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22800.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Treasury yields rise; Disney hits 5-month high | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-treasury-yields-rise-disney-hits-5-month-high | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Disney jumps on Q1 beat, layoff plans
PepsiCo gains on quarterly profit, sales beat
Salesforce rises on reports Third Point owns stake
U.S. weekly jobless claims increase
Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65%
Updates prices, details; adds comments
By Carolina Mandl
Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings.
"The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. He said investors were also still digesting recent comments from Fed officials.
The U.S. 30-year Treasury yield rose after an auction in the early afternoon, while the yield curve between two-year and 10-year notes widened earlier.
Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 5.2179%. The S&P 500 communication services sector .SPLRCL sank 2.86%.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Meanwhile, Disney Co DIS.N was up 0.36% after posting the highest gains since late August. It beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat.
Salesforce Inc CRM.N added 2.31% on reports that hedge fund Third Point LLC owns a stake in the company.
At 2:36 p.m. ET, the Dow Jones Industrial Average .DJI fell 175.71 points, or 0.52%, to 33,773.3, the S&P 500 .SPX lost 23.16 points, or 0.56%, to 4,094.7 and the Nasdaq Composite .IXIC dropped 77.55 points, or 0.65%, to 11,832.97.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations.
Ralph Lauren Corp RL.N gained 1.01% after beating quarterly sales expectations, while peer Tapestry Inc TPR.N soared 4.48% on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell 1.80%.
Declining issues outnumbered advancing ones on the NYSE by a 1.85-to-1 ratio; on the Nasdaq, a 2.02-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 69 new highs and 41 new lows.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. Ralph Lauren Corp RL.N gained 1.01% after beating quarterly sales expectations, while peer Tapestry Inc TPR.N soared 4.48% on a strong annual profit forecast. | PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data. |
22801.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Alphabet extends fall; Disney hits 5-month high | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-alphabet-extends-fall-disney-hits-5-month-high | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Disney jumps on Q1 beat, layoff plans
PepsiCo gains on quarterly profit, sales beat
Salesforce rises on reports Third Point owns stake
U.S. weekly jobless claims increase
Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25%
Updates prices, details; adds comments
By Johann M Cherian and Ankika Biswas
Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings.
Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 5.6%. The S&P 500 communication services sector .SPLRCL sank 2.6%, while Alphabet shares eyed their worst weekly performance since November.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Meanwhile, Disney Co DIS.N gained 1.6%, highest since late August, after beating earnings estimates and announcing job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat.
"Wall Street wants to see companies taking action and reducing costs and expenses. That's the name of the game right now. Not great for employees, but certainly good for shareholders," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Salesforce IncCRM.N added 2.8% on reports that hedge fund Third Point LLC owns a stake in the company.
At 12:53 p.m. ET, the Dow Jones Industrial Average .DJI was down 73.56 points, or 0.22%, at 33,875.45, the S&P 500 .SPX was down 10.01 points, or 0.24%, at 4,107.85, and the Nasdaq Composite .IXIC was down 29.41 points, or 0.25%, at 11,881.11.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose 1.2% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.1% after beating fourth-quarter profit expectations.
Ralph Lauren CorpRL.N gained 1.2% after beating quarterly sales expectations, while peer Tapestry IncTPR.N soared 5.4% on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems IncCSII.O soared 48.5% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell 0.9%.
Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and a 1.52-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 64 new highs and 39 new lows.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PepsiCo Inc PEP.O rose 1.2% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.1% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Meanwhile, Disney Co DIS.N gained 1.6%, highest since late August, after beating earnings estimates and announcing job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat. | PepsiCo Inc PEP.O rose 1.2% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.1% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 5.6%. | PepsiCo Inc PEP.O rose 1.2% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.1% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims. | PepsiCo Inc PEP.O rose 1.2% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.1% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims. |
22802.0 | 2023-02-09 00:00:00 UTC | What Stocks to Buy Today? 3 Dividend Stocks To Watch After Earnings | ABBV | https://www.nasdaq.com/articles/what-stocks-to-buy-today-3-dividend-stocks-to-watch-after-earnings | nan | nan | Dividends are payments made by a corporation to its shareholders. They are typically in the form of cash or additional shares of stock. They are a way for companies to reward their investors for holding their stock. As such, they can provide a steady source of income for investors. Dividend stocks are stocks that pay dividends to their shareholders. While dividend investing is the strategy of investing in these stocks for the purpose of receiving a regular income stream.
Dividend investing can be a great way for investors to generate passive income and grow their wealth over time. By investing in companies with a track record of consistently paying dividends, investors can potentially receive a steady stream of income, even during market downturns. Additionally, companies that consistently pay dividends are often seen as financially stable and well-established, making them attractive investments for those seeking a lower-risk option.
It’s important to note that not all stocks pay dividends, and the amount of the dividend can fluctuate over time. It’s also important to consider the overall financial health of the company and its ability to continue paying dividends in the future. Ultimately, dividend investing can be a valuable strategy for those seeking to generate passive income and build wealth over the long term. With this being said, now let’s look at three dividend-paying stocks to check out in the stock market today.
Dividend Stocks To Watch For February 2023
PepsiCo, Inc. (NASDAQ: PEP)
AbbVie Inc. (NYSE: ABBV)
Philip Morris International Inc. (NYSE: PM)
PepsiCo (PEP Stock)
To kick us off, PepsiCo, Inc. (PEP) is a multinational food and beverage company that offers a wide range of products, including beverages, snacks, and breakfast foods. The company operates in over 200 countries and is known for brands such as Pepsi, Frito-Lay, Tropicana, and Gatorade.
Today, Thursday, PepsiCo announced its Q4 and full-year 2022 financial results. Getting straight into it, the company reported a Q4 2022 EPS of $1.67, along with revenue of $28 billion. The earnings were above the consensus estimate of $1.64 per share on revenue of $26.6 billion. Next, PepsiCo notched in year-over-year revenue growth of 10.9%. Moreover, the company said it is expecting 2023 fiscal year earnings of roughly $7.20 per share on revenue of approximately $89.85 billion.
As a result of this earnings release, on Thursday during lunch-time shares of PEP stock are trading higher on the day by 1.19% at $173.20 a share.
Source: TD Ameritrade TOS
[Read More] 3 Copper Mining Stocks To Watch In February 2023
AbbVie (ABBV Stock)
Next, AbbVie Inc. (ABBV) is a pharmaceutical company that specializes in the research, development, and manufacture of treatments for a range of conditions, including cancer, immunology, and neuroscience. The company has a strong portfolio of patented drugs and a focus on innovative research.
Also today, AbbVie announced its 4th quarter and full-year 2022 financial results. In detail, the biotech company reported Q4 2022 earnings of $3.60 per share, with revenue of $15.1 billion. This is versus Wall Street’s consensus estimates which were earnings of $3.54 per share and revenue estimates of $15.3 billion.
Following this news release, during Thursday’s early afternoon trading session, shares of ABBV stock are moving higher on the day by 3.74% at $150.01 a share.
Source: TD Ameritrade TOS
[Read More] 3 Natural Gas Stocks To Watch Today
Philip Morris International (PM Stock)
Lastly, Philip Morris International Inc. (PM) is a leading international tobacco company, known for its portfolio of premium cigarette brands, including Marlboro. The company operates in over 180 countries and has a strong focus on responsible marketing and reducing the harm caused by smoking.
Like the other two names mentioned above, Philip Morris also reported its 4th quarter 2022 financial results today, Thursday. In the report, the company notched in fourth quarter 2022 earnings of $1.39 per share on revenue of $20 billion. This is compared to analyst consensus estimates for the quarter, which were an EPS of $1.29 per share, along with revenue estimates of $7.6 billion.
Meanwhile, during Thursday’s lunchtime trading action, shares of PM stock are trading slightly higher on the day so far by 0.27% at $101.58 a share.
Source: TD Ameritrade TOS
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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. | Dividend Stocks To Watch For February 2023 PepsiCo, Inc. (NASDAQ: PEP) AbbVie Inc. (NYSE: ABBV) Philip Morris International Inc. (NYSE: PM) PepsiCo (PEP Stock) To kick us off, PepsiCo, Inc. (PEP) is a multinational food and beverage company that offers a wide range of products, including beverages, snacks, and breakfast foods. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a pharmaceutical company that specializes in the research, development, and manufacture of treatments for a range of conditions, including cancer, immunology, and neuroscience. Also today, AbbVie announced its 4th quarter and full-year 2022 financial results. | Dividend Stocks To Watch For February 2023 PepsiCo, Inc. (NASDAQ: PEP) AbbVie Inc. (NYSE: ABBV) Philip Morris International Inc. (NYSE: PM) PepsiCo (PEP Stock) To kick us off, PepsiCo, Inc. (PEP) is a multinational food and beverage company that offers a wide range of products, including beverages, snacks, and breakfast foods. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a pharmaceutical company that specializes in the research, development, and manufacture of treatments for a range of conditions, including cancer, immunology, and neuroscience. Also today, AbbVie announced its 4th quarter and full-year 2022 financial results. | Dividend Stocks To Watch For February 2023 PepsiCo, Inc. (NASDAQ: PEP) AbbVie Inc. (NYSE: ABBV) Philip Morris International Inc. (NYSE: PM) PepsiCo (PEP Stock) To kick us off, PepsiCo, Inc. (PEP) is a multinational food and beverage company that offers a wide range of products, including beverages, snacks, and breakfast foods. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a pharmaceutical company that specializes in the research, development, and manufacture of treatments for a range of conditions, including cancer, immunology, and neuroscience. Also today, AbbVie announced its 4th quarter and full-year 2022 financial results. | Dividend Stocks To Watch For February 2023 PepsiCo, Inc. (NASDAQ: PEP) AbbVie Inc. (NYSE: ABBV) Philip Morris International Inc. (NYSE: PM) PepsiCo (PEP Stock) To kick us off, PepsiCo, Inc. (PEP) is a multinational food and beverage company that offers a wide range of products, including beverages, snacks, and breakfast foods. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a pharmaceutical company that specializes in the research, development, and manufacture of treatments for a range of conditions, including cancer, immunology, and neuroscience. Also today, AbbVie announced its 4th quarter and full-year 2022 financial results. |
22803.0 | 2023-02-09 00:00:00 UTC | AbbVie (ABBV) Beats Q4 Earnings Estimates, Misses on Sales | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-beats-q4-earnings-estimates-misses-on-sales | nan | nan | AbbVie Inc. ABBV reported adjusted earnings of $3.60 per share for the fourth quarter of 2022, beating both the Zacks Consensus Estimate and our estimate, which stood at $3.54. The reported earnings also exceeded the guidance of $3.51-$3.55. Earnings rose 16.9% year over year.
ABBV’s revenues of $15.12 billion missed the Zacks Consensus Estimate and our estimate of $15.35 billion and $15.32 billion, respectively. Sales rose 1.6% year over year on a reported basis and 3.8% on an operational basis. Sales were driven by immunology and neuroscience products, with key drugs like Rinvoq, Skyrizi and Vraylar contributing to the top line. This was partially offset by lower sales of Juvederm and Imbruvica.
Shares of AbbVie were up 1% in pre-market trading on Feb 9 following the announcement. AbbVie’s shares have gained 1.3% in the trailing 12 months period compared with the industry’s 9.2% rise.
Image Source: Zacks Investment Research
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 rise of 6.0% to $5.58 billion on an operational basis. Sales in the United States climbed 9.9% to $5.01 billion, which more than offset the 16.9% decline in ex-U.S. market sales of $573 million. The drug’s sales met the Zacks Consensus Estimate pegged at $5.58 billion.
Humira’s international sales were affected by the launch of several direct biosimilar drugs in Europe by other pharma companies, including Amgen AMGN, Sandoz and Biogen BIIB. Companies like Amgen, Sandoz and Biogen were the first to start commercializing a Humira-biosimilar in Europe in 2018. Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies have already 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 week, Amgen announced the launch of Amjevita in the United States, becoming the first company to launch a Humira biosimilar in the country.
Net revenues recorded from Skyrizi in the fourth quarter were $1.58 billion, up 78.9% on an operational basis year over year. This significant rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales also beat the Zacks Consensus Estimate and our model estimates of $1.55 billion and $1.47 billion, respectively.
During the quarter, Rinvoq registered sales of $770 million, up 55.4% year over year on an operational basis. Ex-U.S. sales of the drug rose 74.5% year over year during the quarter. However, the drug’s sales missed both the Zacks Consensus Estimate and our model estimates of $868 million and $859 million, respectively.
Sales from the neuroscience portfolio increased 5.1% on an operational basis to $1.71 billion, driven by higher sales of Botox Therapeutic and Vraylar. The company also generated additional sales from the migraine drug Qulipta. Neuroscience sales figures missed the Zacks Consensus Estimate and our estimate of $1.90 billion and $1.93 billion, respectively.
While Botox Therapeutic sales rose 10.7% to $728 million, sales of Vraylar increased 15.5% to $565 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $197 million, up 7.7% year over year.
The recently launched Qulipta generated $52 million in product revenues compared to $62 million in third-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 11.2% on an operational basis to $1.63 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. While the oncology/hematology sales beat the Zacks Consensus of $1.54 billion, it missed our model estimate of $1.66 billion.
Fourth-quarter net revenues from Imbruvica were $1.12 billion, down 19.5% year over year. AbbVie developed 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 $841 million, down 24.6% 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 rose 1.6% to $274 million.
ABBV’s leukemia drug Venclexta generated revenues of $516 million in the reported quarter, reflecting 12.2% year-over-year growth.
AbbVie’s aesthetics portfolio sales were down 4.2% on an operational basis to $1.29 billion. The sales figure was lower than management’s expectations as declining sales of Juvederm and other aesthetic drugs offset growth in the sales of Botox Cosmetic. Sales of Botox Cosmetic rose 7.1% on an operational basis to $642 million, while Juvéderm’s sales fell 19% on an operational basis to $322 million.
Juvederm sales were hurt by the impact of COVID in China and the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers.
Eye care portfolio sales declined 35.2% on an operational basis to $590 million. Sales of Restasis, a key drug in the portfolio, decreased 69.4% year over year to $110 million.
Adjusted SG&A expenses declined 4.7% to $3.15 billion, while adjusted R&D expenses were $1.74 billion in the fourth quarter, down 3.2% year over year. The adjusted operating margin represented 52.1% of sales.
Full-Year Results
AbbVie reported revenues of $58.05 billion, up 5.1% year over year. The company’s adjusted earnings for 2022 were $13.77 per share, up 16.4% from the year-ago period’s levels.
2023 Guidance
AbbVie issued earnings per share (EPS) guidance for 2023. The company expects adjusted EPS in the range of $10.70-$11.10, suggesting a year-over-year decline of 19.4-22.3%. The earnings guidance fell short of the Zacks Consensus Estimate of $11.50 per share.
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. | Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies have already 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. Juvederm sales were hurt by the impact of COVID in China and the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers. AbbVie Inc. ABBV reported adjusted earnings of $3.60 per share for the fourth quarter of 2022, beating both the Zacks Consensus Estimate and our estimate, which stood at $3.54. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 11.2% on an operational basis to $1.63 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 Biogen Inc. (BIIB) : 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 $3.60 per share for the fourth quarter of 2022, beating both the Zacks Consensus Estimate and our estimate, which stood at $3.54. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 11.2% on an operational basis to $1.63 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 Biogen Inc. (BIIB) : 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 $3.60 per share for the fourth quarter of 2022, beating both the Zacks Consensus Estimate and our estimate, which stood at $3.54. | AbbVie’s share of profit from the international sales of the J&J-partnered drug rose 1.6% to $274 million. Click to get this free report Biogen Inc. (BIIB) : 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 $3.60 per share for the fourth quarter of 2022, beating both the Zacks Consensus Estimate and our estimate, which stood at $3.54. |
22804.0 | 2023-02-09 00:00:00 UTC | Vanguard Group Increases Position in AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/vanguard-group-increases-position-in-abbvie-abbv | nan | nan | Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 158.32MM shares of AbbVie Inc (ABBV). This represents 8.95% of the company.
In their previous filing dated February 9, 2022 they reported 146.31MM shares and 8.28% of the company, an increase in shares of 8.21% and an increase in total ownership of 0.67% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 14.89% Upside
As of February 9, 2023, the average one-year price target for AbbVie is $166.14. The forecasts range from a low of $136.35 to a high of $210.00. The average price target represents an increase of 14.89% from its latest reported closing price of $144.61.
The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.48%. The projected annual EPS is $11.88, an increase of 57.73%.
What is the Fund Sentiment?
There are 4443 funds or institutions reporting positions in AbbVie. This is an increase of 43 owner(s) or 0.98% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.90%, an increase of 0.08%. Total shares owned by institutions increased in the last three months by 0.28% to 1,425,409K shares. The put/call ratio of ABBV is 0.89, indicating a bullish outlook.
What are large shareholders doing?
Jpmorgan Chase & holds 58,479K shares representing 3.31% ownership of the company. In it's prior filing, the firm reported owning 56,111K shares, representing an increase of 4.05%. The firm decreased its portfolio allocation in ABBV by 5.86% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 52,745K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 52,037K shares, representing an increase of 1.34%. The firm decreased its portfolio allocation in ABBV by 7.42% over the last quarter.
Capital International Investors holds 45,827K shares representing 2.59% ownership of the company. In it's prior filing, the firm reported owning 43,155K shares, representing an increase of 5.83%. The firm decreased its portfolio allocation in ABBV by 0.21% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,081K shares representing 2.27% ownership of the company. In it's prior filing, the firm reported owning 39,113K shares, representing an increase of 2.41%. The firm decreased its portfolio allocation in ABBV by 7.15% over the last quarter.
Capital Research Global Investors holds 36,193K shares representing 2.05% ownership of the company. In it's prior filing, the firm reported owning 26,296K shares, representing an increase of 27.34%. The firm increased its portfolio allocation in ABBV by 27.22% over the last quarter.
AbbVie Declares $1.48 Dividend
On October 28, 2022 the company declared a regular quarterly dividend of $1.48 per share ($5.92 annualized). Shareholders of record as of January 12, 2023 will receive the payment on February 15, 2023. Previously, the company paid $1.41 per share.
At the current share price of $144.61 / share, the stock's dividend yield is 4.09%. Looking back five years and taking a sample every week, the average dividend yield has been 4.73%, the lowest has been 2.54%, and the highest has been 7.32%. The standard deviation of yields is 0.79 (n=237).
The current dividend yield is 0.80 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.78. 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.
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 Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 158.32MM shares of AbbVie Inc (ABBV). 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 14.89% Upside As of February 9, 2023, the average one-year price target for AbbVie is $166.14. | Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 158.32MM shares of AbbVie Inc (ABBV). Analyst Price Forecast Suggests 14.89% Upside As of February 9, 2023, the average one-year price target for AbbVie is $166.14. The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.48%. | Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 158.32MM shares of AbbVie Inc (ABBV). Analyst Price Forecast Suggests 14.89% Upside As of February 9, 2023, the average one-year price target for AbbVie is $166.14. The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.48%. | Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 158.32MM shares of AbbVie Inc (ABBV). Analyst Price Forecast Suggests 14.89% Upside As of February 9, 2023, the average one-year price target for AbbVie is $166.14. The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.48%. |
22805.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St rises on robust earnings, Disney hits five-month high | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-robust-earnings-disney-hits-five-month-high | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Disney jumps on Q1 beat, layoff plans
PepsiCo gains on quarterly profit, sales beat
Salesforce rises on reports Third Point owns stake
U.S. weekly jobless claims increase
Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11%
Updates prices, details
By Johann M Cherian and Ankika Biswas
Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path.
Disney Co DIS.N gained 3% to its highest level since late August after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs.
Fellow Dow component Salesforce IncCRM.N added 3% as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company.
Investor sentiment was further boosted after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data comes on the heels of a strong January employment report that rattled markets last week.
"This is a definite sign that weakness in the labor market is coming despite the huge job number last week," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"There are so many companies that are laying off people...if this trend continues and inflation continues to head downwards, then the Fed's tune will change and a pause is not that far away."
Traders are betting that the central bank will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
At 10:11 a.m. ET, the Dow Jones Industrial Average .DJI was up 242.31 points, or 0.71%, at 34,191.32, the S&P 500 .SPX was up 29.97 points, or 0.73%, at 4,147.83, and the Nasdaq Composite .IXIC was up 131.96 points, or 1.11%, at 12,042.48.
All the major S&P 500 sectors were higher, with technology .SPLRCT jumping 1.7%.
Megacap stocks including Meta Platforms META.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O climbed in the range of 1.1% to 4.8% as U.S. Treasury yields extended declines. US/
Stocks have enjoyed an upbeat start to the year on hopes that the Fed would abandon its hawkish rhetoric and pilot the economy to a soft landing.
PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations.
Ralph Lauren CorpRL.N gained 3% after beating quarterly sales expectations, while peer Tapestry IncTPR.N soared 5% on a strong annual profit forecast.
The consumer discretionary sector .SPLRCD housing the luxury names added 1.7%.
Of more than half of the S&P 500 companies that have reported fourth-quarter earnings so far, 69% have topped estimates, as per Refinitiv data.
Cardiovascular Systems Inc (CSI) CSII.O soared 48.1% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million.
Advancing issues outnumbered decliners by a 3.03-to-1 ratio on the NYSE and by a 2.17-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and one new low, while the Nasdaq recorded 49 new highs and 20 new lows.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations. Disney Co DIS.N gained 3% to its highest level since late August after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs. Fellow Dow component Salesforce IncCRM.N added 3% as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company. | PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations. Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11% Updates prices, details By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path. Ralph Lauren CorpRL.N gained 3% after beating quarterly sales expectations, while peer Tapestry IncTPR.N soared 5% on a strong annual profit forecast. | PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations. Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11% Updates prices, details By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path. Fellow Dow component Salesforce IncCRM.N added 3% as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company. | PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations. Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11% Updates prices, details By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path. The data comes on the heels of a strong January employment report that rattled markets last week. |
22806.0 | 2023-02-09 00:00:00 UTC | AbbVie (ABBV) Q4 Earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q4-earnings-beat-estimates | nan | nan | AbbVie (ABBV) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.54 per share. This compares to earnings of $3.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 1.69%. A quarter ago, it was expected that this drugmaker would post earnings of $3.56 per share when it actually produced earnings of $3.66, delivering a surprise of 2.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $15.12 billion for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.52%. This compares to year-ago revenues of $14.89 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AbbVie shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 7.3%.
What's Next for AbbVie?
While AbbVie has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AbbVie: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3 on $13.26 billion in revenues for the coming quarter and $11.50 on $53.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Ligand Pharmaceuticals (LGND), another stock in the broader Zacks Medical sector, has yet to report results for the quarter ended December 2022. The results are expected to be released on February 22.
This drugmaker is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of -31.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ligand Pharmaceuticals' revenues are expected to be $40.49 million, down 44.1% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.54 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $15.12 billion for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.52%. AbbVie shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 7.3%. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $15.12 billion for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.52%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.54 per share. | AbbVie (ABBV) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.54 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $15.12 billion for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.52%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $15.12 billion for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.52%. AbbVie (ABBV) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.54 per share. AbbVie shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 7.3%. |
22807.0 | 2023-02-09 00:00:00 UTC | AbbVie's 2023 profit forecast misses as Humira faces heat from rivals | ABBV | https://www.nasdaq.com/articles/abbvies-2023-profit-forecast-misses-as-humira-faces-heat-from-rivals-0 | nan | nan | Adds shares
Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year.
The company said it expected adjusted profit in the range of $10.70 to $11.10 per share for the full year, compared with analysts' average estimate of $11.65, according to Refinitiv IBES data.
Shares of the company were flat at $144.61 in choppy premarket trading.
AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. Amgen Inc AMGN.Orecently launched Amjevita, the first such competition for Humira in the U.S., at a 5% and 55% discount to the drug's monthly price of $6,922.
At least seven other Humira biosimilars are expected this summer and could debut with discounted list prices.
In the fourth quarter, Humira sales dropped 26.5% to $573 million in international markets such as Europe, where it already faces competition from multiple cheaper versions.
Overall, Humira sales rose 4.6% to $5.58 billion, in line with estimates, lifted by growth in the U.S. market.
In 2020, Abbvie sought to pre-empt the so-called "sales cliff" from Humira patent expiry through its $63-billion deal to buy Botox-maker Allergan.
Botox sales for cosmetic applications were up 2.6% at $642 million in the last three months of 2020, beating estimates of $629 million.
The drugmaker has also been hoping that newer immunology drugs Skyrizi and Rinvoq can help replace the lost revenue from Humira.
Skyrizi sales of $1.58 billion beat estimates of $1.52 billion, while Rinvoq missed with $770 million in sales compared with expectations of $816.14 million.
Excluding items, AbbVie earned $3.60 per share in the fourth quarter, beating analysts' average estimates of $3.56 per share.
(Reporting by Mariam E Sunny and Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds shares Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. In 2020, Abbvie sought to pre-empt the so-called "sales cliff" from Humira patent expiry through its $63-billion deal to buy Botox-maker Allergan. | Adds shares Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. Excluding items, AbbVie earned $3.60 per share in the fourth quarter, beating analysts' average estimates of $3.56 per share. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. | Adds shares Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. In 2020, Abbvie sought to pre-empt the so-called "sales cliff" from Humira patent expiry through its $63-billion deal to buy Botox-maker Allergan. | Adds shares Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. In 2020, Abbvie sought to pre-empt the so-called "sales cliff" from Humira patent expiry through its $63-billion deal to buy Botox-maker Allergan. |
22808.0 | 2023-02-09 00:00:00 UTC | AbbVie Q4 22 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q4-22-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 9, 2023, to discuss Q4 22 earnings results.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 9, 2023, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 9, 2023, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 9, 2023, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 9, 2023, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
22809.0 | 2023-02-09 00:00:00 UTC | AbbVie Q4 Profit Decreases, but beats estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q4-profit-decreases-but-beats-estimates | nan | nan | (RTTNews) - AbbVie (ABBV) announced a profit for fourth quarter that decreased from the same period last year but beat the Street estimates.
The company's earnings totaled $2.47 billion, or $1.38 per share. This compares with $4.04 billion, or $2.26 per share, in last year's fourth quarter.
Excluding items, AbbVie reported adjusted earnings of $6.42 billion or $3.60 per share for the period.
Analysts on average had expected the company to earn $3.56 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 1.5% to $15.12 billion from $14.89 billion last year.
AbbVie earnings at a glance (GAAP) :
-Earnings (Q4): $2.47 Bln. vs. $4.04 Bln. last year. -EPS (Q4): $1.38 vs. $2.26 last year. -Analyst Estimates: $3.56 -Revenue (Q4): $15.12 Bln vs. $14.89 Bln last year.
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 a profit for fourth quarter that decreased from the same period last year but beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.42 billion or $3.60 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $2.47 Bln. | Excluding items, AbbVie reported adjusted earnings of $6.42 billion or $3.60 per share for the period. (RTTNews) - AbbVie (ABBV) announced a profit for fourth quarter that decreased from the same period last year but beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $2.47 Bln. | (RTTNews) - AbbVie (ABBV) announced a profit for fourth quarter that decreased from the same period last year but beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.42 billion or $3.60 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $2.47 Bln. | Excluding items, AbbVie reported adjusted earnings of $6.42 billion or $3.60 per share for the period. (RTTNews) - AbbVie (ABBV) announced a profit for fourth quarter that decreased from the same period last year but beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $2.47 Bln. |
22810.0 | 2023-02-09 00:00:00 UTC | AbbVie's 2023 profit forecast misses as Humira faces heat from rivals | ABBV | https://www.nasdaq.com/articles/abbvies-2023-profit-forecast-misses-as-humira-faces-heat-from-rivals | nan | nan | Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year.
The company said it expected adjusted profit in the range of $10.70 to $11.10 per share for the full year, compared with analysts' average estimate of $11.65, according to Refinitiv IBES data.
AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. Amgen Inc AMGN.Orecently launched Amjevita, the first such competition for Humira in the U.S., at a 5% and 55% discount to the drug's monthly price of $6,922.
At least seven other Humira biosimilars are expected this summer and could debut with discounted list prices.
Sales of the drug, AbbVie's growth driver for years, could decline by as much as 50% once more rivals gain health insurance coverage.
In the fourth quarter, Humira sales dropped 26.5% to $573 million in international markets such as Europe, where it already faces competition from multiple cheaper versions.
Overall, Humira sales rose 4.6% to $5.58 billion, in line with estimates, lifted by growth in the U.S. market.
In 2020, Abbvie sought to pre-empt the so-called "sales cliff" from Humira patent expiry through its $63-billion deal to buy Botox-maker Allergan.
Botox sales for cosmetic applications were up 2.6% at $642 million in the last three months of 2020, beating estimates of $629 million.
The drugmaker has also been hoping that newer immunology drugs Skyrizi and Rinvoq can help replace the lost revenue from Humira.
Skyrizi sales of $1.58 billion beat estimates of $1.52 billion, while Rinvoq missed with $770 million in sales compared with expectations of $816.14 million.
Excluding items, AbbVie earned $3.60 per share in the fourth quarter, beating analysts' average estimates of $3.56 per share.
(Reporting by Mariam E Sunny and Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. Sales of the drug, AbbVie's growth driver for years, could decline by as much as 50% once more rivals gain health insurance coverage. | Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. Excluding items, AbbVie earned $3.60 per share in the fourth quarter, beating analysts' average estimates of $3.56 per share. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. | Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. Sales of the drug, AbbVie's growth driver for years, could decline by as much as 50% once more rivals gain health insurance coverage. | AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections. Feb 9 (Reuters) - AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year. Sales of the drug, AbbVie's growth driver for years, could decline by as much as 50% once more rivals gain health insurance coverage. |
22811.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Futures rise on earnings optimism, Disney climbs on revamp plan | ABBV | https://www.nasdaq.com/articles/us-stocks-futures-rise-on-earnings-optimism-disney-climbs-on-revamp-plan | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.75%, S&P 0.90%, Nasdaq 1.30%
Feb 9 (Reuters) - U.S. stock index futures rose on Thursday as a slew of strong quarterly earnings lifted sentiment after worries that the Federal Reserve will keep interest rates higher for longer had fueled losses on Wall Street a day earlier.
Walt Disney Co DIS.N climbed 6.6% in premarket trading after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs and make its streaming business profitable.
Casino stocks Wynn Resorts WYNN.O and MGM Resorts International MGM.N gained about 5% each after reporting fourth-quarter results, with Wynn indicating a meaningful return of visitation and demand in Macau during the recent Chinese New Year holiday period.
PepsiCo Inc PEP.O rose 1.4% as the soda maker reported better-than-expected results for its fourth quarter.
Tobacco firm Philip Morris International Inc PM.N, drugmaker Abbvie Inc ABBV.N, apparel maker Ralph Lauren Corp RL.N and cereal maker Kellogg Co K.N are all set to report earnings during the day.
Of more than half of the S&P 500 companies that have reported fourth-quarter results so far, 69% have topped analysts' earnings estimates, as per Refinitiv IBES data. In a typical quarter 66% top estimates.
U.S. stock indexes have enjoyed an upbeat start to the year, largely driven by hopes that the Federal Reserve is nearing the end of its interest rate-hike cycle and data signaling resilience in the economy.
However, equity markets have wavered in the recent days as Fed officials acknowledged the cooling in U.S. inflation but said that more interest rate rises are in the cards amid evidence of a still-strong labor market.
Data at 8:30 a.m. ET is expected to show the number of Americans filing for unemployment benefits rose to 190,00 in the week ended Feb. 4, after an increase of 183,00 in the previous week.
Megacap stocks including Meta Platforms META.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Google-parent Alphabet GOOGL.O climbed in the range of 1% to 2% as U.S. Treasury yields extended declines. US/
At 5:55 a.m. ET, Dow e-minis 1YMcv1 were up 254 points, or 0.75%, S&P 500 e-minis EScv1 were up 37.25 points, or 0.9%, and Nasdaq 100 e-minis NQcv1 were up 162.5 points, or 1.3%.
Tesla Inc TSLA.O firmed 3.7% as a U.S. safety board said it found no evidence a Tesla Model S was operating on Autopilot during an April 2021 fatal crash.
Salesforce Inc CRM.N edged 1.6% higher as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company.
(Reporting by Sruthi Shankar, Medha Singh and Johann M Cherian in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Tobacco firm Philip Morris International Inc PM.N, drugmaker Abbvie Inc ABBV.N, apparel maker Ralph Lauren Corp RL.N and cereal maker Kellogg Co K.N are all set to report earnings during the day. Walt Disney Co DIS.N climbed 6.6% in premarket trading after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs and make its streaming business profitable. U.S. stock indexes have enjoyed an upbeat start to the year, largely driven by hopes that the Federal Reserve is nearing the end of its interest rate-hike cycle and data signaling resilience in the economy. | Tobacco firm Philip Morris International Inc PM.N, drugmaker Abbvie Inc ABBV.N, apparel maker Ralph Lauren Corp RL.N and cereal maker Kellogg Co K.N are all set to report earnings during the day. Futures up: Dow 0.75%, S&P 0.90%, Nasdaq 1.30% Feb 9 (Reuters) - U.S. stock index futures rose on Thursday as a slew of strong quarterly earnings lifted sentiment after worries that the Federal Reserve will keep interest rates higher for longer had fueled losses on Wall Street a day earlier. Casino stocks Wynn Resorts WYNN.O and MGM Resorts International MGM.N gained about 5% each after reporting fourth-quarter results, with Wynn indicating a meaningful return of visitation and demand in Macau during the recent Chinese New Year holiday period. | Tobacco firm Philip Morris International Inc PM.N, drugmaker Abbvie Inc ABBV.N, apparel maker Ralph Lauren Corp RL.N and cereal maker Kellogg Co K.N are all set to report earnings during the day. Futures up: Dow 0.75%, S&P 0.90%, Nasdaq 1.30% Feb 9 (Reuters) - U.S. stock index futures rose on Thursday as a slew of strong quarterly earnings lifted sentiment after worries that the Federal Reserve will keep interest rates higher for longer had fueled losses on Wall Street a day earlier. Casino stocks Wynn Resorts WYNN.O and MGM Resorts International MGM.N gained about 5% each after reporting fourth-quarter results, with Wynn indicating a meaningful return of visitation and demand in Macau during the recent Chinese New Year holiday period. | Tobacco firm Philip Morris International Inc PM.N, drugmaker Abbvie Inc ABBV.N, apparel maker Ralph Lauren Corp RL.N and cereal maker Kellogg Co K.N are all set to report earnings during the day. PepsiCo Inc PEP.O rose 1.4% as the soda maker reported better-than-expected results for its fourth quarter. Of more than half of the S&P 500 companies that have reported fourth-quarter results so far, 69% have topped analysts' earnings estimates, as per Refinitiv IBES data. |
22812.0 | 2023-02-09 00:00:00 UTC | Do Humira Biosimilars Threaten AbbVie's Dividend? | ABBV | https://www.nasdaq.com/articles/do-humira-biosimilars-threaten-abbvies-dividend | nan | nan | Pharmaceutical giant AbbVie (NYSE: ABBV) is known for its top-selling drug Humira and its lucrative dividend that yields more than 4% at the current share price. This week Humira, which treats autoimmune diseases, is facing the first of a flood of biosimilar generics hitting the market at lower prices.
Humira is a longtime blockbuster that has generated billions in profits for AbbVie, so it's fair to wonder how competition will impact AbbVie's bottom line. More specifically, will the company's beloved dividend come under pressure if profits fall?
Answering these questions will require understanding the foundation of AbbVie's dividend payout and what other products might help make up for the potential drop in Humira sales.
Humira is a big piece of the puzzle
Humira's strong performance helped grow the company over the years; it made $12.5 billion in sales in 2014, approximately 62% of AbbVie's total revenue that year. Sales rose to $19.1 billion in 2019, 57% of total revenue.
Knowing Humira would eventually face generic competition, management acquired Allergan in 2020 to diversify its business. Humira's 2021 sales were $20.7 billion, a more minor (but still significant) 37% of AbbVie's total sales.
ABBV revenue (TTM) data by YCharts. TTM = trailing 12 months.
AbbVie generated nearly $22 billion in free cash flow over the past year on $57.8 billion in sales, converting about 39% of its revenue to cash profits. Given Humira's contribution to sales, I'll hypothetically assume that Humira contributes the same ratio to free cash flow (meaning AbbVie's margins are the same across products). In other words, Humira is bringing in roughly $8.1 billion in cash for the company.
Stress-testing the dividend
Nobody might know how Humira's new generic competition will impact sales for a few years. The U.S. healthcare system is notoriously complex, with multiple layers of players in how pharmaceuticals make their way to patients.
A news report on Amgen's biosimilar, the first to launch in the United States, noted that it would come in two pricing tiers: one at just a 5% discount to Humira and another that was about half the price but would be less favored by pharmacy benefit managers (PBMs), who influence insurance coverage.
However, we can look at the dividend and stress-test the payout using some scenarios. Below you'll see that AbbVie's dividend costs the company nearly $10 billion annually, a payout ratio of 45%.
ABBV cash dividend payout ratio data by YCharts.
An analyst from SVB estimated that Humira's 2023 sales could still hit $14.5 billion this year. Assuming the company's 39% free-cash-flow conversion rate, the resulting $5.6 billion in cash profits would be a $2.5 billion reduction from what Humira did in 2021. Even if Humira's sales went to zero, Humira's remaining $13.9 billion in profits would cover the payout. However, it would be much tighter than it is today.
Nine generic biosimilars are scheduled to hit the market in 2023, which could mean that Humira's sales will fade over the next several years. But AbbVie is not standing pat; the company has gone on the offensive to backfill those lost sales as much as possible.
Rise of Rinvoq and Skyrizi
Humira treats a broad range of inflammatory health conditions across rheumatology (inflammation of bones, joints, and internal organs), dermatology (skin), and gastroenterology (digestive system).
AbbVie brought two new immunology drugs to market in 2019, Rinvoq and Skyrizi. You can see below how these drugs overlap with many of the same conditions Humira treats and expands treatment to new ones.
This could help AbbVie retain some of Humira's lost sales with new revenue from these drugs. Management believes sales for the two drugs could reach $17.5 billion by 2025 and $21 billion by 2027.
Image source: AbbVie.
All of this sits within the immunology portion of AbbVie's portfolio; it doesn't factor in potential growth from the Botox brand acquired with Allergan or AbbVie's incoming pipeline of some oncology products with high potential.
Thanks to a conservative dividend payout ratio, Skyrizi and Rinvoq, and AbbVie's strong pipeline outside of immunology, the company's dividend seems dependable. Investors should feel confident holding AbbVie as a long-term investment until the numbers say otherwise.
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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. | Pharmaceutical giant AbbVie (NYSE: ABBV) is known for its top-selling drug Humira and its lucrative dividend that yields more than 4% at the current share price. Answering these questions will require understanding the foundation of AbbVie's dividend payout and what other products might help make up for the potential drop in Humira sales. Humira is a longtime blockbuster that has generated billions in profits for AbbVie, so it's fair to wonder how competition will impact AbbVie's bottom line. | Given Humira's contribution to sales, I'll hypothetically assume that Humira contributes the same ratio to free cash flow (meaning AbbVie's margins are the same across products). ABBV cash dividend payout ratio data by YCharts. Thanks to a conservative dividend payout ratio, Skyrizi and Rinvoq, and AbbVie's strong pipeline outside of immunology, the company's dividend seems dependable. | Humira is a big piece of the puzzle Humira's strong performance helped grow the company over the years; it made $12.5 billion in sales in 2014, approximately 62% of AbbVie's total revenue that year. Humira's 2021 sales were $20.7 billion, a more minor (but still significant) 37% of AbbVie's total sales. Given Humira's contribution to sales, I'll hypothetically assume that Humira contributes the same ratio to free cash flow (meaning AbbVie's margins are the same across products). | AbbVie generated nearly $22 billion in free cash flow over the past year on $57.8 billion in sales, converting about 39% of its revenue to cash profits. ABBV cash dividend payout ratio data by YCharts. This could help AbbVie retain some of Humira's lost sales with new revenue from these drugs. |
22813.0 | 2023-02-08 00:00:00 UTC | Vanguard Russell 1000 Growth ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/vanguard-russell-1000-growth-etf-experiences-big-inflow | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $519.8 million dollar inflow -- that's a 5.0% increase week over week in outstanding units (from 166,631,844 to 175,031,844). Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Broadcom Inc (Symbol: AVGO) is off about 0.8%, and Home Depot Inc (Symbol: HD) is lower by about 0.9%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average:
Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $61.58. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Broadcom Inc (Symbol: AVGO) is off about 0.8%, and Home Depot Inc (Symbol: HD) is lower by about 0.9%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Broadcom Inc (Symbol: AVGO) is off about 0.8%, and Home Depot Inc (Symbol: HD) is lower by about 0.9%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $61.58. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Broadcom Inc (Symbol: AVGO) is off about 0.8%, and Home Depot Inc (Symbol: HD) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $519.8 million dollar inflow -- that's a 5.0% increase week over week in outstanding units (from 166,631,844 to 175,031,844). For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $61.58. | Among the largest underlying components of VONG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.5%, Broadcom Inc (Symbol: AVGO) is off about 0.8%, and Home Depot Inc (Symbol: HD) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $519.8 million dollar inflow -- that's a 5.0% increase week over week in outstanding units (from 166,631,844 to 175,031,844). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
22814.0 | 2023-02-08 00:00:00 UTC | Noteworthy Wednesday Option Activity: GPRE, ABBV, K | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-gpre-abbv-k | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Green Plains Inc. (Symbol: GPRE), where a total of 4,115 contracts have traded so far, representing approximately 411,500 underlying shares. That amounts to about 48.2% of GPRE's average daily trading volume over the past month of 853,145 shares. Particularly high volume was seen for the $30 strike call option expiring February 17, 2023, with 1,001 contracts trading so far today, representing approximately 100,100 underlying shares of GPRE. Below is a chart showing GPRE's trailing twelve month trading history, with the $30 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 29,070 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 47.7% of ABBV's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $149 strike call option expiring February 24, 2023, with 1,638 contracts trading so far today, representing approximately 163,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $149 strike highlighted in orange:
And Kellogg Co (Symbol: K) options are showing a volume of 9,579 contracts thus far today. That number of contracts represents approximately 957,900 underlying shares, working out to a sizeable 47.2% of K's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $65 strike put option expiring February 17, 2023, with 2,966 contracts trading so far today, representing approximately 296,600 underlying shares of K. Below is a chart showing K's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for GPRE options, ABBV options, or K 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. | Especially high volume was seen for the $149 strike call option expiring February 24, 2023, with 1,638 contracts trading so far today, representing approximately 163,800 underlying shares of ABBV. Below is a chart showing GPRE's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 29,070 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 47.7% of ABBV's average daily trading volume over the past month, of 6.1 million shares. | Below is a chart showing GPRE's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 29,070 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 47.7% of ABBV's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $149 strike call option expiring February 24, 2023, with 1,638 contracts trading so far today, representing approximately 163,800 underlying shares of ABBV. | Especially high volume was seen for the $65 strike put option expiring February 17, 2023, with 2,966 contracts trading so far today, representing approximately 296,600 underlying shares of K. Below is a chart showing K's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for GPRE options, ABBV options, or K options, visit StockOptionsChannel.com. Below is a chart showing GPRE's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 29,070 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 47.7% of ABBV's average daily trading volume over the past month, of 6.1 million shares. | Especially high volume was seen for the $65 strike put option expiring February 17, 2023, with 2,966 contracts trading so far today, representing approximately 296,600 underlying shares of K. Below is a chart showing K's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for GPRE options, ABBV options, or K options, visit StockOptionsChannel.com. Below is a chart showing GPRE's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 29,070 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 47.7% of ABBV's average daily trading volume over the past month, of 6.1 million shares. |
22815.0 | 2023-02-08 00:00:00 UTC | Pre-Market Earnings Report for February 9, 2023 : ABBV, PEP, AZN, PM, SPGI, DUK, BN, TRI, APO, HLT, TU, WTW | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-9-2023-%3A-abbv-pep-azn-pm-spgi-duk-bn-tri-apo-hlt-0 | nan | nan | The following companies are expected to report earnings prior to market open on 02/09/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.54. This value represents a 6.95% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.81%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80.
Pepsico, Inc. (PEP)is reporting for the quarter ending December 31, 2022. The beverages company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.64. This value represents a 7.19% increase compared to the same quarter last year. In the past year PEP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PEP is 25.38 vs. an industry ratio of -2.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Astrazeneca PLC (AZN)is reporting for the quarter ending December 31, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.68. This value represents a 19.05% decrease compared to the same quarter last year. In the past year AZN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.09%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AZN is 19.48 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Philip Morris International Inc (PM)is reporting for the quarter ending December 31, 2022. The tobacco company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.29. This value represents a 4.44% decrease compared to the same quarter last year. In the past year PM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 10.87%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PM is 17.59 vs. an industry ratio of 8.40, implying that they will have a higher earnings growth than their competitors in the same industry.
S&P Global Inc. (SPGI)is reporting for the quarter ending December 31, 2022. The business info service company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.47. This value represents a 21.59% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SPGI is 33.43 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Duke Energy Corporation (DUK)is reporting for the quarter ending December 31, 2022. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.06. This value represents a 12.77% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DUK is 19.09 vs. an industry ratio of 6.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Brookfield Corporation (BN)is reporting for the quarter ending December 31, 2022. The real estate company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.81. This value represents a 22.73% increase compared to the same quarter last year. In the past year BN and beat the expectations the other two quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BN is 12.37 vs. an industry ratio of -12.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Thomson Reuters Corp (TRI)is reporting for the quarter ending December 31, 2022. The technology services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.64. This value represents a 48.84% increase compared to the same quarter last year. TRI missed the consensus earnings per share in the 4th calendar quarter of 2021 by -6.52%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TRI is 47.72 vs. an industry ratio of -3.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Apollo Global Management, Inc. (New) (APO)is reporting for the quarter ending December 31, 2022. The finance/investment management company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.43. This value represents a 36.19% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for APO is 14.58 vs. an industry ratio of 12.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Hilton Worldwide Holdings Inc. (HLT)is reporting for the quarter ending December 31, 2022. The hotel company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.20. This value represents a 66.67% increase compared to the same quarter last year. In the past year HLT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for HLT is 32.86 vs. an industry ratio of 30.50, implying that they will have a higher earnings growth than their competitors in the same industry.
TELUS Corporation (TU)is reporting for the quarter ending December 31, 2022. The diversified company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.21. This value represents a 16.67% increase compared to the same quarter last year. TU missed the consensus earnings per share in the 4th calendar quarter of 2021 by -10%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TU is 22.78 vs. an industry ratio of 15.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Willis Towers Watson Public Limited Company (WTW)is reporting for the quarter ending December 31, 2022. The insurance brokers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $6.29. This value represents a 10.93% increase compared to the same quarter last year. In the past year WTW has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for WTW is 19.08 vs. an industry ratio of 22.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. |
22816.0 | 2023-02-08 00:00:00 UTC | Is Invesco Dynamic Pharmaceuticals ETF (PJP) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-invesco-dynamic-pharmaceuticals-etf-pjp-a-strong-etf-right-now-6 | nan | nan | Designed to provide broad exposure to the Health Care ETFs category of the market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund launched on 06/23/2005.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, PJP has amassed assets over $326.09 million, making it one of the average sized ETFs in the Health Care ETFs. Before fees and expenses, PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for PJP are 0.56%, which makes it on par with most peer products in the space.
PJP's 12-month trailing dividend yield is 0.95%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 100% of the portfolio.
When you look at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of the fund's total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV).
PJP's top 10 holdings account for about 60.62% of its total assets under management.
Performance and Risk
The ETF has lost about -0.50% so far this year and is up roughly 2.70% in the last one year (as of 02/08/2023). In the past 52-week period, it has traded between $69.08 and $83.54.
The ETF has a beta of 0.67 and standard deviation of 22.29% for the trailing three-year period, making it a high risk choice in the space. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index and the VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index. IShares U.S. Pharmaceuticals ETF has $420.26 million in assets, VanEck Pharmaceutical ETF has $465.04 million. IHE has an expense ratio of 0.39% and PPH charges 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
Pfizer Inc. (PFE) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : 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. | When you look at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of the fund's total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. 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 Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. When you look at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of the fund's total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Designed to provide broad exposure to the Health Care ETFs category of the market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund launched on 06/23/2005. | Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. When you look at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of the fund's total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Designed to provide broad exposure to the Health Care ETFs category of the market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund launched on 06/23/2005. | When you look at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of the fund's total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Health Care ETFs category of the market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund launched on 06/23/2005. |
22817.0 | 2023-02-08 00:00:00 UTC | Pre-Market Earnings Report for February 9, 2023 : ABBV, PEP, AZN, PM, SPGI, DUK, BN, TRI, APO, HLT, TU, WTW | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-9-2023-%3A-abbv-pep-azn-pm-spgi-duk-bn-tri-apo-hlt | nan | nan | The following companies are expected to report earnings prior to market open on 02/09/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.54. This value represents a 6.95% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.81%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80.
Pepsico, Inc. (PEP)is reporting for the quarter ending December 31, 2022. The beverages company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.64. This value represents a 7.19% increase compared to the same quarter last year. In the past year PEP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PEP is 25.38 vs. an industry ratio of -2.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Astrazeneca PLC (AZN)is reporting for the quarter ending December 31, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.68. This value represents a 19.05% decrease compared to the same quarter last year. In the past year AZN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.09%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AZN is 19.48 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Philip Morris International Inc (PM)is reporting for the quarter ending December 31, 2022. The tobacco company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.29. This value represents a 4.44% decrease compared to the same quarter last year. In the past year PM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 10.87%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PM is 17.59 vs. an industry ratio of 8.40, implying that they will have a higher earnings growth than their competitors in the same industry.
S&P Global Inc. (SPGI)is reporting for the quarter ending December 31, 2022. The business info service company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.47. This value represents a 21.59% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SPGI is 33.43 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Duke Energy Corporation (DUK)is reporting for the quarter ending December 31, 2022. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.06. This value represents a 12.77% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DUK is 19.09 vs. an industry ratio of 6.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Brookfield Corporation (BN)is reporting for the quarter ending December 31, 2022. The real estate company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.81. This value represents a 22.73% increase compared to the same quarter last year. In the past year BN and beat the expectations the other two quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BN is 12.37 vs. an industry ratio of -12.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Thomson Reuters Corp (TRI)is reporting for the quarter ending December 31, 2022. The technology services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.64. This value represents a 48.84% increase compared to the same quarter last year. TRI missed the consensus earnings per share in the 4th calendar quarter of 2021 by -6.52%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TRI is 47.72 vs. an industry ratio of -3.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Apollo Global Management, Inc. (New) (APO)is reporting for the quarter ending December 31, 2022. The finance/investment management company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.43. This value represents a 36.19% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for APO is 14.58 vs. an industry ratio of 12.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Hilton Worldwide Holdings Inc. (HLT)is reporting for the quarter ending December 31, 2022. The hotel company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.20. This value represents a 66.67% increase compared to the same quarter last year. In the past year HLT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for HLT is 32.86 vs. an industry ratio of 30.50, implying that they will have a higher earnings growth than their competitors in the same industry.
TELUS Corporation (TU)is reporting for the quarter ending December 31, 2022. The diversified company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.21. This value represents a 16.67% increase compared to the same quarter last year. TU missed the consensus earnings per share in the 4th calendar quarter of 2021 by -10%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TU is 22.78 vs. an industry ratio of 15.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Willis Towers Watson Public Limited Company (WTW)is reporting for the quarter ending December 31, 2022. The insurance brokers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $6.29. This value represents a 10.93% increase compared to the same quarter last year. In the past year WTW has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for WTW is 19.08 vs. an industry ratio of 22.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.47 vs. an industry ratio of 16.80. |
22818.0 | 2023-02-07 00:00:00 UTC | Will AbbVie's (ABBV) New Drugs Continue to Drive Q4 Earnings? | ABBV | https://www.nasdaq.com/articles/will-abbvies-abbv-new-drugs-continue-to-drive-q4-earnings | nan | nan | AbbVie’s ABBV fourth-quarter revenues are likely to be driven by revenues generated from the sales of its immunology and neuroscience products.
Around half of the company’s revenues is expected to be generated from its immunology franchise, consisting of three blockbuster drugs — Humira, Rinvoq and Skyrizi. Humira, which is also AbbVie’s flagship product, accounts for more than one-third of the company’s total revenues. We expect the company’s flagship drug Humira to register strong growth in the United States, which is more than likely to offset the downward trend in the drug’s international sales due to generic erosion.
However, AbbVie will face generic competition for Humira in the United States this year following the loss of exclusivity. Last week, Amgen announced the launch of Amjevita in the United States, the first company to launch a biosimilar of Humira in the country. In fact, many other companies have also developed their own Humira biosimilars, which are expected to be launched at various times this year per agreements with AbbVie. These launches are likely to lead to a significant decline in Humira sales in subsequent quarters.
The Zacks Consensus Estimate for U.S. sales of Humira is pegged at $5.58 billion, while that for international sales is $539 million. Our model estimates Humira U.S. sales to stand at $5.54 billion, while ex-U.S. sales are expected at around $564 million.
AbbVie’s stock has gained 1.1% in the past year compared with the industry‘s 8.2% growth.
Image Source: Zacks Investment Research
The robust sequential revenue growth for newer immunology drugs — Skyrizi and Rinvoq — seen in the previous quarters is likely to have continued in the fourth quarter of 2022. The rise in sales is likely due to label expansions of both drugs to include new patient populations in the last few quarters. During the fourth quarter, Rinvoq received FDA approval for a sixth indication in active non-radiographic axial spondyloarthritis, while Skyrizi received label expansion in European Union for Crohn’s disease indication.
The Zacks Consensus Estimate for Rinvoq and Skyrizi sales in the fourth quarter is pegged at $868 million and $1.55 billion, respectively. Our model estimates Rinvoq and Skyrizi sales to be pegged at around $859 million and $1.47 billion, respectively.
Sales of the company’s neuroscience franchise are expected to have been driven by Vraylar and Botox. The new migraine drugs, Qulipta and Ubrelvy, are expected to generate additional sales. The Zacks Consensus Estimate for the neuroscience franchise stands at $1.90 billion, while our estimates for the franchise are pegged at $1.93 billion.
In the aesthetics franchise, we expect both Botox and Juvederm sales to continue to be hurt by economic pressure impacting consumers' discretionary spending. ABBV’s suspension of its aesthetics business operations in Russia has also affected its sales, as Russia is a key market for fillers. The Zacks Consensus Estimate and our model estimate for aesthetics product sales stand at $1.28 billion and $1.25 billion, respectively.
U.S. sales growth of key oncology medicine, Imbruvica — developed in partnership with J&J JNJ — is being hurt by increased competition from novel oral therapies. Per J&J’s fourth-quarter earnings, Imbruvica sales declined 18.5%. However, strong demand for the J&J-partnered drug in the international market is likely to have offset some of the decline in U.S. sales of the drug during the soon-to-be-reported quarter. The Zacks Consensus estimates and our model predict Imbruvica sales to be pegged at $1.12 billion.
We expect the sales of another oncology drug, Venclexta — developed in collaboration with Roche RHHBY — are likely to rise as new patient starts are expected to improve. The Zacks Consensus Estimate and our model estimates for the Roche-partnered drug are pegged at $529 million and $534 million, respectively.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Arcus Biosciences RCUS which sports a Zacks Rank #1 (Strong Buy) at present. You can the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for Arcus Biosciences’ 2023 loss per share have narrowed from $4.75 to $4.57. Shares of Arcus Biosciences have lost 30.4% in the year-to-date period.
Earnings of Arcus Biosciences beat estimates in two of the last four quarters missed the mark on one occasion and met the mark on another. On average, RCUS witnessed a trailing four-quarter positive earnings surprise of 56.74%, on average. In the last reported quarter, Arcus Biosciences’ earnings beat estimates by 14.29%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Roche Holding AG (RHHBY) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Arcus Biosciences, Inc. (RCUS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie’s ABBV fourth-quarter revenues are likely to be driven by revenues generated from the sales of its immunology and neuroscience products. Humira, which is also AbbVie’s flagship product, accounts for more than one-third of the company’s total revenues. However, AbbVie will face generic competition for Humira in the United States this year following the loss of exclusivity. | Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Arcus Biosciences, Inc. (RCUS) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie’s ABBV fourth-quarter revenues are likely to be driven by revenues generated from the sales of its immunology and neuroscience products. Humira, which is also AbbVie’s flagship product, accounts for more than one-third of the company’s total revenues. | Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Arcus Biosciences, Inc. (RCUS) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie’s ABBV fourth-quarter revenues are likely to be driven by revenues generated from the sales of its immunology and neuroscience products. Humira, which is also AbbVie’s flagship product, accounts for more than one-third of the company’s total revenues. | AbbVie’s ABBV fourth-quarter revenues are likely to be driven by revenues generated from the sales of its immunology and neuroscience products. Humira, which is also AbbVie’s flagship product, accounts for more than one-third of the company’s total revenues. However, AbbVie will face generic competition for Humira in the United States this year following the loss of exclusivity. |
22819.0 | 2023-02-07 00:00:00 UTC | 3 High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-buy-now-for-a-lifetime-of-passive-income | nan | nan | Would you like a stock portfolio that generates enough passive income to fuel your retirement dreams? If you answer yes, like most investors, you owe it to yourself to check out the healthcare sector.
In the U.S. alone, healthcare-related spending reached a stunning $4.3 trillion in 2021. Unlike most areas of the economy, healthcare services are a top priority in good economic times and bad. Such a motivated consumer base allows for plenty of businesses with reliably growing profits.
These three healthcare businesses offer above-average dividend yields at the moment, plus they have a history of raising their payouts. Here's why investors who buy them now could end up with a big passive income stream that continues growing for the rest of their lives.
1. Medtronic
Medtronic (NYSE: MDT) offers the lowest dividend yield on this list. At 3.1%, though, it's significantly higher than the average stock in the S&P 500 index, which currently offers a 1.7% yield.
With over $30 billion in annual sales, Medtronic sells more medical devices than any other company on Earth. It manufactures run-of-the-mill items you can find in almost any hospital room. The company also leverages its status as a one-stop shop for healthcare professionals to promote innovative new products.
Around 40 years ago, Medtronic launched the MiniMed insulin pump. Recently, it took a step toward the multibillion-dollar U.S. market for minimally invasive surgical procedures. A clinical trial with its robotic-assisted surgery system, called Hugo, began in the U.S. last December.
Consistently launching innovative new devices has served Medtronic's investors well. The company recently declared its 45th consecutive annual dividend raise. Investors who buy the stock now will most likely see the 3.1% yield they receive continue rising long enough to fuel their retirement dreams.
2. AbbVie
AbbVie (NYSE: ABBV) is a giant drugmaker that spun out from the healthcare conglomerate, Abbott Laboratories, in 2013. Abbott wanted to protect itself from the loss of patent-protected exclusivity for Humira that's happening in the U.S. right now. In January, Amgen launched a biosimilar version called Amjevita that's available at a list price that's 55% below Humira's list price.
U.S. Humira revenues reached $4.97 billion in the third quarter of 2022, and this figure could get cut in half this year. This is why shares of AbbVie offer a 4.1% yield that is more than twice the average yield for dividend-paying stocks in the S&P 500 index.
Before you let Humira's demise frighten you away from this high-yield stock, the company made some smart investments with the immense cash flows it provided. For example, Rinvoq for arthritis and Skyrizi for psoriasis are drugs that AbbVie launched in 2019, and they're already on pace to generate more than $17.5 billion in combined annual sales for AbbVie in 2025.
AbbVie's highly profitable operation produced a whopping $21.9 billion in free cash flow over the past 12 months, and the company needed just 45% of this sum to meet its dividend commitment. With younger products to offset Humira losses, continuing its 10-year streak of annual dividend raises should be a breeze.
3. Medical Properties Trust
As its name implies, Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT). As such, it can avoid paying income taxes, so long as it distributes at least 90% of profits to shareholders as a dividend. At the moment, its dividend offers a mouthwatering 9.1% yield.
Medical Properties Trust is one of the largest owners of hospitals and acute care facilities on the planet, which is a great business to be in. Spending on hospital care services in the U.S. rose 4.4% in 2021 to reach $1.3 trillion.
Medical Properties Trust has raised its dividend payout every year for 10 consecutive years. It's hyper-reliable because instead of running the hospitals it owns, it gets hospital operators to sign long-term leases.
Inflation isn't much of an issue for this stock because annual rent escalators are already built into its long-term lease agreements. The net leases that Medical Properties Trust prefers also transfer responsibility for all the variable costs of building ownership, such as maintenance and property taxes, to its tenants. With hyper-reliable cash flows, this could be the best healthcare dividend stock on the planet.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's highly profitable operation produced a whopping $21.9 billion in free cash flow over the past 12 months, and the company needed just 45% of this sum to meet its dividend commitment. AbbVie AbbVie (NYSE: ABBV) is a giant drugmaker that spun out from the healthcare conglomerate, Abbott Laboratories, in 2013. This is why shares of AbbVie offer a 4.1% yield that is more than twice the average yield for dividend-paying stocks in the S&P 500 index. | AbbVie AbbVie (NYSE: ABBV) is a giant drugmaker that spun out from the healthcare conglomerate, Abbott Laboratories, in 2013. This is why shares of AbbVie offer a 4.1% yield that is more than twice the average yield for dividend-paying stocks in the S&P 500 index. For example, Rinvoq for arthritis and Skyrizi for psoriasis are drugs that AbbVie launched in 2019, and they're already on pace to generate more than $17.5 billion in combined annual sales for AbbVie in 2025. | This is why shares of AbbVie offer a 4.1% yield that is more than twice the average yield for dividend-paying stocks in the S&P 500 index. AbbVie AbbVie (NYSE: ABBV) is a giant drugmaker that spun out from the healthcare conglomerate, Abbott Laboratories, in 2013. For example, Rinvoq for arthritis and Skyrizi for psoriasis are drugs that AbbVie launched in 2019, and they're already on pace to generate more than $17.5 billion in combined annual sales for AbbVie in 2025. | AbbVie AbbVie (NYSE: ABBV) is a giant drugmaker that spun out from the healthcare conglomerate, Abbott Laboratories, in 2013. This is why shares of AbbVie offer a 4.1% yield that is more than twice the average yield for dividend-paying stocks in the S&P 500 index. For example, Rinvoq for arthritis and Skyrizi for psoriasis are drugs that AbbVie launched in 2019, and they're already on pace to generate more than $17.5 billion in combined annual sales for AbbVie in 2025. |
22820.0 | 2023-02-06 00:00:00 UTC | US STOCKS-Wall St edges lower on Fed fears; Tyson Foods slides | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-edges-lower-on-fed-fears-tyson-foods-slides | nan | nan | By Shubham Batra and Johann M Cherian
Feb 6 (Reuters) - U.S. stock indexes edged lower on Monday with Tyson Foods falling on disappointing quarterly results, while investors reassessed their predictions on when the U.S. Federal Reserve would start cutting rates.
The report on Friday that showed the U.S. economy added jobs at a rapid pace spooked investors.
"Markets are looking ahead to a slower start ... today is a bit of a rethink on when the Fed might have to cut rates," Art Hogan, chief market strategist at B. Riley Financial said.
"The consensus had been firmly in the camp of the fourth quarter of this year, but with the red hot jobs number there is a bit of a second guessing."
Traders will scrutinize speeches by Fed officials this week, including Chair Jerome Powell, for any change in the central bank's dovish rhetoric after data last week showed services activity were strong in January.
Yield on the 10-year U.S. Treasury note US10YT=RR extended gains to more than a month's high. US/
Money market participants see the Fed's terminal rate to settle above 5% by May followed by rate cuts in September. 0#FEDWATCH
After being bruised in 2022, U.S. equities have recovered strongly in 2023, led by megacap growth stocks amid hopes that the Fed will temper its aggressive rate hikes, which in turn could alleviate some pressure on equity valuations.
Tyson Foods Inc TSN.N slipped 5.8% on missing analysts' estimates for quarterly revenue and profit.
More than 69% of the S&P 500 firms have reported results above expectations, according to Refinitiv. Overall, analysts still expect quarterly earnings of S&P 500 firms declining 2.8%.
Meanwhile, Tesla Inc TSLA.O bucked the overall trend with a 1.3% gain after a U.S. jury on Friday found Chief Executive Elon Musk and his company were when Musk tweeted in 2018 that he had "funding secured" to take the electric-vehicle maker private.
At 10:24 a.m. ET, the Dow Jones Industrial Average .DJI was down 179.60 points, or 0.53%, at 33,746.41, the S&P 500 .SPX was down 33.71 points, or 0.81%, at 4,102.77, and the Nasdaq Composite .IXIC was down 125.32 points, or 1.04%, at 11,881.64.
All of the 11 major S&P 500 indexes were in the red with the real-estate sector .SPLRCR slumping 1.5%.
Miner Newmont CorpNEM.N slid 4.5% on its $16.9 billion offer for Australian peer Newcrest Mining Ltd NCM.AX to build a global gold behemoth. The materials sector .SPLRCM dropped 1.4%.
U.S.-listed Chinese stocks such as Pinduoduo Inc PDD.O and Baidu Inc BIDU.O slid 4.9% and 3.0%, respectively, on geopolitical concerns after a U.S. military fighter jet shot down a suspected Chinese spy balloon off the coast of South Carolina on Saturday.
Traders will await earnings reports from Walt Disney Co DIS.N, PepsiCo Inc PEP.O and Abbvie Inc ABBV.N this week.
Declining issues outnumbered advancers for a 4.53-to-1 ratio on the NYSE and a 2.03-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and one new low, while the Nasdaq recorded 43 new highs and 12 new lows.
(Reporting by Shubham Batra and Johann M Cherian in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)
((Shubham.Batra@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. | Traders will await earnings reports from Walt Disney Co DIS.N, PepsiCo Inc PEP.O and Abbvie Inc ABBV.N this week. By Shubham Batra and Johann M Cherian Feb 6 (Reuters) - U.S. stock indexes edged lower on Monday with Tyson Foods falling on disappointing quarterly results, while investors reassessed their predictions on when the U.S. Federal Reserve would start cutting rates. "The consensus had been firmly in the camp of the fourth quarter of this year, but with the red hot jobs number there is a bit of a second guessing." | Traders will await earnings reports from Walt Disney Co DIS.N, PepsiCo Inc PEP.O and Abbvie Inc ABBV.N this week. By Shubham Batra and Johann M Cherian Feb 6 (Reuters) - U.S. stock indexes edged lower on Monday with Tyson Foods falling on disappointing quarterly results, while investors reassessed their predictions on when the U.S. Federal Reserve would start cutting rates. Overall, analysts still expect quarterly earnings of S&P 500 firms declining 2.8%. | Traders will await earnings reports from Walt Disney Co DIS.N, PepsiCo Inc PEP.O and Abbvie Inc ABBV.N this week. By Shubham Batra and Johann M Cherian Feb 6 (Reuters) - U.S. stock indexes edged lower on Monday with Tyson Foods falling on disappointing quarterly results, while investors reassessed their predictions on when the U.S. Federal Reserve would start cutting rates. The S&P index recorded two new 52-week highs and one new low, while the Nasdaq recorded 43 new highs and 12 new lows. | Traders will await earnings reports from Walt Disney Co DIS.N, PepsiCo Inc PEP.O and Abbvie Inc ABBV.N this week. By Shubham Batra and Johann M Cherian Feb 6 (Reuters) - U.S. stock indexes edged lower on Monday with Tyson Foods falling on disappointing quarterly results, while investors reassessed their predictions on when the U.S. Federal Reserve would start cutting rates. US/ Money market participants see the Fed's terminal rate to settle above 5% by May followed by rate cuts in September. |
22821.0 | 2023-02-06 00:00:00 UTC | AbbVie (ABBV) to Report Q4 Earnings: What's in the Cards? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-to-report-q4-earnings%3A-whats-in-the-cards | nan | nan | AbbVie ABBV will report fourth-quarter and full-year 2022 results on Feb 9, before market open. In the last reported quarter, the company delivered an earnings surprise of 2.81%.
This large drugmaker’s performance has been pretty impressive, with its earnings beating estimates in each of the trailing four quarters. The company has a four-quarter earnings surprise of 1.39%, on average.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
AbbVie’s stock has increased 7.7% so far this year compared to the industry’s 1.9% growth.
Image Source: Zacks Investment Research
Factors to Consider
Strong demand for immunology and neuroscience products is expected to drive AbbVie’s fourth-quarter 2022 sales. Sales from these two portfolios generate more than half of the company’s total revenues. In addition, the company’s new drug launches in the past few quarters are likely to have generated additional sales in the fourth quarter. However, currency headwinds are likely to have hurt sales.
AbbVie’s immunology portfolio has been witnessing a strong surge in demand. We expect the company’s flagship drug Humira to register strong growth in the United States, which is more than likely to offset the downward trend in the drug’s international sales due to generic erosion. The Zacks Consensus Estimate and our model estimate for Humira are pegged at $5.58 billion and $5.54 billion, respectively.
On theearnings call investors’ focus will likely be on AbbVie’s strategies around Humira following its potential loss of exclusivity in the United States, the impact of which will be seen in sales figures of first-quarter 2023. Last week, Amgen announced the launch of Amjevita, the first U.S. biosimilar to Humira. In fact, many other companies have also developed their own Humira biosimilars which are expected to be launched throughout this year. The impact of these biosimilars on Humira sales will be seen in subsequent quarters.
The company’s new immunology drugs, Skyrizi and Rinvoq, registered strong growth in the past few quarters. The drugs contributed more than $5.3 billion in combined sales in the first nine months of 2022. The rise in sales is due to label expansions of both drugs to include new patient populations in the last few quarters. Sales of the two drugs are expected to have remained strong during the fourth quarter. During the fourth quarter, Rinvoq received FDA approval for a sixth indication in active non-radiographic axial spondyloarthritis, while Skyrizi received label expansions in European Union for Crohn’s disease indication. The Zacks Consensus Estimate for Rinvoq and Skyrizi sales in the fourth quarter are pegged at $868 million and $1.55 billion, respectively.
AbbVie markets Imbruvica in partnership with Johnson & Johnson JNJ and Venclexta in partnership with Roche RHHBY. We expect JNJ-partnered Imbruvica sales to decline due to novel oral therapies hurting the drug’s sales, while Roche-partnered Venclexta sales are likely to rise as new patient starts are expected to improve. Both the Zacks Consensus Estimate and our model estimates for the J&J-partnered drug are pegged at $1.12 billion. For the Roche-partnered drug, the Zacks Consensus Estimate and our model estimates stand at $529 million and $534 million, respectively.
In the aesthetics franchise, we expect both Botox and Juvederm sales to fall as economic pressure is impacting consumers' discretionary spending. ABBV’s suspension of its aesthetics business operations in Russia has also affected the company’s sales, as Russia is a key market for fillers. The Zacks Consensus Estimate and our model estimate for aesthetics product sales stand at $1.28 billion and $1.25 billion, respectively.
Sales of the neuroscience franchise have shown strong growth in recent quarters, with additional sales generated by the recently approved migraine drugs Ubrelvy and Qulipta. The trend is expected to have continued for the franchise in the soon-to-be-reported quarter. The Zacks Consensus Estimate and our model estimate suggest neuroscience product sales at $1.90 billion and $1.93 billion, respectively.
Investor focus is also expected to be on the rising competition for other drugs, including Imbruvica, on theearnings call They are also likely to ask for updates on management’s financial guidance for 2023.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both stands at $3.54 per share.
Zacks Rank: AbbVie currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here is a large drug stock that has the right combination of elements to beat on earnings this time around:
Bayer BAYRY has an Earnings ESP of +6.70% and a Zacks Rank #3. You can the complete list of today’s Zacks #1 Rank stocks here.
Bayer’s stock has risen 0.7% this year so far. Bayer beat earnings estimates in three of the last four quarters while missing the mark on one occasion. Bayer has a four-quarter earnings surprise of 18.23%, on average. BAYRY is scheduled to release its fourth-quarter 2022 results on Feb 28.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
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Roche Holding AG (RHHBY) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research Factors to Consider Strong demand for immunology and neuroscience products is expected to drive AbbVie’s fourth-quarter 2022 sales. On theearnings call investors’ focus will likely be on AbbVie’s strategies around Humira following its potential loss of exclusivity in the United States, the impact of which will be seen in sales figures of first-quarter 2023. AbbVie ABBV will report fourth-quarter and full-year 2022 results on Feb 9, before market open. | AbbVie markets Imbruvica in partnership with Johnson & Johnson JNJ and Venclexta in partnership with Roche RHHBY. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV will report fourth-quarter and full-year 2022 results on Feb 9, before market open. | Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV will report fourth-quarter and full-year 2022 results on Feb 9, before market open. AbbVie Inc. Price and EPS Surprise AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote AbbVie’s stock has increased 7.7% so far this year compared to the industry’s 1.9% growth. | AbbVie ABBV will report fourth-quarter and full-year 2022 results on Feb 9, before market open. AbbVie Inc. Price and EPS Surprise AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote AbbVie’s stock has increased 7.7% so far this year compared to the industry’s 1.9% growth. Image Source: Zacks Investment Research Factors to Consider Strong demand for immunology and neuroscience products is expected to drive AbbVie’s fourth-quarter 2022 sales. |
22822.0 | 2023-02-06 00:00:00 UTC | 3 Top-Ranked Dividend Stocks: A Smarter Way to Boost Your Retirement Income | ABBV | https://www.nasdaq.com/articles/3-top-ranked-dividend-stocks%3A-a-smarter-way-to-boost-your-retirement-income-52 | nan | nan | Believe it or not, seniors fear running out of cash more than they fear dying.
And older Americans have legitimate reasons for this worry, even if they have dutifully saved for their golden years. That's because the traditional ways people manage retirement may no longer provide enough income to meet expenses - and with people generally living longer, the principal retirement savings is exhausted far too early in the retirement period.
In today's economic environment, traditional income investments are not working.
For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements.
That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million.
Today's retirees are getting hit hard by reduced bond yields - and the Social Security picture isn't too rosy either. Right now and for the near future, Social Security benefits are still being paid, but it has been estimated that the Social Security funds will be depleted as soon as 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend growth. Many stocks increase dividends over time, helping to offset the effects of inflation.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.08%. This compares to the Large Cap Pharmaceuticals industry's yield of 2.41% and the S&P 500's yield of 1.58%. The company's annualized dividend growth in the past year was 8.46%. Check AbbVie (ABBV) dividend history here>>>
Alliance Resource Partners, L.P. (ARLP) is paying out a dividend of $0.7 per share at the moment, with a dividend yield of 8.96% compared to the Coal industry's yield of 0.32% and the S&P 500's yield. The annualized dividend growth of the company was 150% over the past year. Check Alliance Resource Partners, L.P. (ARLP) dividend history here>>>
Currently paying a dividend of $0.42 per share, Citizens Financial Group (CFG) has a dividend yield of 3.78%. This is compared to the Financial - Savings and Loan industry's yield of 2.69% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 7.69%. Check Citizens Financial Group (CFG) dividend history here>>>
But aren't stocks generally more risky than bonds?
Yes, that's true. As a broad category, bonds carry less risk than stocks. However, the stocks we are talking about - dividend -paying stocks from high-quality companies - can generate income over time and also mitigate the overall volatility of your portfolio compared to the stock market as a whole.
An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're interested in investing in dividends, but are thinking about mutual funds or ETFs rather than stocks, beware of fees. Mutual funds and specialized ETFs may carry high fees, which could lower the overall gains you earn from dividends, undercutting your dividend income strategy. Be sure to look for funds with low fees if you decide on this approach.
Bottom Line
Whether you select high-quality, low-fee funds or stocks, seeking the steady income of dividend-paying equities can potentially offer you a path to a better and more stress-free retirement.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report
Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.08%. Check AbbVie (ABBV) dividend history here>>> Alliance Resource Partners, L.P. (ARLP) is paying out a dividend of $0.7 per share at the moment, with a dividend yield of 8.96% compared to the Coal industry's yield of 0.32% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.08%. Check AbbVie (ABBV) dividend history here>>> Alliance Resource Partners, L.P. (ARLP) is paying out a dividend of $0.7 per share at the moment, with a dividend yield of 8.96% compared to the Coal industry's yield of 0.32% and the S&P 500's yield. | Check AbbVie (ABBV) dividend history here>>> Alliance Resource Partners, L.P. (ARLP) is paying out a dividend of $0.7 per share at the moment, with a dividend yield of 8.96% compared to the Coal industry's yield of 0.32% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.08%. | AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.08%. Check AbbVie (ABBV) dividend history here>>> Alliance Resource Partners, L.P. (ARLP) is paying out a dividend of $0.7 per share at the moment, with a dividend yield of 8.96% compared to the Coal industry's yield of 0.32% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22823.0 | 2023-02-06 00:00:00 UTC | Abbvie plans to lift $2 billion cap on deals - WSJ | ABBV | https://www.nasdaq.com/articles/abbvie-plans-to-lift-%242-billion-cap-on-deals-wsj | nan | nan | Feb 6 (Reuters) - Abbvie ABBV.N will lift a self-imposed $2 billion limit on acquisitions and mergers placed following a $63 billion deal for Botox maker Allergan in 2020 that shot up its debt, the company's chief executive officer told the Wall Street Journal.
Chief Executive Officer Richard Gonzalez said the company now has the capacity "to do more", in an interview with WSJ that was published on Monday.
The comments come at a time when the drugmaker is beginning to face U.S. competition for its blockbuster rheumatoid arthritis drug, Humira, a major revenue driver for years.
The company did not immediately respond to a Reuters request for comment.
Abbvie is hoping to replace the loss of revenue from Humira through its newer immunology drugs Skyrizi and Rinvoqn, and has forecast sales of over $21 billion from the two products in 2027.
FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high
(Reporting by Nandhini Srinivasan in Bengaluru; Editing by Shinjini Ganguli)
((Nandhini.Srinivasan@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 is hoping to replace the loss of revenue from Humira through its newer immunology drugs Skyrizi and Rinvoqn, and has forecast sales of over $21 billion from the two products in 2027. Feb 6 (Reuters) - Abbvie ABBV.N will lift a self-imposed $2 billion limit on acquisitions and mergers placed following a $63 billion deal for Botox maker Allergan in 2020 that shot up its debt, the company's chief executive officer told the Wall Street Journal. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Nandhini Srinivasan in Bengaluru; Editing by Shinjini Ganguli) ((Nandhini.Srinivasan@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. | Feb 6 (Reuters) - Abbvie ABBV.N will lift a self-imposed $2 billion limit on acquisitions and mergers placed following a $63 billion deal for Botox maker Allergan in 2020 that shot up its debt, the company's chief executive officer told the Wall Street Journal. Abbvie is hoping to replace the loss of revenue from Humira through its newer immunology drugs Skyrizi and Rinvoqn, and has forecast sales of over $21 billion from the two products in 2027. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Nandhini Srinivasan in Bengaluru; Editing by Shinjini Ganguli) ((Nandhini.Srinivasan@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. | Feb 6 (Reuters) - Abbvie ABBV.N will lift a self-imposed $2 billion limit on acquisitions and mergers placed following a $63 billion deal for Botox maker Allergan in 2020 that shot up its debt, the company's chief executive officer told the Wall Street Journal. Abbvie is hoping to replace the loss of revenue from Humira through its newer immunology drugs Skyrizi and Rinvoqn, and has forecast sales of over $21 billion from the two products in 2027. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Nandhini Srinivasan in Bengaluru; Editing by Shinjini Ganguli) ((Nandhini.Srinivasan@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. | Feb 6 (Reuters) - Abbvie ABBV.N will lift a self-imposed $2 billion limit on acquisitions and mergers placed following a $63 billion deal for Botox maker Allergan in 2020 that shot up its debt, the company's chief executive officer told the Wall Street Journal. Abbvie is hoping to replace the loss of revenue from Humira through its newer immunology drugs Skyrizi and Rinvoqn, and has forecast sales of over $21 billion from the two products in 2027. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Nandhini Srinivasan in Bengaluru; Editing by Shinjini Ganguli) ((Nandhini.Srinivasan@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. |
22824.0 | 2023-02-04 00:00:00 UTC | 2 Stocks Down More Than 6% to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-stocks-down-more-than-6-to-buy-right-now | nan | nan | The three major stock indexes all rose in January as many stocks soared. In fact, some of last year's biggest-losing stocks rebounded in the first month of 2023. But not every stock has taken part in this rally. In fact, two stocks that outperformed the S&P 500 last year are now down more than 6% since the start of the year: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV)..
But this isn't a sign that you should flee these healthcare giants. Motley Fool contributors Adria Cimino and Keith Speights talk about why these two stocks actually make great buys right now.
J&J's problems are temporary
Adria Cimino (Johnson & Johnson): J&J may have disappointed investors when it reported fourth-quarter earnings on Jan. 24. The company's revenue fell due to lower coronavirus vaccine sales and foreign currency headwinds, but these two problems are temporary. In upcoming quarters, J&J's revenue won't be compared to a period with high vaccine revenue. And currencies fluctuate, meaning they eventually may move in J&J's favor.
Now let's look at the long-term picture. J&J has grown revenue over time and has a broad portfolio of blockbuster products, such as immunology drugs Stelara and Tremfya. Sales of both climbed last year. J&J also has more than 100 candidates in the pipeline to support future growth.
The stock is down almost 7% so far this year, but it may have a great positive catalyst ahead. J&J is spinning off its slowest-growing business -- consumer health -- into a new entity called Kenvue this year. Consumer health revenue rose 3.9% last year on an adjusted operational basis. That's compared to growth of more than 6% for J&J's pharmaceutical and medtech businesses. So, this new structure should help lift J&J's overall growth.
It's important to remember J&J is also likely to serve investors well when it comes to dividends. The company is a Dividend King, meaning it's lifted its dividend every year for at least 50 years. This shows that sharing its successes with investors is a priority for the company. There's no reason to believe it won't continue along this path.
At this point, you might ask: What does an investor have to pay for all of this? Not much. J&J trades for about 15 times earnings estimates. That's a steal considering the company's track record, growth potential post-spinoff, and status as a top dividend stock.
Don't worry about Humira
Keith Speights (AbbVie): AbbVie trounced the market last year with a 19% gain. It's a different story in 2023, though. The big pharma stock is down more than 10% while the S&P 500 is on a roll.
What happened? Humira stands out as one likely culprit. AbbVie's top-selling drug now faces biosimilar competition in the U.S. for the first time ever. It's a foregone conclusion that AbbVie's sales and profits will decline sharply this year.
However, investors have known about the loss of U.S. exclusivity for a long time. While I suspect some are giving up on AbbVie because of this, there could be an even bigger factor at play behind the stock's year-to-date drop. AbbVie is a safe haven stock, of sorts and with the overall stock market rising, investors appear to again be shifting money to more aggressive growth stocks.
Regardless of why AbbVie's share price has fallen, I think the stock is still a great long-term pick. The company already has two successors to Humira on the market. These newer drugs plus other products in AbbVie's lineup should pave the way for a return to growth beginning in 2024.
AbbVie's valuation is attractive, with shares trading below 13 times expected earnings. We can't leave out that juicy dividend, either. The company's dividend yield currently tops 4%. AbbVie is a Dividend King with 51 consecutive years of dividend increases.
My view is that the current pullback presents a great opportunity for patient investors to buy AbbVie.
When will J&J and AbbVie rebound?
It's too early to predict whether J&J and AbbVie will outperform the general market again this year. Declines so far may have been due to some investors locking in profits. And, in the coming weeks, it's possible investors will favor stocks that dropped last year -- and are ripe for a rebound.
But none of this changes the bright future picture for both of these stocks -- or the fact that their valuations are compelling. And that's why now is a great time to get in on these top pharmaceutical companies.
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Adria Cimino has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. 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. | In fact, two stocks that outperformed the S&P 500 last year are now down more than 6% since the start of the year: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).. Don't worry about Humira Keith Speights (AbbVie): AbbVie trounced the market last year with a 19% gain. AbbVie's top-selling drug now faces biosimilar competition in the U.S. for the first time ever. | Don't worry about Humira Keith Speights (AbbVie): AbbVie trounced the market last year with a 19% gain. In fact, two stocks that outperformed the S&P 500 last year are now down more than 6% since the start of the year: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).. AbbVie's top-selling drug now faces biosimilar competition in the U.S. for the first time ever. | In fact, two stocks that outperformed the S&P 500 last year are now down more than 6% since the start of the year: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).. AbbVie is a safe haven stock, of sorts and with the overall stock market rising, investors appear to again be shifting money to more aggressive growth stocks. Don't worry about Humira Keith Speights (AbbVie): AbbVie trounced the market last year with a 19% gain. | In fact, two stocks that outperformed the S&P 500 last year are now down more than 6% since the start of the year: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).. Don't worry about Humira Keith Speights (AbbVie): AbbVie trounced the market last year with a 19% gain. AbbVie's top-selling drug now faces biosimilar competition in the U.S. for the first time ever. |
22825.0 | 2023-02-04 00:00:00 UTC | 3 Unstoppable Dividend Stocks to Buy in February | ABBV | https://www.nasdaq.com/articles/3-unstoppable-dividend-stocks-to-buy-in-february | nan | nan | Will the stock market rise or fall in 2023? Income investors can win either way. Any time is a good time to buy solid dividend stocks.
We asked three Motley Fool contributors to identify unstoppable dividend stocks to buy in February. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ).
Even a bad year in 2022 can't stop Abbott's dividend hikes
David Jagielski (Abbott Laboratories): One dividend stock that should be attractive to long-term investors is Abbott Laboratories. The company's versatility and broad business make it a strong dividend investment to own. Abbott's most recent quarterly results are an excellent example of that.
For the period ending Dec. 31, 2022, the healthcare company's quarterly net sales totaled $10 billion and were down 12%. And that was with some significant declines in COVID-19 testing as diagnostic revenue was down 26% from the prior-year period, while nutritional revenue fell by 11%. But better performances in Abbott's medical-device and pharmaceutical segments helped offset some of those lackluster numbers.
Abbott's diluted earnings per share (EPS) plunged 47% year over year to $0.59. But when factoring out one-time items, the company's adjusted per-share profit was $1.03, suggesting there was plenty of noise on Abbott's most recent financials. Despite manufacturing disruptions impacting its baby formula sales, costs related to recalls, restructuring charges, and other nonrecurring expenses, the company is still coming off a profitable quarter. The great thing for dividend investors is that despite so much adversity, Abbott can still post a strong profit margin of over 10%.
Confident in its financials, the company also increased its quarterly dividend last year by 8.5%. That means Abbott has now raised its dividend for 51 straight years. Although its yield may look underwhelming at just 1.9%, for long-term investors, it's likely that the payouts will continue growing in the years ahead.
The past year was a brutal one for Abbott and yet the company's full-year EPS was still far above what it is paying out annually in dividends per share right now ($3.91 vs $2.04). The company's payout ratio is relatively low. With a robust and diversified business, Abbott makes for an unstoppable income investment to buy and hold for the long haul.
Five decades of dividend increases and counting
Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. And thus, AbbVie entered year 51 in its streak of consecutive years of dividend hikes when including its time as a division of the company previously mentioned -- Abbott. This stellar record makes AbbVie a Dividend King. Investors have every reason to think its future could look much like its past.
AbbVie markets a long list of medicines in various therapeutic areas. The company generates consistent revenue and earnings thanks to its lineup. With a rich pipeline that boasts dozens of products, AbbVie routinely adds brand-new products or earns label expansions for existing ones.
It is true that the company now faces the impact of the loss of exclusivity of its longtime best-selling product, rheumatoid arthritis medicine Humira. But AbbVie planned ahead and seems more than capable of eventually putting this issue in the rearview mirror.
The company's other immunology products, Skyrizi and Rinvoq, its Botox franchise, migraine treatment Qulipta, and cancer medicine Venclexta will help smooth out the losses caused by biosimilar competition to Humira. And although AbbVie expects a relatively short period of declining revenue, growth should pick up once its business adjusts.
In the meantime, AbbVie will likely continue to reward shareholders with dividend increases. The company has prioritized dividend payments since it became a stand-alone company in 2013, increasing its payouts by 270% since then. AbbVie won't risk losing its status as a Dividend King. That's why AbbVie remains a top pick for dividend investors to buy this month and beyond.
Add another king to your hand
Keith Speights (Johnson & Johnson): Like Abbott and AbbVie, Johnson & Johnson belongs to the elite group of stocks known as Dividend Kings. The healthcare giant has increased its dividend for an impressive 60 consecutive years.
After beating the S&P 500 last year, Johnson & Johnson is off to a relatively bad start in 2023. The company's shares have tumbled around 6% despite reporting better-than-expected fourth-quarter results in late January.
I think, though, that J&J has what it takes to rebound over the near term. Year-over-year comparisons due to declining sales of the company's COVID-19 vaccine should become less problematic as time goes by. Johnson & Johnson's business could also be helped if inflation moderates further.
The biggest milestone to look forward to this year, however, is J&J's upcoming spin-off of its consumer health unit. This divestiture will leave the company with its faster-growing pharmaceutical and medtech businesses.
Over the long term, I expect that Johnson & Johnson will continue to be what it's been for decades -- a reliable winner. Look for the company to keep its streak of dividend increases going for years to come as well.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Five decades of dividend increases and counting Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. And thus, AbbVie entered year 51 in its streak of consecutive years of dividend hikes when including its time as a division of the company previously mentioned -- Abbott. | Five decades of dividend increases and counting Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. Add another king to your hand Keith Speights (Johnson & Johnson): Like Abbott and AbbVie, Johnson & Johnson belongs to the elite group of stocks known as Dividend Kings. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). | Five decades of dividend increases and counting Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. Add another king to your hand Keith Speights (Johnson & Johnson): Like Abbott and AbbVie, Johnson & Johnson belongs to the elite group of stocks known as Dividend Kings. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Five decades of dividend increases and counting Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. And thus, AbbVie entered year 51 in its streak of consecutive years of dividend hikes when including its time as a division of the company previously mentioned -- Abbott. |
22826.0 | 2023-02-03 00:00:00 UTC | AbbVie Q4 Preview: What's in Store? | ABBV | https://www.nasdaq.com/articles/abbvie-q4-preview%3A-whats-in-store | nan | nan | It’s that time of the year – earnings season.
Earnings season is undoubtedly the most critical period for stocks as companies finally unveil what’s transpired behind closed doors.
So far, we’ve received a surplus of quarterly results, including those from technology titans Apple AAPL, Alphabet GOOGL, and Microsoft MSFT.
Now, a big-time player in the Zacks Medical sector, AbbVie ABBV, is slated to unveil its quarterly results on Thursday, February 9th, before market open.
AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health.
How does the company currently stack up? We can use quarterly results from a few peers, Eli Lilly LLY and Merck & Co. MRK, as a small gauge. Let’s take a closer look.
Eli Lilly Q4
Eli Lilly’s Q4 results were released on February 2nd. LLY reported earnings of $2.09 per share, handily surpassing the $1.83 Zacks Consensus EPS Estimate by roughly 14%.
Quarterly revenue totaled $7.3 billion, marginally falling short of expectations and decreasing nearly 9% from year-ago quarterly sales of $8 billion. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the company’s revenue generated from its COVID-19 antibodies took a sizable hit as the pandemic slowly fades, reported at $38 million and falling 96% year-over-year.
Several large-cap pharmaceutical companies benefitted significantly from their COVID-19 treatments and products, and now we’re seeing this trend reverse.
Merck & Co. Q4
Merck posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate by roughly 4% and reporting earnings of $1.62 per share.
The company generated approximately $13.8 billion in sales, again exceeding our consensus sales estimate modestly and growing 2.2% year-over-year.
Image Source: Zacks Investment Research
In addition, the company provided guidance for FY23; Merck now expects worldwide sales of $57.2 billion – $58.7 billion and full-year GAAP EPS in a range of $5.86 per share – $6.01 per share.
AbbVie
Quarterly Estimates –
Analysts have been bearish in their earnings outlooks, with four negative earnings estimate revisions hitting the tape over the last several months. Still, the Zacks Consensus EPS Estimate of $3.54 suggests an improvement of nearly 7% year-over-year.
Image Source: Zacks Investment Research
The company’s top line is also estimated to expand, with our consensus sales estimate of $15.4 billion indicating an uptick of 3% from year-ago quarterly sales of $14.9 billion.
Quarterly Performance –
The company has put in a mixed earnings performance, exceeding bottom line estimates in five consecutive quarters but falling short of sales expectations in each instance.
In AbbVie’s latest print, the company delivered a 3% EPS surprise and reported sales roughly 0.8% below expectations.
Image Source: Zacks Investment Research
Valuation –
ABBV shares currently trade at a 12.4X forward earnings multiple, above the 9.5X five-year median by a fair margin and nearly in line with 2022 highs.
Image Source: Zacks Investment Research
Further, ABBV’s forward price-to-sales works out to be 4.8X, again above the 3.7X five-year median and the Zacks Medical sector average.
Image Source: Zacks Investment Research
ABBV carries a Style Score of “B” for Value.
Putting Everything Together
As the critically-important earnings season continues to roll on, investors have been met with quarterly results that have helped keep the market afloat. Needless to say, the so-called earnings apocalypse has yet to materialize.
Next week, AbbVie ABBV is slated to unveil its quarterly results on Thursday, February 9th, before market open. We’ve already received quarterly results from a few peers, including Eli Lilly LLY and Merck & Co. MRK.
Analysts have lowered their earnings outlooks for AbbVie’s quarter to be reported, with estimates indicating Y/Y increases in earnings and revenue.
In addition, the company’s forward price-to-sales and forward earnings multiple reside well above their respective five-year medians.
Heading into the release, AbbVie is currently a Zacks Rank #3 (Hold).
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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 enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. Image Source: Zacks Investment Research Valuation – ABBV shares currently trade at a 12.4X forward earnings multiple, above the 9.5X five-year median by a fair margin and nearly in line with 2022 highs. Now, a big-time player in the Zacks Medical sector, AbbVie ABBV, is slated to unveil its quarterly results on Thursday, February 9th, before market open. | Now, a big-time player in the Zacks Medical sector, AbbVie ABBV, is slated to unveil its quarterly results on Thursday, February 9th, before market open. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Now, a big-time player in the Zacks Medical sector, AbbVie ABBV, is slated to unveil its quarterly results on Thursday, February 9th, before market open. AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | Now, a big-time player in the Zacks Medical sector, AbbVie ABBV, is slated to unveil its quarterly results on Thursday, February 9th, before market open. AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. AbbVie Quarterly Estimates – Analysts have been bearish in their earnings outlooks, with four negative earnings estimate revisions hitting the tape over the last several months. |
22827.0 | 2023-02-03 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-3 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drugmaker have returned -11.4%, compared to the Zacks S&P 500 composite's +9% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 7.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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 $3.54 per share, indicating a change of +7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
The consensus earnings estimate of $13.75 for the current fiscal year indicates a year-over-year change of +8.3%. This estimate has changed -0.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.50 indicates a change of -16.3% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $15.35 billion for the current quarter points to a year-over-year change of +3.2%. The $58.29 billion and $53.58 billion estimates for the current and next fiscal years indicate changes of +3.7% and -8.1%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $3.66 for the same period compares with $3.33 a year ago.
Compared to the Zacks Consensus Estimate of $14.92 billion, the reported revenues represent a surprise of -0.74%. The EPS surprise was +2.81%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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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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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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. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 7.2%. | Last Reported Results and Surprise History AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. 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 7.2%. | 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 7.2%. | 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 7.2%. |
22828.0 | 2023-02-03 00:00:00 UTC | 2 Steady Stocks to Buy in a Recession | ABBV | https://www.nasdaq.com/articles/2-steady-stocks-to-buy-in-a-recession | nan | nan | Many economic analysts continue to predict that a recession will hit the U.S. economy sometime in 2023. Equity markets already experienced a downturn last year due partly to economic troubles, so the possibility of a recession seems even more daunting than it otherwise would be. However, there are ways for investors to prepare.
Some corporations can perform relatively well if the economy sinks even further. Buying shares of such companies can help investors strengthen their portfolios and make them recession proof, so to speak. Let's look at two stocks to buy if a recession hits this year: AbbVie (NYSE: ABBV) and Incyte (NASDAQ: INCY).
1. AbbVie
AbbVie is one of the largest pharmaceutical companies in the world. It markets medicines in various areas, from immunology and oncology to neuroscience and aesthetics. Most of AbbVie's products are must-haves -- that is, patients won't be inclined to stop buying them even in a recession. That is especially the case for some of its most important products.
Going forward, AbbVie will be relying heavily on two immunology drugs, Skyrizi and Rinvoq. These two medicines are set to replace the drugmaker's longtime best-selling product, rheumatoid arthritis medicine Humira, which will start facing biosimilar competition this year. But Skyrizi and Rinvoq have earned plenty of indications that overlap with Humira's, and they will continue to do so.
The company projects that these two medicines will generate a combined $17.5 billion in sales by 2025 and $21 billion by 2027. We don't have the numbers for its full fiscal year 2022 yet, but in the first nine months of the year, Skyrizi racked up $3.6 billion in revenue, representing a 75.6% year-over-year increase, while Rinvoq's sales jumped by 54.5% year over year to $1.8 billion. Combined, the two generated about $5.4 billion in sales.
If AbbVie's predictions for these medicines are anywhere close to accurate, we can expect both to keep up their rapid sales growth for the next few years at the very least, and that's even if a recession hits. AbbVie does expect its sales to decline this year and the next as it absorbs the challenges to Humira. But growth should return in 2025 as AbbVie will likely continue earning new approvals and generating profits.
Plus, there's good reason to think that the company can maintain its stellar dividend track record. AbbVie is in the elite club of Dividend Kings, boasting 51 years of consecutive payout raises. Recession or not, the company won't be inclined to halt this habit. Consider that late last year the company instituted a 5% dividend raise that will kick in with its payout due on Feb. 15. The company did so knowing Humira's challenges were on the way and also fully aware of the state of the economy.
That shows management's confidence in the business. Investors can be equally confident that AbbVie can navigate the next recession better than most.
2. Incyte
Incyte is a drugmaker best known for its leading product, Jakafi. This medicine treats a type of bone marrow cancer called myelofibrosis; polycythemia vera, a blood-related cancer; and acute (and chronic) graft-versus-host disease, a condition that sometimes arises in patients following a stem-cell transplant.
Jakafi has been successful for Incyte and responsible for the bulk of the company's revenue and top-line growth for some time. In the third quarter, Incyte recorded $619.6 million in net product revenue from Jakafi, an increase of 13% year over year. In late 2021, Incyte earned approval for Opzelura, the topical formulation of Jakafi, as a treatment for atopic dermatitis (eczema).
And in July of last year, Opzelura earned a label expansion in treating vitiligo, an autoimmune disease that causes patients' skin patches to lose pigmentation. Opzelura became the first therapy approved in the U.S. for repigmentation in those with vitiligo. Jakafi and Opzelura should continue growing their sales for some years, especially the latter.
Jakafi will face a patent cliff at the end of 2028, but Opzelura will only do so in 2040. Incyte has also earned more approvals in recent years, including that of cancer medicine Pemazyre, which first earned the green light in the U.S. back in 2020. The company is running plenty more clinical trials, and it expects notable pipeline progress this year, including data readouts and new clinical trial initiations for key products.
While Incyte total revenue only increased by 1% year over year to $823.3 million in the third quarter, that was due to a combination of unusual factors that won't permanently harm its business, including unfavorable currency exchange dynamics and the drop in sales for Olumiant, which has been used in recent years as a COVID-19 treatment.
These short-term issues will do little to disrupt Incyte's robust operations in the long run. And importantly, the biotech company can likely deliver solid financial results even in a recession, making it a solid pick for investors worried about a potential upcoming downturn.
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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 predictions for these medicines are anywhere close to accurate, we can expect both to keep up their rapid sales growth for the next few years at the very least, and that's even if a recession hits. Let's look at two stocks to buy if a recession hits this year: AbbVie (NYSE: ABBV) and Incyte (NASDAQ: INCY). AbbVie AbbVie is one of the largest pharmaceutical companies in the world. | Let's look at two stocks to buy if a recession hits this year: AbbVie (NYSE: ABBV) and Incyte (NASDAQ: INCY). AbbVie AbbVie is one of the largest pharmaceutical companies in the world. Most of AbbVie's products are must-haves -- that is, patients won't be inclined to stop buying them even in a recession. | Let's look at two stocks to buy if a recession hits this year: AbbVie (NYSE: ABBV) and Incyte (NASDAQ: INCY). AbbVie AbbVie is one of the largest pharmaceutical companies in the world. Most of AbbVie's products are must-haves -- that is, patients won't be inclined to stop buying them even in a recession. | But growth should return in 2025 as AbbVie will likely continue earning new approvals and generating profits. Let's look at two stocks to buy if a recession hits this year: AbbVie (NYSE: ABBV) and Incyte (NASDAQ: INCY). AbbVie AbbVie is one of the largest pharmaceutical companies in the world. |
22829.0 | 2023-02-03 00:00:00 UTC | Is A Rise Imminent For Johnson & Johnson Stock After An 8% Fall In A Month? | ABBV | https://www.nasdaq.com/articles/is-a-rise-imminent-for-johnson-johnson-stock-after-an-8-fall-in-a-month | nan | nan | Johnson & Johnson stock (NYSE: JNJ) is down 8% in a month, underperforming the broader markets, with the S&P 500 index up 6%. In a recent development, a U.S. appeals court rejected J&J’s attempted use of Texas Two-Step bankruptcy strategy to offload nearly 40,000 lawsuits for its talc products. The company plans to challenge this recent ruling. J&J is currently in the process of separating its consumer health business. The recent decline can partly be attributed to the company’s mixed Q4 results. J&J reported total revenue of $23.7 billion, down 4% y-o-y, and below our forecast of $24.2 billion, partly due to forex headwinds. The company’s Covid-19 vaccine sales were down a significant 57%, while Remicade, which faces biosimilar competition, saw its sales drop 37% y-o-y. However, J&J’s earnings of $2.35 on a per-share and adjusted basis were comfortably above our estimate of $2.24 and reflected a 10% y-o-y growth. This can be attributed to the inclusion of the Covid-19 vaccine related and Consumer Healthcare business spinoff-related costs in the adjusted figure. Looking forward, the company has guided for mid-single-digit growth in sales and earnings for 2023. It expects revenue to be $97.4 billion and adjusted EPS to be $10.55, at the mid-point of the provided range.
Now that JNJ stock has seen an 8% fall in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a high chance of an increase in JNJ stock over the next month. A move of -8% in a month has occurred 63 times in the past ten years. Of those 63 instances, 48 resulted in JNJ stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 48 out of 63, or about a 76% chance of a rise in JNJ stock over the next month. See our analysis of Johnson & Johnson’s Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving -2.9% or more over five days, the stock rose on 60% of the occasions in the next five days.
After moving -5.2% or more over ten days, the stock rose on 66% of the occasions in the next ten days.
After moving -8.0% or more over a twenty-one-day period, the stock rose on 76% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in JNJ stock over the next five, ten, and twenty-one days.
Johnson & Johnson (JNJ) Return (Recent) Comparison With Peers
Five-Day Return: BMY highest at 0.4%; JNJ lowest at -2.9%
Ten-Day Return: BMY highest at 0.5%; JNJ lowest at -5.2%
Twenty-One Day Return: BMY highest at 0.8%; PFE lowest at -14.0%
While JNJ stock looks like it can see higher levels, 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 Vicor vs. Williams Sonoma.
With higher inflation and the Fed raising interest rates, among other factors, JNJ stock has fallen 4% in the last twelve months. 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 Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JNJ Return 0% -7% 42%
S&P 500 Return 0% 6% 82%
Trefis Multi-Strategy Portfolio 0% 12% 251%
[1] Month-to-date and year-to-date as of 2/1/2023
[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. | In a recent development, a U.S. appeals court rejected J&J’s attempted use of Texas Two-Step bankruptcy strategy to offload nearly 40,000 lawsuits for its talc products. Of those 63 instances, 48 resulted in JNJ stock rising over the subsequent one-month period (twenty-one trading days). With higher inflation and the Fed raising interest rates, among other factors, JNJ stock has fallen 4% in the last twelve months. | Of those 63 instances, 48 resulted in JNJ stock rising over the subsequent one-month period (twenty-one trading days). Johnson & Johnson (JNJ) Return (Recent) Comparison With Peers Five-Day Return: BMY highest at 0.4%; JNJ lowest at -2.9% Ten-Day Return: BMY highest at 0.5%; JNJ lowest at -5.2% Twenty-One Day Return: BMY highest at 0.8%; PFE lowest at -14.0% While JNJ stock looks like it can see higher levels, it is helpful to see how Johnson & Johnson’s Peers fare on metrics that matter. Total [2] JNJ Return 0% -7% 42% S&P 500 Return 0% 6% 82% Trefis Multi-Strategy Portfolio 0% 12% 251% [1] Month-to-date and year-to-date as of 2/1/2023 [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. | Johnson & Johnson stock (NYSE: JNJ) is down 8% in a month, underperforming the broader markets, with the S&P 500 index up 6%. Johnson & Johnson (JNJ) Return (Recent) Comparison With Peers Five-Day Return: BMY highest at 0.4%; JNJ lowest at -2.9% Ten-Day Return: BMY highest at 0.5%; JNJ lowest at -5.2% Twenty-One Day Return: BMY highest at 0.8%; PFE lowest at -14.0% While JNJ stock looks like it can see higher levels, it is helpful to see how Johnson & Johnson’s Peers fare on metrics that matter. Total [2] JNJ Return 0% -7% 42% S&P 500 Return 0% 6% 82% Trefis Multi-Strategy Portfolio 0% 12% 251% [1] Month-to-date and year-to-date as of 2/1/2023 [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 historical pattern reflects 48 out of 63, or about a 76% chance of a rise in JNJ stock over the next month. This pattern suggests a higher chance of a rise in JNJ stock over the next five, ten, and twenty-one days. Johnson & Johnson (JNJ) Return (Recent) Comparison With Peers Five-Day Return: BMY highest at 0.4%; JNJ lowest at -2.9% Ten-Day Return: BMY highest at 0.5%; JNJ lowest at -5.2% Twenty-One Day Return: BMY highest at 0.8%; PFE lowest at -14.0% While JNJ stock looks like it can see higher levels, it is helpful to see how Johnson & Johnson’s Peers fare on metrics that matter. |
22830.0 | 2023-02-02 00:00:00 UTC | ABBV March 24th Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-march-24th-options-begin-trading | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the March 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 24th contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $2.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $137.10 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $144.54/share today.
Because the $140.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.07% return on the cash commitment, or 15.13% 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 $140.00 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 $2.87. If an investor was to purchase shares of ABBV stock at the current price level of $144.54/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 5.76% if the stock gets called away at the March 24th 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 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.99% boost of extra return to the investor, or 14.51% 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 $144.54) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the March 24th 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 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the March 24th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $140.00 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 $2.87. 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 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the March 24th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 24th 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 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the March 24th expiration. |
22831.0 | 2023-02-02 00:00:00 UTC | The 3 Most Undervalued Penny Stocks to Buy in February 2023 | ABBV | https://www.nasdaq.com/articles/the-3-most-undervalued-penny-stocks-to-buy-in-february-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If finding undervalued stocks is good, then finding undervalued penny stocks is even better. That’s because, with penny stocks, investors’ capital appreciation upside potential is amplified.
Of course, risks are also amplified, making such companies often all-or-nothing bets. Penny stocks, which for this article I define as stocks trading for less than $5, are cheap for a reason. Many of these companies are not profitable. Some are even in the pre-revenue stage.
Not surprisingly, many penny stocks were hit hard in 2022 as investors moved away from risk-on assets. It appears one of the reasons investors are enjoying some relief to start 2023 is the “January Effect.” Stock prices have mostly climbed to start the year, with bullish expectations around what the Federal Reserve will do sparking interest in riskier assets.
Accordingly, this means that now could be the best time to start speculating on a few high-quality penny stocks. If such a high-risk high-reward investing style suits you, here are three such companies to consider right now. Each of these penny stocks appear undervalued relative to the consensus analyst price target.
KGC Kinross Gold $4.64
UEC Uranium Energy $4.14
HARP Harpoon Therapeutics $1.09
Kinross Gold (KGC)
Source: Shutterstock
Kinross Gold (NYSE:KGC) is first on this list of undervalued penny stocks for a reason. Over the past year, KGC stock is down roughly 11% at the time of writing. However, considering most mining stocks are up around 10% over the past month and 40% since last September, there’s some strong momentum with this group. Kinross Gold has outpaced those averages, and there’s reason to believe it can continue to do so.
Gold was a quietly strong performer in 2022, outperforming all three major indexes. Many analysts believe the price of gold will surge to $2,000 an ounce or more by the end of the year. That makes this an excellent time to consider having some exposure to gold in your portfolio.
Mining stocks are a low-risk way for investors to jump into precious metals without concerns about safely storing the physical metal. On Jan. 30, Barclays downgraded KGC stock from overweight to equal weight (the equivalent of moving it from a buy to a hold). The consensus outlook, however, is still bullish, and at a price below $5, now is an excellent time to jump aboard.
Uranium Energy (UEC)
Source: RHJPhtotos / Shutterstock
Next on this list of undervalued penny stocks is Uranium Energy (NYSE:UEC). As the United States continues pivoting towards a clean energy future, nuclear energy is once again coming into focus. That’s bullish for uranium prices, and the producers that benefit from rising prices.
According to the research firm Global Data, uranium production will grow at a compound annual growth rate of more than 5% between 2023 and 2026. Canada will continue to be the world’s leading supplier, but the United States is taking steps to support its nuclear fuel supply chain.
A critical step in this endeavor is the creation of the U.S. Strategic Uranium Reserve, a 10-year $1.5 billion program. And UEC has been tapped to supply 300,000 lbs of Triuranium octoxide (U3O8) – a compound of uranium – to the reserve.
Uranium Energy Corp is a pure-play uranium company with a strong balance sheet that has no debt. UEC stock is up 65% over the last 12 months. However, I think the likely demand surge with uranium overall could push this price much higher over the long-term. This is a penny stock to keep on the radar right now.
Harpoon Therapeutics (HARP)
Source: Hernan E. Schmidt / Shutterstock.com
In December, I put Harpoon Therapeutics (NASDAQ:HARP) on my list of stocks that had a chance to grow 10x. That’s partly due to what this biotech company does. It’s a clinical-stage immune-oncology company attempting to develop wholly-owned immunotherapies that harness the power of T-cells in patients with hard-to-treat tumors.
Harpoon holds tantalizing possibilities. But the company is years away from having a commercially-available product. However, the company is partnering with AbbVie (NYSE:ABBV) to bring its lead candidate, HPN217, through the clinical trial phase. Having a partner with the heft of AbbVie should do plenty to reassure investors.
At the time of writing, HARP stock has surged 78% over the last month alone. However, this stock still remains relatively depressed, down roughly 75% over the past year. That’s the kind of risk profile penny stock investors should be accustomed to. However, should this stock surge once again, it could be among the undervalued penny stocks that make investors very well off over the next few years.
Penny Stocks
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
The post The 3 Most Undervalued Penny Stocks to Buy in February 2023 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. | However, the company is partnering with AbbVie (NYSE:ABBV) to bring its lead candidate, HPN217, through the clinical trial phase. Having a partner with the heft of AbbVie should do plenty to reassure investors. Canada will continue to be the world’s leading supplier, but the United States is taking steps to support its nuclear fuel supply chain. | However, the company is partnering with AbbVie (NYSE:ABBV) to bring its lead candidate, HPN217, through the clinical trial phase. Having a partner with the heft of AbbVie should do plenty to reassure investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If finding undervalued stocks is good, then finding undervalued penny stocks is even better. | However, the company is partnering with AbbVie (NYSE:ABBV) to bring its lead candidate, HPN217, through the clinical trial phase. Having a partner with the heft of AbbVie should do plenty to reassure investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If finding undervalued stocks is good, then finding undervalued penny stocks is even better. | However, the company is partnering with AbbVie (NYSE:ABBV) to bring its lead candidate, HPN217, through the clinical trial phase. Having a partner with the heft of AbbVie should do plenty to reassure investors. Many of these companies are not profitable. |
22832.0 | 2023-02-02 00:00:00 UTC | AbbVie (ABBV) Earnings Expected to Grow: Should You Buy? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-earnings-expected-to-grow%3A-should-you-buy | nan | nan | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended December 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 9, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This drugmaker is expected to post quarterly earnings of $3.54 per share in its upcoming report, which represents a year-over-year change of +7%.
Revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.75% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AbbVie?
For AbbVie, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AbbVie would post earnings of $3.56 per share when it actually produced earnings of $3.66, delivering a surprise of +2.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AbbVie doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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. | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. | For the last reported quarter, it was expected that AbbVie would post earnings of $3.56 per share when it actually produced earnings of $3.66, delivering a surprise of +2.81%. Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for AbbVie? |
22833.0 | 2023-02-02 00:00:00 UTC | 2 Surefire Stocks to Buy in 2023 and Hold for at Least the Next Decade | ABBV | https://www.nasdaq.com/articles/2-surefire-stocks-to-buy-in-2023-and-hold-for-at-least-the-next-decade | nan | nan | The healthcare industry has proven to be a remarkably resilient place to put capital to work in a wide range of environments. From life-saving medicines and therapies to vaccines, these are just a few examples of the essential products that healthcare companies make that render them particularly defensive investments in a bearish environment.
With that, let's take a look at two surefire healthcare stocks you may want to consider hitting the "buy" button on to kick the new year off on a high note.
1. AbbVie
AbbVie (NYSE: ABBV) is a pharmaceutical giant. It's known for products like Humira, which had been the No. 1 selling drug in the world for nearly a decade until 2021 when it was knocked from the top due to record-breaking sales of Pfizer's Comirnaty. Humira is approved for a wide range of indications, from rheumatoid arthritis to Crohn's disease to plaque psoriasis. With 2023 as the year when U.S. patent exclusivity for Humira comes to an end, biosimilar competition will inevitably heat up in the period ahead.
However, investors who might be concerned about these developments should take a step back and look at the bigger picture, which is altogether brighter than it might appear at first glance. For one, it's worth noting that the company already lost patent exclusivity for the drug several years ago in international markets. Even as international sales of Humira have declined, the company has remained profitable. It continues to be acquisitive and to ramp up research and development initiatives.
AbbVie also has top-selling products like Skyrizi, Rinvoq, Botox Therapeutic, and Botox Cosmetic in its portfolio, which helped to drive the $15 billion in net revenue and $4 billion in net income the company reported in the third quarter of 2022 alone. At the J.P. Morgan conference in January, while CEO Richard Gonzalez forecast a deceleration in overall sales from Humira biosimilar competition this year and next, he noted that the company does not plan to lower its 2024 sales guidance, due to the strength of its remaining portfolio.
Gonzalez also said that management expects AbbVie to get back to steady upward growth in 2025. He noted that Skyrizi and Rinvoq alone are on track to eclipse Humira sales by the year 2027. It's also important to emphasize that while increased competition to Humira could affect AbbVie's top and bottom line as it recalibrates to other sources of growth, a number of the drug's manufacturing patents are still in force until 2034, which should continue to pose challenges to companies wishing to launch Humira biosimilars.
For long-term healthcare investors, AbbVie's robust portfolio of products and established track record of profitability (its annual net earnings have risen by more than 100% over the trailing five years alone) are all green flags for the company's future, even after the star power of Humira begins to recede. For income investors, it's also worth mentioning that the healthcare stock pays a dividend that currently yields 4% and which has risen more than 50% in the last five years alone.
2. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is another rock-solid healthcare stock for long-term investors to consider buying in 2023 and holding for many years. The biopharmaceutical company has built its business around a portfolio of four top-selling products, all of which treat the rare genetic disease cystic fibrosis.
These drugs are all CFTR modulators, a class of drugs that has had a revolutionary impact on what a diagnosis of cystic fibrosis means for patients, as well as the longevity and quality of life that patients can experience. Simply put, the goal of CFTR modulators is to correct and manage the underlying protein malfunction that causes someone to have cystic fibrosis in the first place. And since it owns the only approved CFTR modulators on the market, Vertex Pharmaceuticals has retained a distinct competitive edge in this multibillion-dollar segment of the rare disease drug market.
Over the past decade, the strength of Vertex's small but top-selling portfolio has enabled it to grow its revenue by more than 200%. Meanwhile, the company's net earnings have skyrocketed to the tune of about 790% over the trailing decade. And the company's cash position has also soared more than 300% in the past 10 years.
Now, Vertex is looking toward to the future as it seeks to launch itself to future growth from the established successes of its lucrative portfolio.
The company could soon witness its first non-cystic fibrosis product approval. Vertex and its partner CRISPR Therapeutics are awaiting regulatory review of exa-cel, a therapy that could be a one-time functional cure for the rare blood disorders sickle cell disease and transfusion-dependent beta thalassemia. VX-522 is another promising candidate from Vertex's pipeline that it's developing with Moderna. It's an mRNA therapy for cystic fibrosis patients who don't benefit from CFTR modulators.
Then there's the the company's acute pain disorder candidate VX-548, which is in phase 3 clinical testing. CEO Reshma Kewalramani noted in the Q3earnings callthat the drug "offers the potential of highly effective pain relief without the side effects or addictive potential of opioids." Investors could be witnessing just the beginning of the long-term growth runway that Vertex Pharmaceuticals could achieve over the next decade, creating a tempting buying proposition in the current market and well beyond.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Rachel Warren has positions in AbbVie. The Motley Fool has positions in and recommends CRISPR Therapeutics, JPMorgan Chase, Pfizer, and Vertex Pharmaceuticals. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For long-term healthcare investors, AbbVie's robust portfolio of products and established track record of profitability (its annual net earnings have risen by more than 100% over the trailing five years alone) are all green flags for the company's future, even after the star power of Humira begins to recede. AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical giant. AbbVie also has top-selling products like Skyrizi, Rinvoq, Botox Therapeutic, and Botox Cosmetic in its portfolio, which helped to drive the $15 billion in net revenue and $4 billion in net income the company reported in the third quarter of 2022 alone. | AbbVie also has top-selling products like Skyrizi, Rinvoq, Botox Therapeutic, and Botox Cosmetic in its portfolio, which helped to drive the $15 billion in net revenue and $4 billion in net income the company reported in the third quarter of 2022 alone. For long-term healthcare investors, AbbVie's robust portfolio of products and established track record of profitability (its annual net earnings have risen by more than 100% over the trailing five years alone) are all green flags for the company's future, even after the star power of Humira begins to recede. AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical giant. | It's also important to emphasize that while increased competition to Humira could affect AbbVie's top and bottom line as it recalibrates to other sources of growth, a number of the drug's manufacturing patents are still in force until 2034, which should continue to pose challenges to companies wishing to launch Humira biosimilars. For long-term healthcare investors, AbbVie's robust portfolio of products and established track record of profitability (its annual net earnings have risen by more than 100% over the trailing five years alone) are all green flags for the company's future, even after the star power of Humira begins to recede. AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical giant. | For long-term healthcare investors, AbbVie's robust portfolio of products and established track record of profitability (its annual net earnings have risen by more than 100% over the trailing five years alone) are all green flags for the company's future, even after the star power of Humira begins to recede. AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical giant. AbbVie also has top-selling products like Skyrizi, Rinvoq, Botox Therapeutic, and Botox Cosmetic in its portfolio, which helped to drive the $15 billion in net revenue and $4 billion in net income the company reported in the third quarter of 2022 alone. |
22834.0 | 2023-02-02 00:00:00 UTC | Merck (MRK) Beats Q4 Earnings and Revenue Estimates | ABBV | https://www.nasdaq.com/articles/merck-mrk-beats-q4-earnings-and-revenue-estimates | nan | nan | Merck (MRK) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.56 per share. This compares to earnings of $1.80 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this pharmaceutical company would post earnings of $1.67 per share when it actually produced earnings of $1.85, delivering a surprise of 10.78%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Merck, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.83 billion for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.65%. This compares to year-ago revenues of $13.52 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Merck shares have lost about 3.6% since the beginning of the year versus the S&P 500's gain of 7.3%.
What's Next for Merck?
While Merck has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Merck: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.56 on $14.03 billion in revenues for the coming quarter and $7.16 on $58.48 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
AbbVie (ABBV), another stock in the same industry, has yet to report results for the quarter ended December 2022. The results are expected to be released on February 9.
This drugmaker is expected to post quarterly earnings of $3.54 per share in its upcoming report, which represents a year-over-year change of +7%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level.
AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter.
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), another stock in the same industry, has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV), another stock in the same industry, has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. | AbbVie (ABBV), another stock in the same industry, has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie (ABBV), another stock in the same industry, has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22835.0 | 2023-02-02 00:00:00 UTC | Is ProShares S&P 500 Dividend Aristocrats ETF (NOBL) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-proshares-sp-500-dividend-aristocrats-etf-nobl-a-strong-etf-right-now-5 | nan | nan | A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Proshares. It has amassed assets over $11.53 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. NOBL, before fees and expenses, seeks to match the performance of the S&P 500 DividendAristocrats Index.
The S&P 500 Dividend Aristocrats Index targets companies that are currently members of the S&P 500, have increased dividend payments each year for at least 25 years & meet certain market capitalization & liquidity requirements.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.35%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.86%.
Performance and Risk
The ETF return is roughly 4.17% and is up about 0.84% so far this year and in the past one year (as of 02/02/2023), respectively. NOBL has traded between $79.96 and $97.74 during this last 52-week period.
The fund has a beta of 0.89 and standard deviation of 23.95% for the trailing three-year period, which makes NOBL a medium risk choice in this particular space. With about 65 holdings, it effectively diversifies company-specific risk.
Alternatives
ProShares S&P 500 Dividend Aristocrats 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.51 billion in assets, Vanguard Dividend Appreciation ETF has $67.88 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market. 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 ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.51 billion in assets, Vanguard Dividend Appreciation ETF has $67.88 billion. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. 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. | Click to get this free report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market. 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. |
22836.0 | 2023-02-01 00:00:00 UTC | FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high | ABBV | https://www.nasdaq.com/articles/focus-abbvies-humira-gets-a-u.s.-rival-but-costs-could-stay-high-1 | nan | nan | By Patrick Wingrove
Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited.
Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing.
One sets a 5% discount to Humira’s monthly price of $6,922. The other will be about half price but may not be widely used as it is unlikely to appeal to pharmacy benefit managers (PBMs)that recommend which drugs most insurance providers should cover.
Most patients’ co-insurance costs are set as a percentage of list price and are expected to be calculated off the higher price.
At least another seven Humira biosimilars are expected this summer and could debut with discounted list prices. Even then, patient groups, pharmacists, doctors and academics said they will be obscured by the U.S. private insurance system of middlemen negotiation and after-market discounts called rebates.
PBMs say that the deep discounts they receive are returned to insurers and employers to lower their overall medical costs.
Benjamin Rome, a drug pricing researcher at Harvard Medical School, said introduction of biosimilars in the United States has not sent prices tumbling as originally expected.
Unlike pills, which have extremely cheap generic copies, complex, expensive biologic drugs made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
"The bottom line is it’s feasible that even if prices for Humira and biosimilars go down, this could be in the form of higher rebates to PBMs rather than actual lower prices that are passed onto patients," Rome said.
The U.S. pays the highest drug prices in the world, in part because many different private sector companies do not have the power of a single government payer.
The Biden Administration’s Inflation Reduction Act will allow the government’s Medicare program for people aged 65 and older to negotiate prices of its most costly medicines, but drugs like Humira with direct competition are excluded.
Humira - the world's biggest selling non-COVID prescription drug - is used to treat rheumatoid arthritis, Crohn’s disease, ulcerative colitis and psoriasis.
A 5% lower list price would result in a savings of about $35 a month for a person whose coinsurance payment is 10% of the list price.
Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. Amgen has launched a similar savings program for its version.
There are currently about half a dozen drugs with biosimilar competition in the United States. Prices of those have decreased up to 20%, according to a report from the National Bureau of Economic Research.
Amgen has set list prices of $1,557 and $3,288 per 40 milligram pen device, a two-week supply. Amgen executive Murdo Gordon told Reuters the lower price would attract healthcare systems that act as both an insurer and a provider and typically do not seek after-market discounts.
"If you think of a pharmaceutical benefit manager, they would prefer the high list price, because their business model is extracting rebates from manufacturers and passing them on to their employer, customers or their downstream health plan customers," Gordon said.
UnitedHealth Group’s UNH.N OptumRX and Cigna Corp CI.N said last year they had deals to make Humira, as well as rivals from Amgen and others, available under the same pricing and access terms. CVS Health CVS.N, another large PBM, plans to include the drug on its coverage list but as non-preferred with less favorable terms.
JC Scott, president of the Pharmaceutical Care Management Association, said PBMs want more competition in the prescription drug marketplace and discouraged delays sought by drugmakers.
"The bottom line is that increased competition is the most effective and sustainable way to drive prescription drug costs down," he said.
LIST PRICES TO FALL
In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported.
Additional AbbVie patents continued to protect it in the United States, and the company struck deals with Amgen and others to allow rival drugs in exchange for royalty payments.
AbbVie declined to comment.
Douglas Hoey, chief executive of the National Community Pharmacists Association, said he expected U.S. prices for drugs of this type to fall about 15%-20% after new competition enters in July.
But Robert Popovian, the chief science policy officer at patient advocacy group Global Healthy Living Foundation, said it would take further market and public pressure after the summer entries to get list prices down.
Analysts expect the introduction of biosimilar competition will drive down Humira sales. They are forecasting sales of $21.2 billion in 2022, dropping to $13.4 billion this year and $8.3 billion in 2024, according to Refinitiv. Analysts expect Amgen’s biosimilar to garner sales of $747.6 million in 2023 and $933.8 million in 2024.
Marcus Snow, a rheumatologist at the University of Nebraska Medical Center, said he would prescribe adalimumab, the chemical name for Humira, based on price and each patient’s insurance coverage terms.
All things being equal, he said, he would keep existing patients on Humira and try to put new patients on the medicine that was most likely to be given preference on formularies in the future, to avoid switching.
"I wouldn't expect to see the price changes that we all hope to have in the first year," Snow said.
GRAPHIC-More U.S. competition ahead for AbbVie's Humirahttps://tmsnrt.rs/3kVaST2
(Reporting by Patrick Wingrove in New York; Editing by Caroline Humer and Bill Berkrot)
((Patrick.Wingrove@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. |
22837.0 | 2023-02-01 00:00:00 UTC | UK pharma body urges govt to scrap hike in repayment rate for drugmakers | ABBV | https://www.nasdaq.com/articles/uk-pharma-body-urges-govt-to-scrap-hike-in-repayment-rate-for-drugmakers | nan | nan | Feb 2 (Reuters) - UK's pharmaceutical trade body on Thursday called for the government to scrap its plans to raise the repayment rates for drugmakers, to avoid possible setbacks in the sector.
Drugmakers that are part of UK's voluntary scheme agreement, which makes branded medicines affordable for people, are required to pay a part of their drug revenue to the government. The Department of Health and Social Care plans to raise the revenue clawback rate to 27.5% from 24.5%.
The country's ongoing attempt to raise rates is likely to send the "worst possible signal" to global investors and boardrooms, said the Association of the British Pharmaceutical Industry (ABPI).
"Hiking these clawbacks to such uncompetitive levels risks undermining the UK's offer to global life sciences companies," Richard Torbett, chief executive of the ABPI, said in a statement.
Pharmaceuticals giants AbbVie ABBV.N and Eli Lilly LLY.Nwithdrew from the UK's voluntary drug pricing agreement in January after the repayment rates surged to 26.5%.
ABPI has asked for the existing rates to be terminated at the end of 2023, while keeping it unchanged for now to buy time for negotiations.
The industry body said the government policies could further depress investments in UK's life science sector in the long term.
($1 = 0.8106 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Shinjini Ganguli and Shweta Agarwal)
((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pharmaceuticals giants AbbVie ABBV.N and Eli Lilly LLY.Nwithdrew from the UK's voluntary drug pricing agreement in January after the repayment rates surged to 26.5%. Feb 2 (Reuters) - UK's pharmaceutical trade body on Thursday called for the government to scrap its plans to raise the repayment rates for drugmakers, to avoid possible setbacks in the sector. The country's ongoing attempt to raise rates is likely to send the "worst possible signal" to global investors and boardrooms, said the Association of the British Pharmaceutical Industry (ABPI). | Pharmaceuticals giants AbbVie ABBV.N and Eli Lilly LLY.Nwithdrew from the UK's voluntary drug pricing agreement in January after the repayment rates surged to 26.5%. The Department of Health and Social Care plans to raise the revenue clawback rate to 27.5% from 24.5%. The industry body said the government policies could further depress investments in UK's life science sector in the long term. | Pharmaceuticals giants AbbVie ABBV.N and Eli Lilly LLY.Nwithdrew from the UK's voluntary drug pricing agreement in January after the repayment rates surged to 26.5%. Feb 2 (Reuters) - UK's pharmaceutical trade body on Thursday called for the government to scrap its plans to raise the repayment rates for drugmakers, to avoid possible setbacks in the sector. Drugmakers that are part of UK's voluntary scheme agreement, which makes branded medicines affordable for people, are required to pay a part of their drug revenue to the government. | Pharmaceuticals giants AbbVie ABBV.N and Eli Lilly LLY.Nwithdrew from the UK's voluntary drug pricing agreement in January after the repayment rates surged to 26.5%. Feb 2 (Reuters) - UK's pharmaceutical trade body on Thursday called for the government to scrap its plans to raise the repayment rates for drugmakers, to avoid possible setbacks in the sector. Drugmakers that are part of UK's voluntary scheme agreement, which makes branded medicines affordable for people, are required to pay a part of their drug revenue to the government. |
22838.0 | 2023-02-01 00:00:00 UTC | 3 Juicy Dividend Stocks in Warren Buffett's Secret Portfolio to Buy in February | ABBV | https://www.nasdaq.com/articles/3-juicy-dividend-stocks-in-warren-buffetts-secret-portfolio-to-buy-in-february | nan | nan | Want to know which stocks Warren Buffett owns? First, look at Berkshire Hathaway's 13-F filings to the U.S. Securities and Exchange Commission (SEC). However, those filings won't reveal all of Buffett's stocks.
Many investors don't realize that there's another group of stocks Buffett owns in addition to the stocks listed in Berkshire's 13-F documents. New England Asset Management (NEAM) is an investment firm that's a wholly owned subsidiary of Berkshire Hathaway. Its 13-F filings provide another basket of stocks that Buffett owns.
As is the case with Berkshire's portfolio, many of the stocks owned by NEAM pay dividends. Here are three juicy dividend stocks in Buffett's "secret portfolio" to buy in February.
1. Ares Capital
Buffett doesn't own many ultra-high-yield dividend stocks. However, Ares Capital (NASDAQ: ARCC) definitely qualifies with its dividend yield of nearly 10%. Ares isn't in Berkshire's portfolio, but NEAM owns 225,900 shares.
How can Ares Capital pay such a juicy yield? It's a business development company (BDC). Like real estate investment trusts (REITs), BDCs must return at least 90% of taxable income to shareholders in the form of dividends. As the largest publicly traded BDC, Ares Capital has had plenty of income to return with more than 13 years of stable or increasing dividends.
Ares Capital fills a need by providing loans to midsize companies at which big banks often turn up their noses. The BDC's portfolio is much more diversified than its peers'. This lower risk profile has helped Ares Capital outperform its rivals. Ares has also generated total returns that are roughly 80% higher than the S&P 500 since its initial public offering in 2004.
Higher interest rates boost Ares Capital's profits. However, the company has also performed well during periods of low interest rates. CEO Kipp DeVeer stated in October 2022 that Ares Capital should be able to generate enough earnings to keep paying its dividend at current levels "under a variety of interest rate and economic scenarios for the foreseeable future." That's the kind of optimism that income investors like to hear.
2. Enbridge
Buffett has become a big fan of the oil and gas industry over the last couple of years. Berkshire's portfolio doesn't include any midstream energy companies, but NEAM's does. The investment firm owns a tiny position in midstream leader Enbridge (NYSE: ENB).
Enbridge operates more than 76,500 miles of natural gas pipelines and 17,800 miles of liquids pipelines, plus export and storage facilities. It has also moved into renewable energy with 23 wind farms, 17 solar energy facilities, as well as hydroelectric, hydrogen, and geothermal facilities.
The company has increased its dividend for 28 consecutive years. Its dividend yield currently stands at 6.4%.
Could oil price fluctuations hurt Enbridge? Not really. The company's business is immune to oil price volatility. Enbridge has highly predictable cash flow thanks to its contracts with customers.
3. AbbVie
Buffett owned shares of AbbVie (NYSE: ABBV) in Berkshire's portfolio not too long ago. He subsequently exited his positions in AbbVie and several other big pharma stocks. However, the legendary investor nonetheless still has a stake in AbbVie through NEAM.
AbbVie ranks among the best dividend stocks in either of Buffett's portfolios. The company is a Dividend King with 51 consecutive years of dividend increases. Its dividend yield currently tops 4%.
Some investors might be leery of buying AbbVie stock right now. The company's top-selling drug, Humira, faces steep sales erosion due to biosimilar competition in the U.S. AbbVie's revenue and profits will no doubt fall significantly in 2023.
However, these expectations are already largely baked into AbbVie's share price. The company has a strong lineup of products that should enable it to return to growth after this year with solid growth prospects over the long term. Most importantly for income investors, AbbVie's dividends should continue to flow and grow.
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Keith Speights has positions in AbbVie and Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Enbridge. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's top-selling drug, Humira, faces steep sales erosion due to biosimilar competition in the U.S. AbbVie's revenue and profits will no doubt fall significantly in 2023. AbbVie Buffett owned shares of AbbVie (NYSE: ABBV) in Berkshire's portfolio not too long ago. He subsequently exited his positions in AbbVie and several other big pharma stocks. | AbbVie Buffett owned shares of AbbVie (NYSE: ABBV) in Berkshire's portfolio not too long ago. He subsequently exited his positions in AbbVie and several other big pharma stocks. However, the legendary investor nonetheless still has a stake in AbbVie through NEAM. | See the 10 stocks *Stock Advisor returns as of January 9, 2023 Keith Speights has positions in AbbVie and Berkshire Hathaway. AbbVie Buffett owned shares of AbbVie (NYSE: ABBV) in Berkshire's portfolio not too long ago. He subsequently exited his positions in AbbVie and several other big pharma stocks. | AbbVie ranks among the best dividend stocks in either of Buffett's portfolios. AbbVie Buffett owned shares of AbbVie (NYSE: ABBV) in Berkshire's portfolio not too long ago. He subsequently exited his positions in AbbVie and several other big pharma stocks. |
22839.0 | 2023-02-01 00:00:00 UTC | Amgen (AMGN) Beats on Q4 Earnings, 2023 Sales View Disappoints | ABBV | https://www.nasdaq.com/articles/amgen-amgn-beats-on-q4-earnings-2023-sales-view-disappoints | nan | nan | Amgen AMGN reported fourth-quarter 2022 earnings of $4.09 per share, which beat the Zacks Consensus Estimate of $4.04. Earnings declined 7% year over year due to a lower operating margin.
Total revenues of $6.84 billion also beat the Zacks Consensus Estimate of $6.74 billion as well as our estimate of $6.66 billion. Total revenues were flat year over year as higher product sales were offset by lower Other revenues.
Total product revenues increased 4% from the year-ago quarter to $6.55 billion (U.S.: $4.79 billion; ex-U.S.: $1.78 billion). Higher volumes were offset by lower selling prices of several drugs and currency headwinds. Volumes rose 10% in the quarter, offset by a 3% lower net selling price. Foreign exchange movement hurt sales by 2% in the quarter.
Other revenues were $287 million in the quarter, down 50% year over year due to lower revenues from its COVID-19 manufacturing collaboration with Eli Lilly.
Amgen’s stock has risen 10.5% in the past year against a decline of 10.4% for the industry.
Image Source: Zacks Investment Research
Performance of Key Drugs
General Medicine
Prolia revenues came in at $992 million, up 14% from the year-ago quarter, driven by volume growth. Prolia sales beat our estimates of $941.2 million.
Evenity recorded sales of $225.0 million in the quarter, up 57% year over year, driven by strong volume growth both in and outside the United States.
Repatha generated revenues of $333.0 million, up 22% year over year, as higher volume was partially offset by lower prices. Increased rebates to support broad Medicare Part D and commercial patient access in the United States and the inclusion of Repatha on China’s National Reimbursement Drug List led to lower prices in the quarter. Repatha sales were almost in line with our estimates of $333.4 million.
Aimovig recorded sales of $114 million in the quarter, up 27% year over year due to higher net selling price, which offset a decline in volume.
Hematology-Oncology
Xgeva delivered revenues of $484 million, down 11% from the year-ago quarter due to lower volumes and unfavorable changes to estimated sales deductions. Xgeva sales missed our estimates of $518.1 million.
Kyprolis recorded sales of $325 million, up 14% year over year, driven by volume growth.
Vectibix revenues came in at $238 million, down 2% year over due to currency headwinds,
Nplate sales rose 66% to $469 million due to a one-time order from the U.S. government. Blincyto sales increased 24% from the year-ago period to $164 million.
Amgen’s newly approved drug, Lumakras/ Lumykras recorded sales of $71 million in the quarter compared with $75 million in the previous quarter. Lumakras sales declined sequentially due to lower net selling price and unfavorable changes to estimated sales deductions. Lumakras/ Lumykras volumes rose 12% in the quarter. Lumakras/Lumykras sales missed our estimates of $85.6 million.
Sales of Amgen’s oncology biosimilars declined 40% year over year in the fourth quarter.
In oncology biosimilars, sales of Kanjinti (Amgen’s biosimilar of Roche’s Herceptin) were $63 million, down 55% year over year due to lower pricing as a result of increased competition and unfavorable changes to estimated sales deductions.
Sales of Mvasi (biosimilar of Roche’s Avastin) were $205 million in the quarter, down 33% year over year due to declines in net selling price.
Inflammation
Sales of Otezla were $616 million in the quarter, down 2%, due to lower pricing and unfavorable changes to estimated sales deductions. Otezla volumes rose 7% in the quarter. Otezla sales in the United States were hurt by increased competitive pressure. Otezla sales missed our estimates of $640.2 million.
Newly approved asthma drug, Tezspire (tezepelumab) recorded sales of $79 million in the quarter compared with $55 million in the previous quarter as the new drug is being utilized by patients across all types of severe asthma. Amgen has a partnership with AstraZeneca AZN for Tezspire. In September, AstraZeneca announced that Tezspire was approved in Japan and Europe. Amgen and AstraZeneca share costs and profits equally after payment by AstraZeneca of a mid-single-digit inventor royalty to Amgen. While AstraZeneca leads development, Amgen leads manufacturing.
Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $119 million in the quarter, up 3% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. The same day as its earnings release, Amgen announced that it has launched Amjevita in the United States at a list price 55% below the current list price set by AbbVie for Humira. Amgen is the first company to have launched a biosimilar of AbbVie’s Humira in the United States. With a five-month lead over the next biosimilar entrant, Amgen expects a rapid uptake of the biosimilar in 2023.
Enbrel revenues of $1.08 billion declined 1% year over year due to lower volumes and price, which were partially offset by higher year-end inventory levels. Enbrel sales slightly missed our estimates of $1.11 billion.
The 2022 acquisition of ChemoCentryx added a newly launched innovative product, Tavneos to Amgen’s portfolio. Tavneos is approved for the treatment of patients with ANCA-associated vasculitis, a serious systemic autoimmune disease. Tavneos generated $21 million in sales in the fourth quarter
Operating Margins Decline
The adjusted operating margin declined 1.9 percentage points to 45.9% in the quarter. Adjusted operating expenses were flat at $3.83 billion as higher SG&A costs were offset by lower R&D costs.
SG&A spending rose 2% to $1.47 billion. R&D expenses declined 2% year over year to $1.29 billion due to higher business development activity in the year-ago quarter, partially offset by higher spending behind pipeline candidates.
2022 Results
Full-year 2022 sales rose 1% to $26.32 billion, which beat the Zacks Consensus Estimate of $26.23 billion. Sales were within the guided range of $26.0 billion to $26.3 billion
Adjusted earnings for 2022 were $17.69 per share, up 27% year over year. Earnings beat the Zacks Consensus Estimate of $17.62 per share and were within the guided range of $17.25 to $17.85 per share.
2023 Guidance
Amgen gave its financial guidance for 2023 that excluded any contribution from the pending acquisition of Horizon Therapeutics HZNP.
In December, Amgen announced a definitive agreement to acquire Horizon Therapeutics for $116.5 per share in cash or $27.8 billion. The acquisition will add several first-in-class early-in-lifecycle biologic drugs like Tepezza, Krystexxa and Uplizna to Amgen’s broad and diversified portfolio. The acquisition is expected to close in the first half of this year. AMGN will provide updated guidance for 2023 after the transaction closes.
Revenues are expected in the range of 26.0 billion to $27.2 billion, which fell short of the Zacks Consensus Estimate of $28.46 billion.
Earnings are expected in the range of $17.40 to $18.60 per share. The Zacks Consensus Estimate stands at $18.43 per share.
Amgen expects Other revenues to be between $1.2 billion to $1.5 billion.
Adjusted cost of sales as a percent of product sales is expected to be 16% to 17% in 2023.
Adjusted R&D costs are expected to increase 3% to 4% year over year from the 2022 level. S&A spending is expected to decrease slightly year over year. Total operating expenses are expected to be flat versus the 2022 level. Amgen expects the operating margin as a percentage of product sales to be roughly 50% in 2023.
The adjusted tax rate is expected to be in the range of 18.0%-19.0%, while capital expenditures are expected to be approximately $925 million. The company expects to buy back shares worth not more than $500 million in 2023.
Our Take
Amgen’s fourth-quarter results were strong as it beat estimates for both earnings and sales. Its 2023 sales guidance fell short of market expectations, which explains the slight decline in the stock price in after-hours trading.
Amgen witnessed double-digit volume growth for a number of its key products like Repatha, Prolia and Evenity in the fourth quarter and in the full year, with the trend expected to continue in 2023. However, pricing pressure and increased competition continued to hurt sales of some drugs as well as biosimilar products.
In 2023, Amgen expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from Nplate, oncology biosimilars and legacy established products such as Enbrel and the absence of COVID-19 antibody revenues. It expects a mid-single-digit price decline in 2023
Amgen 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. | Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $119 million in the quarter, up 3% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. The same day as its earnings release, Amgen announced that it has launched Amjevita in the United States at a list price 55% below the current list price set by AbbVie for Humira. Amgen is the first company to have launched a biosimilar of AbbVie’s Humira in the United States. | Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $119 million in the quarter, up 3% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. The same day as its earnings release, Amgen announced that it has launched Amjevita in the United States at a list price 55% below the current list price set by AbbVie for Humira. | Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $119 million in the quarter, up 3% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. The same day as its earnings release, Amgen announced that it has launched Amjevita in the United States at a list price 55% below the current list price set by AbbVie for Humira. Amgen is the first company to have launched a biosimilar of AbbVie’s Humira in the United States. | Amgevita (a biosimilar of AbbVie’s [ABBV] Humira) sales were $119 million in the quarter, up 3% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. The same day as its earnings release, Amgen announced that it has launched Amjevita in the United States at a list price 55% below the current list price set by AbbVie for Humira. Amgen is the first company to have launched a biosimilar of AbbVie’s Humira in the United States. |
22840.0 | 2023-01-31 00:00:00 UTC | Amgen revenue falls slightly as Lilly COVID deal contributes less | ABBV | https://www.nasdaq.com/articles/amgen-revenue-falls-slightly-as-lilly-covid-deal-contributes-less | nan | nan | Jan 31 (Reuters) - Amgen Inc AMGN.O on Tuesday said its fourth-quarter revenue fell slightly as a 4% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co. LLY.N
Amgen reported revenue of $6.84 billion in the quarter, down from $6.85 billion a year ago, but ahead of analysts' estimates of $6.77 billion, according to Refinitiv data.
Amgen partnered with Lilly in 2020 to increase the supply of its COVID-19 antibody treatments. U.S. health regulators pulled the authorization for Lilly's last COVID antibody in November after determining it would not be effective against currently circulating coronavirus variants.
The biotechnology company's listed "other revenue," which includes the manufacturing deal, fell to $287 million from $575 million last year.
Amgen product sales were led by a 14% jump in osteoporosis drug Prolia to a quarterly record of $992 million.
Adjusted earnings per share decreased to $4.09 from $4.40 a year ago, just missing analyst estimates of $4.10. Net income fell 15% to $1.62 billion.
The biotechnology company forecast 2023 revenue of $26 billion to $27.2 billion, excluding the impact of its anticipated acquisition of Horizon Therapeutics Plc HZNP.O. The company expects to provide an updated forecast once that deal closes.
Analysts estimate $27.17 billion in revenue for the full year, according to Refinitiv.
Earlier in December, Amgen agreed to buy Horizon in a deal valued at $27.8 billion, fortifying its rare diseases portfolio with the access to the blockbuster thyroid eye disease treatment Tepezza.
"The announced acquisition of Horizon Therapeutics, which we expect to complete in the first half of this year, represents a compelling opportunity to serve more patients and strengthen our growth profile," Amgen Chief Executive Robert Bradway said in a statement.
Earlier on Tuesday, Amgen launched Amjevita, the first U.S. biosimilar of AbbVie Inc's ABBV.N blockbuster arthritis treatment Humira. It began selling it in Europe in October 2018 after Humira first went off patent.
FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high
(Reporting by Sriparna Roy in Bengaluru and Michael Erman in Maplewood, New Jersey; Editing by Bill Berkrot)
((Sriparna.Roy@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier on Tuesday, Amgen launched Amjevita, the first U.S. biosimilar of AbbVie Inc's ABBV.N blockbuster arthritis treatment Humira. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Sriparna Roy in Bengaluru and Michael Erman in Maplewood, New Jersey; Editing by Bill Berkrot) ((Sriparna.Roy@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. U.S. health regulators pulled the authorization for Lilly's last COVID antibody in November after determining it would not be effective against currently circulating coronavirus variants. | Earlier on Tuesday, Amgen launched Amjevita, the first U.S. biosimilar of AbbVie Inc's ABBV.N blockbuster arthritis treatment Humira. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Sriparna Roy in Bengaluru and Michael Erman in Maplewood, New Jersey; Editing by Bill Berkrot) ((Sriparna.Roy@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Jan 31 (Reuters) - Amgen Inc AMGN.O on Tuesday said its fourth-quarter revenue fell slightly as a 4% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co. LLY.N Amgen reported revenue of $6.84 billion in the quarter, down from $6.85 billion a year ago, but ahead of analysts' estimates of $6.77 billion, according to Refinitiv data. | Earlier on Tuesday, Amgen launched Amjevita, the first U.S. biosimilar of AbbVie Inc's ABBV.N blockbuster arthritis treatment Humira. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Sriparna Roy in Bengaluru and Michael Erman in Maplewood, New Jersey; Editing by Bill Berkrot) ((Sriparna.Roy@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Jan 31 (Reuters) - Amgen Inc AMGN.O on Tuesday said its fourth-quarter revenue fell slightly as a 4% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co. LLY.N Amgen reported revenue of $6.84 billion in the quarter, down from $6.85 billion a year ago, but ahead of analysts' estimates of $6.77 billion, according to Refinitiv data. | Earlier on Tuesday, Amgen launched Amjevita, the first U.S. biosimilar of AbbVie Inc's ABBV.N blockbuster arthritis treatment Humira. FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high (Reporting by Sriparna Roy in Bengaluru and Michael Erman in Maplewood, New Jersey; Editing by Bill Berkrot) ((Sriparna.Roy@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Jan 31 (Reuters) - Amgen Inc AMGN.O on Tuesday said its fourth-quarter revenue fell slightly as a 4% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co. LLY.N Amgen reported revenue of $6.84 billion in the quarter, down from $6.85 billion a year ago, but ahead of analysts' estimates of $6.77 billion, according to Refinitiv data. |
22841.0 | 2023-01-31 00:00:00 UTC | Here's What To Expect From Merck's Q4 | ABBV | https://www.nasdaq.com/articles/heres-what-to-expect-from-mercks-q4 | nan | nan | Merck (NYSE: MRK) is scheduled to report its Q4 2022 results on Thursday, February 2. We expect MRK stock to trade sideways, with its revenue likely falling slightly below and earnings marginally above the street estimates. Although the company should benefit from continued market share gains for Keytruda and Gardasil, among other products, forex headwinds may weigh on its overall performance. Furthermore, we find MRK stock to have little room for growth, as discussed below. Our interactive dashboard analysis on Merck’s Earnings Preview has additional details.
(1) Revenues expected to be slightly below the consensus estimates
Trefis estimates Merck’s Q4 2022 revenues to be $13.5 billion, reflecting no growth y-o-y and slightly below the $13.7 billion consensus estimate.
Market share gains will likely continue to drive revenue growth for Keytruda and Gardasil.
Looking at Q3 2022, Merck reported revenue of $15.0 billion, reflecting a significant 14% y-o-y growth, partly due to a $436 million sales contribution from its Covid-19 treatment – Lagevrio.
Merck’s top-selling drug – Keytruda – saw its sales rise 20% to $5.4 billion in Q3, while Gardasil sales were up 15% to $2.3 billion.
Our dashboard on Merck Revenues offers details on the company’s segments.
(2) EPS expected to be marginally above the consensus estimates
Merck’s Q4 2022 adjusted earnings per share (EPS) is expected to be $1.54 per Trefis analysis, just a cent above the consensus estimate of $1.53.
Merck’s adjusted net income of $4.7 billion in Q3 2022 reflected a 4% rise from its $4.5 billion figure in the prior-year quarter, led by higher revenues, partly offset by higher R&D expenses.
For the full year 2023, we expect the adjusted EPS to be higher at $7.58, compared to $6.02 in 2021 and an estimated $7.40 in 2022.
(3) MRK stock has little room for growth
We estimate Merck’s Valuation to be $114 per share, which is only 8% above the current market price of $105.
This represents a forward P/E multiple of 14x based on our EPS forecast of $7.58 in 2023, slightly higher than the last three-year average of 13x, implying that MRK stock is appropriately priced.
However, if the company reports upbeat results, along with the 2023 guidance better than the street estimates, the P/E multiple will likely be revised upward, resulting in higher levels for MRK stock.
While MRK stock looks reasonably priced, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite inflation rising and the Fed raising interest rates, Merck stock has risen 25% 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 Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return -5% -5% 79%
S&P 500 Return 6% 6% 82%
Trefis Multi-Strategy Portfolio 11% 11% 249%
[1] Month-to-date and year-to-date as of 1/30/2023
[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. | Although the company should benefit from continued market share gains for Keytruda and Gardasil, among other products, forex headwinds may weigh on its overall performance. Looking at Q3 2022, Merck reported revenue of $15.0 billion, reflecting a significant 14% y-o-y growth, partly due to a $436 million sales contribution from its Covid-19 treatment – Lagevrio. This represents a forward P/E multiple of 14x based on our EPS forecast of $7.58 in 2023, slightly higher than the last three-year average of 13x, implying that MRK stock is appropriately priced. | (1) Revenues expected to be slightly below the consensus estimates Trefis estimates Merck’s Q4 2022 revenues to be $13.5 billion, reflecting no growth y-o-y and slightly below the $13.7 billion consensus estimate. Looking at Q3 2022, Merck reported revenue of $15.0 billion, reflecting a significant 14% y-o-y growth, partly due to a $436 million sales contribution from its Covid-19 treatment – Lagevrio. (2) EPS expected to be marginally above the consensus estimates Merck’s Q4 2022 adjusted earnings per share (EPS) is expected to be $1.54 per Trefis analysis, just a cent above the consensus estimate of $1.53. | (1) Revenues expected to be slightly below the consensus estimates Trefis estimates Merck’s Q4 2022 revenues to be $13.5 billion, reflecting no growth y-o-y and slightly below the $13.7 billion consensus estimate. (3) MRK stock has little room for growth We estimate Merck’s Valuation to be $114 per share, which is only 8% above the current market price of $105. Total [2] MRK Return -5% -5% 79% S&P 500 Return 6% 6% 82% Trefis Multi-Strategy Portfolio 11% 11% 249% [1] Month-to-date and year-to-date as of 1/30/2023 [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. | (1) Revenues expected to be slightly below the consensus estimates Trefis estimates Merck’s Q4 2022 revenues to be $13.5 billion, reflecting no growth y-o-y and slightly below the $13.7 billion consensus estimate. For the full year 2023, we expect the adjusted EPS to be higher at $7.58, compared to $6.02 in 2021 and an estimated $7.40 in 2022. (3) MRK stock has little room for growth We estimate Merck’s Valuation to be $114 per share, which is only 8% above the current market price of $105. |
22842.0 | 2023-01-31 00:00:00 UTC | IWF, ABBV, HD, UNP: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iwf-abbv-hd-unp%3A-large-outflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $1.1 billion dollar outflow -- that's a 1.8% decrease week over week (from 267,900,000 to 263,100,000). Among the largest underlying components of IWF, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Home Depot Inc (Symbol: HD) is up about 1.7%, and Union Pacific Corp (Symbol: UNP) is higher by about 0.8%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $202.05 per share, with $285.76 as the 52 week high point — that compares with a last trade of $230.17. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWF, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Home Depot Inc (Symbol: HD) is up about 1.7%, and Union Pacific Corp (Symbol: UNP) is higher 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 IWF, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Home Depot Inc (Symbol: HD) is up about 1.7%, and Union Pacific Corp (Symbol: UNP) is higher by about 0.8%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $202.05 per share, with $285.76 as the 52 week high point — that compares with a last trade of $230.17. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of IWF, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Home Depot Inc (Symbol: HD) is up about 1.7%, and Union Pacific Corp (Symbol: UNP) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $1.1 billion dollar outflow -- that's a 1.8% decrease week over week (from 267,900,000 to 263,100,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $202.05 per share, with $285.76 as the 52 week high point — that compares with a last trade of $230.17. | Among the largest underlying components of IWF, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Home Depot Inc (Symbol: HD) is up about 1.7%, and Union Pacific Corp (Symbol: UNP) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $1.1 billion dollar outflow -- that's a 1.8% decrease week over week (from 267,900,000 to 263,100,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $202.05 per share, with $285.76 as the 52 week high point — that compares with a last trade of $230.17. |
22843.0 | 2023-01-31 00:00:00 UTC | FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high | ABBV | https://www.nasdaq.com/articles/focus-abbvies-humira-gets-a-u.s.-rival-but-costs-could-stay-high | nan | nan | By Patrick Wingrove
Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited.
Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. One sets a 5% discount to Humira’s monthly price of $6,922. The other will be about half price but may not be widely available.
Most patients’ co-insurance costs are set as a percentage of list price and are expected to be calculated off the higher price.
At least another seven Humira biosimilars are expected this summer and could debut with discounted list prices. Even then, patient groups, pharmacists, doctors and academics said they will be obscured by the U.S. private insurance system of middlemen negotiation and after-market discounts called rebates.
Pharmacy benefit managers (PBMs) say that the deep discounts they receive are returned to insurers and employers to lower their overall medical costs.
Benjamin Rome, a drug pricing researcher at Harvard Medical School, said introduction of biosimilars in the United States has not sent prices tumbling as originally expected.
Unlike pills, which have extremely cheap generic copies, complex, expensive biologic drugs made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
"The bottom line is it’s feasible that even if prices for Humira and biosimilars go down, this could be in the form of higher rebates to PBMs rather than actual lower prices that are passed onto patients," Rome said.
The U.S. pays the highest drug prices in the world, in part because many different private sector companies do not have the power of a single government payer.
The Biden Administration’s Inflation Reduction Act will allow the government’s Medicare program for people aged 65 and older to negotiate prices of its most costly medicines, but drugs like Humira with direct competition are excluded.
Humira - the world's biggest selling non-COVID prescription drug - is used to treat rheumatoid arthritis, Crohn’s disease, ulcerative colitis and psoriasis.
A 5% lower list price would result in a savings of about $35 a month for a person whose coinsurance payment is 10% of the list price.
Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. Amgen has launched a similar savings program for its version.
There are currently about half a dozen drugs with biosimilar competition in the United States. Prices of those have decreased up to 20%, according to a report from the National Bureau of Economic Research.
Amgen has set list prices of $1,557 and $3,288 per 40 milligram pen device, a two-week supply. Amgen executive Murdo Gordon told Reuters the lower price would attract healthcare systems that act as both an insurer and a provider and typically do not seek after-market discounts.
"If you think of a pharmaceutical benefit manager, they would prefer the high list price, because their business model is extracting rebates from manufacturers and passing them on to their employer, customers or their downstream health plan customers," Gordon said.
UnitedHealth Group’s UNH.N OptumRX and Cigna Corp CI.N said last year they had deals to make Humira, as well as rivals from Amgen and others, available under the same pricing and access terms. CVS Health CVS.N, another large PBM, plans to include the drug in its recommended coverage list but has not announced terms.
JC Scott, president of the Pharmaceutical Care Management Association, said PBMs want more competition in the prescription drug marketplace and discouraged delays sought by drugmakers.
"The bottom line is that increased competition is the most effective and sustainable way to drive prescription drug costs down," he said.
LIST PRICES TO FALL
In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported.
Additional AbbVie patents continued to protect it in the United States, and the company struck deals with Amgen and others to allow rival drugs in exchange for royalty payments.
AbbVie declined to comment.
Douglas Hoey, chief executive of the National Community Pharmacists Association, said he expected U.S. prices for drugs of this type to fall about 15%-20% after new competition enters in July.
But Robert Popovian, the chief science policy officer at patient advocacy group Global Healthy Living Foundation, said it would take further market and public pressure after the summer entries to get list prices down.
Analysts expect the introduction of biosimilar competition will drive down Humira sales. They are forecasting sales of $21.2 billion in 2022, dropping to $13.4 billion this year and $8.3 billion in 2024, according to Refinitiv. Analysts expect Amgen’s biosimilar to garner sales of $747.6 million in 2023 and $933.8 million in 2024.
Marcus Snow, a rheumatologist at the University of Nebraska Medical Center, said he would prescribe adalimumab, the chemical name for Humira, based on price and each patient’s insurance coverage terms.
All things being equal, he said, he would keep existing patients on Humira and try to put new patients on the medicine that was most likely to be given preference on formularies in the future, to avoid switching.
"I wouldn't expect to see the price changes that we all hope to have in the first year," Snow said.
GRAPHIC-More U.S. competition ahead for AbbVie's Humirahttps://tmsnrt.rs/3kVaST2
(Reporting by Patrick Wingrove in New York; Editing by Caroline Humer and Bill Berkrot)
((Patrick.Wingrove@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. |
22844.0 | 2023-01-31 00:00:00 UTC | FOCUS-AbbVie's Humira gets a U.S. rival, but costs could stay high | ABBV | https://www.nasdaq.com/articles/focus-abbvies-humira-gets-a-u.s.-rival-but-costs-could-stay-high-0 | nan | nan | By Patrick Wingrove
Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited.
Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. One sets a 5% discount to Humira’s monthly price of $6,922. The other will be about half price but may not be widely available.
Most patients’ co-insurance costs are set as a percentage of list price and are expected to be calculated off the higher price.
At least another seven Humira biosimilars are expected this summer and could debut with discounted list prices. Even then, patient groups, pharmacists, doctors and academics said they will be obscured by the U.S. private insurance system of middlemen negotiation and after-market discounts called rebates.
Pharmacy benefit managers (PBMs) say that the deep discounts they receive are returned to insurers and employers to lower their overall medical costs.
Benjamin Rome, a drug pricing researcher at Harvard Medical School, said introduction of biosimilars in the United States has not sent prices tumbling as originally expected.
Unlike pills, which have extremely cheap generic copies, complex, expensive biologic drugs made from living cells cannot be exactly duplicated. Their closest alternatives are called biosimilars.
"The bottom line is it’s feasible that even if prices for Humira and biosimilars go down, this could be in the form of higher rebates to PBMs rather than actual lower prices that are passed onto patients," Rome said.
The U.S. pays the highest drug prices in the world, in part because many different private sector companies do not have the power of a single government payer.
The Biden Administration’s Inflation Reduction Act will allow the government’s Medicare program for people aged 65 and older to negotiate prices of its most costly medicines, but drugs like Humira with direct competition are excluded.
Humira - the world's biggest selling non-COVID prescription drug - is used to treat rheumatoid arthritis, Crohn’s disease, ulcerative colitis and psoriasis.
A 5% lower list price would result in a savings of about $35 a month for a person whose coinsurance payment is 10% of the list price.
Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. Amgen has launched a similar savings program for its version.
There are currently about half a dozen drugs with biosimilar competition in the United States. Prices of those have decreased up to 20%, according to a report from the National Bureau of Economic Research.
Amgen has set list prices of $1,557 and $3,288 per 40 milligram pen device, a two-week supply. Amgen executive Murdo Gordon told Reuters the lower price would attract healthcare systems that act as both an insurer and a provider and typically do not seek after-market discounts.
"If you think of a pharmaceutical benefit manager, they would prefer the high list price, because their business model is extracting rebates from manufacturers and passing them on to their employer, customers or their downstream health plan customers," Gordon said.
UnitedHealth Group’s UNH.N OptumRX and Cigna Corp CI.N said last year they had deals to make Humira, as well as rivals from Amgen and others, available under the same pricing and access terms. CVS Health CVS.N, another large PBM, plans to include the drug on its coverage list but as non-preferred with less favorable terms.
JC Scott, president of the Pharmaceutical Care Management Association, said PBMs want more competition in the prescription drug marketplace and discouraged delays sought by drugmakers.
"The bottom line is that increased competition is the most effective and sustainable way to drive prescription drug costs down," he said.
LIST PRICES TO FALL
In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported.
Additional AbbVie patents continued to protect it in the United States, and the company struck deals with Amgen and others to allow rival drugs in exchange for royalty payments.
AbbVie declined to comment.
Douglas Hoey, chief executive of the National Community Pharmacists Association, said he expected U.S. prices for drugs of this type to fall about 15%-20% after new competition enters in July.
But Robert Popovian, the chief science policy officer at patient advocacy group Global Healthy Living Foundation, said it would take further market and public pressure after the summer entries to get list prices down.
Analysts expect the introduction of biosimilar competition will drive down Humira sales. They are forecasting sales of $21.2 billion in 2022, dropping to $13.4 billion this year and $8.3 billion in 2024, according to Refinitiv. Analysts expect Amgen’s biosimilar to garner sales of $747.6 million in 2023 and $933.8 million in 2024.
Marcus Snow, a rheumatologist at the University of Nebraska Medical Center, said he would prescribe adalimumab, the chemical name for Humira, based on price and each patient’s insurance coverage terms.
All things being equal, he said, he would keep existing patients on Humira and try to put new patients on the medicine that was most likely to be given preference on formularies in the future, to avoid switching.
"I wouldn't expect to see the price changes that we all hope to have in the first year," Snow said.
GRAPHIC-More U.S. competition ahead for AbbVie's Humirahttps://tmsnrt.rs/3kVaST2
(Reporting by Patrick Wingrove in New York; Editing by Caroline Humer and Bill Berkrot)
((Patrick.Wingrove@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. In Europe, where governments negotiate drug prices, AbbVie offered up to 80% discounts in November 2018, a month after Humira went off patent, Reuters reported. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. | By Patrick Wingrove Jan 31 (Reuters) - U.S. patients will finally get access to cheaper versions of AbbVie Inc’s ABBV.N blockbuster arthritis drug Humira this year, but the cost savings are expected to be limited. Rival drugmaker Amgen Inc AMGN.O on Tuesday launched Amjevita, the first biosimilar version of AbbVie’s 20-year-old drug, with two tiers of pricing. Some patients who qualify for AbbVie’s patient assistance programs pay heavily discounted rates. |
22845.0 | 2023-01-31 00:00:00 UTC | Pfizer (PFE) Q4 Earnings and Revenues Beat Estimates | ABBV | https://www.nasdaq.com/articles/pfizer-pfe-q4-earnings-and-revenues-beat-estimates | nan | nan | Pfizer (PFE) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10.68%. A quarter ago, it was expected that this drugmaker would post earnings of $1.47 per share when it actually produced earnings of $1.78, delivering a surprise of 21.09%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Pfizer, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $24.29 billion for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $23.84 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Pfizer shares have lost about 15% since the beginning of the year versus the S&P 500's gain of 4.6%.
What's Next for Pfizer?
While Pfizer has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Pfizer: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.22 on $17.73 billion in revenues for the coming quarter and $4.41 on $74.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended December 2022. The results are expected to be released on February 9.
This drugmaker is expected to post quarterly earnings of $3.54 per share in its upcoming report, which represents a year-over-year change of +7%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level.
AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter.
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Pfizer Inc. (PFE) : 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. | Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. | Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. | Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended December 2022. AbbVie's revenues are expected to be $15.35 billion, up 3.2% from the year-ago quarter. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22846.0 | 2023-01-30 00:00:00 UTC | AbbVie (ABBV) Stock Moves -0.43%: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-moves-0.43%3A-what-you-should-know | nan | nan | AbbVie (ABBV) closed at $145.65 in the latest trading session, marking a -0.43% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.3%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 5.51%.
Heading into today, shares of the drugmaker had lost 9.49% over the past month, lagging the Medical sector's loss of 0.54% and the S&P 500's gain of 6.41% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 8.46%. Meanwhile, our latest consensus estimate is calling for revenue of $15.35 billion, up 3.15% from the prior-year quarter.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% higher. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 12.55 right now. This represents a discount compared to its industry's average Forward P/E of 14.16.
Also, we should mention that ABBV has a PEG ratio of 3.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $145.65 in the latest trading session, marking a -0.43% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 8.46%. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed at $145.65 in the latest trading session, marking a -0.43% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. | AbbVie (ABBV) closed at $145.65 in the latest trading session, marking a -0.43% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 8.46%. | AbbVie (ABBV) closed at $145.65 in the latest trading session, marking a -0.43% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 8.46%. |
22847.0 | 2023-01-30 00:00:00 UTC | Dividends for Stability, Safety in a Mixed Market | ABBV | https://www.nasdaq.com/articles/dividends-for-stability-safety-in-a-mixed-market | nan | nan | A
few weeks ago, we talked to you about the 2023 stock market outlooks from a number of Wall Street strategists. By and large, those experts were more optimistic about this year than last, but many believe we'll still have to ensure more turbulence before reaching clearer skies.
This week, we'll discuss one way to navigate this kind of market scenario—including a few defensive stocks to consider.
The Tea
One of the biggest risks to your investment portfolio is…well, yourself. When the market is extremely volatile and losses start to pile up, like they did in 2022 and 2020, some investors begin "panic selling." In other words, they don't look at each investment to determine whether they think they'll fall farther—they simply see all the stock losses they've already piled up, and sell to avoid more.
YATI Tip: Before every buy and sell, do your research. These sites can help.
Now, most of those people sell out with the idea that they'll jump back in when things are less volatile. But no one exactly knows when the market will do what it's going to do. And many people that panic-sell miss out on some of the best-performing months as the market recovers.
Bank of America's Merrill unit studied the cost of trying to "time the market." Here are three scenarios for how much money an investor would've made over a 20-year period—from the beginning of 1992 to the end of 2021—if they had put just $1,000 into the stock market.
Leave it untouched: $20,830
Miss out on the 10 top-performing months: $8,244
Miss out on the 20 top-performing months: $3,959
In other words, you'll typically get the best results from simply buying and holding.
That's easier said than done when, again, those losses start piling up. So one way to steady your hand is to invest in stocks with one or two (or both) traits:
Dividends: Dividend stocks pay cash to shareholders, usually on a regular basis, that act as another source of returns.
Low volatility: Some stocks tend to move roughly in line with the market on average. Some tend to move in a more exaggerated manner; gains can be faster, but losses can be pretty quick, too. And some stocks—low-volatility stocks—tend to act more steadily than the market.
A combination of knowing that you're still getting some returns from your stocks, even if their prices are going lower, as well as seeing some of your stocks move less drastically than the rest of the market, can help keep you calm and prevent you from making rash portfolio decisions.
YATI Tip: Another way to cut down on volatility? Spread your risk across several index funds.
The Take
To help you out with that, we've talked to Austin Graff, CFA, Co-CIO and Portfolio Manager of the TrueShares Low Volatility Equity Income ETF (DIVZ), about how to position your portfolio to better withstand the occasional market whiplash.
Market Outlook
"We don't really come up with market forecasts too frequently because it's a great way of being wrong," Graff says. "So what we do is try to figure out what the market's telling us."
Right now, the market is sending several mixed signs. For one, Graff says, the bond market is signaling rough waters ahead, but the Federal Reserve is effectively saying things are OK and we can keep rates higher for longer. "Our expectation is somewhere in the middle," he says.
Same thing goes with the equity market. Prices are recovering somewhat, indicating things are fine. "But management teams are saying differently," Graff says. "Across the board in Q4 conference calls, management is saying 2023 will be tough."
What do you do about that from a portfolio management perspective?
"It makes place to play the middle, then weight yourself a little toward the side you think is more likely," he says. "We've shifted ourselves toward the slowing-down side because we think management has a better view of what's coming up."
What to Focus On, What to Avoid
Right now, America's "real economy" (basically, goods and services) is slowing down, but we're also experiencing higher interest rates than we've seen in a long time.
"From a slowing economic perspective, you want to avoid the more cyclical names," Graff says. "Stay away from transportation stocks, and other companies that are heavily dependent on economic growth to generate earnings and cash flow," he says.
Instead, favor traits like high barriers to entry, products that can be sold in various economic environments, and business models that can perform in rough waters.
What does Graff like right now?
Defensive financials: Some market index providers—for instance, DIVZ holding CME Group (CME)—"provide defensive positioning."
Healthcare: "People are going to require healthcare services in good or bad."
Energy: "A lot of people are looking back at the past 10 years when energy had a tough time in rough economies, but when you look at supply/demand for underlying commodities, there's limited supply and demand is strong, especially with China strengthening. So we think oil could have a counter-cyclical effect."
"Then you look at the other side of things: valuations," Graff says. "Interest rates have a significant impact on valuations. Now that we have interest rates returning to a normalized level, people have to think about valuations again. You can't just go buy an expensive consumer staples company and expect it to keep getting more expensive. You need a balance between defensive names and attractive prices."
3 Low-Volatility Dividend Stocks
Graff says that the top 10 holdings of his DIVZ ETF are all names that he anticipates the fund will hold for at least the next three to five years.
"We have a long time frame in the fund," he says. "We have high-quality companies that have attractive returns on capital and very shareholder-friendly capital return policies. Those dynamics create companies that are good for holding over the long term."
But we asked Graff to describe the opportunity in a few holdings. Among them:
Johnson & Johnson (JNJ, 2.7% yield): "J&J is a unique story because they're spinning off [consumer-health unit] Kenvue to focus on the higher-growth medical-device business. So it's transitioning to become a higher-growth company but trading at historical valuations. Also, management has sworn by the dividend, and they expect to continue along that path even after the spinoff. That's a pretty big statement because the dividend is not a small part of the business." [Note: Johnson & Johnson is an S&P 500 Dividend Aristocrat—a group of companies that have improved their annual payouts every year for at least 25 years. J&J has raised its dividend for 60 years in a row.]
AbbVie (ABBV, 4.0% yield): "AbbVie is unique because they have the largest/most successful drug ever produced in Humira, which is losing exclusivity in the U.S. over the next few years. It was already lost in Europe a few years ago. But the market has a binary view. Some say with Humira going away, AbbVie is worthless. But AbbVie has new drugs [Rinvoq and Skyrizi] that are taking over the Humira burden. They also bought the Botox platform a few years ago. So they have options that will offset the revenue from Humira, and the market is just forgetting this. Also, some new products can become complements to a treatment regime that uses Humira. And if they can get themselves into treatment plans for Medicare and Medicaid, they can hold onto market share for longer than you'd expect."
Verizon (VZ, 6.5% yield): Verizon has always been the best-in-class telco [telecom company]. Now they're coming on strong thanks to investment within the space, and massive install bases. We believe they're going to grow at a reasonable rate. You look at the premium plan share: Verizon is #1 because people believe in the reliability and consistency of the network. There's a lot more pricing power in that part of the network. [The stock] has struggled over the past year. When a company as high-quality as Verizon is hurting, that's a great time to buy unless there's a long-term issue. Right now, it's an opportunity to get in on a company that provides data infrastructure at a very cheap price: a sub-10 price-to-earnings ratio and a 6%-7% dividend yield."
Beware Yield Traps
While dividend stocks do help protect against price downside, there is such a thing as too high of a dividend yield. So investors seeking out safety in dividends should keep their eyes out for "yield traps."
YATI Tip: Looking for safe sources of high yield? Here are a few ideas.
"'Yield trap'" is a pretty common term for us in the dividend space," Graff says. "It means getting lured in by a high yield that a company's paying just for them to go and cut the dividend. You thought you had valuation protection, and it disappears because they cut the dividend."
One of the ways to protect yourself is to find companies that generate significantly more cash flow than what they pay out in dividends.
"If you see a company paying a double-digit dividend yield, be skeptical," Graff says. "The market is very efficient. If a double-digit yield exists, a cut is likely happening. You usually won't find double-digit yields in companies with very high cash flow."
Riley & Kyle
Young & The Invested
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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, 4.0% yield): "AbbVie is unique because they have the largest/most successful drug ever produced in Humira, which is losing exclusivity in the U.S. over the next few years. Some say with Humira going away, AbbVie is worthless. But AbbVie has new drugs [Rinvoq and Skyrizi] that are taking over the Humira burden. | AbbVie (ABBV, 4.0% yield): "AbbVie is unique because they have the largest/most successful drug ever produced in Humira, which is losing exclusivity in the U.S. over the next few years. Some say with Humira going away, AbbVie is worthless. But AbbVie has new drugs [Rinvoq and Skyrizi] that are taking over the Humira burden. | AbbVie (ABBV, 4.0% yield): "AbbVie is unique because they have the largest/most successful drug ever produced in Humira, which is losing exclusivity in the U.S. over the next few years. Some say with Humira going away, AbbVie is worthless. But AbbVie has new drugs [Rinvoq and Skyrizi] that are taking over the Humira burden. | AbbVie (ABBV, 4.0% yield): "AbbVie is unique because they have the largest/most successful drug ever produced in Humira, which is losing exclusivity in the U.S. over the next few years. Some say with Humira going away, AbbVie is worthless. But AbbVie has new drugs [Rinvoq and Skyrizi] that are taking over the Humira burden. |
22848.0 | 2023-01-30 00:00:00 UTC | How to Maximize Your Retirement Portfolio with These Top-Ranked Dividend Stocks | ABBV | https://www.nasdaq.com/articles/how-to-maximize-your-retirement-portfolio-with-these-top-ranked-dividend-stocks-43 | nan | nan | Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.
And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans.
In today's economic environment, traditional income investments are not working.
Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over.
That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million.
In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
As we see it, dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplant low risk, low yielding Treasury and fixed-income alternatives.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
A rule of thumb for finding solid income-producing stocks is to seek those that average 3% dividend yield, and positive yearly dividend growth. These stocks can help combat inflation by boosting dividends over time.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.05%. This compares to the Large Cap Pharmaceuticals industry's yield of 2.36% and the S&P 500's yield of 1.62%. The company's annualized dividend growth in the past year was 8.46%. Check AbbVie (ABBV) dividend history here>>>
Conagra Brands (CAG) is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 3.62% compared to the Food - Miscellaneous industry's yield of 0% and the S&P 500's yield. The annualized dividend growth of the company was 5.6% over the past year. Check Conagra Brands (CAG) dividend history here>>>
Currently paying a dividend of $0.24 per share, MidWestOne (MOFG) has a dividend yield of 3.08%. This is compared to the Banks - Midwest industry's yield of 2.66% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.56%. Check MidWestOne (MOFG) dividend history here>>>
But aren't stocks generally more risky than bonds?
It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market.
Combating the impact of inflation is one advantage of owning these dividend-paying stocks. Here's why: many of these stable, high-quality companies increase their dividends over time, which translates to rising dividend income that offsets the effects of inflation.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
You may be thinking, "I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF." This approach can make sense, but be aware that some mutual funds and specialized ETFs carry high fees, which may reduce your dividend gains or income, and defeat the goal of this dividend investment approach. If you do wish to invest in a fund, do your research to find the best-quality dividend funds with the lowest fees.
Bottom Line
Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Conagra Brands (CAG) : Free Stock Analysis Report
MidWestOne Financial Group, Inc. (MOFG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.05%. Check AbbVie (ABBV) dividend history here>>> Conagra Brands (CAG) is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 3.62% compared to the Food - Miscellaneous industry's yield of 0% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report MidWestOne Financial Group, Inc. (MOFG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report MidWestOne Financial Group, Inc. (MOFG) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.05%. Check AbbVie (ABBV) dividend history here>>> Conagra Brands (CAG) is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 3.62% compared to the Food - Miscellaneous industry's yield of 0% and the S&P 500's yield. | Check AbbVie (ABBV) dividend history here>>> Conagra Brands (CAG) is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 3.62% compared to the Food - Miscellaneous industry's yield of 0% and the S&P 500's yield. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.05%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report MidWestOne Financial Group, Inc. (MOFG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Check AbbVie (ABBV) dividend history here>>> Conagra Brands (CAG) is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 3.62% compared to the Food - Miscellaneous industry's yield of 0% and the S&P 500's yield. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 4.05%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report MidWestOne Financial Group, Inc. (MOFG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22849.0 | 2023-01-30 00:00:00 UTC | Why AbbVie is a Top Socially Responsible Dividend Stock (ABBV) | ABBV | https://www.nasdaq.com/articles/why-abbvie-is-a-top-socially-responsible-dividend-stock-abbv | nan | nan | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society — for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.37% of the underlying holdings of the fund, which owns $48,715,638 worth of ABBV shares.
The annualized dividend paid by AbbVie Inc is $5.92/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/12/2023. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Eli Lilly (LLY), and Johnson & Johnson (JNJ).
Top 25 Socially Responsible Dividend Stocks — Income To Feel Good About »
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Air Products and Chemicals 13F Filers
BTCS YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.37% of the underlying holdings of the fund, which owns $48,715,638 worth of ABBV shares. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.37% of the underlying holdings of the fund, which owns $48,715,638 worth of ABBV shares. The annualized dividend paid by AbbVie Inc is $5.92/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/12/2023. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.37% of the underlying holdings of the fund, which owns $48,715,638 worth of ABBV shares. The annualized dividend paid by AbbVie Inc is $5.92/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/12/2023. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.37% of the underlying holdings of the fund, which owns $48,715,638 worth of ABBV shares. The annualized dividend paid by AbbVie Inc is $5.92/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/12/2023. |
22850.0 | 2023-01-30 00:00:00 UTC | Down 14.5%, Is Pfizer Stock a Screaming Buy? | ABBV | https://www.nasdaq.com/articles/down-14.5-is-pfizer-stock-a-screaming-buy | nan | nan | As the major U.S. stock indices fell into bear territory in 2022, big pharma stocks quickly became an oasis for nervous investors -- in many cases thanks to their largely recession-proof business models, reliable cash flows, and dependable quarterly dividends.
AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), and Merck (NYSE: MRK) all trounced the broader markets last year:
LLY Total Return Level data by YCharts.
One of the rare exceptions to this trend was Pfizer (NYSE: PFE). Last year, the drugmaker's shares sank by 10.4%, despite the company's stellar earnings growth over the course of the year. Unfortunately, Pfizer's stock hasn't been able to shake off this downward momentum with the change of the calendar year. The pharma titan's shares, in fact, have dropped by another 14.5% during the first four weeks of 2023.
Is it time to catch this falling knife? Let's dig deeper to find out.
Pfizer's valuation, dividend, and development capacity are buy signals
Pfizer's breathtaking nosedive over the prior 13 months isn't all bad news -- at least not for bargain hunters. On the valuation side, the pharma titan's shares are now trading at a highly compressed price-to-earnings (P/E) ratio of 6.7. The industry average for this key valuation metric, by contrast, presently stands at 24.2. What's more, Pfizer's stock hasn't been this cheap, from a P/E standpoint, since 2014.
The drugmaker's declining share price has also resulted in its dividend yield ballooning to a notable 3.75% on an annualized basis. Within the large-cap pharmaceutical space, the average dividend yield currently sits at 3.27%. Pfizer stock thus offers one of the industry's more generous yields.
Thanks to its COVID-19 vaccine Comirnaty and antiviral drug Paxlovid, Pfizer also has plenty of financial firepower for business development (BD). Despite executing multiple recent deals for high-value medications like the migraine drug Nurtec, the sickle cell disease therapy Oxbryta, and the ulcerative colitis candidate etrasimod, Pfizer still had approximately $36 billion in its coffers at the end of the third quarter of 2022.
As a result, the drugmaker can choose to continue its string-of-pearls BD strategy, or it could conceivably pursue a single large acquisition. Pfizer, in short, has options on the BD front to create value for shareholders.
Pfizer's near-term earnings potential is a drag
Pfizer does have some fundamental problems, however. The anticipated decline in COVID-19 product sales this year, and a series of expiring patents for drugs like Eliquis, Ibrance, and Xeljanz between 2025 and 2030, are expected to act as a major drag on earnings in the short term.
Management has noted that Pfizer's diverse pipeline and recent acquisitions ought to offset most, if not all, of these anticipated sales declines by 2030. But this argument is heavily contingent upon the clinical success of assets in hematology and in hard-to-treat indications such as Duchenne's muscular dystrophy. So, as things stand now, Pfizer might have trouble meeting its long-term revenue forecast.
What's the verdict?
All things considered, Wall Street has probably gone overboard on its bearish sentiment toward Pfizer stock. Granted, the drugmaker is dealing with some strong headwinds from COVID-19 sales declines and a bevy of upcoming patent expirations.
But Pfizer's internal research and development engine has been firing on all cylinders lately, and it has the financial capacity to simply buy its way out of a jam if one or more key late-stage assets fail to land in the clinic. Meanwhile, investors can bank on the stock's above-average dividend yield as the company slowly works through these headwinds.
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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), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), and Merck (NYSE: MRK) all trounced the broader markets last year: LLY Total Return Level data by YCharts. Despite executing multiple recent deals for high-value medications like the migraine drug Nurtec, the sickle cell disease therapy Oxbryta, and the ulcerative colitis candidate etrasimod, Pfizer still had approximately $36 billion in its coffers at the end of the third quarter of 2022. The anticipated decline in COVID-19 product sales this year, and a series of expiring patents for drugs like Eliquis, Ibrance, and Xeljanz between 2025 and 2030, are expected to act as a major drag on earnings in the short term. | AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), and Merck (NYSE: MRK) all trounced the broader markets last year: LLY Total Return Level data by YCharts. Pfizer's valuation, dividend, and development capacity are buy signals Pfizer's breathtaking nosedive over the prior 13 months isn't all bad news -- at least not for bargain hunters. See the 10 stocks *Stock Advisor returns as of January 9, 2023 George Budwell has no position in any of the stocks mentioned. | AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), and Merck (NYSE: MRK) all trounced the broader markets last year: LLY Total Return Level data by YCharts. Pfizer's valuation, dividend, and development capacity are buy signals Pfizer's breathtaking nosedive over the prior 13 months isn't all bad news -- at least not for bargain hunters. 10 stocks we like better than Pfizer When our award-winning analyst team has a stock tip, it can pay to listen. | AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), and Merck (NYSE: MRK) all trounced the broader markets last year: LLY Total Return Level data by YCharts. The anticipated decline in COVID-19 product sales this year, and a series of expiring patents for drugs like Eliquis, Ibrance, and Xeljanz between 2025 and 2030, are expected to act as a major drag on earnings in the short term. But Pfizer's internal research and development engine has been firing on all cylinders lately, and it has the financial capacity to simply buy its way out of a jam if one or more key late-stage assets fail to land in the clinic. |
22851.0 | 2023-01-30 00:00:00 UTC | Eli Lilly (LLY) Lymphoma Candidate Pirtobrutinib Gets FDA Nod | ABBV | https://www.nasdaq.com/articles/eli-lilly-lly-lymphoma-candidate-pirtobrutinib-gets-fda-nod | nan | nan | Eli Lilly and Company LLY announced that the FDA, under an accelerated approval pathway, approved BTK inhibitor, pirtobrutinib (100 mg & 50 mg tablets) for the treatment of relapsed or refractory mantle cell lymphoma (MCL), in adult patients. The drug will be marketed by the trade name of Jaypirca and can be administered in patients who have had at least two lines of systemic therapy, including a BTK inhibitor.
The approval was based on Lilly’s global, open-label, phase I/II (BRUIN) study for multicenter evaluation of the administration of Jaypirca in adult patients with hematologic malignancies, including MCL. The study comprised a phase I study to evaluate dose escalation, a phase Ib study to evaluate the combination component and a phase II study to expand the dosage in the patient population. The primary and secondary endpoints in each of the phases of the study were met with statistical significance in terms of safety and efficacy measured by an overall response rate of 50%, with complete response observed in 13% of the patient population. The continued approval of Jaypirca will be subject to verification and description of clear medical benefits in a confirmatory study by Lilly.
In the past year, shares of Lilly have risen 39.4% compared with the industry’s rise of 9.7%.
Image Source: Zacks Investment Research
Adverse reactions commonly observed in approximately 20% of the total patient population included decreased neutrophil count, decreased hemoglobin, decreased platelet count, fatigue, musculoskeletal pain, decreased lymphocyte count, bruising and diarrhea.
Management announced that Jaypirca will be available in the United States in the coming weeks and expressed the satisfaction of an unmet medical need in patients living with MCL who could no longer be treated with BTK inhibitors. The confirmatory phase III study (BRUIN MCL-321) is presently enrolling patients.
MCL is a rare form of B-cell non-Hodgkin lymphomas observed in about one out of 200000 people worldwide, annually. It is caused by the malignant transformation of a B lymphocyte.
However, Lilly’s Jaypirca is subject to stiff competition from AbbVie’s ABBV Imbruvica, which is approved for hematological cancers in five distinct disease areas. In the third quarter of 2023, AbbVie’s U.S. sales of Imbruvica grossed $849 million, down 23.5% from the year-ago figure. The U.S. sales of Imbruvica are being hurt by lower new patient starts in chronic lymphocytic leukemia due to delayed recovery from the pandemic and increasing competition from newer therapies. AbbVie’s share of profit from the international sales of Imbruvica rose 7.6% to $286 million. AbbVie market Imbruvica in partnership with J&J.
Zacks Rank and Stocks to Consider
Eli Lilly and Company currently holds a Zacks Rank #4 (Sell).
Some better-ranked large-cap pharmaceutical companies are Novo Nordisk NVO and Sanofi SNY, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the Zacks Consensus Estimate for Novo Nordisk’s 2022 earnings per share has increased from $3.26 to $3.40. During the same period, the earnings estimate per share for 2023 has increased from $4.00 to $4.18. In the past year, shares of Novo Nordisk have increased by 38.3%. Novo Nordisk delivered a four-quarter earnings surprise of 3.09% on average.
In the past 60 days, the estimate for Sanofi’s 2022 earnings per share has increased from $4.13 to $4.32. During the same period, the earnings estimate per share estimate for 2023 has increased from $4.30 to $4.41. In the past year, the shares of Sanofi have decreased by 6.7%.
Sanofi’s earnings beat estimates in each of the last four quarters, witnessing an earnings surprise of 9.50% on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, Lilly’s Jaypirca is subject to stiff competition from AbbVie’s ABBV Imbruvica, which is approved for hematological cancers in five distinct disease areas. In the third quarter of 2023, AbbVie’s U.S. sales of Imbruvica grossed $849 million, down 23.5% from the year-ago figure. AbbVie’s share of profit from the international sales of Imbruvica rose 7.6% to $286 million. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Lilly’s Jaypirca is subject to stiff competition from AbbVie’s ABBV Imbruvica, which is approved for hematological cancers in five distinct disease areas. In the third quarter of 2023, AbbVie’s U.S. sales of Imbruvica grossed $849 million, down 23.5% from the year-ago figure. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Lilly’s Jaypirca is subject to stiff competition from AbbVie’s ABBV Imbruvica, which is approved for hematological cancers in five distinct disease areas. In the third quarter of 2023, AbbVie’s U.S. sales of Imbruvica grossed $849 million, down 23.5% from the year-ago figure. | However, Lilly’s Jaypirca is subject to stiff competition from AbbVie’s ABBV Imbruvica, which is approved for hematological cancers in five distinct disease areas. In the third quarter of 2023, AbbVie’s U.S. sales of Imbruvica grossed $849 million, down 23.5% from the year-ago figure. AbbVie’s share of profit from the international sales of Imbruvica rose 7.6% to $286 million. |
22852.0 | 2023-01-28 00:00:00 UTC | 7 Dividend Stocks to Buy Now or You’ll Be Kicking Yourself Later | ABBV | https://www.nasdaq.com/articles/7-dividend-stocks-to-buy-now-or-youll-be-kicking-yourself-later | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The recent rally in equities may be prying some cash off the sidelines. But if you’re investing in pure growth stocks and avoiding dividend stocks altogether, I’d urge caution.
No, I’m not talking about what the Federal Reserve will do with interest rates. I’m looking at corporate layoff announcements, the weak housing market, and inflation that may not be going up (but is certainly not going down), at least not where Americans need it most.
I know what the bulls are saying. As I write this, more than 60% of the companies that reported this earnings season posted higher earnings. However, earnings are a lagging indicator. I’m not hearing a bullish outlook on the economy from many of these companies, at least looking out over the next couple of quarters.
This means that there may be one or more legs down to go for stocks. One way to manage through this situation is to buy dividend stocks.
I usually like to provide a little something for every investor. But this time, I’m sticking to some of the top dividend stocks on the market today. For some investors, that means looking at dividend yield. Others look at the annual payout per share. That’s the money that’s going back into my brokerage account every quarter – the money that makes the magic of compounding work.
So, let’s get right to it. Here are seven dividend stocks that you should buy now, or you’ll wish you had.
CVX Chevron $179.45
VZ Verizon $40.64
KO Coca-Cola $60.49
PEP PepsiCo $169.62
ABBV AbbVie $146.28
LOW Lowe’s $202.49
UNH UnitedHealth Group $486.05
Chevron (CVX)
Source: tishomir / Shutterstock.com
Chevron (NYSE:CVX) is one of the first dividend stocks that came to mind, mainly because the company recently announced a 6% increase in its quarterly dividend. This makes it 37 consecutive years of dividend increases for the Dividend Aristocrat.
Chevron’s dividend is growing this year and will likely continue growing. The company’s payout ratio is just over 32%. Its dividend yield of 3.2% is slightly better than the average of the S&P 500. But it’s below the sector average. That shouldn’t concern investors too much, because with this dividend increase, Chevron will have paid out $5.77 per share in dividends for the year.
CVX stock has been moving up and down with oil prices. But some economists and industry analysts suggest that Russia’s continued war with Ukraine and China’s economy reopening is putting a floor of around $80 for crude oil prices. That means that Chevron may have more runway for growth, even after a 40% gain in the last 12 months.
Verizon (VZ)
Source: Ken Wolter / Shutterstock.com
If you’re looking for dividend stocks with a nice payout and an excellent yield, you should check out the current situation with Verizon Communications (NYSE:VZ). The wireless company reported earnings on Jan. 24, announcing a quarterly dividend of 65 cents per share. That gives VZ stock an annual payout of approximately $2.60 per share. Notably, Verizon has also been increasing its dividend for the last 18 consecutive years.
On top of that, it has one of the best dividend yields in the entire market at over 6.4%. There is some concern about the company’s payout ratio, which is currently around 50%. This is because Verizon’s earnings are projected to slow to between $4.55 and $4.85 per share in 2023, as opposed to the $5.17 it posted in 2022.
However, at just under 8-times earnings, the stock is cheap. And the company believes that much of the spending to build out its 5G infrastructure is behind it. That creates an opportunity for the company to focus on increasing earnings even as it still is heavily reliant on its consumer business.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Many investors would say that the stocks owned by Warren Buffett are like the simple black dress – always in fashion. That may be a weird way to think about Coca-Cola (NYSE:KO), but there’s nothing strange about owning the company’s stock.
Coca-Cola fits Buffett’s definition of a “forever” stock. But critics might note that KO stock has only grown 30% over the past five years and is currently just above pre-pandemic levels. Plus, at 26-times earnings, there are cheaper options out there.
But the story of Coca-Cola is its iconic brand that allows the company to generate steady earnings back to shareholders. Coke has increased its dividend for 61 consecutive years, making it part of the exclusive Dividend Kings group. And iys dividend yield of 2.9% is above the sector average of 2.62%.
Like that simple black dress, Coca-Cola isn’t a stock you’ll embrace daily. But in times like these, you’ll be glad it’s in your portfolio.
PepsiCo (PEP)
Source: suriyachan / Shutterstock.com
When it comes to the taste of their products, there may be a difference between Coca-Cola and PepsiCo (NASDAQ:PEP). But as dividend stocks, there’s not much distinction, so it’s good to have both stocks in your portfolio.
What many investors prefer about PepsiCo is that the company has branched out from fighting the cola wars. Pepsi has become a snack food giant that houses the Frito-Lay’s and Quaker Foods brands, among others. As I wrote in early January, PepsiCo “straddles the line between “junk foods” and healthy options.”
As for the company’s dividend, PepsiCo currently pays $4.60 per share annually with a yield of 2.7%. Like Coca-Cola, PepsiCo is a Dividend King. The company has increased its dividend in each of the last 51 years. There could be some concern over a payout ratio of 65%, but there is no sign that the dividend is in trouble.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
I can’t fault investors for thinking that AbbVie (NYSE:ABBV) is a “show me” story in this market. The company’s upcoming patent expiry for its key Humira drug in Europe, with a pending expiry in the U.S., means that this is a biotech company with an uncertain outlook. Indeed, Humira has been a cash cow for AbbVie, so investors are right to show some concern.
So far, however, it appears that AbbVie has passed its check-up. A big reason for that is the revenue being delivered by Skyrizi and Rinvoq. These two drugs are expected to bring in approximately $15 billion over the next three years.
And then there’s the dividend. AbbVie is another Dividend King with a history of increasing its dividend for the last 51 years. It currently sports a yield of 4% and an impressive annual payout of $5.92 per share. AbbVie’s payout ratio of over 70% is probably not sustainable. But ABBV stock is trading at just 19-times earnings, roughly equivalent to the S&P 500.
Lowe’s (LOW)
Source: Helen89 / Shutterstock.com
Fairways and greens are a good mantra for golfers facing volatility. It can also apply to dividend stocks like Lowe’s (NYSE:LOW), which can keep your lawn green, as well as your portfolio.
Okay, that was terrible, but it does lead to my point. Lowe’s is a home improvement company. And home improvement doesn’t stop just because the housing market is weak. People need to “love the one they’re with,” so to speak, and Lowe’s is well-positioned to help with products for the professional and the do-it-yourselfer.
Lowe’s is yet another Dividend King on this list, with a yield of 2.1% and an annual payout of $4.20 per share. The company also has an attractive price-earnings ratio of just 19-times earnings, equivalent to the S&P 500. And with a profit margin that is above the sector average, investors should feel confident about the company’s earnings growth in the coming years.
United Health Group (UNH)
Source: Ken Wolter / Shutterstock.com
Last on this list of dividend stocks is United Health Group (NYSE:UNH). I’ve included this stock because healthcare continues to be a hot sector for investors.
Joel Baglole recently reminded investors that United Health Group is “the largest healthcare company by revenue and the largest insurance company by net premiums in the world.” Looking at sector leaders is an excellent place to start when you’re looking for dividend stocks to buy for the long haul.
And if investors are looking for a short-term catalyst, the company’s pharmacy services arm, Optum Rx, just launched Price Edge. This drug price comparison tool helps its members get the lowest prices for generic drugs.
Then you can see the company’s dividend. The yield of 1.3% is unimpressive compared to the S&P 500 average. However, it’s desirable among other healthcare stocks. And with a payout ratio that is only 30%, the dividend looks very sustainable.
On the date of publication, Chris Markoch had LONG positions in CVX and LOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
The post 7 Dividend Stocks to Buy Now or You’ll Be Kicking Yourself Later 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. | CVX Chevron $179.45 VZ Verizon $40.64 KO Coca-Cola $60.49 PEP PepsiCo $169.62 ABBV AbbVie $146.28 LOW Lowe’s $202.49 UNH UnitedHealth Group $486.05 Chevron (CVX) Source: tishomir / Shutterstock.com Chevron (NYSE:CVX) is one of the first dividend stocks that came to mind, mainly because the company recently announced a 6% increase in its quarterly dividend. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com I can’t fault investors for thinking that AbbVie (NYSE:ABBV) is a “show me” story in this market. Indeed, Humira has been a cash cow for AbbVie, so investors are right to show some concern. | CVX Chevron $179.45 VZ Verizon $40.64 KO Coca-Cola $60.49 PEP PepsiCo $169.62 ABBV AbbVie $146.28 LOW Lowe’s $202.49 UNH UnitedHealth Group $486.05 Chevron (CVX) Source: tishomir / Shutterstock.com Chevron (NYSE:CVX) is one of the first dividend stocks that came to mind, mainly because the company recently announced a 6% increase in its quarterly dividend. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com I can’t fault investors for thinking that AbbVie (NYSE:ABBV) is a “show me” story in this market. Indeed, Humira has been a cash cow for AbbVie, so investors are right to show some concern. | CVX Chevron $179.45 VZ Verizon $40.64 KO Coca-Cola $60.49 PEP PepsiCo $169.62 ABBV AbbVie $146.28 LOW Lowe’s $202.49 UNH UnitedHealth Group $486.05 Chevron (CVX) Source: tishomir / Shutterstock.com Chevron (NYSE:CVX) is one of the first dividend stocks that came to mind, mainly because the company recently announced a 6% increase in its quarterly dividend. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com I can’t fault investors for thinking that AbbVie (NYSE:ABBV) is a “show me” story in this market. Indeed, Humira has been a cash cow for AbbVie, so investors are right to show some concern. | CVX Chevron $179.45 VZ Verizon $40.64 KO Coca-Cola $60.49 PEP PepsiCo $169.62 ABBV AbbVie $146.28 LOW Lowe’s $202.49 UNH UnitedHealth Group $486.05 Chevron (CVX) Source: tishomir / Shutterstock.com Chevron (NYSE:CVX) is one of the first dividend stocks that came to mind, mainly because the company recently announced a 6% increase in its quarterly dividend. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com I can’t fault investors for thinking that AbbVie (NYSE:ABBV) is a “show me” story in this market. Indeed, Humira has been a cash cow for AbbVie, so investors are right to show some concern. |
22853.0 | 2023-01-28 00:00:00 UTC | 2 of the Best Dividend Stocks to Own in 2023 | ABBV | https://www.nasdaq.com/articles/2-of-the-best-dividend-stocks-to-own-in-2023 | nan | nan | Investors don't yet know what to expect in 2023. The market may slowly stroll along the path to recovery. Or it could race ahead, with stock prices soaring. In either case, it's a good idea to add some dividend stocks to your portfolio. They'll offer you guaranteed income no matter what the market does.
But which players to choose? If you want to benefit from passive income and potential growth, I've got two stocks in mind. They both are Dividend Kings. That means they've increased their dividend for at least the past 50 years. This shows a commitment to rewarding shareholders. The stocks I'm talking about also have reached a turning point that could lead to earnings growth down the road. So, let's check out these top dividend stocks to own in 2023.
1. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) will pay you $4.52 a share annually just for being a shareholder. That means if you own 100 shares, the pharmaceutical giant will offer you $452. Pretty good deal, right? This is at a dividend yield of 2.67%. That's higher than the industry average of about 2.15%, according the NYU Stern School of Business.
And more growth may be on the horizon for J&J. That's because the company this year will spin off its slowest-growing unit into a separate company. Consumer health -- the business that sells brands like Tylenol and Neutrogena -- will become Kenvue.
Consumer health's revenue rose 3.9% on an adjusted operational basis last year. Adjusted operational removes items that make comparison difficult, like the impact of acquisitions, for example. The pharmaceutical business and the medtech unit posted growth of 6.8% and 6.1%, respectively. So, the upcoming spinoff should lead to a higher overall growth rate for J&J.
J&J aims to reach $60 billion in pharmaceutical sales by 2025. That implies 15% growth from today's level. The picture looks bright for medtech, too. That business has about 12 platforms that deliver more than $1 billion in annual sales. J&J's pipeline of more than 100 candidates and increasing investment in research and development add to growth potential, too.
The consumer health spinoff marks the start of a new phase of growth. And this move and the strength of J&J's other businesses could lift the shares in the near term and over time.
2. AbbVie
AbbVie (NYSE: ABBV) pays investors an annual dividend of $5.92, representing a yield of 4.02%. And the company's rising free cash flow over time indicates it has what it takes to continue increasing payments.
ABBV Free Cash Flow data by YCharts
You can count on AbbVie for solid passive income and growth of that income over time. But you also can count on this pharmaceutical company for earnings growth. Like J&J, AbbVie's 2023 will be one of transition. Part of this may be seen as negative at first. AbbVie's biggest blockbuster, immunology drug Humira, is set to face competition.
At the same time, though, AbbVie's newer immunology drugs, Skyrizi and Rinvoq, are gaining ground. The company predicts that together the two will generate more than $17 billion in revenue in 2025. By 2027, AbbVie expects them to surpass Humira's peak annual revenue of more than $20 billion. AbbVie aims to win approval for Skyrizi and Rinvoq in all of Humira's indications. With eight approvals, combined, for the two drugs, it's well on the way.
And thanks to its broad portfolio of products, AbbVie is on track to become the No. 1 pharmaceutical company by prescription drug market share in 2026, according to Evaluate.
All of this means right now is the perfect moment to get in on AbbVie. You'll benefit from passive income right away -- and the new chapter in AbbVie's earnings story as it unfolds.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's biggest blockbuster, immunology drug Humira, is set to face competition. AbbVie AbbVie (NYSE: ABBV) pays investors an annual dividend of $5.92, representing a yield of 4.02%. ABBV Free Cash Flow data by YCharts You can count on AbbVie for solid passive income and growth of that income over time. | AbbVie AbbVie (NYSE: ABBV) pays investors an annual dividend of $5.92, representing a yield of 4.02%. ABBV Free Cash Flow data by YCharts You can count on AbbVie for solid passive income and growth of that income over time. Like J&J, AbbVie's 2023 will be one of transition. | AbbVie AbbVie (NYSE: ABBV) pays investors an annual dividend of $5.92, representing a yield of 4.02%. ABBV Free Cash Flow data by YCharts You can count on AbbVie for solid passive income and growth of that income over time. Like J&J, AbbVie's 2023 will be one of transition. | AbbVie AbbVie (NYSE: ABBV) pays investors an annual dividend of $5.92, representing a yield of 4.02%. ABBV Free Cash Flow data by YCharts You can count on AbbVie for solid passive income and growth of that income over time. Like J&J, AbbVie's 2023 will be one of transition. |
22854.0 | 2023-01-26 00:00:00 UTC | Interesting ABBV Put And Call Options For March 10th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-march-10th | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 10th 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 $3.25. 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 $141.75 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $147.47/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 2.24% return on the cash commitment, or 19.03% 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 $3.80. If an investor was to purchase shares of ABBV stock at the current price level of $147.47/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 4.29% if the stock gets called away at the March 10th 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. 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 2.58% boost of extra return to the investor, or 21.87% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 26%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $147.47) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 10th 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 10th contracts and identified one put and one call contract of particular interest. | 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 $3.80. 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 10th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 10th 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 10th expiration. |
22855.0 | 2023-01-25 00:00:00 UTC | Want Safety and Growth in 2023? Try These Dividend Stocks. | ABBV | https://www.nasdaq.com/articles/want-safety-and-growth-in-2023-try-these-dividend-stocks. | nan | nan | Last year was a tough one for most companies and investors. The three major indexes touched bear territory. And even the strongest of companies saw their share prices slip. Everyone is hoping 2023 will bring better days. History indicates this might happen. Still, to maximize your chances of winning this year and over the long term, it's best to be prepared for any situation.
How should investors do that? By looking for safety and growth. You'll find that in certain dividend stocks. Often, they're thought of as safe, but slow when it comes to growth. That's not always the case, though. Yes, they're safe because they pay you annually for holding the stock -- no matter how the stock or general market performs. But some dividend stocks also can bring you growth over time. Let's consider two to buy in 2023.
1. AbbVie
AbbVie (NYSE: ABBV) makes the world's best-selling drug. The immunology treatment Humira brought in $20 billion in 2021. The bad news is that product is set to face competition as of this month, and that will weigh on sales.
But here's why AbbVie is about to embark on a whole new phase of growth. The company has been working to bring its two newer immunology treatments -- Rinvoq and Skyrizi -- to market in all of Humira's indications plus others. So far, the plan is working. The U.S. Food and Drug Administration has approved the drugs in five and three indications, respectively.
AbbVie expects peak sales of Rinvoq and Skyrizi to beat those of Humira by 2027. The company forecasts more than $21 billion in annual sales. And the two drugs are set to generate more than $17.5 billion in sales as early as 2025. AbbVie also sells dozens of other products in high-growth areas such as aesthetics and neuroscience.
So, the company has what it takes to bring investors growth soon -- and over time. Now let's talk safety. AbbVie pays an annual dividend of $5.92 a share. That represents a dividend yield of 3.96%. This is much higher than the pharmaceutical industry's average yield of 2.15%, according to NYU Stern School of Business data. And AbbVie's rising free cash flow indicates it has what it takes to keep increasing its dividend.
ABBV Free Cash Flow data by YCharts
This combination of blockbuster products that patients need and a dividend you can count on make AbbVie a stock to buy -- no matter what the market does this year.
2. Target
Target (NYSE: TGT) is another company that offers a higher dividend than its peers. The retailer pays a dividend of $4.32 a share, which comes out to a yield of 2.62%. The average yield for the industry is less than 2%.
Target and AbbVie both are part of a dividend elite known as the Dividend Kings. These are companies that have increased their dividends for at least the past 50 years. This shows sharing their success with shareholders is important to them. So, they're likely to continue doing so.
Last year, Target stock suffered along with many other retailers. Like peers, Target faced higher costs due to rising inflation -- and higher prices hurt its shoppers' buying power, too. As a result, the company's operating margin suffered. And the share price sank 35% in 2022.
But even in this tough environment, Target still managed to grow. The retailer reported its 22nd consecutive quarter of comparable-sales growth in the most recent quarter. It also gained market share across all of its product categories. And Target's owned brands -- which represent higher margins for the retailer -- grew at 2 times the rate of the whole enterprise.
Today, Target is taking steps to become more efficient. The company expects this plan to save at least $2 billion over the coming three years. At the same time, it continues to invest in store revamps and its fulfillment capabilities, which should prepare the terrain for growth down the road.
The decline in Target's stock last year left it trading at 29 times forward earnings estimates. That's down from more than 40 a year ago. This stock looks like a bargain, because Target offers you the security of passive income and a bright long-term growth picture.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV Free Cash Flow data by YCharts This combination of blockbuster products that patients need and a dividend you can count on make AbbVie a stock to buy -- no matter what the market does this year. AbbVie AbbVie (NYSE: ABBV) makes the world's best-selling drug. But here's why AbbVie is about to embark on a whole new phase of growth. | And AbbVie's rising free cash flow indicates it has what it takes to keep increasing its dividend. ABBV Free Cash Flow data by YCharts This combination of blockbuster products that patients need and a dividend you can count on make AbbVie a stock to buy -- no matter what the market does this year. AbbVie AbbVie (NYSE: ABBV) makes the world's best-selling drug. | ABBV Free Cash Flow data by YCharts This combination of blockbuster products that patients need and a dividend you can count on make AbbVie a stock to buy -- no matter what the market does this year. AbbVie AbbVie (NYSE: ABBV) makes the world's best-selling drug. But here's why AbbVie is about to embark on a whole new phase of growth. | AbbVie AbbVie (NYSE: ABBV) makes the world's best-selling drug. But here's why AbbVie is about to embark on a whole new phase of growth. AbbVie expects peak sales of Rinvoq and Skyrizi to beat those of Humira by 2027. |
22856.0 | 2023-01-25 00:00:00 UTC | Is the Pain Over for Baudax Bio Investors after a 70% Spike? | ABBV | https://www.nasdaq.com/articles/is-the-pain-over-for-baudax-bio-investors-after-a-70-spike | nan | nan | Baudax Bio (NASDAQ: BXRX) shares spiked as much as 70% on its announcement of positive interim phase 2 clinical trials for its pain medicine BX1000. While the interim positive outcome is based on a 20-patient group, it expects to complete the phase 2 trial with 80 patients by the end of the first quarter of 2023.
The dramatic spike in the stock resulted from the massive volume, which surged to over 45 million shares on the announcement on Jan. 24, 2023. The average daily trading volume is usually around 242,000 shares. The stock has a 52-week high of $306.46 and a low of $1.55. This stock is a high-risk and highly volatile speculation play for anyone considering it.
What Do They Do?
Baudax Bio is a Pennsylvania-based developmental-stage biotechnology firm with approximately 80 employees. The Company did just over $1.3 million in revenues with over ($22,500,000) in net losses.
The Company has a single FDA-approved medicine Anjeso, which it discontinued at the end of 2022. It has multiple neuromuscular blocking agents (NMBA) in various stages of clinical studies.
Some of the larger pharmaceutical companies that make NMBA include AbbVie Inc. (NYSE: ABBV), Pfizer (NYSE: PFE), Allergan PLC (NYSE: AGN), and Merck & Co. Inc (NYSE: MRK). These are all potential suitors or partners if the BX clinical trials are positive.
Troubled History of Commercialization
Baudax has yet to be very successful in commercializing its products. In an SEC filing on Dec. 30, 2022, the Company terminated its sales personnel for Anjeso, its first commercial product for pain. The FDA approved Anjeso (Meloxicam) on Feb. 20, 2020, for injection to manage severe pain alone or in conjunction with other non-NSAID analgesics.
The Company said that although it has discontinued producing the drug, it will continue to evaluate alternative ways to monetize Anjeso both in the U.S. and internationally.
They also mentioned they've started enrolling patients in the phase 2 trial of BX1000, an intermediate NMBA for pain. The clinical trial involves patients undergoing abdominal surgical conditions. The Company expects to complete enrollment in the study by the end of Q1 2023, which an interim analyst before that.
Positive Interim Phase 2 Trial Outcomes for BX1000
Fast forward to Jan. 24, 2023, Baudax posted a positive outcome in its phase 2 trial of BX1000. The interim analysis focused on assessing the intubating conditions of 20 patients after using BX1000. It noted that all patients had good or excellent intubating conditions at 60 seconds with no severe or adverse side effects, and the drug was well tolerated.
The full study intends to evaluate NMB in 80 adults undergoing elective surgery using total intravenous anesthesia.
CEO Comments
Baudax Bio CEO Gerri Harwood commented, “We are encouraged by the results of the first interim analysis of the BX1000 Phase II surgery trial. We believe the use of BX1000, combined with our reversal agent, BX3000, could make for precise control of timing under neuromuscular paralysis for surgical patients, which could result in time and cost savings for patients and hospitals alike. We look forward to completing enrollment in the study in Q1 and sharing the topline results for the study in April 2023. The Company will continue its study through completion with topline results due out in April."
BX2000 and BX3000
Its BX- series of non-opioid medicines are designed to treat pain during elective surgeries. It also has intranasal Dex-IN (Dexmedetomidine) currently in phase 2 active clinical trials for peri-procedural and cancer breakthrough pain. They are scheduled to report fiscal Q4 2023 earnings in May 2023.
The Company also has BX2000, an ultra-short-acting NMBS, in a dose escalation study with healthy volunteers, which it expects to complete in 2023. Its BX3000 is currently in pre-clinical studies. If the studies are positive, there is speculation that the Company may be acquired by a more significant pharmaceutical player or sign a licensing agreement.
Based on its history, the Company isn't able to commercialize its medicine on its own. The ultra-thin float has made it a super volatile stock only suitable for the most risk-averse speculators looking for a lotto ticket-like speculation.
Daily Descending Triangle Breakout
BXRX shares have been in a bearish daily descending triangle that started in December 2022 as shares fell from a high of $7.64 on Nov. 30, 2022, to hit a low of $1.55 on Dec. 19, 2022, just before the filing with the SEC regarding its discontinuance of Anjeso drug. Shares coiled on the daily stochastic to peak at $4.84 after trigging the daily market structure low (MSL) buy signal on the breakout through $2.75.
The daily 20-period exponential moving average (EMA) is flat but turning at $3.35 as the daily 50-period MA sits at $3.92. Shares started to flatline but held above the descending triangle downtrend line at $3.30 before the phase 2 news spiking it up to a high of $6.89 before pulling back. Pullback support levels sit at
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some of the larger pharmaceutical companies that make NMBA include AbbVie Inc. (NYSE: ABBV), Pfizer (NYSE: PFE), Allergan PLC (NYSE: AGN), and Merck & Co. Inc (NYSE: MRK). Baudax Bio (NASDAQ: BXRX) shares spiked as much as 70% on its announcement of positive interim phase 2 clinical trials for its pain medicine BX1000. It noted that all patients had good or excellent intubating conditions at 60 seconds with no severe or adverse side effects, and the drug was well tolerated. | Some of the larger pharmaceutical companies that make NMBA include AbbVie Inc. (NYSE: ABBV), Pfizer (NYSE: PFE), Allergan PLC (NYSE: AGN), and Merck & Co. Inc (NYSE: MRK). Baudax Bio (NASDAQ: BXRX) shares spiked as much as 70% on its announcement of positive interim phase 2 clinical trials for its pain medicine BX1000. Positive Interim Phase 2 Trial Outcomes for BX1000 Fast forward to Jan. 24, 2023, Baudax posted a positive outcome in its phase 2 trial of BX1000. | Some of the larger pharmaceutical companies that make NMBA include AbbVie Inc. (NYSE: ABBV), Pfizer (NYSE: PFE), Allergan PLC (NYSE: AGN), and Merck & Co. Inc (NYSE: MRK). Baudax Bio (NASDAQ: BXRX) shares spiked as much as 70% on its announcement of positive interim phase 2 clinical trials for its pain medicine BX1000. Positive Interim Phase 2 Trial Outcomes for BX1000 Fast forward to Jan. 24, 2023, Baudax posted a positive outcome in its phase 2 trial of BX1000. | Some of the larger pharmaceutical companies that make NMBA include AbbVie Inc. (NYSE: ABBV), Pfizer (NYSE: PFE), Allergan PLC (NYSE: AGN), and Merck & Co. Inc (NYSE: MRK). Baudax Bio (NASDAQ: BXRX) shares spiked as much as 70% on its announcement of positive interim phase 2 clinical trials for its pain medicine BX1000. The clinical trial involves patients undergoing abdominal surgical conditions. |
22857.0 | 2023-01-25 00:00:00 UTC | 3 Reasons to Buy AbbVie and 2 Reasons Not to Buy | ABBV | https://www.nasdaq.com/articles/3-reasons-to-buy-abbvie-and-2-reasons-not-to-buy | nan | nan | 2023 is expected to be an important year for AbbVie (NYSE: ABBV). The pharmaceutical company is facing its first biosimilar competition in the United States. It's big news because it involves AbbVie's monoclonal antibody blockbuster therapy, Humira, which is on track to generate a second consecutive year of $20 billion-plus in revenue in 2022. Amgen is expected to launch Amjevita on Jan. 31, with several other Humira biosimilars expected to launch later this year from various pharmaceutical companies.
Investors have been aware of the launch for some time and reaction has been mixed, with the stock down 8.6% since the start of the year. As they process what to do about the stock, here are three reasons why AbbVie is still a buy and two reasons why it may not be.
Reason to buy: Declining Humira sales have already been priced into the stock
Through the first nine months of 2022, AbbVie reported revenue of $42.9 billion, up 3.9% year over year. Humira, despite growing biosimilar competition in Europe, had global sales of $16.5 billion, up 1.9% over the first nine months of 2021.
The company clarified guidance for yearly earnings per share (EPS) of $13.84 to $13.88, compared to 2021 EPS of $6.45.
The stock did well in what was a down year for many pharmaceutical companies, and it is up more than 13% over the past year. However, when you look at the company's price-to-earnings ratio of 20 and forward P/E of 13, it still appears to be trading at a slight discount to the pharmaceutical industry's P/E and forward P/E averages of 27 and 14, respectively.
The impact of declining Humira sales, despite the growing number of biosimilars, isn't likely to be that swift, either. The drug has faced biosimilar competition in Europe since 2018 and yet last year, its overseas sales were down only 9.1% from 2020. While Amjevita is launching soon, many other biosimilars aren't expected to launch in the U.S. until sometime in the second quarter. That could explain why AbbVie was willing to actually increase the price of Humira this year by 8%.
Cigna and UnitedHealth Group, two of the largest pharmacy-benefit managers in the U.S., said they plan to keep covering Humira even as they make its biosimilars available.
Reason to buy: You can't ignore AbbVie's growing portfolio and pipeline
Humira already has two immunology drugs, Skyrizi and Rinvoq, that it expects to replace Humira's lost revenue. These blockbuster immunology treatments have been steadily adding new indications and revenue. Through the first nine months of 2022, Skyrizi's revenue of $3.6 billion was up 75% year over year, and Rinvoq's nine-month revenue of $1.8 billion was up 55% over the same period in 2021. The company predicts the two will combine for $17.5 billion in revenue by 2025, and more than $21 billion by 2027.
AbbVie has a huge portfolio with 83 programs, including 18 phase 3 trials and 21 phase 2 trials. If just a fraction of those therapies are approved by the Food and Drug Administration (FDA), the company will have plenty of new revenue in the coming years.
Reason to buy: AbbVie's dividend is too good to ignore
AbbVie raised its quarterly dividend by 5% this year to $1.48 per share, the 51st consecutive year the Dividend King has raised its dividend (when counting its time as part of Abbott Laboratories). Since AbbVie split off from Abbott in 2013, it has increased its dividend by 270%. At its current price, the yield is just under 4%; that's more than double the S&P 500 average of 1.74%. And with only a 44% cash dividend payout ratio, the company can afford to continue its increases.
Reason to sell: Imbruvica's sales are coming under attack
Imbruvica is a BTK (Bruton's tyrosine kinase) inhibitor therapy on which AbbVie has partnered with Johnson & Johnson. In 2021, the drug was AbbVie's No. 2 best-selling therapy, after Humira, at $5.4 billion in revenue. Nine months into 2022, the drug's revenue was faltering, with $3.45 billion in nine-month sales, down 14% year over year.
That's likely to get worse, as two other BTK inhibitors are making inroads on Imbruvica's indications. Calquence, made by AstraZeneca, saw its nine-month sales grow by 74% year over year, to $1.4 billion. Brukinsa, made by Chinese pharmaceutical company BeiGene and already approved to treat mantle cell lymphoma, relapsed or refractory marginal zone lymphoma, and Waldenström's macroglobulinemia, was just approved on Jan. 19 as a therapy for chronic lymphocytic lymphoma (CLL). Brukinsa's nine-month sales of $1.3 million are up 198% over the same period last year.
Reason to sell: Botox is about to face more competition
Botox, despite losing some of its patent exclusivity starting in 2013, continues to do well for AbbVie. Through the first nine months of 2022, the company reported $1.99 billion in sales of Botox Therapeutic, up 11.9% year over year, while Botox Cosmetic had sales of $1.97 billion, up 22.8% year over year.
Botox is the first type of botulinum toxin type A to be approved by the FDA, in 2002. Others have come along, but Jeuveau, made by Evolus, was first approved by the FDA in 2019; it's the first Botox competitor to come along with the same molecular weight, and the company claims it is the closest to Botox in terms of effectiveness and has shown a slightly superior safety profile. Evolus said it expected to bring in $148.6 million in 2022 revenue, all from sales of Juveau, up 49% over 2021. By 2028, the company said it expects $500 million in revenue from Juveau.
Botox is also just starting to see competition from another wrinkle therapy, Daxxify, which was approved by the FDA in September. Revance Therapeutics said in a preliminary report that it expected between $10.5 million and $11.5 million in revenue from the therapy in the fourth quarter, the first quarter since its launch.
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Jim Halley has positions in AbbVie and Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories and Evolus. The Motley Fool recommends Amgen, Johnson & Johnson, and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It's big news because it involves AbbVie's monoclonal antibody blockbuster therapy, Humira, which is on track to generate a second consecutive year of $20 billion-plus in revenue in 2022. 2023 is expected to be an important year for AbbVie (NYSE: ABBV). As they process what to do about the stock, here are three reasons why AbbVie is still a buy and two reasons why it may not be. | Reason to buy: You can't ignore AbbVie's growing portfolio and pipeline Humira already has two immunology drugs, Skyrizi and Rinvoq, that it expects to replace Humira's lost revenue. Reason to buy: AbbVie's dividend is too good to ignore AbbVie raised its quarterly dividend by 5% this year to $1.48 per share, the 51st consecutive year the Dividend King has raised its dividend (when counting its time as part of Abbott Laboratories). 2023 is expected to be an important year for AbbVie (NYSE: ABBV). | Reason to buy: Declining Humira sales have already been priced into the stock Through the first nine months of 2022, AbbVie reported revenue of $42.9 billion, up 3.9% year over year. Reason to buy: AbbVie's dividend is too good to ignore AbbVie raised its quarterly dividend by 5% this year to $1.48 per share, the 51st consecutive year the Dividend King has raised its dividend (when counting its time as part of Abbott Laboratories). 2023 is expected to be an important year for AbbVie (NYSE: ABBV). | Reason to buy: Declining Humira sales have already been priced into the stock Through the first nine months of 2022, AbbVie reported revenue of $42.9 billion, up 3.9% year over year. Reason to buy: You can't ignore AbbVie's growing portfolio and pipeline Humira already has two immunology drugs, Skyrizi and Rinvoq, that it expects to replace Humira's lost revenue. 2023 is expected to be an important year for AbbVie (NYSE: ABBV). |
22858.0 | 2023-01-24 00:00:00 UTC | Sum Up The Parts: USMV Could Be Worth $80 | ABBV | https://www.nasdaq.com/articles/sum-up-the-parts%3A-usmv-could-be-worth-%2480 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares MSCI USA Min Vol Factor ETF (Symbol: USMV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $79.77 per unit.
With USMV trading at a recent price near $72.67 per unit, that means that analysts see 9.77% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USMV's underlying holdings with notable upside to their analyst target prices are Home Depot Inc (Symbol: HD), AbbVie Inc (Symbol: ABBV), and PepsiCo Inc (Symbol: PEP). Although HD has traded at a recent price of $315.48/share, the average analyst target is 11.03% higher at $350.29/share. Similarly, ABBV has 10.88% upside from the recent share price of $148.55 if the average analyst target price of $164.71/share is reached, and analysts on average are expecting PEP to reach a target price of $187.00/share, which is 10.57% above the recent price of $169.12. Below is a twelve month price history chart comparing the stock performance of HD, ABBV, and PEP:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares MSCI USA Min Vol Factor ETF USMV $72.67 $79.77 9.77%
Home Depot Inc HD $315.48 $350.29 11.03%
AbbVie Inc ABBV $148.55 $164.71 10.88%
PepsiCo Inc PEP $169.12 $187.00 10.57%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | iShares MSCI USA Min Vol Factor ETF USMV $72.67 $79.77 9.77% Home Depot Inc HD $315.48 $350.29 11.03% AbbVie Inc ABBV $148.55 $164.71 10.88% PepsiCo Inc PEP $169.12 $187.00 10.57% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of USMV's underlying holdings with notable upside to their analyst target prices are Home Depot Inc (Symbol: HD), AbbVie Inc (Symbol: ABBV), and PepsiCo Inc (Symbol: PEP). Similarly, ABBV has 10.88% upside from the recent share price of $148.55 if the average analyst target price of $164.71/share is reached, and analysts on average are expecting PEP to reach a target price of $187.00/share, which is 10.57% above the recent price of $169.12. | Three of USMV's underlying holdings with notable upside to their analyst target prices are Home Depot Inc (Symbol: HD), AbbVie Inc (Symbol: ABBV), and PepsiCo Inc (Symbol: PEP). iShares MSCI USA Min Vol Factor ETF USMV $72.67 $79.77 9.77% Home Depot Inc HD $315.48 $350.29 11.03% AbbVie Inc ABBV $148.55 $164.71 10.88% PepsiCo Inc PEP $169.12 $187.00 10.57% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Similarly, ABBV has 10.88% upside from the recent share price of $148.55 if the average analyst target price of $164.71/share is reached, and analysts on average are expecting PEP to reach a target price of $187.00/share, which is 10.57% above the recent price of $169.12. | Similarly, ABBV has 10.88% upside from the recent share price of $148.55 if the average analyst target price of $164.71/share is reached, and analysts on average are expecting PEP to reach a target price of $187.00/share, which is 10.57% above the recent price of $169.12. Three of USMV's underlying holdings with notable upside to their analyst target prices are Home Depot Inc (Symbol: HD), AbbVie Inc (Symbol: ABBV), and PepsiCo Inc (Symbol: PEP). Below is a twelve month price history chart comparing the stock performance of HD, ABBV, and PEP: Below is a summary table of the current analyst target prices discussed above: | iShares MSCI USA Min Vol Factor ETF USMV $72.67 $79.77 9.77% Home Depot Inc HD $315.48 $350.29 11.03% AbbVie Inc ABBV $148.55 $164.71 10.88% PepsiCo Inc PEP $169.12 $187.00 10.57% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of USMV's underlying holdings with notable upside to their analyst target prices are Home Depot Inc (Symbol: HD), AbbVie Inc (Symbol: ABBV), and PepsiCo Inc (Symbol: PEP). Similarly, ABBV has 10.88% upside from the recent share price of $148.55 if the average analyst target price of $164.71/share is reached, and analysts on average are expecting PEP to reach a target price of $187.00/share, which is 10.57% above the recent price of $169.12. |
22859.0 | 2023-01-23 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-7 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $148.55, moving -0.7% from the previous trading session. This change lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Heading into today, shares of the drugmaker had lost 8.28% over the past month, lagging the Medical sector's gain of 0.84% and the S&P 500's gain of 4.06% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.65 per share. This would mark year-over-year growth of 10.27%. Our most recent consensus estimate is calling for quarterly revenue of $15.37 billion, up 3.25% from the year-ago period.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.13% higher. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 12.82. Its industry sports an average Forward P/E of 14.63, so we one might conclude that AbbVie is trading at a discount comparatively.
Meanwhile, ABBV's PEG ratio is currently 3.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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) closed the most recent trading day at $148.55, moving -0.7% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.65 per share. | AbbVie (ABBV) closed the most recent trading day at $148.55, moving -0.7% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.65 per share. | AbbVie (ABBV) closed the most recent trading day at $148.55, moving -0.7% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.65 per share. | AbbVie (ABBV) closed the most recent trading day at $148.55, moving -0.7% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.65 per share. |
22860.0 | 2023-01-23 00:00:00 UTC | AbbVie Enters Oversold Territory | ABBV | https://www.nasdaq.com/articles/abbvie-enters-oversold-territory-0 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV entered into oversold territory, changing hands as low as $148.365 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 55.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 3.96% based upon the recent $149.59 share price.
A bullish investor could look at ABBV's 29.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
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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 29.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV entered into oversold territory, changing hands as low as $148.365 per share. | In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 55.5. Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 3.96% based upon the recent $149.59 share price. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of AbbVie Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 55.5. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | Indeed, ABBV's recent annualized dividend of 5.92/share (currently paid in quarterly installments) works out to an annual yield of 3.96% based upon the recent $149.59 share price. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. |
22861.0 | 2023-01-23 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-4 | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned -8.3%, compared to the Zacks S&P 500 composite's +4.1% 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.
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 $3.65 per share, indicating a change of +10.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.83 points to a change of +8.9% from the prior year. Over the last 30 days, this estimate has changed +2.1%.
For the next fiscal year, the consensus earnings estimate of $11.67 indicates a change of -15.6% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +2.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AbbVie, the consensus sales estimate for the current quarter of $15.37 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $58.3 billion and $53.53 billion estimates indicate +3.8% and -8.2% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $3.66 for the same period compares with $3.33 a year ago.
Compared to the Zacks Consensus Estimate of $14.92 billion, the reported revenues represent a surprise of -0.74%. The EPS surprise was +2.81%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. 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 $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. For the current quarter, AbbVie is expected to post earnings of $3.65 per share, indicating a change of +10.3% from the year-ago quarter. | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2%. For the current quarter, AbbVie is expected to post earnings of $3.65 per share, indicating a change of +10.3% from the year-ago quarter. |
22862.0 | 2023-01-22 00:00:00 UTC | AbbVie Is Set to Lose on Its Biggest Blockbuster. Here's Why You Shouldn't Worry. | ABBV | https://www.nasdaq.com/articles/abbvie-is-set-to-lose-on-its-biggest-blockbuster.-heres-why-you-shouldnt-worry. | nan | nan | AbbVie (NYSE: ABBV) boasts a portfolio of drugs across immunology, neuroscience, aesthetics, oncology, and eye care. Yet investors' focus lately has been on the fate of one particular product: the immunology drug Humira. That's because it's set to face competition in the U.S. as of this month.
Why is this such a problem? It's because Humira has become a megablockbuster. In 2021, the product brought in more than $20 billion in sales. And over its two decades on the market, Humira has generated almost $200 billion in sales, according to BioPharma Dive.
But I think investors shouldn't worry too much about the upcoming loss of exclusivity. Here's why.
The world's top-selling drug
First, let's take a look at the bad news. Humira is the world's top-selling drug -- but that may not be the case for long. A loss of patent protection means that biosimilars may enter the market. And a number of candidates are set to do just that in 2023.
This has already been happening internationally, and it's weighed on Humira's sales outside of the U.S. For example, in the third quarter, Humira's international sales fell by more than 25%. Humira is approved for a broad range of indications across rheumatology, dermatology, and gastroenterology. These include conditions like rheumatoid arthritis, plaque psoriasis, and Crohn's disease.
Now, let's get to the good news. AbbVie, of course, has seen this day coming for a long while, and the pharmaceutical giant has been taking action. That action is prepping two other immunology drugs not only to compensate for Humira -- but eventually to surpass it.
Enter Rinvoq and Skyrizi. Today, the U.S. Food and Drug Administration (FDA) has approved Rinvoq for five indications and Skyrizi for three; most of these are Humira indications. The FDA currently is reviewing Rinvoq for Crohn's disease as well.
AbbVie continues to study Rinvoq in five additional indications. And the company is testing Skyrizi in a phase 3 trial for ulcerative colitis.
Already in blockbuster territory
These immunology treatments have been proving they have the potential to take over where Humira left off. In the third quarter, Skyrizi revenue soared 75% and Rinvoq revenue advanced more than 50%. And in the first nine months of the year, they each brought in well over $1 billion, so these products have already made it into blockbuster territory.
But this is just the beginning: AbbVie predicts Rinvoq and Skyrizi together will generate more than $17.5 billion in revenue in 2025. And by 2027, the company expects these products, combined, to bring in more than $21 billion. At that point, they will have surpassed Humira.
Meanwhile, investors may have to be patient for a couple of years. AbbVie predicts a return to strong top-line growth in 2025. Before that, as Humira rivals enter the market, we're likely to see the impact on AbbVie's earnings.
Should you buy AbbVie now?
The question is this: Should you buy AbbVie stock now, or wait until the newer immunology drugs truly start compensating for the Humira loss?
There are a few things to consider. First, though Humira is a big product, it's not AbbVie's only drug. The company sells dozens of other products across various treatment areas -- including well-known aesthetics product Botox and bipolar disorder drug Vraylar. Growth in sales of these and other drugs could lead AbbVie's shares higher. Second, it's impossible to time the market, so the best time to buy stock is when the company's valuation looks reasonable considering its prospects.
Today, AbbVie shares trade for 12 times forward earnings estimates. That's reasonable considering the company's long-term earnings prospects -- and here, I've only spoken about the immunology business. By 2026, AbbVie is forecast to be the world's top pharma company by prescription-drug market share, according to data from Evaluate Pharma.
For the long-term investor, right now looks like a great time to get in on this pharmaceutical company -- and benefit from a whole new era of growth in the coming years.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) boasts a portfolio of drugs across immunology, neuroscience, aesthetics, oncology, and eye care. The question is this: Should you buy AbbVie stock now, or wait until the newer immunology drugs truly start compensating for the Humira loss? AbbVie, of course, has seen this day coming for a long while, and the pharmaceutical giant has been taking action. | AbbVie (NYSE: ABBV) boasts a portfolio of drugs across immunology, neuroscience, aesthetics, oncology, and eye care. AbbVie, of course, has seen this day coming for a long while, and the pharmaceutical giant has been taking action. AbbVie continues to study Rinvoq in five additional indications. | The question is this: Should you buy AbbVie stock now, or wait until the newer immunology drugs truly start compensating for the Humira loss? First, though Humira is a big product, it's not AbbVie's only drug. AbbVie (NYSE: ABBV) boasts a portfolio of drugs across immunology, neuroscience, aesthetics, oncology, and eye care. | First, though Humira is a big product, it's not AbbVie's only drug. AbbVie (NYSE: ABBV) boasts a portfolio of drugs across immunology, neuroscience, aesthetics, oncology, and eye care. AbbVie, of course, has seen this day coming for a long while, and the pharmaceutical giant has been taking action. |
22863.0 | 2023-01-20 00:00:00 UTC | Noteworthy Friday Option Activity: IBM, ATVI, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-ibm-atvi-abbv | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in International Business Machines Corp (Symbol: IBM), where a total volume of 89,115 contracts has been traded thus far today, a contract volume which is representative of approximately 8.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 264.6% of IBM's average daily trading volume over the past month, of 3.4 million shares. Particularly high volume was seen for the $135 strike put option expiring January 27, 2023, with 4,143 contracts trading so far today, representing approximately 414,300 underlying shares of IBM. Below is a chart showing IBM's trailing twelve month trading history, with the $135 strike highlighted in orange:
Activision Blizzard, Inc. (Symbol: ATVI) options are showing a volume of 87,510 contracts thus far today. That number of contracts represents approximately 8.8 million underlying shares, working out to a sizeable 188.1% of ATVI's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $80 strike call option expiring February 17, 2023, with 16,489 contracts trading so far today, representing approximately 1.6 million underlying shares of ATVI. Below is a chart showing ATVI's trailing twelve month trading history, with the $80 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 52,342 contracts thus far today. That number of contracts represents approximately 5.2 million underlying shares, working out to a sizeable 103.2% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Especially high volume was seen for the $135 strike put option expiring February 17, 2023, with 12,024 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $135 strike highlighted in orange:
For the various different available expirations for IBM options, ATVI 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. | Especially high volume was seen for the $135 strike put option expiring February 17, 2023, with 12,024 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ATVI's trailing twelve month trading history, with the $80 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 52,342 contracts thus far today. That number of contracts represents approximately 5.2 million underlying shares, working out to a sizeable 103.2% of ABBV's average daily trading volume over the past month, of 5.1 million shares. | That number of contracts represents approximately 5.2 million underlying shares, working out to a sizeable 103.2% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Below is a chart showing ATVI's trailing twelve month trading history, with the $80 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 52,342 contracts thus far today. Especially high volume was seen for the $135 strike put option expiring February 17, 2023, with 12,024 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. | That number of contracts represents approximately 5.2 million underlying shares, working out to a sizeable 103.2% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Below is a chart showing ATVI's trailing twelve month trading history, with the $80 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 52,342 contracts thus far today. Especially high volume was seen for the $135 strike put option expiring February 17, 2023, with 12,024 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. | That number of contracts represents approximately 5.2 million underlying shares, working out to a sizeable 103.2% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Especially high volume was seen for the $135 strike put option expiring February 17, 2023, with 12,024 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $135 strike highlighted in orange: For the various different available expirations for IBM options, ATVI options, or ABBV options, visit StockOptionsChannel.com. |
22864.0 | 2023-01-19 00:00:00 UTC | ABBV Crosses Above 4% Yield Territory | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-4-yield-territory | 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 $147.33 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 $147.33 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 $147.33 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 $147.33 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 $147.33 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. |
22865.0 | 2023-01-19 00:00:00 UTC | 3 Unstoppable Stocks to Keep Buying in 2023 | ABBV | https://www.nasdaq.com/articles/3-unstoppable-stocks-to-keep-buying-in-2023 | nan | nan | Last year's market wasn't gloomy for every company. Investors bought certain stocks hand over fist. In most cases, these particular companies offered investors a solid reason to be optimistic about their future. And that's why they were able to defy the bear market.
I can easily think of three examples in the healthcare industry. Up-and-coming biotech Axsome Therapeutics (NASDAQ: AXSM) commercialized its first two products. Vertex Pharmaceuticals (NASDAQ: VRTX) proved to investors that it could expand beyond its core business. And AbbVie (NYSE: ABBV) -- facing declines in its biggest drug -- offered hope newer products would generate even more growth over time. Let's take a closer look at these three unstoppable stocks to keep on buying.
1. Axsome Therapeutics
Axsome soared more than 100% last year. But the average Wall Street estimate calls for more than a 60% gain in the coming 12 months from today's level.
Why should gains continue? Investors applauded Axsome's move from clinical-stage company to commercial-stage company. But the gains don't price in revenue growth from those products and potentially others to come this decade. Axsome is at the very beginning of its growth story.
The company launched Sunosi, a sleep disorders drug it acquired from Jazz Pharmaceuticals, in spring of last year. Then it gained approval of its own antidepressant, Auvelity, and launched it later in the year. The drug is fast-acting, so it could stand out from rivals. In fact, Auvelity may reach revenue of $1.3 billion by 2029, according to GlobalData.
Axsome also recently reported positive phase 3 trial results from its candidate to treat Alzheimer's disease agitation. An eventual approval here could be big. That's because there currently aren't any approved treatments in this area. The company also plans to submit its candidate for migraine treatment to regulators in the third quarter.
So, there's a lot of news -- and potential earnings growth -- on the horizon for Axsome. And that could translate into more gains for the stock.
2. Vertex Pharmaceuticals
Vertex climbed after alleviating investors' biggest fear. The concern was that Vertex wouldn't be able to expand beyond its specialty of cystic fibrosis (CF) treatment. This came after the company reported two clinical trial failures in rare disease alpha-1 antitrypsin deficiency in recent years.
But last year, Vertex reported positive data from its trial of exa-cel, a one-time curative treatment candidate for two blood disorders. And the company launched regulatory submissions in the U.S., the U.K., and Europe later on in the year. The product could be big because today, treatment options for beta thalassemia and sickle cell disease are limited.
Vertex and partner Crispr Therapeutics are running an exa-cel phase 3 trial with pediatric patients right now -- success here could result in even more potential patients for the treatment.
It's important to remember that Vertex's position in CF represents growth too. The company is the market leader, and that's likely to continue. Vertex's top-selling Trikafta brought in more than $5.6 billion in sales in 2021. And the company is studying a new candidate in a phase 3 trial that might be even better than Trikafta.
Vertex today trades for less than 20 times forward earnings estimates. That looks like a steal considering its strong CF portfolio -- and the potential of exa-cel.
3. AbbVie
AbbVie is another stock that's worried investors. The company sells blockbuster immunology drug Humira. That drug generated a whopping $20 billion in revenue in 2021.
But here's the bad news: Humira's losing exclusivity as of now. That means revenue soon will be on the decline. This already has happened internationally.
But here's why investors felt optimistic about AbbVie last year -- and should feel that way today, too. The company's two newer immunology drugs -- Skyrizi and Rinvoq -- together are set to eventually beat Humira. The drugs are on their way to winning approval in all of Humira's approved indications. And Skyrizi and Rinvoq combined should generate more than $21 billion in revenue by 2027, the company predicts.
AbbVie's neuroscience and aesthetics portfolios also present big growth potential. For example, the company expects two of its migraine treatments to reach peak sales of more than $1 billion. And AbbVie forecasts global aesthetics sales of more than $9 billion in 2029.
Today, AbbVie shares trade for about 13 times forward earnings estimates. At this level, it's easy to see this stock attracting more and more investors -- and heading for more gains this year and over time.
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Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Axsome Therapeutics, 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. | And AbbVie (NYSE: ABBV) -- facing declines in its biggest drug -- offered hope newer products would generate even more growth over time. AbbVie AbbVie is another stock that's worried investors. But here's why investors felt optimistic about AbbVie last year -- and should feel that way today, too. | And AbbVie (NYSE: ABBV) -- facing declines in its biggest drug -- offered hope newer products would generate even more growth over time. AbbVie AbbVie is another stock that's worried investors. But here's why investors felt optimistic about AbbVie last year -- and should feel that way today, too. | And AbbVie (NYSE: ABBV) -- facing declines in its biggest drug -- offered hope newer products would generate even more growth over time. AbbVie AbbVie is another stock that's worried investors. But here's why investors felt optimistic about AbbVie last year -- and should feel that way today, too. | And AbbVie (NYSE: ABBV) -- facing declines in its biggest drug -- offered hope newer products would generate even more growth over time. AbbVie AbbVie is another stock that's worried investors. But here's why investors felt optimistic about AbbVie last year -- and should feel that way today, too. |
22866.0 | 2023-01-18 00:00:00 UTC | AbbVie Breaks Below 200-Day Moving Average - Notable for ABBV | ABBV | https://www.nasdaq.com/articles/abbvie-breaks-below-200-day-moving-average-notable-for-abbv | nan | nan | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $150.37, changing hands as low as $149.09 per share. AbbVie Inc shares are currently trading off about 2.4% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $128.26 per share, with $175.91 as the 52 week high point — that compares with a last trade of $149.21. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $150.37, changing hands as low as $149.09 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $128.26 per share, with $175.91 as the 52 week high point — that compares with a last trade of $149.21. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Jeremy Grantham Stock Picks ABC shares outstanding history XNPT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $150.37, changing hands as low as $149.09 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $128.26 per share, with $175.91 as the 52 week high point — that compares with a last trade of $149.21. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Jeremy Grantham Stock Picks ABC shares outstanding history XNPT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $150.37, changing hands as low as $149.09 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $128.26 per share, with $175.91 as the 52 week high point — that compares with a last trade of $149.21. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Jeremy Grantham Stock Picks ABC shares outstanding history XNPT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $150.37, changing hands as low as $149.09 per share. AbbVie Inc shares are currently trading off about 2.4% on the day. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Jeremy Grantham Stock Picks ABC shares outstanding history XNPT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
22867.0 | 2023-01-18 00:00:00 UTC | 7 Biotech Stocks That Will Make You Rich in 10 Years | ABBV | https://www.nasdaq.com/articles/7-biotech-stocks-that-will-make-you-rich-in-10-years | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you have the patience to go through wild undulations, then you may be a candidate for biotech stocks that will make you rich in 10 years. Even among the most established biotechnology firms, they’re seemingly one news item away from disaster. Further, the smaller enterprises in this exciting arena tend to be extremely unpredictable.
Nevertheless, because the sector tends to run on its own fundamentals rather than abiding exclusively by traditional economic metrics, the biotech stocks that will make you rich in 10 years may surprisingly enjoy relevancy right now. With so many concerns about monetary policy and geopolitical rumblings, it’s nice to trade in a roughly independent ecosystem.
Most importantly, advanced biopharmaceuticals may one day spark groundbreaking health-related innovations. Thus, it makes sense to have some speculation funds directed at this segment. So, without any more delay, below are the biotech stocks that will make you rich in 10 years.
ABBV AbbVie $149.57
PFE Pfizer $45.08
INCY Incyte $82.14
EXEL Exelixis $16.40
CRSP CRISPR Therapeutics $51.00
SRPT Sarepta $128.73
CVAC CureVac $9.50
AbbVie (ABBV)
Source: shutterstock.com/Romix Image
One of the giants in the pharmaceutical space is AbbVie (NYSE:ABBV). This company ranks among the biotech stocks that will make you rich in 10 years mainly because of its Allergan acquisition. Through the takeover, AbbVie now commands the wrinkle-fighting treatment Botox. While such “superficial” treatments for lack of a better word lost relevance during the coronavirus-fueled quarantines, the gradual return to full normalization should lift Botox sales.
Two fundamental factors come to mind. First of course is the pivot toward return-to-office policies. With Disney (NYSE:DIS) recently cracking the whip regarding its newly stated in-office policy, other enterprises will likely follow suit. Naturally, the return of physical interactions should boost Botox’s revenue. Another factor is that a decade from now, the oldest millennials will be in their 50s. And the oldest members of Gen Z will be steadily marching to their 40s. Demographically, then, ABBV appears to be one of the biotech stocks that will make you rich in 10 years.
Pfizer (PFE)
Source: shutterstock.com/Champhei
Making a name for itself for forwarding a messenger-RNA-based vaccine to combat the Covid-19 crisis, biopharma giant Pfizer (NYSE:PFE) offers many potential relevancies. By leveraging the innovation to research and develop vaccines for other infectious diseases, Pfizer can profitably leverage its newfound acumen. Therefore, it may well be one of the best biotech stocks that will make you rich in 10 years.
However, it must be said that PFE recently took it on the chin based on a Wells Fargo analyst downgrade. Essentially, the current run rate for Pfizer’s Covid antiviral drug and its vaccine might not meet consensus revenue targets. Therefore, both investors and market observers may need to reset their future expectations, which doesn’t bode well for PFE. Nevertheless, among covering analysts, Pfizer still commands a moderate buy consensus view. Further, their average price target implies a 15% upside potential. However, should the company continue to develop its mRNA technology, the sky may be the limit.
Thus, it’s worth consideration for biotech stocks that will make you rich in 10 years.
Incyte (INCY)
Source: Gorodenkoff / Shutterstock.com
Focused on finding new ways to manage rare and often hard-to-treat diseases, Incyte (NASDAQ:INCY) carries both significant potential and risk. Still, INCY ranks among the biotech stocks that will make you rich in 10 years because of its proven history of getting therapeutics approved. The company covers a wide area of needs, including oncology, inflammation, and autoimmunity.
As you may know, if you spent time in the biotech space, it’s often wildly unpredictable. Therefore, what I appreciate about Incyte is its financial stability. For instance, the company features a cash-to-debt ratio of 70.75 times, ranking above 72% of the biotech industry. As well, its Altman Z-Score (a measure of bankruptcy risk) pings at 9.85, well into the safe zone.
Objectively as well, Incyte enjoys an undervalued investment profile. Currently, the market prices INCY at just under 18 times forward earnings. In contrast, the sector median stands at over 27 times. Finally, while the immediate sentiment among hedge funds may be negative, in the long run, the smart money considerably added INCY to its portfolio since the fourth quarter of 2020.
Exelixis (EXEL)
Source: everything possible / Shutterstock.com
Oncology specialist Exelixis (NASDAQ:EXEL) might not immediately attract investors seeking biotech stocks that will make you rich in 10 years. For example, its trailing-year performance of 6% below breakeven seems dull: it’s not too steep of a loss to spark contrarian interest but the existence of red ink may worry more conservative investors.
However, Exelixis – which depends on its blockbuster cancer drug Cabometyx – still has a place among compelling biotech enterprises. Cabometyx received approval to treat first- and second-line renal cell carcinoma (RCC). Representing one of the deadliest growing solid tumor cancers, Exelixis commands powerful relevancies. As well, patient demand globally for treatment options will rise significantly, according to Data Bridge Market Research.
Just as well, Exelixis enjoys solid financials. Undergirded by a stable balance sheet, the company carries strong profitability metrics. For instance, its net margin stands at nearly 19%, above 85% of the competition. As well, the market prices shares at only 17.6-times forward earnings, below the sector median of over 27 times. Therefore, it’s one of the biotech stocks that will make you rich in 10 years.
CRISPR Therapeutics (CRSP)
Source: Shutterstock
Among the most controversial companies, CRISPR Therapeutics (NASDAQ:CRSP) nevertheless makes a case for biotech stocks that will make you rich in 10 years. To be completely transparent, CRSP represents a largely aspirational narrative. Similar to many other clinical-stage biotech firms, Crispr sits far from profitability. At the same time, its flagship product might change that.
In partnership with Vertex Pharmaceuticals (NASDAQ:VRTX), Crispr engages in the potential treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). According to Fortune Business Insights, the market for treating SCD may grow to $8.75 billion in 2029, representing a compound annual growth rate (CAGR) of 21.4% from 2022. Regarding TDT, the treatment market featured a valuation of $411.8 million in 2021. Experts at Coherent Market Insights project that the segment can expand at a CAGR of 7.8% between 2021 through 2028.
While Crispr again doesn’t enjoy robust financials, analysts apparently believe it’s one of the biotech stocks that will make you rich in 10 years. Presently, CRSP enjoys a moderate buy consensus view. Also, the average price target implies an upside of slightly over 82%.
Sarepta Therapeutics (SRPT)
Source: Mongkolchon Akesin / Shutterstock.com
To be clear from the get-go, Sarepta Therapeutics (NASDAQ:SRPT) ranks among the riskiest names in the biotech ecosystem. It’s not that the company is bad – far from it. Rather, it’s good, perhaps too good. In the trailing year, shares have nearly doubled. Therefore, it raises the prospect that interested buyers now may end up holding the bag.
Still, from a fundamental perspective, Sarepta deserves a closer look as one of the biotech stocks that will make you rich in 10 years. Recently, the company made significant progress regarding its approved products targeting Duchenne muscular dystrophy (DMD). According to Allied Market Research, the global DMD treatment market featured a valuation of $1.3 billion. However, the segment may grow to $2.07 billion by 2031.
Because DMD is a progressive and fatal disease, Sarepta commands powerful relevancies. Further, should medical breakthroughs materialize in the next decade, SRPT could still enjoy a stratospheric upside. Finally, Sarepta benefits from a strong buy consensus rating among covering analysts. This underscores why many experts believe SRPT is one of the biotech stocks that will make you rich in 10 years.
CureVac (CVAC)
Source: Shutterstock
For what may be the riskiest idea on this list, CureVac (NASDAQ:CVAC) nevertheless presents intrigue for contrarian speculators. One of the biotechs that forwarded advanced solutions for Covid-19, CureVac continued to invest in the underlying mRNA technology. Recently, the company managed to pop higher based on positive data for its Covid and flu vaccines.
As I pointed out, CureVac – thought a speculative venture – may enjoy relevancies associated with infectious diseases. For instance, society currently grapples with the so-called tripledemic or the convergence of the flu, Covid-19, and respiratory syncytial virus (RSV). Moving forward, these tripledemics may become a more frequent public safety concern, thus warranting various solutions. This framework sets up CVAC to be one of the biotech stocks that will make you rich in 10 years.
Of course, nothing is guaranteed. In the trailing year, shares dropped over 56% in equity value. At the same time, in the year so far, CVAC gained over 53%. With solid analyst support targeting a near-doubling in the share price, CureVac certainly offers an exciting proposition.
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 Biotech Stocks That Will Make You Rich in 10 Years 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 $149.57 PFE Pfizer $45.08 INCY Incyte $82.14 EXEL Exelixis $16.40 CRSP CRISPR Therapeutics $51.00 SRPT Sarepta $128.73 CVAC CureVac $9.50 AbbVie (ABBV) Source: shutterstock.com/Romix Image One of the giants in the pharmaceutical space is AbbVie (NYSE:ABBV). Through the takeover, AbbVie now commands the wrinkle-fighting treatment Botox. Demographically, then, ABBV appears to be one of the biotech stocks that will make you rich in 10 years. | ABBV AbbVie $149.57 PFE Pfizer $45.08 INCY Incyte $82.14 EXEL Exelixis $16.40 CRSP CRISPR Therapeutics $51.00 SRPT Sarepta $128.73 CVAC CureVac $9.50 AbbVie (ABBV) Source: shutterstock.com/Romix Image One of the giants in the pharmaceutical space is AbbVie (NYSE:ABBV). Through the takeover, AbbVie now commands the wrinkle-fighting treatment Botox. Demographically, then, ABBV appears to be one of the biotech stocks that will make you rich in 10 years. | ABBV AbbVie $149.57 PFE Pfizer $45.08 INCY Incyte $82.14 EXEL Exelixis $16.40 CRSP CRISPR Therapeutics $51.00 SRPT Sarepta $128.73 CVAC CureVac $9.50 AbbVie (ABBV) Source: shutterstock.com/Romix Image One of the giants in the pharmaceutical space is AbbVie (NYSE:ABBV). Through the takeover, AbbVie now commands the wrinkle-fighting treatment Botox. Demographically, then, ABBV appears to be one of the biotech stocks that will make you rich in 10 years. | ABBV AbbVie $149.57 PFE Pfizer $45.08 INCY Incyte $82.14 EXEL Exelixis $16.40 CRSP CRISPR Therapeutics $51.00 SRPT Sarepta $128.73 CVAC CureVac $9.50 AbbVie (ABBV) Source: shutterstock.com/Romix Image One of the giants in the pharmaceutical space is AbbVie (NYSE:ABBV). Through the takeover, AbbVie now commands the wrinkle-fighting treatment Botox. Demographically, then, ABBV appears to be one of the biotech stocks that will make you rich in 10 years. |
22868.0 | 2023-01-18 00:00:00 UTC | 2 Cheap Growth Stocks That Can Set You Up for Life | ABBV | https://www.nasdaq.com/articles/2-cheap-growth-stocks-that-can-set-you-up-for-life | nan | nan | Many would-be growth stocks out there are trading at valuations that aren't nearly as high as they were just a year or two ago. That suggests there are some deals out there for investors who know what to look for. Even if growth stocks don't fully recover this year, buying shares of growing businesses and holding them for at least three to five years can help set you up for life.
A couple of stocks that should be on your radar right now are AbbVie (NYSE: ABBV) and Microsoft (NASDAQ: MSFT). Let's take a closer look at these two "cheap" growth stocks.
1. AbbVie
AbbVie is an underrated healthcare stock that's trading at just 20 times its earnings. That's below the healthcare average of 22. Investors are likely discounting the stock right now over concerns about the patent cliff approaching for its top-selling anti-inflammatory drug Humira. The drug will lose some patent protection as early as this year.
It's not a small void to fill (Humira's sales were around $21 billion in 2021) but the company has some promising drugs in its portfolio that management believes, combined, can make up for Humira's loss in revenue. AbbVie even recently upgraded the guidance for the two immunology drugs in question -- Skyrizi and Rinvoq. Now, it estimates the two drugs will combine for up to $17.5 billion in sales by 2025, compared with its previous estimate of $15 billion. And by 2027, their combined annual sales could rise higher than $21 billion.
The improved guidance suggests things are going better than the company expected, and it could be a sign that the drugs could reach a higher peak in the future. And outside of those drugs, the company also has more than a dozen phase 3 trials ongoing that could lead to even more growth in AbbVie's future.
That growth the business will generate in the future will go great with the attractive dividend yield of 3.9% that AbbVie offers, which is well above the S&P 500 average of 1.7%. As a bonus, the stock is also a Dividend King and has an excellent track record for increasing its payouts, meaning if you buy and hold the stock you'll likely see your dividend income rise over the years. With a manageable payout ratio of 74% and more growth in its future, AbbVie makes for a solid income-generating investment.
2. Microsoft
Tech giant Microsoft is another promising growth stock that looks like it could be a steal of a deal. Not only has this been a solid market-beating investment to own over the years, but it is also trading at a price-to-earnings multiple of less than 26, which is well below its five-year average of 35.
Like AbbVie, Microsoft is full of growth potential. It has a fantastic core of products, including Azure, Dynamics 365, and Office 365, all of which generated year-over-year growth of more than 10% in Microsoft's most recent earnings report (for the period ending Sept. 30). In addition to that, the company is rumored to be in talks to invest $10 billion in artificial intelligence company OpenAI, which owns ChatGPT, as Microsoft looks to bolster its Bing search engine.
Between that, its pending acquisition of gaming company Activision Blizzard, and Microsoft sitting on more than $107 billion in cash and short-term investments, there are many growth opportunities that the business can tap into in the future.
Buying Microsoft after its 29% decline in price last year could be a great move for long-term investors as this is a stock that's likely to continue beating the markets in the long haul. It also offers a modest yield of 1.1% that can give investors some incentive to buy and hold as it has been raising its dividend for the past two decades.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A couple of stocks that should be on your radar right now are AbbVie (NYSE: ABBV) and Microsoft (NASDAQ: MSFT). AbbVie AbbVie is an underrated healthcare stock that's trading at just 20 times its earnings. AbbVie even recently upgraded the guidance for the two immunology drugs in question -- Skyrizi and Rinvoq. | That growth the business will generate in the future will go great with the attractive dividend yield of 3.9% that AbbVie offers, which is well above the S&P 500 average of 1.7%. With a manageable payout ratio of 74% and more growth in its future, AbbVie makes for a solid income-generating investment. A couple of stocks that should be on your radar right now are AbbVie (NYSE: ABBV) and Microsoft (NASDAQ: MSFT). | A couple of stocks that should be on your radar right now are AbbVie (NYSE: ABBV) and Microsoft (NASDAQ: MSFT). AbbVie AbbVie is an underrated healthcare stock that's trading at just 20 times its earnings. AbbVie even recently upgraded the guidance for the two immunology drugs in question -- Skyrizi and Rinvoq. | AbbVie AbbVie is an underrated healthcare stock that's trading at just 20 times its earnings. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! A couple of stocks that should be on your radar right now are AbbVie (NYSE: ABBV) and Microsoft (NASDAQ: MSFT). |
22869.0 | 2023-01-18 00:00:00 UTC | Pick Either Johnson & Johnson Stock Or Its Peer – Both May Offer Similar Returns | ABBV | https://www.nasdaq.com/articles/pick-either-johnson-johnson-stock-or-its-peer-both-may-offer-similar-returns | nan | nan | We believe that pharmaceutical giants Johnson & Johnson stock (NYSE: JNJ) and Merck stock (NYSE: MRK) will likely offer similar returns over the next three years. Both companies are trading at a similar valuation of around 5.0x trailing revenues. If we look at stock returns, Merck, with a stellar 37% rise in the last twelve months, has fared far better than J&J, up just 3%, and both have outperformed the broader S&P 500 index, down 15%. There is more to the comparison, and in the sections below, we discuss the possible returns for JNJ and MRK 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. Merck: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Merck’s Revenue Growth Is Better
Both companies posted sales growth over the last twelve months. Still, Merck’s revenue growth of 27.8% is higher than 5.0% for J&J.
Even if we look at a longer time frame, Merck fares better, with its sales rising at an average annual growth rate of 5.3% to $48.7 billion in 2021 vs. $42.3 billion in 2018, while J&J’s saw its revenue rise at an average rate of 4.9% to $93.8 billion in 2021, compared to $81.6 billion in 2018.
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%. The strong performance from both segments is expected to continue going forward.
The company’s pharmaceuticals business is seeing strong growth led by market share gains for its cancer drug – Darzalex – and immunology drugs, Stelara and Tremfya.
J&J 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.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil. Both of these products are seeing strong demand, with sales rising 23% y-o-y to $15.5 billion for Keytruda and a 31% uptick to $5.4 billion for Gardasil for the nine months ending Sep 2022. Both of these are expected to continue driving revenue growth for Merck.
Our Johnson & Johnson Revenue Comparison and Merck Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, J&J’s revenue growth over the next three years is expected to be slightly better than Merck’s. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 3.3% for J&J, compared to a 1.6% CAGR for Merck, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Merck Is More Profitable
Merck’s operating margin of 30.7% over the last twelve-month period is slightly better than 24.1% for J&J.
This compares with 36.2% and 24.1% figures in 2019, before the pandemic, respectively.
Merck’s free cash flow margin of 33.5% is also better than 24.8% for J&J.
Our Johnson & Johnson Operating Income Comparison and Merck Operating Income Comparison dashboards have more details.
Looking at financial risk, Merck’s 10.7% debt as a percentage of equity is better than 15.1% for J&J, while its 11.4% cash as a percentage of assets is lower than the 16.9% for J&J, implying that Merck has a better debt position, but J&J has more cash cushion.
3. The Net of It All
We see that Merck has demonstrated better revenue growth, is more profitable and has a better debt position. On the other hand, J&J has more cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both Merck and J&J are likely to offer similar returns over the next three years.
The table below summarizes our revenue and return expectations for both companies and points to an expected return of 8% for Merck over this period vs. an 11% expected return for J&J stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Merck– which also provides more details on how we arrive at these numbers.
While JNJ and MRK may offer similar returns 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.
Despite higher inflation and the Fed raising interest rates, JNJ has seen a rise of 3% in the last twelve months. But can it drop from here? 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 Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JNJ Return -2% -2% 51%
MRK Return 1% 1% 90%
S&P 500 Return 4% 4% 78%
Trefis Multi-Strategy Portfolio 8% 8% 239%
[1] Month-to-date and year-to-date as of 1/13/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If we look at stock returns, Merck, with a stellar 37% rise in the last twelve months, has fared far better than J&J, up just 3%, and both have outperformed the broader S&P 500 index, down 15%. Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. | We believe that pharmaceutical giants Johnson & Johnson stock (NYSE: JNJ) and Merck stock (NYSE: MRK) will likely offer similar returns over the next three years. Our Johnson & Johnson Operating Income Comparison and Merck Operating Income Comparison dashboards have more details. The table below summarizes our revenue and return expectations for both companies and points to an expected return of 8% for Merck over this period vs. an 11% expected return for J&J stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Merck– 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. Merck: Which Stock Is A Better Bet? Our Johnson & Johnson Revenue Comparison and Merck Revenue Comparison dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for both companies and points to an expected return of 8% for Merck over this period vs. an 11% expected return for J&J stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Merck– which also provides more details on how we arrive at these numbers. | Both companies are trading at a similar valuation of around 5.0x trailing revenues. 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. The table below summarizes our revenue and return expectations for both companies and points to an expected return of 8% for Merck over this period vs. an 11% expected return for J&J stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Merck– which also provides more details on how we arrive at these numbers. |
22870.0 | 2023-01-17 00:00:00 UTC | With Competition on the Rise, Is AbbVie's Dividend Safe? | ABBV | https://www.nasdaq.com/articles/with-competition-on-the-rise-is-abbvies-dividend-safe | nan | nan | The moment AbbVie's (NYSE: ABBV) shareholders have been dreading for years is finally coming. In late January, the company will start facing generic competition in the U.S. for its best-selling product, immunology drug Humira. Humira has been AbbVie's key asset since it became a stand-alone company in 2013.
The pharma giant was able to survive Humira's loss of exclusivity in Europe in 2018 thanks to growing sales in the U.S. But the medicine's revenue will start dropping in the country soon, which could impact one of AbbVie's best selling points: the company's attractive dividend. Is it time for investors to look elsewhere?
ABBV Total Return Level data by YCharts
Management doesn't seem too worried
In October 2022, AbbVie announced a 5% dividend increase -- starting with the one that will be payable in February -- when it released its third-quarter earnings report. Management likely knew Humira's generics would have entered the market by then, so the dividend hike signals that the company isn't losing sleep over this issue. In fact, it seems AbbVie is confident that its business can handle more dividend growth even with the loss of exclusivity for its most prized asset.
Perhaps part of this confidence comes from AbbVie's ability to generate more than enough cash to cover its dividend payments. The company's cash payout ratio is currently about 45% -- where anything under 60% is generally considered good. So even a non-negligible decrease in AbbVie's cash flow generation that leads to its cash payout ratio increasing by a massive 15% wouldn't be catastrophic for the company's dividend.
Here is one more thing to consider: AbbVie is a Dividend King. The drugmaker has raised its payout for 50 consecutive years when counting the time it spent as a division of medical device giant Abbott Laboratories. Failing to increase its dividend for even one year would result in being knocked out of this highly exclusive club and having to start from scratch, perhaps joining the clique again in another 50 years. Needless to say, management wouldn't want that to happen.
And beyond its reasonable cash payout ratio, AbbVie and its shareholders have other reasons not to be worried.
Passing of the torch
AbbVie expects its top line to fall this year and the next, but it should return to growth by 2025. The company's most important products moving forward will be a pair of immunology drugs, Skyrizi and Rinvoq. Combined, these two medicines substantially overlap with Humira as they have won many similar approvals and indications. These two products haven't disappointed in terms of sales, either. AbbVie expects that to continue.
The company predicts over $17.5 billion in combined revenue for Skyrizi and Rinvoq in 2025. In the first nine months of 2022, that number came in at $5.3 billion. What's more, AbbVie's new growth drivers should exceed Humira's peak annual sales by 2027, generating more than $21 billion in revenue by then.
Beyond that, AbbVie will likely make headway in other therapeutic areas. For instance, the company expects its oncology sales to remain flat in 2024 and 2025, but as it earns new indications for cancer medicines such as Venclexta and Imbruvica, it should return to growth. Further, with dozens of programs across its pipeline, AbbVie should be able to add brand-new products and earn label expansions for many others.
While the end of Humira's era isn't great news, AbbVie seems more than ready to embark on a new one.
Still an outstanding dividend stock
AbbVie has raised its dividend by 270% since it went public in January 2013. That's an impressive track record. And even with Humira's loss of exclusivity looming, investors can be confident that the company will be able to fill that massive gap with products such as Rinvoq, Skyrizi, and others.
Eventually, revenue and profit growth will come back, and in the meantime, AbbVie can sustain and even increase its payouts. In short, those looking for a great dividend stock can still buy shares of this pharma giant.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. 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. | ABBV Total Return Level data by YCharts Management doesn't seem too worried In October 2022, AbbVie announced a 5% dividend increase -- starting with the one that will be payable in February -- when it released its third-quarter earnings report. The moment AbbVie's (NYSE: ABBV) shareholders have been dreading for years is finally coming. Humira has been AbbVie's key asset since it became a stand-alone company in 2013. | And beyond its reasonable cash payout ratio, AbbVie and its shareholders have other reasons not to be worried. The moment AbbVie's (NYSE: ABBV) shareholders have been dreading for years is finally coming. Humira has been AbbVie's key asset since it became a stand-alone company in 2013. | ABBV Total Return Level data by YCharts Management doesn't seem too worried In October 2022, AbbVie announced a 5% dividend increase -- starting with the one that will be payable in February -- when it released its third-quarter earnings report. So even a non-negligible decrease in AbbVie's cash flow generation that leads to its cash payout ratio increasing by a massive 15% wouldn't be catastrophic for the company's dividend. Still an outstanding dividend stock AbbVie has raised its dividend by 270% since it went public in January 2013. | What's more, AbbVie's new growth drivers should exceed Humira's peak annual sales by 2027, generating more than $21 billion in revenue by then. The moment AbbVie's (NYSE: ABBV) shareholders have been dreading for years is finally coming. Humira has been AbbVie's key asset since it became a stand-alone company in 2013. |
22871.0 | 2023-01-17 00:00:00 UTC | Could This FDA Approval Boost AbbVie's Stock? | ABBV | https://www.nasdaq.com/articles/could-this-fda-approval-boost-abbvies-stock | nan | nan | On Dec. 16, the U.S. Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Vraylar the go-ahead as an adjunctive (add-on) treatment for patients with major depressive disorder (MDD).
What was the clinical data behind the FDA's decision to award Vraylar with its fourth indication? And what could this news mean for the pharmaceutical company's financial future? Let's take a look at the results from Vraylar's phase 3 clinical trial and at the U.S. MDD market to find out.
Another treatment now for a common condition
MDD is a prevalent mental health disorder. It is estimated that 10.4% of Americans experience the condition in any given year, and that the lifetime prevalence in the U.S is 20.6%.
The diagnostic criteria for clinical depression are outlined by the fifth edition of The Diagnostic and Statistical Manual of Mental Disorders (DSM). At least five of the eight symptoms of the malady must occur for two weeks or longer to be diagnosed with clinical depression. These symptoms include, but aren't limited to: a depressed mood, a loss of pleasure in activities, a decrease in physical activity, fatigue, feelings of worthlessness, and an inability to concentrate.
These symptoms can adversely impact a patient's quality of life. Perhaps it's no surprise then that economists believe depression cost the U.S. economy a staggering $326 billion in 2020 alone.
And while antidepressant medications can be helpful in treating clinical depression, the success rate of a single therapy is only around 50%. Fortunately, this is where adjunctive treatments such as Vraylar could become effective options for healthcare providers and their patients.
Patients with MDD were enrolled in two phase 3 clinical trials. In both, they received a combination of antidepressant therapy and either 1.5 milligrams Vraylar daily, 3 mg Vraylar daily, or placebo. The primary endpoint in the study was a healthcare-professional-administered score known as the Montgomery-Åsberg Depression Rating Scale.
Surprisingly, patients taking the lower (1.5 mg) dose of Vraylar experienced a statistically significant improvement in that phase 3 clinical trial at week six, but the 3 mg dose of Vraylar didn't help patients achieve statistically significant improvement. In the other study, neither the 1.5 mg nor 3mg dose helped patients reach a statistically significant improvement in the MADRS score.
Even with these results, Vraylar did at least do much better than placebo therapy in both clinical trials. This is why it could still be a decent adjunctive treatment to add to the options that already exist.
Image source: Getty Images.
How much difference to the bottom line?
Vraylar could be a difference maker for countless MDD patients. But how much of a difference could it make for AbbVie's top line?
MDD impacts 19 million people in the U.S., and potentially up to half of this market could benefit from an add-on therapy. But the mixed results of Vraylar in its clinical trials could make it difficult for the drug to stand out from the crowded MDD adjunctive therapy market. There are already many available treatments, such as Abilify, Rexulti, and Seroquel XR.
However, none of these treatments works for everyone. This is why I believe that Vraylar could conservatively net 100,000 patients in this crowded market. The drug's annual list price is approximately $16,500 in the U.S. But with financial assistance and downward adjustments in the price by health insurers, almost nobody ends up paying nearly this much, so I'll use a net annual price per patient of $4,000. Thus, the MDD indication for Vraylar could add $400 million in annual revenue for AbbVie.
Stacked up against the $58.3 billion revenue base that analysts expect for the drugmaker in 2022, this would be just a 0.7% lift. But it could be roughly a 20% boost to the $2 billion in revenue that AbbVie is expected to announce that Vraylar generated in 2022. This would be a nice boost for a drug that's already generating double-digit percentage revenue growth for the company.
AbbVie is at a buyable valuation
AbbVie will face headwinds this year stemming from the U.S. patent expiration of Humira. The good news is that the company has almost five-dozen compounds currently in different stages of clinical development for numerous indications. As more new drugs are launched and the initial brunt of the revenue decline from Humira is absorbed, AbbVie should return to solid growth in a few years.
The company's forward price-to-earnings ratio of 13 is moderately below the drug manufacturing industry's average of 15.3. Taking AbbVie's fundamentals into consideration, the stock still looks like a smart buy.
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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. | On Dec. 16, the U.S. Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Vraylar the go-ahead as an adjunctive (add-on) treatment for patients with major depressive disorder (MDD). As more new drugs are launched and the initial brunt of the revenue decline from Humira is absorbed, AbbVie should return to solid growth in a few years. But how much of a difference could it make for AbbVie's top line? | Thus, the MDD indication for Vraylar could add $400 million in annual revenue for AbbVie. On Dec. 16, the U.S. Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Vraylar the go-ahead as an adjunctive (add-on) treatment for patients with major depressive disorder (MDD). But how much of a difference could it make for AbbVie's top line? | On Dec. 16, the U.S. Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Vraylar the go-ahead as an adjunctive (add-on) treatment for patients with major depressive disorder (MDD). But how much of a difference could it make for AbbVie's top line? Thus, the MDD indication for Vraylar could add $400 million in annual revenue for AbbVie. | On Dec. 16, the U.S. Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Vraylar the go-ahead as an adjunctive (add-on) treatment for patients with major depressive disorder (MDD). Thus, the MDD indication for Vraylar could add $400 million in annual revenue for AbbVie. But how much of a difference could it make for AbbVie's top line? |
22872.0 | 2023-01-17 00:00:00 UTC | AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-dips-more-than-broader-markets%3A-what-you-should-know-1 | nan | nan | AbbVie (ABBV) closed at $152.83 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq gained 1.39%.
Heading into today, shares of the drugmaker had lost 4.89% over the past month, lagging the Medical sector's gain of 1.12% and the S&P 500's gain of 4.01% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. Meanwhile, our latest consensus estimate is calling for revenue of $15.38 billion, up 3.29% from the prior-year quarter.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.27% higher within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 13.14 right now. Its industry sports an average Forward P/E of 14.64, so we one might conclude that AbbVie is trading at a discount comparatively.
It is also worth noting that ABBV currently has a PEG ratio of 3.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $152.83 in the latest trading session, marking a -0.5% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed at $152.83 in the latest trading session, marking a -0.5% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed at $152.83 in the latest trading session, marking a -0.5% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. | AbbVie (ABBV) closed at $152.83 in the latest trading session, marking a -0.5% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. |
22873.0 | 2023-01-17 00:00:00 UTC | This Monumental Breakthrough Could Turn the World Upside Down -- and Make Some Investors Filthy Rich | ABBV | https://www.nasdaq.com/articles/this-monumental-breakthrough-could-turn-the-world-upside-down-and-make-some-investors | nan | nan | You might have heard the stories about Ponce de Leon's search for the fountain of youth. As it turns out, there's no evidence that the Spanish explorer actually embarked on such a search. The stories appear to be as mythical as the fountain of youth itself.
But the idea of restoring youth could be about to move from myth to reality. Scientists announced a monumental breakthrough last week that could turn the world upside down. And it just might make some investors filthy rich.
Unlocking the cause of aging
The conventional wisdom among scientists for years has been that DNA mutations over time cause aging. However, a team of scientists led by Harvard Medical School professor David Sinclair appears to have shown that epigenetic changes (chemical and structural changes that affect genes, but without DNA sequence alterations) could instead be an important -- and perhaps even primary -- cause of aging.
Image source: Getty Images.
Sinclair and his fellow researchers published results on Jan. 12, 2023, in the scientific journal Cell detailing their findings from a 13-year study. His previous research had shown that epigenetic changes coincide with aging. However, last week's report demonstrated that these epigenetic changes actually drive aging.
In the recently concluded study, scientists induced aging in mice by mimicking breaks in chromosomes that didn't alter their genetic code. Such breaks occur naturally over time in mice and other animals. Sinclair's team pressed the fast-forward button with their approach to make the mice age much more quickly.
But they didn't stop there. The researchers then injected a gene therapy in the mice that reversed the induced epigenetic changes. The mice appeared to be made young again, with no signs of aging. This process could even be repeated, with the scientists inducing aging in mice and restoring their youth at will.
Sinclair told CNN that the mice cells went back "to between 50% and 75% of the original age." He said that the upper range appeared to be the limit for age reversal, but that the team didn't yet understand why.
Head-spinning implications
The research team is already moving forward with testing this same approach, which they call ICE (inducible changes to the epigenome) in monkeys. Their goal is to conduct studies in humans if the preclinical testing goes well, focusing on age-related diseases that cause blindness.
Inducing epigenetic changes might not work in humans. Even if it does, it could be decades before it's available outside clinical studies. However, there's no question that the potential for age-reversing gene therapy has head-spinning implications.
In his interview with CNN, Sinclair stated, "We're talking about taking someone who's old or sick and making their whole body or a specific organ young again, so the disease goes away." Age-related diseases such as Alzheimer's disease, cardiovascular disease, and neuromuscular degeneration could one day be reversible.
This would radically transform society. Healthcare costs associated with caring for the elderly could decline. Social Security and Medicare would probably need to be dramatically overhauled as Americans live longer lives. Many people would likely work longer, shaking up the workplace.
A way-too-early look at investing opportunities
Trying to identify investing opportunities at this point with the ICE approach is admittedly getting the cart way before the horse. But it's not too early to predict that some investors could become filthy rich over time if ICE pans out.
Sinclair and several scientists on his team have affiliations with biotech companies, including Cantata Bio, Life Biosciences, and Zymo Research. Most of these companies remain privately held for now, though. Another private company, Rejuvenate Bio, is also pursuing similar research and recently reported results from a study where it modestly increased longevity in elderly mice. If one or more of these biotechs go public, they could generate huge returns in the future if their testing is successful.
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Calico also focuses on research to extend the human life span. It teamed up with AbbVie (NYSE: ABBV) to develop new therapies for age-related diseases. The two big partners are likely closely watching the latest developments, especially considering that AbbVie already has epigenetics programs underway.
There's also an entire industry that could benefit significantly as advances are made in treating age-related diseases. Health insurance stocks should soar if new innovations make it possible to lower healthcare costs. UnitedHealth Group (NYSE: UNH) ranks as the biggest health insurer based on market cap and stands out as one of the best picks right now.
Of course, where there are winners, there are also losers. Companies such as Biogen (NASDAQ: BIIB) and Eisai (OTC: ESALY), which recently secured U.S. regulatory approval for Alzheimer's disease drug Lequembi, could see their profits zapped if major progress is made with ICE.
Again, it's way too early for investors to jump on a given horse in this race. But the findings announced last week really could be game changing and generate massive wealth down the road.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in AbbVie and Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Biogen and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It teamed up with AbbVie (NYSE: ABBV) to develop new therapies for age-related diseases. The two big partners are likely closely watching the latest developments, especially considering that AbbVie already has epigenetics programs underway. Keith Speights has positions in AbbVie and Alphabet. | It teamed up with AbbVie (NYSE: ABBV) to develop new therapies for age-related diseases. The two big partners are likely closely watching the latest developments, especially considering that AbbVie already has epigenetics programs underway. Keith Speights has positions in AbbVie and Alphabet. | It teamed up with AbbVie (NYSE: ABBV) to develop new therapies for age-related diseases. The two big partners are likely closely watching the latest developments, especially considering that AbbVie already has epigenetics programs underway. Keith Speights has positions in AbbVie and Alphabet. | It teamed up with AbbVie (NYSE: ABBV) to develop new therapies for age-related diseases. The two big partners are likely closely watching the latest developments, especially considering that AbbVie already has epigenetics programs underway. Keith Speights has positions in AbbVie and Alphabet. |
22874.0 | 2023-01-17 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-5 | 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 $332.83 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.93%.
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, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV).
The top 10 holdings account for about 60.62% of total assets under management.
Performance and Risk
The ETF return is roughly 1.55% so far this year and is up about 2.01% in the last one year (as of 01/17/2023). In that past 52-week period, it has traded between $69.08 and $83.54.
The ETF has a beta of 0.69 and standard deviation of 22.41% for the trailing three-year period, making it a high risk choice in the space. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PJP is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $423.50 million in assets, VanEck Pharmaceutical ETF has $594.86 million. IHE has an expense ratio of 0.39% and PPH charges 0.35%.
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 Pharmaceuticals ETF (PJP): ETF Research Reports
Pfizer Inc. (PFE) : Free Stock Analysis Report
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iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
VanEck Pharmaceutical ETF (PPH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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 Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). 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 Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Alternatives Invesco Dynamic Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : 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. |
22875.0 | 2023-01-17 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-61 | 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
Medtronic PLC (Symbol: MDT) $80.59 $87.29 8.32%
Nordson Corp. (Symbol: NDSN) $243.84 $263.17 7.93%
AbbVie Inc (Symbol: ABBV) $153.60 $164.57 7.14%
PepsiCo Inc (Symbol: PEP) $175.24 $186.93 6.67%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $198.25 $211.25 6.56%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Medtronic PLC (Symbol: MDT) 3.38% 8.32% 11.7%
Nordson Corp. (Symbol: NDSN) 1.07% 7.93% 9%
AbbVie Inc (Symbol: ABBV) 3.85% 7.14% 10.99%
PepsiCo Inc (Symbol: PEP) 2.62% 6.67% 9.29%
RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.75% 6.56% 7.31%
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
Medtronic PLC (Symbol: MDT) $2.47 $2.67 8.10%
Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89%
AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53%
PepsiCo Inc (Symbol: PEP) $4.248 $4.525 6.52%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Medtronic PLC (Symbol: MDT) $80.59 $87.29 8.32% Nordson Corp. (Symbol: NDSN) $243.84 $263.17 7.93% AbbVie Inc (Symbol: ABBV) $153.60 $164.57 7.14% PepsiCo Inc (Symbol: PEP) $175.24 $186.93 6.67% RenaissanceRe Holdings Ltd. (Symbol: RNR) $198.25 $211.25 6.56% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 3.38% 8.32% 11.7% Nordson Corp. (Symbol: NDSN) 1.07% 7.93% 9% AbbVie Inc (Symbol: ABBV) 3.85% 7.14% 10.99% PepsiCo Inc (Symbol: PEP) 2.62% 6.67% 9.29% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.75% 6.56% 7.31% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.47 $2.67 8.10% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% PepsiCo Inc (Symbol: PEP) $4.248 $4.525 6.52% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% These five stocks are part of our full Dividend Aristocrats List. | Medtronic PLC (Symbol: MDT) $80.59 $87.29 8.32% Nordson Corp. (Symbol: NDSN) $243.84 $263.17 7.93% AbbVie Inc (Symbol: ABBV) $153.60 $164.57 7.14% PepsiCo Inc (Symbol: PEP) $175.24 $186.93 6.67% RenaissanceRe Holdings Ltd. (Symbol: RNR) $198.25 $211.25 6.56% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 3.38% 8.32% 11.7% Nordson Corp. (Symbol: NDSN) 1.07% 7.93% 9% AbbVie Inc (Symbol: ABBV) 3.85% 7.14% 10.99% PepsiCo Inc (Symbol: PEP) 2.62% 6.67% 9.29% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.75% 6.56% 7.31% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.47 $2.67 8.10% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% PepsiCo Inc (Symbol: PEP) $4.248 $4.525 6.52% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% These five stocks are part of our full Dividend Aristocrats List. | Medtronic PLC (Symbol: MDT) $80.59 $87.29 8.32% Nordson Corp. (Symbol: NDSN) $243.84 $263.17 7.93% AbbVie Inc (Symbol: ABBV) $153.60 $164.57 7.14% PepsiCo Inc (Symbol: PEP) $175.24 $186.93 6.67% RenaissanceRe Holdings Ltd. (Symbol: RNR) $198.25 $211.25 6.56% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 3.38% 8.32% 11.7% Nordson Corp. (Symbol: NDSN) 1.07% 7.93% 9% AbbVie Inc (Symbol: ABBV) 3.85% 7.14% 10.99% PepsiCo Inc (Symbol: PEP) 2.62% 6.67% 9.29% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.75% 6.56% 7.31% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.47 $2.67 8.10% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% PepsiCo Inc (Symbol: PEP) $4.248 $4.525 6.52% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% These five stocks are part of our full Dividend Aristocrats List. | Medtronic PLC (Symbol: MDT) $80.59 $87.29 8.32% Nordson Corp. (Symbol: NDSN) $243.84 $263.17 7.93% AbbVie Inc (Symbol: ABBV) $153.60 $164.57 7.14% PepsiCo Inc (Symbol: PEP) $175.24 $186.93 6.67% RenaissanceRe Holdings Ltd. (Symbol: RNR) $198.25 $211.25 6.56% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 3.38% 8.32% 11.7% Nordson Corp. (Symbol: NDSN) 1.07% 7.93% 9% AbbVie Inc (Symbol: ABBV) 3.85% 7.14% 10.99% PepsiCo Inc (Symbol: PEP) 2.62% 6.67% 9.29% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.75% 6.56% 7.31% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.47 $2.67 8.10% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% PepsiCo Inc (Symbol: PEP) $4.248 $4.525 6.52% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% These five stocks are part of our full Dividend Aristocrats List. |
22876.0 | 2023-01-16 00:00:00 UTC | Pick Either Merck Stock Or Its Peer – Both May Offer Similar Returns | ABBV | https://www.nasdaq.com/articles/pick-either-merck-stock-or-its-peer-both-may-offer-similar-returns | nan | nan | We believe that pharmaceutical giants Merck stock (NYSE: MRK) and Pfizer stock (NYSE: PFE) will likely offer similar returns over the next three years. Although Merck is trading at a comparatively higher valuation of 4.9x trailing revenues vs.2.9x for Pfizer, this valuation gap can be attributed to Merck’s lower financial risk, as discussed below.
If we look at stock returns, Merck’s 37% growth in the last twelve months is much better than the 16% fall for Pfizer and -16% returns for the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss the possible stock returns for MRK and PFE 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. Pfizer: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Pfizer Revenue Growth Is Better
Both companies posted strong double-digit sales growth over the last twelve months. Still, Pfizer’s revenue growth of 44.5% is higher than 27.8% for Merck.
However, if we look at a longer time frame, Pfizer saw its revenue grow at an average annual rate of 32.2% to $81.3 billion in 2021, compared to $40.8 billion in 2018, while Merck saw its sales grow at an average growth rate of 5.3% to $48.7 billion in 2021 vs. $42.3 billion in 2018.
Pfizer’s sales over the recent years were primarily driven by a very high demand for the Covid-19 vaccine. However, the demand for Covid-19 vaccines is also declining with a rise in the global vaccination rate. This will likely weigh on Pfizer’s revenue growth over the coming years.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil. Both of these products are seeing strong demand, with sales rising 23% y-o-y to $15.5 billion for Keytruda and a 31% uptick to $5.4 billion for Gardasil for the nine months ending Sep 2022. Both of these are expected to continue driving revenue growth for Merck.
Our Pfizer Revenue Comparison and Merck Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, revenue for both companies is expected to grow at a similar pace 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 1.6% for both Pfizer and Merck, based on Trefis Machine Learning analysis.
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 forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Pfizer Is More Profitable But Comes At Higher Risk
Merck’s operating margin of 30.7% over the last twelve-month period is slightly lower than 33.6% for Pfizer.
This compares with 36.2% and 18.7% figures seen in 2019, before the pandemic, respectively.
Merck’s free cash flow margin of 33.5% is slightly better than 26.6% for Pfizer.
Our Pfizer Operating Income Comparison and Merck Operating Income Comparison dashboards have more details.
Looking at financial risk, Merck is placed better. Its 10.8% debt as a percentage of equity is slightly lower than 13.8% for Pfizer, while its 11.4% cash as a percentage of assets is higher than 0.7% for the latter, implying that Merck has a better debt position and more cash cushion.
3. The Net of It All
We see that Pfizer has demonstrated better revenue growth, is more profitable, and is available at a comparatively lower valuation. On the other hand, Merck has a better debt position and more cash cushion, implying lower financial risk.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both Merck and Pfizer are likely to offer similar returns over the next three years.
The table below summarizes our revenue and return expectations for Merck and Pfizer over the next three years and points to an expected return of 9% for Merck over this period vs. a 13% expected return for Pfizer stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Merck vs. Pfizer– which also provides more details on how we arrive at these numbers.
While MRK and PFE may offer similar returns, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite inflation rising and the Fed raising interest rates, Merck stock has risen 37% in the last twelve months. 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 Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return 0% 0% 89%
PFE Return -7% -7% 46%
S&P 500 Return 3% 3% 77%
Trefis Multi-Strategy Portfolio 7% 7% 236%
[1] Month-to-date and year-to-date as of 1/12/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Merck vs. Pfizer: Which Stock Is A Better Bet? Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. | We believe that pharmaceutical giants Merck stock (NYSE: MRK) and Pfizer stock (NYSE: PFE) will likely offer similar returns over the next three years. However, if we look at a longer time frame, Pfizer saw its revenue grow at an average annual rate of 32.2% to $81.3 billion in 2021, compared to $40.8 billion in 2018, while Merck saw its sales grow at an average growth rate of 5.3% to $48.7 billion in 2021 vs. $42.3 billion in 2018. Our Pfizer Operating Income Comparison and Merck Operating Income Comparison dashboards 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. Pfizer: Which Stock Is A Better Bet? However, if we look at a longer time frame, Pfizer saw its revenue grow at an average annual rate of 32.2% to $81.3 billion in 2021, compared to $40.8 billion in 2018, while Merck saw its sales grow at an average growth rate of 5.3% to $48.7 billion in 2021 vs. $42.3 billion in 2018. The table below summarizes our revenue and return expectations for Merck and Pfizer over the next three years and points to an expected return of 9% for Merck over this period vs. a 13% expected return for Pfizer stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Merck vs. Pfizer– which also provides more details on how we arrive at these numbers. | 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. Pfizer Is More Profitable But Comes At Higher Risk Merck’s operating margin of 30.7% over the last twelve-month period is slightly lower than 33.6% for Pfizer. The table below summarizes our revenue and return expectations for Merck and Pfizer over the next three years and points to an expected return of 9% for Merck over this period vs. a 13% expected return for Pfizer stock, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Merck vs. Pfizer– which also provides more details on how we arrive at these numbers. |
22877.0 | 2023-01-16 00:00:00 UTC | BioMed X Extends Research Collaboration With AbbVie On Immunology And Tissue Engineering | ABBV | https://www.nasdaq.com/articles/biomed-x-extends-research-collaboration-with-abbvie-on-immunology-and-tissue-engineering | nan | nan | (RTTNews) - BioMed X, an independent German biomedical research institute, said that it has extended its ongoing research collaboration with AbbVie (ABBV). This marks the launch of the first BioMed X Institute in the US, to be located in New Haven, Connecticut.
BioMed X noted that the new US-based research collaboration will focus on immunology and tissue engineering, following a first joint research project on Alzheimer's disease at the BioMed X Institute in Heidelberg, Germany.
The company stated that the new BioMed X Institute will be managed by Mark Johnston, an experienced biotech entrepreneur and business leader who recently joined BioMed X.
The current partnership with AbbVie is focused on the development of a new tissue engineering platform to produce complex human ex vivo models (disease-on-a-chip) from primary human cells and tissues to study human tissue inflammation.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - BioMed X, an independent German biomedical research institute, said that it has extended its ongoing research collaboration with AbbVie (ABBV). The current partnership with AbbVie is focused on the development of a new tissue engineering platform to produce complex human ex vivo models (disease-on-a-chip) from primary human cells and tissues to study human tissue inflammation. This marks the launch of the first BioMed X Institute in the US, to be located in New Haven, Connecticut. | (RTTNews) - BioMed X, an independent German biomedical research institute, said that it has extended its ongoing research collaboration with AbbVie (ABBV). The current partnership with AbbVie is focused on the development of a new tissue engineering platform to produce complex human ex vivo models (disease-on-a-chip) from primary human cells and tissues to study human tissue inflammation. BioMed X noted that the new US-based research collaboration will focus on immunology and tissue engineering, following a first joint research project on Alzheimer's disease at the BioMed X Institute in Heidelberg, Germany. | The current partnership with AbbVie is focused on the development of a new tissue engineering platform to produce complex human ex vivo models (disease-on-a-chip) from primary human cells and tissues to study human tissue inflammation. (RTTNews) - BioMed X, an independent German biomedical research institute, said that it has extended its ongoing research collaboration with AbbVie (ABBV). BioMed X noted that the new US-based research collaboration will focus on immunology and tissue engineering, following a first joint research project on Alzheimer's disease at the BioMed X Institute in Heidelberg, Germany. | (RTTNews) - BioMed X, an independent German biomedical research institute, said that it has extended its ongoing research collaboration with AbbVie (ABBV). The current partnership with AbbVie is focused on the development of a new tissue engineering platform to produce complex human ex vivo models (disease-on-a-chip) from primary human cells and tissues to study human tissue inflammation. This marks the launch of the first BioMed X Institute in the US, to be located in New Haven, Connecticut. |
22878.0 | 2023-01-16 00:00:00 UTC | 3 Top-Ranked Dividend Stocks: A Smarter Way to Boost Your Retirement Income | ABBV | https://www.nasdaq.com/articles/3-top-ranked-dividend-stocks%3A-a-smarter-way-to-boost-your-retirement-income-47 | nan | nan | Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.
And older Americans have legitimate reasons for this worry, even if they have dutifully saved for their golden years. That's because the traditional ways people manage retirement may no longer provide enough income to meet expenses - and with people generally living longer, the principal retirement savings is exhausted far too early in the retirement period.
The tried-and-true retirement investing approach of yesterday doesn't work today.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.
That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million.
In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.
So what can retirees do? You could dramatically reduce your expenses, and go out on a limb hoping your Social Security benefits don't diminish. On the other hand, you could opt for an alternative investment that gives a steady, higher-rate income stream to supplant lessening bond yields.
Invest in Dividend Stocks
As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 3.85%. This compares to the Large Cap Pharmaceuticals industry's yield of 2.31% and the S&P 500's yield of 1.61%. The company's annualized dividend growth in the past year was 8.46%. Check AbbVie (ABBV) dividend history here>>>
The Bank of New York Mellon Corporation (BK) is paying out a dividend of $0.37 per share at the moment, with a dividend yield of 3.02% compared to the Banks - Major Regional industry's yield of 3.21% and the S&P 500's yield. The annualized dividend growth of the company was 8.82% over the past year. Check The Bank of New York Mellon Corporation (BK) dividend history here>>>
Currently paying a dividend of $0.33 per share, Conagra Brands (CAG) has a dividend yield of 3.31%. This is compared to the Food - Miscellaneous industry's yield of 0% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.6%. Check Conagra Brands (CAG) dividend history here>>>
But aren't stocks generally more risky than bonds?
Yes, that's true. As a broad category, bonds carry less risk than stocks. However, the stocks we are talking about - dividend -paying stocks from high-quality companies - can generate income over time and also mitigate the overall volatility of your portfolio compared to the stock market as a whole.
An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.
Bottom Line
Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
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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Conagra Brands (CAG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 3.85%. Check AbbVie (ABBV) dividend history here>>> The Bank of New York Mellon Corporation (BK) is paying out a dividend of $0.37 per share at the moment, with a dividend yield of 3.02% compared to the Banks - Major Regional industry's yield of 3.21% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Check AbbVie (ABBV) dividend history here>>> The Bank of New York Mellon Corporation (BK) is paying out a dividend of $0.37 per share at the moment, with a dividend yield of 3.02% compared to the Banks - Major Regional industry's yield of 3.21% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 3.85%. | Check AbbVie (ABBV) dividend history here>>> The Bank of New York Mellon Corporation (BK) is paying out a dividend of $0.37 per share at the moment, with a dividend yield of 3.02% compared to the Banks - Major Regional industry's yield of 3.21% and the S&P 500's yield. AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 3.85%. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie (ABBV) is currently shelling out a dividend of $1.48 per share, with a dividend yield of 3.85%. Check AbbVie (ABBV) dividend history here>>> The Bank of New York Mellon Corporation (BK) is paying out a dividend of $0.37 per share at the moment, with a dividend yield of 3.02% compared to the Banks - Major Regional industry's yield of 3.21% and the S&P 500's yield. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22879.0 | 2023-01-16 00:00:00 UTC | 5 Dividend Kings I Bought for My Portfolio | ABBV | https://www.nasdaq.com/articles/5-dividend-kings-i-bought-for-my-portfolio | nan | nan | In periods of rising inflation and slowing economic growth, one constant investors can count on is the reliability of dividend stocks to see them through.
The asset managers at Hartford Funds looked at the performance of the benchmark S&P 500 going all the way back to 1930 and found that dividends contributed 40% to the total return of the index over that 91-year period. The study also found that from 1960 to 2021, dividends represented an astounding 84% of the index's total return.
But which dividend stocks should you buy? In times of turmoil, I like buying stocks with long histories of not only paying dividends, but raising their payouts. For that I turn to Dividend Kings, or stocks that have increased their dividends every year for 50 years or more.
Image source: Getty Images.
These stocks have been through world wars and global pandemics, recessions and depressions, but never fail to share their success with investors. Here are five Dividend Kings I've bought to help see my portfolio through these turbulent times.
PPG Industries
Paint and coatings specialist PPG Industries (NYSE: PPG) has a long, illustrious existence. It was founded in 1883 and has paid a dividend to shareholders every year since 1899. It has raised its payout consistently for 51 years.
What makes PPG resistant to the vagaries of the market is that while a housing boom like we recently experienced provides opportunities for growth from new home sales, a downturn is still a catalyst as homeowners resort to repair and renovation. And as we saw during the pandemic, homeowners spruced up their homes because they were stuck inside.
PPG also sees the architectural coatings market as having unique growth potential, and recently partnered with Home Depot to help it expand its commercial market.
AbbVie
Even though pharmaceutical stock AbbVie (NYSE: ABBV) was only spun off from Abbott Laboratories in 2013, it is considered a Dividend King anyway because it is credited with the dividend history of its former parent, which began hiking the payout in 1972. AbbVie has continued that tradition -- increasing its quarterly payout by 270% since the company's creation. Currently, the dividend yields 3.8% annually.
Although AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue, it has a robust lineup of other drugs looking to supplement the therapy's track record while also expanding the indications for its use both here and internationally. Expect the pharma stock to keep growing for years to come.
American States Water
Utility companies were the original "widows and orphans" stocks because of their stable revenue streams. While energy competition has changed the game somewhat, American States Water (NYSE: AWR) is one of the industry stalwarts. No company has a longer record of raising its dividend than this utility charged with providing clean water and electricity to Southern California.
American States Water has regularly paid a dividend to its investors for 86 straight years, and has raised the payout each and every year for 68 consecutive years. It also has long-term contracts with the U.S. government to provide water to 11 military bases, giving it further consistency in its business.
Image source: Getty Images.
Kimberly-Clark
Arguably best-known for its Huggies diapers and Kleenex brand of tissue, Kimberly-Clark (NYSE: KMB) is a global consumer products giant with a portfolio of well-known brands essential to a quarter of the world's population. It has a foothold in 175 countries and generates over $20 billion in annual sales.
What makes Kimberly-Clark so resilient is that its products are those we use every day, meaning it constantly has customers coming back to buy more. That sort of consistency has allowed the company to raise its dividend for 50 straight years, and it has made a payment to shareholders every year since 1934.
Lowe's
Like PPG above, home improvement center Lowe's Companies (NYSE: LOW) benefits from consumer demand regardless of the direction the housing market takes. While also not completely immune from downturns, the likelihood people will shelter in place in an economic storm means they will want to brighten their digs just as much -- if not more so -- as they do when times are good. It's the sort of affordable splurge that can brighten spirits as well as the home.
Much more so than rival Home Depot, where professional contractors represent 45% of total sales, Lowe's caters more to consumers. The professional customer only accounts for a quarter of its sales. Home décor is its largest segment, with almost $8.2 billion in sales in the third quarter.
Lowe's has paid a dividend every year since going public in 1961, and it began raising the payout the very next year, giving it a 61-year record of hiking its dividend.
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Rich Duprey has positions in AbbVie, American States Water, Kimberly Clark, Lowe's Companies, and PPG Industries. The Motley Fool has positions in and recommends Abbott Laboratories and Home Depot. The Motley Fool recommends Lowe's Companies. 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 Even though pharmaceutical stock AbbVie (NYSE: ABBV) was only spun off from Abbott Laboratories in 2013, it is considered a Dividend King anyway because it is credited with the dividend history of its former parent, which began hiking the payout in 1972. AbbVie has continued that tradition -- increasing its quarterly payout by 270% since the company's creation. Although AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue, it has a robust lineup of other drugs looking to supplement the therapy's track record while also expanding the indications for its use both here and internationally. | See the 10 stocks *Stock Advisor returns as of January 9, 2023 Rich Duprey has positions in AbbVie, American States Water, Kimberly Clark, Lowe's Companies, and PPG Industries. AbbVie Even though pharmaceutical stock AbbVie (NYSE: ABBV) was only spun off from Abbott Laboratories in 2013, it is considered a Dividend King anyway because it is credited with the dividend history of its former parent, which began hiking the payout in 1972. AbbVie has continued that tradition -- increasing its quarterly payout by 270% since the company's creation. | AbbVie Even though pharmaceutical stock AbbVie (NYSE: ABBV) was only spun off from Abbott Laboratories in 2013, it is considered a Dividend King anyway because it is credited with the dividend history of its former parent, which began hiking the payout in 1972. AbbVie has continued that tradition -- increasing its quarterly payout by 270% since the company's creation. Although AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue, it has a robust lineup of other drugs looking to supplement the therapy's track record while also expanding the indications for its use both here and internationally. | See the 10 stocks *Stock Advisor returns as of January 9, 2023 Rich Duprey has positions in AbbVie, American States Water, Kimberly Clark, Lowe's Companies, and PPG Industries. AbbVie Even though pharmaceutical stock AbbVie (NYSE: ABBV) was only spun off from Abbott Laboratories in 2013, it is considered a Dividend King anyway because it is credited with the dividend history of its former parent, which began hiking the payout in 1972. AbbVie has continued that tradition -- increasing its quarterly payout by 270% since the company's creation. |
22880.0 | 2023-01-16 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-4 | 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 $5.04 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. 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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.44%.
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 Energy sector--about 21.60% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 10.41% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV).
The top 10 holdings account for about 54.81% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has added roughly 3.83% so far this year and is up about 6.97% in the last one year (as of 01/16/2023). In the past 52-week period, it has traded between $32.13 and $39.18.
The ETF has a beta of 0.87 and standard deviation of 25.01% for the trailing three-year period, making it a medium risk choice in the space. With about 100 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 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 $55.60 billion in assets, Vanguard Value ETF has $100.80 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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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
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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 10.41% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). 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 10.41% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). 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 10.41% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). 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 10.41% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). 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. |
22881.0 | 2023-01-16 00:00:00 UTC | AbbVie, Eli Lilly exit UK drug pricing agreement | ABBV | https://www.nasdaq.com/articles/abbvie-eli-lilly-exit-uk-drug-pricing-agreement-0 | nan | nan | Adds details, background
Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday.
Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry (ABPI) said in a statement.
"The current scheme has harmed innovation, with costs spiralling out of control, and the UK falling behind other major countries to be left as a global outlier," said Laura Steele, president and general manager for Eli Lilly's Northern Europe division.
ABPI said it was seeking early talks with the government to set out a new future settlement.
In December, the industry body had said the government raised the amount manufacturers of branded medicines within the voluntary scheme will be required to return to almost 3.3 billion pounds ($4.02 billion) in sales revenue from an earlier amount of 1.8 billion pounds.
The demand from the UK's National Health Service (NHS) and use of new medicines to treat patients have grown faster than the industry's pre-pandemic projections, which has driven repayment rates far beyond sustainable levels, ABPI added.
The current voluntary scheme, which will end in Decmeber, is an agreement between the British government and the pharmaceutical industry with roots going back to the foundation of the NHS, ABPI said.
($1 = 0.8213 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)
((Radhika.Anilkumar@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, background Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry (ABPI) said in a statement. "The current scheme has harmed innovation, with costs spiralling out of control, and the UK falling behind other major countries to be left as a global outlier," said Laura Steele, president and general manager for Eli Lilly's Northern Europe division. | Adds details, background Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry (ABPI) said in a statement. In December, the industry body had said the government raised the amount manufacturers of branded medicines within the voluntary scheme will be required to return to almost 3.3 billion pounds ($4.02 billion) in sales revenue from an earlier amount of 1.8 billion pounds. | Adds details, background Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry (ABPI) said in a statement. In December, the industry body had said the government raised the amount manufacturers of branded medicines within the voluntary scheme will be required to return to almost 3.3 billion pounds ($4.02 billion) in sales revenue from an earlier amount of 1.8 billion pounds. | Adds details, background Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry (ABPI) said in a statement. "The current scheme has harmed innovation, with costs spiralling out of control, and the UK falling behind other major countries to be left as a global outlier," said Laura Steele, president and general manager for Eli Lilly's Northern Europe division. |
22882.0 | 2023-01-16 00:00:00 UTC | AbbVie, Eli Lilly exit UK drug pricing agreement | ABBV | https://www.nasdaq.com/articles/abbvie-eli-lilly-exit-uk-drug-pricing-agreement | nan | nan | Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday.
Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry said.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips)
((Radhika.Anilkumar@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. | Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry said. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips) ((Radhika.Anilkumar@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. | Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry said. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips) ((Radhika.Anilkumar@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. | Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry said. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips) ((Radhika.Anilkumar@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. | Jan 16 (Reuters) - Pharmaceutical companies AbbVie ABBV.N and Eli Lilly LLY.N have withdrawn from Britain's voluntary medicines pricing agreement, an industry body said on Monday. Companies are increasingly arguing that it is no longer possible to justify the UK's "voluntary scheme" to global boardrooms and investors as repayment rates in 2023 have surged to 26.5% of revenue, the Association of the British Pharmaceutical Industry said. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips) ((Radhika.Anilkumar@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. |
22883.0 | 2023-01-13 00:00:00 UTC | Want to Get Richer? 3 Best Stocks to Buy Now and Hold Forever | ABBV | https://www.nasdaq.com/articles/want-to-get-richer-3-best-stocks-to-buy-now-and-hold-forever-0 | nan | nan | Some people chase significant, fast returns -- the get-rich-quick approach. But in reality, the steady effects of long-term compounding usually create life-changing wealth. Successful investing can be as simple as owning stocks of high-quality businesses that have grown consistently for many years.
Healthcare is a superb hunting ground for these stocks and include some blue-chip stocks. The industry is worth $4.3 trillion in the United States alone, and caring for and treating people should always be a priority for society. Here are three top-notch healthcare stocks you can buy and hold indefinitely in just about any diversified portfolio.
1. A dividend growth conglomerate
Johnson & Johnson (NYSE: JNJ) is one of the biggest names in healthcare; it's a three-headed conglomerate that sells consumer products, medical devices, and pharmaceuticals.
The company's rich portfolio of product brands has supported steady growth for decades. Have a cut? Put a Band-Aid on it. Know someone with Crohn's Disease? They're probably taking Stelara. You'll also find Johnson & Johnson's products in the hospital; the company sells billions of dollars worth of orthopedics, surgical tools, supplies, and more each year.
JNJ Revenue (TTM) data by YCharts.
Healthcare is always in high demand, and Johnson & Johnson's decades of growth and dividend increases reflect that. The company has raised its dividend for 60 years in a row, a phenomenal feat for a public company. It doesn't have to be complicated; investors can hop on board and let the company do what it does -- churn out steady growth and profits year after year.
In a rare shakeup, shareholders will get the bonus of a new stock holding when the company spins off its consumer products segment as its own company, Kenvue, by November of this year.
2. An evolving pharmaceutical giant
The pharmaceutical industry plays a massive role in the broader healthcare sector, and AbbVie (NYSE: ABBV) is one of the most prominent players in the field. Its flagship drug Humira has consistently topped the charts, including a whopping $15.6 billion through just nine months of 2022.
It's been just over a decade since Abbott Laboratories spun off its pharmaceutical business as AbbVie, and the company has thrived on its own. You can see how sales have soared and the company's dividend with it.
ABBV Revenue (TTM) data by YCharts.
The patents that protect pharmaceutical companies from copycats eventually expire, and Humira will face competition in the U.S. starting this year. However, AbbVie has invested heavily in expanding its business recently, including acquiring Botox-owner Allergan for $63 billion and ramping up sales of emerging products like Rinvoq and Skyrizi. Humira accounted for 36% of AbbVie's total sales this year.
Yet, analysts believe the company's earnings-per-share (EPS) will still grow by an average of 4% annually over the next three to five years. Mustering growth despite losing exclusivity for Humira underlines how wonderful a business AbbVie is and why investors can own the stock with confidence.
3. An insurance giant and industry leader
As important as healthcare is, it can be painfully expensive. That's where insurance from companies like UnitedHealth Group (NYSE: UNH) comes in. UnitedHealth is a behemoth; it trades at a market capitalization of $457 billion and does more than $300 billion in annual sales. It's one of the world's largest insurance companies, providing care to more than 149 million people. In addition, its Optum segment delivers services, data insights, and prescriptions to more than 100 million patients.
UNH Revenue (TTM) data by YCharts.
Healthcare's continually swelling costs have translated to immense growth for UnitedHealth; the company multiplied its revenue over the past decade and became a solid dividend stock. Shareholders have received more dividends each year for the past 13 years.
Healthcare is a multitrillion-dollar industry. The population is growing, and there are millions of people that UnitedHealth doesn't care for yet. Analysts are looking for UnitedHealth's EPS to grow by 15% annually over the next three to five years. The company's massive size makes it an industry titan that could grow larger over time, maybe becoming a trillion-dollar company someday.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, AbbVie has invested heavily in expanding its business recently, including acquiring Botox-owner Allergan for $63 billion and ramping up sales of emerging products like Rinvoq and Skyrizi. Mustering growth despite losing exclusivity for Humira underlines how wonderful a business AbbVie is and why investors can own the stock with confidence. An evolving pharmaceutical giant The pharmaceutical industry plays a massive role in the broader healthcare sector, and AbbVie (NYSE: ABBV) is one of the most prominent players in the field. | An evolving pharmaceutical giant The pharmaceutical industry plays a massive role in the broader healthcare sector, and AbbVie (NYSE: ABBV) is one of the most prominent players in the field. It's been just over a decade since Abbott Laboratories spun off its pharmaceutical business as AbbVie, and the company has thrived on its own. ABBV Revenue (TTM) data by YCharts. | An evolving pharmaceutical giant The pharmaceutical industry plays a massive role in the broader healthcare sector, and AbbVie (NYSE: ABBV) is one of the most prominent players in the field. It's been just over a decade since Abbott Laboratories spun off its pharmaceutical business as AbbVie, and the company has thrived on its own. ABBV Revenue (TTM) data by YCharts. | An evolving pharmaceutical giant The pharmaceutical industry plays a massive role in the broader healthcare sector, and AbbVie (NYSE: ABBV) is one of the most prominent players in the field. It's been just over a decade since Abbott Laboratories spun off its pharmaceutical business as AbbVie, and the company has thrived on its own. ABBV Revenue (TTM) data by YCharts. |
22884.0 | 2023-01-13 00:00:00 UTC | FOCUS-Drug companies favor biotech meds over pills, citing new U.S. law | ABBV | https://www.nasdaq.com/articles/focus-drug-companies-favor-biotech-meds-over-pills-citing-new-u.s.-law | nan | nan | By Deena Beasley
San Francisco, Jan 13 (Reuters) - Drugmakers are prioritizing complex biotech medicines over treatments that can be given as pills because recent U.S. legislation gives biologics a longer runway before becoming subject to government price limits, top industry executives said this week.
The Inflation Reduction Act (IRA), which Democrats passed last August, for the first time allows the government's Medicare health plan for people age 65 and over to negotiate the prices it is willing to pay for certain medications.
The pharmaceutical industry, whose members gathered in the thousands this week in San Francisco for the annual JP Morgan Healthcare conference, opposed the legislation and has begun implementing strategies to mitigate its impact.
Such a shift in focus could result in the availability of far fewer cheap, generic pills in the long run.
All other developed nations negotiate drug prices, making the United States the most lucrative market for the industry. The Congressional Budget Office estimates that the IRA's drug pricing provisions will reduce the federal deficit by $237 billion over the next decade.
Medicare will select the first 10 drugs for the program this year. The number of medications subject to price negotiation will increase over time, but newer drugs are not included.
The law sets a nine-year exemption period for "small-molecule" drugs, which are mainly pills, while "large molecule" biologics, generally injections or infusions, are protected from negotiation for 13 years.
"The difference between a nine- and 13-year product line is about 50 or 60% of the value," Eli Lilly Chief Executive Officer Dave Ricks said in an interview. "In 10 years, we'll have far fewer small molecules being developed than we do today."
He questioned the benefit of "rules that really just disincentivize investment in what ends up being convenient drugs, drugs for tough conditions like cancer and drugs that get really cheap when they go generic."
Lilly has already dropped a small-molecule blood cancer drug from its pipeline because "we just couldn't make the math work," Ricks said.
The Indianapolis-based company is considering culling more early-stage pill programs and is directing its small molecule development group to only pursue opportunities "that would be clearly good enough within nine years to be winners."
U.S. Congresswoman Katie Porter, a Democrat who has pressed for drug price limits, described the companies' strategy for dealing with the law as "treating potential new drugs as bargaining chips instead of as cures to save lives."
Most medicines on the market today are small molecules, which can be taken by mouth, absorbed into the bloodstream and easily penetrate cell membranes. Common examples include aspirin, statins for high cholesterol and blood pressure drugs.
In recent decades, pharmaceutical development has moved into more complex, difficult to manufacture large molecules, derived from living cells that can target a specific location or mechanism in the body. These biologics, like AbbVie's ABBV.N rheumatoid arthritis drug Humira, need to be injected or infused and can require special handling or monitoring of patients.
But the industry has also come up with innovative pills, which patients often prefer. Lilly and other drugmakers, for instance, are developing oral drugs for a diabetes and obesity- related target that is currently reached only by injected drugs.
'UNINTENDED CONSEQUENCES'
When pills lose patent protection, generic copies usually enter the market at price discounts of up to 90%, while the competing "biosimilar" versions of large molecule drugs is much less robust and the discounts much lower.
Steven Pearson, president of the influential drug pricing research group Institute for Clinical and Economic Review, said the IRA overall should help lower prices for Medicare patients but acknowledged new laws like it can have "unintended consequences."
He noted it is not unusual for pharmaceutical companies to choose not to pursue a drug they once thought promising.
"We have only made it more complicated now," he said.
Stephen Ubl, president of Pharmaceutical Research and Manufacturers of America (PhRMA), said the industry trade group believes the IRA should not set different exemption periods based on drug type. "We would like that provision to be fixed," he said.
Executives at U.S. biotech Amgen Inc AMGN.O said the IRA will have broad industry impact, but that Amgen is well-positioned for growth due to its strong position in biologics.
"Large molecules are relatively favored under the IRA as opposed to small molecules," David Reese, head of Amgen research and development, said in an interview. "Given our history and our focus in protein therapeutics, that's one advantage."
PhRMA said that when asked in a recent survey if they expect to shift research and development investment away from small molecule medicines, 63% of member companies who responded to the question said yes.
(Reporting By Deena Beasley in Los Angeles; Editing by Caroline Humer and Bill Berkrot)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These biologics, like AbbVie's ABBV.N rheumatoid arthritis drug Humira, need to be injected or infused and can require special handling or monitoring of patients. By Deena Beasley San Francisco, Jan 13 (Reuters) - Drugmakers are prioritizing complex biotech medicines over treatments that can be given as pills because recent U.S. legislation gives biologics a longer runway before becoming subject to government price limits, top industry executives said this week. The pharmaceutical industry, whose members gathered in the thousands this week in San Francisco for the annual JP Morgan Healthcare conference, opposed the legislation and has begun implementing strategies to mitigate its impact. | These biologics, like AbbVie's ABBV.N rheumatoid arthritis drug Humira, need to be injected or infused and can require special handling or monitoring of patients. By Deena Beasley San Francisco, Jan 13 (Reuters) - Drugmakers are prioritizing complex biotech medicines over treatments that can be given as pills because recent U.S. legislation gives biologics a longer runway before becoming subject to government price limits, top industry executives said this week. The law sets a nine-year exemption period for "small-molecule" drugs, which are mainly pills, while "large molecule" biologics, generally injections or infusions, are protected from negotiation for 13 years. | These biologics, like AbbVie's ABBV.N rheumatoid arthritis drug Humira, need to be injected or infused and can require special handling or monitoring of patients. The law sets a nine-year exemption period for "small-molecule" drugs, which are mainly pills, while "large molecule" biologics, generally injections or infusions, are protected from negotiation for 13 years. He questioned the benefit of "rules that really just disincentivize investment in what ends up being convenient drugs, drugs for tough conditions like cancer and drugs that get really cheap when they go generic." | These biologics, like AbbVie's ABBV.N rheumatoid arthritis drug Humira, need to be injected or infused and can require special handling or monitoring of patients. By Deena Beasley San Francisco, Jan 13 (Reuters) - Drugmakers are prioritizing complex biotech medicines over treatments that can be given as pills because recent U.S. legislation gives biologics a longer runway before becoming subject to government price limits, top industry executives said this week. The law sets a nine-year exemption period for "small-molecule" drugs, which are mainly pills, while "large molecule" biologics, generally injections or infusions, are protected from negotiation for 13 years. |
22885.0 | 2023-01-12 00:00:00 UTC | ABBV March 3rd Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-march-3rd-options-begin-trading | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $150.00 strike price has a current bid of $3.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $150.00, but will also collect the premium, putting the cost basis of the shares at $146.35 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $153.31/share today.
Because the $150.00 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 2.43% return on the cash commitment, or 17.76% 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 $150.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $4.90. If an investor was to purchase shares of ABBV stock at the current price level of $153.31/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $155.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.30% if the stock gets called away at the March 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red:
Considering the fact that the $155.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.20% boost of extra return to the investor, or 23.33% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $153.31) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 3rd expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 3rd expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $150.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $4.90. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 3rd expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 3rd contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 3rd expiration. |
22886.0 | 2023-01-12 00:00:00 UTC | Zacks Market Edge Highlights: EXAS, ZM, TSLA, ABBV, ZOM | ABBV | https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-exas-zm-tsla-abbv-zom | nan | nan | For Immediate Release
Chicago, IL – January 12, 2023 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
https://www.zacks.com/stock/news/2038099/the-stocks-behind-2022s-popular-etfs
The Stocks Behind 2022's Popular ETFs
Welcome to Episode #343 of the Zacks Market Edge Podcast.
<br />
(0:45) - Breaking Down Fund Flows For 2022: Should You Be Buying Back Into Cathie Wood?
(5:15) - What Is Cathie Wood Currently Buying?
(14:05) - Income ETFs On The Rise: Should You Be Adding Exposure To Your Portfolio?
(22:50) - Will The Energy Sector Continue To Outperform?
(32:30) - Episode Roundup: ARKK, SCHD, JEPI, DBMF, PFIX, XOP, EXAS, ZM, TSLA, ROKU, SQ
Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Director of ETF Research, Neena Mishra, to talk about Ark’s Cathie Wood and her flagship ETF as well as other hot popular actively managed ETFs.
Wood’s flagship, the ARK Innovation ETF, was the only Ark Invest ETF that saw positive cash inflows in 2022. It saw inflows of $1.2 billion on the year. But $1.8 billion came in in the first 7 months of 2022 with $600 million flowing out in the last 5 months. Have investors soured on ARKK?
Shares are down 65.6% in the last year and now have a 5-year return of 3.5%.
Investors Loved Income in 2022
On the flip side, one of the most popular actively managed ETFs in 2022 for inflows was the JPMorgan Equity Premium Income ETF. It holds 125 stocks and is currently paying a 12-month yield of 9.64%.
Over the last year, shares are down 3.5% but that has outperformed the S&P 500 which is down 16% during that same time.
The key to both ETFs were the underlying stocks in the portfolio. What are the stocks behind the curtain of these two ETFs?
5 Stocks Behind 2023’s Popular ETFs
1. Exact Sciences Corp. (EXAS)
In 2023, it is Exact Sciences that is the largest holding in Cathie Wood’s ARKK flagship ETF, and not Tesla. It is 9.7% of the portfolio.
Exact Sciences has been volatile the last 5 years. During the growth stock boom, Exact Sciences was one of the big winners. But Exact Sciences has fallen 54% in the last 2 years and is up just 14.2% over the last 5 years.
But in Jan 2023, Exact Sciences announced it would be profitable for all of 2023. The stock soared 25% on the news.
Is Exact Sciences turning the corner?
2. Zoom Video (ZM)
Zoom Video is the second largest holding in the ARK Innovation ETF. It’s a 9.4% position.
Zoom Video was a pandemic winner as people worked from home. The stock soared. But once the reopening happened, the shares have taken a tumble. Zoom Video is down 79.7% in the last 2 years.
Is Zoom Video a deal or a trap in 2023?
3. Tesla (TSLA)
Tesla is now the third largest holding in ARKK. It used to be the largest position in Cathie Wood’s flagship fund.
But Tesla shares have fallen 59.5% in the last 2 years. It’s now just a 6.9% position.
But with that fall, Tesla shares are now cheaper. It trades with a forward P/E of 24.5. Earnings are expected to rise 78% in 2022 and another 22% in 2023.
Is Tesla oversold to start 2023?
4. AbbVie (ABBV)
AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. It shouldn’t be surprising. It has been a favorite of income investors for years.
AbbVie is paying a dividend yielding 3.5%. The stock is cheap, with a forward P/E of 13.8.
Shares have rallied in the last year, gaining 18.4%. But earnings are expected to fall 15.6% in 2023.
Is the rally in AbbVie done?
5. Exxon Mobil Corp. (XOM)
Exxon Mobil is also a top 10 holding in the JPMorgan Equity Premium ETF. That’s not surprising as it has consistently paid out a dividend over many years.
Exxon Mobil is currently paying a dividend yielding 3.3%.
It was a top performing stock in 2022, with shares up 57% over the last year. Yet it’s still cheap, with a forward P/E of 10.4.
But Exxon’s earnings are expected to fall by 25% in 2023.
Should big oil companies, like Exxon Mobil, still be on your short list or is the bullish news already priced in?
What Else Do You Need to Know About ETF Investing to Start 2023?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in her personal portfolio.]
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. Is the rally in AbbVie done? | Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. | Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. | AbbVie (ABBV) AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. Is the rally in AbbVie done? |
22887.0 | 2023-01-12 00:00:00 UTC | Notable Thursday Option Activity: IAC, ABBV, RILY | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-iac-abbv-rily | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Iac Inc (Symbol: IAC), where a total volume of 11,137 contracts has been traded thus far today, a contract volume which is representative of approximately 1.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 97.8% of IAC's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $55 strike call option expiring January 20, 2023, with 10,246 contracts trading so far today, representing approximately 1.0 million underlying shares of IAC. Below is a chart showing IAC's trailing twelve month trading history, with the $55 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 49,851 contracts thus far today. That number of contracts represents approximately 5.0 million underlying shares, working out to a sizeable 96.2% of ABBV's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 2,195 contracts trading so far today, representing approximately 219,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange:
And B. Riley Financial Inc (Symbol: RILY) saw options trading volume of 5,207 contracts, representing approximately 520,700 underlying shares or approximately 92.7% of RILY's average daily trading volume over the past month, of 561,765 shares. Especially high volume was seen for the $20 strike put option expiring April 21, 2023, with 5,000 contracts trading so far today, representing approximately 500,000 underlying shares of RILY. Below is a chart showing RILY's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for IAC options, ABBV options, or RILY options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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. | Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 2,195 contracts trading so far today, representing approximately 219,500 underlying shares of ABBV. Below is a chart showing IAC's trailing twelve month trading history, with the $55 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 49,851 contracts thus far today. That number of contracts represents approximately 5.0 million underlying shares, working out to a sizeable 96.2% of ABBV's average daily trading volume over the past month, of 5.2 million shares. | Below is a chart showing IAC's trailing twelve month trading history, with the $55 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 49,851 contracts thus far today. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: And B. Riley Financial Inc (Symbol: RILY) saw options trading volume of 5,207 contracts, representing approximately 520,700 underlying shares or approximately 92.7% of RILY's average daily trading volume over the past month, of 561,765 shares. That number of contracts represents approximately 5.0 million underlying shares, working out to a sizeable 96.2% 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 $150 strike highlighted in orange: And B. Riley Financial Inc (Symbol: RILY) saw options trading volume of 5,207 contracts, representing approximately 520,700 underlying shares or approximately 92.7% of RILY's average daily trading volume over the past month, of 561,765 shares. Below is a chart showing IAC's trailing twelve month trading history, with the $55 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 49,851 contracts thus far today. That number of contracts represents approximately 5.0 million underlying shares, working out to a sizeable 96.2% of ABBV's average daily trading volume over the past month, of 5.2 million shares. | Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 2,195 contracts trading so far today, representing approximately 219,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: And B. Riley Financial Inc (Symbol: RILY) saw options trading volume of 5,207 contracts, representing approximately 520,700 underlying shares or approximately 92.7% of RILY's average daily trading volume over the past month, of 561,765 shares. Below is a chart showing IAC's trailing twelve month trading history, with the $55 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 49,851 contracts thus far today. |
22888.0 | 2023-01-11 00:00:00 UTC | 1 Hot Growth Stock to Buy Now, and 1 to Avoid | ABBV | https://www.nasdaq.com/articles/1-hot-growth-stock-to-buy-now-and-1-to-avoid | nan | nan | Discerning between popular growth stocks that have room to run and those that will leave your portfolio in the red isn't an easy task, especially for companies in the biopharma sector. Picking the businesses that have the right mix of reliable earnings and catalysts for growth is key, but it takes more than a drug approval or two for your picks to succeed in the long run.
On that note, there's a pair of pharmaceutical stocks that might fit the bill when it comes to enduring growth, and both have experienced noteworthy and recent catalysts. The catch is that only one of the pair has a plan to supercharge its growth before the end of the decade, whereas the other is mired in troubles that might harm investors despite a recent success.
1 to buy: AbbVie
AbbVie (NYSE: ABBV) is a pharmaceutical growth stock par excellence because it will be commercializing new medicines and expanding the prescribable indications of its existing set of medicines at a quick clip throughout the rest of the decade. And at the moment its valuation is appealing. In 2023, it aims to submit nine approval packages to regulators and potentially get the final stamp of approval for eight other programs for which it already submitted the paperwork. That's anticipated to drive top-line growth at a compound annual growth rate (CAGR) of up to 9% from 2025 to 2030 after a temporary decline in 2023 and perhaps 2024, stemming from increasing competition from generic medicines for Humira, its highest-earning drug.
On average, Wall Street analysts anticipate the business will have around $54.2 billion in sales this year, down from an estimated $58.2 billion for 2022. But with its high-throughput development pipeline already making progress in replacing the revenue lost from Humira, management's expectations for a strong second half of the decade are justified.
The anticipated loss of exclusivity protections for Humira in 2023 is also why AbbVie stock is priced affordably; its near term will be difficult. Presently, its price-to-earnings (P/E) multiple is 21.5, which is a bit lower than the pharmaceutical industry's average P/E of 25.2. That's no deep bargain unless you consider the fact that the company pays a decent dividend that currently has a forward yield of above 3.6%. What's more, its dividend rose 108.5% in the last five years alone, and it's likely to continue rising.
Buying the stock now means getting the advantage of AbbVie's long-term top-line growth, which you'll need to wait for -- but you'll be getting its climbing dividend payment immediately and for a relatively good price.
1 to avoid: Biogen
Biogen (NASDAQ: BIIB) has many of the trappings of a superstar pharma stock. The company is a leader in treating multiple sclerosis, and its six medicines for the condition brought in more than $1.6 billion in the third quarter of 2022 alone. Its large pipeline of neurology medicines features 12 late-stage programs for common but difficult-to-treat illnesses like Alzheimer's disease and Parkinson's disease, not to mention a smattering of other programs in phase 1 clinical trials. Furthermore, its debt load of $6.6 billion isn't a major concern in light of its healthy profit margin of 27.6% and its trailing 12-month net income of more than $2.8 billion.
But you may want to avoid this stock. The problem with Biogen is that it's hard to take management at its word, and that's a huge risk.
The big catalyst for the business this year is that the Food and Drug Administration just gave its stamp of approval for the company's latest Alzheimer's disease candidate called lecanemab. But in 2021, its attempt to commercialize another Alzheimer's therapy, Aduhelm, ended in a cascade of largely self-inflicted disasters even after regulators gave it the green light. After ignoring internal doubts about Aduhelm, the company released data on the drug's safety and efficacy characteristics that disappointed the medical community to the point where it didn't get prescribed.
At the same time, its sky-high price tag of $56,000 per year ignited widespread controversy, which was fully expected internally, as well as widespread allegations of an overly close relationship between Biogen and regulators that eventually became the subject of a congressional investigation. Eventually, Aduhelm was a commercial failure despite management's persistent efforts to paint it as a promising work in progress. Similar concerns are already swirling about lecanemab's safety and efficacy, though a full-blown controversy hasn't developed so far.
Still, there's little evidence that management has changed its rigid approach to commercializing medicines, and that's too big of a risk for investors to bother with when there are better places to park their money.
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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. | 1 to buy: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical growth stock par excellence because it will be commercializing new medicines and expanding the prescribable indications of its existing set of medicines at a quick clip throughout the rest of the decade. The anticipated loss of exclusivity protections for Humira in 2023 is also why AbbVie stock is priced affordably; its near term will be difficult. Buying the stock now means getting the advantage of AbbVie's long-term top-line growth, which you'll need to wait for -- but you'll be getting its climbing dividend payment immediately and for a relatively good price. | 1 to buy: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical growth stock par excellence because it will be commercializing new medicines and expanding the prescribable indications of its existing set of medicines at a quick clip throughout the rest of the decade. The anticipated loss of exclusivity protections for Humira in 2023 is also why AbbVie stock is priced affordably; its near term will be difficult. Buying the stock now means getting the advantage of AbbVie's long-term top-line growth, which you'll need to wait for -- but you'll be getting its climbing dividend payment immediately and for a relatively good price. | 1 to buy: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical growth stock par excellence because it will be commercializing new medicines and expanding the prescribable indications of its existing set of medicines at a quick clip throughout the rest of the decade. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. The anticipated loss of exclusivity protections for Humira in 2023 is also why AbbVie stock is priced affordably; its near term will be difficult. | 1 to buy: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical growth stock par excellence because it will be commercializing new medicines and expanding the prescribable indications of its existing set of medicines at a quick clip throughout the rest of the decade. The anticipated loss of exclusivity protections for Humira in 2023 is also why AbbVie stock is priced affordably; its near term will be difficult. Buying the stock now means getting the advantage of AbbVie's long-term top-line growth, which you'll need to wait for -- but you'll be getting its climbing dividend payment immediately and for a relatively good price. |
22889.0 | 2023-01-11 00:00:00 UTC | The Stocks Behind 2022's Popular ETFs | ABBV | https://www.nasdaq.com/articles/the-stocks-behind-2022s-popular-etfs | nan | nan | (0:45) - Breaking Down Fund Flows For 2022: Should You Be Buying Back Into Cathie Wood?
(5:15) - What Is Cathie Wood Currently Buying?
(14:05) - Income ETFs On The Rise: Should You Be Adding Exposure To Your Portfolio?
(22:50) - Will The Energy Sector Continue To Outperform?
(32:30) - Episode Roundup: ARKK, SCHD, JEPI, DBMF, PFIX, XOP, EXAS, ZM, TSLA, ROKU, SQ
Podcast@Zacks.com
Welcome to Episode #343 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Director of ETF Research, Neena Mishra, to talk about Ark’s Cathie Wood and her flagship ETF as well as other hot popular actively managed ETFs.
Wood’s flagship, the ARK Innovation ETF ARKK, was the only Ark Invest ETF that saw positive cash inflows in 2022. It saw inflows of $1.2 billion on the year. But $1.8 billion came in in the first 7 months of 2022 with $600 million flowing out in the last 5 months. Have investors soured on ARKK?
Shares are down 65.6% in the last year and now have a 5-year return of 3.5%.
Investors Loved Income in 2022
On the flip side, one of the most popular actively managed ETFs in 2022 for inflows was the JPMorgan Equity Premium Income ETF JEPI. It holds 125 stocks and is currently paying a 12-month yield of 9.64%.
Over the last year, shares are down 3.5% but that has outperformed the S&P 500 which is down 16% during that same time.
The key to both ETFs were the underlying stocks in the portfolio. What are the stocks behind the curtain of these two ETFs?
5 Stocks Behind 2023’s Popular ETFs
Exact Sciences Corp. EXAS
In 2023, it is Exact Sciences that is the largest holding in Cathie Wood’s ARKK flagship ETF, and not Tesla. It is 9.7% of the portfolio.
Exact Sciences has been volatile the last 5 years. During the growth stock boom, Exact Sciences was one of the big winners. But Exact Sciences has fallen 54% in the last 2 years and is up just 14.2% over the last 5 years.
But in Jan 2023, Exact Sciences announced it would be profitable for all of 2023. The stock soared 25% on the news.
Is Exact Sciences turning the corner?
Zoom Video ZM
Zoom Video is the second largest holding in the ARK Innovation ETF. It’s a 9.4% position.
Zoom Video was a pandemic winner as people worked from home. The stock soared. But once the reopening happened, the shares have taken a tumble. Zoom Video is down 79.7% in the last 2 years.
Is Zoom Video a deal or a trap in 2023?
Tesla TSLA
Tesla is now the third largest holding in ARKK. It used to be the largest position in Cathie Wood’s flagship fund.
But Tesla shares have fallen 59.5% in the last 2 years. It’s now just a 6.9% position.
But with that fall, Tesla shares are now cheaper. It trades with a forward P/E of 24.5. Earnings are expected to rise 78% in 2022 and another 22% in 2023.
Is Tesla oversold to start 2023?
4. AbbVie ABBV
AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. It shouldn’t be surprising. It has been a favorite of income investors for years.
AbbVie is paying a dividend yielding 3.5%. The stock is cheap, with a forward P/E of 13.8.
Shares have rallied in the last year, gaining 18.4%. But earnings are expected to fall 15.6% in 2023.
Is the rally in AbbVie done?
5. Exxon Mobil Corp. XOM
Exxon Mobil is also a top 10 holding in the JPMorgan Equity Premium ETF. That’s not surprising as it has consistently paid out a dividend over many years.
Exxon Mobil is currently paying a dividend yielding 3.3%.
It was a top performing stock in 2022, with shares up 57% over the last year. Yet it’s still cheap, with a forward P/E of 10.4.
But Exxon’s earnings are expected to fall by 25% in 2023.
Should big oil companies, like Exxon Mobil, still be on your short list or is the bullish news already priced in?
What Else Do You Need to Know About ETF Investing to Start 2023?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in her personal portfolio.]
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. Is the rally in AbbVie done? | Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports To read this article on Zacks.com click here. AbbVie ABBV AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. | Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports To read this article on Zacks.com click here. AbbVie ABBV AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. | AbbVie ABBV AbbVie is a top 10 holding in the JPMorgan Equity Premium ETF. AbbVie is paying a dividend yielding 3.5%. Is the rally in AbbVie done? |
22890.0 | 2023-01-11 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy If There's a Stock Market Sell-Off | ABBV | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-if-theres-a-stock-market-sell-off-4 | nan | nan | Choosing solid dividend stocks can be tricky. Buying a stock with a really high dividend yield is tempting, but many stocks with high dividends got that way because their share prices have plummeted. Often there's a genuine reason for declining shares, such as declining revenue or earnings.
Many stocks with high yields also have high dividend payout ratios, meaning a company devotes much of its earnings to those dividends. That can out a dividend at risk of being cut, which can lead to a double whammy for investors. A dividend cut negates the advantages of buying a high-dividend stock and is usually accompanied by share price erosion as disgruntled investors sell the stock.
So, in looking for three healthcare stocks with supercharged dividends to buy in a market sell-off, it makes sense to look for companies that are strong enough to handle a down market while protecting their dividends -- companies such as Bristol-Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE).
All three pharmaceutical companies have dividend yields of more than 3%, yet they have dividend payout ratios below 50%. On top of that, all three stocks are trading below 24 times earnings.
Bristol-Myers Squibb's pipeline is popping
Bristol-Myers's quarterly dividend works out to a yield of 3.2%. The company raised its quarterly dividend by 5.6% this year to $0.57, the 13th consecutive year it has boosted its dividend. Its payout ratio of 36% leaves plenty of room for continued growth.
Bristol's stock rose more than 10% over the past 12 months, while the S&P 500 average is down more than 17% in that period, which shows the company's strength in a down year. Over the past 10 years, Bristol has increased quarterly revenue by 193%.
Through nine months, the company reported revenue of $34.8 billion, up just 1% over the same period a year earlier. However, the company is seeing continued growth in revenue from blood thinner Eliquis (up 12% through nine months) and cancer drug Opdivo (up 9%), plus new therapies that are breaking through, as the company's pipeline includes 51 compounds.
New product portfolio revenue increased to $553 million in the quarter, up 61%, year over year, thanks to the increased sales from Abecma, used to treat refractory multiple myeloma; Opdualag, used to treat advanced melanoma; and Reblozyl, used to treat anemia in patients with the genetic blood disorder beta thalassemia.
AbbVie continues to grow
AbbVie is another company that easily shrugged off the share declines that affected other stocks in 2022, and it's up more than 19% during the past year.
In the first nine month of 2022, the company had revenue of $33.56 billion, up 6.2% over 2021. Over the past 10 years, it has increased quarterly revenue by 242%.
The pharmaceutical company raised its quarterly dividend by 5% this year to $1.48 per share, equal to a yield of 3.6%. Counting this year and the time it spent as part of Abbott Laboratories, AbbVie has raised its quarterly dividend in 51 consecutive years. Since it split off from Abbott in 2013, AbbVie has raised its dividend by 270%. Even so, it has kept its payout ratio below 50%, and it's currently at 44%.
AbbVie has 12 drugs that are expected to bring in more than $1 billion this year in revenue, led by blockbuster Humira, which is forecast to generate at least $20 billion in sales. The company has a huge portfolio of immunology and oncology therapies, including two, Rinvoq and Skyrizi, which are expected to have $7.5 billion in sales this year and more than $15 billion in annual sales by 2025. As they continue to add label expansions, these drugs will make up for Humira's declining sales due to its patent loss this year.
Pfizer is ready to reload
Pfizer raised its quarterly dividend by 2.5% this year to $0.41, representing a yield of about 3.3%. The company has boosted its dividend for 14 consecutive years. The payout ratio is only 38%, leaving plenty of room for continued dividend increases.
Pfizer said in its third-quarter report that it expects revenue this year of between $99.5 billion and $102 billion, compared to $81.3 billion last year. It also projects annual earnings per share (EPS) of between $6.40 and $6.50, compared to $3.99 in EPS last year.
Despite an attractive dividend and solid financials, the stock is down about 13% during the past year. Investors are wary because the company is looking at a potential losses of $17 billion in revenue from 2025 to 2030, thanks to various patent expirations.
However, like AbbVie, it has an active pipeline that should more than replace those losses. The company, as of December, said it anticipates 19 therapy launches over the next 18 months, and according to Chief Commercial Officer Angela Hwang, those therapies have the potential to generate $20 billion in annual revenue over time.
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Jim Halley has positions in AbbVie and Pfizer. The Motley Fool has positions in and recommends Abbott Laboratories, Bristol-Myers Squibb, and Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So, in looking for three healthcare stocks with supercharged dividends to buy in a market sell-off, it makes sense to look for companies that are strong enough to handle a down market while protecting their dividends -- companies such as Bristol-Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie continues to grow AbbVie is another company that easily shrugged off the share declines that affected other stocks in 2022, and it's up more than 19% during the past year. Counting this year and the time it spent as part of Abbott Laboratories, AbbVie has raised its quarterly dividend in 51 consecutive years. | So, in looking for three healthcare stocks with supercharged dividends to buy in a market sell-off, it makes sense to look for companies that are strong enough to handle a down market while protecting their dividends -- companies such as Bristol-Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). Counting this year and the time it spent as part of Abbott Laboratories, AbbVie has raised its quarterly dividend in 51 consecutive years. AbbVie continues to grow AbbVie is another company that easily shrugged off the share declines that affected other stocks in 2022, and it's up more than 19% during the past year. | So, in looking for three healthcare stocks with supercharged dividends to buy in a market sell-off, it makes sense to look for companies that are strong enough to handle a down market while protecting their dividends -- companies such as Bristol-Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie continues to grow AbbVie is another company that easily shrugged off the share declines that affected other stocks in 2022, and it's up more than 19% during the past year. Counting this year and the time it spent as part of Abbott Laboratories, AbbVie has raised its quarterly dividend in 51 consecutive years. | AbbVie continues to grow AbbVie is another company that easily shrugged off the share declines that affected other stocks in 2022, and it's up more than 19% during the past year. So, in looking for three healthcare stocks with supercharged dividends to buy in a market sell-off, it makes sense to look for companies that are strong enough to handle a down market while protecting their dividends -- companies such as Bristol-Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). Counting this year and the time it spent as part of Abbott Laboratories, AbbVie has raised its quarterly dividend in 51 consecutive years. |
22891.0 | 2023-01-10 00:00:00 UTC | AbbVie, Anima Biotech Collaborate To Develop MRNA Modulators In Oncology, Immunology Targets | ABBV | https://www.nasdaq.com/articles/abbvie-anima-biotech-collaborate-to-develop-mrna-modulators-in-oncology-immunology-targets | nan | nan | (RTTNews) - AbbVie Inc. (ABBV), and Anima Biotech (Anima) Tuesday announced a collaboration in mRNA biology modulators for three targets across Oncology and Immunology. As per the agreement, Anima will receive an upfront payment of $42 million with the potential for further milestones and royalties and up to $540 million in option fees and R&D milestones.
The discovery of mRNA biology modulators will be based on Anima's mRNA Lightning platform. The collaboration offers AbbVie exclusive rights to license and further develop and commercialize the programs.
Anima utilizes phenotypic screening with AI-driven elucidation of the mechanisms of action in the field of small molecule mRNA drug combines.
Jonathon Sedgwick, vice president and global head of discovery research of AbbVie said "Modulating mRNA biology with small molecules is a new approach and has the potential to address 'undruggable' targets with implications across multiple therapy areas."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The collaboration offers AbbVie exclusive rights to license and further develop and commercialize the programs. Jonathon Sedgwick, vice president and global head of discovery research of AbbVie said "Modulating mRNA biology with small molecules is a new approach and has the potential to address 'undruggable' targets with implications across multiple therapy areas." (RTTNews) - AbbVie Inc. (ABBV), and Anima Biotech (Anima) Tuesday announced a collaboration in mRNA biology modulators for three targets across Oncology and Immunology. | (RTTNews) - AbbVie Inc. (ABBV), and Anima Biotech (Anima) Tuesday announced a collaboration in mRNA biology modulators for three targets across Oncology and Immunology. Jonathon Sedgwick, vice president and global head of discovery research of AbbVie said "Modulating mRNA biology with small molecules is a new approach and has the potential to address 'undruggable' targets with implications across multiple therapy areas." The collaboration offers AbbVie exclusive rights to license and further develop and commercialize the programs. | (RTTNews) - AbbVie Inc. (ABBV), and Anima Biotech (Anima) Tuesday announced a collaboration in mRNA biology modulators for three targets across Oncology and Immunology. Jonathon Sedgwick, vice president and global head of discovery research of AbbVie said "Modulating mRNA biology with small molecules is a new approach and has the potential to address 'undruggable' targets with implications across multiple therapy areas." The collaboration offers AbbVie exclusive rights to license and further develop and commercialize the programs. | The collaboration offers AbbVie exclusive rights to license and further develop and commercialize the programs. (RTTNews) - AbbVie Inc. (ABBV), and Anima Biotech (Anima) Tuesday announced a collaboration in mRNA biology modulators for three targets across Oncology and Immunology. Jonathon Sedgwick, vice president and global head of discovery research of AbbVie said "Modulating mRNA biology with small molecules is a new approach and has the potential to address 'undruggable' targets with implications across multiple therapy areas." |
22892.0 | 2023-01-10 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-6 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $159.64, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the drugmaker had lost 2.21% over the past month, lagging the Medical sector's loss of 1.89% and the S&P 500's loss of 0.94% in that time.
AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.67 per share. This would mark year-over-year growth of 10.88%. Our most recent consensus estimate is calling for quarterly revenue of $15.38 billion, up 3.29% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.37% higher. AbbVie is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 13.82. Its industry sports an average Forward P/E of 14.54, so we one might conclude that AbbVie is trading at a discount comparatively.
Meanwhile, ABBV's PEG ratio is currently 3.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.75 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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) closed the most recent trading day at $159.64, moving -1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.67 per share. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed the most recent trading day at $159.64, moving -1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. | AbbVie (ABBV) closed the most recent trading day at $159.64, moving -1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.67 per share. | AbbVie (ABBV) closed the most recent trading day at $159.64, moving -1.25% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect AbbVie to post earnings of $3.67 per share. |
22893.0 | 2023-01-10 00:00:00 UTC | 3 Passive Income Stocks That Are Screaming Buys in January | ABBV | https://www.nasdaq.com/articles/3-passive-income-stocks-that-are-screaming-buys-in-january | nan | nan | After the bear market of 2022 slammed the share prices of most companies, now is a particularly opportune time to identify passive income stocks while they're cheap. There's no time like the present to build the foundations for tomorrow's wealth -- especially when it comes to stocks you could buy and hold for decades.
With that in mind, let's investigate three stocks that could help you shore up your passive income streams.
1. AbbVie
Pharma company AbbVie (NYSE: ABBV) is a screaming buy because of its proven ability to keep commercializing new medicines year after year. Beyond the $57.8 billion in revenue it generated over the trailing 12 months, management expects that just two of its newer drugs, Skyrizi and Rinvoq, will contribute more than $15 billion to its annual sales by 2025.
And that's not even considering the additional revenue that could come from seven of its candidate treatments that it anticipates will get regulatory approval in 2023.
With profitability and such a fast tempo of new drug launches, AbbVie can afford to pay out plenty of money in dividends, and it's also fond of returning capital to shareholders via share repurchases. In terms of its cash-generating potential for investors, its forward dividend yield is presently above 3.6%, and in the last five years, the company has hiked its payouts by an admirable 108.5%.
While it's true that the business faces some headwinds in 2023 -- particularly the loss of commercial exclusivity for Humira, its top-selling drug -- that's also part of why the stock is worth a purchase. Traders with short-term outlooks won't be willing to touch AbbVie due to the prospect of its revenue growth slowing in 2023 and perhaps 2024 due to the expected decline in Humira's sales.
However, investors willing to hold their shares for longer will benefit greatly by being patient. By the end of this decade, people who invested today should have profited significantly.
2. Innovative Industrial Properties
Innovative Industrial Properties (NYSE: IIPR) is a cannabis real estate investment trust (REIT) that buys marijuana cultivation and processing facilities, and then rents them back to the very businesses that it bought them from. According to a forecast by Green Street Advisory Group, a research service, medical and recreational marijuana cultivation activity in the U.S. will grow from $13.9 billion in 2022 to $26.9 billion by 2026. Based on that, Innovative Industrial Properties won't have much trouble finding new tenants.
That's not to imply it's currently having any trouble. Its collection of 111 leased properties brought in $226.5 million in cash from operations over the trailing 12-month period, and its renters typically have lease terms of between 15 and 20 years, so they should be sticking around for quite some time. Plus, its tenants are responsible for 100% of maintenance, utilities, and improvement costs, so IIP can keep its expenses low while it collects rent and seeks attractive buying opportunities.
The REIT's low-cost operations in a hot growth sector make it a shoo-in to remain a serial dividend hiker. Presently, its payout yields 7.1% annually, but in the last three years alone, management increased the dividend by a whopping 80%. Plus, the company will doubtlessly spend some of its $76.9 million in cash to increase its property holdings this year and beyond. All of the above makes it a no-brainer investment.
3. Pfizer
Pfizer (NYSE: PFE) needs no introduction, but it's worth a purchase this month because it will undoubtedly continue to be one of the leaders in the global pharmaceutical industry for the foreseeable future.
Between now and roughly June 2024, it will be launching a slew of new medicines that management predicts will bring in a total of around $20 billion per year by 2030. That should handily compensate for the sales it anticipates it will lose to generic medicines competing with its branded drugs between now and the end of the decade.
The consensus expectation among Wall Street analysts is that the company will report just over $100 billion in sales for 2022, largely as a result of the success of its COVID-19 vaccine, Comirnaty, and its COVID-19 antiviral treatment, Paxlovid. But Pfizer's future looks arguably even better.
Management is already planning on making near-term acquisitions that it hopes will add another $25 billion to the top line, and with $36.1 billion in cash and equivalents on its books, there aren't too many promising young biotechs it can't afford to gobble up.
Cash hoards like Pfizer's only get accumulated through powerful free cash flow over time. In the last five years alone, the company's quarterly free cash flow rose by 228% to $5.1 billion. And with that growth, it can afford a decent dividend. Its shares now sport a forward yield of around 3.2%, though over the last 10 years, management only boosted the payout by 70.8%. That won't make you rich overnight, but it would sure help if you held the stock for the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With profitability and such a fast tempo of new drug launches, AbbVie can afford to pay out plenty of money in dividends, and it's also fond of returning capital to shareholders via share repurchases. AbbVie Pharma company AbbVie (NYSE: ABBV) is a screaming buy because of its proven ability to keep commercializing new medicines year after year. Traders with short-term outlooks won't be willing to touch AbbVie due to the prospect of its revenue growth slowing in 2023 and perhaps 2024 due to the expected decline in Humira's sales. | AbbVie Pharma company AbbVie (NYSE: ABBV) is a screaming buy because of its proven ability to keep commercializing new medicines year after year. With profitability and such a fast tempo of new drug launches, AbbVie can afford to pay out plenty of money in dividends, and it's also fond of returning capital to shareholders via share repurchases. Traders with short-term outlooks won't be willing to touch AbbVie due to the prospect of its revenue growth slowing in 2023 and perhaps 2024 due to the expected decline in Humira's sales. | AbbVie Pharma company AbbVie (NYSE: ABBV) is a screaming buy because of its proven ability to keep commercializing new medicines year after year. With profitability and such a fast tempo of new drug launches, AbbVie can afford to pay out plenty of money in dividends, and it's also fond of returning capital to shareholders via share repurchases. Traders with short-term outlooks won't be willing to touch AbbVie due to the prospect of its revenue growth slowing in 2023 and perhaps 2024 due to the expected decline in Humira's sales. | * They just revealed what they believe are the ten best stocks for investors to buy right now… and AbbVie wasn't one of them! AbbVie Pharma company AbbVie (NYSE: ABBV) is a screaming buy because of its proven ability to keep commercializing new medicines year after year. With profitability and such a fast tempo of new drug launches, AbbVie can afford to pay out plenty of money in dividends, and it's also fond of returning capital to shareholders via share repurchases. |
22894.0 | 2023-01-10 00:00:00 UTC | Ex-Dividend Reminder: Buckle, Foot Locker and AbbVie | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-buckle-foot-locker-and-abbvie | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 1/12/23, Buckle, Inc. (Symbol: BKE), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Buckle, Inc. will pay its quarterly dividend of $0.35 on 1/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 1/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 2/15/23. As a percentage of BKE's recent stock price of $48.44, this dividend works out to approximately 0.72%, so look for shares of Buckle, Inc. to trade 0.72% lower — all else being equal — when BKE shares open for trading on 1/12/23. Similarly, investors should look for FL to open 1.02% lower in price and for ABBV to open 0.93% lower, all else being equal.
Below are dividend history charts for BKE, FL, and ABBV, showing historical dividends prior to the most recent ones declared.
Buckle, Inc. (Symbol: BKE):
Foot Locker, Inc. (Symbol: FL):
AbbVie Inc (Symbol: ABBV):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.89% for Buckle, Inc., 4.07% for Foot Locker, Inc., and 3.71% for AbbVie Inc.
In Tuesday trading, Buckle, Inc. shares are currently up about 1.9%, Foot Locker, Inc. shares are up about 1.1%, and AbbVie Inc shares are down about 1.3% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 2.89% for Buckle, Inc., 4.07% for Foot Locker, Inc., and 3.71% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel, on 1/12/23, Buckle, Inc. (Symbol: BKE), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Buckle, Inc. will pay its quarterly dividend of $0.35 on 1/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 1/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 2/15/23. | Looking at the universe of stocks we cover at Dividend Channel, on 1/12/23, Buckle, Inc. (Symbol: BKE), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Buckle, Inc. will pay its quarterly dividend of $0.35 on 1/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 1/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 2/15/23. Buckle, Inc. (Symbol: BKE): Foot Locker, Inc. (Symbol: FL): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 1/12/23, Buckle, Inc. (Symbol: BKE), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Buckle, Inc. will pay its quarterly dividend of $0.35 on 1/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 1/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 2/15/23. Buckle, Inc. (Symbol: BKE): Foot Locker, Inc. (Symbol: FL): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. | If they do continue, the current estimated yields on annualized basis would be 2.89% for Buckle, Inc., 4.07% for Foot Locker, Inc., and 3.71% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel, on 1/12/23, Buckle, Inc. (Symbol: BKE), Foot Locker, Inc. (Symbol: FL), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Buckle, Inc. will pay its quarterly dividend of $0.35 on 1/27/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 1/27/23, and AbbVie Inc will pay its quarterly dividend of $1.48 on 2/15/23. |
22895.0 | 2023-01-10 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-3 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned -2.2% over the past month versus the Zacks S&P 500 composite's -0.9% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 0% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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 $3.67 per share, indicating a change of +10.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.87 points to a change of +9.2% from the prior year. Over the last 30 days, this estimate has changed +2.4%.
For the next fiscal year, the consensus earnings estimate of $11.70 indicates a change of -15.6% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +2.4%.
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
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $15.38 billion for the current quarter points to a year-over-year change of +3.3%. The $58.31 billion and $53.68 billion estimates for the current and next fiscal years indicate changes of +3.8% and -7.9%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $3.66 for the same period compares with $3.33 a year ago.
Compared to the Zacks Consensus Estimate of $14.92 billion, the reported revenues represent a surprise of -0.74%. The EPS surprise was +2.81%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
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.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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 0% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. 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% over this period. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 0% over this period. For the current quarter, AbbVie is expected to post earnings of $3.67 per share, indicating a change of +10.9% from the year-ago quarter. | For the next fiscal year, the consensus earnings estimate of $11.70 indicates a change of -15.6% from what AbbVie is expected to report a year ago. 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. |
22896.0 | 2023-01-10 00:00:00 UTC | Should Investors Worry About AbbVie's Dividend? | ABBV | https://www.nasdaq.com/articles/should-investors-worry-about-abbvies-dividend | nan | nan | There's not much point in buying a passive-income stock like AbbVie (NYSE: ABBV) if it's going to fail to deliver its quarterly dividend into your account. Even reliable companies can sometimes run into problems that require them to level off or even slash their payment.
As it turns out, there is indeed a risk that within the next few years, AbbVie's shareholders get left high and dry instead of getting refreshed with cash as usual. Let's evaluate the situation and determine whether anxiety about this company's dividend is warranted or whether it's overblown.
Why some investors might be worried
AbbVie just celebrated its 10th birthday since its spinoff from Abbott Laboratories at the start of 2013. In each of those 10 years, the company hiked its dividend, causing the payout to rise by 270% and ensuring the continuation of its status as a Dividend King that it inherited from Abbott Labs. Management plans to keep hiking the dividend in the future, which makes the issue of its sustainability all the more important.
At the moment, its forward dividend yield is above 3.6%, and it pays out around 73.7% of its earnings as dividends. With a relatively high payout ratio like that, it's easy to see why investors might get concerned about the wisdom of continued hikes. A sharp earnings downturn could easily require the company to pay out more in dividends than its earnings bring in.
But it's important to keep that figure in context. Competitors like Bristol-Myers Squibb, Sanofi, and Johnson & Johnson all have payout ratios above 60%, so AbbVie is hardly alone in having a somewhat limited overhead to keep hiking dividends in the absence of earnings growth.
As long as it keeps commercializing new medicines and working to widen the approved indications for its existing medicines to increase the size of their addressable markets, it's reasonable to expect its earnings to continue to grow. And with nine regulatory submissions for new drugs planned for 2023 alone, several new income streams are close to guaranteed to launch in the near term.
Still, if the payout ratio continues to rise over time despite growth, it'll be a red flag for shareholders that the dividend is in danger, so the concern isn't one that can be explained away; it's a genuine risk. Furthermore, Wall Street analysts estimate on average that the pharmaceutical giant's revenue and earnings will shrink slightly in 2023 as a result of the loss of exclusivity of one of its most lucrative medicines, Humira. But, management expects the company to recover and return to sales growth in 2024 and 2025, so if it can maintain the dividend or grow it at a slower pace through then, the payout will probably be in the clear.
Another issue that's likely bugging investors is the company's debt load of nearly $70 billion. It's true that such a debt burden looms large in comparison to its assets. It's also true that being highly leveraged could make borrowing money more expensive, imperiling its earnings down the line.
But, since early 2021 AbbVie is aggressively deleveraging, with its trailing-12-month (TTM) debt repayment standing at $11.3 billion. And only $9.2 billion of its debt load is due within a year as of Q3, which won't be a problem with its more than $21.9 billion in TTM free cash flow (FCF) in 2021.
Expect more payouts in the future
Despite AbbVie's limited overhead for additional dividend hikes and its upcoming headwinds from the loss of Humira, it will probably be able to keep paying its dividend for the foreseeable future. If you don't believe that, check out this chart:
ABBV Revenue (Quarterly) data by YCharts
As you can see, its quarterly FCF and its cash holdings have only grown stronger over time, which is remarkable because it means that hiking the dividend by so much in the last 10 years didn't actually prevent the business from accumulating loads more money.
Likewise, its recent actions of paying down its debt haven't stopped it from stacking bills. Right now, it has more than $11.8 billion in cash, so it has quite the war chest to dip into if the next couple of years see more difficulty than management anticipates.
In short, investors can have moderate to high confidence that AbbVie's dividend will continue to be a reliable source of passive income, and that's yet another factor making the stock an attractive purchase.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Bristol-Myers Squibb. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In short, investors can have moderate to high confidence that AbbVie's dividend will continue to be a reliable source of passive income, and that's yet another factor making the stock an attractive purchase. There's not much point in buying a passive-income stock like AbbVie (NYSE: ABBV) if it's going to fail to deliver its quarterly dividend into your account. As it turns out, there is indeed a risk that within the next few years, AbbVie's shareholders get left high and dry instead of getting refreshed with cash as usual. | Expect more payouts in the future Despite AbbVie's limited overhead for additional dividend hikes and its upcoming headwinds from the loss of Humira, it will probably be able to keep paying its dividend for the foreseeable future. There's not much point in buying a passive-income stock like AbbVie (NYSE: ABBV) if it's going to fail to deliver its quarterly dividend into your account. As it turns out, there is indeed a risk that within the next few years, AbbVie's shareholders get left high and dry instead of getting refreshed with cash as usual. | Competitors like Bristol-Myers Squibb, Sanofi, and Johnson & Johnson all have payout ratios above 60%, so AbbVie is hardly alone in having a somewhat limited overhead to keep hiking dividends in the absence of earnings growth. Expect more payouts in the future Despite AbbVie's limited overhead for additional dividend hikes and its upcoming headwinds from the loss of Humira, it will probably be able to keep paying its dividend for the foreseeable future. There's not much point in buying a passive-income stock like AbbVie (NYSE: ABBV) if it's going to fail to deliver its quarterly dividend into your account. | Expect more payouts in the future Despite AbbVie's limited overhead for additional dividend hikes and its upcoming headwinds from the loss of Humira, it will probably be able to keep paying its dividend for the foreseeable future. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! There's not much point in buying a passive-income stock like AbbVie (NYSE: ABBV) if it's going to fail to deliver its quarterly dividend into your account. |
22897.0 | 2023-01-10 00:00:00 UTC | Abbvie raises sales outlook of two new drugs to more than $17.5 bln in 2025 | ABBV | https://www.nasdaq.com/articles/abbvie-raises-sales-outlook-of-two-new-drugs-to-more-than-%2417.5-bln-in-2025 | nan | nan | Adds background
Jan 10 (Reuters) - AbbVie Inc ABBV.N on Tuesday raised its 2025 sales forecast of its newer immunology drugs Skyrizi and Rinvoq to more than $17.5 billion as it hopes to replace the loss of revenue from its blockbuster rheumatoid arthritis drug Humira.
The company's previous sales outlook for Skyrizi and Rinvoq in 2025 was more than $15 billion.
AbbVie also expects peak sales of the drugs to exceed $21 billion in 2027. The two drugs are part of the company's long-term growth strategy to offset Humira's loss of exclusivity.
The drugmaker has been in contract negotiations with insurers and pharmacy benefit managers for Humira for this year, and said in October that pricing of its rivals would determine the drug's sales this year.
(Reporting by Leroy Leo in Bengaluru; Editing by Shinjini Ganguli and Shounak Dasgupta)
((Leroy.Dsouza@thomsonreuters.com; Twitter: https://twitter.com/LeroyLeo7))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background Jan 10 (Reuters) - AbbVie Inc ABBV.N on Tuesday raised its 2025 sales forecast of its newer immunology drugs Skyrizi and Rinvoq to more than $17.5 billion as it hopes to replace the loss of revenue from its blockbuster rheumatoid arthritis drug Humira. AbbVie also expects peak sales of the drugs to exceed $21 billion in 2027. The two drugs are part of the company's long-term growth strategy to offset Humira's loss of exclusivity. | Adds background Jan 10 (Reuters) - AbbVie Inc ABBV.N on Tuesday raised its 2025 sales forecast of its newer immunology drugs Skyrizi and Rinvoq to more than $17.5 billion as it hopes to replace the loss of revenue from its blockbuster rheumatoid arthritis drug Humira. AbbVie also expects peak sales of the drugs to exceed $21 billion in 2027. The company's previous sales outlook for Skyrizi and Rinvoq in 2025 was more than $15 billion. | Adds background Jan 10 (Reuters) - AbbVie Inc ABBV.N on Tuesday raised its 2025 sales forecast of its newer immunology drugs Skyrizi and Rinvoq to more than $17.5 billion as it hopes to replace the loss of revenue from its blockbuster rheumatoid arthritis drug Humira. AbbVie also expects peak sales of the drugs to exceed $21 billion in 2027. The drugmaker has been in contract negotiations with insurers and pharmacy benefit managers for Humira for this year, and said in October that pricing of its rivals would determine the drug's sales this year. | Adds background Jan 10 (Reuters) - AbbVie Inc ABBV.N on Tuesday raised its 2025 sales forecast of its newer immunology drugs Skyrizi and Rinvoq to more than $17.5 billion as it hopes to replace the loss of revenue from its blockbuster rheumatoid arthritis drug Humira. AbbVie also expects peak sales of the drugs to exceed $21 billion in 2027. The company's previous sales outlook for Skyrizi and Rinvoq in 2025 was more than $15 billion. |
22898.0 | 2023-01-09 00:00:00 UTC | AbbVie's Qulipta Approved In Canada For Preventive Treatment Of Episodic Migraine In Adults | ABBV | https://www.nasdaq.com/articles/abbvies-qulipta-approved-in-canada-for-preventive-treatment-of-episodic-migraine-in-adults | nan | nan | (RTTNews) - AbbVie (ABBV) said that Health Canada has approved Qulipta (atogepant) for the prevention of episodic migraine (less than 15 migraine days per month) in adults.
The approval is supported by data from a robust clinical program evaluating the efficacy, safety and tolerability of Qulipta in nearly 2,000 patients who experienced 4 to 14 migraine days per month.
Qulipta demonstrated statistically significant, clinically meaningful, rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4.
Qulipta (atogepant) is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist specifically developed for the preventive treatment of episodic migraine. QULIPTA is an orally administered, small molecule, selective calcitonin gene-related peptide (CGRP) receptor antagonist that blocks the binding of the CGRP to its receptor. CGRP is a neuropeptide that may play a role in migraine pathophysiology.
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) said that Health Canada has approved Qulipta (atogepant) for the prevention of episodic migraine (less than 15 migraine days per month) in adults. The approval is supported by data from a robust clinical program evaluating the efficacy, safety and tolerability of Qulipta in nearly 2,000 patients who experienced 4 to 14 migraine days per month. Qulipta demonstrated statistically significant, clinically meaningful, rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. | (RTTNews) - AbbVie (ABBV) said that Health Canada has approved Qulipta (atogepant) for the prevention of episodic migraine (less than 15 migraine days per month) in adults. Qulipta (atogepant) is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist specifically developed for the preventive treatment of episodic migraine. QULIPTA is an orally administered, small molecule, selective calcitonin gene-related peptide (CGRP) receptor antagonist that blocks the binding of the CGRP to its receptor. | (RTTNews) - AbbVie (ABBV) said that Health Canada has approved Qulipta (atogepant) for the prevention of episodic migraine (less than 15 migraine days per month) in adults. Qulipta demonstrated statistically significant, clinically meaningful, rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. Qulipta (atogepant) is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist specifically developed for the preventive treatment of episodic migraine. | (RTTNews) - AbbVie (ABBV) said that Health Canada has approved Qulipta (atogepant) for the prevention of episodic migraine (less than 15 migraine days per month) in adults. Qulipta demonstrated statistically significant, clinically meaningful, rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. Qulipta (atogepant) is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist specifically developed for the preventive treatment of episodic migraine. |
22899.0 | 2023-01-09 00:00:00 UTC | Top Dividend Stocks To Invest In 2023? 3 For Your List | ABBV | https://www.nasdaq.com/articles/top-dividend-stocks-to-invest-in-2023-3-for-your-list | nan | nan | A dividend stock is a type of stock that pays out a portion of the company’s profits to shareholders in the form of dividends. These payments are generally paid on a regular basis. This can include quarterly or annually. While dividends are typically paid in cash. Although they can also be paid in the form of additional shares of stock. Dividend stocks are often appealing to investors because they provide a source of income in addition to any potential appreciation in the stock price.
One of the main benefits of dividend stocks is that they can provide a steady stream of income. This can be particularly attractive for investors who are in retirement or nearing retirement. This comes as dividends can help to supplement their other sources of income. Dividend stocks can also be a good option for investors who are looking for a more conservative investment strategy, as the dividends provide a buffer against any potential declines in the stock price.
In general, dividend stocks can be an attractive investment option for investors looking for a source of income or a more conservative investment strategy. It is important to carefully evaluate the financial health and sustainability of the dividend, as well as the industry and overall economic environment, before investing in dividend stocks. Considering this, here are three top dividend stocks to watch in the stock market in 2023.
Dividend Stocks To Watch For 2023
The McDonald’s Corporation (NYSE: MCD)
AbbVie Inc. (NYSE: ABBV)
United Parcel Service Inc. (NYSE: UPS)
McDonald’s Corporation (MCD Stock)
Leading off, McDonald’s Corporation (MCD) is a multinational fast food company. It is the world’s largest restaurant chain by revenue. Additionally, the company is known for its burgers, fries, and shakes. As well as a variety of other menu items including chicken, salads, and breakfast items. Today, the company offers shareholders an annual dividend yield of 2.26%.
Meanwhile, back in October, the company reported its third-quarter financial results. In detail, during the third quarter of 2022, McDonald’s released financial results that exceeded expectations. The company earned $2.68 per share and had a revenue of $5.9 billion during this period. These figures surpassed the predictions of analysts, who anticipated earnings of $2.57 per share and revenue of $5.7 billion for the quarter.
Over the last six months, shares of MCD have increased by 6.39% as of Friday’s close. In the early Monday morning trading session, McDonald’s stock look to open the trading week at 269.47 a share.
Source: TD Ameritrade TOS
[Read More] 3 Natural Gas Stocks To Watch In The Stock Market This Week
AbbVie (ABBV Stock)
Second, AbbVie (ABBV) is a global biopharmaceutical company. The company focuses on developing and marketing advanced therapies for a range of serious illnesses. This includes cancer, hepatitis C, multiple sclerosis, and rheumatoid arthritis. AbbVie’s portfolio includes a number of well-known drugs, including Humira, an anti-inflammatory treatment that is one of the best-selling drugs in the world. Today, ABBV offers its shareholders an annual dividend yield of 3.55%.
Next, in January, the company announced it will release its Q4 2022 financial results. Specifically, AbbVie will disclose its financial results for the fourth quarter of 2022 on February 9, 2023. The announcement will be made before the market opens and will be followed by a live webcast of theearnings conference callat 8 a.m. Central Time. The webcast will be accessible through the Investor Relations section of the company’s website.
In the last six months, shares of ABBV stock have rebounded by 8.69%. Meanwhile, as we head into this new trading week, ABBV looks to open Monday’s trading session at around $166.30 a share.
Source: TD Ameritrade TOS
[Read More] 3 Blue Chip Stocks To Watch Ahead Of This Week
United Parcel Service (UPS Stock)
Topping off the list we have United Parcel Service (UPS). For starters, United Parcel Service (UPS) is a global delivery company. The company operates a fleet of planes, trucks, and cargo ships to deliver packages and freight to over 220 countries and territories around the world. Additionally, UPS offers a range of delivery services, including air and ground shipping, freight forwarding, and logistics solutions. Currently, UPS has an annual dividend yield of 3.40%.
In November, UPS announced they have completed its acquisition of Bomi Group, a global healthcare logistics company. As a result of this acquisition, UPS Healthcare will gain access to temperature-controlled facilities in 14 countries and will add 3,000 employees to its team in Europe and Latin America. Bomi Group will now operate under the name Bomi Group. Moreover, the acquisition will also expand UPS Healthcare’s reach, giving its customers access to 216 facilities with a total of 17 million square feet of compliant healthcare distribution space in 37 countries and territories.
In the last six months of trading, UPS stock has fallen by 3.08%. Meanwhile, going into this trading week, shares of UPS stock look set to open at around $178.95 a share.
Source: TD Ameritrade TOS
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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 this, here are three top dividend stocks to watch in the stock market in 2023. Dividend Stocks To Watch For 2023 The McDonald’s Corporation (NYSE: MCD) AbbVie Inc. (NYSE: ABBV) United Parcel Service Inc. (NYSE: UPS) McDonald’s Corporation (MCD Stock) Leading off, McDonald’s Corporation (MCD) is a multinational fast food company. Source: TD Ameritrade TOS [Read More] 3 Natural Gas Stocks To Watch In The Stock Market This Week AbbVie (ABBV Stock) Second, AbbVie (ABBV) is a global biopharmaceutical company. AbbVie’s portfolio includes a number of well-known drugs, including Humira, an anti-inflammatory treatment that is one of the best-selling drugs in the world. | Considering this, here are three top dividend stocks to watch in the stock market in 2023. Dividend Stocks To Watch For 2023 The McDonald’s Corporation (NYSE: MCD) AbbVie Inc. (NYSE: ABBV) United Parcel Service Inc. (NYSE: UPS) McDonald’s Corporation (MCD Stock) Leading off, McDonald’s Corporation (MCD) is a multinational fast food company. Source: TD Ameritrade TOS [Read More] 3 Natural Gas Stocks To Watch In The Stock Market This Week AbbVie (ABBV Stock) Second, AbbVie (ABBV) is a global biopharmaceutical company. AbbVie’s portfolio includes a number of well-known drugs, including Humira, an anti-inflammatory treatment that is one of the best-selling drugs in the world. | Considering this, here are three top dividend stocks to watch in the stock market in 2023. Dividend Stocks To Watch For 2023 The McDonald’s Corporation (NYSE: MCD) AbbVie Inc. (NYSE: ABBV) United Parcel Service Inc. (NYSE: UPS) McDonald’s Corporation (MCD Stock) Leading off, McDonald’s Corporation (MCD) is a multinational fast food company. Source: TD Ameritrade TOS [Read More] 3 Natural Gas Stocks To Watch In The Stock Market This Week AbbVie (ABBV Stock) Second, AbbVie (ABBV) is a global biopharmaceutical company. AbbVie’s portfolio includes a number of well-known drugs, including Humira, an anti-inflammatory treatment that is one of the best-selling drugs in the world. | Considering this, here are three top dividend stocks to watch in the stock market in 2023. Dividend Stocks To Watch For 2023 The McDonald’s Corporation (NYSE: MCD) AbbVie Inc. (NYSE: ABBV) United Parcel Service Inc. (NYSE: UPS) McDonald’s Corporation (MCD Stock) Leading off, McDonald’s Corporation (MCD) is a multinational fast food company. Source: TD Ameritrade TOS [Read More] 3 Natural Gas Stocks To Watch In The Stock Market This Week AbbVie (ABBV Stock) Second, AbbVie (ABBV) is a global biopharmaceutical company. AbbVie’s portfolio includes a number of well-known drugs, including Humira, an anti-inflammatory treatment that is one of the best-selling drugs in the world. |
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