. second-line plus setting, reflecting an impressive ramp since our launch in UC less than one year ago. This accelerated adoption among gastroenterologists is very encouraging for Rinvoq's pending outlook in Crohn's.
We are currently launching this indication in the E.U., a geography where Rinvoq is the only JAK approved to treat both IBD conditions. And, we remain on track for CD approval and commercialization in the U.S. later in this quarter with broad formulary access anticipated to ramp quickly over the back half of this year. Though we see inflammatory bowel disease continues to be an area of high unmet need, having two novel therapies in IBD with Skyrizi and Rinvoq that each delivered differentiated levels of efficacy is an important step forward for patients.
And with these two complementary assets, we are very well-positioned to compete against other oral or biological agents. Global Humira sales were approximately $3.5 billion, down 24.3% on an operational basis due to biosimilar competition. Erosion in the U.S. remains in line with our expectations with most of the impact driven by price.
Turning now to Hematologic Oncology where total revenues were $1.4 billion with continued pressure on Imbruvica, partially offset by robust double-digit growth with Venclexta. Imbruvica global revenues were $878 million, down 25.2% due to increasing competition and the cumulative impact of a suppressed market. Venclexta global sales were $538 million, up 17.5% on an operational basis with strong momentum across both AML and CLL. In neuroscience, revenues were approximately $1.7 billion, up 15% on an operational basis.
Vraylar is performing exceptionally well. Sales of $561 million were up 31.3% on an operational basis, above our expectations. We are very pleased with the AMDD label and the launch, which is resulted in a significant uplift in total new prescriptions for Vraylar. With a dedicated sales force that calls on both psychiatrists and primary care, as well as ramping DTC promotion, we see an opportunity for accelerated growth across all approved indications, and we will be raising our full-year guidance for Vraylar accordingly.
Within migraine, we remain uniquely positioned with a portfolio to support complete migraine freedom. Our leading oral CGRP therapies contributed $218 million in combined sales this quarter, reflecting growth of more than 45% as we continue to see strong prescription demand for both Ubrelvy and Qulipta. We recently expanded the label for Qulipta, which is now uniquely positioned as the only oral CGRP available as a preventative treatment for patients with both chronic and episodic migraine, further strengthening our competitive profile. Lastly, total Botox Therapeutic sales were $719 million, reflecting strong performance in chronic migraine, as well as other approved indications.
Though overall, I'm extremely pleased with the performance across the therapeutic portfolio. And with that, I'll turn the call over to Carrie for additional comments on aesthetics, Carrie?
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Thank you, Jeff. First quarter global aesthetic sales were approximately $1.3 billion, which came in ahead of our guidance, primarily due to a faster reopening in China as well as a slightly stronger economy in the U.S. versus our planning assumptions. In the U.S.
Aesthetic sales were $777 million, down 8.1%, as we continue to see softness in aesthetic procedures related to inflationary dynamics. As a reminder, we saw very robust performance for our U.S. performance in the first quarter of 2022, which created a difficult comparison for growth in the first quarter of this year. U.S.
Botox cosmetic sales were $409 million down slightly on a year-over-year basis. We continue to see a lesser impact from inflationary dynamics on Botox cosmetic compared to other areas of our aesthetic portfolio due to its relatively lower price point and large installed base of loyal repeat consumers. The U.S. cosmetic toxin market was down low single digits in the first quarter on a year-over-year basis.
Botox cosmetic continues to be the clear market leader and its share of the U.S. toxin market remains stable. Sales for our U.S. Juvederm collection were down 18% as our dermal filler portfolio continues to be impacted by inflationary pressure on consumer spending.
The U.S. filler market was down nearly 20% in the quarter on a year-over-year basis due to the persistent inflationary environment. Our Juvederm collection remains the clear market leader and share was stable in the quarter. The economic pressure on our U.S.
dermal filler business is partially offset in the quarter by strong initial uptake for our recently launched Volux filler, which is approved for the improvement of jawline definition. We expect Volux combined with the upcoming launch of our skin quality injectable Skin Vive to support long-term growth for our filler portfolio in the U.S. While the aesthetics category in the U.S. continues to be challenged due to the soft economy, the key external economic metrics that we track have remained relatively consistent with year-end 2022 levels.
Our international aesthetics portfolio continues to demonstrate robust growth with strong performance in Japan, which is rapidly growing, and China, which is recovering faster than expected. Sales from our international aesthetics portfolio were $523 million up 7.8% on an operational basis. International Botox cosmetic sales grew approximately 17.5% operationally and international Juvederm sales were down approximately 1.4% on an operational basis. China, which is our second largest market was negatively impacted by COVID in January and February but experienced a sharp recovery in March.
We expect this level of activity to be sustained throughout the remainder of the year. Recall our original guidance assumed we would not reach a full recovery until the second half of this year. And in Japan, which is an underdeveloped market, improving to be very responsive to promotion, we continue to make significant investment in injector training, our field force, and consumer education. Overall, we are pleased with how our team has been executing through this dynamic environment and remain encouraged by improving trends internationally and stabilization across our U.S.
portfolio. These positive trends and continued strong momentum give us the confidence to increase the full-year outlook for our aesthetics business. Longer term, we remain extremely confident in our ability to grow the aesthetics business and continue to expect to achieve total sales of more than $9 billion by the end of this decade. Aesthetics continues to be an extremely attractive underpenetrated market, and our proven ability to drive consumer demand and develop a strong base of loyal customers, as well as bring innovative new products to the market, will support robust growth over the long term.
With that, I'll turn the call over to Tom.
Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer
Thank you, Carrie. We've continued to make very good progress with our pipeline to start this year. In immunology, we recently received European approval for Rinvoq in Crohn's disease, making it the first JAK inhibitor approved for this indication. We continue to anticipate FDA approval for Rinvoq and Crohn's disease next month.
We also recently announced positive top-line results from our phase 3 induction study for Skyrizi in ulcerative colitis, which is a disease with unpredictable symptoms and frequent players making it challenging to manage. In our study, Skyrizi met the primary and all secondary endpoints, demonstrating a very strong impact on the disease as measured by clinical remission, clinical response, and endoscopic improvement. We're particularly pleased with Skyrizi's impressive performance on the more stringent measures in this trial with approximately 37% of Skyrizi-treated patients achieving endoscopic improvement, compared to 12% of patients on placebo. This level of efficacy has the potential to position Skyrizi as a highly effective therapy.
And we believe it will be a welcome new treatment option for physicians and patients once approved. Detailed data from this induction study will be presented at a forthcoming medical meeting. We expect to see data from the phase 3 maintenance study in the second quarter with our regulatory submissions planned for the second half of the year. In oncology, we continue to make good progress across all stages of our hematology and solid tumor pipelines.
We remain on track for several important regulatory and clinical milestones this year, including regulatory approval for Epcoritamab in relapsed refractory large B cell lymphoma. Phase 3 data from VENCLEXTA CANOVA trial in relapsed refractory multiple myeloma patients with a T11,14 mutation and Navitoclax's TRANSFORM-1 trial in frontline myelofibrosis. and phase 2 data for Teliso-V in second line plus advanced non-squamous non-small cell lung cancer, which has the potential to support a regulatory submission for accelerated approval. We're also beginning to see very encouraging data for our next-generation CMAT ADC, which uses a more potent topo payload than our Teliso-V ADC.
Based on the data, we've seen to date for ABBV-400 in our phase 1 solid tumor Basket study, we plan to expand the program to earlier lines in colorectal cancer, as well as evaluate in other tumors where CMAT is expressed, including pancreatic and liver cancer. Moving to our neuroscience pipeline, where we've recently received FDA approval for Qulipta as a preventive treatment for patients with chronic migraine making it the only oral CGRP antagonist approved for prevention of both episodic and chronic migraine. In our phase 3 study, Qulipta provided a significant reduction in migraine days, as well as significant improvements in function and quality of life in patients with chronic migraine, a common and debilitating disease. As a highly effective oral treatment option, we believe Qulipta will be well-positioned in the chronic migraine prevention market.
In Europe, we continue to anticipate an approval decision in the third quarter for Atogepant as a preventive treatment for patients with both chronic and episodic migraine. Turning now to ABBV-951, we announced that we received a complete response letter for our regulatory application in the U.S. The FDA has not asked for additional efficacy or safety studies related to our drug device delivery system, but rather they have requested additional information regarding the pump, as well as updates to instruction for use. We are working to generate the necessary information, and we expect to respond to the CRL later this year, with a nifty action anticipated in the first half of '24.
In international markets, we have recently received approval for 951 in Japan, and we continue to expect approval in Europe in the fourth quarter of this year. In our early stage neuroscience pipeline, we recently began phase 1 studies of our selective D3 dopamine receptor agonist ABBV-932. Our experience with Vraylar, as highlighted, is our potential clinical benefit of achieving D3 selectivity, and we believe that a compound that more selectively engages with D3 dopamine receptor has the potential to provide enhanced efficacy. Our program will initially focus on general anxiety disorder, with the potential to expand to other new psychiatric disorders.
The programs under our collaboration with Calico are also progressing well. We now have four assets in clinical trials, including two PTPN2 inhibitors in phase 1 in oncology, our eIF2B activator for neurodegenerative diseases, and an IGF1 signaling pathway modulator that will be explored in aging-related diseases. Our most advanced program is the eIF2B activator 7262. The first patient was recently enrolled in the HEALEY ALS platform trial, a phase 2/3 study conducted by the Healey Center for ALS at Mass General.
This trial is designed to evaluate multiple therapies simultaneously with the goal to accelerate the development of potential breakthrough treatments for ALS. Now, I would like to provide a brief update on two earlier-stage programs in our therapeutic pipeline. In cystic fibrosis, we recently analyzed data from an ongoing proof-of-concept study evaluating our triple combination therapy. The results from this interim analysis did not meet our criteria for advancing, and we are discontinuing our cystic fibrosis program.
We also recently reviewed interim data from our exploratory studies for ABBV-154 in PMR in Crohn's disease. Similar to results from the RA study, while we observe efficacy with 154, we also observed some changes in biomarkers that are consistent with systemic steroid exposure at the higher doses. The benefit-risk profile does not sufficiently differentiate 154 from other available treatments. Based on the totality of the data across RA, PMR, and Crohn's disease studies, we will not be pursuing for the development of this asset.
Now, moving to our aesthetic pipeline, we recently saw data from our phase 3 studies for Botox in platysma prominence and masseter muscle prominence. In our study for prominent neck muscles, Botox met all primary and secondary endpoints, demonstrating a significant reduction in the unwanted appearance of platysma prominence on the neck and jaw lines. This was the first of three phase 3 studies in platysma prominence with data from the two remaining trials expected in the second half of the year, followed by regulatory submission in the U.S. near the end of 2023.
Botox also performed very well in our study for prominent masseter muscle, meeting the primary and all secondary endpoints in the trial. Our program is initially focused on China and other Asian markets, as masseter prominence is common in Asian populations, and there is significant unmet need for minimally invasive treatment options. Based on the results from this trial, we expect to submit our regulatory application in China in the second half of the year. Once approved, we anticipate high demand for Botox in this novel indication, which will help to further build our portfolio in lower phase segment.
So in summary, we continue to demonstrate significant progress across all stages of our pipeline and anticipate numerous important regulatory and clinical milestones throughout the remainder of 2023. With that, I will turn the call over to Scott.
Scott Reents -- Senior Vice President, Chief Financial Officer
Thank you, Tom. I will discuss our most recent financial results and guidance. Starting with our first quarter results, we delivered strong top and bottom-line performance. We reported adjusted earnings per share of $2.46, which is $0.10 above our guidance midpoint.
These results included $0.08 unfavorable impact from acquired IPR&D expense. Total net revenues were $12.2 billion, $400 million ahead of our guidance and down 8.3% on an operational basis, excluding a 1.4% unfavorable impact from foreign exchange. The adjusted operating margin ratio was 45% of sales. This includes adjusted gross margin of 84.2% of sales, adjusted R&D investments of 13.6% of sales, acquired IPR&D expense of 1.2% of sales, and adjusted SG&A expense of 24.4% of sales.
Net interest expense was $454 million. The adjusted tax rate was 13.7%. Turning to our financial outlook, we are raising our full-year adjusted earnings per share guidance to between $10.72 and $11.12. This earning per share guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond the first quarter.
We now expect net revenues of approximately $52.4 billion, an increase of $400 million. At current rates, we expect foreign exchange to have a modest unfavorable impact on full-year sales growth. This guidance includes the following updated assumptions. We now expect Vraylar sales of approximately $2.7 billion, an increase of $200 million, reflecting the strong prescription growth following the MDD approval.
And for aesthetics, we now expect global revenue of approximately $5.3 billion, reflecting the better-than-expected recovery in China and stable economic trends in the U.S. Turning to the second quarter, we anticipate net revenues of approximately $13.5 billion, which includes U.S. Humira erosion of 27%. At current rates, we expect foreign exchange to have a 0.6% unfavorable impact on sales growth.
We are forecasting an adjusted operating margin ratio of 48.5% of sales. We are modeling a non-GAAP tax rate of 15.4%. We expect adjusted earnings per share between $2.90 and $3.00. This guidance does not include acquired IPR&D expense that may be incurred in the quarter.
In closing, we are off to an excellent start to the year, with strong performance across the portfolio and financial results ahead of our expectations. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President, Investor Relations
Thanks, Scott. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question, please.
Questions & Answers:
Operator
Thank you. Our first question comes from Terence Flynn with Morgan Stanley. Your line is open.
Terence Flynn -- Morgan Stanley -- Analyst
Great. Thanks so much for taking the question. Maybe two for me. Just on immunology, can you quantify the amount of destocking for both Skyrizi and Rinvoq in the quarter? I think Biogen, on their call, spoke to some tighter working capital requirements at wholesalers due to rising interest rates.
So just wondering if you're seeing something similar here, and just to want to be sure that's not a pricing dynamic. And then can you elaborate at all about your ALS program, when we might see some data there? Thank you.
Rob Michael -- Vice Chairman and President
Hi, Terence. This is Rob. So on the retain inventory destocking, we do typically see this in the first quarter, so it wasn't a complete surprise. In fact, it was factored into our guidance.
We did beat our guidance in immunology for the quarter. The impact was high single digits, both for Skyrizi and Rinvoq. In terms of absolute value, you're talking about around $70 million for Skyrizi and $30 million for Rinvoq.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
And it's Jeff. Just to clarify on your wholesale comment, I think, as Rob highlighted, it's in the retail, so it's in the specialty pharmacy channel. And you'll recall, as you know, there's about 18 specialty pharmacies that basically distributed the I&I products, and there's some big ones there. So it was not a wholesaler dynamic, it was a retail inventory dynamic which, again, as these products get bigger, we do see and contemplate in our projections.
Rob Michael -- Vice Chairman and President
And then Terence, this is Rob. Just to more broadly answer the question that I'm sure many investors have, if you look at the growth in the quarter, so overall U.S. demand was up just north of 60% for Rinvoq and Skyrizi. We saw very strong performance across all approved indications, as Jeff highlighted.
We did have the two partial offsets, one being the retail inventory destock, which I've already quantified. And then price was down high single digits, and that's really driven by rebate increases, which is typical when you see the type of volume increase. And we saw Skyrizi sales up 80% last year, Rinvoq in the U.S. up 40% last year.
So when you see that kind of volume growth and couple that with the number of indications we had approved, we had five new indications for Rinvoq and two for Skyrizi. So it was something we were contemplating. It was factored into our guidance, but I don't know that the street fully appreciated that in terms of the first quarter estimates that were put out there.
Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer
And this is Tom for the ALS question, I'd say about two years, we had to recruit the patients, and there's about a year of follow-up that is needed. So I would say late- 24, early '25, all depends on the enrollment, which I understand is starting off on a good pace.
Liz Shea -- Vice President, Investor Relations
Thanks, Terence. Operator, next question, please.
Operator
Thank you. Our next question comes from Steve Scala with Cowen. Your line is open.
Steve Scala -- Cowen and Company -- Analyst
Thank you. A couple questions, some of your peers have called out copay resets early in the year that have led to more modest performances in products, such as Dupixent and Cosentyx. AbbVie has been less vocal on this point. How much was that a factor or are Skyrizi and Rinvoq different in some way? And then secondly, despite the solid performance in Q1, the EPS guidance range continues to be very wide.
What factors would have to play out for you to hit the high end of that and the low end of that? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yes, hi, Steve, it's Jeff. And thanks for the question. I'll take the copay one. Look, I mean, some of the peers are seeing the effects of the so-called maximizer programs or even some of the lingering accumulator programs which do sometimes, as benefit designs are reset in the first quarter, can apply some pressure.
We don't see that. We've been managing that very tightly. And we're not seeing any significant surge or creep in terms of that dynamic. The dynamic is exactly what Rob had highlighted, which is the modest price based on the number of indications and how fast the volume is moving, and this destocking event that we talked through.
So copay is very stable for AbbVie.
Rob Michael -- Vice Chairman and President
And Steve, this is Rob, on your EPS range question. We've typically given a $0.20 range, this year we gave a $0.40 range. And the key driver of that is, obviously, the U.S. Humira dynamics.
As we see that play out, particularly in the second half, we would typically tighten that range. Now, keep in mind, that $0.20 wider range represents about 1% of U.S. Humira growth, so it's not as wide as you might think, but we did widen it given the dynamics with U.S. Humira.
And I think we'll be able to give you more color as we see those seven, nine biosimilars coming in the market in the middle of the year, we'll have more clarity for you on the second quarter call.
Steve Scala -- Cowen and Company -- Analyst
Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Steve. Operator, next question, please.
Operator
Our next question comes from Chris Schott with J.P. Morgan. Your line is open.
Chris Schott -- JPMorgan Chase and Company -- Analyst
Great. Thanks so much. Just coming back to Skyrizi and Rinvoq, I think you mentioned high single-digit price erosion beyond just those inventory changes. Is that a reasonable assumption to think about price as we progress through the rest of this year? And then maybe longer-term, should we think about that level of price erosion as more like a one-time issue this year given all the new indications, and then a more stable trend going forward? I'm just trying to get my hands around the pricing a little bit more.
And my second question was on the aesthetics business, you obviously saw a very strong 1Q. Could you just elaborate a little bit more on your confidence in the sustainability of these trends? I know the market has been a little bit bumpy, but it seems like the tone is that you're encouraged by the trends you're seeing, but just how much visibility you have in terms of sustainability of those favorable international trends we're seeing right now? Thank you.
Rob Michael -- Vice Chairman and President
Chris, this is Rob. So on your question on price, yes, the way to think about 2023 price for the year for Skyrizi and Rinvoq would be down high single digits. Now, we wouldn't expect high single digits to be the rate going forward given a big driver was the number of new indications that we launched. So I would expect that to moderate over time.
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Hi. This is Carrie. In terms of your questions around the aesthetics market, there are two key assumptions for the 2023 planning. One was around the U.S.
economy, and the other was around the recovery in China. When you think about the U.S. economy, we look at Q1 and we see some favorability to our planning assumptions with the metrics that we track, which Rob mentioned include real personal consumption expenditure and Google. So in January and February, we saw favorability there, although in March there are some potential signs of softening.
So we continue to have a cautious outlook for our U.S. business for the rest of the year. The way to think about market growth for the full year would be, for toxins, the market would be down low-to-mid single digits until we lap the 2022 downturn, which happened around May. And then after that, we would expect flat market growth for the rest of the year.
So that's how we think about the U.S. Our other or second biggest market is China. And recall we had assumed that the aesthetics market in China would not fully recovery until the second half of the year. Well, in actuality, what we saw was although January was significantly impacted, in February, we started to see improvement, and in March, there was a really steep recovery that we do expect will sustain through the rest of the year.
And in other markets around the world, I guess in Canada and U.K., we are seeing some high inflation impacting consumer demand, but the rest of Europe seems stable right now.
Liz Shea -- Vice President, Investor Relations
Thank you, Chris. Operator, next question, please.
Operator
Our next question comes from Mohit Bansal with Wells Fargo. Your line is open.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Great. Thanks for taking my question. I have one clarification and one question. So clarification is, regarding the price decline for I&I, you said that high single-digit, but should we assume, going forward, year over year -- versus volumes, should we assume high single-digit declines still going forward for, at least, for rest of the quarter, and then more stable pricing quarter-over-quarter term, just that clarification.
And the question is, regarding your I&I pipeline, so you have a leadership position with Skyrizi and Rinvoq, and they are growing. But some of the pipeline products, like 154 and 157 did not pan out as you were hoping them to. So how should we think about the pipeline strategy beyond these two products? And can you even do M&A given this increased FTC scrutiny nowadays? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
So this is Rick. I'll cover number two, and maybe just touch on number one. If you think about our pipeline, obviously as we look at Skyrizi and Rinvoq, they clearly have restated the immunology market across most of the segments that we operate in. We view those assets as being able to drive strong growth through the early part of the next decade.
Having said that, we're continuing to look for assets in areas where we believe there is still a significant opportunity to restate standard of care. And we obviously explore, as everyone in this industry does, many different assets and different mechanisms to try to find those kinds of mechanisms that will deliver that kind of performance. It's interesting, when you look at the 154 platform it did exactly what we thought it would do from the standpoint of efficacy. But it did it in a way only at the highest dose, and at that highest dose we did see it -- some effects of steroids on some of the biomarkers.
And based on the way we think regulators would look at a label for those kinds of products, we didn't believe that would be a competitive profile. But the hypothesis certainly worked around the mechanism. So we continue to look for opportunities. We have lots of runway here to be able to get to those, but we do desire to find some additional mechanisms that will be follow-on products that should be introduced, hopefully, near the end of this decade or early into the next decade as the next-generation immunology assets for AbbVie.
And I feel good about the progress that we're making there. We're continuing to explore a number of other areas. And we're continuing to look, both internally and externally, at different assets that we can bring into the company to be able to do that. To your question of being able to bring assets into this market, we don't believe that we would be encumbered because immunology is a very crowded space from a competitive standpoint.
And that's one of the most important criteria that you look at from an FTC standpoint. So we believe we have freedom to operate across most of those segments from an FTC standpoint as well. And on price, maybe Rob and I will tag-team this one to make sure it's clear. It is common that when you go out and you add indications in this industry, that when you negotiate those contracts to be able to get access, it does require some level of price concession.
I would say we're on the lower end of what you typically would have seen with the speed at which we got access for Skyrizi and Rinvoq for those indications and the breadth of that access. And so you certainly would expect this year and last year to be the areas where you saw the most significant amount of price, because those are the years that we added the majority of the indications, you would expect that to moderate. So then going forward, the way to think about it is, then it's only really driven by volume at that point. And volume typically requires much more modest kinds of price as you go forward.
It's not zero price. You shouldn't have that expectation. But I would not have an expectation of high single-digits going forward. Anything you add, Rob.
Rob Michael -- Vice Chairman and President
Just to answer the question, Mohit on the gating. Yes, I think it's safe to assume that you'll see high single-digit price in each of the quarters this year.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Helpful. Thank you.
Liz Shea -- Vice President, Investor Relations
Thank you, Mohit. Operator, next question, please.
Operator
Our next question comes from Tim Anderson with Wolfe Research. Your line is open.
Alice Nettleton -- Wolfe Research -- Analyst
Hi, thank you for taking our questions. This is Alice Nettleton on for Tim Anderson. So a question on PBMs, which are under renewed scrutiny. If there were material changes to the rebating structure currently in place, would that put big incumbent products at risk because it might remove the so-called rebate wall? And more generally, do you think there is any chance of some of the proposed legislative changes actually becoming law? And then secondly, any collateral impact you're seeing on Skyrizi or Rinvoq since Humira biosimilars have launched? Given the overlapping indications, do you think that you'll start to see some picking off of patients from those two brands to biosimilars in the second half of the year? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yes, hi. It's Jeff. I'll give some comment on that. I think the way that we think about our brands is the first place that we look at is how distinctive they are.
I mean, we've got four head-to-head trials with Skyrizi and another one on the way where we can clearly differentiate the product and we have many as well on Rinvoq. So we've really thought about it from a development standpoint, and I would say the perspective if somehow there was a restructuring of the PDMs, which I don't think, is imminent. And the rebate sort of approach disappeared. It disappears for everybody.
I mean, all of these INI products have a fairly reasonable rebate load and there'd be a different basis of competition which we would do very, very well. So we're not concerned about sort of a fundamental structural change relative to these two products which are very distinctive. If we look at your second part of your question, which is it's really the same answer, which is we don't see that there are going to be significant impacts of Humira biosimilars on the performance of Skyrizi and Rinvoq. And one perspective let's take Rinvoq is sort of a very simple way of thinking about it.
It's already in the United States step behind TNF, and it's performing at that level because you see such expansion of second and third lines in that space and Skyrizi is very, very distinctive. So no, in the second half, we do not anticipate sort of a knock-on effect of the emergent biosimilars to our two core brands.
Liz Shea -- Vice President, Investor Relations
Thanks, Alice. Operator, next question, please.
Operator
Thank you. Our next question comes from Carter Gould with Barclays. Your line is open.
Carter Gould -- Barclays -- Analyst
Great. Good morning. Thanks for taking the question. Maybe a different spin on sort of the BE question there just given sort of the volatility in the marketplace as you kind of have those conversations or engage with potential targets.
Just if you've seen a shift in sort of that bid-ask spread and the willingness of boards and management to consider deals, any updates on that front would be helpful.
Rick Gonzalez -- Chairman and Chief Executive Officer
This is Rick. I'd say the environment hasn't changed materially in the last 24 months from my perspective. I still think it's certainly more difficult to raise money for biotech companies. So it probably makes them a bit more willing to engage with players like us or engage in a process if they're at a point where they've generated data that makes them attractive.
But I'd say the interest level in that engagement is similar to what it has been for the last 12 to 24 months. And there's a lot of opportunity to be able to find assets that are in the biotech area. The question is you have to find the right kind of asset and you have to find one that's attractive and it meets your needs. But I'd say being able to negotiate a transaction I think is a reasonable probability.
I'd say, prices are still relatively high and so valuations for good assets tend to go at a pretty high level. So again, it's got to be an asset that can demonstrate that it's going to provide significant value to justify that kind of a valuation and a return. But we continue to look for opportunities. And I think as we find those kinds of opportunities, as I said in the past, we're certainly going to pursue them.
Liz Shea -- Vice President, Investor Relations
Thanks, Carter. Operator next question, please.
Operator
Our next question comes from Vamil Divan with Guggenheim Securities. Your line is open.
Vamil Divan -- Guggenheim Partners -- Analyst
Great, thanks for taking the questions. Maybe a couple from me as well, so one, just a couple of data points you have coming up this year that I think may be a little bit less focused on is Navitoclax and Teliso-V. So maybe you can just sort of frame so what we should be looking for, what your expectations are, what you're hoping to see from those assets, especially Teliso-V given your comments on the next-gen ABBV-400. And then the other question, I guess, would be for Rick more on succession planning.
And we mentioned before that your plans to stick around through the Humira bench. I'm just wondering if you have any sort of updated thoughts around timing on that now that we're in the middle of this process. We've been getting some questions there, too. Is this something we should expect some sort of announcement this year, or is it more you're looking for 2024 or later? Thank you.
Roopal Thakkar -- Vice President, Global Regulatory Affairs
Hi. It's Roopal. I'll take the ones on Navitoclax and Teliso-V. So for Navitoclax, it's the combination with the JAK-2 and myelofibrosis.
And there we're looking to be better than monotherapy with a JAK-2 in that space and improving spleen size and symptoms like abdominal pain, fullness, fever, fatigue. And also, perhaps uniquely, what we've observed is also an improvement in bone marrow fibrosis and a decrease in variant allelic frequency. So that's what we would be looking for. And we should get readout by mid-year or so.
For Teliso-V in lung cancer, EGFR wild type with high CMAT, and that's the indication where we have Breakthrough Therapy designation. Around the end of this year, I would say that's where we would see a readout. What we've seen in earlier data cuts is an ORR above 50%, which is quite a bit higher than what would be expected in standard of care in that second, third-line setting. And if the data looks strong, there's a potential that we could submit next year for an accelerated approval.
Rick Gonzalez -- Chairman and Chief Executive Officer
I'll take the second question, and maybe I'll make a little bit of a comment on Teliso-V because I think you mentioned 400. I think the early data that we're seeing in 400 is impressive to us, there's no question about it. And I think we're going to have some data presented at this ASCO right where you'll have an opportunity to see that in CRC. Now, having said that, Teliso-V, as Roopal said, does get very good responses in CMAT highs.
But to get a broader set of CMAT population, we do believe you need to move to the topo warhead. It seems to give deeper responses and more durable responses. That data has to play out over time, but it appears to be a very good platform for CMAT. And so we need the data to mature and we need to develop more data in that area.
But I'd say the early data is pretty encouraging and you'll have a chance to see a snippet of that at this ASCO. As far as leadership changes, I'd say it's similar to what we said in either first quarter or fourth quarter, I can't recall last year around succession. We obviously have a process in place, we have very experienced board. I've had many, many discussions with the board about succession.
The board knows I'm committed to be here to ensure a successful and smooth transition. The criteria that we're operating against are we need to completely get through the transition for Humira biosimilars here in the U.S. I'd say so far, I'm pretty pleased with how the transition is going and I'm even more pleased with the way the growth platform is operating right now. And in fact, if you look at it this year, the growth platform is going to deliver mid-single-digits and is going to do it despite the headwinds that we see on Imbruvica, and the headwinds that we're seeing from the economy on aesthetics.
Once the aesthetics business returns to its normal growth rates and much of the pressure on Imbruvica starts to subside, we should see that growth rate increase significantly as we move into '24 for the growth platform. And obviously, returning to robust growth in '25 and deliver high single digit from that point forward. So that's the expectation that we are working against. So we want to make sure that the business is operating the way we want it to.
We want to make sure that we prove the biosimilar erosion to a point that we believe it is predictable. And then, obviously, the second part of the criteria is ensuring that the candidate that will succeed me is ready to do that to make a successful transition. I have also told the board that I am willing to stay in any capacity that they would desire for whatever length they would. I think the expectation right now is that I would assume the Executive Chairman role for a period of time to finish the transition to the new CEO.
You should not be expecting that that transition is going to occur in '23.
Liz Shea -- Vice President, Investor Relations
Thanks, Vamil. Operator, next question, please.
Operator
Our next question comes from Evan Seigerman with BMO Capital Markets. Your line is open.
Evan Seigerman -- BMO Capital Markets -- Analyst
Hi, guys. Thank you so much for taking my question. Just on kind of Skyrizi some of the dynamics you are seeing there, can you characterize about kind of how you are thinking about further penetration in the psoriasis indication? Kind of some puts and takes in the dermatology market? And just a follow-up on the CF programs, is it safe to assume that you are totally done investing in this area? Or, do you have other assets kind of in earlier development that could emerge? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yes. Hi, it's Jeff. I'll take your comment on psoriasis. I think that as I mentioned, the share is very, very impressive.
So we have 30% total market share now, which is really putting significant headroom against any other drug in that category by a lot. And, one way to think about it is -- I think what you are asking is how much further can it run, and it can run quite a bit further to some degree if you think about it. So we are capturing on the dynamic share roughly 50%, so one of out of every two patients. And our market share is about 30.
So theoretically, over time, right, unless there is some disruption which we don't see significant disruption in the market, your total market share is going to move toward that in-play share. Now, that takes many, many years. But, as we look at the fundamental momentum that we can achieve, it's still very, very significant. Add on to that that basically, we are still in the rest of the world starting to really see the PsA ramp -- and remember PsA has a very significant impact because it's treated by derms in what is sort of last remaining gap that we had, so you are going to see continued momentum in the international markets and the U.S.
market. And, we have a long way to run. And I would be remiss if I didn't say how fast again that we're growing in both Crohn's right now and very exciting data in UC. And, that market is very, very dynamic.
So we feel very secured in our ability to continue to create a lot of value with Skyrizi.
Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer
All right, this is Tom. Regarding your question on our triplet program, we are C2 corrector that we just tested, did not work. This was not our first attempt that producing one. And we do not have another backup.
So we don't have other options than to discontinue the CF program.
Evan Seigerman -- BMO Capital Markets -- Analyst
Great. Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Evan. Operator, next question, please.
Operator
Thank you. Our next question comes from Trung Huynh with Credit Suisse. Your line is open.
Carson Wong -- Credit Suisse -- Analyst
Hi. This is Carson on for Trung. Thanks for the question. Just on Imbruvica, how confident are you for the 5.7% heme-onc guide given the significant competitive pressure there? I mean, I understand Imbruvica did particularly have like U.S.
until late January. What level of pricing pressure can we expect through the year, and if there is a potential for further step down in your guide for later in the year? And if you do that, could Imbruvica be pushed out given the delay with 951 as well? Thanks.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yes. Hi, it's Jeff. And I think we think that's a very good call. And just as a reminder, we are not seeing significant pricing pressure in the market.
This is really two effects, which is one the cumulative effect as we've highlighted over the suppressed market over time, which looks to be normalizing. Actually, for the first time in three years, we actually saw a positive growth in the market. So that's encouraging. The big driver is the share -- is the new patient share which has been under pressure.
Initially under pressure by Calquence, certainly from our own Venclexta, and then the recent Brukinsa launch. And so when we put all of that into the calculus, we think we got it right, and it's probably unlikely that we're going to see any significant step-down that would put that in jeopardy.
Rob Michael -- Vice Chairman and President
Carson, this is Rob. I'll answer your second question. So I wouldn't consider Imbruvica-951 to be variables that would push the trough out. It's really more about how the overall year plays out, particularly the second half with U.S.
Humira. So if U.S. Humira does better and we outperform in '23, then we could see the trough in '24. A point to keep in mind is, regardless of when the trough occurs, we wouldn't expect earnings to fall below the 1074 XIPRD.
That's really what I would focus on. We don't consider Imbruvica-951 delay to be variables that would push that trough.
Liz Shea -- Vice President, Investor Relations
Thanks, Carson. We are cognizant of a number of peers reporting today. And so in the interest of time, we have time for one last question.
Operator
Our last question comes from Geoff Meacham with Bank of America. Your line is open.
Unknown speaker
Hi. This is Susan on for Geoff Meacham. We had a follow-up on Imbruvica. Do you guys expect any changes to outlook following MCL/MDL withdrawal? And then, do you expect any read-through to follicular lymphoma from that withdrawal?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yes. Hi. It's Jeff. Thank you for the question.
First, these are very small indications. So to give you some sense of the relative size for Imbruvica, MCL is about 4% of the value, MDL is really less than a percent about our percent. So we don't anticipate that those withdrawals due to the fact that we didn't get the confirmatory studies to clear, we will have a material impact. I think it's also important to note that many physicians will continue these patients on the medication.
They won't be all switched, for example, or taken off and put on another product. That's the market intelligence. There is no requirement that they need to do that for the physicians. And so net-net, this is not a really material issue, given the size of those indications.
And I think Roopal will address your point on follicular.
Roopal Thakkar -- Vice President, Global Regulatory Affairs
Yes, I can take about FL here for a minute. So a phase 3 readout is expected later this year. It's not clear if the MCL outcomes would be reflected in what we see there. But what I would say about FL is, you know, our focus would be with Epcoritamab, or dual engager, which we expect DL BCL actions here soon, and then we have programs, and we are seeing very high levels of response in FL with Epco either as monotherapy or in combinations, which we will see some data in those combos in DL BCL and FL at ASCO as well.
Liz Shea -- Vice President, Investor Relations
Thanks, Susan. And that concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Liz Shea -- Vice President, Investor Relations
Rick Gonzalez -- Chairman and Chief Executive Officer
Rob Michael -- Vice Chairman and President
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer
Scott Reents -- Senior Vice President, Chief Financial Officer
Terence Flynn -- Morgan Stanley -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Chris Schott -- JPMorgan Chase and Company -- Analyst
Mohit Bansal -- Wells Fargo Securities -- Analyst
Alice Nettleton -- Wolfe Research -- Analyst
Carter Gould -- Barclays -- Analyst
Vamil Divan -- Guggenheim Partners -- Analyst
Roopal Thakkar -- Vice President, Global Regulatory Affairs
Evan Seigerman -- BMO Capital Markets -- Analyst
Carson Wong -- Credit Suisse -- Analyst
Unknown speaker
More ABBV analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) Q1 2023 Earnings Call Apr 27, 2023, 9:00 a.m. Welcome to the AbbVie first quarter 2023earnings conference call All participants will be able to listen-only until the question-and-answer portion of this call. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Rob Michael -- Vice Chairman and President Jeff Stewart -- Executive Vice President, Chief Commercial Officer Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer Scott Reents -- Senior Vice President, Chief Financial Officer Terence Flynn -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Chris Schott -- JPMorgan Chase and Company -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Alice Nettleton -- Wolfe Research -- Analyst Carter Gould -- Barclays -- Analyst Vamil Divan -- Guggenheim Partners -- Analyst Roopal Thakkar -- Vice President, Global Regulatory Affairs Evan Seigerman -- BMO Capital Markets -- Analyst Carson Wong -- Credit Suisse -- Analyst Unknown speaker More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2023 Earnings Call Apr 27, 2023, 9:00 a.m. Welcome to the AbbVie first quarter 2023earnings conference call All participants will be able to listen-only until the question-and-answer portion of this call. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Rob Michael -- Vice Chairman and President Jeff Stewart -- Executive Vice President, Chief Commercial Officer Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer Scott Reents -- Senior Vice President, Chief Financial Officer Terence Flynn -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Chris Schott -- JPMorgan Chase and Company -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Alice Nettleton -- Wolfe Research -- Analyst Carter Gould -- Barclays -- Analyst Vamil Divan -- Guggenheim Partners -- Analyst Roopal Thakkar -- Vice President, Global Regulatory Affairs Evan Seigerman -- BMO Capital Markets -- Analyst Carson Wong -- Credit Suisse -- Analyst Unknown speaker More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2023 Earnings Call Apr 27, 2023, 9:00 a.m. Welcome to the AbbVie first quarter 2023earnings conference call All participants will be able to listen-only until the question-and-answer portion of this call. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Rob Michael -- Vice Chairman and President Jeff Stewart -- Executive Vice President, Chief Commercial Officer Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Tom Hudson -- Senior Vice President, Research and Development, Chief Scientific Officer Scott Reents -- Senior Vice President, Chief Financial Officer Terence Flynn -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Chris Schott -- JPMorgan Chase and Company -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Alice Nettleton -- Wolfe Research -- Analyst Carter Gould -- Barclays -- Analyst Vamil Divan -- Guggenheim Partners -- Analyst Roopal Thakkar -- Vice President, Global Regulatory Affairs Evan Seigerman -- BMO Capital Markets -- Analyst Carson Wong -- Credit Suisse -- Analyst Unknown speaker More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2023 Earnings Call Apr 27, 2023, 9:00 a.m. Welcome to the AbbVie first quarter 2023earnings conference call All participants will be able to listen-only until the question-and-answer portion of this call. |
22587.0 | 2023-04-28 00:00:00 UTC | Wells Fargo Maintains Abbvie (ABBV) Overweight Recommendation | ABBV | https://www.nasdaq.com/articles/wells-fargo-maintains-abbvie-abbv-overweight-recommendation | nan | nan | Fintel reports that on April 28, 2023, Wells Fargo maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation.
Analyst Price Forecast Suggests 13.11% Upside
As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The forecasts range from a low of 136.35 to a high of $210.00. The average price target represents an increase of 13.11% from its latest reported closing price of 148.87.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. The projected annual non-GAAP EPS is 11.88.
Abbvie Declares $1.48 Dividend
On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of April 14, 2023 will receive the payment on May 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $148.87 / share, the stock's dividend yield is 3.98%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=237).
The current dividend yield is 0.97 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.38. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4532 funds or institutions reporting positions in Abbvie. This is an increase of 131 owner(s) or 2.98% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.76%, a decrease of 15.17%. Total shares owned by institutions increased in the last three months by 0.86% to 1,439,170K shares.
The put/call ratio of ABBV is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 60,910K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 58,479K shares, representing an increase of 3.99%. The firm increased its portfolio allocation in ABBV by 15.14% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 53,756K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 52,745K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in ABBV by 13.33% over the last quarter.
Capital International Investors holds 47,099K shares representing 2.67% ownership of the company. In it's prior filing, the firm reported owning 45,827K shares, representing an increase of 2.70%. The firm increased its portfolio allocation in ABBV by 13.88% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,882K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 40,081K shares, representing an increase of 1.96%. The firm increased its portfolio allocation in ABBV by 13.15% over the last quarter.
Capital Research Global Investors holds 36,712K shares representing 2.08% ownership of the company. In it's prior filing, the firm reported owning 36,193K shares, representing an increase of 1.41%. The firm increased its portfolio allocation in ABBV by 12.36% over the last quarter.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
See all Abbvie regulatory filings.
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. | Fintel reports that on April 28, 2023, Wells Fargo maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. | Fintel reports that on April 28, 2023, Wells Fargo maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. | Abbvie Declares $1.48 Dividend On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Fintel reports that on April 28, 2023, Wells Fargo maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. | Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. Fintel reports that on April 28, 2023, Wells Fargo maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. |
22588.0 | 2023-04-28 00:00:00 UTC | Morgan Stanley Maintains Abbvie (ABBV) Overweight Recommendation | ABBV | https://www.nasdaq.com/articles/morgan-stanley-maintains-abbvie-abbv-overweight-recommendation-0 | nan | nan | Fintel reports that on April 28, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation.
Analyst Price Forecast Suggests 13.11% Upside
As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The forecasts range from a low of 136.35 to a high of $210.00. The average price target represents an increase of 13.11% from its latest reported closing price of 148.87.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. The projected annual non-GAAP EPS is 11.88.
Abbvie Declares $1.48 Dividend
On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of April 14, 2023 will receive the payment on May 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $148.87 / share, the stock's dividend yield is 3.98%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=237).
The current dividend yield is 0.97 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.38. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4532 funds or institutions reporting positions in Abbvie. This is an increase of 131 owner(s) or 2.98% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.76%, a decrease of 15.17%. Total shares owned by institutions increased in the last three months by 0.86% to 1,439,170K shares.
The put/call ratio of ABBV is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 60,910K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 58,479K shares, representing an increase of 3.99%. The firm increased its portfolio allocation in ABBV by 15.14% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 53,756K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 52,745K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in ABBV by 13.33% over the last quarter.
Capital International Investors holds 47,099K shares representing 2.67% ownership of the company. In it's prior filing, the firm reported owning 45,827K shares, representing an increase of 2.70%. The firm increased its portfolio allocation in ABBV by 13.88% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,882K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 40,081K shares, representing an increase of 1.96%. The firm increased its portfolio allocation in ABBV by 13.15% over the last quarter.
Capital Research Global Investors holds 36,712K shares representing 2.08% ownership of the company. In it's prior filing, the firm reported owning 36,193K shares, representing an increase of 1.41%. The firm increased its portfolio allocation in ABBV by 12.36% over the last quarter.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
See all Abbvie regulatory filings.
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. | Fintel reports that on April 28, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. | Fintel reports that on April 28, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. | Abbvie Declares $1.48 Dividend On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Fintel reports that on April 28, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. | Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. Fintel reports that on April 28, 2023, Morgan Stanley maintained coverage of Abbvie (NYSE:ABBV) with a Overweight recommendation. The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. |
22589.0 | 2023-04-28 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-20 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
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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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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. |
22590.0 | 2023-04-28 00:00:00 UTC | Guggenheim Maintains Abbvie (ABBV) Buy Recommendation | ABBV | https://www.nasdaq.com/articles/guggenheim-maintains-abbvie-abbv-buy-recommendation | nan | nan | Fintel reports that on April 28, 2023, Guggenheim maintained coverage of Abbvie (NYSE:ABBV) with a Buy recommendation.
Analyst Price Forecast Suggests 13.11% Upside
As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The forecasts range from a low of 136.35 to a high of $210.00. The average price target represents an increase of 13.11% from its latest reported closing price of 148.87.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. The projected annual non-GAAP EPS is 11.88.
Abbvie Declares $1.48 Dividend
On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of April 14, 2023 will receive the payment on May 15, 2023. Previously, the company paid $1.48 per share.
At the current share price of $148.87 / share, the stock's dividend yield is 3.98%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 3.32%, and the highest has been 7.32%. The standard deviation of yields is 0.77 (n=237).
The current dividend yield is 0.97 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.38. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4532 funds or institutions reporting positions in Abbvie. This is an increase of 131 owner(s) or 2.98% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.76%, a decrease of 15.17%. Total shares owned by institutions increased in the last three months by 0.86% to 1,439,170K shares.
The put/call ratio of ABBV is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 60,910K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 58,479K shares, representing an increase of 3.99%. The firm increased its portfolio allocation in ABBV by 15.14% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 53,756K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 52,745K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in ABBV by 13.33% over the last quarter.
Capital International Investors holds 47,099K shares representing 2.67% ownership of the company. In it's prior filing, the firm reported owning 45,827K shares, representing an increase of 2.70%. The firm increased its portfolio allocation in ABBV by 13.88% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,882K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 40,081K shares, representing an increase of 1.96%. The firm increased its portfolio allocation in ABBV by 13.15% over the last quarter.
Capital Research Global Investors holds 36,712K shares representing 2.08% ownership of the company. In it's prior filing, the firm reported owning 36,193K shares, representing an increase of 1.41%. The firm increased its portfolio allocation in ABBV by 12.36% over the last quarter.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
See all Abbvie regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Fintel reports that on April 28, 2023, Guggenheim maintained coverage of Abbvie (NYSE:ABBV) with a Buy recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. | Fintel reports that on April 28, 2023, Guggenheim maintained coverage of Abbvie (NYSE:ABBV) with a Buy recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. | Abbvie Declares $1.48 Dividend On February 16, 2023 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Fintel reports that on April 28, 2023, Guggenheim maintained coverage of Abbvie (NYSE:ABBV) with a Buy recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. | Fintel reports that on April 28, 2023, Guggenheim maintained coverage of Abbvie (NYSE:ABBV) with a Buy recommendation. Analyst Price Forecast Suggests 13.11% Upside As of April 24, 2023, the average one-year price target for Abbvie is 168.39. The projected annual revenue for Abbvie is 55,229MM, a decrease of 2.66%. |
22591.0 | 2023-04-28 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-81 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
AbbVie Inc (Symbol: ABBV) $148.87 $168.14 12.95%
Brady Corp (Symbol: BRC) $50.69 $56.50 11.46%
Lowe's Companies Inc (Symbol: LOW) $204.53 $227.69 11.33%
RLI Corp (Symbol: RLI) $141.15 $156.50 10.87%
NIKE Inc (Symbol: NKE) $125.70 $138.17 9.92%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
AbbVie Inc (Symbol: ABBV) 3.98% 12.95% 16.93%
Brady Corp (Symbol: BRC) 1.81% 11.46% 13.27%
Lowe's Companies Inc (Symbol: LOW) 2.05% 11.33% 13.38%
RLI Corp (Symbol: RLI) 0.74% 10.87% 11.61%
NIKE Inc (Symbol: NKE) 1.08% 9.92% 11%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64%
Brady Corp (Symbol: BRC) $0.895 $0.915 2.23%
Lowe's Companies Inc (Symbol: LOW) $3.2 $4.2 31.25%
RLI Corp (Symbol: RLI) $3 $8.04 168.00%
NIKE Inc (Symbol: NKE) $1.16 $1.29 11.21%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc (Symbol: ABBV) $148.87 $168.14 12.95% Brady Corp (Symbol: BRC) $50.69 $56.50 11.46% Lowe's Companies Inc (Symbol: LOW) $204.53 $227.69 11.33% RLI Corp (Symbol: RLI) $141.15 $156.50 10.87% NIKE Inc (Symbol: NKE) $125.70 $138.17 9.92% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.98% 12.95% 16.93% Brady Corp (Symbol: BRC) 1.81% 11.46% 13.27% Lowe's Companies Inc (Symbol: LOW) 2.05% 11.33% 13.38% RLI Corp (Symbol: RLI) 0.74% 10.87% 11.61% NIKE Inc (Symbol: NKE) 1.08% 9.92% 11% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Brady Corp (Symbol: BRC) $0.895 $0.915 2.23% Lowe's Companies Inc (Symbol: LOW) $3.2 $4.2 31.25% RLI Corp (Symbol: RLI) $3 $8.04 168.00% NIKE Inc (Symbol: NKE) $1.16 $1.29 11.21% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $148.87 $168.14 12.95% Brady Corp (Symbol: BRC) $50.69 $56.50 11.46% Lowe's Companies Inc (Symbol: LOW) $204.53 $227.69 11.33% RLI Corp (Symbol: RLI) $141.15 $156.50 10.87% NIKE Inc (Symbol: NKE) $125.70 $138.17 9.92% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.98% 12.95% 16.93% Brady Corp (Symbol: BRC) 1.81% 11.46% 13.27% Lowe's Companies Inc (Symbol: LOW) 2.05% 11.33% 13.38% RLI Corp (Symbol: RLI) 0.74% 10.87% 11.61% NIKE Inc (Symbol: NKE) 1.08% 9.92% 11% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Brady Corp (Symbol: BRC) $0.895 $0.915 2.23% Lowe's Companies Inc (Symbol: LOW) $3.2 $4.2 31.25% RLI Corp (Symbol: RLI) $3 $8.04 168.00% NIKE Inc (Symbol: NKE) $1.16 $1.29 11.21% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $148.87 $168.14 12.95% Brady Corp (Symbol: BRC) $50.69 $56.50 11.46% Lowe's Companies Inc (Symbol: LOW) $204.53 $227.69 11.33% RLI Corp (Symbol: RLI) $141.15 $156.50 10.87% NIKE Inc (Symbol: NKE) $125.70 $138.17 9.92% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.98% 12.95% 16.93% Brady Corp (Symbol: BRC) 1.81% 11.46% 13.27% Lowe's Companies Inc (Symbol: LOW) 2.05% 11.33% 13.38% RLI Corp (Symbol: RLI) 0.74% 10.87% 11.61% NIKE Inc (Symbol: NKE) 1.08% 9.92% 11% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Brady Corp (Symbol: BRC) $0.895 $0.915 2.23% Lowe's Companies Inc (Symbol: LOW) $3.2 $4.2 31.25% RLI Corp (Symbol: RLI) $3 $8.04 168.00% NIKE Inc (Symbol: NKE) $1.16 $1.29 11.21% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $148.87 $168.14 12.95% Brady Corp (Symbol: BRC) $50.69 $56.50 11.46% Lowe's Companies Inc (Symbol: LOW) $204.53 $227.69 11.33% RLI Corp (Symbol: RLI) $141.15 $156.50 10.87% NIKE Inc (Symbol: NKE) $125.70 $138.17 9.92% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.98% 12.95% 16.93% Brady Corp (Symbol: BRC) 1.81% 11.46% 13.27% Lowe's Companies Inc (Symbol: LOW) 2.05% 11.33% 13.38% RLI Corp (Symbol: RLI) 0.74% 10.87% 11.61% NIKE Inc (Symbol: NKE) 1.08% 9.92% 11% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.42 $5.78 6.64% Brady Corp (Symbol: BRC) $0.895 $0.915 2.23% Lowe's Companies Inc (Symbol: LOW) $3.2 $4.2 31.25% RLI Corp (Symbol: RLI) $3 $8.04 168.00% NIKE Inc (Symbol: NKE) $1.16 $1.29 11.21% These five stocks are part of our full Dividend Aristocrats List. |
22592.0 | 2023-04-28 00:00:00 UTC | How AI Is Revolutionizing Tech, and Why You Should Invest in These Leading Companies | ABBV | https://www.nasdaq.com/articles/how-ai-is-revolutionizing-tech-and-why-you-should-invest-in-these-leading-companies | nan | nan | Artificial intelligence (AI) permeated industries for years, but the release of ChatGPT thrust it into the limelight. It's the talk of the investment community and around the water coolers across the country. But what exactly is it?
AI extends far beyond "intelligent" (and sometimes sinister) robots in the movies or Chatbots like ChatGPT. At its base, it is the concept of using machines to perform problem-solving functions previously reliant on human intervention. Machine learning, a subset of AI, means that applications improve performance over time as they consume data.
Healthcare heavyweights
Healthcare is an industry that screams AI. Drug development costs billions of dollars in research and development and has a high failure rate. Estimates say that less than 15% of drugs that enter clinical trials will be approved, and this doesn't account for those that never reach the trial stage. Companies like AbbVie (NYSE: ABBV) are harnessing AI's ability to spot patterns and sift through massive amounts of data for drug discovery.
There are several reasons to love AbbVie, like its $58 billion in 2022 revenue and $25 billion operating cash flow, its impressive portfolio of drugs in development, and 4% dividend, which has risen every year since the company was formed in 2013. Biosimilars for the company's drug Humira were released in the U.S. this year, so AbbVie will see that revenue decline; however, new drugs Skyrizi and Rinvoq are forecast to fill much of this gap with combined sales of $17.5 billion by 2025.
AbCellera Biologics (NASDAQ: ABCL) is a small company ($2 billion market cap) that might intrigue investors with high risk tolerance. The company's technology uses machine learning to discover antibodies for drug companies faster. It has several high-profile partners, including AbbVie. The company's revenue and income jumped due to COVID-19, but investors should be aware that the company expects to revert to unprofitability in 2023 and is still speculative.
AI also reaches patient care and robotic-assisted surgical systems. Intuitive Surgical (NASDAQ: ISRG), whose da Vinci platform is far and away the market leader, sees AI as a way to improve care. The company uses it to mine data from millions of procedures and design cutting-edge tools that will assist surgeons and improve patient outcomes. Intuitive released stellar first-quarter earnings that saw procedures grow 26% year over year and revenue up 14% to $1.7 billion. The company is highly profitable with a 27% operating margin, has no long-term debt, and has secular tailwinds given increased adoption and an aging population.
The tech giants
Microsoft (NASDAQ: MSFT) made a big splash with its $10 billion investment in ChatGPT founder OpenAI. Building market share for the search engine Microsoft Bing is one goal. Currently, Alphabet's Google Search dominates with nearly 85% of the market, but this gives Bing room to grow.
Using AI tools allowed one Microsoft customer to create review summaries from thousands of pages in data in a fraction of the time it would take to do it manually. Microsoft also embeds AI and machine learning into its cybersecurity, and the cloud platform Azure is integral to many developers. Its second quarter of fiscal 2023 brought $52.7 billion in sales with 2% year-over-year growth; although operating income dipped slightly to $20.4 billion, its 39% margin is still fantastic. The stock trades near its 52-week high, so new investors could consider waiting for a pullback.
Amazon (NASDAQ: AMZN) may not be the first to come to mind for AI, but perhaps it should. Its algorithms track consumer habits to effectively target advertisements. For instance, a pet food company uses Amazon's AI to target ads to reach pet owners. Amazon's digital advertising revenue has nearly doubled in two years from $19.8 billion to $37.7 billion.
Amazon has lots more to offer. For instance, Amazon Bedrock facilitates the creation of AI applications. Customers can generate chatbots, text generation or summarization, and more using tools available through Amazon Web Services (AWS). AWS is now an $85 billion annual business for Amazon with a 29% operating margin in 2022.
Amazon has been battered by headwinds in the aftermath of the COVID-19 pandemic, like inflation and increased labor costs. But the company is investing heavily in its future, and long-term investors can purchase the stock 27% off its 52-week high and 43% off its three-year high. There could be more short-term turmoil, so dollar-cost averaging is smart.
Don't forget the picks and shovels
The best way to make money from a gold rush isn't just mining for gold -- it's selling the picks and shovels to those who are mining. AI applications require massive amounts of data, computing power, and network capability, and Cloudflare's (NYSE: NET) network infrastructure has an answer. Customers that use Cloudflare can ditch expensive on-premises servers for the cloud.
Cloudflare has data centers near 275 cities globally. This edge-computing model means data on its network doesn't travel vast distances, making it faster, more secure, and more reliable. This is why Nvidia, a leader in advanced AI platforms, has partnered with Cloudflare.
Cloudflare's sales reached $975 million in 2022 (49% year-over-year growth), and it forecasts $1.3 billion in revenue in 2023. Significant profits under generally accepted accounting principles (GAAP) are probably several years away for Cloudflare, and the stock isn't cheap at 21 times sales, so this investment is most appropriate for those with a long-term growth mindset who can handle moderate risk and volatility. The company is led by founder Matthew Prince, has a massive addressable market, and trades 37% off its 52-week high.
Artificial intelligence is more than just a recent buzzword. It's something that companies have been leveraging and investing in for years. The current push into the mainstream offers investors a slew of options across industries. Those above are just the tip of the iceberg.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bradley Guichard has positions in AbbVie, Alphabet, Amazon.com, Cloudflare, Intuitive Surgical, and Microsoft. The Motley Fool has positions in and recommends AbCellera Biologics, Alphabet, Amazon.com, Cloudflare, Intuitive Surgical, and Microsoft. 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. | Companies like AbbVie (NYSE: ABBV) are harnessing AI's ability to spot patterns and sift through massive amounts of data for drug discovery. There are several reasons to love AbbVie, like its $58 billion in 2022 revenue and $25 billion operating cash flow, its impressive portfolio of drugs in development, and 4% dividend, which has risen every year since the company was formed in 2013. Biosimilars for the company's drug Humira were released in the U.S. this year, so AbbVie will see that revenue decline; however, new drugs Skyrizi and Rinvoq are forecast to fill much of this gap with combined sales of $17.5 billion by 2025. | Companies like AbbVie (NYSE: ABBV) are harnessing AI's ability to spot patterns and sift through massive amounts of data for drug discovery. There are several reasons to love AbbVie, like its $58 billion in 2022 revenue and $25 billion operating cash flow, its impressive portfolio of drugs in development, and 4% dividend, which has risen every year since the company was formed in 2013. Biosimilars for the company's drug Humira were released in the U.S. this year, so AbbVie will see that revenue decline; however, new drugs Skyrizi and Rinvoq are forecast to fill much of this gap with combined sales of $17.5 billion by 2025. | There are several reasons to love AbbVie, like its $58 billion in 2022 revenue and $25 billion operating cash flow, its impressive portfolio of drugs in development, and 4% dividend, which has risen every year since the company was formed in 2013. Biosimilars for the company's drug Humira were released in the U.S. this year, so AbbVie will see that revenue decline; however, new drugs Skyrizi and Rinvoq are forecast to fill much of this gap with combined sales of $17.5 billion by 2025. Companies like AbbVie (NYSE: ABBV) are harnessing AI's ability to spot patterns and sift through massive amounts of data for drug discovery. | Companies like AbbVie (NYSE: ABBV) are harnessing AI's ability to spot patterns and sift through massive amounts of data for drug discovery. There are several reasons to love AbbVie, like its $58 billion in 2022 revenue and $25 billion operating cash flow, its impressive portfolio of drugs in development, and 4% dividend, which has risen every year since the company was formed in 2013. Biosimilars for the company's drug Humira were released in the U.S. this year, so AbbVie will see that revenue decline; however, new drugs Skyrizi and Rinvoq are forecast to fill much of this gap with combined sales of $17.5 billion by 2025. |
22593.0 | 2023-04-27 00:00:00 UTC | US STOCKS-Wall St rallies as earnings season boost offsets economy worries | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-earnings-season-boost-offsets-economy-worries | nan | nan | By Sinéad Carew, Sruthi Shankar and Ankika Biswas
April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth.
Shares in Meta META.Osoared to touch the highest in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to Facebook and Instagram and boosting ad sales.
The S&P 500 communication services index .SPLRCL rallied sharply. Along with Meta, it got a boost from Alphabet Inc GOOGL.O, which reported upbeat results earlier this week, and Comcast CMCSA.O, whose results impressed on Thursday.
Shares of other megacaps including Microsoft Corp MSFT.O also rose while Amazon.com Inc AMZN.O rallied ahead of its results, due out after the market closes.
“Facebook earnings last night and more broadly largecap earnings continue to surprise to the upside," said Mona Mahajan, senior investment strategist at St. Louis based Edward Jones.
"There were big expectations going into earnings with these sectors already outperforming so there was a little bit of hesitation about whether they would disappoint. In fact, a lot of these business models proved pretty resilient," she said. "And the other part of the story is that a lot of companies that are cash rich have been issuing buyback programs.”
But Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina noted that economic data released on Thursday told a less positive story. It showed U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses cutting back on inventory investment.
"All things being equal the macro data this morning were very negative. With the market up this much after that data it shows that investors are looking past macro ... Earnings reports have been very good. Its definitely not irrational exuberance," said Zaccarelli.
Expectations for first-quarter earnings have drastically improved, with analysts projecting a 2.4% year-over-year drop for profits at S&P 500 companies versus the 5.1% decline forecast at the start of the earnings season, according to analyst estimates gathered by Refinitiv.
Eli Lilly and Co LLY.N advanced after raising its full-year profit forecast, while Comcast rose soared as it beat estimates for quarterly profit, thanks to broadband services demand and higher theme park attendance.
Even as slower GDP growth reflected a drag from weak inventory investment, the Federal Reserve still is expected to raise interest rates by another 25 basis points next week.
“Generally the economy looks like its decelerating. We think as the Fed continues with maybe one more rate hike next week we’ll start to see some more deceleration. Our base case is for a mild economic downturn in the second half,” said Edward Jones' Mahajan.
On Wednesday, the U.S. House of Representatives narrowly passed a bill to raise the government's $31.4 trillion debt ceiling that includes sweeping spending cuts. The bill is expected to get stalled in the Senate.
EBay Inc EBAY.O climbed after the e-commerce company forecast current-quarter revenue above projections.
AbbVie Inc ABBV.N fell sharply after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@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 Inc ABBV.N fell sharply after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. Shares in Meta META.Osoared to touch the highest in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to Facebook and Instagram and boosting ad sales. | AbbVie Inc ABBV.N fell sharply after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. Shares in Meta META.Osoared to touch the highest in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to Facebook and Instagram and boosting ad sales. | AbbVie Inc ABBV.N fell sharply after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. "And the other part of the story is that a lot of companies that are cash rich have been issuing buyback programs.” But Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina noted that economic data released on Thursday told a less positive story. | AbbVie Inc ABBV.N fell sharply after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. It showed U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses cutting back on inventory investment. |
22594.0 | 2023-04-27 00:00:00 UTC | Drugmakers scout for deals, ramp up research spending | ABBV | https://www.nasdaq.com/articles/drugmakers-scout-for-deals-ramp-up-research-spending | nan | nan | By Manas Mishra and Patrick Wingrove
April 27 (Reuters) - Drugmakers including Merck & Co MRK.N, AstraZeneca Plc AZN.L and AbbVie Inc ABBV.N said on Thursday they are open to acquisitions and reported a ramp up in research and development spending as the industry's larger players look for new sources of future revenue.
Several top drugs such as AbbVie flagship Humira have begun to face competition from new rivals or are expected to lose patent protections in the next few years, and deals could be a quick fix to address the loss of revenue from older therapies.
Merck recently announced a $10.8 billion deal to buy Prometheus Biosciences Inc RXDX.O.
Chief Executive Robert Davis said that deal does not change the company's business development strategy.
"We're focused on building the pipeline, both near and long term, and we do deals across the full spectrum," he said.
Sales of Merck's cancer immunotherapy Keytruda will start losing patent protections in 2028. Meanwhile, it has become the world's top selling prescription drug with first-quarter sales of $5.8 billion, exceeding even analysts' lofty estimates.
Guggenheim analyst Seamus Fernandez said pharmaceutical patent expirations will accelerate from 2026 to 2032 and that most will face competition from biosimilars that compete with complex biologic drugs.
A drop in valuation of smaller U.S. biotech companies from pandemic highs has made deals more attractive, and the collapse of top venture debt provider Silicon Valley Bank (SVB) is expected to worsen a funding drought for those companies.
"It's certainly more difficult to raise money for a biotech company. So it probably makes them a bit more willing to engage with players like us," said an AbbVie executive during a call to discuss first-quarter results.
AbbVie on Thursday reported sales that missed estimates for most treatments, including its blockbuster arthritis drug Humira, and its shares closed down 8%.
Humira's U.S. sales fell 26.1% in the quarter to $2.95 billion as it faced its first biosimilar competition from Amgen's AMGN.O Amjevita, and AbbVie forecast a steeper erosion in Humira's market share in the second quarter.
Amgen, which launched Amjevita in January, slightly increased its forecast for full-year 2023 revenue to $26.2 billion to $27.3 billion, from the previous outlook of $26 billion to $27.2 billion.
That excludes the impact of Amgen's pending $27.8 billion acquisition of Horizon Therapeutics Plc HZNP.O, which the company still expects to complete in the first half of this year.
Like Merck, AstraZeneca continues to reap the rewards of patent-protected cancer therapies for now.
AstraZeneca beat first-quarter estimates as sales of Imfinzi and strong demand in China helped soften the hit from falling sales of COVID-19 drugs.
The Britain-based drugmaker re-emphasized its focus in China, aiming to seize the opportunity to treat patients as the country bounces back from a protracted period of severe COVID restrictions.
In the last few months, AstraZeneca signed three licensing deals with Chinese companies, said CEO Pascal Soriot, adding that more, possibly larger moves are being contemplated.
"We definitely could make acquisitions. There is no limitation to this," Soriot said.
R&D SPENDING RAMPS UP
Most drugmakers reporting on Thursday beat Wall Street estimates for first-quarter earnings, while Eli Lilly and Co LLY.N missed mainly due to higher costs.
"You gotta spend money, to make money!," BMO Capital Markets analyst Evan Seigerman said of Lilly's results.
Research and development (R&D) costs at other drugmakers also rose in the quarter.
Merck reported a 66% jump in R&D costs, attributing about $1.2 billion to a charge from its acquisition of Imago. AstraZeneca's R&D spending rose 22% in the quarter.
Amgen said its R&D costs rose 12% in the first quarter, while Gilead Science Inc GILD.Oreported a 25% research spending jump to $1.4 billion, driven partly by higher expenses in late-stage clinical studies.
Gilead said it also expected full-year R&D expenses to rise to a low-double-digit percentage compared to 2022.
"We believe that there's a more appropriate level of investment for a company with a broad late-stage clinical portfolio that is targeting attractive opportunities and sustainable revenue growth," said Chief Financial Officer Andrew Dickinson.
Share movements were mixed on Thursday.
Eli Lilly shares closed 3.7% higher after it raised its annual revenue and profit forecasts on demand for its closely watched diabetes drug Mounjaro, which is being used off-label as an obesity treatment.
Merck's shares had been down earlier but closed up $1.5%, while shares of Bristol Myers Squibb BMY.N fell 0.6% after it missed first-quarter sales estimates.
Shares of both Amgen and Gilead were down more that 2% in after hours trading.
Drugmakers ramp up R&D spendinghttps://tmsnrt.rs/3ncB64X
(Reporting by Bhanvi Satija, Leroy Leo, Raghav Mahobe in Bengaluru, Natalie Grover in London, Michael Erman and Patrick Wingrove in New York; Writing by Manas Mishra; Editing by Caroline Humer and Bill Berkrot)
((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. | By Manas Mishra and Patrick Wingrove April 27 (Reuters) - Drugmakers including Merck & Co MRK.N, AstraZeneca Plc AZN.L and AbbVie Inc ABBV.N said on Thursday they are open to acquisitions and reported a ramp up in research and development spending as the industry's larger players look for new sources of future revenue. Several top drugs such as AbbVie flagship Humira have begun to face competition from new rivals or are expected to lose patent protections in the next few years, and deals could be a quick fix to address the loss of revenue from older therapies. So it probably makes them a bit more willing to engage with players like us," said an AbbVie executive during a call to discuss first-quarter results. | By Manas Mishra and Patrick Wingrove April 27 (Reuters) - Drugmakers including Merck & Co MRK.N, AstraZeneca Plc AZN.L and AbbVie Inc ABBV.N said on Thursday they are open to acquisitions and reported a ramp up in research and development spending as the industry's larger players look for new sources of future revenue. AbbVie on Thursday reported sales that missed estimates for most treatments, including its blockbuster arthritis drug Humira, and its shares closed down 8%. Humira's U.S. sales fell 26.1% in the quarter to $2.95 billion as it faced its first biosimilar competition from Amgen's AMGN.O Amjevita, and AbbVie forecast a steeper erosion in Humira's market share in the second quarter. | By Manas Mishra and Patrick Wingrove April 27 (Reuters) - Drugmakers including Merck & Co MRK.N, AstraZeneca Plc AZN.L and AbbVie Inc ABBV.N said on Thursday they are open to acquisitions and reported a ramp up in research and development spending as the industry's larger players look for new sources of future revenue. Humira's U.S. sales fell 26.1% in the quarter to $2.95 billion as it faced its first biosimilar competition from Amgen's AMGN.O Amjevita, and AbbVie forecast a steeper erosion in Humira's market share in the second quarter. Several top drugs such as AbbVie flagship Humira have begun to face competition from new rivals or are expected to lose patent protections in the next few years, and deals could be a quick fix to address the loss of revenue from older therapies. | AbbVie on Thursday reported sales that missed estimates for most treatments, including its blockbuster arthritis drug Humira, and its shares closed down 8%. Humira's U.S. sales fell 26.1% in the quarter to $2.95 billion as it faced its first biosimilar competition from Amgen's AMGN.O Amjevita, and AbbVie forecast a steeper erosion in Humira's market share in the second quarter. By Manas Mishra and Patrick Wingrove April 27 (Reuters) - Drugmakers including Merck & Co MRK.N, AstraZeneca Plc AZN.L and AbbVie Inc ABBV.N said on Thursday they are open to acquisitions and reported a ramp up in research and development spending as the industry's larger players look for new sources of future revenue. |
22595.0 | 2023-04-27 00:00:00 UTC | US STOCKS-Wall St rallies as earnings season boost offsets economy worries | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-earnings-season-boost-offsets-economy-worries-0 | nan | nan | By Sinéad Carew, Sruthi Shankar and Ankika Biswas
April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth.
Shares in Meta META.O closed up 13.9% after touching their highest level in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to its services and boosting ad sales.
As a result the S&P 500 communication services index .SPLRCLended up 5.5% for its biggest one-day percentage gain since February 2022. Along with Meta, it got a boost from Alphabet Inc GOOGL.O, which reported upbeat results earlier this week, while Comcast CMCSA.O rose 10.3% after its financial results impressed on Thursday.
“Facebook earnings last night and more broadly largecap earnings continue to surprise to the upside," said Mona Mahajan, senior investment strategist at St. Louis based Edward Jones.
"There were big expectations going into earnings with these sectors already outperforming so there was a little bit of hesitation about whether they would disappoint. In fact, a lot of these business models proved pretty resilient," she said. "And the other part of the story is that a lot of companies that are cash rich have been issuing buyback programs.”
The Dow Jones Industrial Average .DJI rose 524.29 points, or 1.57%, to 33,826.16, the S&P 500 .SPX gained 79.36 points, or 1.96%, to 4,135.35 and the Nasdaq Composite .IXIC added 287.89 points, or 2.43%, to 12,142.24.
While the S&P and the Dow registered their biggest daily percentage gains since Jan 6, the Nasdaq boasted its biggest single-day advance since March 16.
Of the S&P 500's 11 major sectors the biggest gainer was communications services followed by consumer discretionary .SPLRCD, up 2.8% while smallest gainer was energy .SPNY, which advanced just 0.5%.
It showed U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses cutting back on inventory investment.
"All things being equal the macro data this morning were very negative. With the market up this much after that data it shows that investors are looking past macro ... Earnings reports have been very good. Its definitely not irrational exuberance," said Zaccarelli.
Expectations for first-quarter earnings have drastically improved, with analysts projecting a 2.4% year-over-year drop for profits at S&P 500 companies versus the 5.1% decline forecast at the start of the earnings season, according to analyst estimates gathered by Refinitiv.
“Generally the economy looks like its decelerating. We think as the Fed continues with maybe one more rate hike next week we’ll start to see some more deceleration. Our base case is for a mild economic downturn in the second half,” said Edward Jones' Mahajan.
Eli Lilly and Co LLY.N advanced 3.7% after raising its full-year profit forecast, while Comcast rose soared as it beat estimates for quarterly profit, thanks to broadband services demand and higher theme park attendance.
EBay Inc EBAY.O climbed 5.1% after the e-commerce company forecast current-quarter revenue above projections.
AbbVie Inc ABBV.N fell about 8% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked.
Advancing issues outnumbered declining ones on the NYSE by a 3.26-to-1 ratio; on Nasdaq, a 1.89-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 41 new highs and 200 new lows.
On U.S. exchanges 10.77 billion shares changed hands compared with the 10.41 billion average for the last 20 sessions.
(Reporting by Sinéad Carew, Caroline Valetkevitch and Stephen Culp in New York, Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@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 Inc ABBV.N fell about 8% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. Shares in Meta META.O closed up 13.9% after touching their highest level in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to its services and boosting ad sales. | AbbVie Inc ABBV.N fell about 8% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. Shares in Meta META.O closed up 13.9% after touching their highest level in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to its services and boosting ad sales. | AbbVie Inc ABBV.N fell about 8% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. "And the other part of the story is that a lot of companies that are cash rich have been issuing buyback programs.” The Dow Jones Industrial Average .DJI rose 524.29 points, or 1.57%, to 33,826.16, the S&P 500 .SPX gained 79.36 points, or 1.96%, to 4,135.35 and the Nasdaq Composite .IXIC added 287.89 points, or 2.43%, to 12,142.24. | AbbVie Inc ABBV.N fell about 8% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped as a flat order backlog signaled demand may have peaked. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth. While the S&P and the Dow registered their biggest daily percentage gains since Jan 6, the Nasdaq boasted its biggest single-day advance since March 16. |
22596.0 | 2023-04-27 00:00:00 UTC | AbbVie (ABBV) Shares Cross 4% Yield Mark | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-shares-cross-4-yield-mark-0 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.92), with the stock changing hands as low as $147.16 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
ABBV has been growing its dividend for more than 20 years consecutively. For more dividend growth stocks view our Dividend Aristocrats List on Dividend Channel.
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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 the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.92), with the stock changing hands as low as $147.16 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.92), with the stock changing hands as low as $147.16 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.92), with the stock changing hands as low as $147.16 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.92), with the stock changing hands as low as $147.16 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. |
22597.0 | 2023-04-27 00:00:00 UTC | US STOCKS-Wall St rallies as Meta earnings offset economy worries | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-meta-earnings-offset-economy-worries-0 | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Lower inventories restrains Q1 US economic growth
Meta up, touts AI might as digital ads boost outlook
Eli Lilly up on annual profit forecast raise
Amazon.com soars, earnings due after market close
Indexes up: Dow 1.25%, S&P 1.58%, Nasdaq 2.19%
New throughout, updates prices, market activity and comments; new byline
By Sinéad Carew, Sruthi Shankar and Ankika Biswas
April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong update from Facebook parent Meta Platforms outweighed concerns over slowing U.S. economic growth.
Shares in Meta META.Osoared 15% to touch the highest in more than a year after the company forecast quarterly revenue above estimate, and CEO Mark Zuckerberg said AI was increasing traffic to Facebook and Instagram and boosting ad sales.
The S&P 500 communication services index .SPLRCL rallied 5.7% to lead sectoral gains, set for its biggest single-day percentage gain since early February. Along with Meta, it got a boost from Alphabet Inc GOOGL.O, which reported upbeat results earlier this week, and Comcast CMCSA.O, whose results impressed on Thursday.
Shares of other megacap companies also rose with Microsoft Corp MSFT.O up 2.8% while Amazon.com Inc AMZN.O jumped 5.2% ahead of its results after the market closes.
"It'a a risk on day. People are clearly focused on earnings. The earnings from Meta and Microsoft have been really good overshadowing the slowdown in GDP growth and the increase in inflation," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
But Zaccarelli noted that economic data released on Thursday made the story was less positive. Itshowed U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses cutting back on inventory investment.
"All things being equal the macro data this morning were very negative. With the market up this much after that data it shows that investors are looking past macro ... Earnings reports have been very good. Its definitely not irrational exuberance."
Expectations for first-quarter earnings have drastically improved, with analysts projecting a 2.4% year-over-year drop for profits at S&P 500 companies versus the 5.1% decline forecast at the start of the earnings season.
The Dow Jones Industrial Average .DJI rose 416.39 points, or 1.25%, to 33,718.26, the S&P 500 .SPX gained 63.96 points, or 1.58%, to 4,119.95 and the Nasdaq Composite .IXIC added 259.25 points, or 2.19%, to 12,113.60.
Eli Lilly and Co LLY.N advanced 2.4% on raising its full-year profit forecast, while Comcast rose 9% as it beat estimates for quarterly profit, thanks to broadband services demand and higher theme park attendance.
Slower GDP growth mostly reflected a drag from weak inventory investment. The Federal Reserve still is expected to raise interest rates by another 25 basis points next week.
The U.S. House of Representatives on Wednesday narrowly passed a bill to raise the government's $31.4 trillion debt ceiling that includes sweeping spending cuts. The bill is expected to get stalled in the Senate.
EBay Inc EBAY.O climbed 4.6% after the e-commerce company forecast current-quarter revenue above projections.
AbbVie Inc ABBV.N fell 87.4% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped 1.8% as a flat order backlog signaled demand may have peaked.
Advancing issues outnumbered declining ones on the NYSE by a 2.81-to-1 ratio; on Nasdaq, a 1.84-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 34 new highs and 180 new lows.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@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 Inc ABBV.N fell 87.4% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped 1.8% as a flat order backlog signaled demand may have peaked. Lower inventories restrains Q1 US economic growth Meta up, touts AI might as digital ads boost outlook Eli Lilly up on annual profit forecast raise Amazon.com soars, earnings due after market close Indexes up: Dow 1.25%, S&P 1.58%, Nasdaq 2.19% New throughout, updates prices, market activity and comments; new byline By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong update from Facebook parent Meta Platforms outweighed concerns over slowing U.S. economic growth. Shares in Meta META.Osoared 15% to touch the highest in more than a year after the company forecast quarterly revenue above estimate, and CEO Mark Zuckerberg said AI was increasing traffic to Facebook and Instagram and boosting ad sales. | AbbVie Inc ABBV.N fell 87.4% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped 1.8% as a flat order backlog signaled demand may have peaked. Lower inventories restrains Q1 US economic growth Meta up, touts AI might as digital ads boost outlook Eli Lilly up on annual profit forecast raise Amazon.com soars, earnings due after market close Indexes up: Dow 1.25%, S&P 1.58%, Nasdaq 2.19% New throughout, updates prices, market activity and comments; new byline By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong update from Facebook parent Meta Platforms outweighed concerns over slowing U.S. economic growth. Shares in Meta META.Osoared 15% to touch the highest in more than a year after the company forecast quarterly revenue above estimate, and CEO Mark Zuckerberg said AI was increasing traffic to Facebook and Instagram and boosting ad sales. | AbbVie Inc ABBV.N fell 87.4% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped 1.8% as a flat order backlog signaled demand may have peaked. Lower inventories restrains Q1 US economic growth Meta up, touts AI might as digital ads boost outlook Eli Lilly up on annual profit forecast raise Amazon.com soars, earnings due after market close Indexes up: Dow 1.25%, S&P 1.58%, Nasdaq 2.19% New throughout, updates prices, market activity and comments; new byline By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong update from Facebook parent Meta Platforms outweighed concerns over slowing U.S. economic growth. Expectations for first-quarter earnings have drastically improved, with analysts projecting a 2.4% year-over-year drop for profits at S&P 500 companies versus the 5.1% decline forecast at the start of the earnings season. | AbbVie Inc ABBV.N fell 87.4% after the drugmaker missed quarterly revenue estimates for its newer treatments, while heavy machinery maker Caterpillar Inc CAT.N dipped 1.8% as a flat order backlog signaled demand may have peaked. Lower inventories restrains Q1 US economic growth Meta up, touts AI might as digital ads boost outlook Eli Lilly up on annual profit forecast raise Amazon.com soars, earnings due after market close Indexes up: Dow 1.25%, S&P 1.58%, Nasdaq 2.19% New throughout, updates prices, market activity and comments; new byline By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 27 (Reuters) - The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong update from Facebook parent Meta Platforms outweighed concerns over slowing U.S. economic growth. With the market up this much after that data it shows that investors are looking past macro ... Earnings reports have been very good. |
22598.0 | 2023-04-27 00:00:00 UTC | Why AbbVie Stock Is Crashing Today | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-is-crashing-today | nan | nan | What happened
Shares of the pharmaceutical giant AbbVie (NYSE: ABBV) fell by as much as 9% in early morning trading Thursday. The drugmaker's shares have recovered since hitting this intra-day low, but they were still down by a hefty 7.8% as of 1:14 p.m. ET Thursday afternoon.
What sparked this sell-off? Ahead of the opening bell, AbbVie reported 2023 first-quater earnings that didn't sit well with some shareholders.
So what
The headline from AbbVie's latest financial report is that its flagship immunology medicine, Humira, saw a 26.1% dip in U.S. sales and a 20% drop in international sales during the three-month period, relative to the same period a year ago. Humira's sales plunged in the quarter in response to biosimilar (generic biologics) competition in both the U.S. and abroad. This event was widely anticipated by Wall Street analysts and industry insiders, but the stark reality of the situation apparently didn't sink in until today's earnings report.
Unfortunately, AbbVie's quarterly report contained additional problems beyond Humira's marked decline. Specifically, AbbVie's portion of sales from the blood cancer drug Imbruvica dropped by 27% in the U.S. and 19.7% internationally, reflecting increased competition in the hotly contested BTK inhibitor space. AbbVie also reported a 5.4% dip in global medical aesthetics sales in the first quarter of the year, thanks in large part to weakness in its Juvederm franchise.
Now what
Is AbbVie stock a buy on this pullback? As I've mentioned elsewhere, AbbVie is staring down a slew of competitive threats in immunology, oncology, and medical aesthetics right now. The pharma company does sport a deep pipeline in these areas, but it may take time for newer products to offset these forthcoming sales declines. As such, investors may want to watch this developing story unfold from the sidelines for now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Specifically, AbbVie's portion of sales from the blood cancer drug Imbruvica dropped by 27% in the U.S. and 19.7% internationally, reflecting increased competition in the hotly contested BTK inhibitor space. AbbVie also reported a 5.4% dip in global medical aesthetics sales in the first quarter of the year, thanks in large part to weakness in its Juvederm franchise. What happened Shares of the pharmaceutical giant AbbVie (NYSE: ABBV) fell by as much as 9% in early morning trading Thursday. | So what The headline from AbbVie's latest financial report is that its flagship immunology medicine, Humira, saw a 26.1% dip in U.S. sales and a 20% drop in international sales during the three-month period, relative to the same period a year ago. AbbVie also reported a 5.4% dip in global medical aesthetics sales in the first quarter of the year, thanks in large part to weakness in its Juvederm franchise. What happened Shares of the pharmaceutical giant AbbVie (NYSE: ABBV) fell by as much as 9% in early morning trading Thursday. | So what The headline from AbbVie's latest financial report is that its flagship immunology medicine, Humira, saw a 26.1% dip in U.S. sales and a 20% drop in international sales during the three-month period, relative to the same period a year ago. 10 stocks we like better than AbbVie When our analyst team has a stock tip, it can pay to listen. What happened Shares of the pharmaceutical giant AbbVie (NYSE: ABBV) fell by as much as 9% in early morning trading Thursday. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! What happened Shares of the pharmaceutical giant AbbVie (NYSE: ABBV) fell by as much as 9% in early morning trading Thursday. Ahead of the opening bell, AbbVie reported 2023 first-quater earnings that didn't sit well with some shareholders. |
22599.0 | 2023-04-27 00:00:00 UTC | AbbVie (ABBV) Q1 Earnings Beat, Skyrizi Sales Underperform | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q1-earnings-beat-skyrizi-sales-underperform | nan | nan | AbbVie Inc. ABBV reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. The reported earnings also exceeded the guidance of $2.31-$2.41. Earnings declined 22.2% year over year.
ABBV’s revenues of $12.23 billion beat the Zacks Consensus Estimate and our estimate of $12.08 billion and $12.03 billion, respectively. Sales declined 9.7% year over year on a reported basis and 8.3% on an operational basis. The downside was caused by lower sales of Humira, Imbruvica and Juvederm. This decline was partially offset by the rise in product sales of key drugs like Rinvoq, Skyrizi, Botox and Vraylar.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales decline of 24.3% to $3.54 billion on an operational basis. Sales in the United States declined 26.1% to $2.95 billion, while ex-U.S. market sales were down 14.8% on an operational basis to $593.0 million. The drug’s sales beat both the Zacks Consensus Estimate and our model estimates that were pegged at $3.44 billion and $3.45 billion, respectively.
This substantial decline in Humira sales was due to the drug’s recent loss of exclusivity in the United States. Earlier this January, Amgen AMGN 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, Novartis NVS and Pfizer have 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. Last month, Novartis, through its Sandoz division, announced that the FDA 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 Jul 1, 2023. Humira had previously lost exclusivity in Europe in 2018.
Net revenues recorded from Skyrizi in the first quarter were $1.36 billion, up 46.3% on an operational basis year over year. This rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales missed the Zacks Consensus Estimate and our model estimates of $1.45 billion and $1.43 billion, respectively.
During the quarter, Rinvoq registered sales of $686 million, up 51.2% year over year on an operational basis. Rinvoq’s U.S. sales rose 44.4% year over year during the quarter, while ex-U.S. sales of the drug surged 64.9%. The drug’s sales beat the Zacks Consensus Estimate of $682 million but missed out on our estimate of $699 million.
Sales from the neuroscience portfolio increased 15.0% on an operational basis to $1.70 billion, driven by higher sales of Botox Therapeutic and Vraylar. The new migraine drug Qulipta also contributed to sales growth. Neuroscience sales figures beat the Zacks Consensus Estimate and our model estimate of $1.52 billion and $1.55 billion, respectively.
While Botox Therapeutic sales rose 18.7% to $719 million, sales of Vraylar increased 31.3% to $561 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $152 million, up 10.0% year over year.
The recently launched Qulipta generated $66 million in product revenues compared to $52 million in fourth-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 12.9% on an operational basis to $1.42 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. The oncology/hematology sales figure missed our model estimate of $1.45 billion.
First-quarter net revenues from Imbruvica were $878 million, down 25.2% year over year. AbbVie markets the drug in partnership with Johnson & Johnson JNJ. The company shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $638 million, down 27.0% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug declined 19.7% to $240 million.
AbbVie’s leukemia drug Venclexta generated revenues of $538 million in the reported quarter, reflecting 17.5% year-over-year growth.
AbbVie’s aesthetics portfolio sales were down 2.0% on an operational basis to $1.30 billion. Lower sales of Juvederm and other aesthetic drugs more than offset the growth in Botox Cosmetic product sales. Sales of Botox Cosmetic rose 5.8% on an operational basis to $659 million, while Juvéderm’s sales fell 7.4% on an operational basis to $355 million.
Eye care portfolio sales declined 19.0% on an operational basis to $608 million. Sales of Restasis, a key drug in the portfolio, decreased 62.6% year over year to $92 million.
Shares of AbbVie were down 6.0% in pre-market trading on Apr 27 likely due to a softer sales performance of Skyrizi. In the year so far, AbbVie’s shares have gained 0.1% compared with the industry’s 1.5% rise.
Image Source: Zacks Investment Research
Cost Discussion
Adjusted SG&A expenses rose 4.6% to $2.98 billion, while adjusted R&D expenses were $1.66 billion in the first quarter, up 12% year over year. The adjusted operating margin represented 45.0% of sales.
Raises 2023 Guidance
AbbVie raised its earnings per share (EPS) guidance for 2023. The company now expects adjusted EPS in the range of $10.72-$11.12, a 10-cent rise in both the upper and lower limits of the previously provided EPS guidance of $10.62-$11.02.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Quarter in Detail In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales decline of 24.3% to $3.54 billion on an operational basis. Like Amgen, several other companies like Biogen, Boehringer Ingelheim, Novartis NVS and Pfizer have 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 reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 12.9% on an operational basis to $1.42 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. 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 reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 12.9% on an operational basis to $1.42 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. 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 reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. | AbbVie Inc. ABBV reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. AbbVie’s aesthetics portfolio sales were down 2.0% on an operational basis to $1.30 billion. ABBV’s revenues of $12.23 billion beat the Zacks Consensus Estimate and our estimate of $12.08 billion and $12.03 billion, respectively. |
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