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22900.0 | 2023-01-08 00:00:00 UTC | The 7 Best Dividend Stocks to Buy for Your Grandkids in 2023 | ABBV | https://www.nasdaq.com/articles/the-7-best-dividend-stocks-to-buy-for-your-grandkids-in-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re looking for some of the best dividend stocks for grandkids, now is the time to buy. After all, 2022 was an absolute disaster.
Whatever could have gone wrong went wrong. For many of us, 2022 became the year to forget. All thanks to sky-high inflation, rising interest rates, lingering pandemic challenges, war in Ukraine, slowing growth, higher chances for recession, and fed-up consumers.
Over the long term, if you’re looking for the best dividend stocks for grandkids, with a long enough timeline and reinvestment of dividends, even a small investment can pay off big. In fact, here are seven you may want to consider.
ABBV AbbVie $166.55
ENB Enbridge $40.52
WPC W.P. Carey $80.61
ADC Agree Realty $70.78
KO Coca-Cola $63.40
ABR Arbor Realty $13.79
DLR Digital Realty $101.38
AbbVie (ABBV)
Source: Sisacorn / Shutterstock.com
AbbVie (NYSE:ABBV) had a strong 2022. I expect 2023 to be just as strong, even with nearing patent expirations on its Humira drug.
Helping ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized. The stock has a current yield of 3.62%.
Sure, its $200 billion Humira drug lost protection in Europe and will face increased competition from biosimilars in 2023, but don’t write the stock off just yet. In fact, we have to remember that the company’s Skyrizi and Rinvoq drugs could bring in about $15 billion in sales over the next three years. That alone should take away the sting of Humira.
Enbridge (ENB)
Source: PopTika / Shutterstock
With a dividend yield of 6.68%, Enbridge (NYSE:ENB) is a lower risk, high yield opportunity that should keep your portfolio safe from chaos.
The company has a wide moat portfolio, including the second longest natural gas pipeline in the U.S., North America’s longest crude oil pipeline, and a high-growth renewable power generation business.
Even better, the company just boosted its quarterly dividend to $0.8875 per share. It’s payable on March 1 to shareholders of record as of Feb. 15, 2023. Moving forward, Enbridge reiterated its 2022 full-year revenue guidance for adjusted EBITDA of $15 billion to $15.6 billion.
It also announced 2023 EBITDA guidance of $15.9 billion to $16.5 billion. In short, Enbridge should have quite a year in 2023.
W.P. Carey (WPC)
Source: Don Pablo / Shutterstock.com
When inflation is running hot, take a look at WP Carey (NYSE:WPC), a net lease real estate investment trust that buys properties directly from companies, and then leases them back to an oftentimes reliable tenant. It’s also called a lease-back.
Or, where “a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control,” as noted by the company.
What’s interesting about WP Carey is nearly all of its rental agreements include contractual rent increases for inflation, according to BNK Invest. In fact, about 60% of the agreements are tied to the consumer price index. Well diversified with industrial, warehouse, office, retail, and self-storage, the REIT also pays a dividend yield of 5.45%.
Agree Realty (ADC)
Source: Vitalii Vodolazskyi / Shutterstock
With a yield of 4.17%, Agree Realty (NYSE:ADC) is another interesting real estate company I’ve been focusing on. Much of this has to do with the company’s business model, which is aimed at acquiring and developing properties that are net leased to industry-leading omnichannel retail tenants.
At the moment, this company has just under 36 million square feet of space it leases to those reliable investment-grade tenants. Better, as of Sept., the company acquired another 303 properties across 42 states for about $1.19 billion.
This company’s growing property portfolio has allowed it to recently increase its monthly dividend to 24 cents per share, which amounts to $2.88 per share annualized. Even more impressive are its recent earnings. In its second quarter, the company posted revenue of $104.9 million, as compared to expectations of $102.3 million. Agree also increased its full-year acquisition guidance to a new range of $1.5 billion to $1.7 billion.
Coca-Cola (KO)
Source: MAHATHIR MOHD YASIN / Shutterstock.com
With strong demand, dependable dividends, and incredible earnings growth, Coca-Cola (NYSE:KO) may be one of the best dividend stocks to consider as a long-term investment.
Coca-Cola is also a dividend king, raising its dividend for the last 60+ years. This stock currently carries a yield of 2.83% and continues to be one of the safest stocks on the market. In addition, in its most recent quarter, the company posted earnings per share of 69 cents on sales of $11.1 billion.
That’s up from the 65 cents on sales of $10 billion during the same quarter last year. Analysts were looking for 64 cents on sales of $10.5 billion.
For the year, the company expects revenue growth to fall in the range of 14% and 15%, which is higher than its initial forecast of 12% to 13%. Coca-Cola also raised its growth estimates on adjusted earnings per share to a new range of 6% to 7%, from 5% to 6%.
Also company director Herb Allen just bought 33,200 shares for $2 million. That’s reason enough for me to recommend it as one of the best dividend stocks for grandkids.
Arbor Realty Trust (ABR)
Source: Pavel Kapysh / Shutterstock.com
Arbor Realty Trust (NYSE:ABR) carries a dividend yield of 11.71%, and is also a REIT I’d put in the oversold camp.
The company also raised its cash dividend to 40 cents, its 10th consecutive quarterly increase. That was payable back in November. However, we do expect to see another increase to be announced in the near term.
Company earnings have also been solid. Distributable earnings for the quarter was $105.1 million, or $0.56 per diluted common share, compared to $75.7 million, or $0.47 per diluted common share year over year, making it one of the best dividend stocks for grandkids.
Digital Realty (DLR)
Source: dotshock / Shutterstock
With a yield of 4.98%, Digital Realty (NYSE:DLR) is a real estate stock worth considering.
This REIT owns, acquires, develops, and operates data centers, which is a major catalyst for the stock. That’s a smart bet once you consider 80% of the world will be online, by 2024, says the firm. We could see about $10.5 trillion of online consumer spending, which could result in explosive new digital services markets.
And, by 2027, 41% of enterprise revenue will come from digital services.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
The post The 7 Best Dividend Stocks to Buy for Your Grandkids in 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. | ABBV AbbVie $166.55 ENB Enbridge $40.52 WPC W.P. Carey $80.61 ADC Agree Realty $70.78 KO Coca-Cola $63.40 ABR Arbor Realty $13.79 DLR Digital Realty $101.38 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022. Helping ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized. | Carey $80.61 ADC Agree Realty $70.78 KO Coca-Cola $63.40 ABR Arbor Realty $13.79 DLR Digital Realty $101.38 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022. ABBV AbbVie $166.55 ENB Enbridge $40.52 WPC W.P. Helping ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized. | ABBV AbbVie $166.55 ENB Enbridge $40.52 WPC W.P. Carey $80.61 ADC Agree Realty $70.78 KO Coca-Cola $63.40 ABR Arbor Realty $13.79 DLR Digital Realty $101.38 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022. Helping ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized. | ABBV AbbVie $166.55 ENB Enbridge $40.52 WPC W.P. Carey $80.61 ADC Agree Realty $70.78 KO Coca-Cola $63.40 ABR Arbor Realty $13.79 DLR Digital Realty $101.38 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022. Helping ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized. |
22901.0 | 2023-01-07 00:00:00 UTC | 3 No-Brainer Dividend Stocks to Buy in 2023 | ABBV | https://www.nasdaq.com/articles/3-no-brainer-dividend-stocks-to-buy-in-2023 | nan | nan | Too many choices can lead to analysis paralysis. Consider that there are over 4,300 dividend stocks that trade on the major U.S. stock exchanges. It would be nice to whittle the list down to a handful.
With this in mind, we asked three Motley Fool contributors to pick no-brainer dividend stocks to buy in 2023. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY).
Play the long game
Keith Speights (AbbVie): It's practically impossible to predict which dividend stocks will perform the best in 2023. Thankfully, we don't have to. If you play the long game, you only need to select dividend stocks that are likely to deliver solid total returns over the next decade and beyond. I think AbbVie makes the cut with this mindset.
The drugmaker offers an attractive dividend yield of nearly 3.7%. AbbVie also belongs to the exclusive group known as Dividend Kings -- stocks that have increased their dividends for at least 50 consecutive years.
In 2022, AbbVie trounced the market with a gain of 19.4%. Importantly, the stock was able to do this even though AbbVie's sales are about to decline with the loss of U.S. exclusivity for its top-selling drug, Humira.
Were investors like ostriches sticking their heads in the sand? Not at all. They were fully aware of Humira's impending challenges. However, they also knew that AbbVie has been preparing for this event for a long time.
There's no way to avoid a drop in revenue in 2023. But AbbVie should be able to quickly return to growth that extends for years to come. Its newer drugs, including Humira's successors Rinvoq and Skyrizi, along with a promising pipeline, will help the company more than offset the declining sales from Humira.
I don't know if AbbVie will be able to reward investors this year as much as it did in 2022. However, if you have a long-term horizon, that shouldn't matter.
Attractive yield and tons of stability
David Jagielski (Johnson & Johnson): If you want a no-brainer dividend in healthcare, Johnson & Johnson is a stock that should be near or at the top of your list. Despite inflation, economic challenges, and even legal troubles, the company has had no problem with generating strong profits over the years and increasing its dividend.
J&J's dividend yield of nearly 2.6% is a lot better than the S&P 500 average of 1.8%. The company's dividend is likely to grow steadily in the future if history is any guide. J&J has increased its dividend for 60 straight years. Over the past 10 years, the company has increased its dividend payments by 85%, averaging a compounded annual growth rate (CAGR) of 6.4% during that time.
In the trailing 12 months, Johnson & Johnson generated $17.7 billion in free cash flow -- 54% more than the $11.5 billion it paid out in cash dividends during that time. The company is only paying out 61% of its earnings as dividends, so there's plenty of room for its dividend to grow.
J&J's business will soon look a bit different with its plans to spin off its consumer health business this year. That could end up being a great move as it will allow the company to focus on pharmaceuticals and medical devices, segments that are larger and have more growth potential.
You can definitely find higher dividend yields than what Johnson & Johnson offers. However, J&J is a dividend stock that you can buy that won't put your portfolio at risk in what could be a volatile year in 2023.
The cherry on top
Prosper Junior Bakiny (Eli Lilly): Like most investors, those who seek dividends want companies with solid businesses since they are more likely to raise their payouts and less likely to cut or suspend them during economic downturns. That's precisely what makes Eli Lilly such an excellent dividend stock. Consider that the drugmaker has doubled its payouts in the past five years amid a pandemic, geopolitical tensions, and economic troubles that reached peaks unseen in decades.
Lilly won't stop raising its dividends anytime soon thanks to its product portfolio -- led by diabetes medicine Trulicity -- that will continue generating solid and consistent revenue and earnings. There are also newer therapies that will help catapult its results to new heights. Last year, the company earned approval for Mounjaro, a diabetes medicine that could become one of the best-selling drugs in the world once it reaches its peak.
Eli Lilly expects up to four new approvals by the end of 2023. The drugmaker could succeed where many others have failed with donanemab, a potential therapy for Alzheimer's disease. If approved, donanemab will almost certainly join Lilly's list of medicines that generate at least $1 billion annually.
There are many more exciting candidates in Eli Lilly's pipeline. Lilly has been a leader and an innovator for decades, especially in diabetes and obesity care. This has allowed it to produce steady financial results.
Lilly delivered a market-beating return for shareholders last year. Its dividend provided the cherry on top. Granted, the company's dividend yield of 1.24% is relatively low. However, Lilly has an impressive recent streak of dividend increases. It also has a reasonable payout ratio that should allow it to continue raising its dividend.
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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 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 AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). Play the long game Keith Speights (AbbVie): It's practically impossible to predict which dividend stocks will perform the best in 2023. I think AbbVie makes the cut with this mindset. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). Play the long game Keith Speights (AbbVie): It's practically impossible to predict which dividend stocks will perform the best in 2023. I think AbbVie makes the cut with this mindset. | AbbVie also belongs to the exclusive group known as Dividend Kings -- stocks that have increased their dividends for at least 50 consecutive years. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). Play the long game Keith Speights (AbbVie): It's practically impossible to predict which dividend stocks will perform the best in 2023. | I don't know if AbbVie will be able to reward investors this year as much as it did in 2022. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). Play the long game Keith Speights (AbbVie): It's practically impossible to predict which dividend stocks will perform the best in 2023. |
22902.0 | 2023-01-06 00:00:00 UTC | CytomX (CTMX) Up 55% on Strategic Partnership With Moderna | ABBV | https://www.nasdaq.com/articles/cytomx-ctmx-up-55-on-strategic-partnership-with-moderna | nan | nan | Shares of CytomX Therapeutics CTMX were up 55.3% in after-market trading on Jan 5 after management announced its collaboration agreement with Moderna MRNA to create investigational mRNA-based conditionally activated therapies.
The collaboration intends to combine Moderna's mRNA technology with CytomX's Probody Platform to generate and develop therapeutics for oncology and non-oncology conditions. While companies will collaborate on the discovery and pre-clinical development, Moderna will lead the clinical development and commercialization of therapeutics resulting from the agreement.
Per the terms of the agreement, CytomX will receive an upfront payment of $35 million (including $5 million as prepaid research funding) from Moderna. CytomX will also be eligible to receive up to $1.2 billion in milestone payments. In addition, CytomX will be eligible to receive tiered royalties on the future sales of therapies developed under this agreement.
The agreement also provides Moderna an option to participate in future equity financing by CytomX.
Shares of CytomX have declined 56.6% in the past year compared with the industry’s 16.6% fall.
Image Source: Zacks Investment Research
Like Moderna, CytomX also entered into a strategic collaboration with Regeneron REGN last November to develop next-generation bispecific immunotherapies. This collaboration intends to combine Regeneron and CytomX’s proprietary platforms to develop therapies for treating cancer. Per the terms, Regeneron will lead the development and commercialization of the candidates developed under this agreement. In return, Regeneron paid $30 million upfront payment to CytomX. In addition, CytomX will also be eligible to receive up to $2 billion in potential milestone payments and tiered royalties on the future sales of therapies developed under this agreement.
Apart from the above collaborations, CytomX has also entered into partnerships with large-cap pharma companies like AbbVie ABBV, Amgen and Bristol Myers and is developing pipeline candidates along with these companies, which have been designed to target multiple oncology indications.
In a separate press release, CytomX also announced business updates for 2023. The company intends to file separate investigational new drug (IND) applications for two new wholly owned programs, CX-2051 and CX-801, which will target cancer indications. CTMX also aims to broaden its pipeline in the field of T-cell-engaging bi-specifics.
CytomX also announced a pipeline update from the completed phase II cohort expansion study. This study evaluated CX-2029, an antibody drug conjugate (ADC) candidate, which is being developed in partnership with AbbVie. Data from this study showed that the AbbVie-partnered candidate continued to demonstrate encouraging anti-cancer activity in heavily pre-treated patients with squamous tumors. AbbVie and CytomX intend to determine the next steps for the candidate later this year.
CytomX Therapeutics, Inc. Price
CytomX Therapeutics, Inc. price | CytomX Therapeutics, Inc. Quote
Zacks Rank
CytomX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apart from the above collaborations, CytomX has also entered into partnerships with large-cap pharma companies like AbbVie ABBV, Amgen and Bristol Myers and is developing pipeline candidates along with these companies, which have been designed to target multiple oncology indications. This study evaluated CX-2029, an antibody drug conjugate (ADC) candidate, which is being developed in partnership with AbbVie. Data from this study showed that the AbbVie-partnered candidate continued to demonstrate encouraging anti-cancer activity in heavily pre-treated patients with squamous tumors. | Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report To read this article on Zacks.com click here. Apart from the above collaborations, CytomX has also entered into partnerships with large-cap pharma companies like AbbVie ABBV, Amgen and Bristol Myers and is developing pipeline candidates along with these companies, which have been designed to target multiple oncology indications. This study evaluated CX-2029, an antibody drug conjugate (ADC) candidate, which is being developed in partnership with AbbVie. | Apart from the above collaborations, CytomX has also entered into partnerships with large-cap pharma companies like AbbVie ABBV, Amgen and Bristol Myers and is developing pipeline candidates along with these companies, which have been designed to target multiple oncology indications. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report To read this article on Zacks.com click here. This study evaluated CX-2029, an antibody drug conjugate (ADC) candidate, which is being developed in partnership with AbbVie. | AbbVie and CytomX intend to determine the next steps for the candidate later this year. Apart from the above collaborations, CytomX has also entered into partnerships with large-cap pharma companies like AbbVie ABBV, Amgen and Bristol Myers and is developing pipeline candidates along with these companies, which have been designed to target multiple oncology indications. This study evaluated CX-2029, an antibody drug conjugate (ADC) candidate, which is being developed in partnership with AbbVie. |
22903.0 | 2023-01-06 00:00:00 UTC | AbbVie, Immunome Collaborate To Discover Multiple Novel Oncology Targets | ABBV | https://www.nasdaq.com/articles/abbvie-immunome-collaborate-to-discover-multiple-novel-oncology-targets | nan | nan | (RTTNews) - AbbVie (ABBV) and Immunome Inc. (IMNM) have collaborated to discover up to 10 novel antibody-target pairs arising from three specified tumor types using Immunome's Discovery Engine, the companies said in a statement.
As per the terms of the deal, Immunome will grant AbbVie the option to purchase worldwide rights for up to 10 novel target-antibody pairs arising from the selected tumors. Immunome will receive an upfront payment of $30 million and will be eligible to receive additional platform access payments in the aggregate amount of up to $70 million based on AbbVie's election for Immunome to continue research using its Discovery Engine.
Immunome is also eligible to receive development and first commercial sale milestones of up to $120 million per target with respect to certain products derived from target-antibody pairs that AbbVie elects to purchase, with potential for further sales-based milestones as well as tiered royalties on global sales.
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. | As per the terms of the deal, Immunome will grant AbbVie the option to purchase worldwide rights for up to 10 novel target-antibody pairs arising from the selected tumors. Immunome will receive an upfront payment of $30 million and will be eligible to receive additional platform access payments in the aggregate amount of up to $70 million based on AbbVie's election for Immunome to continue research using its Discovery Engine. Immunome is also eligible to receive development and first commercial sale milestones of up to $120 million per target with respect to certain products derived from target-antibody pairs that AbbVie elects to purchase, with potential for further sales-based milestones as well as tiered royalties on global sales. | (RTTNews) - AbbVie (ABBV) and Immunome Inc. (IMNM) have collaborated to discover up to 10 novel antibody-target pairs arising from three specified tumor types using Immunome's Discovery Engine, the companies said in a statement. Immunome will receive an upfront payment of $30 million and will be eligible to receive additional platform access payments in the aggregate amount of up to $70 million based on AbbVie's election for Immunome to continue research using its Discovery Engine. Immunome is also eligible to receive development and first commercial sale milestones of up to $120 million per target with respect to certain products derived from target-antibody pairs that AbbVie elects to purchase, with potential for further sales-based milestones as well as tiered royalties on global sales. | Immunome will receive an upfront payment of $30 million and will be eligible to receive additional platform access payments in the aggregate amount of up to $70 million based on AbbVie's election for Immunome to continue research using its Discovery Engine. Immunome is also eligible to receive development and first commercial sale milestones of up to $120 million per target with respect to certain products derived from target-antibody pairs that AbbVie elects to purchase, with potential for further sales-based milestones as well as tiered royalties on global sales. (RTTNews) - AbbVie (ABBV) and Immunome Inc. (IMNM) have collaborated to discover up to 10 novel antibody-target pairs arising from three specified tumor types using Immunome's Discovery Engine, the companies said in a statement. | (RTTNews) - AbbVie (ABBV) and Immunome Inc. (IMNM) have collaborated to discover up to 10 novel antibody-target pairs arising from three specified tumor types using Immunome's Discovery Engine, the companies said in a statement. As per the terms of the deal, Immunome will grant AbbVie the option to purchase worldwide rights for up to 10 novel target-antibody pairs arising from the selected tumors. Immunome will receive an upfront payment of $30 million and will be eligible to receive additional platform access payments in the aggregate amount of up to $70 million based on AbbVie's election for Immunome to continue research using its Discovery Engine. |
22904.0 | 2023-01-05 00:00:00 UTC | Noteworthy Thursday Option Activity: C, FDX, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-c-fdx-abbv | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Citigroup Inc (Symbol: C), where a total of 135,279 contracts have traded so far, representing approximately 13.5 million underlying shares. That amounts to about 73.2% of C's average daily trading volume over the past month of 18.5 million shares. Particularly high volume was seen for the $65 strike put option expiring January 20, 2023, with 32,400 contracts trading so far today, representing approximately 3.2 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $65 strike highlighted in orange:
FedEx Corp (Symbol: FDX) options are showing a volume of 17,789 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 65.1% of FDX's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $250 strike put option expiring January 20, 2023, with 3,350 contracts trading so far today, representing approximately 335,000 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $250 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 30,973 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 63.9% of ABBV's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 10,067 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for C options, FDX options, or ABBV options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 10,067 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing FDX's trailing twelve month trading history, with the $250 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 30,973 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 63.9% of ABBV's average daily trading volume over the past month, of 4.8 million shares. | Below is a chart showing FDX's trailing twelve month trading history, with the $250 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 30,973 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 63.9% of ABBV's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 10,067 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. | That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 63.9% of ABBV's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 10,067 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing FDX's trailing twelve month trading history, with the $250 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 30,973 contracts thus far today. | Particularly high volume was seen for the $150 strike put option expiring January 20, 2023, with 10,067 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing FDX's trailing twelve month trading history, with the $250 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 30,973 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 63.9% of ABBV's average daily trading volume over the past month, of 4.8 million shares. |
22905.0 | 2023-01-05 00:00:00 UTC | February 24th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/february-24th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the February 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 24th contracts and identified one put and one call contract of particular interest.
The put contract at the $160.00 strike price has a current bid of $4.25. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $160.00, but will also collect the premium, putting the cost basis of the shares at $155.75 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $163.56/share today.
Because the $160.00 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 2.66% return on the cash commitment, or 19.39% 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 $160.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $170.00 strike price has a current bid of $2.62. If an investor was to purchase shares of ABBV stock at the current price level of $163.56/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $170.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.54% if the stock gets called away at the February 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 $170.00 strike highlighted in red:
Considering the fact that the $170.00 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 1.60% boost of extra return to the investor, or 11.69% 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 $163.56) 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 $170.00 strike highlighted in red: Considering the fact that the $170.00 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 begin trading today, for the February 24th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $170.00 strike highlighted in red: Considering the fact that the $170.00 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 begin trading today, for the February 24th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $160.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $170.00 strike price has a current bid of $2.62. Below is a chart showing ABBV's trailing twelve month trading history, with the $170.00 strike highlighted in red: Considering the fact that the $170.00 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 begin trading today, for the February 24th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 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 $170.00 strike highlighted in red: Considering the fact that the $170.00 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 begin trading today, for the February 24th expiration. |
22906.0 | 2023-01-05 00:00:00 UTC | HDV, VZ, ABBV, PFE: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/hdv-vz-abbv-pfe%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $511.7 million dollar inflow -- that's a 4.0% increase week over week in outstanding units (from 121,050,000 to 125,950,000). Among the largest underlying components of HDV, in trading today Verizon Communications Inc (Symbol: VZ) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 2.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $91.24 per share, with $110.91 as the 52 week high point — that compares with a last trade of $103.85. 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 HDV, in trading today Verizon Communications Inc (Symbol: VZ) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 2.1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of HDV, in trading today Verizon Communications Inc (Symbol: VZ) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 2.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $511.7 million dollar inflow -- that's a 4.0% increase week over week in outstanding units (from 121,050,000 to 125,950,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $91.24 per share, with $110.91 as the 52 week high point — that compares with a last trade of $103.85. | Among the largest underlying components of HDV, in trading today Verizon Communications Inc (Symbol: VZ) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 2.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $511.7 million dollar inflow -- that's a 4.0% increase week over week in outstanding units (from 121,050,000 to 125,950,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $91.24 per share, with $110.91 as the 52 week high point — that compares with a last trade of $103.85. | Among the largest underlying components of HDV, in trading today Verizon Communications Inc (Symbol: VZ) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.1%, and Pfizer Inc (Symbol: PFE) is lower by about 2.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $511.7 million dollar inflow -- that's a 4.0% increase week over week in outstanding units (from 121,050,000 to 125,950,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $91.24 per share, with $110.91 as the 52 week high point — that compares with a last trade of $103.85. |
22907.0 | 2023-01-05 00:00:00 UTC | ABBV Crosses Above Average Analyst Target | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-average-analyst-target-1 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $162.53, changing hands for $163.69/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $135.00. And then on the other side of the spectrum one analyst has a target as high as $200.00. The standard deviation is $18.535.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $162.53/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $162.53 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
RECENT ABBV ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 6 7 8 8
Buy ratings: 1 1 1 1
Hold ratings: 7 7 6 6
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 2.23 2.16 2.03 2.03
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABBV — FREE.
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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 recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $162.53, changing hands for $163.69/share. And so with ABBV crossing above that average target price of $162.53/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $162.53 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $162.53, changing hands for $163.69/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. And so with ABBV crossing above that average target price of $162.53/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $162.53 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $162.53, changing hands for $163.69/share. | There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $162.53, changing hands for $163.69/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
22908.0 | 2023-01-04 00:00:00 UTC | These 2 Cheap Dividend Stocks Yield More Than 3% -- and They Beat the Market Last Year | ABBV | https://www.nasdaq.com/articles/these-2-cheap-dividend-stocks-yield-more-than-3-and-they-beat-the-market-last-year | nan | nan | It's OK to be greedy as an investor and want more than just a good dividend yield or solid growth. Some stocks actually offer both benefits, such as AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). Plus, both stocks beat the market last year and yet are still trading cheaply. Here's why it may not be too late to invest in them right now.
1. AbbVie
Drugmaker AbbVie had a strong year in 2022, with its shares rising 19% -- a mirror image of the S&P 500's performance, which fell by a similar percentage. Strong and consistent results have made the healthcare stock a popular investment to hold over the past year.
In its most recent earnings report, the company reported net revenue of $14.8 billion, up 3.3% year over year, for the quarter ended Sept. 30, 2022. And if you exclude the impact of foreign exchange rates, then the growth rate is 5.4%. Up-and-coming immunology drugs Skyrizi and Rinvoq generated impressive growth of 75% and 54%, respectively.
And AbbVie is still not firing on all cylinders as its hematologic oncology and eye care segments reported double-digit year-over-year declines -- so there's still room for the company's financials to improve even further.
Even though the stock has performed well, it trades at a relatively cheap forward price-to-earnings (P/E) ratio, which is based on analyst estimates, of 14. By comparison, the average S&P 500 stock trades at a multiple of more than 17.
Not only is AbbVie cheap and growing, but it also offers an attractive dividend that yields 3.7%, nearly two percentage points better than the S&P 500 average of 1.8%. AbbVie is also a Dividend King, enjoying a strong reputation for continued dividend growth. And with a payout ratio of less than 75%, the dividend looks to be in solid shape.
If you want a top dividend stock to own, AbbVie is an investment you won't want to overlook.
2. ExxonMobil
Oil and gas producer ExxonMobil is coming off a fantastic year that saw its share price skyrocket 80%. The market-beating stock has been one of the best places to invest of late. And at a forward P/E of 10, it still isn't an expensive stock to own.
The price of oil has been declining in recent months, but a return to normal in the economy could ensure that demand for the commodity remains high in 2023. The travel industry, for instance, may do well even amid inflation. The International Air Transport Association is projecting a profit this year, its first since before the pandemic, as it has been seeing strong demand.
A busy travel year bodes well for the price of oil, and it could mean another strong year for Exxon, which has generated profits totaling $51.9 billion over the trailing 12 months. Exxon's strong financials make the dividend look a whole lot safer -- its payout ratio is just 29%. That's a long way from the early stages of the pandemic, when there were concerns that the company might cut its dividend.
While the business isn't risk-free, as a lot still depends on the price of oil, Exxon is in a much better position today than it was just a few years ago. The stock's current yield is 3.3%, and Exxon has increased its payouts for 40 straight years.
If you're looking for a way to hedge against inflation this year or just want a solid dividend growth stock to own, Exxon can make for an excellent investment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And AbbVie is still not firing on all cylinders as its hematologic oncology and eye care segments reported double-digit year-over-year declines -- so there's still room for the company's financials to improve even further. Some stocks actually offer both benefits, such as AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie had a strong year in 2022, with its shares rising 19% -- a mirror image of the S&P 500's performance, which fell by a similar percentage. | Some stocks actually offer both benefits, such as AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie had a strong year in 2022, with its shares rising 19% -- a mirror image of the S&P 500's performance, which fell by a similar percentage. And AbbVie is still not firing on all cylinders as its hematologic oncology and eye care segments reported double-digit year-over-year declines -- so there's still room for the company's financials to improve even further. | 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. Some stocks actually offer both benefits, such as AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie had a strong year in 2022, with its shares rising 19% -- a mirror image of the S&P 500's performance, which fell by a similar percentage. | Some stocks actually offer both benefits, such as AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie had a strong year in 2022, with its shares rising 19% -- a mirror image of the S&P 500's performance, which fell by a similar percentage. And AbbVie is still not firing on all cylinders as its hematologic oncology and eye care segments reported double-digit year-over-year declines -- so there's still room for the company's financials to improve even further. |
22909.0 | 2023-01-04 00:00:00 UTC | 1 Smart Trick That'll Make You a Better Investor Instantly | ABBV | https://www.nasdaq.com/articles/1-smart-trick-thatll-make-you-a-better-investor-instantly | nan | nan | You need every edge you can get to succeed in investing, and sometimes it's the simplest tricks that get the most mileage.
So here's one incredibly smart trick that you definitely need to know: Don't look at the price of a stock before buying it. Price simply doesn't matter, whether it's a penny stock or something priced upward of $1,000 per share. Here's why.
Prices aren't how to find bargains
Imagine you're a buyer in a market for non-standardized bars of gold, which you expect to become more valuable over time due to the metal's scarcity. Sometimes a 1 oz bar of pure gold might sell for $1,200, and other days, the same 1 oz bar might cost you $1,400 or more. To complicate things, the bars for sale are often of varying weights.
Knowing the typical range of prices given the above variables, you probably wouldn't want to pay something ridiculous like $3,000 for a 1 oz bar if that's the price of the day; it's likely that such abnormally high prices are temporary. Nor would you want to pay $1,000 for a 0.5 oz bar, as the "low price" belies the fact that the bar is actually also quite expensive per ounce. But with stocks, investors do it all the time, because they look at the price of the shares (how much a bar costs today) rather than the amount of value they're getting for each share (the price you pay per ounce of pure gold in the bar). And that means they end up routinely overpaying.
Let's look at an example with AbbVie, (NYSE: ABBV) and Amazon (NASDAQ: AMZN). Amazon's shares are priced around $86, and AbbVie's are around $162. Using a few simple valuation metrics, we can come up with a few measurements about how much meat there is on each of their shares.
First, we'll examine the price-to-earnings (P/E) ratio, which tells you the cost you pay per dollar of a company's net income if you buy the stock. Amazon's is 79, whereas AbbVie's is 21.5, so Amazon's shares are more expensive for the right to control the same amount of earnings. There could well be compelling reasons to buy shares of Amazon rather than AbbVie, as the two companies compete in different industries and have dramatically different business models. But when it comes to the actual value that investors get with each share today, it isn't a close contest, and Amazon is the more expensive stock by far despite its lower price per share.
There's more than one reason this trick will make you better
Getting in the habit of scrutinizing a stock's value rather than its price is helpful for stretching your investment dollars as far as they can go.
But getting a bad deal at the time of purchase is only one issue. Companies don't grow at the same rate, and valuations factor in the expected growth of an enterprise in the future, so more- expensive shares in terms of their value today are often more attractive than cheap shares that won't grow as much. And a stock's price contains absolutely zero information about how much a company will grow.
Another common fallacy with price is that stocks with "low" prices are more likely to rise (or grow their revenue or earnings) than those with "high" prices. For instance, Wall Street analysts expected on average that the cannabis business Cresco Labs would expand its sales by 3.1% in its 2022 fiscal year. Its shares are currently about $1.89 each. But analysts also expected AbbVie's top line to rise by 3.9%, even though the stock's price is many times that of Cresco's.
So there's nothing inherently positive or negative about low prices per share. And shedding that illusion is yet another reason that ignoring the price altogether will make you a better investor. Keep your eyes on what matters in the long term: business factors driving changes in the value of a business, not share prices.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Cresco Labs. 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. | Let's look at an example with AbbVie, (NYSE: ABBV) and Amazon (NASDAQ: AMZN). Amazon's shares are priced around $86, and AbbVie's are around $162. Amazon's is 79, whereas AbbVie's is 21.5, so Amazon's shares are more expensive for the right to control the same amount of earnings. | Let's look at an example with AbbVie, (NYSE: ABBV) and Amazon (NASDAQ: AMZN). Amazon's shares are priced around $86, and AbbVie's are around $162. Amazon's is 79, whereas AbbVie's is 21.5, so Amazon's shares are more expensive for the right to control the same amount of earnings. | Let's look at an example with AbbVie, (NYSE: ABBV) and Amazon (NASDAQ: AMZN). Amazon's shares are priced around $86, and AbbVie's are around $162. Amazon's is 79, whereas AbbVie's is 21.5, so Amazon's shares are more expensive for the right to control the same amount of earnings. | Amazon's shares are priced around $86, and AbbVie's are around $162. Let's look at an example with AbbVie, (NYSE: ABBV) and Amazon (NASDAQ: AMZN). Amazon's is 79, whereas AbbVie's is 21.5, so Amazon's shares are more expensive for the right to control the same amount of earnings. |
22910.0 | 2023-01-04 00:00:00 UTC | 20 Recession-Proof Stocks to Buy Now for 2023 | ABBV | https://www.nasdaq.com/articles/20-recession-proof-stocks-to-buy-now-for-2023 | nan | nan | Today, I cover the 20 best recession-proof stocks to buy now for 2023. I discuss the industries and sectors that historically outperform during recessions, as well as 20 stock picks for you to explore.
*Stock prices used in the below video were during the trading day of Jan. 3, 2023. The video was published on Jan. 3, 2023.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Cuka has positions in AbbVie, Bank of America, Broadcom, Costco Wholesale, Home Depot, and UnitedHealth Group. The Motley Fool has positions in and recommends Bank of America, Bristol-Myers Squibb, Costco Wholesale, Home Depot, NextEra Energy, Palo Alto Networks, and Walmart. The Motley Fool recommends Broadcom, Casey's General Stores, Diageo Plc, Lowe's Companies, UnitedHealth Group, and VMware and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. Eric Cuka is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Eric Cuka has positions in AbbVie, Bank of America, Broadcom, Costco Wholesale, Home Depot, and UnitedHealth Group. I discuss the industries and sectors that historically outperform during recessions, as well as 20 stock picks for you to explore. The Motley Fool has positions in and recommends Bank of America, Bristol-Myers Squibb, Costco Wholesale, Home Depot, NextEra Energy, Palo Alto Networks, and Walmart. | Eric Cuka has positions in AbbVie, Bank of America, Broadcom, Costco Wholesale, Home Depot, and UnitedHealth Group. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Bank of America, Bristol-Myers Squibb, Costco Wholesale, Home Depot, NextEra Energy, Palo Alto Networks, and Walmart. | Eric Cuka has positions in AbbVie, Bank of America, Broadcom, Costco Wholesale, Home Depot, and UnitedHealth Group. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Eric Cuka has positions in AbbVie, Bank of America, Broadcom, Costco Wholesale, Home Depot, and UnitedHealth Group. * They just revealed what they believe are the ten best stocks for investors to buy right now... and McDonald's wasn't one of them! See the 10 stocks *Stock Advisor returns as of December 1, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. |
22911.0 | 2023-01-04 00:00:00 UTC | 3 Outstanding Dividend Growth Stocks to Buy for 2023 | ABBV | https://www.nasdaq.com/articles/3-outstanding-dividend-growth-stocks-to-buy-for-2023 | nan | nan | Would you like to know the worst-kept secret on Wall Street? Stocks with dividends that grow outperform stocks that don't pay dividends by a mile.
It stands to reason that companies committed to returning profits to shareholders outperform companies that don't. That said, the differences are probably more striking than you imagine. Data from Ned Davis Research and Hartford Funds shows that dividend growers and initiators delivered a 10.7% annual return during the period from 1973 through 2021. That's significantly better than the 8.2% return the S&P 500 index delivered over the same time frame and heaps better than the 4.8% return non-dividend-paying stocks delivered.
Image source: Getty Images.
Just because a stock has a history of dividend growth doesn't necessarily mean it can keep raising its payouts in the years ahead. These dividend payers stand out because they've been able to grow their payouts in recent years and they have what they need to continue making big payout bumps for many years to come.
Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns 435 hospitals and other acute care centers spread across 10 countries and four continents. As a REIT, it can avoid paying income taxes by distributing at least 90% of profits to investors as a dividend. At the moment, that dividend offers an eye-popping 10.4% yield.
Distributing nearly all its profits hasn't stopped Medical Properties Trust from growing its operations or its distribution. The company has been able to raise its dividend payout by 45% over the past decade.
Despite steady raises, Medical Properties Trust's dividend program is well funded. Funds from operations (FFO), a proxy for earnings used to evaluate REITs, came in at $2.75 per share over the past year. That's more than twice as much as the company needs to meet a dividend commitment currently set at an annualized $1.16 per share.
CVS Health
It's hard to find an American unfamiliar with CVS Health's (NYSE: CVS) leading chain of retail pharmacies. What most of us don't realize, though, is that there's a unique collection of related businesses driving dividend growth for its investors.
CVS Health has been able to raise its payout by a whopping 169% over the past decade. This is all the more impressive because the company froze its payout in place for over three years to help pay for its $69 billion acquisition of Aetna. This is a health insurance benefits provider that collects premiums from an estimated 35 million people.
With over 1,100 walk-in medical clinics and 9,000 pharmacies, CVS Heath can provide many of the health benefits it also gets paid to manage. Shares of the stock offer a yield of just 2.6% at the moment. This isn't the most attractive starting point, but the company's lucrative position as both provider and manager of health benefits could help it continue raising its payout at a rapid pace for many years to come.
AbbVie
AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. The spin-off took place to shield the parent from the eventual loss of patent-protected market exclusivity for its lead drug, Humira.
Humira is an injection for the treatment of chronic immune system disorders that probably generated more than $20 billion in sales last year, with the vast majority of sales coming from the U.S. market. Humira's been so resilient that AbbVie has been able to raise its payout a stunning 270% over the past decade.
Shares of AbbVie offer an above-average yield of 3.7% right now because lower-cost biosimilar versions of Humira launching in the U.S. this year will cut heavily into total sales. Luckily, the company has plenty of recently launched drugs that can more than offset Humira's impending losses. For example, Rinvoq for arthritis and Skyrizi for psoriasis launched in 2019 and they're already generating over $8 billion in combined sales annually.
Savvy dividend investors will notice that the company used just 45% of the free cash flow its operations generated over the past year to meet its dividend commitment. This suggests it can maintain its payout even if Rinvoq, Skyrizi, and the rest of its product lineup underperform expectations. Put it together and AbbVie looks like one of the more reliable dividend growth stocks you can buy right now.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends CVS Health. 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. | Shares of AbbVie offer an above-average yield of 3.7% right now because lower-cost biosimilar versions of Humira launching in the U.S. this year will cut heavily into total sales. AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. Humira's been so resilient that AbbVie has been able to raise its payout a stunning 270% over the past decade. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. Humira's been so resilient that AbbVie has been able to raise its payout a stunning 270% over the past decade. Shares of AbbVie offer an above-average yield of 3.7% right now because lower-cost biosimilar versions of Humira launching in the U.S. this year will cut heavily into total sales. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. Humira's been so resilient that AbbVie has been able to raise its payout a stunning 270% over the past decade. Shares of AbbVie offer an above-average yield of 3.7% right now because lower-cost biosimilar versions of Humira launching in the U.S. this year will cut heavily into total sales. | Shares of AbbVie offer an above-average yield of 3.7% right now because lower-cost biosimilar versions of Humira launching in the U.S. this year will cut heavily into total sales. AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. Humira's been so resilient that AbbVie has been able to raise its payout a stunning 270% over the past decade. |
22912.0 | 2023-01-03 00:00:00 UTC | AbbVie (ABBV) Gains As Market Dips: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-as-market-dips%3A-what-you-should-know-6 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $162.38, moving +0.48% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 4.72%.
Coming into today, shares of the drugmaker had lost 1.42% in the past month. In that same time, the Medical sector lost 2.63%, while the S&P 500 lost 5.57%.
AbbVie will be looking to display strength as it nears its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales 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 recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.16% higher within the past month. AbbVie currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 11.66. This valuation marks a discount compared to its industry's average Forward P/E of 14.99.
Meanwhile, ABBV's PEG ratio is currently 4.6. 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. ABBV's industry had an average PEG ratio of 2.17 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $162.38, moving +0.48% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. | AbbVie (ABBV) closed the most recent trading day at $162.38, moving +0.48% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. | AbbVie (ABBV) closed the most recent trading day at $162.38, moving +0.48% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. | AbbVie (ABBV) closed the most recent trading day at $162.38, moving +0.48% from the previous trading session. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. AbbVie will be looking to display strength as it nears its next earnings release. |
22913.0 | 2023-01-03 00:00:00 UTC | Beat the Dow Jones With This Unstoppable Dividend Stock | ABBV | https://www.nasdaq.com/articles/beat-the-dow-jones-with-this-unstoppable-dividend-stock-10 | nan | nan | The iconic Dow Jones needs no introduction to those fully immersed in the investing world. It is composed of 30 leading companies in the U.S. and stands as one of the country's oldest and most popular stock market indexes. Like other major U.S. indexes, it has delivered solid returns over the long run, so perhaps investing in an exchange-traded fund that tracks the Dow Jones isn't a bad idea.
However, some companies are more than capable of providing even better returns. Pharma giant AbbVie (NYSE: ABBV) falls in that category. Here is why.
This patent cliff won't sink AbbVie's prospects
Since splitting off from Abbott Laboratories in 2013, AbbVie has comfortably beaten the Dow Jones.
But the company's key asset in this period is now under threat. AbbVie's immunology drug Humira -- its top-selling product and one of the most successful drugs in history -- could start facing generic competition in the U.S. in 2023. Humira's sales have been declining in international markets since 2018 when it lost patent exclusivity in Europe.
But AbbVie was able to keep its revenue associated with the medicine afloat thanks to the U.S. market. Now, Humira's sales might drop off a cliff when generics enter that market. What will happen to AbbVie's top line? Thankfully, it shouldn't be the end of the world. Drugmakers often plan well in advance when they know they will face important patent cliffs, and that's what AbbVie did.
First, the company's blockbuster 2020 acquisition of Allergan helped expand its lineup with products like Vraylar -- which recently earned a label expansion as an adjunctive treatment for depression -- and Allergan's Botox franchise. These products should help offset Humira's declining sales. Second, AbbVie earned approvals for new key products.
Most notably, it expanded its immunology lineup with Skyrizi and Rinvoq, two medicines that have earned approvals across many of Humira's indications and have grown their sales at a rapid clip. AbbVie won't stop there. The company has plenty of pipeline programs that will help it strengthen its lineup down the line. In October 2022, it submitted epcoritamab, a potential cancer medicine, for approval in the U.S. and Europe.
In May 2022, the company submitted an application for ABBV-951 to the U.S. Food and Drug Administration for approval. ABBV-951 is the subcutaneous version of AbbVie's oral combo medicine, carbidopa/levodopa, which treats Parkinson's disease. AbbVie boasts dozens of other programs, including brand-new clinical compounds in various stages of development.
The company's track record and pipeline strongly suggest that losing patent exclusivity for Humira in the U.S. won't be a death sentence.
AbbVie's strong dividend record
In the third quarter, AbbVie reported revenue growth of 3.3% year over year to $14.8 billion, while its adjusted earnings per share came in at $3.66, 29.3% higher than the year-ago period. It seems very plausible that AbbVie's revenue and earnings growth rates will drop once it starts facing generic competition from Humira, at least momentarily. But that's unlikely to affect the company's dividend.
AbbVie is part of the club of Dividend Kings; it has raised its payouts for 50 consecutive years when considering the time it spent under the banner of Abbott Laboratories. With a cash payout ratio of almost 45%, the company's cash balance more than covers its dividends, leaving plenty of room for payout increases even if revenue and earnings drop for a few quarters.
AbbVie raised its dividends throughout the pandemic period and the subsequent economic troubles to the tune of 25% in the past three years. It currently boasts a yield of 3.66%, well above the average S&P 500 dividend yield of 1.82%. AbbVie's dividend track record is impeccable.
A solid forever stock
After a down 2022, the iconic Dow Jones may recover in 2023, although there is no guarantee that it will. AbbVie, on the other hand, had a solid showing in 2022. Given the upcoming issues related to Humira, investors could sell off the stock in the short term, but the company has all the tools needed to be successful over the long run.
AbbVie's solid business should lead to more approvals, a broader revenue base, stronger top-line and bottom-line growth, and consistent dividend increases. Whatever happens to the pharma company in 2023, AbbVie has an excellent chance of outperforming the Dow Jones in the next five years and beyond.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abb and 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. | Pharma giant AbbVie (NYSE: ABBV) falls in that category. This patent cliff won't sink AbbVie's prospects Since splitting off from Abbott Laboratories in 2013, AbbVie has comfortably beaten the Dow Jones. AbbVie's immunology drug Humira -- its top-selling product and one of the most successful drugs in history -- could start facing generic competition in the U.S. in 2023. | AbbVie's strong dividend record In the third quarter, AbbVie reported revenue growth of 3.3% year over year to $14.8 billion, while its adjusted earnings per share came in at $3.66, 29.3% higher than the year-ago period. It seems very plausible that AbbVie's revenue and earnings growth rates will drop once it starts facing generic competition from Humira, at least momentarily. Pharma giant AbbVie (NYSE: ABBV) falls in that category. | This patent cliff won't sink AbbVie's prospects Since splitting off from Abbott Laboratories in 2013, AbbVie has comfortably beaten the Dow Jones. AbbVie's strong dividend record In the third quarter, AbbVie reported revenue growth of 3.3% year over year to $14.8 billion, while its adjusted earnings per share came in at $3.66, 29.3% higher than the year-ago period. Whatever happens to the pharma company in 2023, AbbVie has an excellent chance of outperforming the Dow Jones in the next five years and beyond. | This patent cliff won't sink AbbVie's prospects Since splitting off from Abbott Laboratories in 2013, AbbVie has comfortably beaten the Dow Jones. But AbbVie was able to keep its revenue associated with the medicine afloat thanks to the U.S. market. Second, AbbVie earned approvals for new key products. |
22914.0 | 2023-01-03 00:00:00 UTC | 23 Top Dividend Stocks to Buy and Hold in 2023 | ABBV | https://www.nasdaq.com/articles/23-top-dividend-stocks-to-buy-and-hold-in-2023 | nan | nan | No one knows for sure what the new year will bring for investors. However, it's a good bet that quite a few solid companies will continue paying dividends quarter after quarter.
Some of them could also have significant upside potential over the next 12 months. Here are 23 top dividend stocks to buy and hold in 2023.
Energy
Energy stocks led the S&P 500 in 2022 and could very well soar again in the new year. Many of them offer especially juicy dividends, to boot.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
1. Brookfield Renewable Corporation (NYSE: BEPC) Renewable energy provider 4.6%
2. Brookfield Renewable Partners (NYSE: BEP) Renewable energy provider 5.2%
3. Chevron Integrated energy and chemicals producer 3.2%
4. Devon Energy (NYSE: DVN) Oil and gas producer 8.9%
5. Enterprise Products Partners Midstream energy services provider 7.8%
6. ONEOK Midstream energy services provider 5.7%
7. Pioneer Natural Resources (NYSE: PXD) Oil and gas producer 11.2%
Data source: Yahoo! Finance.
Note that the first two stocks on the list share the same underlying business. Brookfield Renewable Partners is a limited partnership (LP). The company created a separate stock organized as a corporation (Brookfield Renewable Corporation) to enable investors to avoid some of the tax hassles associated with LPs.
Also, the two stocks with the highest dividend yields -- Pioneer Natural Resources and Devon Energy -- pay a fixed-plus-variable dividend. The variable portion depends on the companies' excess free cash flow. Although there's no guarantee that Pioneer and Devon will be able to generate as much free cash flow in 2023 as they did last year, their chances appear to be pretty good.
Healthcare
Big pharma companies often pay solid dividends. These three definitely qualify -- and they each handily beat the market in 2022.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
8. AbbVie (NYSE: ABBV) Biopharmaceutical company 3.7%
9. Bristol Myers Squibb Biopharmaceutical company 3.2%
10. Johnson & Johnson (NYSE: JNJ) Biopharmaceutical, consumer health, and medical devices company 2.6%
Data source: Yahoo! Finance.
AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. The new year will be one of big changes for the two companies.
AbbVie faces declining sales for its top-selling drug Humira due to biosimilar competition in the U.S. J&J plans to spin off its consumer-health unit in 2023. However, both stocks should continue to be winners for investors over the long term.
Real estate
Real estate investment trusts (REITs) are known for their high dividend yields. Below are some of the best REITs on the market.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
11. Digital Realty Trust (NYSE: DLR) REIT focusing on data centers 4.8%
12. Easterly Government Properties (NYSE: DEA) REIT focusing on government properties 7.4%
13. Medical Properties Trust (NYSE: MPW) REIT focusing on hospitals 10.3%
14. Realty Income (NYSE: O) REIT focusing primarily on the retail market 4.7%
15. Rithm Capital (NYSE: RITM) REIT focusing on providing capital to financial services and real estate sectors 12.1%
16. W.P. Carey (NYSE: WPC) REIT focusing on multiple industries. 5.4%
Data source: Yahoo! Finance.
All of these REIT stocks fell in 2022, with some declining sharply. However, if the Federal Reserve stabilizes interest rates later this year, the stocks could enjoy nice rebounds.
Technology/telecommunications
Most tech stocks don't pay dividends. The ones that do tend to offer relatively low dividend yields.
Telecom stocks, on the other hand, often have attractive yields. The following stocks illustrate both points.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
17. Apple (NASDAQ: AAPL) Consumer technology company 0.73%
18. Microsoft (NASDAQ: MSFT) Software and devices maker 1.2%
19. Verizon Communications (NYSE: VZ) Telecommunications provider 6.7%
Data source: Yahoo! Finance.
You probably won't buy Apple or Microsoft for their dividends. However, these two beaten-down tech stocks could roar back in 2023.
Verizon likely won't deliver the long-term growth that these tech giants will over the long term. However, it comes with a high dividend yield that income investors shouldn't ignore.
Other
The final members of our list of dividend stocks to buy and hold in 2023 span multiple sectors. All of them offer great dividends and solid long-term growth prospects.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
20. Ares Capital (NASDAQ: ARCC) Business development company 10.3%
21. Brookfield Infrastructure Corporation (NYSE: BIPC) Infrastructure assets operator 3.7%
22. Brookfield Infrastructure Partners (NYSE: BIP) Infrastructure assets operator 4.6%
23. United Parcel Service Package delivery and logistics services provider 3.5%
Data source: Yahoo! Finance.
Note that Brookfield Infrastructure Corporation and Brookfield Infrastructure Partners share the same underlying business (in a similar way that we saw earlier with the two Brookfield Renewable stocks). Investing in Brookfield Infrastructure Corporation doesn't have the tax complications of Brookfield Infrastructure Partners, which is a limited partnership.
Ares Capital ranks among the smallest on the list of 23 dividend stocks, with a market cap of under $10 billion. However, it also pays one of the highest dividend yields. The company believes it will be able to continue paying out its high dividend under multiple scenarios for the economy in 2023.
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Keith Speights has positions in AbbVie, Apple, Bristol-Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, Enterprise Products Partners, and Microsoft. The Motley Fool has positions in and recommends Apple, Bristol-Myers Squibb, Brookfield Renewable, Digital Realty Trust, and Microsoft. The Motley Fool recommends Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable Partners, Easterly Government Properties, Enterprise Products Partners, Johnson & Johnson, ONEOK, Pioneer Natural Resources, United Parcel Service, Verizon Communications, and W. P. Carey and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. 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 faces declining sales for its top-selling drug Humira due to biosimilar competition in the U.S. J&J plans to spin off its consumer-health unit in 2023. AbbVie (NYSE: ABBV) Biopharmaceutical company 3.7% 9. AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in AbbVie, Apple, Bristol-Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, Enterprise Products Partners, and Microsoft. AbbVie (NYSE: ABBV) Biopharmaceutical company 3.7% 9. AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in AbbVie, Apple, Bristol-Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, Enterprise Products Partners, and Microsoft. AbbVie (NYSE: ABBV) Biopharmaceutical company 3.7% 9. AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. | AbbVie (NYSE: ABBV) Biopharmaceutical company 3.7% 9. AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. AbbVie faces declining sales for its top-selling drug Humira due to biosimilar competition in the U.S. J&J plans to spin off its consumer-health unit in 2023. |
22915.0 | 2023-01-02 00:00:00 UTC | The 10 Best Stocks to Buy in January 2023 | ABBV | https://www.nasdaq.com/articles/the-10-best-stocks-to-buy-in-january-2023 | nan | nan | Today, I tell you the 10 best stocks to buy in January 2023, which I believe have significant upside for long-term investors. I provide a blend of stocks, from hypergrowth stocks to mature growth stocks and dividend stocks.
*Stock prices used in the below video were during the trading day of Dec. 30, 2022. The video was published on Jan. 2, 2023.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric Cuka is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. | Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. I provide a blend of stocks, from hypergrowth stocks to mature growth stocks and dividend stocks. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. |
22916.0 | 2022-12-31 00:00:00 UTC | 3 Dividend Stocks to Buy Hand Over Fist in 2023 | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-hand-over-fist-in-2023 | nan | nan | Dividend stocks shine in times like these. They pay investors to wait until market conditions improve, and they often deliver solid returns even when the market flounders.
We asked three Motley Fool contributors to identify dividend stocks they would buy hand over fist in 2023. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY).
A smart contrarian pick
Keith Speights (AbbVie): AbbVie's top-selling drug Humira faces significant competition from biosimilars in the U.S. market for the first time ever in 2023. That fact alone might scare off many investors. However, I think that AbbVie is actually a smart contrarian pick for several reasons.
For one thing, the company's dividend isn't in any jeopardy. AbbVie offers a dividend yield of nearly 3.7%. The big drugmaker has increased its dividend for 50 consecutive years and will almost certainly keep that streak going in 2023.
Despite an impressive gain of roughly 20% in 2022, AbbVie's valuation remains attractive. Its shares trade at only 14 times expected earnings (a projection that reflects the looming challenges for Humira).
Most importantly, AbbVie is more than ready to weather the storm that 2023 will bring. Sure, the company will feel the impact of the steep sales decline for Humira. However, AbbVie has a strong lineup of other drugs that will help cushion the blow.
AbbVie should be able to quickly return to growth after this year. Over time, new autoimmune-disease drugs Rinvoq and Skyrizi could completely offset the negative impact of Humira's loss of exclusivity. Investors who focus only on the near-term headwinds for AbbVie will miss out on the bigger (and much better) story for the company.
This Dividend King is rock solid
Prosper Junior Bakiny (Johnson & Johnson): There are plenty of dividend stocks on Wall Street, but very few can claim to have raised their payouts for the past 60 years running. This feat is part of Johnson & Johnson's long list of accomplishments, making the healthcare giant a Dividend King. No company can increase its dividend for that long by accident. Johnson & Johnson has been able to do so thanks to a combination of factors.
First, the drugmaker is an innovator. It spends billions of dollars every year on research and development efforts that help it create newer and better medicines, many of which go on to generate annual sales well above $1 billion. Johnson & Johnson's products are well differentiated across multiple therapeutic areas, including infectious diseases, immunology, oncology, and neuroscience.
Second, Johnson & Johnson records consistent revenue and profits, partly because its medicines fall into the category of necessary goods. Johnson & Johnson was on a streak of 36 years of adjusted operational earnings growth before that was interrupted by the pandemic.
Third, the pharmaceutical giant has a solid balance sheet. That's readily apparent by J&J earning an AAA rating from Standard & Poor's, the highest rating available, and solid proof of the company's creditworthiness.
Lastly, beyond Johnson & Johnson's core pharmaceutical segment, it has also been a leader in medical devices and over-the-counter healthcare products through its consumer health segment. Although the company is in the process of spinning off the latter into a stand-alone entity, Johnson & Johnson's medical devices unit adds flexibility and diversification to the company's operations.
With the company's strong business and solid track record, investors can be confident that Johnson & Johnson will continue rewarding shareholders with dividend increases in 2023 and beyond. Income-seeking investors with little tolerance for risk and volatility need look no further.
Much more growth is ahead
David Jagielski (Eli Lilly): It's easy for dividend investors to overlook Eli Lilly's dividend. At 1.2%, it yields less than the S&P 500 average of 1.8% and many investors may wonder why they should bother with such an underwhelming payout.
But part of the reason the stock's yield is so low is because the business is doing so well and the share price has been soaring, which, as a result, has led to a lower dividend yield. Up more than 30% just this year, Eli Lilly has been a solid market-beating stock to own in 2022.
Between one of the most promising diabetes and weight-loss drugs in the healthcare industry in Mounjaro (its peak annual sales could hit $25 billion) and donanemab, an Alzheimer's treatment that's full of potential, Eli Lilly may generate some incredible growth in the years ahead. Even if your priority is collecting a dividend, a strong outlook for the future is important for a company because if it's rolling in profits, that can mean a more generous dividend in the long run.
And Lilly has been generous with respect to its dividend. In December, the company announced a hefty 15% dividend increase. Its dividend payout has doubled during the last five years.
The potential for dividend growth over the long run is what makes Eli Lilly a compelling investment to buy and hold for income investors. Its payout ratio is a modest 57% of earnings and its business looks rock-solid today. This is a dividend stock that investors shouldn't hesitate to load up on for the long haul.
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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 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 AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). A smart contrarian pick Keith Speights (AbbVie): AbbVie's top-selling drug Humira faces significant competition from biosimilars in the U.S. market for the first time ever in 2023. However, I think that AbbVie is actually a smart contrarian pick for several reasons. | A smart contrarian pick Keith Speights (AbbVie): AbbVie's top-selling drug Humira faces significant competition from biosimilars in the U.S. market for the first time ever in 2023. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). However, I think that AbbVie is actually a smart contrarian pick for several reasons. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). A smart contrarian pick Keith Speights (AbbVie): AbbVie's top-selling drug Humira faces significant competition from biosimilars in the U.S. market for the first time ever in 2023. However, I think that AbbVie is actually a smart contrarian pick for several reasons. | A smart contrarian pick Keith Speights (AbbVie): AbbVie's top-selling drug Humira faces significant competition from biosimilars in the U.S. market for the first time ever in 2023. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Eli Lilly (NYSE: LLY). However, I think that AbbVie is actually a smart contrarian pick for several reasons. |
22917.0 | 2022-12-31 00:00:00 UTC | 3 Best Value Stocks to Buy Before 2023 | ABBV | https://www.nasdaq.com/articles/3-best-value-stocks-to-buy-before-2023 | nan | nan | Astute students of the market probably know growth stocks have outpaced value stocks for the better part of the past 14 years. Although the overused axiom explains that "past performance is no guarantee of future results," this persistent outperformance certainly bolsters the bullish case for growth-oriented names.
However, don't be too shocked if value stocks have their proverbial day in the sun beginning in 2023.
One of the key reasons growth stocks have done so well for over a decade is the ultra-low interest rates seen during this period. With the federal funds rate now at 15-year highs and average lending rates subsequently similarly higher though, the cost of capital is now skyrocketing for these companies.
Conversely, the companies behind most value stocks are accustomed to costlier debt. They should remain about as profitable as they've been in other environments, possibly making them the more desirable names for the foreseeable future.
With that as the backdrop, here's a rundown of three value names you may want to add to your portfolio before 2022 ends and 2023 begins.
1. Ford Motor Company
Ford Motor Company (NYSE: F) bumped into the same demand and logistics headwind other companies did during the pandemic. As a reminder, though, the iconic carmaker has been struggling in earnest for years. The automobile business is changing, but Ford wasn't keeping up with these changes initially.
However, the stock's lack of net forward progress in the last 20 years prices in too little progress and much doubt. Shares are presently priced at less than seven times 2023's projected per-share earnings, while the stock's current dividend yield of 5.3% is well above the market-wide average. That's nuts, particularly for a company expected to see at least a bit of sales growth in the year ahead.
What's really being overlooked is how well Ford is preparing for its future.
Although the carmaker just booked a $2.7 billion charge to account for losses linked to its autonomous driving technology development partnership with Argo, it's not abandoning the technology. Instead, it's just better to focus on its core competencies by punting this R&D work to better-equipped third parties. Its core competencies are, of course, designing and building automobiles and, increasingly, electric vehicles.
To this end, the company can't keep up with demand for its all-electric Mach-E Mustang, prompting Ford to plan on nearly doubling 2022's total EV production in 2023. And, despite some criticisms of its all-electric F-150 Lightning pickup truck, the automaker intends to ramp up this vehicle's output in an effort to satisfy demand.
Given the U.S. Energy Information Administration's expectation that the number of electric vehicles traveling the world's roads will swell from around 10 million now to more than 670 million by 2050, Ford Motor Company is most definitely positioning itself for good, sustainable growth.
2. AbbVie
Pharmaceutical outfit AbbVie (NYSE: ABBV) makes several different drugs. Its breadwinner, though, is Humira. The arthritis and Crohn's disease treatment accounts for roughly half the company's revenue.
And that's an understandable worry for some investors.
See, Humira is on the verge of losing the crux of its patent protection. Biosimilar versions of the drug will become available within the United States in 2023, and as time marches on, more protection will expire. Humira's revenue could peak in the coming year -- or at least peak soon -- if it hasn't already.
This impending revenue headwind is arguably the biggest reason AbbVie shares have underperformed most of their pharma peers in recent years and the subsequent reason the stock's priced modestly at 14 times 2023's likely earnings.
The relative disinterest, however, ignores the fact that AbbVie's got an answer for the looming end of Humira's strength.
While no single drug can replace Humira, the drugmaker's got several in the works that could collectively do the job. All told, 12 late-stage oncology and immunology drug trials are now underway, looking at nine different therapies that have already been approved for other indications.
Meanwhile, immunology drugs Skyrizi and Rinvoq are off to a great start after launching in 2019, with more approved uses being tried -- and approved -- on a regular basis. Cancer-fighting Imbruvica is nearing annual sales of $5 billion, en route to what could be peak annual net sales of around $7 billion (or more) by the end of this decade.
And let's not forget AbbVie's recent acquisitions of Syndesi Therapeutics and DJS Antibodies, as well as 2020's deal to buy Allergan, bringing several new neurosciences, immunology, and hematology intellectual properties into AbbVie's portfolio.
The point is, AbbVie is better positioned for a post-Humira future than many investors may recognize.
3. Citigroup
Finally, add megabank Citigroup (NYSE: C) to your list of value stocks to step into before 2022 ends and 2023 begins.
It feels like a less-than-ideal time to own bank stocks. Not only does an economic headwind mean less demand for loans and investment-related services, but it can also mean borrowers increasingly struggle to make loan payments. The surge in mortgage loans seen in 2021 could readily translate into sizable loan losses going forward.
However, there are two factors not being considered here if this stock's near-halving since its mid-2021 peak is any indication.
The first of these factors is higher interest rates.
While the Mortgage Bankers Association reports applications for home purchases are now running about one-third lower than where they were just a year earlier, Citigroup's third-quarter net interest income of $12.5 billion was up 5% from Q2's figure, and up 18% year over year. It's the upside of several recent hikes of the federal funds rate, which first started ratcheting higher in March 2022 to reach its highest level this month since 2008. Higher interest rates make lending a more profitable venture on the loans still being made (and, of course, variable rate loans).
There's likely to be much more of the same where that came from, too. Bank of America CEO Brian Moynihan recently commented that Q4's net interest income could grow by $1 billion thanks to higher rates. Citigroup CFO Mark Mason has suggested a figure closer to a $2 billion increase is possible. Oh, and interest rates are likely to keep rising through 2023.
The other factor beckoning long-term investors back to Citigroup shares is its now-above-average dividend. The recent weakness translates into a paltry forward-looking price/earnings ratio of only 6.1 and has inflated the stock's (very reliable) dividend yield to 4.5% to boot. That's solid, even if your plan is to reinvest dividends in more shares of the stock paying them.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. 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 Pharmaceutical outfit AbbVie (NYSE: ABBV) makes several different drugs. This impending revenue headwind is arguably the biggest reason AbbVie shares have underperformed most of their pharma peers in recent years and the subsequent reason the stock's priced modestly at 14 times 2023's likely earnings. The relative disinterest, however, ignores the fact that AbbVie's got an answer for the looming end of Humira's strength. | This impending revenue headwind is arguably the biggest reason AbbVie shares have underperformed most of their pharma peers in recent years and the subsequent reason the stock's priced modestly at 14 times 2023's likely earnings. AbbVie Pharmaceutical outfit AbbVie (NYSE: ABBV) makes several different drugs. The relative disinterest, however, ignores the fact that AbbVie's got an answer for the looming end of Humira's strength. | This impending revenue headwind is arguably the biggest reason AbbVie shares have underperformed most of their pharma peers in recent years and the subsequent reason the stock's priced modestly at 14 times 2023's likely earnings. AbbVie Pharmaceutical outfit AbbVie (NYSE: ABBV) makes several different drugs. The relative disinterest, however, ignores the fact that AbbVie's got an answer for the looming end of Humira's strength. | AbbVie Pharmaceutical outfit AbbVie (NYSE: ABBV) makes several different drugs. This impending revenue headwind is arguably the biggest reason AbbVie shares have underperformed most of their pharma peers in recent years and the subsequent reason the stock's priced modestly at 14 times 2023's likely earnings. The relative disinterest, however, ignores the fact that AbbVie's got an answer for the looming end of Humira's strength. |
22918.0 | 2022-12-30 00:00:00 UTC | 2 "Safe" Stocks That Are Anything But | ABBV | https://www.nasdaq.com/articles/2-safe-stocks-that-are-anything-but | nan | nan | Safety in investing is often in the eye of the beholder, but not all that glitters is gold. Some stocks appear to be safe on the basis of the company's conservative business model or its large scale, only to leave investors exposed to brutal losses when financial results are worse than anticipated.
Avoiding buying these lemons is a key investing skill that's hard to cultivate without making a lot of costly mistakes along the way. Although no stock's safety can truly be guaranteed, there are some with very stable and long-standing businesses, which makes taking a deeper look into each company's financials and prospects crucial. So let's examine two examples of supposedly safe stocks that have actually lost between 50% and 60% of their value over the last five years, and which could easily fall another 50% in the next five years too.
1. Teva Pharmaceutical Industries
As a generic drugmaker, Teva Pharmaceutical Industries (NYSE: TEVA) has the trappings of a safe investment at first glance. Theoretically, demand for generic medications should be relatively consistent, and it's reasonable to believe that ongoing purchases of such drugs would make for a solid base of recurring revenue, which could increase over time.
Growing the top line, which was above $15.8 billion in 2021, "should" be simple, as commercializing copies of already-marketed therapies is substantially less risky than doing the entire drug development process in-house. And with control of a small handful of soon-to-be-launched generic competitors to blockbuster drugs like Humira, which earned its developer AbbVie more than $20.6 billion in 2021, Teva's near-term growth prospects are arguably quite favorable.
Unfortunately, there are a number of complications that derail this investing thesis. First, the company has a troublesome debt load of $21.6 billion that looms very large in comparison to its market cap of only $10.4 billion. Per management, its free cash flow (FCF) will go to paying down debt between now and the end of 2027.
That debt-reduction project has already been five years in the running, thereby starving the business of the capital it needs to grow. And stagnation isn't safe for investors; its trailing-12-month (TTM) revenue shrunk by 30.7% in the same period five years ago.
The next issue is that the company isn't profitable, so continuing to pay down debt will require dipping into its cash holdings, or growing its earnings promptly, which Wall Street analysts don't expect to happen next year on average. As if that weren't enough, Teva will also soon enough be on the hook for its share of a national settlement against opioid drug manufacturers.
Paying out millions or billions to aggrieved parties means it'll have even less money in the bank to work with when it comes to righting the ship, and it's another factor that should tell investors that the stock isn't a safe purchase whatsoever.
2. PetMed Express
PetMed Express (NASDAQ: PETS) is a stock with a safety narrative that's almost as compelling as Teva's. Demand for pet medications should be relatively constant, and so long as the company can profitably procure and deliver those medications to its subscribers every month, the bottom line will only grow.
The company doesn't have any debt, and the fact that the business pays a dividend supports the idea that its cash flows are stable. And pets won't stop needing healthcare anytime soon, which makes management's plan to diversify into providing telehealth for pets seem like a sound strategy.
The problem with this story is that it clashes with PetMed's performance over the last 10 years, which was anything but reliable. Its TTM revenue grew by only 12.7% in the period, reaching $262.3 million, and its TTM net income actually fell by 5.3%. That suggests the business doesn't have any kind of competitive advantage to guard its margins or its market share. Furthermore, its payout ratio is well in excess of 100%, which means that it's disbursing far more of its earnings as dividends than it can do sustainably.
The silver lining is that PetMed isn't in any danger of going bankrupt, so it still has the potential to accelerate its growth via diversification or another method. Nonetheless, there's something about its business model that's failing to drive the consistent, durable growth that investors look for in a safe investment -- and that's sufficient reason to give it a pass for now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And with control of a small handful of soon-to-be-launched generic competitors to blockbuster drugs like Humira, which earned its developer AbbVie more than $20.6 billion in 2021, Teva's near-term growth prospects are arguably quite favorable. Some stocks appear to be safe on the basis of the company's conservative business model or its large scale, only to leave investors exposed to brutal losses when financial results are worse than anticipated. Paying out millions or billions to aggrieved parties means it'll have even less money in the bank to work with when it comes to righting the ship, and it's another factor that should tell investors that the stock isn't a safe purchase whatsoever. | And with control of a small handful of soon-to-be-launched generic competitors to blockbuster drugs like Humira, which earned its developer AbbVie more than $20.6 billion in 2021, Teva's near-term growth prospects are arguably quite favorable. Teva Pharmaceutical Industries As a generic drugmaker, Teva Pharmaceutical Industries (NYSE: TEVA) has the trappings of a safe investment at first glance. PetMed Express PetMed Express (NASDAQ: PETS) is a stock with a safety narrative that's almost as compelling as Teva's. | And with control of a small handful of soon-to-be-launched generic competitors to blockbuster drugs like Humira, which earned its developer AbbVie more than $20.6 billion in 2021, Teva's near-term growth prospects are arguably quite favorable. Teva Pharmaceutical Industries As a generic drugmaker, Teva Pharmaceutical Industries (NYSE: TEVA) has the trappings of a safe investment at first glance. The next issue is that the company isn't profitable, so continuing to pay down debt will require dipping into its cash holdings, or growing its earnings promptly, which Wall Street analysts don't expect to happen next year on average. | And with control of a small handful of soon-to-be-launched generic competitors to blockbuster drugs like Humira, which earned its developer AbbVie more than $20.6 billion in 2021, Teva's near-term growth prospects are arguably quite favorable. And stagnation isn't safe for investors; its trailing-12-month (TTM) revenue shrunk by 30.7% in the same period five years ago. PetMed Express PetMed Express (NASDAQ: PETS) is a stock with a safety narrative that's almost as compelling as Teva's. |
22919.0 | 2022-12-29 00:00:00 UTC | Pfizer (PFE) Pentavalent Meningitis Jab BLA Gets FDA Acceptance | ABBV | https://www.nasdaq.com/articles/pfizer-pfe-pentavalent-meningitis-jab-bla-gets-fda-acceptance | nan | nan | Pfizer PFE announced that the FDA has accepted the biologics license application (BLA) seeking approval of its pentavalent meningococcal vaccine candidate (MenABCWY).
The BLA seeks approval of MenABCWY for adolescents and young adults, 10-25 years of age, for the prevention of meningococcal disease caused by five meningococcal serogroups that cause the majority of invasive meningococcal disease: serogroups A, B, C, W and Y.
The FDA has assigned a standard review to the BLA, with a decision expected in October 2023.
Pfizer’s stock is down 14% this year so far against an increase of 12.1% for the industry.
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The BLA application as based on data from a phase III study, which evaluated MenABCWY in healthy individuals 10 through 25 years of age. The study met all primary and secondary endpoints. In the study, the vaccine candidate was well tolerated with an acceptable safety profile. The protection provided by two doses of MenABCWY was non-inferior to licensed vaccines (two doses of Pfizer’s own Trumenba + one dose of GSK’s [GSK] Menveo) for serogroups A, B, C, W and Y.
The 5-in-1 meningitis vaccine candidate has the potential to simplify the meningococcal vaccination schedule by reducing the number of injections to be fully vaccinated compared to current FDA-approved meningitis vaccines as it has been designed to protect against the five serogroups with one combined product.
GSK is also developing two MenABCWY pentavalent (5-in-1) vaccines. The first generation is in late-stage development and the second generation is in an earlier stage.
MenABCWY is one of the five new molecular entities that Pfizer expects to launch in 2023. The other products include a respiratory syncytial virus (RSV) vaccine, ritlecitinib for alopecia, elranatamab for multiple myeloma and Abrilada, a biosimilar of AbbVie’s ABBV Humira.
A BLA seeking approval of Pfizer’s RSV vaccine is under FDA’s priority review, with a decision expected in May 2023. GSK’s RSV vaccine for older adults is also under FDA’s priority review, with a decision expected on May 3, 2023. Regulatory applications seeking approval of GSK’s RSV vaccine are under review in Japan and Europe as well.
Ritlecitinib is also under review in Europe and the United States, with an FDA decision expected in second-quarter 2023. The FDA approved Abrilada, Pfizer’s biosimilar of AbbVie’s Humira in November 2019 but the product will be launched in 2023 once AbbVie loses exclusivity for the branded product. Abrilada is the fifth FDA-approved biosimilar to Humira.
Zacks Rank & Stocks to Consider
Pfizer currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked large drugmaker is Sanofi SNY, which carries a Zacks Rank #2 (Buy)
Sanofi stock has declined 4.6% this year so far. Estimates for Sanofi’s 2022 earnings have gone up from $4.04 to $4.27 per share, while that for 2023 have increased from $4.22 to $4.31 per share over the past 60 days.
Sanofi beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter 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. | The other products include a respiratory syncytial virus (RSV) vaccine, ritlecitinib for alopecia, elranatamab for multiple myeloma and Abrilada, a biosimilar of AbbVie’s ABBV Humira. The FDA approved Abrilada, Pfizer’s biosimilar of AbbVie’s Humira in November 2019 but the product will be launched in 2023 once AbbVie loses exclusivity for the branded product. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. The other products include a respiratory syncytial virus (RSV) vaccine, ritlecitinib for alopecia, elranatamab for multiple myeloma and Abrilada, a biosimilar of AbbVie’s ABBV Humira. The FDA approved Abrilada, Pfizer’s biosimilar of AbbVie’s Humira in November 2019 but the product will be launched in 2023 once AbbVie loses exclusivity for the branded product. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. The other products include a respiratory syncytial virus (RSV) vaccine, ritlecitinib for alopecia, elranatamab for multiple myeloma and Abrilada, a biosimilar of AbbVie’s ABBV Humira. The FDA approved Abrilada, Pfizer’s biosimilar of AbbVie’s Humira in November 2019 but the product will be launched in 2023 once AbbVie loses exclusivity for the branded product. | The other products include a respiratory syncytial virus (RSV) vaccine, ritlecitinib for alopecia, elranatamab for multiple myeloma and Abrilada, a biosimilar of AbbVie’s ABBV Humira. The FDA approved Abrilada, Pfizer’s biosimilar of AbbVie’s Humira in November 2019 but the product will be launched in 2023 once AbbVie loses exclusivity for the branded product. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22920.0 | 2022-12-29 00:00:00 UTC | 3 High-Yield Dividend Stocks to Supercharge Your Passive Income Portfolio | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-supercharge-your-passive-income-portfolio | nan | nan | After more than a decade of near-zero interest rates, income investors are faced with a dilemma they haven't had to deal with for a long time. Right now, the average dividend-paying stock in the S&P 500 index offers a 1.7% yield. That's less than half the return you can receive risk-free on cash held in a savings account.
While there are plenty of stocks out there paying above-average yields, they won't help you retire early if they can't continue raising their payouts. All three of these high-yield dividend stocks have a long history of annual payout raises and an ability to raise their distributions without breaking their balance sheets. Here's why they could be excellent options for just about any income-seeking investor.
AbbVie
Shares of AbbVie (NYSE: ABBV) have risen more than 50% from a low point in October. Despite the big run-up, the pharmaceutical stock still offers an attractive 3.6% dividend yield.
Right now, AbbVie's dividend doesn't offer much more than a savings account. Patient investors who hold the stock could receive a great deal more in the years to come. AbbVie's payout more than doubled over the past five years, and it could climb even higher.
AbbVie's top-selling drug, an anti-inflammation injection called Humira, will finally lose ground to lower-cost biosimilar versions that are expected to launch in the U.S. in 2023. Humira's losses could be more than offset by newer drugs like Rinvoq for arthritis and Skyrizi for psoriasis. Both of these treatments launched in 2019, and they're already contributing around $8.4 billion in annualized sales.
Prescription drug sales generated a whopping $21.9 billion in free cash flow for AbbVie over the past year. The company needed just 45% of free cash flow to meet its dividend commitment, which means raising the payout in line with earnings growth shouldn't be an issue.
Medical Properties Trust
As its name implies, Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT). Its medical property portfolio includes 447 hospitals and other acute care facilities spread across 10 countries and four continents.
As a REIT, Medical Properties Trust can avoid paying income taxes as long as it distributes at least 90% of earnings to shareholders as a dividend. At the moment, this REIT's dividend offers a mouthwatering 10.2% yield.
Even the COVID-19 pandemic couldn't stop this company from raising its payout year after year. Its payout has steadily climbed by 45% over the past decade, and its best years are most likely ahead of us.
Cash flows from Medical Properties Trust are highly reliable because it doesn't actually run its hospitals. Instead, it simply collects rent from hospital operators that it locks into long-term net leases that leave operators responsible for all the variable costs of building ownership.
Verizon
After 16 consecutive annual dividend increases, Verizon (NYSE: VZ) is the most reliable dividend growth stock on this list. The telecommunications stock has fallen around 29% in 2022, and now it offers a juicy 6.6% yield.
The telecom industry's days of explosive growth are in our rearview, but the next stage is one that long-term investors want to be a part of. After spending billions of dollars to upgrade its 5G network, Verizon is one of just a handful of companies that can offer Americans a mobile internet service that they can't live without.
The macroeconomy might be headed for a slowdown, but you wouldn't know it by looking at Verizon's results. Wireless service revenue rose 11% year over year to $15.5 billion in the third quarter.
In the first nine months of 2022, Verizon used around 65% of the free cash flow its operations generated to meet its dividend obligation. Investors will get nervous if this payout ratio rises any higher. With an unbeatable position as a leading wireless service provider, though, steady movement in the right direction seems likely.
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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 top-selling drug, an anti-inflammation injection called Humira, will finally lose ground to lower-cost biosimilar versions that are expected to launch in the U.S. in 2023. AbbVie Shares of AbbVie (NYSE: ABBV) have risen more than 50% from a low point in October. Right now, AbbVie's dividend doesn't offer much more than a savings account. | Prescription drug sales generated a whopping $21.9 billion in free cash flow for AbbVie over the past year. AbbVie Shares of AbbVie (NYSE: ABBV) have risen more than 50% from a low point in October. Right now, AbbVie's dividend doesn't offer much more than a savings account. | AbbVie Shares of AbbVie (NYSE: ABBV) have risen more than 50% from a low point in October. Right now, AbbVie's dividend doesn't offer much more than a savings account. AbbVie's payout more than doubled over the past five years, and it could climb even higher. | Right now, AbbVie's dividend doesn't offer much more than a savings account. AbbVie Shares of AbbVie (NYSE: ABBV) have risen more than 50% from a low point in October. AbbVie's payout more than doubled over the past five years, and it could climb even higher. |
22921.0 | 2022-12-28 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, PepsiCo, Oracle, HSBC Holdings and The Progressive | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-pepsico-oracle-hsbc-holdings-and-the-progressive | nan | nan | For Immediate Release
Chicago, IL – December 28, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, PepsiCo, Inc. PEP, Oracle Corp. ORCL, HSBC Holdings plc HSBC and The Progressive Corp. PGR.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for AbbVie, PepsiCo and Oracle
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and Oracle Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.4% vs. +13.0%) reflecting the company's robust drug pipeline. The company has successfully expanded labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval of new indications. It has several early/mid-stage candidates that have blockbuster potential. Allergan's acquisition has diversified AbbVie's revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales. Slowing consumer demand due to economic pressures is affecting aesthetics franchise sales.
(You can read the full research report on AbbVie here >>>)
Shares of PepsiCo have gained +6.9% over the past year, modestly lagging Coke's +9.5% gain, but handily outperforming the broader market's -21.2% decline. The company's revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the third quarter. This marked the 17th straight quarter of sales beat.
PepsiCo benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.
However, PepsiCo witnessed margin pressures in the third quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of Oracle have declined -8.8% over the past year against the Zacks Computer - Software industry's decline of -31.0%. The company is spending high on product enhancements, especially toward the cloud platform, and is likely to limit margin expansion. The Zacks analyst expects fiscal 2023 non-GAAP operating expenses to jump 18.3% over fiscal 2022.
Nevertheless, Oracle's second-quarter fiscal 2023 results benefitted from strength in infrastructure and applications cloud businesses. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.
Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line. Oracle expects total cloud growth, including Cerner, to grow from 43% to 47% in USD for the next quarter. Partnerships with Accenture and Microsoft are helping Oracle win new clientele.
(You can read the full research report on Oracle here >>>)
Other noteworthy reports we are featuring today include HSBC Holdings plc and The Progressive Corp..
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.4% vs. +13.0%) reflecting the company's robust drug pipeline. Stocks recently featured in the blog include: AbbVie Inc. ABBV, PepsiCo, Inc. Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for AbbVie, PepsiCo and Oracle The Zacks Research Daily presents the best research output of our analyst team. | Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for AbbVie, PepsiCo and Oracle The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and Oracle Corp. Click to get this free report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for AbbVie, PepsiCo and Oracle The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and Oracle Corp. Click to get this free report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and Oracle Corp. Stocks recently featured in the blog include: AbbVie Inc. ABBV, PepsiCo, Inc. Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for AbbVie, PepsiCo and Oracle The Zacks Research Daily presents the best research output of our analyst team. |
22922.0 | 2022-12-27 00:00:00 UTC | AbbVie (ABBV) Stock Moves -0.07%: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-moves-0.07%3A-what-you-should-know | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $162.99, marking a -0.07% move from the previous day. This change was narrower than the S&P 500's 0.41% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 6.67%.
Coming into today, shares of the drugmaker had gained 2.95% in the past month. In that same time, the Medical sector gained 0.95%, while the S&P 500 lost 4.4%.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.67, up 10.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.38 billion, up 3.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.86 per share and revenue of $58.31 billion, which would represent changes of +9.13% and +3.76%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 11.77. Its industry sports an average Forward P/E of 15.07, 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 4.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.15 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $162.99, marking a -0.07% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, AbbVie (ABBV) closed at $162.99, marking a -0.07% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. | In the latest trading session, AbbVie (ABBV) closed at $162.99, marking a -0.07% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | In the latest trading session, AbbVie (ABBV) closed at $162.99, marking a -0.07% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. |
22923.0 | 2022-12-27 00:00:00 UTC | 3 Dividend Kings Nicely Suited for Income Investors | ABBV | https://www.nasdaq.com/articles/3-dividend-kings-nicely-suited-for-income-investors | nan | nan | Few things delight investors more than consistent, dependable dividend payouts.
After all, who doesn't enjoy being compensated for their investments?
Dividends were a valuable commodity for investors in 2022, helping to cushion the impact of drawdowns in other positions.
Dividend Aristocrats, companies that have increased their dividend payouts for at least 25 consecutive years, are popular targets among income investors.
However, a step above is the elite Dividend Kings group, which includes companies that have increased dividend payouts for at least 50 consecutive years.
Three Dividend Kings – Sysco Corp. SYY, AbbVie ABBV, and PepsiCo Inc. PEP – could all be considerations for investors looking to reap a reliable income stream.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each one.
Sysco Corp.
Sysco markets and distributes a range of food and related products primarily to the food service or food-away-from-home industry.
Sysco’s annual dividend currently yields a solid 2.5%, modestly below its Zacks Consumer Staples sector average. Still, the company’s 8.3% five-year annualized dividend growth rate picks up the slack in a big way.
Image Source: Zacks Investment Research
In addition, it’s hard to ignore SYY’s growth profile; earnings are forecasted to soar 28% in its current fiscal year (FY23) and a further 13% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 11.5% in FY23 and 4.2% in FY24.
Image Source: Zacks Investment Research
AbbVie
AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health.
AbbVie’s 3.5% annual dividend yield is well above its Zacks Medical Sector average of 1.4%. Further, ABBV carries a sustainable 41% payout ratio paired with an impressive 14% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The company also generates solid cash; ABBV generated roughly $7.4 billion in free cash flow in its latest quarter, representing a 52% sequential uptick.
Image Source: Zacks Investment Research
PepsiCo Inc.
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Currently, the company sports a favorable Zacks Rank #2 (Buy).
PEP’s annual dividend currently yields 2.5%, a few ticks below its Zacks Consumer Staples sector average of 2.7%. Like SYY, PepsiCo’s 6.5% five-year annualized dividend growth rate helps bridge the gap.
Image Source: Zacks Investment Research
PepsiCo has been on an impressive earnings streak as of late, exceeding earnings and revenue estimates in each of its last three quarters. Just in its latest release, the company registered a 6.5% EPS beat and reported revenue 5.3% above expectations.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Dividends cushion the blow of losses in other positions, provide an additional way to earn a return on investment, and allow for maximum returns through dividend reinvestment.
Dividend Aristocrats are common targets of income-focused investors, as these companies have successfully upped their dividend payouts for a minimum of 25 consecutive years.
However, the Elite Dividend Kings group sits right above, which consists of companies increasing their payouts uninterrupted for a minimum of 50 consecutive years.
Clearly, Dividend Kings, including Sysco Corp. SYY, AbbVie ABBV, and PepsiCo Inc. PEP, have all shown an unparalleled commitment to shareholders throughout their history.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
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PepsiCo, Inc. (PEP) : 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. | Further, ABBV carries a sustainable 41% payout ratio paired with an impressive 14% five-year annualized dividend growth rate. Three Dividend Kings – Sysco Corp. SYY, AbbVie ABBV, and PepsiCo Inc. Image Source: Zacks Investment Research AbbVie 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 AbbVie 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 The company also generates solid cash; ABBV generated roughly $7.4 billion in free cash flow in its latest quarter, representing a 52% sequential uptick. Click to get this free report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Sysco Corporation (SYY) : 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 PepsiCo, Inc. (PEP) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Three Dividend Kings – Sysco Corp. SYY, AbbVie ABBV, and PepsiCo Inc. Image Source: Zacks Investment Research AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | Three Dividend Kings – Sysco Corp. SYY, AbbVie ABBV, and PepsiCo Inc. Clearly, Dividend Kings, including Sysco Corp. SYY, AbbVie ABBV, and PepsiCo Inc. Image Source: Zacks Investment Research AbbVie AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. |
22924.0 | 2022-12-27 00:00:00 UTC | Top Analyst Reports for AbbVie, PepsiCo & Oracle | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-abbvie-pepsico-oracle | nan | nan | Tuesday, December 27, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and Oracle Corporation (ORCL). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.4% vs. +13.0%) reflecting the company's robust drug pipeline. The company has succesfully expanded labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressures is affecting aesthetics franchise sales.
(You can read the full research report on AbbVie here >>>)
Shares of PepsiCo have gained +6.9% over the past year, modestly lagging Coke's +9.5% gain, but handily outperforming the broader market's -21.2% decline. The company’s revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the third quarter. This marked the 17th straight quarter of sales beat.
PepsiCo benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.
However, PepsiCo witnessed margin pressures in the third quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of Oracle have declined -8.8% over the past year against the Zacks Computer - Software industry’s decline of -31.0%. The company is spending high on product enhancements, especially toward the cloud platform, is likely to limit margin expansion. The Zacks analyst expect fiscal 2023 non-GAAP operating expenses to jump 18.3% over fiscal 2022.
Nevertheless, Oracle’s second-quarter fiscal 2023 results benefitted from strength in infrastructure and applications cloud businesses. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.
Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line. Oracle expects total cloud growth, including Cerner, to grow from 43% to 47% in USD for the next quarter. Partnerships with Accenture and Microsoft is helping Oracle win new clientele.
(You can read the full research report on Oracle here >>>)
Other noteworthy reports we are featuring today include Danaher Corporation (DHR), HSBC Holdings plc (HSBC) and The Progressive Corporation (PGR).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
PepsiCo's (PEP) Business Investments to Bolster Performance
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Featured Reports
Life Sciences Unit Aids Danaher (DHR) Amid Supply Chain Woes
The Zacks analyst is encouraged by strength in the Life Sciences unit due to robust activity in the bioprocessing business. However, supply chain woes are concerning for the company.
Expansion Efforts, Restructuring to Aid HSBC Holdings (HSBC)
Per the Zacks analyst, HSBC Holdings' plan to expand in Asia will strengthen its performance and increase market share. Its initiatives to improve efficiency through restructuring will aid profits.
Progressive (PGR) Gains on Premiums, Cat Loss Woes Linger
Per the Zacks analyst, Progressive is set to grow on solid Agency and Direct business, which will drive improvement in net premiums. However, exposure to catastrophe loss remains a headwind.
McKesson's (MCK) Deals Buoys Optimism Amid Sluggish Market
Per the Zacks analyst, McKesson has been pursuing deals and acquisitions to drive growth. It is a dominant player in the Distribution market which is facing weaker generic pharmaceutical pricing trend
Corning (GLW) Rides on Fiber Densification, Faster 5G Rollout
Per the Zacks analyst, Corning is poised to gain from tailwinds like 5G, broadband and cloud computing within the Optical segment, while multiple factors will likely drive growth in the fiber business
Investments Aid Entergy (ETR), Storm Restoration Costs Woe
Per the Zacks analyst, Entergy's systematic investments are expected to boost its grid upgrades and thereby, customer reliability. Yet storm restoration costs, if not recovered, might hurt earnings.
Solid Contract Sales Aid Marriott Vacations (VAC), Costs High
Per the Zacks analyst, Marriott Vacations is likely to benefit from solid contract sales, digital initiatives and vacation ownership business. However, inflationary woes stay.
New Upgrades
Pro-Investor Steps & Addressable Market Boost Gartner (IT)
Per the Zacks analyst, Gartner's endeavor to reward its shareholders in the form of share repurchases is appreciable. Also, large and diverse addressable market is a tailwind.
A Strong Product Suite Continues to Aid Merit Medical (MMSI)
The Zacks analyst is upbeat about Merit Medical's robust portfolio, including radio and electrophysiology products. Potential in its Cardiovascular unit further raises optimism.
Growing International Activity to Aid Oceaneering (OII)
The Zacks analyst believes that the outlook for Oceaneering International's 'Subsea Robotics' unit is particularly impressive due to growing activity outside North America.
New Downgrades
Low Liquidity & Margin Pressure Affect ManpowerGroup (MAN)
Per the Zacks analyst, decreasing current ratio is not desirable as it indicates that ManpowerGroup may have issues meeting its short-term debt. Also, staffing margin pressure is a headwind.
Rising Inflation & Sluggish Online Sales Hurt Amazon (AMZN)
Per the Zacks analyst, Amazon is suffering from rising inflationary pressure and slowdown in online shopping activities.
Exposure to Digital Assets, Costs Ail Signature Bank (SBNY)
Per the Zacks analyst, falling token prices and the FTX-led chaos in the cryptocurrency market is expected to keep hurting Signature Bank in the near-term. Higher costs are another major headwind.
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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 shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.4% vs. +13.0%) reflecting the company's robust drug pipeline. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth PepsiCo's (PEP) Business Investments to Bolster Performance Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Featured Reports Life Sciences Unit Aids Danaher (DHR) Amid Supply Chain Woes The Zacks analyst is encouraged by strength in the Life Sciences unit due to robust activity in the bioprocessing business. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and Oracle Corporation (ORCL). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth PepsiCo's (PEP) Business Investments to Bolster Performance Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Featured Reports Life Sciences Unit Aids Danaher (DHR) Amid Supply Chain Woes The Zacks analyst is encouraged by strength in the Life Sciences unit due to robust activity in the bioprocessing business. Click to get this free report Danaher Corporation (DHR) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and Oracle Corporation (ORCL). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth PepsiCo's (PEP) Business Investments to Bolster Performance Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Featured Reports Life Sciences Unit Aids Danaher (DHR) Amid Supply Chain Woes The Zacks analyst is encouraged by strength in the Life Sciences unit due to robust activity in the bioprocessing business. Click to get this free report Danaher Corporation (DHR) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and Oracle Corporation (ORCL). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth PepsiCo's (PEP) Business Investments to Bolster Performance Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Featured Reports Life Sciences Unit Aids Danaher (DHR) Amid Supply Chain Woes The Zacks analyst is encouraged by strength in the Life Sciences unit due to robust activity in the bioprocessing business. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and Oracle Corporation (ORCL). AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.4% vs. +13.0%) reflecting the company's robust drug pipeline. |
22925.0 | 2022-12-24 00:00:00 UTC | 2 Healthcare Stocks You Can Buy and Hold for the Next Decade | ABBV | https://www.nasdaq.com/articles/2-healthcare-stocks-you-can-buy-and-hold-for-the-next-decade-6 | nan | nan | It's a scary time to be an investor, with the markets languishing and the threat of additional interest rate hikes next year weighing on stock prices. In this environment, it is important to control risk and one way to do that is by investing in quality healthcare companies with consistent, sustainable dividends.
Cardinal Health (NYSE: CAH) and AbbVie (NYSE: ABBV) offer dependable revenue growth with above-average dividends. These are the type of value companies investors turn to in tough times and they are likely to be among the first stocks to bounce back when the economy improves.
Cardinal is in the middle of everything
Cardinal Health's stock is up more than 60% over the past year. The drug and laboratory products distributor operates in two segments: pharmaceutical and medical. In the first quarter of fiscal 2023, it reported revenue of $49.6 billion, up 13% year over year, with income from operations of $137 million, down 67% over the same period in 2022, and earnings per share (EPS) of $0.40, down 57% year over year. The pharmaceutical segment is the one fueling growth, bringing in $46 billion of the company's first-quarter revenue, up 15% year over year. Medical saw revenue fall by 9% to $3.8 billion, with lower product and distribution sales.
The company's bottom line was hurt by supply chain issues and inflation because many of its contracts are long-term, limiting how fast the company can raise prices. New CEO Jason Hollar, however, is focusing on raising prices.
Cardinal is also looking at improving its medical segment sales. In November, the company, in a collaborative effort with Medically Home, launched a supply chain network and last-mile fulfillment solution Velocare. The point is to deliver hospital-level care at home for patients, bringing critical products and services to patients within an hour or two, saving money, and bringing more efficient care.
What I like about Cardinal is it doesn't have the expenses that pharmaceutical and medical device makers do in developing and making drugs and medical devices. It carves out its own profits from being the middleman. With inflation rising so fast this past year that put a short-term strain on the company, but it is built for long-term success with less risk than most healthcare companies.
Cardinal also offers an above-average quarterly dividend, which it raised by 1% last year to $0.4957 per share, the 36th consecutive year the company has increased its dividend. Its current yield is roughly 2.5%.
CAH Revenue (Annual) data by YCharts
AbbVie is prepared for its next phase
AbbVie has proven its doubters wrong for so long that they're even joining the shareholder ranks. Over the past year, the pharmaceutical stock is up more than 20%.
The looming patent cliff for Humira has made AbbVie a better company. The immunology blockbuster's sales will likely decline beginning in 2023 when it faces biosimilar competition in the U.S. for the first time. CEO Richard Gonzalez said he expects sales for Humira to drop 45% by 2024. The anti-tumor necrosis factor therapy has long been the standard of care for inflammatory diseases such as rheumatoid arthritis and Crohn's disease.
However, AbbVie already has two drugs that are lining up to replace the $20 billion in revenue that Humira earned last year: Skyrizi and Rinvoq. Just as Humira did, the two biologics are steadily adding approvals. Skyrizi gained its third Food and Drug Administration (FDA) approval this summer, to treat moderate to severe Crohn's disease, and it also picked up that approval this fall in Europe. Rinvoq already has approvals to treat active ankylosing spondylitis (a type of arthritis along the spine), Crohn's disease, ulcerative colitis, atopic dermatitis, rheumatoid arthritis, and psoriatic arthritis.
AbbVie said last year that the two drugs should deliver $15 billion in annual revenue by 2025. They're well on the way as they combined to bring in $5.3 billion in the first nine months of this year, with Skyrizi's sales up 75.6% year over year and Rinvoq's up 54.5% in that same period.
Thanks in no small part to a big research and development budget fueled by Humira profits, the company has a huge pipeline, particularly in oncology, with 26 molecules currently in trials. Another drug with huge potential is Vraylar, which earned its fourth indication this month by the FDA, as an add-on therapy for major depressive disorder. An estimated 21 million adults in the United States had at least one major depressive episode in 2020, according to data from the Substance Abuse and Mental Health Services Administration. The drug was already approved to treat schizophrenia, manic or mixed episodes from bipolar I disorder, and depressive episodes associated with bipolar I disorder.
The company is raising its dividend by 5% next quarter to $1.48 per share, offering a yield of around 3.7%, more than double the average S&P 500 dividend of 1.82%. AbbVie, because it spent years as part of Abbott Laboratories, is a Dividend King that is on schedule to raise its dividend for the 51st straight year. The one downside to AbbVie stock is the pain of knowing you could have gotten a lower share price a few months ago, but that annoyance ends when you consider the company's potential for growth.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The one downside to AbbVie stock is the pain of knowing you could have gotten a lower share price a few months ago, but that annoyance ends when you consider the company's potential for growth. Cardinal Health (NYSE: CAH) and AbbVie (NYSE: ABBV) offer dependable revenue growth with above-average dividends. CAH Revenue (Annual) data by YCharts AbbVie is prepared for its next phase AbbVie has proven its doubters wrong for so long that they're even joining the shareholder ranks. | Cardinal Health (NYSE: CAH) and AbbVie (NYSE: ABBV) offer dependable revenue growth with above-average dividends. CAH Revenue (Annual) data by YCharts AbbVie is prepared for its next phase AbbVie has proven its doubters wrong for so long that they're even joining the shareholder ranks. The looming patent cliff for Humira has made AbbVie a better company. | Cardinal Health (NYSE: CAH) and AbbVie (NYSE: ABBV) offer dependable revenue growth with above-average dividends. CAH Revenue (Annual) data by YCharts AbbVie is prepared for its next phase AbbVie has proven its doubters wrong for so long that they're even joining the shareholder ranks. The looming patent cliff for Humira has made AbbVie a better company. | Cardinal Health (NYSE: CAH) and AbbVie (NYSE: ABBV) offer dependable revenue growth with above-average dividends. CAH Revenue (Annual) data by YCharts AbbVie is prepared for its next phase AbbVie has proven its doubters wrong for so long that they're even joining the shareholder ranks. The looming patent cliff for Humira has made AbbVie a better company. |
22926.0 | 2022-12-23 00:00:00 UTC | Roche's (RHHBY) Lunsumio Gets FDA Nod for Follicular Lymphoma | ABBV | https://www.nasdaq.com/articles/roches-rhhby-lunsumio-gets-fda-nod-for-follicular-lymphoma | nan | nan | Roche RHHBY announced that the FDA approved intravenously-administered Lunsumio (mosunetuzumab) for the treatment of adult patients with relapsed or refractory (R/R) follicular lymphoma (FL) who have been treated with two or more lines of systemic therapy. Lunsumio has been approved by the regulatory agency under the accelerated pathway.
Following approval, Lunsumio is the first CD20xCD3 T cell engaging bispecific antibody approved in the United States for the treatment of FL. The medication was approved for a similar indication in the European Union earlier this June.
The FDA’s approval is based on positive data from the phase II GO29781 study, which evaluated the safety and efficacy of Lunsumio in patients with heavily pre-treated R/R FL. Data from the study showed high and durable response rates in study participants following treatment with Lunsumio. An objective response was observed in 80% of study participants who received Lunsumio, with 60% of participants achieving complete remission.
An off-the-shelf cancer immunotherapy, Lunsumio will help treat patients who do not respond to multiple lines of treatment and help them achieve disease remission. A commercial launch for the therapy is expected in the coming weeks.
Shares of Roche have declined 23.5% this year against the industry’s 12.2% increase.
Image Source: Zacks Investment Research
FL is the most common slow-growing form of non-Hodgkin’s lymphoma. Per management estimates, more than 100,000 people across the globe are diagnosed with FL. There are very limited treatment options for FL patients, especially those who relapse.
Lunsumio was developed by Genentech, a member of the Roche Group. The antibody is also being evaluated in late-stage studies for treating early-line NHL.
Lunsumio has been developed by Roche in collaboration with Biogen BIIB. Earlier this February, Biogen exercised an option to participate in the development and commercialization of Lunsumio. Following the exercise of this option, Biogen will share profits and losses of Lunsumio in the United States in the low to mid-30% range and also be eligible to receive royalties in the low-single-digit range in ex-U.S. markets. In return for receiving this right, Biogen made a one-time payment of $30 million to Roche and also paid a portion of the development expenses incurred by Roche on Lunsumio in 2021.
Like Roche, many companies like AbbVie ABBV and Regeneron REGN are also developing their respective CD20xCD3 bispecific antibodies targeting NHL indications.
AbbVie is developing epcoritamab, its own CD20xCD3 T cell engaging bispecific antibody, in collaboration with Genmab for treating adult patients with R/R diffuse large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. Last month, Genmab and Roche announced that the FDA accepted the company’s regulatory filing seeking approval for epcoritamab in R/R LBCL. A decision is expected before May 2023-end.
Regeneron is currently evaluating its own CD20xCD3 antibody odronextamab in patients with FL indication. Earlier this month, Regeneron announced topline data from a pivotal phase II study, which evaluated odronextamab in heavily pre-treated R/R FL patients. Data from the study showed an 82% response rate in patients, including 75% of participants achieving a complete response. Based on this data, Regeneron will make a regulatory submission to the FDA next year.
Roche Holding AG Price
Roche Holding AG price | Roche Holding AG Quote
Zacks Rank & Stocks to Consider
Roche currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names "Single Best Pick to Double"
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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 is developing epcoritamab, its own CD20xCD3 T cell engaging bispecific antibody, in collaboration with Genmab for treating adult patients with R/R diffuse large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. Like Roche, many companies like AbbVie ABBV and Regeneron REGN are also developing their respective CD20xCD3 bispecific antibodies targeting NHL indications. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Biogen Inc. (BIIB) : Free Stock Analysis Report Roche Holding AG (RHHBY) : 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 Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Biogen Inc. (BIIB) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Like Roche, many companies like AbbVie ABBV and Regeneron REGN are also developing their respective CD20xCD3 bispecific antibodies targeting NHL indications. AbbVie is developing epcoritamab, its own CD20xCD3 T cell engaging bispecific antibody, in collaboration with Genmab for treating adult patients with R/R diffuse large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. | Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Biogen Inc. (BIIB) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Like Roche, many companies like AbbVie ABBV and Regeneron REGN are also developing their respective CD20xCD3 bispecific antibodies targeting NHL indications. AbbVie is developing epcoritamab, its own CD20xCD3 T cell engaging bispecific antibody, in collaboration with Genmab for treating adult patients with R/R diffuse large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. | Like Roche, many companies like AbbVie ABBV and Regeneron REGN are also developing their respective CD20xCD3 bispecific antibodies targeting NHL indications. AbbVie is developing epcoritamab, its own CD20xCD3 T cell engaging bispecific antibody, in collaboration with Genmab for treating adult patients with R/R diffuse large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report Biogen Inc. (BIIB) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
22927.0 | 2022-12-23 00:00:00 UTC | If You Invested $25,000 in AbbVie In 2020, This Is How Much You Would Have Today | ABBV | https://www.nasdaq.com/articles/if-you-invested-%2425000-in-abbvie-in-2020-this-is-how-much-you-would-have-today | nan | nan | AbbVie (NYSE: ABBV) is a top healthcare company that's worth nearly $290 billion. It has a diverse business that generates revenue from many different therapeutic areas. Its bread and butter is the immunology drug Humira, which has already brought in a whopping $15.7 billion in revenue through the first nine months of the year.
But Humira has been both its greatest product and the source of the company's greatest worry as investors have become concerned about its patent cliff and a loss in exclusivity that will begin to chip away at its market share as early as next year. So to diversify its business and to help offset some of that risk, AbbVie acquired Botox maker Allergan in 2020 for a whopping $63 billion. Here's how you would have done if you had bought the stock after that deal closed.
AbbVie closed its acquisition of Allergan on May 8, 2020
It has been more than two years since AbbVie completed what it called a "transformative acquisition" of the Botox maker in 2020. The deal diversified AbbVie, giving it a new segment, aesthetics, which could help add significant growth opportunities. At the time the deal was closed, shares of AbbVie closed at $83.96. At that price, investing $25,000 into the healthcare business would have enabled you to purchase approximately 298 shares.
The stock has gone on to soar since then, with shares of AbbVie now trading around $160, nearly double that value. That would make that $25,000 investment now worth around $48,000. And that doesn't factor in the company's dividend, which yields a generous 3.7%. When you factor in that revenue, the investment is worth nearly $54,000.
Why have investors been so bullish on AbbVie?
Over the past few years, AbbVie's business has experienced significant growth. And along with a sharp increase in revenue, which, in part, has been aided by the Allergan acquisition, the company's bottom line has also improved.
Data by YCharts.
As profits grow, a company's valuation will also go up, assuming investors pay similar multiples as they have in the past. In AbbVie's case, investors are now paying more of a premium for the business:
Data by YCharts.
Investors now see more value in the company, given its added diversification. Plus, new immunology drugs Skyrizi and Rinvoq reduce some of the risks for investors, as they have generated a combined $5.3 billion in sales this year and management expects that together, their peak revenue will be higher than Humira's. By comparison, the company's revenue from Botox-related products during the same period has totaled just under $4 billion.
With some comfort in knowing that AbbVie's future is a bit safer than it may have appeared to be just a few years earlier, investors have been willing to pay a higher premium for the business.
Is AbbVie still a buy today?
Shares of AbbVie are trading at 14 times their future earnings (based on analyst expectations). That's below the healthcare average of 17, which suggests that AbbVie could be a good buy even with the strong gains it has amassed over the past couple of years.
Not only does the healthcare stock make for a good growth investment, but its 3.7% yield is well above the S&P 500 average of 1.7%, and it can be an excellent source of recurring revenue for your portfolio. All in all, AbbVie is a solid long-term investment you can buy and hold for years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With some comfort in knowing that AbbVie's future is a bit safer than it may have appeared to be just a few years earlier, investors have been willing to pay a higher premium for the business. AbbVie (NYSE: ABBV) is a top healthcare company that's worth nearly $290 billion. So to diversify its business and to help offset some of that risk, AbbVie acquired Botox maker Allergan in 2020 for a whopping $63 billion. | So to diversify its business and to help offset some of that risk, AbbVie acquired Botox maker Allergan in 2020 for a whopping $63 billion. At the time the deal was closed, shares of AbbVie closed at $83.96. AbbVie (NYSE: ABBV) is a top healthcare company that's worth nearly $290 billion. | AbbVie closed its acquisition of Allergan on May 8, 2020 It has been more than two years since AbbVie completed what it called a "transformative acquisition" of the Botox maker in 2020. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | AbbVie (NYSE: ABBV) is a top healthcare company that's worth nearly $290 billion. So to diversify its business and to help offset some of that risk, AbbVie acquired Botox maker Allergan in 2020 for a whopping $63 billion. AbbVie closed its acquisition of Allergan on May 8, 2020 It has been more than two years since AbbVie completed what it called a "transformative acquisition" of the Botox maker in 2020. |
22928.0 | 2022-12-21 00:00:00 UTC | Here's Why the Bear Market Could End in 2023 | ABBV | https://www.nasdaq.com/articles/heres-why-the-bear-market-could-end-in-2023 | nan | nan | The S&P 500 has dropped more than 19% this year, and many growth stocks have suffered even more severe declines along the way. Inflation and concerns about the economy have led investors to dump investments, even quality ones, out of fear that things will get worse.
But as bad as things are and with inflation still a problem, there is a possibility that the bear market could come to an end next year, and a bull run could begin. Here's a look at why that might happen and the types of stocks you should consider investing in right now.
Inflation is slowing down
According to the latest data, November's inflation rate was 7.1%. For multiple months, the inflation rate has been declining, and although it's still high compared to a few years ago, it's a positive sign that the government's attempts to slow it down through interest rate increases may be working.
US Inflation Rate data by YCharts
There's still a long way to go to get back down to around 2%, but the good news is that at the very least, things don't appear to be getting worse. And a slowing inflation rate isn't the only reason to be optimistic about next year.
If there's a recession, it could be a mild one
By and large, analysts are expecting a recession next year as supply chain issues and inflation could make a slowdown in the economy inevitable. And while that may sound concerning, that doesn't mean it will be a prolonged one. Analysts from JPMorgan Chase are projecting a "mild" recession next year, suggesting that it may not persist for several quarters. And if that's the case, it's possible that before the end of the year, a downturn could be over, and at the very least, there should be some growing optimism that things are improving.
And as investors know, it's guidance and expectations that often drive share prices. A more promising outlook for the economy before the end of the year would suggest that a recovery should be well underway in the stock market, and that's why a bull market could be in its early stages by then.
Now could be a prime time to buy stocks
Many stocks have incurred significant declines this year and may be poised for strong rallies once optimism returns to the markets. Shares of tech titan Alphabet (NASDAQ: GOOG), for instance, have crashed 37% since the start of the year because companies have been cutting back on advertising in anticipation of a likely recession. But as those fears subside, Alphabet, owner of Google and YouTube, which depend on advertising revenue for much of their growth, should benefit from more bullishness. That's why it could be a stock that has lots of potential upside next year.
But investors don't need to just look at stocks that are down big this year; there are also quality healthcare stocks to buy, including AbbVie (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX), that are trading at earnings multiples of 21 and 24, respectively. The industry average is 22 and both stocks could warrant higher premiums given their potential to generate stronger earnings in the future.
In AbbVie's case, the drugmaker and Botox owner still has more upside given its diverse operations and that the healthcare industry is still in the process of returning to normal. Vertex, meanwhile, is a dominant force in treating cystic fibrosis. It also has a gene-editing treatment, exa-cel, that if regulators approve next year, could lead to incredible returns in the future.
Even if you're concerned about the state of the stock market, now may be an optimal time to invest because there may be a more bullish outlook on the economy in 2023 that leads to a stronger performance by many growth stocks. Buying stocks before that happens could result in some excellent gains for investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In AbbVie's case, the drugmaker and Botox owner still has more upside given its diverse operations and that the healthcare industry is still in the process of returning to normal. But investors don't need to just look at stocks that are down big this year; there are also quality healthcare stocks to buy, including AbbVie (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX), that are trading at earnings multiples of 21 and 24, respectively. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | But investors don't need to just look at stocks that are down big this year; there are also quality healthcare stocks to buy, including AbbVie (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX), that are trading at earnings multiples of 21 and 24, respectively. In AbbVie's case, the drugmaker and Botox owner still has more upside given its diverse operations and that the healthcare industry is still in the process of returning to normal. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | But investors don't need to just look at stocks that are down big this year; there are also quality healthcare stocks to buy, including AbbVie (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX), that are trading at earnings multiples of 21 and 24, respectively. In AbbVie's case, the drugmaker and Botox owner still has more upside given its diverse operations and that the healthcare industry is still in the process of returning to normal. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! But investors don't need to just look at stocks that are down big this year; there are also quality healthcare stocks to buy, including AbbVie (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX), that are trading at earnings multiples of 21 and 24, respectively. In AbbVie's case, the drugmaker and Botox owner still has more upside given its diverse operations and that the healthcare industry is still in the process of returning to normal. |
22929.0 | 2022-12-21 00:00:00 UTC | This Unstoppable Growth Stock Is Nearing a Once-In-a-Decade Buying Opportunity | ABBV | https://www.nasdaq.com/articles/this-unstoppable-growth-stock-is-nearing-a-once-in-a-decade-buying-opportunity | nan | nan | Even the most intrepid growth stocks experience doldrums, and such periods can be a great time to start an investment. If you can predict slower patches in advance, you'll be positioned even better, and that's why it may be worth considering an investment in AbbVie (NYSE: ABBV) stock in the coming months.
The pharmaceutical company's stock is up by more than 25% this year despite the market's 17% drop, but there's a good chance that 2023 will be a difficult one for the company and its investors. After that could lead to an excellent buying opportunity. Here's why.
What's the opportunity?
AbbVie is about to be tested. After raking in billions of sales from its psoriatic arthritis drug Humira, AbbVie is now seeing generic competitors start to devour its market share internationally. In 2023, the floodgates will open and generics will start to gobble up the U.S. market too. That's a big problem as Humira accounted for more than $5.5 billion of the company's $14.8 billion in revenue during the third quarter.
Management prepared for that eventuality for years by developing and launching immunology medicines Rinvoq and Skyrizi. In theory, these two medications should be able one day to bring in even more revenue than Humira did while targeting the same group of indications. And now the rubber is about to meet the road.
If AbbVie's leaders are correct about Humira's replacements leading to top line growth after a brief period of stagnation through 2025, people who invest in the business today or within the next year should harvest a considerable return for taking on the risk. That return will take the form of both share price appreciation as well as more hikes to the dividend, which already has a forward yield above 3.6%.
The first benchmark that AbbVie hopes to reach is a combined $15 billion in annual revenue from sales of Skyrizi and Rinvoq in 2025. Any revenue above that target will indicate that the plan is going even better than expected. The more distant goal is to top Humira's peak revenue, which was nearly $20.7 billion in 2021.
On the other hand, if Humira's decline is never fully compensated for by the latter half of the decade, AbbVie's share price will likely end up suffering considerably. The company could undergo at least a few years of falling revenue with little in the way of silver linings for shareholders. Even a dividend cut might be on the table if Skyrizi and Rinvoq aren't able to scale their penetration of the market according to schedule.
Risks are decreasing, but they aren't negligible
Per its latest earnings report, AbbVie doesn't have a long way to go before its replacements can fill Humira's shoes. Skyrizi brought in nearly $1.4 billion in the third quarter, whereas Rinvoq sales were $695 million. Both medicines exhibited rapid sales growth in excess of 50% year over year.
If we assume that a slightly slower pace of 40% year-over-year growth will continue as a result of ongoing marketing efforts and increased adoption of the newer medicines, the two medication could be bringing in slightly more than $5.7 billion per quarter by the end of 2025. That would handily eclipse Humira at its peak. And if growth continues at a similar rate, the company could make significantly more than it was able to with the older medicine.
But don't take this little financial model to mean that there's no risk of AbbVie falling short. Sustaining such a high growth rate will be difficult under the best of conditions. Its other medicines on the market could face stiff competitive pressure, meaning that there's a chance the Humira plan could succeed and the business as a whole could still fail to build on the top line as scheduled. Regulators could rebuff one or more of its myriad applications for commercialization over the next few years.
Still, the balance of factors suggests that AbbVie should be a good long-term investment for investors with a moderate tolerance for risk. Between its strong progress with Skyrizi and Rinvoq, consistent earnings accumulation over time, its dividend, and its massive pipeline of late-stage clinical programs, AbbVie is likely to succeed with its plan and continue to grow for the foreseeable future. That means it's an attractive stock to buy today, even with the possibility of a stumble in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If AbbVie's leaders are correct about Humira's replacements leading to top line growth after a brief period of stagnation through 2025, people who invest in the business today or within the next year should harvest a considerable return for taking on the risk. Between its strong progress with Skyrizi and Rinvoq, consistent earnings accumulation over time, its dividend, and its massive pipeline of late-stage clinical programs, AbbVie is likely to succeed with its plan and continue to grow for the foreseeable future. If you can predict slower patches in advance, you'll be positioned even better, and that's why it may be worth considering an investment in AbbVie (NYSE: ABBV) stock in the coming months. | If AbbVie's leaders are correct about Humira's replacements leading to top line growth after a brief period of stagnation through 2025, people who invest in the business today or within the next year should harvest a considerable return for taking on the risk. If you can predict slower patches in advance, you'll be positioned even better, and that's why it may be worth considering an investment in AbbVie (NYSE: ABBV) stock in the coming months. AbbVie is about to be tested. | After raking in billions of sales from its psoriatic arthritis drug Humira, AbbVie is now seeing generic competitors start to devour its market share internationally. If AbbVie's leaders are correct about Humira's replacements leading to top line growth after a brief period of stagnation through 2025, people who invest in the business today or within the next year should harvest a considerable return for taking on the risk. If you can predict slower patches in advance, you'll be positioned even better, and that's why it may be worth considering an investment in AbbVie (NYSE: ABBV) stock in the coming months. | If AbbVie's leaders are correct about Humira's replacements leading to top line growth after a brief period of stagnation through 2025, people who invest in the business today or within the next year should harvest a considerable return for taking on the risk. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! If you can predict slower patches in advance, you'll be positioned even better, and that's why it may be worth considering an investment in AbbVie (NYSE: ABBV) stock in the coming months. |
22930.0 | 2022-12-21 00:00:00 UTC | 2 Mammoth Stocks With Dividends to Buy Before 2022 Ends | ABBV | https://www.nasdaq.com/articles/2-mammoth-stocks-with-dividends-to-buy-before-2022-ends | nan | nan | There has been a lot of talk about a possible recession next year, when it might come, about how hard it might be, etc. Two healthcare stocks that are likely to thrive in such an environment include Cigna (NYSE: CI) and Johnson & Johnson (NYSE: JNJ).
The two companies have a big international reach and varied revenue streams that will likely benefit from the expected growth in healthcare spending as our population ages.
Cigna's Evernorth is leading the way
Cigna's stock is up more than 53% over the past 52 weeks, while the S&P 500 is down more than 15% over that same period.
Cigna had a strong third quarter, reporting revenue of $45.3 billion, up 3% year over year, and earnings per share (EPS) of $8.97, compared with EPS of $4.80 in the third quarter of 2021.
People think of Cigna as a healthcare insurer, but it's the other half of its business, Evernorth -- with its pharmacy benefits services, specialty pharmacy, and care solutions -- that is driving the company's growth. Evernorth brought in the largest part of the company's revenue in the quarter at $35.7 billion, up 6% year over year. Cigna Healthcare saw its revenue slide slightly to $11.18 billion, down from $11.22 billion in the same period a year ago.
Next year could be an even bigger year for Evernorth. Cigna is hastily adding biosimilars to its products for 2023, including ones to compete with AbbVie's immunology blockbuster Humira, the top-selling drug last year other than COVID-19 vaccinations. The company is hoping to add to its customer base by reducing the cost of specialty drugs and sees an increased opportunity as it says there will be generic or biosimilar competition for 30% of the top 25 specialty drugs by 2025.
Cigna raised its quarterly dividend by 12% this year to $1.12 per quarterly share, which roughly equals a yield of 1.36%, with a low payout ratio of 20.93%. The company has offered a quarterly dividend only since 2021, but obviously, considering the company's growth, there's plenty of room for dividend increases.
Johnson & Johnson stays up when the market falls
Johnson & Johnson is the ultimate defensive stock. It's up slightly for the year, a little more than 3%, while the S&P 500 has fallen 15% in that period. The company has increased annual revenue for six consecutive years and is on pace to do it again this year. Through nine months, it reported revenue of $71.2 billion, up 3.3% year over year, and EPS of $5.41, down 10.4% over the same period last year.
JNJ Free Cash Flow data by YCharts
The company is on the verge of one of its largest changes as it plans to spin off its consumer health segment by next November to a separate company, Kenvue, allowing Johnson & Johnson to focus on its two more profitable segments -- medtech and pharmaceutical. While this will hurt the company's diversity of revenue, it is in line with what other pharmaceutical giants are doing. It could pay off big -- since Pfizer spun off its generics to Viatris, in November of 2020, its stock is up 45%.
Through nine months, J&J's pharmaceutical segment is responsible for $39.4 billion in revenue, up 5.2% year over year, while medtech generated $20.6 billion, up 2.2% over the same period last year. By contrast, the consumer health segment reported $11.1 billion in revenue, down 1.1% year over year. It's exciting to think what Johnson & Johnson, with its international marketing power and reach, will be able to do with its $16.6 billion purchase this year of heart pump maker Abiomed.
Johnson & Johnson is closely identified with its commitment to shareholder returns, through regular stock buybacks and its dividend. The company is a Dividend King that has increased its dividend for 60 consecutive years. It raised its dividend by 6.6% this year to $1.13 per share, providing a yield of around 2.5%, better than the S&P 500 average of 1.82%. The company's cash dividend payout ratio of 64.94% leaves room for future increases.
Both Johnson & Johnson and Cigna trade at attractive valuations, with J&J going for only slightly more than 24 times earnings and Cigna trading for slightly more than 15 times earnings. Considering their strong financial positions and changes in store that could help their margins next year, it makes sense to look at both stocks before other investors look for safe plays during a recession.
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Jim Halley has positions in AbbVie, Johnson & Johnson, Pfizer, and Viatris. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Johnson & Johnson and Viatris. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cigna is hastily adding biosimilars to its products for 2023, including ones to compete with AbbVie's immunology blockbuster Humira, the top-selling drug last year other than COVID-19 vaccinations. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jim Halley has positions in AbbVie, Johnson & Johnson, Pfizer, and Viatris. The two companies have a big international reach and varied revenue streams that will likely benefit from the expected growth in healthcare spending as our population ages. | Cigna is hastily adding biosimilars to its products for 2023, including ones to compete with AbbVie's immunology blockbuster Humira, the top-selling drug last year other than COVID-19 vaccinations. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jim Halley has positions in AbbVie, Johnson & Johnson, Pfizer, and Viatris. Two healthcare stocks that are likely to thrive in such an environment include Cigna (NYSE: CI) and Johnson & Johnson (NYSE: JNJ). | Cigna is hastily adding biosimilars to its products for 2023, including ones to compete with AbbVie's immunology blockbuster Humira, the top-selling drug last year other than COVID-19 vaccinations. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jim Halley has positions in AbbVie, Johnson & Johnson, Pfizer, and Viatris. Cigna had a strong third quarter, reporting revenue of $45.3 billion, up 3% year over year, and earnings per share (EPS) of $8.97, compared with EPS of $4.80 in the third quarter of 2021. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jim Halley has positions in AbbVie, Johnson & Johnson, Pfizer, and Viatris. Cigna is hastily adding biosimilars to its products for 2023, including ones to compete with AbbVie's immunology blockbuster Humira, the top-selling drug last year other than COVID-19 vaccinations. Through nine months, J&J's pharmaceutical segment is responsible for $39.4 billion in revenue, up 5.2% year over year, while medtech generated $20.6 billion, up 2.2% over the same period last year. |
22931.0 | 2022-12-21 00:00:00 UTC | Top 15 Investing Tips for Beginners in 2023 and Beyond | ABBV | https://www.nasdaq.com/articles/top-15-investing-tips-for-beginners-in-2023-and-beyond | nan | nan | Today, I share my top 15 investing tips for beginners in 2023 and beyond to help you be a successful long-term investor. I discuss growth stock investing, ETF investing, dividend growth stock investing, speculative stocks, the psychology of money, how to build a portfolio, and more.
*Stock prices used in the below video were during the trading day of Dec. 20, 2022. The video was published on Dec. 20, 2022.
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Eric Cuka has positions in AbbVie, Invesco Qqq Trust, Series 1, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. Eric Cuka is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Cuka has positions in AbbVie, Invesco Qqq Trust, Series 1, and Vanguard S&P 500 ETF. Today, I share my top 15 investing tips for beginners in 2023 and beyond to help you be a successful long-term investor. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Cuka has positions in AbbVie, Invesco Qqq Trust, Series 1, and Vanguard S&P 500 ETF. I discuss growth stock investing, ETF investing, dividend growth stock investing, speculative stocks, the psychology of money, how to build a portfolio, and more. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Cuka has positions in AbbVie, Invesco Qqq Trust, Series 1, and Vanguard S&P 500 ETF. I discuss growth stock investing, ETF investing, dividend growth stock investing, speculative stocks, the psychology of money, how to build a portfolio, and more. 10 stocks we like better than Invesco QQQ Trust When our award-winning analyst team has a stock tip, it can pay to listen. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Cuka has positions in AbbVie, Invesco Qqq Trust, Series 1, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. Their opinions remain their own and are unaffected by The Motley Fool. |
22932.0 | 2022-12-20 00:00:00 UTC | 2 Exceptional Dividend Growth Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/2-exceptional-dividend-growth-stocks-to-buy-now | nan | nan | This is kind of a strange time to be a passive income investor. After more than a decade of ultra-low interest rates, you can suddenly receive a risk-free 3.5% interest rate on your totally liquid savings account deposits. That's a little more than twice as much as the yield you'd receive from the average dividend-paying stock in the S&P 500 index.
If you want a portfolio that generates enough dividend income to fuel your dream retirement, it's a good idea to fill it with companies that have the capacity to raise their payouts at a rapid pace. Both of these companies have histories of rapid dividend hikes and look well-positioned to continue boosting those payouts in the years to come.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is a leading pharmaceutical company that offers investors a 3.7% yield at its current share price. It was the pharmaceutical segment of Abbott Laboratories until its parent spun it off as a separate company in 2013. Growing sales of its blockbuster drugs allowed AbbVie management to raise its payout by a whopping 270% over the past decade.
Abbott spun AbbVie out as a separate company in part to shield itself from the eventual loss of revenue from AbbVie's top product, Humira. That anti-inflammatory injection is approved for a host of conditions, and currently generates around $22 billion in annual sales.
In 2018, Humira lost its market exclusivity in Europe to lower-cost biosimilar versions, and international sales of the drug plummeted. Shares of AbbVie offer an above-average yield right now in part because U.S. Humira sales, which reached the level of $20 billion annualized in the third quarter, will begin shrinking in 2023 as biosimilars take off in the domestic market.
AbbVie looks like a great dividend growth stock to buy despite the impending loss of U.S. Humira sales. Over the years, it has acquired and developed multiple new blockbuster drugs, the sales of which can more than offset the looming declines from Humira and allow AbbVie to continue raising its dividend payout. For example, in 2019, the company launched a pair of drugs -- Skyrizi for psoriasis and Rinvoq for arthritis -- that between them are intended to provide better options for the indications that Humira treats. These two are already generating more than $8 billion in combined sales annually.
Over the past 12 months, AbbVie's finely tuned operation generated an astounding $21.9 billion in free cash flow. That was more than twice as much as was necessary to maintain the company's dividend payout. In the years ahead, raising its payout in line with its earnings growth should be a breeze.
CVS Health
At the current share price, CVS Health (NYSE: CVS) offers a 2.5% yield. This might not be as attractive as AbbVie's at the moment. However, given the reliable profits its collection of related healthcare businesses generate, the stock is a dividend growth investor's dream come true.
CVS may not have shown up on your dividend growth stock screen because it held its payout steady from 2018 through 2021. Despite that three-year pause in hikes, CVS Health has boosted its dividend by an impressive 169% over the past decade.
It froze the payout to help cover the costs of its transformational acquisition of Aetna, a leading health insurance company. And while CVS Health may be a bit infamous for the extraordinarily long receipts customers receive when shopping at its ubiquitous chain of retail pharmacies, it's the less-visible parts of the business that make it a great dividend growth stock to buy.
As an insurance benefits manager, CVS Health collects premiums from an estimated 35 million people. It also runs the country's leading pharmacy benefits manager, which has more than 110 million plan members. Providing the health benefits it also gets paid to manage is an extremely lucrative position to be in. The company has been able to repay $25.2 billion of debt since it closed its Aetna acquisition.
CVS Health's dual position as both a provider and manager of health benefits is about to get a lot larger. Its $8 billion acquisition of Signify Health is expected to close in the first half of 2023. Signify Health operates a network of more than 10,000 clinicians, and it expects to connect with nearly 2.5 million unique members in their homes this year. A much larger hand in the delivery of primary care services will help CVS Health push its dividend much higher in the years to come.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends CVS Health. 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. | Shares of AbbVie offer an above-average yield right now in part because U.S. Humira sales, which reached the level of $20 billion annualized in the third quarter, will begin shrinking in 2023 as biosimilars take off in the domestic market. Over the years, it has acquired and developed multiple new blockbuster drugs, the sales of which can more than offset the looming declines from Humira and allow AbbVie to continue raising its dividend payout. AbbVie AbbVie (NYSE: ABBV) is a leading pharmaceutical company that offers investors a 3.7% yield at its current share price. | AbbVie AbbVie (NYSE: ABBV) is a leading pharmaceutical company that offers investors a 3.7% yield at its current share price. Growing sales of its blockbuster drugs allowed AbbVie management to raise its payout by a whopping 270% over the past decade. Abbott spun AbbVie out as a separate company in part to shield itself from the eventual loss of revenue from AbbVie's top product, Humira. | AbbVie looks like a great dividend growth stock to buy despite the impending loss of U.S. Humira sales. AbbVie AbbVie (NYSE: ABBV) is a leading pharmaceutical company that offers investors a 3.7% yield at its current share price. Growing sales of its blockbuster drugs allowed AbbVie management to raise its payout by a whopping 270% over the past decade. | Shares of AbbVie offer an above-average yield right now in part because U.S. Humira sales, which reached the level of $20 billion annualized in the third quarter, will begin shrinking in 2023 as biosimilars take off in the domestic market. * 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 AbbVie (NYSE: ABBV) is a leading pharmaceutical company that offers investors a 3.7% yield at its current share price. |
22933.0 | 2022-12-19 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 12/19/2022 | ABBV | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-12-19-2022 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
ENSIGN GROUP INC (ENSG) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Ensign Group, Inc. is a holding company, which provides skilled nursing, senior living, and rehabilitative services, as well as other ancillary businesses (including mobile diagnostics and medical transportation) through its subsidiaries. The Company operates through two segments: skilled services and real estate. The skilled services segment includes the operation of skilled nursing facilities and rehabilitation therapy services. The real estate segment primarily comprised of properties owned by the Company and leased to skilled nursing and senior living operations, including its own operating subsidiaries and third-party operators, and are subject to triple-net long-term leases. It offers skilled nursing, senior living and rehabilitative care services through approximately 268 skilled nursing and senior living facilities. Its real estate portfolio includes approximately 107 owned real estate properties located in Arizona, California, Colorado, Idaho, and Nebraska, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ENSIGN GROUP INC
Full Guru Analysis for ENSG>
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ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its Established Pharmaceutical Products segment includes gastroenterology products, women's health products, cardiovascular and metabolic products, pain and central nervous system products and respiratory drugs and vaccines. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. Its Nutritional Products segment includes various forms of infant formula and follow-on formula, adult and other pediatric nutritional products and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
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AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Major Drugs industry. The rating according to our strategy based on John Neff is 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AmerisourceBergen Corporation is a global pharmaceutical sourcing and distribution services company. The Company operates through two segments: U.S. Healthcare Solutions and International Healthcare Solutions. The U.S. Healthcare Solutions segment distributes an offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers. The International Healthcare Solutions segment consists of businesses that focus on international pharmaceutical wholesale and related service operations and global commercialization services. This segment consists of Alliance Healthcare, World Courier, Innomar, Profarma, and Profarma Specialty.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
Detailed Analysis of AMERISOURCEBERGEN CORP.
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ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff is 42% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. It offers products in various therapeutic categories, including immunology products, which include Humira, Skyrizi and Rinvoq; oncology products, which include Imbruvica and Venclexta; aesthetics products that include Botox Cosmetic, Juvederm Collection and others; neuroscience products, such as Botox Therapeutic, Vraylar, Duopa and Duodopa, and Ubrelvy; eye care products consists of Lumigan, Alphagan and Restasis; women's health products include Lo Loestrin, Orilissa and others; and other products, which includes Mavyret, Creon, Lupron, Linzess and Synthroid. Its products are sold to wholesalers, government agencies, health care facilities and independent retailers. It also discovers and develop antibody medicines that target difficult-to-drug disease-causing proteins, such as G protein-coupled receptors (GPCRs).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ABBVIE INC
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ABIOMED INC (ABMD) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 42% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABIOMED, Inc. is a medical technology provider, which provides circulatory support and oxygenation. The Company develops, manufactures and markets its products, which are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. Its products are used in the cardiac catheterization lab or cath lab, by interventional cardiologists and in the heart surgery suite by cardiac surgeons for patients who are in need of hemodynamic support prophylactically or emergently before, during or after angioplasty, or heart surgery procedures. The Company's Impella device portfolio includes the Impella 2.5, Impella CP, Impella 5.0, Impella LD, Impella 5.5 and Impella RP devices. Its product pipeline includes Impella ECP, Impella XR Sheath, Impella BTR and precardiac. The Impella ECP device is designed for blood flow of greater than three and a half liters per minute. The Impella BTR device is designed to be a heart pump with integrated motors and sensors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: FAIL
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ABIOMED INC
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More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> ABIOMED INC (ABMD) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> ABIOMED INC (ABMD) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> ABIOMED INC (ABMD) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> ABIOMED INC (ABMD) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
22934.0 | 2022-12-19 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-2 | 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 +3.6%, compared to the Zacks S&P 500 composite's -2.7% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 6.7%. 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
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.67 per share, indicating a change of +10.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.86 points to a change of +9.1% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $11.43 indicates a change of -17.5% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AbbVie, the consensus sales estimate for the current quarter of $15.38 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $58.31 billion and $53.74 billion estimates indicate +3.8% and -7.8% 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
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 6.7%. 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. | 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 gained 6.7%. | 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 gained 6.7%. | 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 gained 6.7%. |
22935.0 | 2022-12-19 00:00:00 UTC | AbbVie (ABBV) Vraylar Gets FDA Nod for Major Depressive Disorder | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-vraylar-gets-fda-nod-for-major-depressive-disorder | nan | nan | AbbVie ABBV announced that the FDA has approved Vraylar (cariprazine) for the adjunctive treatment of patients with major depressive disorder (MDD).
Vraylar is presently approved for treating schizophrenia, the acute treatment of manic or mixed episodes associated with bipolar I disorder and depressive episodes associated with bipolar I disorder. MDD is the fourth indication for Vraylar. Vraylar is now the only dopamine and serotonin partial agonist approved by the FDA to treat the most common forms of depression, which are as an adjunctive treatment for MDD and the treatment of depressive episodes associated with bipolar I disorder.
About one in five U.S. adults will experience MDD, a common mental disorder, during their lifetime. Several MDD patients experience partial response to their antidepressant therapy as they still have depressive symptoms. The approval of Vraylar for MDD offers a new adjunctive treatment option for these patients.
The supplemental new drug application (sNDA) seeking approval of Vraylar for MDD was based on data from two phase III studies.
Vraylar is co-developed by AbbVie and Gedeon Richter. The drug generated sales of $1.47 billion for AbbVie in the first nine months of 2022. With the approval for the MDD indication, sales are expected to be higher in future quarters.
AbbVie’s stock has risen 16.0% this year so far compared with an increase of 14.1% for the industry.
Image Source: Zacks Investment Research
AbbVie also announced that it has submitted a sNDA to the FDA seeking approval of Linzess for the treatment of children and adolescents 6 to 17 years of age with functional constipation (FC).
Linzess is developed and marketed by AbbVie and Ironwood Pharmaceuticals IRWD. Ironwood Pharmaceuticals and AbbVie share equally in U.S. brand collaboration profits. The IRWD-partnered drug is approved to treat adults with chronic idiopathic constipation (CIC) or irritable bowel syndrome with constipation (IBS-C).
The sNDA seeking approval for FC is based on positive data from a phase III study which showed that Linzess (72mcg) led to increases in the frequency of spontaneous bowel movements (SBM) and improved stool consistency in pediatric patients (6 to 17 years).
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked large drugmakers are Sanofi SNY and Gilead Sciences GILD, both carrying a Zacks Rank #2 (Buy) at present.
Sanofi’s earnings per share estimates for 2022 have increased from $4.01 per share to $4.16 while that for 2023 has jumped from $4.22 per share to $4.31 in the past 30 days. Sanofi’sstock is down 6.2% in the year-to-date period.
Sanofi beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 9.50%, on average.
Estimates for Gilead’s 2022 earnings per share have increased from $6.57 per share to $7.09, while that for 2023 have jumped from $6.48 per share to $6.78 in the past 30 days. Gilead’s stock is up 19.4% in the year-to-date period.
Gilead beat earnings expectations in three of the trailing four quarters. The company delivered a four-quarter earnings surprise of 0.36%, on average.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research AbbVie also announced that it has submitted a sNDA to the FDA seeking approval of Linzess for the treatment of children and adolescents 6 to 17 years of age with functional constipation (FC). AbbVie ABBV announced that the FDA has approved Vraylar (cariprazine) for the adjunctive treatment of patients with major depressive disorder (MDD). Vraylar is co-developed by AbbVie and Gedeon Richter. | AbbVie ABBV announced that the FDA has approved Vraylar (cariprazine) for the adjunctive treatment of patients with major depressive disorder (MDD). Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Vraylar is co-developed by AbbVie and Gedeon Richter. | AbbVie ABBV announced that the FDA has approved Vraylar (cariprazine) for the adjunctive treatment of patients with major depressive disorder (MDD). Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Vraylar is co-developed by AbbVie and Gedeon Richter. | AbbVie ABBV announced that the FDA has approved Vraylar (cariprazine) for the adjunctive treatment of patients with major depressive disorder (MDD). Image Source: Zacks Investment Research AbbVie also announced that it has submitted a sNDA to the FDA seeking approval of Linzess for the treatment of children and adolescents 6 to 17 years of age with functional constipation (FC). Vraylar is co-developed by AbbVie and Gedeon Richter. |
22936.0 | 2022-12-18 00:00:00 UTC | The 7 Hottest Biotech Stocks to Own in 2023 and Beyond | ABBV | https://www.nasdaq.com/articles/the-7-hottest-biotech-stocks-to-own-in-2023-and-beyond | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Some of the hottest biotech stocks are safe and recession-proof. After all, we can’t stop people from aging – at least, not yet. We can’t stop people from seeking treatments for a myriad of issues. Plus, there’s growing demand for innovation in gene therapies, immune-oncology, precision medicine, machine-learning drug discovery, and treatments for unmet medical needs.
Plus, according to Grand View Research, the global biotech industry could be worth up to $2.44 trillion by 2028. “The factors driving the market include favorable government policies, the launch of new and advanced products, robust investment in the biotechnology sector, and rising demand for synthetic biology,” they added. That being said, if you’re looking for solid ways to trade the sector, here are seven top ways.
XBI SPDR S&P Biotech ETF $80.69
BIB ProShares Ultra Nasdaq Biotechnology ETF $60.54
ABBV AbbVie $163.10
AXSM Axsome Therapeutics $77.46
ARDX Ardelyx $1.94
ALT Altimmune $10.47
KRYS Krystal Biotech $78.40
SPDR S&P Biotech ETF (XBI)
Source: shutterstock.com/Romix Image
As I’ve mentioned, ETFs are some of the most valuable investing tools. Not only do they offer solid diversification, they do so at low cost. Look at the SPDR S&P Biotech ETF (NYSE:XBI), for example. With an expense ratio of 0.53%, the $83 ETF offers exposure to top biotech names such as Horizon Therapeutics(NASDAQ:HZNP), Moderna (NASDAQ:MRNA) , Biogen (NASDAQ:BIIB), Gilead Sciences (NASDAQ:GILD) and more.
Granted, the XBI didn’t have a great year, like most other stocks. However, if the XBI ETF can break from consolidation around $80.68, I’d like to see it refill its bearish gap around $110. Even Baird analyst Mike Perrone, CFA appears bullish, noting, “Healthcare tends to perform relatively well during periods of economic slowdown or recession as the sector is regarded as acyclical/defensive, and in recent months we have seen positive inflows into healthcare broadly given the current weak economic backdrop.”
ProShares Ultra Nasdaq Biotechnology ETF (BIB)
Source: shutterstock.com/Champhei
Another red-hot biotech ETF to consider is the ProShares Ultra Nasdaq Biotechnology ETF (NASDAQ:BIB). At $60.54, with an expense ratio of 0.95%, this ETF offers exposure to stocks, including Clearside Biomedical (NASDAQ:CLSD), Passage Bio (NASDAQ:PASG), Adverum Biotechnologies(NASDAQ:ADVM), Leap Therapeutics (NASDAQ:LPTX), Surface Oncology (NASDAQ:SURF), Applied Molecular (NASDAQ:AMTI) and dozens more.
The BIB ETF didn’t have an exemplary year either. However, if it can break above triple top resistance dating back to March, it could potentially retest $85 a share.
AbbVie (ABBV)
Source: Gorodenkoff / Shutterstock.com
AbbVie (NYSE:ABBV) had a strong 2022., which I expect to last well into 2023.
Sure, there’s was a good deal of concern about could happen to the company sales when it lost patent protection on its flagship drug, Humira. However, as noted by Barron’s contributor Teresa Rivas, “The company has profitable products that have begun to fill the gap left by Humira’s decline. Investors who preferred to wait out the transition from Humira may have erred—AbbVie stock is up by more than 19%, to a recent $162, so far in 2022. Moreover, the stock looks cheap and has a handsome dividend yield. It’s worth owning—now.”
In addition, the company says that Skyrizi and Rinvoq could bring in about $15 billion in sales over the next three years. That alone would take away the sting of Humira. In addition, ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized.
Axsome Therapeutics (AXSM)
Source: everything possible / Shutterstock.com
Axsome Therapeutics (NASDAQ:AXSM) had an incredible year. Since Jan., the stock ran from about $35 to $76 a share, and could see higher highs. Most recently, AXSM was up on positive results from its Phase 3 trials for Alzheimer’s Disease candidate AXS-05. Not only does this treatment have Breakthrough status from the US FDA, it met it primary and key secondary endpoints in delaying relapse times, and preventing relapse of agitation in patients.
In addition, the stock has been running on US FDA approval for its Auvelity treatment for major depressive disorder. Approval of the drug could add further momentum to the stock. With that approval, Cantor Fitzgerald analyst Charles Duncan raised the firm’s price target on Axsome Therapeutics to $96 from $88 with an Overweight rating.
Even better, the company recently announced its Sunosi treatment met its primary endpoint. If successful, it could help many improve cognitive function in patients with excessive daytime sleepiness as a result of obstructive sleep apnea.
Ardelyx (ARDX)
Source: Mongkolchon Akesin / Shutterstock.com
Massachusetts-based Ardelyx (NASDAQ:ARDX) is another hot biotech to consider heading into 2023.
All after the US FDA’s Cardiovascular and Renal Drugs Advisory Committee (CRDAC) voted in favor of its kidney disease drug. The ruling also covers the drug’s use in patients with chronic kidney disease that are on dialysis. That’s all great news, and could lead the US FDA to approve the drug. Better, according to a company investor deck, the treatment could have “Significant market potential across 550K patients on dialysis in the U.S.” In addition, it approved, the kidney treatment could help address a big unmet medical need.
Since bottoming out around 50 cents, the stock is up to $1.94. From here, I’d like to see the ARDX stock refill its bearish gap around $7.60.
Altimmune (ALT)
Source: Shutterstock
The obesity epidemic is still bursting at the seams. At the moment, 1.9 billion people are overweight, with more than 650 million considered obese.
However, that could soon change. In 2023, Altimmune (NASDAQ:ALT) is expected to release 24-week interim results from its ongoing mid-stage obesity trial with pemvidutide. If successful, it could provide a significant catalyst for the stock. So far, we know “The Phase I clinical trial was successful, leading the company to make high claims about the drug’s potential, saying that it could be as effective as bariatric surgery and that it mimics the effects of diet and exercise,” as noted by PharmaLive.com.
Even better, Goldman Sachs analyst Corinne Jenkins initiated coverage of Altimmune with a Buy rating and $20 price target. As noted by TheFly.com, “The analyst takes a positive view on the probability of a successful outcome for the Phase 2 MOMENTUM study of Altimmune’s lead asset, pemvidutide, in patients with obesity based on our assessment of the clinical data and a proprietary logistic growth model.”
Krystal Biotech (KRYS)
Source: Shutterstock
Krystal Biotech (NASDAQ:KRYS) could see higher highs in the new year, too. With a focus on skin diseases, the genome editing company submitted B-VEC back in June. It’s a potential treatment for dystrophic epidermolysis bullosa (DEB), a rare disease that can leave a person’s skin fragile and susceptible to blisters.
To get a bit technical, “DEB is a rare and severe disease that affects the skin and mucosal tissues. It is caused by one or more mutations in a gene called COL7A1, which is responsible for the production of the protein type VII collagen (COL7) that forms anchoring fibrils that bind the dermis (inner layer of the skin) to the epidermis (outer layer of the skin),” as noted on the company’s site.
At the moment, the US FDA has a PDUFA goal date of Feb. 17, 2023. If approved, the KRYS treatment could help meet an unmet medical need for thousands of people. In addition, the company believes this could be a$500 million opportunity for its $2.02 billion stock.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
The post The 7 Hottest Biotech Stocks to Own in 2023 and Beyond 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. | XBI SPDR S&P Biotech ETF $80.69 BIB ProShares Ultra Nasdaq Biotechnology ETF $60.54 ABBV AbbVie $163.10 AXSM Axsome Therapeutics $77.46 ARDX Ardelyx $1.94 ALT Altimmune $10.47 KRYS Krystal Biotech $78.40 SPDR S&P Biotech ETF (XBI) Source: shutterstock.com/Romix Image As I’ve mentioned, ETFs are some of the most valuable investing tools. AbbVie (ABBV) Source: Gorodenkoff / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022., which I expect to last well into 2023. Investors who preferred to wait out the transition from Humira may have erred—AbbVie stock is up by more than 19%, to a recent $162, so far in 2022. | XBI SPDR S&P Biotech ETF $80.69 BIB ProShares Ultra Nasdaq Biotechnology ETF $60.54 ABBV AbbVie $163.10 AXSM Axsome Therapeutics $77.46 ARDX Ardelyx $1.94 ALT Altimmune $10.47 KRYS Krystal Biotech $78.40 SPDR S&P Biotech ETF (XBI) Source: shutterstock.com/Romix Image As I’ve mentioned, ETFs are some of the most valuable investing tools. AbbVie (ABBV) Source: Gorodenkoff / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022., which I expect to last well into 2023. Investors who preferred to wait out the transition from Humira may have erred—AbbVie stock is up by more than 19%, to a recent $162, so far in 2022. | XBI SPDR S&P Biotech ETF $80.69 BIB ProShares Ultra Nasdaq Biotechnology ETF $60.54 ABBV AbbVie $163.10 AXSM Axsome Therapeutics $77.46 ARDX Ardelyx $1.94 ALT Altimmune $10.47 KRYS Krystal Biotech $78.40 SPDR S&P Biotech ETF (XBI) Source: shutterstock.com/Romix Image As I’ve mentioned, ETFs are some of the most valuable investing tools. AbbVie (ABBV) Source: Gorodenkoff / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022., which I expect to last well into 2023. Investors who preferred to wait out the transition from Humira may have erred—AbbVie stock is up by more than 19%, to a recent $162, so far in 2022. | XBI SPDR S&P Biotech ETF $80.69 BIB ProShares Ultra Nasdaq Biotechnology ETF $60.54 ABBV AbbVie $163.10 AXSM Axsome Therapeutics $77.46 ARDX Ardelyx $1.94 ALT Altimmune $10.47 KRYS Krystal Biotech $78.40 SPDR S&P Biotech ETF (XBI) Source: shutterstock.com/Romix Image As I’ve mentioned, ETFs are some of the most valuable investing tools. AbbVie (ABBV) Source: Gorodenkoff / Shutterstock.com AbbVie (NYSE:ABBV) had a strong 2022., which I expect to last well into 2023. Investors who preferred to wait out the transition from Humira may have erred—AbbVie stock is up by more than 19%, to a recent $162, so far in 2022. |
22937.0 | 2022-12-17 00:00:00 UTC | 6 Stocks Warren Buffett Completely Exited in 2022 | ABBV | https://www.nasdaq.com/articles/6-stocks-warren-buffett-completely-exited-in-2022 | nan | nan | When Warren Buffett, one of the greatest investors of all time, makes a move, the market listens. His company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) maintains an equities portfolio worth roughly $337 billion, and investors, through regulatory filings, can see what stocks Berkshire is buying and selling every three months.
While Berkshire's buys often get a lot of attention, investors should also keep an eye on his sales.
Berkshire selling a stock is not always indicative of that stock's performance or whether you should sell, it's still something to be aware of. If you're holding a stock Berkshire is selling, maybe you're missing something in your investment thesis. Here are six stocks Berkshire completely exited this year.
1. Verizon
Berkshire entered the year holding roughly 158.8 million shares of the large telecommunications company Verizon (NYSE: VZ), which were valued at close to $8.3 billion. But in the second quarter, Berkshire completely closed out that position, possibly because the company was repositioning for a much different economic and monetary outlook.
Berkshire may have been right to be concerned. When it released its second-quarter results, Verizon also lowered its adjusted earnings guidance for the full fiscal year to a range of $5.10 to $5.25, down from $5.40 to $5.55. The company also lowered its guidance for revenue growth.
2. STORE Capital Corp
Heading into 2022, Berkshire held a little under $840 million in STORE Capital Corp (NYSE: STOR), the sole real estate investment trust (REIT) in Berkshire's portfolio. As a REIT that gets special tax treatment, STORE paid out at least 90% of its annual taxable income in dividends.
The company ran a triple-net lease single-tenant model in which it bought properties and then leased those properties back to the owners so the company didn't have to deal with the expenses of maintaining the property. In September, the fund GIC and funds managed by Oak Street announced they would acquire STORE Capital for roughly $14 billion in cash, so the stock has now really gone as far as it's going to go.
3. Abbvie
Berkshire came into the year holding about $410.7 million of the biopharmaceutical company Abbvie (NYSE: ABBV) but quickly exited the company in the first quarter of the year. It hasn't at all been a bad year for Abbvie with the stock up more than 21% and widely beating the broader market.
Abbvie reported mixed results for the third quarter, with adjusted earnings beating estimates but revenue coming in less than expected. The company also confirmed the midpoint of its full-year earnings guidance range but lowered the upper bound.
4. Royalty Pharma
Berkshire sold its stake in the company Royalty Pharma (NASDAQ: RPRX), which totaled about $344 million at the start of 2022. Royalty Pharma funds biopharma research and development in a number of different ways and then acquires royalty interests in those companies, so it's a bit like an incubator.
It's hard to see exactly what Berkshire didn't like, as the stock is up more than 5% in a down year. The company's third-quarter earnings and revenue beat analyst estimates, and the company raised full-year guidance. Perhaps Berkshire just didn't think the company had good long-term prospects.
5. Bristol-Myers Squibb
It was a bad year to be a pharmaceutical company in Berkshire's portfolio, as the company clearly didn't like its exposure to the sector. Berkshire entered 2022 with about $324 million of Bristol-Myers Squibb (NYSE: BMY) stock but exited its position in the first quarter of the year. This is another stock that has done quite well up more than 24% this year, so it seems pretty clear that something earlier this year left Buffett and Berkshire with a bad taste in their mouths when it came to the pharmaceutical space.
6. Wells Fargo
Heading into this year, it was well known that Buffett and Berkshire had had enough of the large bank Wells Fargo (NYSE: WFC). Wells Fargo found itself in the hot seat in 2016 when it came to light that bank employees had been opening credit card and bank accounts for people without their consent.
Since then, the bank has faced a number of fines and punitive regulatory actions, including an asset cap, which prevents it from growing its balance sheet. It was also rumored that Buffett didn't like the bank's hiring of Wall Street veteran Charlie Scharf as CEO in 2019, even though Scharf appears to be doing a decent job. The sale ends more than three decades of Berkshire owning the stock.
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Bristol-Myers Squibb. The Motley Fool recommends Store Capital and Verizon Communications and 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. | Abbvie reported mixed results for the third quarter, with adjusted earnings beating estimates but revenue coming in less than expected. Abbvie Berkshire came into the year holding about $410.7 million of the biopharmaceutical company Abbvie (NYSE: ABBV) but quickly exited the company in the first quarter of the year. It hasn't at all been a bad year for Abbvie with the stock up more than 21% and widely beating the broader market. | Abbvie Berkshire came into the year holding about $410.7 million of the biopharmaceutical company Abbvie (NYSE: ABBV) but quickly exited the company in the first quarter of the year. It hasn't at all been a bad year for Abbvie with the stock up more than 21% and widely beating the broader market. Abbvie reported mixed results for the third quarter, with adjusted earnings beating estimates but revenue coming in less than expected. | Abbvie Berkshire came into the year holding about $410.7 million of the biopharmaceutical company Abbvie (NYSE: ABBV) but quickly exited the company in the first quarter of the year. It hasn't at all been a bad year for Abbvie with the stock up more than 21% and widely beating the broader market. Abbvie reported mixed results for the third quarter, with adjusted earnings beating estimates but revenue coming in less than expected. | Abbvie Berkshire came into the year holding about $410.7 million of the biopharmaceutical company Abbvie (NYSE: ABBV) but quickly exited the company in the first quarter of the year. It hasn't at all been a bad year for Abbvie with the stock up more than 21% and widely beating the broader market. Abbvie reported mixed results for the third quarter, with adjusted earnings beating estimates but revenue coming in less than expected. |
22938.0 | 2022-12-16 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-3 | nan | nan | The market has dished plenty of ups and downs to investors over the past year, and there's no telling exactly when the volatility will end. The good news is, as a long-term investor, you don't need to make your investment decisions around the whims of the market. Rather, as you focus your capital on quality companies with strong track records of growth and abundant pathways to future growth, you can continue to invest in all market environments to supercharge your portfolio gains over the long haul.
Here are three top dividend stocks you may want to consider adding to your portfolio before the year is out.
1. AbbVie
As a member of the illustrious Dividend King club, AbbVie (NYSE: ABBV) has a payout history that few income stocks can rival. The stock currently yields 3.6% based on share prices, which is nearly twice the yield of the average stock trading on the S&P 500. Meanwhile, AbbVie's dividend has risen by roughly 270% in the past decade, enabling the stock to deliver a total return of about 650% for investors.
The company boasts a wide-ranging portfolio of products that generate consistent demand, including medicines targeting various immunological, oncological, and neurological disorders. It also wields a fast-growing portfolio of aesthetic products. Two of the most well-known are Botox Cosmetic and Botox Therapeutic, which the company acquired in its 2020 purchase of Allergan.
Humira, famously known as the world's top-selling drug, has been a key driver of AbbVie's growth over the years. However, the company has been paving the way for growth beyond the blockbuster status of Humira for many years now by cultivating its pipeline, launching new medicines, and making targeted acquisitions. While the Allergan acquisition expanded its footprint in the aesthetic medicine market, AbbVie's purchases of U.K.-based biotech DJS Antibodies and Belgian biotech Syndesi Therapeutics earlier this year significantly augmented its immunology and neuroscience portfolios, two segments that remain the key revenue drivers year after year.
Even as patent exclusivity for Humira runs out in the U.S. in 2023, AbbVie has many other products it can count on to drive prolonged growth in the future. For example, top-selling immunology medicines Skyrizi and Rinvoq saw total revenues rise 75% and 54%, respectively, in the third quarter of 2022 compared to the same period in 2021.
Over the trailing decade, AbbVie has seen its annual revenue and earnings increase by respective amounts of 206% and 120%. AbbVie's track record and robust portfolio of products bode well for its future growth story, as well as for income investors taking a long-term position in this tried-and-true healthcare stock.
2. Target
Target (NYSE: TGT) is also a Dividend King, with 51 years of consecutive dividend increases to its name. Meanwhile, the stock has seen its dividend rise 200% over the trailing decade, with the stock delivering a total return of 223%. Target currently boasts a yield of 2.8%.
Admittedly, the road has not been smooth lately for Target shareholders. After accumulating too much inventory earlier in the pandemic, Target's earnings and margins have taken a severe hit in recent quarters as the company has worked to rid itself of this excess stock of goods.
While consumer spending ramped up a few years ago, as the macro environment has shifted in the pandemic recovery and consumers have curbed spending, many companies have found themselves with too much inventory on hand. Target was no exception. The high rate of inflation also continues to be a factor in scaling back consumer spending. All these elements have caused pain for Target's balance sheet -- and for investors -- but these are near-term dynamics and not durable headwinds to the business.
Target was already starting to see progress from its aggressive inventory offload plan in the most recent quarter. Total revenue rose 3% year over year to $26.5 billion, while its operating margin rate improved from 1.2% in the second quarter to 4% in the third. While net earnings and operating income were both down on a year-over-year basis, these still totaled $712 million and $1 billion, respectively.
Bear in mind, this follows revenue and earnings growth of 45% and 132% over the trailing decade. Target boasts a versatile business that covers product categories ranging from daily-use essentials to discretionary items. For investors with the patience to wait out the volatility of the imminent environment, the diversity of Target's established business can drive generous returns over the long term.
3. Colgate-Palmolive
Household name Colgate-Palmolive (NYSE: CL) is also a Dividend King, having both paid out and raised its dividend for 59 years in a row. The stock's yield sits around 2.4% at the time of this writing. Although the stock has not been a particularly high performer in recent years, over the past decade, faithful investors have enjoyed witnessing that dividend increase by more than 50%.
While no consumer-centric stock is immune to the ills of inflation, Colgate-Palmolive has more optionality than most due to the essential nature of its thousands of branded products. In addition to its namesake brands Colgate and Palmolive, the company also sells a range of other well-known brands, including Tom's of Maine, Ajax, Axion, Speed Stick, Protex, and Hill's Pet Nutrition. From oral care to personal care to pet care, people are going to keep buying these products regardless of what's happening with the economy.
And with a company history that spans 216 years and counting, this clearly isn't Colgate-Palmolive's first rodeo. Foreign currency fluctuations and inflationary factors that raise the cost of doing business -- both near-term and non-business-related headwinds -- affected the company's top and bottom lines in the most recent quarter. However, it still reported organic sales growth of 7% year over year to $4.5 billion, while net income came to $618 million for the three-month period.
The nature of Colgate-Palmolive's business and the products it sells don't lend themselves to lightning-fast growth quarter to quarter or even year over year. Yet, the company still increased its annual revenue and annual net income by respective clips of 13% and 7% over the past five years alone. For income investors looking to add a steady-growth, blue-chip stock to a well-diversified portfolio, Colgate-Palmolive certainly fits the bill on both fronts.
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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 track record and robust portfolio of products bode well for its future growth story, as well as for income investors taking a long-term position in this tried-and-true healthcare stock. AbbVie As a member of the illustrious Dividend King club, AbbVie (NYSE: ABBV) has a payout history that few income stocks can rival. Meanwhile, AbbVie's dividend has risen by roughly 270% in the past decade, enabling the stock to deliver a total return of about 650% for investors. | While the Allergan acquisition expanded its footprint in the aesthetic medicine market, AbbVie's purchases of U.K.-based biotech DJS Antibodies and Belgian biotech Syndesi Therapeutics earlier this year significantly augmented its immunology and neuroscience portfolios, two segments that remain the key revenue drivers year after year. Over the trailing decade, AbbVie has seen its annual revenue and earnings increase by respective amounts of 206% and 120%. AbbVie As a member of the illustrious Dividend King club, AbbVie (NYSE: ABBV) has a payout history that few income stocks can rival. | While the Allergan acquisition expanded its footprint in the aesthetic medicine market, AbbVie's purchases of U.K.-based biotech DJS Antibodies and Belgian biotech Syndesi Therapeutics earlier this year significantly augmented its immunology and neuroscience portfolios, two segments that remain the key revenue drivers year after year. AbbVie As a member of the illustrious Dividend King club, AbbVie (NYSE: ABBV) has a payout history that few income stocks can rival. Meanwhile, AbbVie's dividend has risen by roughly 270% in the past decade, enabling the stock to deliver a total return of about 650% for investors. | AbbVie As a member of the illustrious Dividend King club, AbbVie (NYSE: ABBV) has a payout history that few income stocks can rival. Meanwhile, AbbVie's dividend has risen by roughly 270% in the past decade, enabling the stock to deliver a total return of about 650% for investors. Humira, famously known as the world's top-selling drug, has been a key driver of AbbVie's growth over the years. |
22939.0 | 2022-12-16 00:00:00 UTC | Time to Buy Eli Lilly (LLY) and AbbVie (ABBV) Stock for 2023? | ABBV | https://www.nasdaq.com/articles/time-to-buy-eli-lilly-lly-and-abbvie-abbv-stock-for-2023 | nan | nan | There have been some bright spots among healthcare stocks this year, particularly among the larger-cap equities. The Large Cap-Pharmaceuticals Industry is currently in the top 34% of over 250 Zacks Industries.
The collective total return for the industry is +15% with AbbVie ABBV and Eli Lilly LLY being two of the top performers in the space. Is now a good time to buy these two pharmaceutical giants for 2023?
Here is a fundamental view of what’s going on with Abbie and Eli Lilly stock as we get closer to the new year.
Recent & Historical Performance
Eli Lilly is up + 30% year to date to top AbbVie’s +19%. Both stocks have been defensive in nature and crushed the S&P 500’s -19% YTD performance. This has also outperformed the Large Cap-Pharmaceutical’s +12% price performance.
Image Source: Zacks Investment Research
More impressive, over the last decade, Eli Lilly’s total return is +823% with AbbVie at +601% to beat the benchmark and their Zacks Subindustry’s +255%.
Image Source: Zacks Investment Research
Valuation & Growth
Trading at $359 per share and roughly 4% from its highs, Eli Lilly has a forward P/E of 46.3X. In comparison, AbbVie is 9% off its high at around $160 a share and trades at just 11.6X forward earnings.
Eli Lilly trades just below its decade high of 48.3X but 120% above its median of 21X. When comparing this period, AbbVie looks much more attractive trading at a 45% discount to its decade high of 21.1X and slightly below the median of 11.9X.
Image Source: Zacks Investment Research
Pivoting to growth, Eli Lilly’s sales are expected to be virtually flat in 2022 and rise 7% in fiscal 2023 to $30.51 billion. On the bottom line, earnings are projected to dip -5% this year but jump 16% in FY23 at $9.03 per share. It is important to note that earnings estimate revisions have gone down for both FY22 and FY23.
Looking at AbbVie, earnings are now projected to rise 9% this year but drop -17% in FY23 at $11.43 a share. Earnings estimates have also gone down for AbbVie over the last 90 days. On the top line, sales are forecasted to be up 4% in 2022 but decline -8% in FY23 to $53.74 billion.
Dividends
The stellar total return of both stocks over the last decade shows how beneficial their dividend can be. This is certainly important to investors for additional income outside of a stock’s price performance in the current market environment.
In this regard, AbbVie has the edge again with a 3.46% dividend yield vs. Eli Lilly’s 1.09%.
Image Source: Zacks Investment Research
Bottom Line
Eli Lilly and AbbVie stock both land a Zacks Rank #3 (Hold) at the moment. Both stocks appear to be worth considering for your 2023 portfolio as their YTD performance has fought off inflationary concerns in the broader market.
AbbVie’s valuation, in particular, makes it a potentially strong candidate for 2023, while Eli Lilly’s growth could support its stock next year.
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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Eli Lilly and Company (LLY) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The collective total return for the industry is +15% with AbbVie ABBV and Eli Lilly LLY being two of the top performers in the space. Recent & Historical Performance Eli Lilly is up + 30% year to date to top AbbVie’s +19%. Image Source: Zacks Investment Research More impressive, over the last decade, Eli Lilly’s total return is +823% with AbbVie at +601% to beat the benchmark and their Zacks Subindustry’s +255%. | Image Source: Zacks Investment Research Bottom Line Eli Lilly and AbbVie stock both land a Zacks Rank #3 (Hold) at the moment. Click to get this free 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. The collective total return for the industry is +15% with AbbVie ABBV and Eli Lilly LLY being two of the top performers in the space. | Image Source: Zacks Investment Research More impressive, over the last decade, Eli Lilly’s total return is +823% with AbbVie at +601% to beat the benchmark and their Zacks Subindustry’s +255%. Image Source: Zacks Investment Research Bottom Line Eli Lilly and AbbVie stock both land a Zacks Rank #3 (Hold) at the moment. Click to get this free 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. | Earnings estimates have also gone down for AbbVie over the last 90 days. The collective total return for the industry is +15% with AbbVie ABBV and Eli Lilly LLY being two of the top performers in the space. Recent & Historical Performance Eli Lilly is up + 30% year to date to top AbbVie’s +19%. |
22940.0 | 2022-12-16 00:00:00 UTC | AbCellera (ABCL) to Develop New Antibody Therapies With AbbVie | ABBV | https://www.nasdaq.com/articles/abcellera-abcl-to-develop-new-antibody-therapies-with-abbvie | nan | nan | AbCellera Biologics Inc. ABCL announced that it entered a multi-target strategic collaboration with pharma giant AbbVie ABBV to develop new antibody therapies.
Per the agreement, AbCellera is eligible to receive research payments, as well as certain milestone payments and royalties on net sales, if a product is commercialized from the above collaboration. AbbVie will have the right to develop/commercialize therapeutic antibodies developed under the partnership.
Per the company, the latest deal is looking to leverage ABCL’s antibody drug discovery engine to deliver optimized pipeline candidates for up to five targets that are selected by ABBV across multiple indications.
Shares of AbCellera were up 2.7% on Thursday, following the announcement of the news. The stock has declined 27.3% so far this year compared with the industry’s fall of 17.3%.
Image Source: Zacks Investment Research
Apart from the deal with AbbVie, ABCL’s technology stack led to collaborations with several big and small healthcare companies for the discovery of antibodies across multiple indications.
Earlier this month, AbCellera inked a strategic alliance with Connecticut-based Rallybio Corporation RLYB to discover, develop and commercialize novel antibody-based therapeutics for rare diseases.
This multi-year partnership is looking to combine AbCellera’s antibody discovery engine with Rallybio’s expertise in rare diseases to identify optimal candidates while delivering therapies to patients.
AbCellera and RLYB will develop up to five rare disease therapeutic targets.
AbCellera’s top line currently comprises royalties, research fees from partnerships, and revenues from milestone payments and licensing revenues. Such partnership deals remain key factors for the company’s growth in the long run.
Zacks Rank & Stocks to Consider
AbCellera currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is ASLAN Pharmaceuticals Limited ASLN, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for ASLAN Pharmaceuticals have narrowed to 6.1% for 2022 and 5.7% for 2023 in the past 60 days.
Earnings of ASLAN Pharmaceuticals surpassed estimates in two of the trailing four quarters and missed on the remaining two occasions. ASLN witnessed an earnings surprise of 1.64% on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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AbCellera Biologics Inc. (ABCL) : Free Stock Analysis Report
Rallybio Corporation (RLYB) : 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. | Per the company, the latest deal is looking to leverage ABCL’s antibody drug discovery engine to deliver optimized pipeline candidates for up to five targets that are selected by ABBV across multiple indications. Image Source: Zacks Investment Research Apart from the deal with AbbVie, ABCL’s technology stack led to collaborations with several big and small healthcare companies for the discovery of antibodies across multiple indications. AbCellera Biologics Inc. ABCL announced that it entered a multi-target strategic collaboration with pharma giant AbbVie ABBV to develop new antibody therapies. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report ASLAN Pharmaceuticals Ltd. (ASLN) : Free Stock Analysis Report AbCellera Biologics Inc. (ABCL) : Free Stock Analysis Report Rallybio Corporation (RLYB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbCellera Biologics Inc. ABCL announced that it entered a multi-target strategic collaboration with pharma giant AbbVie ABBV to develop new antibody therapies. AbbVie will have the right to develop/commercialize therapeutic antibodies developed under the partnership. | Image Source: Zacks Investment Research Apart from the deal with AbbVie, ABCL’s technology stack led to collaborations with several big and small healthcare companies for the discovery of antibodies across multiple indications. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report ASLAN Pharmaceuticals Ltd. (ASLN) : Free Stock Analysis Report AbCellera Biologics Inc. (ABCL) : Free Stock Analysis Report Rallybio Corporation (RLYB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbCellera Biologics Inc. ABCL announced that it entered a multi-target strategic collaboration with pharma giant AbbVie ABBV to develop new antibody therapies. | AbbVie will have the right to develop/commercialize therapeutic antibodies developed under the partnership. AbCellera Biologics Inc. ABCL announced that it entered a multi-target strategic collaboration with pharma giant AbbVie ABBV to develop new antibody therapies. Per the company, the latest deal is looking to leverage ABCL’s antibody drug discovery engine to deliver optimized pipeline candidates for up to five targets that are selected by ABBV across multiple indications. |
22941.0 | 2022-12-16 00:00:00 UTC | Why Pfizer Stock Is Riskier Than AbbVie | ABBV | https://www.nasdaq.com/articles/why-pfizer-stock-is-riskier-than-abbvie | nan | nan | What in the world are investors thinking? AbbVie's (NYSE: ABBV) share price has soared more than 20% in 2022. But in a matter of weeks, the company's top-selling drug, Humira, faces competition from biosimilars in the U.S. market.
Meanwhile, Pfizer (NYSE: PFE) stock is down year to date, even though the drugmaker is on track to generate close to $100 billion in revenue this year -- more than any other biopharmaceutical company has ever made.
However, there's a simple answer to the initial question: Investors are thinking about risk. Here's why Pfizer stock is riskier than AbbVie.
Big challenges on the way
Yes, AbbVie will feel the pain from Humira losing U.S. exclusivity. The autoimmune-disease drug is on track to generate around $20 billion in sales this year. That amount represents roughly 34% of AbbVie's total projected revenue. The company expects U.S. sales to decline between 35% and 55% in 2023.
But AbbVie already has two successors to Humira already on the market. The company thinks that Rinvoq and Skyrizi together will generate sales of more than $15 billion by 2025.
Now consider Pfizer's challenges. The following table shows the major U.S. losses of exclusivity (LOEs) that the company faces through the end of this decade:
YEAR PRODUCTS LOSING U.S. EXCLUSIVITY
2025
Inlyta
Xeljanz
2026
Prevnar 13
Eliquis
2027
Ibrance
Xtandi
2028 Vyndaqel*
2029 Xalkori
Data source: Pfizer 10-K. *Pending a patent term extension.
These products generated combined sales of more than $23 billion for Pfizer in 2021.
The company's newest pneumococcal vaccine, Prevnar 20, should make up for most of the lost sales due to Prevnar 13 losing exclusivity. However, Pfizer doesn't have new drugs on the market ready to take the baton from the others on the list.
Pfizer's COVID conundrum
These looming LOEs aren't Pfizer's only problems. The company also has what you might call a COVID conundrum.
COVID-19 vaccine Comirnaty generated nearly 35% of Pfizer's total revenue in the first three quarters of 2022. Paxlovid, an oral antiviral therapy that treats COVID-19, contributed another 22% of total revenue during the period.
However, it's difficult (to say the least) to project how much these products will rake in over the next few years. No one knows what the ongoing demand for COVID-19 vaccines and therapies will be.
Pfizer CFO Dave Denton recently stated that the company expects its messenger RNA vaccines to make between $10 billion and $15 billion in annual sales by 2030. But this estimated range is a lot lower than the $34 billion sales expected for Comirnaty this year. It also includes other mRNA vaccines that aren't on the market yet -- a flu vaccine, a combination COVID-flu vaccine, and a shingles vaccine.
Meanwhile, Paxlovid seems likely to face increasing competition. It's possible and perhaps even probable that sales for the antiviral therapy could plunge after 2023.
Worth taking the risk?
The reality is that Pfizer has a lot more revenue at risk in the coming years than AbbVie does. Are these big pharma stocks still attractive despite their risks?
My view is that AbbVie should be a smart contrarian pick in 2023, even with Humira losing market share to biosimilars. The company has multiple long-term growth drivers, notably including Rinvoq and Skyrizi. AbbVie's dividend also remains a big plus for the stock.
Pfizer's dividend yield of 3% isn't too shabby, either. The drugmaker also has a promising pipeline and the financial flexibility to make additional business-development deals to fuel growth. I think that Pfizer's low valuation adequately reflects its risks.
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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 (NYSE: ABBV) share price has soared more than 20% in 2022. Here's why Pfizer stock is riskier than AbbVie. Big challenges on the way Yes, AbbVie will feel the pain from Humira losing U.S. exclusivity. | My view is that AbbVie should be a smart contrarian pick in 2023, even with Humira losing market share to biosimilars. AbbVie's (NYSE: ABBV) share price has soared more than 20% in 2022. Here's why Pfizer stock is riskier than AbbVie. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in AbbVie and Pfizer. AbbVie's (NYSE: ABBV) share price has soared more than 20% in 2022. Here's why Pfizer stock is riskier than AbbVie. | The reality is that Pfizer has a lot more revenue at risk in the coming years than AbbVie does. AbbVie's (NYSE: ABBV) share price has soared more than 20% in 2022. Here's why Pfizer stock is riskier than AbbVie. |
22942.0 | 2022-12-16 00:00:00 UTC | 2 Dividend Stocks That Could Double Your Return in 10 Years | ABBV | https://www.nasdaq.com/articles/2-dividend-stocks-that-could-double-your-return-in-10-years | nan | nan | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) have produced strong total returns over the past decade, and both pharmaceutical companies have what it takes to keep up the pace going forward, despite looming patent cliffs for both.
Over the past five years, AbbVie's total return is 249%, and Pfizer's is 167%, and given their strong cash flow and ability to purchase assets and develop their own therapies with large pipelines, there are plenty of reasons to see the two dividend stocks doubling your return over the next decade.
1. Pfizer is priced to buy
Pfizer is off to a record year, with management saying in its third-quarter earnings report that it expects annual revenue between $99.5 billion to $102 billion, which at the midpoint represents a rise of 23.9% over 2021. Management also forecasts annual earnings per share (EPS) to be between $6.40 to $6.50, compared to $3.99 last year. The stock is down more than 9% for the year, which is why the company is trading at slightly more than 10 times earnings. It's a bargain now that should pay off for the next decade.
Pfizer is scheduled to increase its quarterly dividend for the 14th consecutive year with an announced boost of 2.5% next year to $0.41 per share. That works out to a yield of around 3.14%. That growing dividend is a big reason why the company's total return is up 219.5% over the past 10 years.
The biggest concern regarding Pfizer is the patent cliff it faces with inflammatory and autoimmune therapy Xeljanz and advanced kidney cancer drug Inlyta in 2025, blood thinner Eliquis in 2026, and breast cancer drug Ibrance and prostate cancer therapy Xtandi in 2027. Combined, the drugs brought in $16 billion of the company's $81.2 billion in 2021 revenue. Pfizer's COVID-19 vaccine, Comirnaty, was responsible for $36.8 billion of that total, and that number is expected to decline greatly.
Pfizer said in a recent presentation that it expects to lose $17 billion in earnings from 2025 to 2030 because of the patent cliffs. However, it has the pipeline to replace those earnings and more. It said annual revenue from its mRNA vaccines for the flu, shingles, and COVID could be worth as much as $10 billion to $15 million by 2030.
It has also used its profits from Comirnaty to buy assets that will grow, including migraine drugs Nurtec ODT/Vydura and Zavegepant, which it got when it bought Biohaven Pharmaceuticals for $11.6 billion in October. Nurtec ODT/Vydura was launched in August as the first medication approved for the acute treatment of migraine and preventative treatment of episodic migraines. Zavegepant, designed to treat chronic migraines, is expected to launch next year. The migraine market is expected to grow to 40,000 prescriptions, meaning the potential for $6 billion in annual sales for Pfizer. The company also spent $5.4 billion in October to buy Global Blood Therapeutics, obtaining the company's sickle cell disease drug, Oxbryta, and two pipeline therapies GBT601 and Inclacumab, which, if approved, could be worth as much as $3 billion in peak annual sales.
The company also spent $6.7 billion to buy Arena Pharmaceuticals in 2021 and is expecting big things from ulcerative colitis and immuno-inflammatory drug Etrasimod, saying it could bring in $1 billion to $2 billion annually.
2. AbbVie: A blue chip trading at a discount
AbbVie spun off from Abbott Laboratories in 2013 and since then has increased its dividend by 270%. Counting AbbVie's time with Abbott Labs, it is a Dividend King and has already announced a 5% bump in its quarterly dividend next year to $1.48 a share, the 51st consecutive year the company has increased its dividend.
At its current price, AbbVie's dividend yield is 3.58%. It would be even higher, but the company's stock has climbed more than 21% in the past year. The company's price-to-earnings ratio of 22 is still relatively low, considering AbbVie's huge pipeline and the likelihood that its Humira patent cliff won't be that steep.
The drug, which has already brought in $20.9 billion through nine months, will face biosimilar competition next year in the United States. However, it has already faced biosimilar competition in Europe for four years, and yet it still pulled in $3 billion in nine-month sales in Europe, down only 2% year over year. The company's sales won't crater here because biologics hold their value longer than oral small-molecule drugs against generic competition, as biologics are more difficult to make. While companies are lining up with biosimilars to Humira, the sheer number of competitors may give Humira and its brand name an advantage. Even so, AbbVie CEO Richard Gonzalez has said he expects Humira sales to fall around 45% in 2023.
Stepping into that breach are the company's next-generation immunology therapies, Skyrizi and Rinvoq. Through nine months, the two brought in $3.589 billion and $1.752 billion, respectively, in revenue and, combined, are off to a better start than Humira in their first three years.
On top of that, the company has nine late-stage cancer therapies in its pipeline, led by Imbruvica, Venclexta, and Epcoritamab. Blood cancer therapy Imbruvica brought in $3.453 billion in revenue in the first nine months of this year and is in late-stage trials to treat follicular lymphoma and mantle cell lymphoma. Venclexta had $1.493 billion in revenue through nine months and is in Phase 3 trials to treat multiple myeloma and myelodysplastic syndrome. Epcoritamab is being looked at to treat multiple B cell malignancies.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's price-to-earnings ratio of 22 is still relatively low, considering AbbVie's huge pipeline and the likelihood that its Humira patent cliff won't be that steep. Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) have produced strong total returns over the past decade, and both pharmaceutical companies have what it takes to keep up the pace going forward, despite looming patent cliffs for both. Over the past five years, AbbVie's total return is 249%, and Pfizer's is 167%, and given their strong cash flow and ability to purchase assets and develop their own therapies with large pipelines, there are plenty of reasons to see the two dividend stocks doubling your return over the next decade. | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) have produced strong total returns over the past decade, and both pharmaceutical companies have what it takes to keep up the pace going forward, despite looming patent cliffs for both. Over the past five years, AbbVie's total return is 249%, and Pfizer's is 167%, and given their strong cash flow and ability to purchase assets and develop their own therapies with large pipelines, there are plenty of reasons to see the two dividend stocks doubling your return over the next decade. AbbVie: A blue chip trading at a discount AbbVie spun off from Abbott Laboratories in 2013 and since then has increased its dividend by 270%. | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) have produced strong total returns over the past decade, and both pharmaceutical companies have what it takes to keep up the pace going forward, despite looming patent cliffs for both. Over the past five years, AbbVie's total return is 249%, and Pfizer's is 167%, and given their strong cash flow and ability to purchase assets and develop their own therapies with large pipelines, there are plenty of reasons to see the two dividend stocks doubling your return over the next decade. AbbVie: A blue chip trading at a discount AbbVie spun off from Abbott Laboratories in 2013 and since then has increased its dividend by 270%. | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) have produced strong total returns over the past decade, and both pharmaceutical companies have what it takes to keep up the pace going forward, despite looming patent cliffs for both. Over the past five years, AbbVie's total return is 249%, and Pfizer's is 167%, and given their strong cash flow and ability to purchase assets and develop their own therapies with large pipelines, there are plenty of reasons to see the two dividend stocks doubling your return over the next decade. AbbVie: A blue chip trading at a discount AbbVie spun off from Abbott Laboratories in 2013 and since then has increased its dividend by 270%. |
22943.0 | 2022-12-16 00:00:00 UTC | AbbVie Submits SNDA For Linaclotide For Treatment Of Children, Adolescents | ABBV | https://www.nasdaq.com/articles/abbvie-submits-snda-for-linaclotide-for-treatment-of-children-adolescents | nan | nan | (RTTNews) - AbbVie (ABBV) has submitted a supplemental New Drug Application for linaclotide or LINZESS to the FDA for the treatment of children and adolescents 6 to 17 years of age with functional constipation. The sNDA submission is based on results from a Phase 3 clinical trial. The company noted that, if approved, linaclotide would be the first prescription therapy for functional constipation in children and adolescents 6 to 17 years of age.
LINZESS is developed and marketed by AbbVie and Ironwood Pharmaceuticals in the United States. It is currently indicated for the treatment of adults with chronic idiopathic constipation or irritable bowel syndrome with constipation.
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) has submitted a supplemental New Drug Application for linaclotide or LINZESS to the FDA for the treatment of children and adolescents 6 to 17 years of age with functional constipation. LINZESS is developed and marketed by AbbVie and Ironwood Pharmaceuticals in the United States. The company noted that, if approved, linaclotide would be the first prescription therapy for functional constipation in children and adolescents 6 to 17 years of age. | (RTTNews) - AbbVie (ABBV) has submitted a supplemental New Drug Application for linaclotide or LINZESS to the FDA for the treatment of children and adolescents 6 to 17 years of age with functional constipation. LINZESS is developed and marketed by AbbVie and Ironwood Pharmaceuticals in the United States. The company noted that, if approved, linaclotide would be the first prescription therapy for functional constipation in children and adolescents 6 to 17 years of age. | (RTTNews) - AbbVie (ABBV) has submitted a supplemental New Drug Application for linaclotide or LINZESS to the FDA for the treatment of children and adolescents 6 to 17 years of age with functional constipation. LINZESS is developed and marketed by AbbVie and Ironwood Pharmaceuticals in the United States. The company noted that, if approved, linaclotide would be the first prescription therapy for functional constipation in children and adolescents 6 to 17 years of age. | (RTTNews) - AbbVie (ABBV) has submitted a supplemental New Drug Application for linaclotide or LINZESS to the FDA for the treatment of children and adolescents 6 to 17 years of age with functional constipation. LINZESS is developed and marketed by AbbVie and Ironwood Pharmaceuticals in the United States. The sNDA submission is based on results from a Phase 3 clinical trial. |
22944.0 | 2022-12-15 00:00:00 UTC | AbbVie to leave leading U.S. drug industry trade group | ABBV | https://www.nasdaq.com/articles/abbvie-to-leave-leading-u.s.-drug-industry-trade-group | nan | nan | Dec 15 (Reuters) - AbbVie Inc ABBV.N is leaving Pharmaceutical Research and Manufacturers of America (PhRMA), the leading U.S. drug industry group said on Thursday.
Politico, which first reported on AbbVie's exit, said the drugmaker was also leaving the industry group Biotechnology Innovation Organization as well as Business Roundtable, citing a person with knowledge of the matter.
A source familiar with the matter confirmed Reuters about the exits in the Politico report.
Drugmakers suffered a rare defeat earlier this year in failing to stop a bill that allows the government to negotiate prices on select drugs.
Reuters reported in August the pharmaceutical industry spent at least $142.6 million on lobbying Congress and federal agencies in the first half of 2022, more than any industry.
President Joe Biden's signature Inflation Reduction Act will allow the government to choose 10 drugs to negotiate from among the 50 costliest ones for Medicare, the government healthcare program for people aged 65 and older or disabled, starting in 2026.
AbbVie said it regularly evaluated its memberships with industry trade associations and decided not to renew with select trade associations, without naming the groups.
"AbbVie has decided not to renew their membership with PhRMA in 2023. This does not change our focus on fighting for the solutions patients and our health care system need," PhRMA spokesperson Brian Newell said.
(Reporting by Raghav Mahobe and Bhanvi Satija in Bengaluru, Michael Erman in New Jersey; Editing by Krishna Chandra Eluri)
((Raghav.Mahobe@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Dec 15 (Reuters) - AbbVie Inc ABBV.N is leaving Pharmaceutical Research and Manufacturers of America (PhRMA), the leading U.S. drug industry group said on Thursday. Politico, which first reported on AbbVie's exit, said the drugmaker was also leaving the industry group Biotechnology Innovation Organization as well as Business Roundtable, citing a person with knowledge of the matter. AbbVie said it regularly evaluated its memberships with industry trade associations and decided not to renew with select trade associations, without naming the groups. | Dec 15 (Reuters) - AbbVie Inc ABBV.N is leaving Pharmaceutical Research and Manufacturers of America (PhRMA), the leading U.S. drug industry group said on Thursday. Politico, which first reported on AbbVie's exit, said the drugmaker was also leaving the industry group Biotechnology Innovation Organization as well as Business Roundtable, citing a person with knowledge of the matter. AbbVie said it regularly evaluated its memberships with industry trade associations and decided not to renew with select trade associations, without naming the groups. | Dec 15 (Reuters) - AbbVie Inc ABBV.N is leaving Pharmaceutical Research and Manufacturers of America (PhRMA), the leading U.S. drug industry group said on Thursday. Politico, which first reported on AbbVie's exit, said the drugmaker was also leaving the industry group Biotechnology Innovation Organization as well as Business Roundtable, citing a person with knowledge of the matter. AbbVie said it regularly evaluated its memberships with industry trade associations and decided not to renew with select trade associations, without naming the groups. | Dec 15 (Reuters) - AbbVie Inc ABBV.N is leaving Pharmaceutical Research and Manufacturers of America (PhRMA), the leading U.S. drug industry group said on Thursday. Politico, which first reported on AbbVie's exit, said the drugmaker was also leaving the industry group Biotechnology Innovation Organization as well as Business Roundtable, citing a person with knowledge of the matter. "AbbVie has decided not to renew their membership with PhRMA in 2023. |
22945.0 | 2022-12-14 00:00:00 UTC | AbbVie (ABBV) Gains As Market Dips: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-as-market-dips%3A-what-you-should-know-5 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $164.86, moving +0.04% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the drugmaker had gained 7.68% over the past month. This has outpaced the Medical sector's gain of 5.48% and the S&P 500's gain of 0.89% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.67, up 10.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.38 billion, up 3.29% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. These results would represent year-over-year changes of +9.13% and +3.76%, respectively.
It is also important to note the recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.06% lower. AbbVie currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 11.89. Its industry sports an average Forward P/E of 15.08, so we one might conclude that AbbVie is trading at a discount comparatively.
Meanwhile, ABBV's PEG ratio is currently 4.69. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.15 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 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $164.86, moving +0.04% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. | AbbVie (ABBV) closed the most recent trading day at $164.86, moving +0.04% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. | AbbVie (ABBV) closed the most recent trading day at $164.86, moving +0.04% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. | AbbVie (ABBV) closed the most recent trading day at $164.86, moving +0.04% from the previous trading session. AbbVie currently has a Zacks Rank of #3 (Hold). AbbVie will be looking to display strength as it nears its next earnings release. |
22946.0 | 2022-12-13 00:00:00 UTC | Reliable Passive Income: an Analysis on Dividend Kings | ABBV | https://www.nasdaq.com/articles/reliable-passive-income%3A-an-analysis-on-dividend-kings | nan | nan | In this video, Motley Fool Contributor, Mark Roussin, analyzes all 47 Dividend King stocks. These companies are a great way to diversify your portfolio with a proven track record for dividend payments.
Dividend Kings include the likes of Johnson & Johnson (NYSE: JNJ), Coca-Cola Co (NYSE: KO), Procter & Gamble (NYSE: PG), and Altria Group (NYSE: MO)to name a few.
Check out the video below to see every Dividend King and consider subscribing to the channel.
*Stock prices used were end-of-day prices of Dec. 9, 2022. The video was published on Dec. 12, 2022.
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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. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Mark Roussin, CPA has positions in 3m, AbbVie, Altria Group, Coca-Cola, and Johnson & Johnson. In this video, Motley Fool Contributor, Mark Roussin, analyzes all 47 Dividend King stocks. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Mark Roussin, CPA has positions in 3m, AbbVie, Altria Group, Coca-Cola, and Johnson & Johnson. In this video, Motley Fool Contributor, Mark Roussin, analyzes all 47 Dividend King stocks. Dividend Kings include the likes of Johnson & Johnson (NYSE: JNJ), Coca-Cola Co (NYSE: KO), Procter & Gamble (NYSE: PG), and Altria Group (NYSE: MO)to name a few. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Mark Roussin, CPA has positions in 3m, AbbVie, Altria Group, Coca-Cola, and Johnson & Johnson. In this video, Motley Fool Contributor, Mark Roussin, analyzes all 47 Dividend King stocks. The Motley Fool recommends 3m, Becton, Dickinson And, Johnson & Johnson, Lowe's Companies, and Tennant and recommends the following options: long January 2023 $50 calls on Sysco, long January 2024 $47.50 calls on Coca-Cola, and short January 2023 $85 calls on Sysco. | See the 10 stocks *Stock Advisor returns as of December 1, 2022 Mark Roussin, CPA has positions in 3m, AbbVie, Altria Group, Coca-Cola, and Johnson & Johnson. Check out the video below to see every Dividend King and consider subscribing to the channel. Their opinions remain their own and are unaffected by The Motley Fool. |
22947.0 | 2022-12-10 00:00:00 UTC | AbbVie Presents Data For Navitoclax Combination For JAK Inhibitor-Naïve Myelofibrosis Patients | ABBV | https://www.nasdaq.com/articles/abbvie-presents-data-for-navitoclax-combination-for-jak-inhibitor-naive-myelofibrosis | nan | nan | (RTTNews) - AbbVie (ABBV) said the exploratory analysis from Cohort 3 of the Phase 2 REFINE study of investigational navitoclax in combination with ruxolitinib in JAK inhibitor-naïve patients with myelofibrosis suggested that the combination led to reductions in bone marrow fibrosis (BMF) and variant allele frequency (VAF) for common genetic mutations found in individuals with myelofibrosis that may indicate disease modification.
The findings were shared in an oral presentation at the 64th American Society of Hematology Annual Meeting & Exposition(ASH).
Preliminary safety analysis identified no new safety signals. Twenty-five (78 percent) patients reported one or more adverse events (AE).
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 the exploratory analysis from Cohort 3 of the Phase 2 REFINE study of investigational navitoclax in combination with ruxolitinib in JAK inhibitor-naïve patients with myelofibrosis suggested that the combination led to reductions in bone marrow fibrosis (BMF) and variant allele frequency (VAF) for common genetic mutations found in individuals with myelofibrosis that may indicate disease modification. The findings were shared in an oral presentation at the 64th American Society of Hematology Annual Meeting & Exposition(ASH). Twenty-five (78 percent) patients reported one or more adverse events (AE). | (RTTNews) - AbbVie (ABBV) said the exploratory analysis from Cohort 3 of the Phase 2 REFINE study of investigational navitoclax in combination with ruxolitinib in JAK inhibitor-naïve patients with myelofibrosis suggested that the combination led to reductions in bone marrow fibrosis (BMF) and variant allele frequency (VAF) for common genetic mutations found in individuals with myelofibrosis that may indicate disease modification. Preliminary safety analysis identified no new safety signals. 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 the exploratory analysis from Cohort 3 of the Phase 2 REFINE study of investigational navitoclax in combination with ruxolitinib in JAK inhibitor-naïve patients with myelofibrosis suggested that the combination led to reductions in bone marrow fibrosis (BMF) and variant allele frequency (VAF) for common genetic mutations found in individuals with myelofibrosis that may indicate disease modification. The findings were shared in an oral presentation at the 64th American Society of Hematology Annual Meeting & Exposition(ASH). 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 the exploratory analysis from Cohort 3 of the Phase 2 REFINE study of investigational navitoclax in combination with ruxolitinib in JAK inhibitor-naïve patients with myelofibrosis suggested that the combination led to reductions in bone marrow fibrosis (BMF) and variant allele frequency (VAF) for common genetic mutations found in individuals with myelofibrosis that may indicate disease modification. The findings were shared in an oral presentation at the 64th American Society of Hematology Annual Meeting & Exposition(ASH). Preliminary safety analysis identified no new safety signals. |
22948.0 | 2022-12-10 00:00:00 UTC | 2 Ultra-Reliable Dividend Stocks You Can Buy Now and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-ultra-reliable-dividend-stocks-you-can-buy-now-and-hold-forever | nan | nan | Investors who want to put their money to work for them in the stock market are justifiably nervous about buying shares of anything lately. The benchmark S&P 500 index that tracks the largest publicly traded businesses is down a frightening 17% from the peak it reached in January. The Nasdaq Composite index, which tracks a lot more growth stocks than the S&P 500, is down a stunning 30% from the peak it set less than a year ago.
Rather than completely staying on the sidelines, cautious investors are increasingly attracted to dividend-paying stocks. With inflation on the rise, it's easy to understand why. According to Fidelity, dividend stocks in the S&P 500 contributed 54% of the index's total return during periods when inflation averaged 5% or higher.
Image source: Getty Images.
We know that dividend-paying stocks generally outperform companies that haven't committed to distributing profits. We also know that not all dividend payers have what it takes to maintain and raise their quarterly payouts.
Investors who want a positive long-term return that they can rely on should consider these dividend-paying stocks. Both have a long history of raising their dividend payouts. There's also a good chance they can continue the tradition for many years to come.
AbbVie
AbbVie (NYSE: ABBV) was the biopharmaceutical segment of Abbott Laboratories until it spun off as a separate company nearly a decade ago. Abbott Laboratories recently declared its 394th consecutive quarterly dividend payment, and it's increased that payment every year for 50 consecutive years.
AbbVie has continued Abbott's commitment to steadily increasing its dividend year after year but at a much faster pace. The drugmaker's payout has soared a whopping 270% since 2013.
At recent prices, shares of AbbVie offer an above-average 3.6% yield. This is well above the average yield paid by dividend stocks in the S&P 500, which is a paltry 1.7% right now.
AbbVie offers an above-average dividend yield right now because U.S. sales of its lead drug, Humira, will fall in response to competition from lower-priced biosimilar versions that will enter the market in 2023.
Humira's an anti-inflammation injection mainly used to treat arthritis and psoriasis. In 2018, AbbVie launched Rinvoq to treat arthritis and Skyrizi to treat psoriasis, and they're already on pace to offset impending Humira losses. The pair are already on pace to generate $8.4 billion annually and AbbVie expects more than $15 billion in 2025.
Johnson & Johnson
If you're impressed by AbbVie's and Abbott's commitment to dividend growth, just wait until you hear about Johnson & Johnson (NYSE: JNJ). This April the company increased its quarterly payout for the 60th year in a row.
You're no doubt familiar with J&J's consumer health brands because it practically invented the industry over a century ago. For several years, though, the company's pharmaceutical segment has been responsible for a majority of total revenue and an even larger share of total profits. For this reason, the company will spin off its consumer health business into a separate entity to be named Kenvue in the second half of 2023.
At recent prices, shares of J&J offer a 2.6% yield that investors can depend on to continue growing. The company used three-fifths of its earnings over the past year to meet its dividend obligation. This is a reasonable payout ratio that should give J&J enough flexibility to adjust its dividend in line with earnings growth over the next several years.
Investors can look forward to J&J's drug development pipeline driving growth for the business that remains. Management expects annual pharmaceutical sales to rise from $52 billion in 2021 to $60 billion in 2025. Buying J&J stock now, then holding it through the Kenvue spin-off and over the long run gives you a great chance to come out way ahead.
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Cory Renauer 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. 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 offers an above-average dividend yield right now because U.S. sales of its lead drug, Humira, will fall in response to competition from lower-priced biosimilar versions that will enter the market in 2023. AbbVie AbbVie (NYSE: ABBV) was the biopharmaceutical segment of Abbott Laboratories until it spun off as a separate company nearly a decade ago. AbbVie has continued Abbott's commitment to steadily increasing its dividend year after year but at a much faster pace. | At recent prices, shares of AbbVie offer an above-average 3.6% yield. AbbVie AbbVie (NYSE: ABBV) was the biopharmaceutical segment of Abbott Laboratories until it spun off as a separate company nearly a decade ago. AbbVie has continued Abbott's commitment to steadily increasing its dividend year after year but at a much faster pace. | AbbVie has continued Abbott's commitment to steadily increasing its dividend year after year but at a much faster pace. Johnson & Johnson If you're impressed by AbbVie's and Abbott's commitment to dividend growth, just wait until you hear about Johnson & Johnson (NYSE: JNJ). AbbVie AbbVie (NYSE: ABBV) was the biopharmaceutical segment of Abbott Laboratories until it spun off as a separate company nearly a decade ago. | AbbVie has continued Abbott's commitment to steadily increasing its dividend year after year but at a much faster pace. AbbVie AbbVie (NYSE: ABBV) was the biopharmaceutical segment of Abbott Laboratories until it spun off as a separate company nearly a decade ago. At recent prices, shares of AbbVie offer an above-average 3.6% yield. |
22949.0 | 2022-12-09 00:00:00 UTC | Pharma Stock Roundup: SNY, GSK, PFE Relieved on Zantac Win & Other Updates | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-sny-gsk-pfe-relieved-on-zantac-win-other-updates | nan | nan | This week, a U.S. district court dismissed thousands of lawsuits involving the heartburn drug Zantac, pushing up stocks of GSK GSK, Sanofi SNY and Pfizer PFE. Pfizer/BioNTech received FDA’s emergency approval for Omicron BA.4/BA.5-adapted COVID vaccine for kinds under five years of age. Pfizer and AbbVie ABBV announced research collaborations with private biotechs. Novartis’ NVS pipeline candidate, iptacopan provided clinically meaningful increases in hemoglobin levels in complement-inhibitor-naïve patients with paroxysmal nocturnal hemoglobinuria (PNH).
Recap of the Week’s Most Important Stories
U.S. Court Dismisses Zantac Lawsuit, Relief to GSK, SNY, PFE: A Multi-District Litigation (MDL) court of Southern Florida dismissed all lawsuits alleging that heartburn drug Zantac (ranitidine) causes cancer.
In the MDL, plaintiffs identified five different types of cancers (liver, bladder, pancreatic, esophageal, and stomach). There were around 50,000 claims in the MDL. The court has dismissed all MDL cases alleging the five cancers.
The U.S. district court verdict brought relief to companies like GSK, Sanofi and Pfizer, which marketed prescription or over-the-counter (OTC) Zantac (ranitidine) medicines. If the claims in the MDL had been proved, the liabilities of these drugmakers could have been in billions. Several personal injury cases were filed in federal and state courts, alleging that Zantac (ranitidine) medicines cause cancer. However, GSK, Pfizer, Sanofi, all denied that Zantac causes cancer, citing scientific consensus. Though several thousands of cases remain pending in various U.S. state courts and the MDL ruling can still be appealed, it meaningfully reduces the companies’ liabilities and removes a major overhang.
Novartis’ PNH Candidate Meets Goal in Phase III Study: Novartis’ phase III study (APPOINT-PNH) evaluating investigational oral monotherapy iptacopan in complement-inhibitor-naïve patients with PNH met the primary endpoint. Top-line data from the study showed that a significantly greater proportion of patients who were given iptacopan (200 mg twice daily) experienced clinically meaningful increases of 2 g/dL or more in hemoglobin-level from baseline without the need for blood transfusions. APPOINT-PNH is the second study on iptacopan in PNH. The first pivotal study, APPLY-PNH, also met its two primary endpoints. Top-line results for the pivotal APPLY-PNH were announced in October. In the study, iptacopan demonstrated clinically meaningful superiority over anti-C5 treatments. Novartis will include APPOINT-PNH data in the regulatory filings of iptacopan in 2023.
Novartis’ pivotal phase III PSMAfore study evaluating Pluvicto for treating patients with PSMA–positive metastatic castration-resistant prostate cancer (mCRPC) who have been treated with androgen-receptor pathway inhibitor therapy met its primary endpoint. In the study, Pluvicto demonstrated a statistically significant and clinically meaningful improvement in radiographic progression-free survival. This is the second phase III study on Pluvicto that has met the primary endpoint. Earlier, the phase III VISION study showed that patients with PSMA–positive mCRPC who received Pluvicto plus standard of care after being treated with other anticancer treatments like ARPI and taxane-based chemotherapy experienced statistically significant reduction in risk of death. Novartis will discuss PSMAfore phase III data with the FDA next year to seek label expansion approval. Pluvicto was approved to treat PSMA–positive mCRPC who have been treated with ARPI and taxane-based chemotherapy in the United States in March based on data from the VISION study.
Pfizer Gets FDA Nod for Omicron Jab in Kids Under 5: The FDA granted emergency approval to Pfizer/BioNTech’s Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine as the third dose (3-µg) in its three-dose primary series for children under five years of age. The approval for the Omicron BA.4/BA.5 jab in this age group is not as a booster but as part of the primary series. Children in this age group get three doses as their primary series. With the emergency approval of the Omicron BA.4/BA.5-adapted vaccine, kids in the six months through four years age group would get two 3-µg doses of the original Pfizer-BioNTech COVID-19 vaccine followed by a third 3-µg dose of the Omicron BA.4/BA.5-adapted bivalent vaccine as part of their three-dose primary series Pfizer is ready to ship the doses immediately once the U.S. Centers for Disease Control and Prevention ("CDC") recommends their use.
Pfizer/BioNTech’s Omicron BA.4/BA.5-adapted bivalent vaccine is authorized as a booster shot for people five years and above in the United States and European Union (EU).
The FDA accepted and granted priority review to Pfizer’s biologics license application (BLA) seeking approval for its bivalent respiratory syncytial virus (RSV) vaccine candidate, RSVpreF for the prevention of lower respiratory tract disease caused by RSV in older adults (aged 60 and above). The FDA’s decision is expected in May 2023.
Pfizer formed a research collaboration with Clear Creek Bio to develop a papain-like protease (PLpro) inhibitor, a new class of oral antivirals for treating COVID-19. Once the companies identify a PLpro candidate, Pfizer will take care of further development and commercialization activities.
AbbVie’s New Collaboration and Option Deal: AbbVie announced a strategic worldwide collaboration and option to license deal with HotSpot Therapeutics for its discovery-stage, small molecule IRF5 inhibitor for the treatment of autoimmune diseases. For the deal, AbbVie will pay HotSpot an upfront cash payment of $40 million, with the latter also being entitled to up to $295 million in option fees and research and development milestones and potential commercial milestone payments.
The NYSE ARCA Pharmaceutical Index rose 0.56% in the last five trading sessions.
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AbbVie rose the most (2.7%), while Roche declined the most (1.6%).
In the past six months, all the stocks were in the green, with Merck gaining the most (27.2%).
(See the last pharma stock roundup here: PFE & AZN Ink New M&A Deals, LLY Meets Alzheimer’s Study Goal)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pfizer and AbbVie ABBV announced research collaborations with private biotechs. AbbVie’s New Collaboration and Option Deal: AbbVie announced a strategic worldwide collaboration and option to license deal with HotSpot Therapeutics for its discovery-stage, small molecule IRF5 inhibitor for the treatment of autoimmune diseases. For the deal, AbbVie will pay HotSpot an upfront cash payment of $40 million, with the latter also being entitled to up to $295 million in option fees and research and development milestones and potential commercial milestone payments. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Pfizer and AbbVie ABBV announced research collaborations with private biotechs. AbbVie’s New Collaboration and Option Deal: AbbVie announced a strategic worldwide collaboration and option to license deal with HotSpot Therapeutics for its discovery-stage, small molecule IRF5 inhibitor for the treatment of autoimmune diseases. | Click to get this free report Sanofi (SNY) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Pfizer and AbbVie ABBV announced research collaborations with private biotechs. AbbVie’s New Collaboration and Option Deal: AbbVie announced a strategic worldwide collaboration and option to license deal with HotSpot Therapeutics for its discovery-stage, small molecule IRF5 inhibitor for the treatment of autoimmune diseases. | Image Source: Zacks Investment Research In the last five trading sessions, AbbVie rose the most (2.7%), while Roche declined the most (1.6%). Pfizer and AbbVie ABBV announced research collaborations with private biotechs. AbbVie’s New Collaboration and Option Deal: AbbVie announced a strategic worldwide collaboration and option to license deal with HotSpot Therapeutics for its discovery-stage, small molecule IRF5 inhibitor for the treatment of autoimmune diseases. |
22950.0 | 2022-12-09 00:00:00 UTC | Have $1,000? 2 Top Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/have-%241000-2-top-dividend-stocks-to-buy-right-now | nan | nan | Even in the current inflationary environment, where stocks across a wide variety of sectors are trading down, companies with a favorable history of growing investor returns in a range of markets are still ripe for the taking.
If you're looking to add more dividend stocks to your portfolio this month, it's important to focus on companies that not only regularly increase their payout to investors but have a long track record of maintaining their dividends even in difficult environments.
Here are two such top dividend stocks to consider adding to your portfolio ASAP.
1. AbbVie
AbbVie (NYSE: ABBV) originated as a spin-off of Abbott Laboratories nearly a decade ago, and in doing so, inherited its predecessor's dividend history. AbbVie holds a coveted spot on the list of Dividend Kings. The stock, which currently yields 3.6% for investors, has seen its dividend rise by approximately 270% in the decade since it became an independent company. In turn, the stock has delivered a total return of 606% for investors in that same period.
AbbVie is known by many investors for its blockbuster product, Humira. Patent exclusivity for the world's top-selling drug, which brought in about $21 billion in revenue in 2021 alone, is set to expire in the U.S. in 2023. It already expired in Europe in 2018.
Some investors have been concerned about AbbVie's long-term growth story once generic competition ramps up, and as sales from Humira inevitably wane. However, Humira is far from the only product upon which AbbVie can rely to drive forward long-term growth.
AbbVie boasts an incredibly diversified portfolio of products that span areas ranging from women's health to immunology to oncology. Among a variety of products, its 2020 acquisition of Allergan also added Botox Therapeutic and Botox Cosmetic to its portfolio, which are proving to be key sources of growth for AbbVie.
In the first nine months of 2022, AbbVie's net revenue grew 4% year over year to $43 billion, while its net earnings for the same period jumped 25% year over year to $9.4 billion. And over the past decade, AbbVie's annual revenue and net income has grown by 206% and 119%, respectively.
If it's a diversified healthcare business you're looking for, with a strong dividend history and a track record of delivering enviable balance sheet and shareholder returns, AbbVie fits the bill on all counts.
2. Kimberly-Clark
In a challenging macro environment where consumers are regulating their spending, you're not alone if you find yourself shying away from stocks that might be directly impacted by these trends. However, a household name and consumer staples giant like Kimberly-Clark (NYSE: KMB) has the staying power to ride out the current environment and beyond.
In terms of its dividend, Kimberly-Clark currently yields a robust 3.4% for investors. It has not only paid but raised its dividend for 50 consecutive years and counting. And over the past decade, the company has grown its dividend by more than 40%. Shareholders who held on to the stock through the entire trailing-10-year period would have benefited from its total return of about 130%.
From feminine care to baby products, most of the items that Kimberly-Clark sells are considered daily essentials that people will need no matter what's happening with the market or the economy at large. In fact, the company estimates that roughly one-quarter of the entire global population relies on its products as a part of daily life. Kimberly-Clark counts well-known names like Kleenex, Cottonelle, Huggies, and Pull-Ups among its family of brands.
Supply chain disruptions and inflation have weighed on Kimberly-Clark's margins and bottom line in recent financial reports, but it has nonetheless continued to generate consistent revenue growth and profitability. In the most recent quarter, the company reported total revenue of $5.1 billion, up 1% year over year, while it generated net income to the tune of $470 million for the three-month period.
Kimberly-Clark's resilient business can drive growth even in a changing macro environment, which makes the consumer staples stock a worthwhile addition to the long-term income investor's portfolio.
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Rachel Warren has positions in AbbVie. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) originated as a spin-off of Abbott Laboratories nearly a decade ago, and in doing so, inherited its predecessor's dividend history. AbbVie holds a coveted spot on the list of Dividend Kings. AbbVie is known by many investors for its blockbuster product, Humira. | In the first nine months of 2022, AbbVie's net revenue grew 4% year over year to $43 billion, while its net earnings for the same period jumped 25% year over year to $9.4 billion. And over the past decade, AbbVie's annual revenue and net income has grown by 206% and 119%, respectively. AbbVie AbbVie (NYSE: ABBV) originated as a spin-off of Abbott Laboratories nearly a decade ago, and in doing so, inherited its predecessor's dividend history. | In the first nine months of 2022, AbbVie's net revenue grew 4% year over year to $43 billion, while its net earnings for the same period jumped 25% year over year to $9.4 billion. AbbVie AbbVie (NYSE: ABBV) originated as a spin-off of Abbott Laboratories nearly a decade ago, and in doing so, inherited its predecessor's dividend history. AbbVie holds a coveted spot on the list of Dividend Kings. | However, Humira is far from the only product upon which AbbVie can rely to drive forward long-term growth. AbbVie AbbVie (NYSE: ABBV) originated as a spin-off of Abbott Laboratories nearly a decade ago, and in doing so, inherited its predecessor's dividend history. AbbVie holds a coveted spot on the list of Dividend Kings. |
22951.0 | 2022-12-09 00:00:00 UTC | Notable Friday Option Activity: ABBV, FCX, ITGR | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-abbv-fcx-itgr | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 24,265 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 44.3% of ABBV's average daily trading volume over the past month of 5.5 million shares. Especially high volume was seen for the $165 strike call option expiring December 16, 2022, with 3,448 contracts trading so far today, representing approximately 344,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange:
Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 57,526 contracts thus far today. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 43.3% of FCX's average daily trading volume over the past month, of 13.3 million shares. Especially high volume was seen for the $42 strike call option expiring January 20, 2023, with 6,766 contracts trading so far today, representing approximately 676,600 underlying shares of FCX. Below is a chart showing FCX's trailing twelve month trading history, with the $42 strike highlighted in orange:
And Integer Holdings Corp (Symbol: ITGR) options are showing a volume of 800 contracts thus far today. That number of contracts represents approximately 80,000 underlying shares, working out to a sizeable 43.2% of ITGR's average daily trading volume over the past month, of 185,305 shares. Particularly high volume was seen for the $50 strike put option expiring December 16, 2022, with 786 contracts trading so far today, representing approximately 78,600 underlying shares of ITGR. Below is a chart showing ITGR's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for ABBV options, FCX options, or ITGR options, visit StockOptionsChannel.com.
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EVRG Average Annual Return
KCGI shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $165 strike call option expiring December 16, 2022, with 3,448 contracts trading so far today, representing approximately 344,800 underlying shares of ABBV. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 24,265 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 44.3% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 57,526 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 24,265 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 44.3% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 24,265 contracts have traded so far, representing approximately 2.4 million underlying shares. Especially high volume was seen for the $165 strike call option expiring December 16, 2022, with 3,448 contracts trading so far today, representing approximately 344,800 underlying shares of ABBV. That amounts to about 44.3% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Especially high volume was seen for the $165 strike call option expiring December 16, 2022, with 3,448 contracts trading so far today, representing approximately 344,800 underlying shares of ABBV. Below is a chart showing ITGR's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for ABBV options, FCX options, or ITGR options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 24,265 contracts have traded so far, representing approximately 2.4 million underlying shares. |
22952.0 | 2022-12-08 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-6 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $165.99, marking a +0.36% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the drugmaker had gained 12.04% over the past month, outpacing the Medical sector's gain of 5.42% and the S&P 500's gain of 3.49% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.67 per share. This would mark 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.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. These results would represent year-over-year changes of +9.13% and +3.76%, respectively.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. 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 11.93 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.08.
Also, we should mention that ABBV has a PEG ratio of 4.71. 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. ABBV's industry had an average PEG ratio of 2.03 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $165.99, marking a +0.36% move from the previous day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | In the latest trading session, AbbVie (ABBV) closed at $165.99, marking a +0.36% move from the previous day. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $58.31 billion. In the latest trading session, AbbVie (ABBV) closed at $165.99, marking a +0.36% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | In the latest trading session, AbbVie (ABBV) closed at $165.99, marking a +0.36% move from the previous day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.67 per share. |
22953.0 | 2022-12-08 00:00:00 UTC | 2 Forever Stocks You Can Buy and Forget About | ABBV | https://www.nasdaq.com/articles/2-forever-stocks-you-can-buy-and-forget-about | nan | nan | If you're investing for the very long term (i.e., forever), then the good news is you don't need to worry about what's happening with the economy. Over the years, the economy has recovered from wars, recessions, and everything else in between. While many businesses have failed during that time, companies with solid fundamentals and quality products behind them are safe bets to stand the test of time.
A couple of potential stocks that you can confidently hold forever are AbbVie (NYSE: ABBV) and Coca-Cola (NYSE: KO). Not only are these moneymaking machines, but they also dish out a lot of cash to their shareholders through dividends. Year to date, they've both delivered positive gains and are doing better than the S&P 500.
1. AbbVie
What makes AbbVie a solid buy-and-hold investment is that the company is diverse, has excellent margins, and generates plenty of free cash flow. Those are solid pillars that can enable the business to continually grow over the years.
The company's pipeline features projects that span many therapeutic areas, including oncology, immunology, neuroscience, aesthetics, and eye care. AbbVie has dozens of trials ongoing, many of which are in phase 3 and near the finish line.
This year, it has several drugs that have already generated more than $1 billion in revenue, including immunology treatments Skyrizi and Rinvoq, two products that will pick up the slack from the inevitable decline in revenue from top-selling rheumatoid arthritis drug Humira, which loses exclusivity next year and has amassed nearly $16 billion in sales over the past three quarters. Investors are concerned about its patent cliff, but management is confident the duo of Skyrizi and Rinvoq could reach a higher combined peak.
The reality is that every successful healthcare company will have to worry about replacing its top-selling products at some point. Patents don't last forever, and long-term healthcare investors should instead prioritize investing in businesses like AbbVie with solid fundamentals that can either acquire a big business (like its mammoth $63 billion acquisition of Botox-maker Allergan in 2020) or afford to invest in research and development and work on strengthening its pipeline, which AbbVie has done.
With revenue of $57.8 billion and a strong profit of $13.3 billion over the trailing 12 months, AbbVie's strong fundamentals put it in a fantastic position to continue growing while withstanding adversity. It has also accumulated a free cash flow of $21.9 billion during the past four quarters. To further incentivize long-term investors, AbbVie also pays a dividend yield of 3.6% (better than the S&P 500 average of 1.7%) and is a Dividend King.
The stock currently trades at a multiple of 22 times earnings, which is in line with the healthcare average. AbbVie is an all-around solid investment to buy and hold for the rest of your life.
2. Coca-Cola
A top consumer goods company like Coca-Cola doesn't always have to reinvent new products as it can rely on the success of its top brands for decades, building off multiple variations of it. But the company has also diversified into healthier products so that it isn't overly dependent on just a few product lines. With hundreds of brands in its portfolio, Coca-Cola can serve many types of customers.
In its most recent earnings results (for the period ended Sept. 30), the company's sales rose by 10% from the prior-year period to $11.1 billion. While its trademark Coca-Cola products gained 3%, it was its Coca-Cola Zero Sugar brand that jumped by a more impressive 11%. Even its hydration, sports, and coffee and tea products generated more growth at 5%. The growth rates are encouraging and suggest that the diversification Coca-Cola has achieved over the years has made the business more resilient and a better buy in the long haul.
The company has generated a profit of $9.9 billion over the past four quarters on revenue of $42.3 billion, for an impressive profit margin of 23%. Free cash flow during that time has also been strong at over $10 billion.
Like AbbVie, Coca-Cola is a Dividend King, and its yield is relatively high at 2.7%. At 28 times earnings, the stock is a bit expensive (the S&P 500 average is 20), but that could improve over the years as the economy recovers and with the business still finding ways to grow. For a top company such as Coca-Cola, it's easy for investors to justify a bit of a premium, given how solid its operations are.
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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 potential stocks that you can confidently hold forever are AbbVie (NYSE: ABBV) and Coca-Cola (NYSE: KO). AbbVie What makes AbbVie a solid buy-and-hold investment is that the company is diverse, has excellent margins, and generates plenty of free cash flow. AbbVie has dozens of trials ongoing, many of which are in phase 3 and near the finish line. | Patents don't last forever, and long-term healthcare investors should instead prioritize investing in businesses like AbbVie with solid fundamentals that can either acquire a big business (like its mammoth $63 billion acquisition of Botox-maker Allergan in 2020) or afford to invest in research and development and work on strengthening its pipeline, which AbbVie has done. A couple of potential stocks that you can confidently hold forever are AbbVie (NYSE: ABBV) and Coca-Cola (NYSE: KO). AbbVie What makes AbbVie a solid buy-and-hold investment is that the company is diverse, has excellent margins, and generates plenty of free cash flow. | AbbVie What makes AbbVie a solid buy-and-hold investment is that the company is diverse, has excellent margins, and generates plenty of free cash flow. Patents don't last forever, and long-term healthcare investors should instead prioritize investing in businesses like AbbVie with solid fundamentals that can either acquire a big business (like its mammoth $63 billion acquisition of Botox-maker Allergan in 2020) or afford to invest in research and development and work on strengthening its pipeline, which AbbVie has done. A couple of potential stocks that you can confidently hold forever are AbbVie (NYSE: ABBV) and Coca-Cola (NYSE: KO). | A couple of potential stocks that you can confidently hold forever are AbbVie (NYSE: ABBV) and Coca-Cola (NYSE: KO). AbbVie What makes AbbVie a solid buy-and-hold investment is that the company is diverse, has excellent margins, and generates plenty of free cash flow. AbbVie has dozens of trials ongoing, many of which are in phase 3 and near the finish line. |
22954.0 | 2022-12-08 00:00:00 UTC | 3 Hot Stocks That Could Live Up to Their Lofty Valuations | ABBV | https://www.nasdaq.com/articles/3-hot-stocks-that-could-live-up-to-their-lofty-valuations | nan | nan | Green Thumb Industries (OTC: GTBIF), SunPower (NASDAQ: SPWR) and Genmab (NASDAQ: GMAB) are all up this month, and are trading for at least 35 times earnings. Instead of being overpriced, though, there are solid reasons investors see potential in these hot stocks.
All three have debt-to-equity ratios below 0.90 and double-digit year-over-year revenue growth in their most recent quarters, allowing them to benefit from the expected growth in their relative industries.
Why Green Thumb International is worth its price
Green Thumb Industries is that rare cannabis retailer that is turning a profit despite industry headwinds such as inflation and cannabis oversupply. The company's shares are up 4% in the past month, and the stock has a price-to-earnings ratio (P/E) of 41. The reason Green Thumb stock could still go higher is it is well placed to benefit from the growth in cannabis sales in the coming years.
Not every cannabis company will be around a decade from now, and the survivors are the ones showing they can increase sales and stay profitable at the same time -- and Green Thumb is showing that.
In the third quarter the company reported revenue of $261 million, up 12% year over year and 3% over the second quarter. Through nine months, the company had revenue of $758 million, up 17% over the same period last year. It reported $10 million in net income, its 10th consecutive quarter of profit.
The company has 77 retail locations and had operations across 15 U.S. states, and said it expects to surpass $1 billion in annual revenue for the first time this year, meaning it has increased revenue by 1,328% since 2016. It already has a presence in four states that have approved adult-use sales but haven't yet opened up officially to retailers: Connecticut, New York, Virginia, and Maryland. All four states are considered to be highly lucrative, so Green Thumb's revenue will likely get a bump in the near future.
The company also made a big splash when it announced it was working with Circle K convenience stores in Florida to open up Green Thumb's Rise Express dispensaries on property adjacent to Circle K stores. Though the initial effort is modest -- 10 test dispensaries -- the idea has significant potential, because Circle K has 600 stores in the state.
Why SunPower is worth its price
SunPower's shares are up almost 27% in the past month, and it has a P/E of 44, reflecting investors' optimism about green energy companies.
The company specializes in selling and servicing home solar-power systems. It should continue to benefit from an increased focus on renewable energy, and specifically the Inflation Reduction Act. The legislation, which was passed in August, provides tax credits that promote home solar power use.
It already seems to be having an impact. In the first quarter since the act's passage, SunPower reported revenue of $475.7 million, up 67% year over year. Through nine months, the company said it had revenue of $1.24 billion, up 58% over the same period last year. SunPower ended the quarter with 23,000 new customers, a company record, and a rise of 63% over the same period last year. The company also reported third-quarter net income of $139 million compared to a loss of $72.7 million.
Why GenMab is worth its price
Genmab is a biotech company that focuses on novel antibodies to fight cancer and other diseases. The company's shares are up more than 14% over the past month, and its P/E is 37. It has been very successful in partnering with larger pharmaceutical companies.
Through nine months, the company reported revenue of $1.36 million, up 60% year over year, led by increased royalty sales from multiple myeloma therapy Darzalex, the multiple sclerosis treatment Kesimpta, and thyroid eye disease therapy Tepezza -- under collaboration agreements, respectively, with Johnson & Johnson subsidiary Janssen, Novartis, and Roche.
Darzalex, and its subcutaneous version Darzalex Faspro, was the biggest driver. In the third quarter alone, the drug had sales of $2.05 billion, up 30% year over year.
The company has another potential blockbuster in Epcoritamab. Genmab and collaboration partner AbbVie submitted their Biologics License Application submission to the Food and Drug Administration (FDA) to treat relapsed and refractory large B-cell lymphoma (LBCL) on Nov. 21. The drug has a Prescription Drug User Fee Act (PDUFA) target date of May 21, 2023. The LBCL population is small, affecting about five in 100,000 people, according to the National Cancer Institute, but an approval would open the door for Epcoritamab to add other B-cell malignancies to its indications.
Genmab also posted net income through nine months of $377 million, up 281% over the same period last year.
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Jim Halley has positions in AbbVie, Johnson & Johnson, and SunPower. The Motley Fool has positions in and recommends Genmab A/s and Green Thumb Industries. The Motley Fool recommends Johnson & Johnson and Roche Ag. 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. | Genmab and collaboration partner AbbVie submitted their Biologics License Application submission to the Food and Drug Administration (FDA) to treat relapsed and refractory large B-cell lymphoma (LBCL) on Nov. 21. Learn more Jim Halley has positions in AbbVie, Johnson & Johnson, and SunPower. Through nine months, the company reported revenue of $1.36 million, up 60% year over year, led by increased royalty sales from multiple myeloma therapy Darzalex, the multiple sclerosis treatment Kesimpta, and thyroid eye disease therapy Tepezza -- under collaboration agreements, respectively, with Johnson & Johnson subsidiary Janssen, Novartis, and Roche. | Genmab and collaboration partner AbbVie submitted their Biologics License Application submission to the Food and Drug Administration (FDA) to treat relapsed and refractory large B-cell lymphoma (LBCL) on Nov. 21. Learn more Jim Halley has positions in AbbVie, Johnson & Johnson, and SunPower. Why Green Thumb International is worth its price Green Thumb Industries is that rare cannabis retailer that is turning a profit despite industry headwinds such as inflation and cannabis oversupply. | Genmab and collaboration partner AbbVie submitted their Biologics License Application submission to the Food and Drug Administration (FDA) to treat relapsed and refractory large B-cell lymphoma (LBCL) on Nov. 21. Learn more Jim Halley has positions in AbbVie, Johnson & Johnson, and SunPower. In the third quarter the company reported revenue of $261 million, up 12% year over year and 3% over the second quarter. | Genmab and collaboration partner AbbVie submitted their Biologics License Application submission to the Food and Drug Administration (FDA) to treat relapsed and refractory large B-cell lymphoma (LBCL) on Nov. 21. Learn more Jim Halley has positions in AbbVie, Johnson & Johnson, and SunPower. The reason Green Thumb stock could still go higher is it is well placed to benefit from the growth in cannabis sales in the coming years. |
22955.0 | 2022-12-06 00:00:00 UTC | Unsubstantiated price hikes drove U.S. drug spending up $805 mln in 2021-report | ABBV | https://www.nasdaq.com/articles/unsubstantiated-price-hikes-drove-u.s.-drug-spending-up-%24805-mln-in-2021-report | nan | nan | By Bhanvi Satija
Dec 6 (Reuters) - Price increases spread among seven of the 10 drugs in 2021 behind an $805 million increase in U.S. spending from the prior year were not supported by clinical evidence, an influential U.S. pricing research firm said on Tuesday.
The Institute for Clinical and Economic Review (ICER) said the spending increase in 2021 was still less than the $1.67 billion rise in the previous year. This is the third year the group has looked at the top 250 drugs by spending and assessed if those driving U.S. spending increases were justified.
"Last year, a huge part of the (increase in) spending was all one drug...in this year, we saw the increase was more spread out across different drugs," ICER's Chief Medical Officer David Rind told Reuters.
In 2020, Abbvie's ABBV.N rheumatoid arthritis therapy Humira led to an almost $1.4 billion increase in U.S. drug spending, accounting for over 80% of the total increase.
Rind said Humira dropped off the ten costliest prescription drug list as its net price hike was lower in 2021. Since there was no single drug which drove the increase in spending this year, the rise is also relatively smaller compared to 2020, he added.
Bausch Health's BHC.TO Xifaxan, an antibiotic drug for traveler's diarrhea, led to an increase of nearly $175 million in spending, among the highest this year.
Johnson & Johnson's JNJ.N schizophrenia therapy Invega Sustenna and Amgen's AMGN.O osteoporosis drug Prolia followed closely with spending increases of $170 million and $124 million, respectively.
All three drugmakers did not immediately respond to Reuters' requests for comment.
President Joe Biden's signature Inflation Reduction Act will allow the government to choose 10 drugs to negotiate from among the 50 costliest drugs for Medicare, the government healthcare program for people aged 65 and older or disabled, starting in 2026.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Krishna Chandra Eluri)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In 2020, Abbvie's ABBV.N rheumatoid arthritis therapy Humira led to an almost $1.4 billion increase in U.S. drug spending, accounting for over 80% of the total increase. The Institute for Clinical and Economic Review (ICER) said the spending increase in 2021 was still less than the $1.67 billion rise in the previous year. Rind said Humira dropped off the ten costliest prescription drug list as its net price hike was lower in 2021. | In 2020, Abbvie's ABBV.N rheumatoid arthritis therapy Humira led to an almost $1.4 billion increase in U.S. drug spending, accounting for over 80% of the total increase. By Bhanvi Satija Dec 6 (Reuters) - Price increases spread among seven of the 10 drugs in 2021 behind an $805 million increase in U.S. spending from the prior year were not supported by clinical evidence, an influential U.S. pricing research firm said on Tuesday. "Last year, a huge part of the (increase in) spending was all one drug...in this year, we saw the increase was more spread out across different drugs," ICER's Chief Medical Officer David Rind told Reuters. | In 2020, Abbvie's ABBV.N rheumatoid arthritis therapy Humira led to an almost $1.4 billion increase in U.S. drug spending, accounting for over 80% of the total increase. By Bhanvi Satija Dec 6 (Reuters) - Price increases spread among seven of the 10 drugs in 2021 behind an $805 million increase in U.S. spending from the prior year were not supported by clinical evidence, an influential U.S. pricing research firm said on Tuesday. "Last year, a huge part of the (increase in) spending was all one drug...in this year, we saw the increase was more spread out across different drugs," ICER's Chief Medical Officer David Rind told Reuters. | In 2020, Abbvie's ABBV.N rheumatoid arthritis therapy Humira led to an almost $1.4 billion increase in U.S. drug spending, accounting for over 80% of the total increase. By Bhanvi Satija Dec 6 (Reuters) - Price increases spread among seven of the 10 drugs in 2021 behind an $805 million increase in U.S. spending from the prior year were not supported by clinical evidence, an influential U.S. pricing research firm said on Tuesday. The Institute for Clinical and Economic Review (ICER) said the spending increase in 2021 was still less than the $1.67 billion rise in the previous year. |
22956.0 | 2022-12-06 00:00:00 UTC | AbbVie Inc. (ABBV) Is a Trending Stock: Facts to Know Before Betting on It | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-2 | nan | nan | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this drugmaker have returned +10.7%, compared to the Zacks S&P 500 composite's +6.2% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
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 -0.1%.
For the next fiscal year, the consensus earnings estimate of $11.43 indicates a change of -17.6% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
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 $15.38 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $58.31 billion and $53.73 billion estimates indicate +3.8% and -7.9% 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
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.5%. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.5%. AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.5%. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.5%. AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. |
22957.0 | 2022-12-06 00:00:00 UTC | AbbVie Signs License Agreement With HotSpot For Use Of IRF5 In Autoimmune Diseases | ABBV | https://www.nasdaq.com/articles/abbvie-signs-license-agreement-with-hotspot-for-use-of-irf5-in-autoimmune-diseases | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) announced Tuesday an exclusive worldwide collaboration and option to license agreement for HotSpot Therapeutics Inc.'s discovery-stage IRF5 transcription program for the treatment of autoimmune diseases.
The IRF5 acts as a key regulator of certain types of immune responses and its dysregulation are strongly implicated in several poorly treated autoimmune disorders. The collaboration targets patients with serious autoimmune diseases, such as systemic lupus erythematosus.
As per the agreement, HotSpot will receive an upfront cash payment of $40 million and may be eligible to receive up to $295 million in option fees and milestones. Further commercial milestones as well as tiered royalties on global net sales would also be considered.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) announced Tuesday an exclusive worldwide collaboration and option to license agreement for HotSpot Therapeutics Inc.'s discovery-stage IRF5 transcription program for the treatment of autoimmune diseases. The IRF5 acts as a key regulator of certain types of immune responses and its dysregulation are strongly implicated in several poorly treated autoimmune disorders. The collaboration targets patients with serious autoimmune diseases, such as systemic lupus erythematosus. | (RTTNews) - AbbVie Inc. (ABBV) announced Tuesday an exclusive worldwide collaboration and option to license agreement for HotSpot Therapeutics Inc.'s discovery-stage IRF5 transcription program for the treatment of autoimmune diseases. The collaboration targets patients with serious autoimmune diseases, such as systemic lupus erythematosus. As per the agreement, HotSpot will receive an upfront cash payment of $40 million and may be eligible to receive up to $295 million in option fees and milestones. | (RTTNews) - AbbVie Inc. (ABBV) announced Tuesday an exclusive worldwide collaboration and option to license agreement for HotSpot Therapeutics Inc.'s discovery-stage IRF5 transcription program for the treatment of autoimmune diseases. As per the agreement, HotSpot will receive an upfront cash payment of $40 million and may be eligible to receive up to $295 million in option fees and milestones. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) announced Tuesday an exclusive worldwide collaboration and option to license agreement for HotSpot Therapeutics Inc.'s discovery-stage IRF5 transcription program for the treatment of autoimmune diseases. The IRF5 acts as a key regulator of certain types of immune responses and its dysregulation are strongly implicated in several poorly treated autoimmune disorders. The collaboration targets patients with serious autoimmune diseases, such as systemic lupus erythematosus. |
22958.0 | 2022-12-06 00:00:00 UTC | Is AbbVie Stock a Buy Now? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-a-buy-now-2 | nan | nan | Given the volatility of AbbVie's (NYSE: ABBV) stock over the past year, it's pretty clear that traders are worried about next year's impending Humira patent cliff. But it's not as if the company didn't see this coming and didn't prepare for it.
As a result, the pharmaceutical stock is up more than 36% so far this year but still appears to be attractively priced, with a forward price-to-earnings ratio of slightly less than 12.
It appears the market has already priced in the potential for reduced earnings for the company. Although the way AbbVie is going, an earnings slump is likely to be short-lived.
A tale of three drugs
Humira was seen as a blockbuster from the beginning; the rheumatoid arthritis medication brought in $800 million in its first full year of sales in 2003, back when AbbVie was still part of Abbott Laboratories. AbbVie kept Humira when it split off from Abbott Labs in 2013. In 2006, three years after Humira got its first approval from the Food and Drug Administration (FDA), it did $2 billion in sales.
Compare that ramp up to the company's new duo of immunology drugs, Skyrizi and Rinvoq. Skyrizi got its first approval in April of 2019, so its first full year of sales was 2020, when it did $1.59 billion in sales. Rinvoq got its first FDA approval in August of 2019, so its first full year of sales was also 2020, when it brought in $731 million. Together the two did $2.32 billion in sales in their first year -- already more than Humira did in its third year:
Data sources: Abbott Laboratories and AbbVie. Chart by author. Yearly revenue figures are in millions of dollars.
AbbVie CEO Rick Gonzalez, in the company's third-quarter earnings call, said he expected Skyrizi and Rinvoq to together bring in $7.5 billion in sales this year, ahead of earlier company estimates.
"Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira, achieving the strategic objective we had for replacing Humira," Gonzalez said.
Taking a look past immunology
Outside of immunology, AbbVie has several other therapies that have already had more than $1 billion in sales this year. Imbruvica, used to treat several blood cancers, made $2.6 billion in revenue in the first nine months of 2022. Botox Therapeutic brought in $1.6 billion in revenue in that period, and Botox Cosmetic pulled in $1.2 billion through the nine months. Antipsychotic drug Vraylar brought in just under $1.5 billion. Creon, a therapy used to aid people who can't digest food normally because they lack enough enzymes in their pancreas, falls just outside the $1 billion threshold with $941 million in sales over the first three quarters of the year.
AbbVie's pipeline is huge. At the American Society of Hematology annual meeting in New Orleans next week, the company is on schedule to present 65 abstracts across eight different types of cancer that have potential to eventually reach FDA-approved status.
Besides Imbruvica, which continues to add indications, one of the most promising of the company's oncology therapies is epcoritamab, which is being codeveloped by AbbVie and Genmab. The drug is being looked at to treat various blood cancers, and its Biologics License Application (BLA) was just given priority review status by the FDA last month to treat relapsed/refractory large B-cell lymphoma, a fast-growing type of non-Hodgkin lymphoma that affects 150,000 people worldwide every year.
A solid dividend
AbbVie qualifies as a Dividend King because, counting its time as part of Abbott Labs, it has raised its dividend for at least 50 consecutive years. It's on track for 51 years as it has announced a dividend starting in February of $1.48 a share, a rise of 5%. That works out to a yield of around 3.6%, which is roughly twice the S&P 500's average dividend yield of 1.82.
Since it was split off from Abbott, the company has increased its dividend by 270%. That makes a big difference in the long term. Since 2013, AbbVie's total return price has increased 670%, superior to the S&P 500's average total return over the same period. It's also well-covered, as AbbVie has plenty of free cash flow and the cash dividend payout ratio is only 44.94%, leaving room for continued increases.
^SPX data by YCharts
Abbvie stock is waiting for the bounce
AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). Even if the percentage of decline is higher, expect a slower slump for Humira sales than many think.
Several Humira-type biosimilars are expected to launch next year, but only Amgen's Amjevita is expected to be ready in January. Overseas, Humira has been facing pressure from biosimilars since the fourth quarter of 2018, and yet the therapy still brought in $3 billion in international sales through the first nine months of this year.
It may take a while for physicians to change their habits and switch to new biosimilars, and AbbVie will likely offer discounts to maintain sales of Humira. Yes, the drug's revenue will slide, but the company is in a strong position to bounce back. That makes the stock a good buy for long-term investors.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Genmab A/s. The Motley Fool recommends Abbott Laboratories and Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A tale of three drugs Humira was seen as a blockbuster from the beginning; the rheumatoid arthritis medication brought in $800 million in its first full year of sales in 2003, back when AbbVie was still part of Abbott Laboratories. Given the volatility of AbbVie's (NYSE: ABBV) stock over the past year, it's pretty clear that traders are worried about next year's impending Humira patent cliff. Although the way AbbVie is going, an earnings slump is likely to be short-lived. | A tale of three drugs Humira was seen as a blockbuster from the beginning; the rheumatoid arthritis medication brought in $800 million in its first full year of sales in 2003, back when AbbVie was still part of Abbott Laboratories. ^SPX data by YCharts Abbvie stock is waiting for the bounce AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). Given the volatility of AbbVie's (NYSE: ABBV) stock over the past year, it's pretty clear that traders are worried about next year's impending Humira patent cliff. | Together the two did $2.32 billion in sales in their first year -- already more than Humira did in its third year: Data sources: Abbott Laboratories and AbbVie. AbbVie CEO Rick Gonzalez, in the company's third-quarter earnings call, said he expected Skyrizi and Rinvoq to together bring in $7.5 billion in sales this year, ahead of earlier company estimates. ^SPX data by YCharts Abbvie stock is waiting for the bounce AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). | ^SPX data by YCharts Abbvie stock is waiting for the bounce AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). Given the volatility of AbbVie's (NYSE: ABBV) stock over the past year, it's pretty clear that traders are worried about next year's impending Humira patent cliff. Although the way AbbVie is going, an earnings slump is likely to be short-lived. |
22959.0 | 2022-12-06 00:00:00 UTC | Is Johnson & Johnson Stock A Better Pick Over Its Peer? | ABBV | https://www.nasdaq.com/articles/is-johnson-johnson-stock-a-better-pick-over-its-peer | nan | nan | We believe Johnson & Johnson stock (NYSE: JNJ) is currently a better pick than Eli Lilly stock (NYSE: LLY), given its better prospects. Although Eli Lilly is trading at a comparatively higher valuation of 11.8x trailing revenues than 4.8x for J&J, this gap in the valuation to some extent is justified given Eli Lilly’s superior revenue growth, profitability, and a solid pipeline, as discussed below.
If we look at stock returns, Eli Lilly, with a stellar 34% rise this year, has fared far better than J&J, up just 4%, and both have outperformed the broader S&P 500 index, down 14%. There is more to the comparison, and in the sections below, we discuss why we believe JNJ stock will offer better returns than LLY stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. Eli Lilly: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Eli Lilly’s Revenue Growth Is Better
Eli Lilly’s revenue growth of 5.3% over the last twelve months is in line with the 5.0% growth for J&J.
However, if we look at a longer time frame, Eli Lilly fares better, with its sales rising at an average annual growth rate of 20.6% to $56.2 billion in 2021, compared to $32.8 billion in 2018, while J&J’s saw its revenue rise at an average annual rate of 9.7% to $28.3 billion in 2021, compared to $21.5 billion in 2018. In comparison, J&J’s sales rose 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.
Eli Lilly’s revenue growth has been driven by continued market share gains for drugs such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. The company recently secured U.S. FDA approval for its diabetes drug – Tirzepatide – which is expected to garner over $5 billion in peak sales.
Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion.
The company recently reported positive data from late-stage clinical trials for Donanemab, with the drug meeting a study’s primary and secondary endpoints.
Our Johnson & Johnson Revenue and Eli Lilly Revenue 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 Eli Lilly’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 2.0% CAGR for Eli Lilly, 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. Eli Lilly Is More Profitable
Eli Lilly’s operating margin of 25.0% over the last twelve-month period is slightly better than 23.7% for J&J.
This compares with 21.8% and 24.1% figures in 2019, before the pandemic, respectively.
Eli Lilly’s free cash flow margin of 26.2% is slightly better than 24.8% for J&J.
Our Johnson & Johnson Operating Income Comparison and Eli Lilly Operating Income Comparison dashboards have more details.
Looking at financial risk, Eli Lilly’s 5.8% cash as a percentage of assets is much lower than the 16.9% for J&J, implying that J&J has more cash cushion.
3. The Net of It All
We see that Eli Lilly has demonstrated better revenue growth and is more profitable. On the other hand, J&J is trading at a comparatively lower valuation and has more cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe J&J is currently the better choice.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for J&J over this period and a -17% expected return for Eli Lilly stock, implying that investors will likely be better off buying JNJ over LLY, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Eli Lilly – which also provides more details on how we arrive at these numbers.
While JNJ may outperform LLY 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 4% this year. 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 Dec 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
JNJ Return 0% 4% 55%
LLY Return 0% 34% 404%
S&P 500 Return 0% -14% 82%
Trefis Multi-Strategy Portfolio 1% -17% 229%
[1] Month-to-date and year-to-date as of 12/2/2022
[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. | Eli Lilly’s revenue growth has been driven by continued market share gains for drugs such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion. The company recently reported positive data from late-stage clinical trials for Donanemab, with the drug meeting a study’s primary and secondary endpoints. | Our Johnson & Johnson Operating Income Comparison and Eli Lilly Operating Income Comparison dashboards have more details. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for J&J over this period and a -17% expected return for Eli Lilly stock, implying that investors will likely be better off buying JNJ over LLY, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Eli Lilly – which also provides more details on how we arrive at these numbers. Total [2] JNJ Return 0% 4% 55% LLY Return 0% 34% 404% S&P 500 Return 0% -14% 82% Trefis Multi-Strategy Portfolio 1% -17% 229% [1] Month-to-date and year-to-date as of 12/2/2022 [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. | Eli Lilly’s Revenue Growth Is Better Eli Lilly’s revenue growth of 5.3% over the last twelve months is in line with the 5.0% growth for J&J. However, if we look at a longer time frame, Eli Lilly fares better, with its sales rising at an average annual growth rate of 20.6% to $56.2 billion in 2021, compared to $32.8 billion in 2018, while J&J’s saw its revenue rise at an average annual rate of 9.7% to $28.3 billion in 2021, compared to $21.5 billion in 2018. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for J&J over this period and a -17% expected return for Eli Lilly stock, implying that investors will likely be better off buying JNJ over LLY, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Eli Lilly – which also provides more details on how we arrive at these numbers. | There is more to the comparison, and in the sections below, we discuss why we believe JNJ stock will offer better returns than LLY stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. Eli Lilly: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for J&J over this period and a -17% expected return for Eli Lilly stock, implying that investors will likely be better off buying JNJ over LLY, based on Trefis Machine Learning analysis – Johnson & Johnson vs. Eli Lilly – which also provides more details on how we arrive at these numbers. |
22960.0 | 2022-12-05 00:00:00 UTC | New Investor? Buy These 2 Growth Stocks | ABBV | https://www.nasdaq.com/articles/new-investor-buy-these-2-growth-stocks-3 | nan | nan | If you are a new investor who has heard about the market's turbulence this year, you might be hesitating to invest at all. Most growth stocks got a beating this year. But a tumultuous market is a high-opportunity place to buy excellent stocks at a discounted price and hold them for the long haul.
It would be wise for new investors to diversify their portfolios with some safe stocks along with some growth stocks. Here, "safe stocks" refers to stable companies that have been in the business for a long time and survived all the market's highs and lows. I have the two perfect stocks for new investors.
Image source: Getty Images.
1. AbbVie
Healthcare and biotech stocks are risky, but they are also defensive. People will continue to fall ill regardless of the state of the economy, and the demand for healthcare products will never cease. This is probably one of the reasons why it is a good idea to invest in a healthcare stock.
Biopharma company AbbVie (NYSE: ABBV) is a dividend stock -- and not just any dividend stock. It has earned the title of Dividend King by increasing its dividends for 50 years in a row. Its payouts have increased by more than 250% since its inception and separation from Abbott Laboratories in 2013. Recently, it announced a 5% dividend increase that will be payable in February 2023.
This year, AbbVie has received a lot of attention. In comparison to the broader market's decline, its shares have risen 20% so far in 2022. Though investors are worried about Humira's patent exclusivity in the U.S., the company has a variety of other successful drugs. Humira is used to treat moderate to severe rheumatoid arthritis in adults. It generated $21 billion in annual sales last year, accounting for 37% of AbbVie's total revenue.
Skyrizi (for the treatment of moderate to severe plaque psoriasis in adults) and Rinvoq (for the treatment of moderate to severely active rheumatoid arthritis in adults) are currently two of the company's most promising drugs.
During the company's third-quarterearnings call CEO Rick Gonzalez said he believes that combined, Skyrizi and Rinvoq will surpass Humira's peak revenues.
Skyrizi and Rinvoq generated $2.09 billion in sales in Q3, while Humira generated $5.5 billion.
AbbVie has a strong pipeline of successful drugs and plans to develop more. In Q3, the company invested $1.6 billion (11% of revenue) in research and development (R&D). This shows the company's efforts to work on returns to shareholders. Being both an income and a growth stock, it has the potential to pay investors lucratively in the long run.
2. Cresco Labs
Investing in marijuana stocks may seem intimidating to new investors, given that the drug is still illegal under U.S. federal law. However, cannabis legalization in the U.S. is likely inevitable and may occur within the next decade or so. Even in this limited legal market, many domestic marijuana companies are doing exceptionally well. Cresco Labs (OTC: CRLBF), based in Illinois, is a prime example of this.
With only 54 stores nationwide, it generated $822 million in revenue in fiscal 2021, bringing it closer to its peer Trulieve Cannabis, which generated $938 million in the same period. Trulieve currently operates more than 170 locations across the U.S.
The company continues to optimize long-term profitability by closing underperforming facilities, which affected its most recent quarterly results to some extent. Revenue fell 2% year over year to $210 million, while adjusted EBITDA dropped to $41 million from $56 million in the prior year's quarter.
Cresco's growth strategies, on the other hand, have worked well and will continue to do so. It targets limited license markets to build a loyal customer base. These state market regulators issue licenses to select cannabis companies with caution. Cresco recently initiated an acquisition of another emerging cannabis company, Columbia Care, to strengthen its position in the American cannabis market. This transaction is expected to be completed by the fourth quarter of this year, adding 130 dispensaries to Cresco's portfolio. It also appears financially secure, with $130 million in cash at the end of Q3 to fuel its future expansion plans.
The marijuana industry is rapidly expanding and is expected to be worth $149 billion by 2031. It would be wise to buy Cresco stock now and hold it for the long term.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cresco Labs Inc. and Trulieve Cannabis Corp. 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 Healthcare and biotech stocks are risky, but they are also defensive. Biopharma company AbbVie (NYSE: ABBV) is a dividend stock -- and not just any dividend stock. This year, AbbVie has received a lot of attention. | AbbVie Healthcare and biotech stocks are risky, but they are also defensive. Biopharma company AbbVie (NYSE: ABBV) is a dividend stock -- and not just any dividend stock. This year, AbbVie has received a lot of attention. | Biopharma company AbbVie (NYSE: ABBV) is a dividend stock -- and not just any dividend stock. AbbVie Healthcare and biotech stocks are risky, but they are also defensive. This year, AbbVie has received a lot of attention. | AbbVie Healthcare and biotech stocks are risky, but they are also defensive. Biopharma company AbbVie (NYSE: ABBV) is a dividend stock -- and not just any dividend stock. This year, AbbVie has received a lot of attention. |
22961.0 | 2022-12-05 00:00:00 UTC | Is AbbVie Stock a Smart Contrarian Pick for 2023? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-a-smart-contrarian-pick-for-2023 | nan | nan | Imagine that someone asks you to invest in a business. This business has been highly successful in the past. However, its top-selling product accounts for nearly 38% of total revenue. And sales for that product are about to tank due to competition.
Do you invest in the business? I suspect most people would take a pass based on the information provided.
AbbVie (NYSE: ABBV) currently faces the exact scenario described above. Its megablockbuster drug Humira faces biosimilar competition in the U.S. beginning next year. This loss of exclusivity is viewed as the biggest reason to stay away from AbbVie. But is the big pharma stock actually a smart contrarian pick for 2023?
Examining the conventional wisdom
The conventional wisdom is that AbbVie's revenue will decline significantly next year. Humira will probably rake in somewhere in the ballpark of $20 billion this year. AbbVie has previously modeled for sales erosion of between 35% and 55% in 2023 with biosimilars entering the market in the U.S. If we use the midpoint of that range, the loss of U.S. exclusivity for Humira could negatively impact AbbVie's total revenue next year by around $9 billion.
It will be challenging, to say the least, for the drugmaker to make up for an anticipated sales decline that large. Can AbbVie do it?
The company's total net revenue in Q3 jumped by 5.4% year over year on a constant-currency basis. But AbbVie CEO Rick Gonzalez noted in the most recent quarterly conference call that the underlying business growth without Humira in Q3 was around 6.5%. And that growth came at a time of headwinds for the company's aesthetics business.
If we assume that AbbVie's non-Humira products continue to deliver that level of sales growth in 2023, they should add somewhere in the ballpark of $2.4 billion in sales next year. That's obviously not enough to fully offset Humira's expected sales decline.
It's likely, though, that the momentum will accelerate for some of AbbVie's products. Skyrizi recently picked up European approval for treating Crohn's disease. Imbruvica added another U.S. approved indication in treating pediatric graft-versus-host disease. In addition, AbbVie expects multiple regulatory approvals in 2023, notably including epcoritamab as a third-line treatment for diffuse large B-cell lymphoma and navitoclax in treating myelofibrosis.
These approvals (and potential ones) could boost AbbVie's revenue incrementally next year. However, it typically takes a while for commercial launches to move the needle. Ultimately, I think the conventional wisdom is spot on about AbbVie. There's no realistic way for the company to completely make up for Humira's hemorrhaging sales in 2023.
The rest of the story
If AbbVie's story ended in 2023, avoiding the stock like the plague would be a no-brainer decision. But the story for the company doesn't end next year.
Gonzalez said in the Q3 call that he's "highly confident" that Humira's two successors, Skyrizi and Rinvoq, will more than offset Humira's sales erosion over time. Based on the better-than-expected performance of these two drugs so far, that optimism seems to be warranted.
It's also important to keep in mind that AbbVie has a boatload of regulatory submissions and late-stage data readouts for other products on the way. The company's pipeline is chock-full of promising earlier-stage programs as well. AbbVie should have plenty of other growth drivers beyond Skyrizi and Rinvoq.
Don't forget the company's attractive dividend, either. AbbVie is a Dividend King with 50 consecutive years of dividend increases. Its dividend yield currently tops 3.7%. Over the last 10 years, dividends have generated nearly 40% of AbbVie's total return.
Not as contrarian as it might seem
I think that AbbVie is a smart contrarian pick for 2023 despite the looming Humira albatross. The company has done a good job of preparing for the loss of U.S. exclusivity for its top-selling drug.
Actually, though, this view isn't as contrarian as it might seem. Investors clearly still like AbbVie with the stock soaring close to 20% this year. Many Wall Street analysts remain bullish about AbbVie as well. Half of the analysts surveyed by Refinitiv rate the stock as either a buy or a strong buy. None of the analysts recommend selling AbbVie.
I don't expect AbbVie will deliver the impressive gains in 2023 that it has so far this year. However, the stock will pay investors a solid dividend to wait. My take is that wait will be worth it as Skyrizi, Rinvoq, and the company's other products pick up steam. It doesn't take much imagination to envision AbbVie generating market-beating total returns over the next decade.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If we use the midpoint of that range, the loss of U.S. exclusivity for Humira could negatively impact AbbVie's total revenue next year by around $9 billion. But AbbVie CEO Rick Gonzalez noted in the most recent quarterly conference call that the underlying business growth without Humira in Q3 was around 6.5%. In addition, AbbVie expects multiple regulatory approvals in 2023, notably including epcoritamab as a third-line treatment for diffuse large B-cell lymphoma and navitoclax in treating myelofibrosis. | AbbVie (NYSE: ABBV) currently faces the exact scenario described above. This loss of exclusivity is viewed as the biggest reason to stay away from AbbVie. Examining the conventional wisdom The conventional wisdom is that AbbVie's revenue will decline significantly next year. | If we use the midpoint of that range, the loss of U.S. exclusivity for Humira could negatively impact AbbVie's total revenue next year by around $9 billion. If we assume that AbbVie's non-Humira products continue to deliver that level of sales growth in 2023, they should add somewhere in the ballpark of $2.4 billion in sales next year. Investors clearly still like AbbVie with the stock soaring close to 20% this year. | Can AbbVie do it? AbbVie (NYSE: ABBV) currently faces the exact scenario described above. This loss of exclusivity is viewed as the biggest reason to stay away from AbbVie. |
22962.0 | 2022-12-04 00:00:00 UTC | Here's How to Prepare Your Portfolio for 2023 | ABBV | https://www.nasdaq.com/articles/heres-how-to-prepare-your-portfolio-for-2023 | nan | nan | One of the biggest questions investors may have right now is: Will the bear market end in 2023? Unfortunately, no one can answer that question. The good news is that history offers us some clues about how long bear markets usually last -- and the average is about one year. So we know these troubled times generally are short-lived, at least from a long-term investment perspective.
While we're waiting, the best thing we can do is prepare our portfolios for what's next -- whether that's a bear market that will last a while longer, or the next bull market. Now, heading into 2023, is the perfect time to get ready for any scenario.
What should you do? Here are some ideas.
Take a long-term view
First, it's important to look at the stocks in your portfolio through a long-term lens. Even if today's earnings picture is dim, you might ask yourself if a particular player has what it takes to grow earnings over a five-year period.
Amazon (NASDAQ: AMZN) is a good example of this. The e-commerce giant is struggling with rising inflation. And operating income has declined all year. But Amazon operates in two high-growth industries: e-commerce and cloud computing. It's well-positioned to benefit over time. The company also is making progress on cost cuts, and investing in the high-profit area of cloud computing.
Stocks of companies that have strong market share and operate in growth areas are ones you'll probably want to hold on to. If those companies make the right business decisions today, the future could be bright.
So which stocks should you sell? First, it's best to avoid selling at a loss. You haven't technically lost money if you haven't sold, so it's often best to hold these players until the general market improves -- you might be pleasantly surprised. Of course, if you think the company won't recover, now could be time to exit.
Ideally, if you decide to sell some holdings, they should be stocks you feel have reached their potential. And you may want to reallocate your returns into other stocks with room to run.
Stock up on safety
Now let's talk about preparing for 2023, whether you have $100 or $100,000. During these uncertain times, it's a great idea to stock up on some safety. This could come in the form of dividend stocks, or an area like healthcare.
Dividend Aristocrats or Dividend Kings -- companies with long track records of annual dividend growth -- are a great place to start. These players clearly place importance on rewarding investors over time, so there's reason to be confident that their policies will continue.
Dividends are great all of the time, but they're particularly attractive when things are tough. That's because you're sure to earn passive income from your investment even if the stock price declines.
Established pharmaceutical companies with a track record of growth -- for instance, AbbVie (NYSE: ABBV) or Pfizer (NYSE: PFE) -- are also good bets. People need medications regardless of the economic situation. And that means these companies' revenue will probably grow even if the economy weakens.
Bet on growth
It's also a good idea to prepare for a market rebound. Considering the average length of a bear market, it's possible the market will improve next year. With this in mind, you might want to pick up a few growth stocks that have seen their valuations sink.
It's important to consider their future prospects, of course. You'll want to go for companies that have the financial strength to recover -- and that operate in growth markets. Etsy (NASDAQ: ETSY) is a good example.
And you might consider companies whose earnings have continued to grow in spite of today's troubles, although their share prices haven't followed. Costco Wholesale (NASDAQ: COST) is one to note here:
COST data by YCharts.
These types of players present bear market opportunities.
As we head into a new year, the best way to prepare your portfolio is to invest in both safety and growth. And holding on for the long term is key. If you take all of that into account as you invest this month, you're likely to prepare a solid portfolio for 2023 -- and one that may deliver great returns over time.
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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. | Established pharmaceutical companies with a track record of growth -- for instance, AbbVie (NYSE: ABBV) or Pfizer (NYSE: PFE) -- are also good bets. The good news is that history offers us some clues about how long bear markets usually last -- and the average is about one year. If you take all of that into account as you invest this month, you're likely to prepare a solid portfolio for 2023 -- and one that may deliver great returns over time. | Established pharmaceutical companies with a track record of growth -- for instance, AbbVie (NYSE: ABBV) or Pfizer (NYSE: PFE) -- are also good bets. Dividend Aristocrats or Dividend Kings -- companies with long track records of annual dividend growth -- are a great place to start. And you might consider companies whose earnings have continued to grow in spite of today's troubles, although their share prices haven't followed. | Established pharmaceutical companies with a track record of growth -- for instance, AbbVie (NYSE: ABBV) or Pfizer (NYSE: PFE) -- are also good bets. Stocks of companies that have strong market share and operate in growth areas are ones you'll probably want to hold on to. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Established pharmaceutical companies with a track record of growth -- for instance, AbbVie (NYSE: ABBV) or Pfizer (NYSE: PFE) -- are also good bets. Stocks of companies that have strong market share and operate in growth areas are ones you'll probably want to hold on to. And you might consider companies whose earnings have continued to grow in spite of today's troubles, although their share prices haven't followed. |
22963.0 | 2022-12-03 00:00:00 UTC | 3 Stocks to Buy Hand Over Fist in December | ABBV | https://www.nasdaq.com/articles/3-stocks-to-buy-hand-over-fist-in-december | nan | nan | High conviction. That's what you want to have with the stocks you buy. Such stocks are ones that you can be enthusiastic about -- and buy heavily.
We asked three Motley Fool contributors to identify stocks for which they have high convictions about buying right now. Here's why they think that AbbVie (NYSE: ABBV), Exelixis (NASDAQ: EXEL), and Vertex Pharmaceuticals (NASDAQ: VRTX) are stocks to buy hand over fist in December.
A Dividend King with better prospects than many think
Prosper Junior Bakiny (AbbVie): The end of the year is always a great time to review your investment portfolio. Those who hold shares of AbbVie may be considering jumping ship before 2023 comes around. The drugmaker is set to lose U.S. patent protection for its biggest cash cow -- autoimmune-disease medicine Humira -- next year. Patent cliffs are never good for drugmakers, especially when it affects a therapy that has been as successful as Humira.
But this obstacle won't doom AbbVie's prospects, not by a long shot. The company has built a lineup of solid products to take over as Humira's sales start fading. AbbVie's portfolio now includes immunosuppressants Skyrizi and Rinvoq, its Botox franchise, cancer medicine Venclexta, schizophrenia treatment Vraylar, and more. AbbVie's Skyrizi and Rinvoq look particularly promising. Both are raking up approvals across many of Humira's indications.
Management even thinks they could combine to eclipse Humira's peak sales. And beyond the company's current portfolio, it boasts a rich pipeline with dozens of active programs. Expect more new approvals and label expansions with AbbVie, allowing it to deliver solid financial results year after year. AbbVie's solid business constitutes one reason to buy its shares, but the drugmaker is also worth considering for its dividend.
AbbVie is a member of the very elite group of Dividend Kings, having raised its payouts for 50 consecutive years. The pharma giant currently offers a dividend yield of 3.74%, a solid cash payout ratio of about 45%, and the prospects of more payout increases given its storied dividend history and robust business.
It is clear that AbbVie has a lot more going for it than just its blockbuster medicine Humira. As the year draws to a close, it remains an excellent stock to buy despite the loss of U.S. exclusivity it will experience next year.
A bargain biotech stock with strong financials
David Jagielski (Exelixis): Shares of biotech company Exelixis are down 9% this year, and that's a buying opportunity for investors. The company has solid financials, a great product in Cabometyx, and plenty of cash on its books. That puts the business in excellent shape to continue growing and expanding.
What separates the growth stock from many others in biotech is that it already has some fantastic fundamentals behind it. Exelixis has reported profits of $307.6 million over the trailing 12 months on revenue of $1.6 billion, which makes for a profit margin of 19%. That's impressive for a growing company that has loads of potential.
The business is also growing at an impressive pace. In its third-quarter earnings (period ended Sept. 30), Exelixis reported sales of $411.7 million, up 25% year over year largely due to the continued growth of its kidney cancer drug Cabometyx. This drug generated $361.4 million in revenue, increasing by 39% from the prior-year period.
Some investors may be concerned about the company's long-term growth. But Exelixis is evaluating XL092 in late-stage testing as a potential treatment for metastatic colorectal cancer. The company also isn't done with Cabometyx as it has other trials featuring the drug in an effort to expand its label. Exelixis is sitting on $2.1 billion in cash as well, which could help it pursue other growth opportunities.
Trading at only 11 times its future profits (based on analyst expectations), Exelixis looks to be a bargain buy right now. Investing in the stock today could prove to be a smart move.
An unstoppable growth stock
Keith Speights (Vertex Pharmaceuticals): I think that Vertex Pharmaceuticals is a practically unstoppable growth stock. And it's not just because the biotech's shares have soared in 2022.
Vertex continues to enjoy a monopoly in treating the underlying cause of cystic fibrosis (CF). It still has plenty of growth opportunities in the CF market. More importantly, though, Vertex is branching out beyond CF.
The company and its partner, CRISPR Therapeutics, could have the first CRISPR gene-editing therapy on the market next year with exa-cel. Vertex is already gearing up for the commercial launch of the sickle-cell disease and transfusion-dependent beta-thalessemia drug pending regulatory approvals. It's also laying the groundwork for the potential launch of another drug in the near future -- non-opioid acute pain therapy VX-548.
Vertex's pipeline features two other late-stage candidates. The combination of vanzacaftor, tezacaftor, and deutivacaftor just might be the company's most powerful CF drug yet. Inaxaplin could be on the way to becoming the first drug approved to treat APOL1-mediated kidney disease.
All of these programs have blockbuster sales potential. In addition, Vertex is evaluating a potential cure for type 1 diabetes in early-stage clinical studies.
You'd think that a stock with such tremendous prospects would be ridiculously expensive. That's not the case with Vertex. Shares currently trade at a price-to-earnings-to-growth (PEG) ratio of only 0.41. Any level below 1 is considered to be attractively valued.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Exelixis and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Crispr Therapeutics Ag and Vertex Pharmaceuticals. The Motley Fool recommends Exelixis. 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. | A Dividend King with better prospects than many think Prosper Junior Bakiny (AbbVie): The end of the year is always a great time to review your investment portfolio. AbbVie's portfolio now includes immunosuppressants Skyrizi and Rinvoq, its Botox franchise, cancer medicine Venclexta, schizophrenia treatment Vraylar, and more. Here's why they think that AbbVie (NYSE: ABBV), Exelixis (NASDAQ: EXEL), and Vertex Pharmaceuticals (NASDAQ: VRTX) are stocks to buy hand over fist in December. | A Dividend King with better prospects than many think Prosper Junior Bakiny (AbbVie): The end of the year is always a great time to review your investment portfolio. Here's why they think that AbbVie (NYSE: ABBV), Exelixis (NASDAQ: EXEL), and Vertex Pharmaceuticals (NASDAQ: VRTX) are stocks to buy hand over fist in December. Those who hold shares of AbbVie may be considering jumping ship before 2023 comes around. | Here's why they think that AbbVie (NYSE: ABBV), Exelixis (NASDAQ: EXEL), and Vertex Pharmaceuticals (NASDAQ: VRTX) are stocks to buy hand over fist in December. A Dividend King with better prospects than many think Prosper Junior Bakiny (AbbVie): The end of the year is always a great time to review your investment portfolio. Those who hold shares of AbbVie may be considering jumping ship before 2023 comes around. | Here's why they think that AbbVie (NYSE: ABBV), Exelixis (NASDAQ: EXEL), and Vertex Pharmaceuticals (NASDAQ: VRTX) are stocks to buy hand over fist in December. A Dividend King with better prospects than many think Prosper Junior Bakiny (AbbVie): The end of the year is always a great time to review your investment portfolio. Those who hold shares of AbbVie may be considering jumping ship before 2023 comes around. |
22964.0 | 2022-12-02 00:00:00 UTC | Stocks To Invest In Right Now? 3 Biotech Stocks To Watch | ABBV | https://www.nasdaq.com/articles/stocks-to-invest-in-right-now-3-biotech-stocks-to-watch | nan | nan | If you didn’t know, biotech stocks have been on the rise in recent years, as investors seek out companies that are developing groundbreaking new treatments for a wide range of diseases. Biotech firms are often at the forefront of medical research, and their products have the potential to transform the lives of patients with conditions that are currently incurable.
While investing in biotech stocks can be risky, the rewards can be significant. In turn, biotech stocks offer investors the opportunity to profit from lifesaving new treatments, and they should be considered in any well-diversified portfolio. Considering this, let’s look at three large-cap biotech stocks to check out in the stock market this month.
Biotech Stocks To Invest In [Or Avoid] Now
Abbvie Inc. (NYSE: ABBV)
Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
Pfizer Inc. (NYSE: PFE)
Abbvie Inc. (ABBV Stock)
First up, Abbvie Inc. (ABBV) is a research-based biopharmaceutical company. The company discovers, develops, and markets both biologic and small-molecule drugs. Abbvie has a portfolio of products in various therapeutic areas, including immunology, oncology, virology, and neuroscience.
Just last month, Abbvie announced a beat for its 3rd quarter 2022 financial results. In detail, the company posted Q3 2022 earnings of $3.66 per share and revenue for the quarter of $14.8 billion. Meanwhile, the biotech company did lower its outlook for the Fiscal Year 2022. Specifically, ABBV said it now estimates FY 2022 earnings of $13.84 to $13.88 per share. This is versus the previously announced forecast, which was earnings estimates of $13.78 to $13.98 per share.
So far this year, shares of ABBV have outperformed the broader markets, as ABBV stock is up 19.69% YTD. Meanwhile, during Friday’s lunchtime trading session, Abbvie stock is trading slightly higher by 0.28% at $162.09 a share.
Source: TD Ameritrade TOS
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Regeneron Pharmaceuticals (REGN Stock)
Next, Regeneron Pharmaceuticals (REGN) is a fully integrated biopharmaceutical company that develops, manufactures, and commercializes medicines for the treatment of serious medical conditions.
In early November, REGN announced its Q3 2022 financial results. In the report, Regeneron Pharmaceuticals reported third-quarter 2022 earnings of $9.98 per share, along with revenue of $2.9 billion. For context, Wall Street’s estimates for the quarter were earnings of $8.55 per share, and revenue estimates of $2.8 billion.
Similar to Abbvie, Regeneron Pharmaceutical stock is also outperforming the broader markets so far in 2022. In detail, shares of REGN stock have jumped 21.78% so far in 2022. While on Friday REGN stock is up another 0.32%, currently trading at $763.68 a share.
Source: TD Ameritrade TOS
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Pfizer Inc. (PFE Stock)
Last but not least, Pfizer (PFE) is one of the world’s largest pharmaceutical companies and one of the largest drug manufacturers. For starters, the company develops and produces medicines and vaccines for a wide range of medical disciplines. This includes immunology, oncology, cardiology, diabetology/endocrinology, and neurology.
Just last month, Pfizer reported a beat for its Q3 2022 financial results. Diving in, the company announced earnings of $1.78 per share and revenue of $22.6 billion for Q3 2022. Analysts’ estimates for the quarter were an EPS of $1.47, and revenue estimates of $25.4 billion. Additionally, Pfizer also announced that it expects 2022 earnings of $6.40 to $6.50 per share, and FY 2022 revenue estimates between $99.50 and $102.0 billion.
Year-to-date shares of Pfizer stock are down 9.55%. Though, in the last month of trading, shares of PFE stock have recovered 8.86%. During Friday’s lunchtime trading action, Pfizer stock is trading modestly higher by 0.18% at $51.23 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. | Biotech Stocks To Invest In [Or Avoid] Now Abbvie Inc. (NYSE: ABBV) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) Pfizer Inc. (NYSE: PFE) Abbvie Inc. (ABBV Stock) First up, Abbvie Inc. (ABBV) is a research-based biopharmaceutical company. Abbvie has a portfolio of products in various therapeutic areas, including immunology, oncology, virology, and neuroscience. Just last month, Abbvie announced a beat for its 3rd quarter 2022 financial results. | Biotech Stocks To Invest In [Or Avoid] Now Abbvie Inc. (NYSE: ABBV) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) Pfizer Inc. (NYSE: PFE) Abbvie Inc. (ABBV Stock) First up, Abbvie Inc. (ABBV) is a research-based biopharmaceutical company. So far this year, shares of ABBV have outperformed the broader markets, as ABBV stock is up 19.69% YTD. Abbvie has a portfolio of products in various therapeutic areas, including immunology, oncology, virology, and neuroscience. | Biotech Stocks To Invest In [Or Avoid] Now Abbvie Inc. (NYSE: ABBV) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) Pfizer Inc. (NYSE: PFE) Abbvie Inc. (ABBV Stock) First up, Abbvie Inc. (ABBV) is a research-based biopharmaceutical company. Abbvie has a portfolio of products in various therapeutic areas, including immunology, oncology, virology, and neuroscience. Just last month, Abbvie announced a beat for its 3rd quarter 2022 financial results. | Biotech Stocks To Invest In [Or Avoid] Now Abbvie Inc. (NYSE: ABBV) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) Pfizer Inc. (NYSE: PFE) Abbvie Inc. (ABBV Stock) First up, Abbvie Inc. (ABBV) is a research-based biopharmaceutical company. Abbvie has a portfolio of products in various therapeutic areas, including immunology, oncology, virology, and neuroscience. Just last month, Abbvie announced a beat for its 3rd quarter 2022 financial results. |
22965.0 | 2022-12-02 00:00:00 UTC | ABBV Crosses Above Average Analyst Target | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-average-analyst-target-0 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $161.27, changing hands for $161.63/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $135.00. And then on the other side of the spectrum one analyst has a target as high as $200.00. The standard deviation is $17.314.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $161.27/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $161.27 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
RECENT ABBV ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 7 8 8 8
Buy ratings: 1 1 1 1
Hold ratings: 7 6 6 6
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 2.16 2.03 2.03 2.03
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABBV — FREE.
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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 recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $161.27, changing hands for $161.63/share. And so with ABBV crossing above that average target price of $161.27/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $161.27 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $161.27, changing hands for $161.63/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. And so with ABBV crossing above that average target price of $161.27/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $161.27 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $161.27, changing hands for $161.63/share. | There are 15 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $161.27, changing hands for $161.63/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
22966.0 | 2022-12-02 00:00:00 UTC | FOCUS-Merck could keep its patent edge by shifting Keytruda cancer drug to a simple shot | ABBV | https://www.nasdaq.com/articles/focus-merck-could-keep-its-patent-edge-by-shifting-keytruda-cancer-drug-to-a-simple-shot | nan | nan | By Michael Erman
Dec 2 (Reuters) - U.S. drugmaker Merck & Co MRK.N hopes to patent a new formulation of its $20 billion cancer immunotherapy Keytruda that can be injected under the skin, allowing it to protect its best-selling drug from competition expected as soon as 2028.
For years Merck has relied on Keytruda to fuel its growth. The treatment, approved in 2014, harnesses the body's own immune system to fight cancers with dramatic results. Against advanced lung cancer, it has led to a five-year survival rate in about one-quarter of people compared to 5% of people historically.
But the key patents on Keytruda will begin to expire in 2028, opening the door to biosimilars - near copies of expensive biologic drugs whose complex molecules cultivated inside living cells make it impossible to manufacture exact copies.
Merck is testing in clinical trials two versions of the drug that can be injected subcutaneously, a quick alternative to infusions, the current delivery method in which patients receive an intravenous drip in a health office once every three or six weeks. The company reported early data from one of those trials last year.
While Merck has disclosed that it is developing subcutaneous versions of Keytruda, it has not previously said that it expects the new formulation to become the most widely used version of the drug after it is rolled out and an engine for growth toward the end of the decade.
If successful, Merck could begin marketing the new formulation within a few years, a top Merck executive told Reuters. It expects it to fuel Keytruda's growth as it gains approvals in earlier stage cancers. Keytruda now accounts for more than one-third of Merck’s sales.
"We believe that subcutaneous formulation has the potential to be novel, non-obvious and useful, which means we would get a new patent for it," Merck CFO Caroline Litchfield said in an interview, using the terminology for the criteria under U.S. law to determine what technologies merit a patent.
"The clock for that patent would start ticking from the time we would get that patent approved."
While some patients would likely still receive the original formulation if it is being administered along with chemotherapy or other intravenous drugs, the subcutaneous formulation could replace the IV version for most patients, Merck Chief Medical Officer Eliav Barr told Reuters.
"In theory it could replace everywhere that Keytruda currently is used," Barr said.
Drug patents have a guaranteed term of exclusivity for 20 years after receiving a patent under U.S. law, but sometimes the companies are able to add additional patents that extend their exclusivity.
For example, the primary patent on Abbvie's arthritis drug Humira expired in 2016 but the drug will not face U.S. competition until 2023, in part because the company eventually received more than 130 patents that protect the drug.
Merck's patents on the subcutaneous version of Keytruda could protect that formulation until at least 2040, according to Tahir Amin, co-founder of drug patents watchdog group Initiative for Medicines, Access & Knowledge (I-MAK).
"It's the way the pharmaceutical companies now use that system -- it's all about taking up as much space as possible, making it difficult for anybody to enter," Amin said. "Keytruda is going to be the next Humira by all accounts."
Asked whether it was motivated more by patent issues than medical need, Merck said it was continuously focused on improving Keytruda and getting it to more patients.
Merck said it may seek patents for innovations in how the drug is used, its formulation, the size and schedule of doses and combinations with other drugs.
"These patent applications, if granted, may provide varying degrees of protection beyond 2028. However, we would continue to point to late 2028 as the most likely timeframe for biosimilar entry into the market," Merck said in a statement.
DO PATIENTS PREFER SHOTS?
Getting doctors and hospitals to adopt the new formulation before biosimilar competition arrives could help Merck protect more of its Keytruda revenue for longer but is not certain, analysts said. On average, they expect Keytruda revenues to top $30 billion in 2026 and $35 billion by 2028, according to Refinitiv data.
"Theoretically, in the US, they could transition all of the market," Mizuho analyst Mara Goldstein said, "depending on how quickly they can get it to market."
However, BMO Capital's Evan Seigerman said that private insurers in the U.S. might balk at paying for the more expensive branded product and prefer a biosimilar infusion version. Still, he believes the new formulation could allow the company to hold onto as much as 20 percent of its Keytruda revenue into the 2030s.
Two doctors interviewed by Reuters said they were not convinced that the new route of administration represents a significant enough clinical improvement over IV infusions to justify the additional system-wide healthcare costs that might be a product of Merck receiving a new patent.
"I don't think it's going to improve the safety or the effectiveness of the drug," said Dr. Shailender Bhatia, an oncologist at the Fred Hutchinson Cancer Center in Seattle.
Merck's Barr said the easier-to-use formulation of the drug could help patients' health by keeping them on Keytruda and on schedule, and could keep high-risk cancer patients from spending long times in hospital settings where they could be exposed to other diseases.
"From a quality of life and patient perspective, it's for sure going to be helpful," Barr said.
That view is backed by clinical studies that have found that patients prefer subcutaneous injections to intravenous administration which can be time-consuming and invasive.
How much hospitals and doctors embrace the method could reflect how they will be impacted by the change financially.
Hospitals are typically paid less to administer an injection than a long infusion. That could be offset somewhat if the drug's price is higher, since providers receive a percentage fee for physician-administered drugs, according to Lisa Mulloy, chief pharmacy officer for New York's Northwell Health hospital system.
Merck said it would not speculate on the expected price of pipeline products. The infusion's list price is about $185,000 per year, though the drug may cost less with company discounts.
Northwell's Mulloy said moving patients to subcutaneous versions of drugs also opens up spots in infusion centers for additional patients.
(Reporting by Michael Erman; editing by Caroline Humer and Claudia Parsons)
((michael.erman@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, the primary patent on Abbvie's arthritis drug Humira expired in 2016 but the drug will not face U.S. competition until 2023, in part because the company eventually received more than 130 patents that protect the drug. By Michael Erman Dec 2 (Reuters) - U.S. drugmaker Merck & Co MRK.N hopes to patent a new formulation of its $20 billion cancer immunotherapy Keytruda that can be injected under the skin, allowing it to protect its best-selling drug from competition expected as soon as 2028. Merck is testing in clinical trials two versions of the drug that can be injected subcutaneously, a quick alternative to infusions, the current delivery method in which patients receive an intravenous drip in a health office once every three or six weeks. | For example, the primary patent on Abbvie's arthritis drug Humira expired in 2016 but the drug will not face U.S. competition until 2023, in part because the company eventually received more than 130 patents that protect the drug. Merck is testing in clinical trials two versions of the drug that can be injected subcutaneously, a quick alternative to infusions, the current delivery method in which patients receive an intravenous drip in a health office once every three or six weeks. While some patients would likely still receive the original formulation if it is being administered along with chemotherapy or other intravenous drugs, the subcutaneous formulation could replace the IV version for most patients, Merck Chief Medical Officer Eliav Barr told Reuters. | For example, the primary patent on Abbvie's arthritis drug Humira expired in 2016 but the drug will not face U.S. competition until 2023, in part because the company eventually received more than 130 patents that protect the drug. By Michael Erman Dec 2 (Reuters) - U.S. drugmaker Merck & Co MRK.N hopes to patent a new formulation of its $20 billion cancer immunotherapy Keytruda that can be injected under the skin, allowing it to protect its best-selling drug from competition expected as soon as 2028. While some patients would likely still receive the original formulation if it is being administered along with chemotherapy or other intravenous drugs, the subcutaneous formulation could replace the IV version for most patients, Merck Chief Medical Officer Eliav Barr told Reuters. | For example, the primary patent on Abbvie's arthritis drug Humira expired in 2016 but the drug will not face U.S. competition until 2023, in part because the company eventually received more than 130 patents that protect the drug. While some patients would likely still receive the original formulation if it is being administered along with chemotherapy or other intravenous drugs, the subcutaneous formulation could replace the IV version for most patients, Merck Chief Medical Officer Eliav Barr told Reuters. Drug patents have a guaranteed term of exclusivity for 20 years after receiving a patent under U.S. law, but sometimes the companies are able to add additional patents that extend their exclusivity. |
22967.0 | 2022-12-01 00:00:00 UTC | Why Is Pfizer (PFE) Up 6.5% Since Last Earnings Report? | ABBV | https://www.nasdaq.com/articles/why-is-pfizer-pfe-up-6.5-since-last-earnings-report | nan | nan | It has been about a month since the last earnings report for Pfizer (PFE). Shares have added about 6.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pfizer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Q3 Earnings & Sales Beat; Ups 2022 Guidance
Pfizer’s third-quarter results were better than expected as it beat estimates for both earnings and sales.
Pfizer reported third-quarter 2022 adjusted earnings per share of $1.78, which significantly beat the Zacks Consensus Estimate of $1.47 per share as well as our estimate of $1.45 per share. Earnings rose 40% year over year and 44% excluding currency impact.
Revenues came in at $22.6 billion, which beat the Zacks Consensus Estimate of $21.04 billion. Sales declined 6% from the year-ago quarter on a reported basis, reflecting an operational decline of 2% and currency headwinds of 4%. More than half of Pfizer’s revenues comprised direct sales and alliance revenues from its partner, BioNTech for the COVID-19 vaccine, Comirnaty and revenues from Pfizer’s oral antiviral pill for COVID, Paxlovid.
Excluding revenues from Pfizer/BioNTech’s Comirnaty and Paxlovid, sales rose 2% operationally. Higher sales of key brands like Eliquis and Vyndaqel/Vyndamax (globally) and improved Prevnar vaccine sales in the United States were partially offset by weaker sales of Xeljanz and Ibrance globally. Also, a difficult comparison to exceptionally strong growth in the prior-year quarter resulted in the decline.
International revenues declined 43% to $8.79 billion. U.S. revenues rose 97% to $13.85 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 23% (operationally) in the quarter to $3.24 billion due to increased spending for Paxlovid and Comirnaty and new products and higher health care reform fees. Adjusted R&D expenses rose 2% to $2.69 billion due to costs related to oncology and non-COVID-19 vaccines program and costs to develop recently acquired programs.
Segment Discussion
Beginning in the third quarter of 2022, Pfizer started reporting its revenues under three broad sub-segments of its Biopharma operating segment, Primary Care, Specialty Care and Oncology. Sales in the Primary Care segment declined 1% operationally to $15.85 billion. The Specialty Care unit recorded sales of $3.4 billion, down 3%. Sales of Oncology rose 3% to $3.07 billion.
Primary Care
In Primary Care, direct sales and alliance revenues from BioNTech for Comirnaty were $4.4 billion in the quarter, down 65% year over year. Comirnaty sales rose 83% in the United States due to deliveries of the newly authorized Omicron BA.4/BA.5-adapted bivalent booster and approval for primary vaccination of children 6 months to less than 5 years of age. Comirnaty sales declined 86% in outside U.S. markets due to a shift in scheduled deliveries to the fourth quarter as well as slower demand in emerging markets. Comirnaty sales were better than our estimate of $2.74 billion.
Paxlovid contributed $7.5 billion to sales in the third quarter, compared with $8.1 billion in the second quarter, backed by launches in several countries in 2022. Paxlovid sales missed our estimate of $8.0 billion.
Alliance revenues from Bristol-Myers for Eliquis and direct sales rose 15% to $1.46 billion. Continued increased adoption in oral anti-coagulant as well as non-valvular atrial fibrillation market share gains benefited alliance revenues from Bristol-Myers for Eliquis sales in the quarter.
Global Prevnar family revenues rose 14% to $1.61 billion. The Prevnar family includes revenues from Prevnar 13/Prevenar 13 (pediatric and adult) and Prevnar 20 (adult). Prevnar revenues were less than the Zacks Consensus Estimate of $1.84 billion.
Prevnar sales rose 28% in the United States due to strong demand for Prevnar 20 for the eligible adult population, which offset the unfavorable timing of purchases (both government and private) of Prevnar 13 for the pediatric indication. Prevnar revenues declined 7% in international markets.
Specialty Care
Rare disease drug, Vyndaqel/Vyndamax recorded sales of $602 million in the quarter, up 29% year over year driven by continued strong uptake in the United States and developed Europe, which was partially offset by a price decrease in Japan. Vyndaqel/Vyndamax were better than the Zacks Consensus Estimate of $589 million.
Xeljanz sales declined 14% to $502 million due to lower prescription volumes as doctors’ prescribing patterns shifted away from JAK inhibitors following label warnings.
Enbrel revenues declined 8% to $230 million due to continued biosimilar competition in key European markets and Japan.
Oncology
In Oncology, Ibrance revenues declined 3% year over year to $1.28 billion due to planned price decreases in some international developed markets and continued increase in the proportion of patients accessing Ibrance through the U.S. Patient Assistance Program. Sales missed the Zacks Consensus Estimate of $1.41 billion as well as our estimate is $1.43 billion.
Xtandi recorded alliance revenues of $320 million in the quarter, up 3% year over year. Inlyta revenues were $252 million in the quarter, up 3%.
2022 Guidance
Pfizer raised its earnings and sales guidance for 2022 as better expectations for operational growth were partially offset by incremental potential headwinds from currency impact. It also raised its outlook for the COVID-19 vaccine by $2 billion.
Revenues are expected in the range of $99.5 to $102.0 billion compared with $98.0 billion to $102.0 billion expected previously. The mid-point of the revenue guidance indicates operational growth of 31% from 2021 levels, which is higher than the prior expectation of 29%.
The revenue guidance includes approximately $34.0 billion in sales from Comirnaty, up from the prior expectation of $32 billion. Paxlovid sales are expected to be $22 billion, the same as the previous expectations. The guidance for Comirnaty reflects doses/treatment courses to be delivered under supply contracts signed as of mid-October 2022.
Adjusted earnings per share are expected to be in the range of $6.40 to $6.50 compared with the prior expectation of $6.30 to $6.45. The 19 cents improvement in operational adjusted earnings per share guidance was negatively impacted by foreign exchange movements compressing EPS by 9 cents. The mid-point of the earnings guidance indicates operational growth of 70% from the 2021 levels, which is higher than prior expectation of 65%.
Foreign exchange is expected to have a negative impact of approximately $5.7 billion on revenues and approximately 44 cents per share on EPS in 2022.
Adjusted cost of sales, as a percentage of sales, is expected in the range of 33 (previously 33). Research and development expense is expected in the range of $11.5-$12.0 billion (maintained). SI&A spending is expected in the range of $12.8-$13.3 billion versus $12.2-$13.2 billion previously. Acquired IPR&D expenses are expected to be approximately $1.4 billion (previously approximately $0.9 billion). The adjusted tax rate is expected to be approximately 12.5% (previously approximately 15.5%) in 2022.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -15.5% due to these changes.
VGM Scores
At this time, Pfizer has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pfizer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Pfizer is part of the Zacks Large Cap Pharmaceuticals industry. Over the past month, AbbVie (ABBV), a stock from the same industry, has gained 11.5%. The company reported its results for the quarter ended September 2022 more than a month ago.
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.
AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
AbbVie has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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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. | Over the past month, AbbVie (ABBV), a stock from the same industry, has gained 11.5%. AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. | 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. Over the past month, AbbVie (ABBV), a stock from the same industry, has gained 11.5%. AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. | Over the past month, AbbVie (ABBV), a stock from the same industry, has gained 11.5%. AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. | Over the past month, AbbVie (ABBV), a stock from the same industry, has gained 11.5%. AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. AbbVie is expected to post earnings of $3.68 per share for the current quarter, representing a year-over-year change of +11.2%. |
22968.0 | 2022-12-01 00:00:00 UTC | AbbVie To Present At Piper Sandler 34th Annual Healthcare Conference; Webcast At 9:30 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-to-present-at-piper-sandler-34th-annual-healthcare-conference-webcast-at-9%3A30-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will participate in the Piper Sandler 34th Annual Healthcare Conference.
The event is scheduled to begin at 9:30 AM ET on December 1, 2022.
To access the live webcast, log on to http://investors.abbvie.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) will participate in the Piper Sandler 34th Annual Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:30 AM ET on December 1, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the Piper Sandler 34th Annual Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:30 AM ET on December 1, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the Piper Sandler 34th Annual Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:30 AM ET on December 1, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the Piper Sandler 34th Annual Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:30 AM ET on December 1, 2022. |
22969.0 | 2022-12-01 00:00:00 UTC | AbbVie Announces Provincial Reimbursement For RINVOQ For Rheumatoid Treatment | ABBV | https://www.nasdaq.com/articles/abbvie-announces-provincial-reimbursement-for-rinvoq-for-rheumatoid-treatment | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) Thursday announced provincial reimbursement for RINVOQ for the treatment of rheumatoid arthritis and psoriatic arthritis in Alberta, New Brunswick, Ontario, Quebec and Saskatchewan.
In addition, RINVOQ is now listed as a Limited Use product on the formulary of the Non-Insured Health Benefits program for the treatment of rheumatoid arthritis and psoriatic arthritis.
Earlier AbbVie signed an agreement with the pan-Canadian Pharmaceutical Alliance for a new treatment option.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) Thursday announced provincial reimbursement for RINVOQ for the treatment of rheumatoid arthritis and psoriatic arthritis in Alberta, New Brunswick, Ontario, Quebec and Saskatchewan. Earlier AbbVie signed an agreement with the pan-Canadian Pharmaceutical Alliance for a new treatment option. In addition, RINVOQ is now listed as a Limited Use product on the formulary of the Non-Insured Health Benefits program for the treatment of rheumatoid arthritis and psoriatic arthritis. | (RTTNews) - AbbVie Inc. (ABBV) Thursday announced provincial reimbursement for RINVOQ for the treatment of rheumatoid arthritis and psoriatic arthritis in Alberta, New Brunswick, Ontario, Quebec and Saskatchewan. Earlier AbbVie signed an agreement with the pan-Canadian Pharmaceutical Alliance for a new treatment option. In addition, RINVOQ is now listed as a Limited Use product on the formulary of the Non-Insured Health Benefits program for the treatment of rheumatoid arthritis and psoriatic arthritis. | (RTTNews) - AbbVie Inc. (ABBV) Thursday announced provincial reimbursement for RINVOQ for the treatment of rheumatoid arthritis and psoriatic arthritis in Alberta, New Brunswick, Ontario, Quebec and Saskatchewan. Earlier AbbVie signed an agreement with the pan-Canadian Pharmaceutical Alliance for a new treatment option. In addition, RINVOQ is now listed as a Limited Use product on the formulary of the Non-Insured Health Benefits program for the treatment of rheumatoid arthritis and psoriatic arthritis. | (RTTNews) - AbbVie Inc. (ABBV) Thursday announced provincial reimbursement for RINVOQ for the treatment of rheumatoid arthritis and psoriatic arthritis in Alberta, New Brunswick, Ontario, Quebec and Saskatchewan. Earlier AbbVie signed an agreement with the pan-Canadian Pharmaceutical Alliance for a new treatment option. In addition, RINVOQ is now listed as a Limited Use product on the formulary of the Non-Insured Health Benefits program for the treatment of rheumatoid arthritis and psoriatic arthritis. |
22970.0 | 2022-11-30 00:00:00 UTC | 3 Dividend Stocks to Buy in Case the Santa Rally Doesn’t Come | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-in-case-the-santa-rally-doesnt-come | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Santa Claus rally is a noted phenomenon whereby the stock market tends to rally during the week leading up to Christmas. Many theories about the reason for the phenomenon have been posited including optimism from the holiday spirit, increased shopping, and businesses settling their books before vacation. Whatever the root cause, the effect is minor with a 0.385% average increase from 2002-2021. So, perhaps a better way to ensure returns is to simply invest in dividend stocks. That way investors secure yields that increase returns without relying on the luck of rising prices. All of the stocks below include a reliable dividend, so purchasing shares is a near guarantee of income.
The stocks listed below are generally strong companies and include dividends with moderate yields. Let’s begin with the highest-yield stock, which is slightly riskier, but strong nonetheless.
MO Altria $45.46
ABBV AbbVie $156.90
KMI Kinder Morgan $18.80
Altria (MO)
Source: viewimage / Shutterstock.com
Altria (NYSE:MO) stock represents a tobacco producer and cigarette seller that is moving with the times, albeit slower than its rivals. While cigarette smoking continues to decline in the U.S., Altria continues to rely on smoke products for roughly 90% of revenues.
Altria sells Marlboro brand cigarettes in the U.S. market while its rival and former parent company prior to 2008, Phillip Morris International (NYSE:PMI), sells them outside of the U.S. What’s interesting is that Phillip Morris has been quicker to pivot into smokeless products, which currently account for 30% of revenues.
That is causing many pundits to continually view Altria as a dinosaur hanging too heavily onto a slowly dying cigarette market. Further, Juul Labs, Altria’s minority-owned vape brand could soon file for Chapter 11 bankruptcy. In short, Altria has to find new ways to decrease its reliance on waning cigarette sales while developing more relevant smokeless product markets.
That won’t be easy. If Altria develops a winning smokeless product it will likely cut into cigarette brand sales thereby cannibalizing Altria’s biggest revenue stream. So, what then is the reason to believe in Altria? Well, it certainly has assets to make those dreams a reality. It will receive a $2.7 billion payment from PMI by July 2023 for a product tie-up. And it owns 10% of Anheuser-Busch (NYSE:BUD) which it can sell to fund smokeless projects.
Investors should simply buy MO stock because it comes with a massive 8.28% dividend, understanding that share prices are low also, and hope for a turnaround while taking advantage of the income.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) continues to be a very solid firm to invest in, which was confirmed in its latest earnings report.
That report was released in late October with the pharmaceutical company confirming the midpoint for full-year adjusted EPS while simultaneously narrowing its range. In short, AbbVie continues to look like a reliable firm with a solid, dependable business model and a dividend. That’s the kind of investment that wise investors appreciate over the long term.
AbbVie also increased its dividend from $1.41 per share to $1.48. That means every share of ABBV stock currently yields a very respectable 3.7%. Moreover, it’s a safe dividend, having last been reduced in 2013.
AbbVie is also an interesting stock because in the most recent quarter it posted a revenue miss while simultaneously beating earnings expectations. That’s arguably somewhat of a positive for dividend investors since dividends are paid from earnings. It doesn’t mean much since the dividend wasn’t in doubt, but a beat is a beat. And AbbVie did increase the dividend.
AbbVie management has expressed concern that economic headwinds could negatively affect its Botox brand and aesthetics business. However, that business contributes a relatively small amount to overall sales. AbbVie remains among the healthy dividend stocks with an immunology business backed by multiple billion-dollar brands.
Kinder Morgan (KMI)
Source: JHVEPhoto / Shutterstock.com
Kinder Morgan (NYSE:KMI) stock has reasonable upside price potential and a dividend yielding nearly 6%. The company is one of the largest energy infrastructure plays in the U.S., operating 83,000 miles of pipeline, and 141 terminals, among other assets. Investors who believe energy prices will continue to rise should buy KMI, take advantage of strong dividend stocks, and hope for the best.
In this case, the best scenario means rising energy prices. Given how much uncertainty there is globally, that’s proving a very difficult thing to predict. OPEC output cuts favor rising prices, effects from Russia remain difficult to predict because of its overall volatility, and China Covid lockdowns point to decreasing demand, and thus, decreasing prices. Simply put, there are even more confounding variables than usual dictating costs.
That’s why betting on KMI is truly a bet. It trades below $19 at the time of writing and boasts a high analyst price of $24. That is entirely possible in the coming year given the aforementioned price factors.
For its part, Kinder Morgan recently reported 14% higher earnings in Q3 year-over-year. That led to management’s decision to increase the dividend 3% above its Q3 2021 levels and provides a strong argument for investing now.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 3 Dividend Stocks to Buy in Case the Santa Rally Doesn’t Come 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. | MO Altria $45.46 ABBV AbbVie $156.90 KMI Kinder Morgan $18.80 Altria (MO) Source: viewimage / Shutterstock.com Altria (NYSE:MO) stock represents a tobacco producer and cigarette seller that is moving with the times, albeit slower than its rivals. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) continues to be a very solid firm to invest in, which was confirmed in its latest earnings report. In short, AbbVie continues to look like a reliable firm with a solid, dependable business model and a dividend. | MO Altria $45.46 ABBV AbbVie $156.90 KMI Kinder Morgan $18.80 Altria (MO) Source: viewimage / Shutterstock.com Altria (NYSE:MO) stock represents a tobacco producer and cigarette seller that is moving with the times, albeit slower than its rivals. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) continues to be a very solid firm to invest in, which was confirmed in its latest earnings report. In short, AbbVie continues to look like a reliable firm with a solid, dependable business model and a dividend. | MO Altria $45.46 ABBV AbbVie $156.90 KMI Kinder Morgan $18.80 Altria (MO) Source: viewimage / Shutterstock.com Altria (NYSE:MO) stock represents a tobacco producer and cigarette seller that is moving with the times, albeit slower than its rivals. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) continues to be a very solid firm to invest in, which was confirmed in its latest earnings report. In short, AbbVie continues to look like a reliable firm with a solid, dependable business model and a dividend. | AbbVie also increased its dividend from $1.41 per share to $1.48. And AbbVie did increase the dividend. MO Altria $45.46 ABBV AbbVie $156.90 KMI Kinder Morgan $18.80 Altria (MO) Source: viewimage / Shutterstock.com Altria (NYSE:MO) stock represents a tobacco producer and cigarette seller that is moving with the times, albeit slower than its rivals. |
22971.0 | 2022-11-30 00:00:00 UTC | XLV, ABBV, CVS, ELV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-abbv-cvs-elv%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $522.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 305,670,000 to 309,520,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.7%, CVS Health Corporation (Symbol: CVS) is off about 0.7%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.38. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.7%, CVS Health Corporation (Symbol: CVS) is off about 0.7%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $522.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 305,670,000 to 309,520,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.7%, CVS Health Corporation (Symbol: CVS) is off about 0.7%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.38. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.7%, CVS Health Corporation (Symbol: CVS) is off about 0.7%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $522.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 305,670,000 to 309,520,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.38. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.7%, CVS Health Corporation (Symbol: CVS) is off about 0.7%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $522.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 305,670,000 to 309,520,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.38. |
22972.0 | 2022-11-30 00:00:00 UTC | 3 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/3-top-dividend-kings-to-buy-for-the-long-haul-4 | nan | nan | This year has been particularly difficult for the stock market, making investors more hesitant to invest their hard-earned money. Dividend stocks, on the other hand, are popular among investors because these investments are typically stable and secure. Such investments are also a simple way to earn consistent income even in a volatile market.
And what's better than companies with a history of consistently paying and increasing dividends? Dividend Kings are companies that have increased their dividends for 50 years in a row -- and I've got the perfect three in mind.
Image source: Getty Images.
1. AbbVie
Biopharma company AbbVie's (NYSE: ABBV) shares have jumped 18% so far this year, compared to the broader market's drop of roughly 17%. Though investors are concerned about it losing its U.S. patent exclusivity for Humira, its star product, next year, the company has a slew of other successful drugs. In adults, Humira is used to treat moderate to severe rheumatoid arthritis. Last year, it generated $21 billion in annual sales, accounting for 37% of AbbVie's total revenue.
Skyrizi (used to treat moderate to severe plaque psoriasis in adults) and Rinvoq (used to treat moderate to severely active rheumatoid arthritis in adults) are two of the company's most promising drugs now.
In the third-quarterearnings call CEO Rick Gonzalez made a bold prediction, stating:
Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira, achieving the strategic objective we had for replacing Humira.
In Q3, Skyrizi and Rinvoq together brought in nearly $2.1 billion in sales, while Humira generated $5.5 billion.
AbbVie has earned the prestigious title of Dividend King by raising dividends for 50 years in a row. Since its inception and separation from Abbott Laboratories in 2013, its payouts have increased by more than 250%.
AbbVie has a robust pipeline of successful drugs and will continue to develop new ones. The company is investing heavily in research and development (R&D), which totaled $1.6 billion (11% of revenue) in Q3. This should reassure investors that dividend payments will not be discontinued any time soon. It's not only an income stock -- it's also a growth stock that has the potential to reward investors handsomely in the long run.
2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a popular name in the consumer and healthcare sectors. It has captured the market with well-known brands such as Listerine, Neutrogena, and Tylenol. The company is spinning off its consumer business to focus solely on its healthcare division. That is not a major concern for investors, because its pharma segment will more than suffice to keep the company running for many years. This segment contains some high-quality cancer drugs, such as Darzalex and Erleada.
Its pharmaceutical segment contributed the most to total sales in Q3. Its revenue increased 2% year over year to $23.8 billion, while adjusted earnings per share fell 1.9% to $2.55 (impacted by the consumer health separation-related tax).
It also continues to invest heavily in R&D, which totaled $3.6 billion in Q3. In addition, the company is working to strengthen its MedTech (medical technology) segment. It recently announced its intention to acquire medical device company Abiomed, which could boost its MedTech revenue in the coming years.
Johnson & Johnson has a dividend yield of 2.5%. The company increased its quarterly dividend by 6.6% in the first quarter to $1.13 per share, which marked its 60th consecutive dividend hike. Market volatility hasn't affected its dividend payouts, which is why I believe it will continue to grow its revenue and profits while returning payments to shareholders.
3. Procter & Gamble
Procter & Gamble (NYSE: PG), the maker of brands such as Pampers, Tide, and Gillette, is well-known around the world. It has also earned the title of Dividend King due to its consistent dividend increases over the last 66 years, proving to investors how stable its business is despite market highs and lows.
In its recent fiscal Q1 (period ended Sept. 30), net sales increased 1% year over year to $21 billion, while diluted earnings per share fell 2% to $1.57. P&G generated 86% of its net earnings as free cash flow (free cash flow productivity), allowing it to pay out $2.3 billion in dividends.
Management anticipates some headwinds in fiscal 2023 as a result of rising raw material costs. Thus, the company now expects revenue to be down 1% to 3% from last year.
Its diverse business has kept it stable for years and may continue to do so in the future. Despite market headwinds, P&G expects to generate 90% free cash flow productivity this fiscal year, allowing it to pay close to $9 billion in dividends and repurchase $6 billion to $8 billion of common stock.
The company increased its quarterly dividend by 5% year over year to $0.91 per share in April. With a current dividend yield of 2.5%, P&G is a good way to earn some passive income.
JNJ Dividend Yield data by YCharts
Why these are safe stocks
All three stocks pay out significantly more than the S&P 500's current average dividend yield of 1.6%. When selecting dividend stocks, however, yield is not the only factor to consider. Investors should consider consistency in dividend payments. Earning the title of Dividend King also ensures that investors will have access to consistent income regardless of economic cycles.
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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 Biopharma company AbbVie's (NYSE: ABBV) shares have jumped 18% so far this year, compared to the broader market's drop of roughly 17%. Last year, it generated $21 billion in annual sales, accounting for 37% of AbbVie's total revenue. AbbVie has earned the prestigious title of Dividend King by raising dividends for 50 years in a row. | AbbVie Biopharma company AbbVie's (NYSE: ABBV) shares have jumped 18% so far this year, compared to the broader market's drop of roughly 17%. Last year, it generated $21 billion in annual sales, accounting for 37% of AbbVie's total revenue. AbbVie has earned the prestigious title of Dividend King by raising dividends for 50 years in a row. | AbbVie Biopharma company AbbVie's (NYSE: ABBV) shares have jumped 18% so far this year, compared to the broader market's drop of roughly 17%. Last year, it generated $21 billion in annual sales, accounting for 37% of AbbVie's total revenue. AbbVie has earned the prestigious title of Dividend King by raising dividends for 50 years in a row. | AbbVie Biopharma company AbbVie's (NYSE: ABBV) shares have jumped 18% so far this year, compared to the broader market's drop of roughly 17%. Last year, it generated $21 billion in annual sales, accounting for 37% of AbbVie's total revenue. AbbVie has earned the prestigious title of Dividend King by raising dividends for 50 years in a row. |
22973.0 | 2022-11-30 00:00:00 UTC | Is iShares Core High Dividend ETF (HDV) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-ishares-core-high-dividend-etf-hdv-a-strong-etf-right-now-5 | nan | nan | Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the iShares Core High Dividend ETF (HDV) is a smart beta exchange traded fund launched on 03/29/2011.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
HDV is managed by Blackrock, and this fund has amassed over $12.54 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. HDV seeks to match the performance of the Morningstar Dividend Yield Focus Index before fees and expenses.
The Morningstar Dividend Yield Focus Index offers exposure to high quality U.S. domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.08% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 3.41%.
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.
HDV's heaviest allocation is in the Healthcare sector, which is about 24.30% of the portfolio. Its Energy and Consumer Staples round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV).
The top 10 holdings account for about 36.64% of total assets under management.
Performance and Risk
Year-to-date, the iShares Core High Dividend ETF return is roughly 7.60% so far, and was up about 13.12% over the last 12 months (as of 11/30/2022). HDV has traded between $91.29 and $109.92 in this past 52-week period.
The ETF has a beta of 0.83 and standard deviation of 23.06% for the trailing three-year period, making it a medium risk choice in the space. With about 81 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $54.69 billion in assets, Vanguard Value ETF has $106.17 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Core High Dividend ETF (HDV): ETF Research Reports
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). Click to get this free report iShares Core High Dividend ETF (HDV): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the iShares Core High Dividend ETF (HDV) is a smart beta exchange traded fund launched on 03/29/2011. | Click to get this free report iShares Core High Dividend ETF (HDV): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). Alternatives IShares Core High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. | Click to get this free report iShares Core High Dividend ETF (HDV): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the iShares Core High Dividend ETF (HDV) is a smart beta exchange traded fund launched on 03/29/2011. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). Click to get this free report iShares Core High Dividend ETF (HDV): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the iShares Core High Dividend ETF (HDV) is a smart beta exchange traded fund launched on 03/29/2011. |
22974.0 | 2022-11-29 00:00:00 UTC | FOCUS-Rare success for Alzheimer's research unlocks hope for future therapies | ABBV | https://www.nasdaq.com/articles/focus-rare-success-for-alzheimers-research-unlocks-hope-for-future-therapies-0 | nan | nan | By Julie Steenhuysen
CHICAGO, Nov 29 (Reuters) - The first big breakthrough in 30 years of Alzheimer’s research is providing momentum for clinical trials of “cocktail” treatments targeting the two hallmark proteins associated with the mind-robbing disease, according to interviews with researchers and pharmaceutical executives.
Drugmakers Eisai Co Ltd 4523.T and Biogen BIIB.O
reported in September that their therapy lecanemab could slow progress of the disease by 27% over 18 months compared with a placebo [.
The finding validates the theory that clearing the amyloid protein that forms clumps in the brains of Alzheimer’s patients could slow or halt the disease and has strengthened the support from some scientists for simultaneously targeting another notorious protein linked to Alzheimer's: tau.
Eisai and Biogen are scheduled to present full data from their lecanemab study on Tuesday at the Clinical Trials on Alzheimer's Disease conference in San Francisco. The U.S. Food and Drug Administration is expected to make a decision by early January on the companies’ application for accelerated approval.
If approved on an accelerated basis, the companies said they would immediately apply for full U.S. regulatory approval which could help secure Medicare coverage. To date, two deaths have been reported among patients who received lecanemab in conjunction with medicine to prevent or clear blood clots, though industry analysts do not expect those developments alone to prevent approval.
"I think lecanemab has reinvigorated the idea that now you could do a combination of amyloid (and) tau,” Dr. Reisa Sperling, a neurologist and Alzheimer’s researcher at Harvard Medical School, said in an interview.
Tau naturally accumulates in a memory center of the brain called the medial temporal lobe as people age. A growing body of research suggests that rising levels of amyloid in Alzheimer’s patients act as an accelerant, causing an explosive spread of tau that forms toxic tangles inside brain cells, eventually killing them.
“We've been trying to do combination trials for years,” Sperling said. Nearly a decade ago, Alzheimer’s experts met in Washington to discuss testing combined therapies. At the time, “no one would listen,” she said.
Now, however, Sperling and other researchers in the Alzheimer's Clinical Trials Consortium (ACTC), a research network backed by the National Institute on Aging (NIA), say drugmakers are increasingly interested in participating in a study to test tau drugs alone and in combination with anti-amyloid drugs such as lecanemab.
“We've been talking to multiple companies about working with us on our proposed platform, which can evaluate multiple drugs, and everybody's interested,” said Dr. Paul Aisen, director of the Alzheimer’s Therapeutic Research Institute at the University of Southern California’s Keck School of Medicine, and a leader with Sperling of the ACTC.
The scientists said they expect an answer on funding by year-end. The U.S. National Institutes of Health, which oversees NIA, said it does not discuss grants under review.
BILLIONS SPENT
More than 6 million Americans have Alzheimer’s, costing the U.S. economy nearly $6 billion a year in direct spending and unpaid caregiving expenses, according to congressional briefing documents. By 2050, Alzheimer’s cases are expected to double to 12.7 million, bringing the total yearly cost to nearly $1 trillion, according to the documents.
Last year, the FDA gave Biogen and Eisai’s drug aducanumab conditional approval even though it failed one of its two late-stage trials. The approval was based on the drug’s ability to remove amyloid from the brain.
Biogen initially priced the drug at $56,000 a year, but the U.S. Centers for Medicare and Medicaid Services said it needed more compelling evidence, and that Medicare would only cover the drug for use in clinical trials.
Lecanemab’s success rests on years of research into the causes of Alzheimer’s as well as advances in measuring amyloid deposits through brain scans and spinal fluids. Trials of tau drugs will aim to build on that progress, using brain scans, spinal fluids and blood tests to better assess the stage of disease, when to intervene and whether the drug is hitting its target. That would allow companies to test drugs even before symptoms emerge.
Nearly a dozen drugmakers, including Roche ROG.S, Merck & Co MRK.N, Johnson & Johnson JNJ.N and Eli Lilly and CoLLY.N, are working on therapies that target tau. At least 16 treatments are being tested in clinical trials, with results expected over the next three years, according to a Reuters review of the clinicaltrials.gov registry.
Merck is testing its MK-2214 therapy aimed at clearing tau in patients in very early stages of the disease in several small trials.
"The understanding of the disease is getting much, much better," said Jason Uslaner, Merck’s head of discovery neuroscience. The drugmaker has been largely absent from the Alzheimer's space after the high-profile failure of its drug verubecestat five years ago.
So far, only a few trials combine an amyloid-lowering therapy with a drug that targets tau in a “cocktail” approach, similar to those used against cancers and HIV.
Such combinations may improve on the benefit of lowering amyloid alone in people who have symptoms, researchers told Reuters. And when used earlier in the disease, the hope is that they might prevent dementia altogether.
“It may be that you need both - the removal of amyloid that's driving that biological cascade - and you need to clean up any tau that's already spreading from one cell to another,” said Dr. Adam Boxer, a tau expert at the University of California San Francisco (UCSF) Memory and Aging Center.
But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. A drug from Roche, semorinemab, showed limited effectiveness.
"It took maybe 20 or 30 years before we found a drug that really targeted the right form of amyloid to make a difference,” Boxer said. “It’s still early days.”
(Reporting by Julie Steenhuysen; Editing by Michele Gershberg and Suzanne Goldenberg)
((julie.steenhuysen@thomsonreuters.com; 312-408-8131; Reuters Messaging: Julie.steenhuysen.reuters.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. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. Eisai and Biogen are scheduled to present full data from their lecanemab study on Tuesday at the Clinical Trials on Alzheimer's Disease conference in San Francisco. A growing body of research suggests that rising levels of amyloid in Alzheimer’s patients act as an accelerant, causing an explosive spread of tau that forms toxic tangles inside brain cells, eventually killing them. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. Nearly a dozen drugmakers, including Roche ROG.S, Merck & Co MRK.N, Johnson & Johnson JNJ.N and Eli Lilly and CoLLY.N, are working on therapies that target tau. Merck is testing its MK-2214 therapy aimed at clearing tau in patients in very early stages of the disease in several small trials. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. The finding validates the theory that clearing the amyloid protein that forms clumps in the brains of Alzheimer’s patients could slow or halt the disease and has strengthened the support from some scientists for simultaneously targeting another notorious protein linked to Alzheimer's: tau. Now, however, Sperling and other researchers in the Alzheimer's Clinical Trials Consortium (ACTC), a research network backed by the National Institute on Aging (NIA), say drugmakers are increasingly interested in participating in a study to test tau drugs alone and in combination with anti-amyloid drugs such as lecanemab. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. “We've been trying to do combination trials for years,” Sperling said. Merck is testing its MK-2214 therapy aimed at clearing tau in patients in very early stages of the disease in several small trials. |
22975.0 | 2022-11-29 00:00:00 UTC | AbbVie To Present At Evercore ISI Virtual HealthCONx Conference; Webcast At 10:55 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-to-present-at-evercore-isi-virtual-healthconx-conference-webcast-at-10%3A55-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will participate in the 5th Annual Evercore ISI Virtual HealthCONx Conference.
The event is scheduled to begin at 10:55 AM ET on November 29, 2022.
To access the live webcast, log on to http://investors.abbvie.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) will participate in the 5th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:55 AM ET on November 29, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the 5th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:55 AM ET on November 29, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the 5th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:55 AM ET on November 29, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the 5th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:55 AM ET on November 29, 2022. |
22976.0 | 2022-11-29 00:00:00 UTC | FOCUS-Rare success for Alzheimer's research unlocks hope for future therapies | ABBV | https://www.nasdaq.com/articles/focus-rare-success-for-alzheimers-research-unlocks-hope-for-future-therapies | nan | nan | By Julie Steenhuysen
CHICAGO, Nov 29 (Reuters) - The first big breakthrough in 30 years of Alzheimer’s research is providing momentum for clinical trials of “cocktail” treatments targeting the two hallmark proteins associated with the mind-robbing disease, according to interviews with researchers and pharmaceutical executives.
Drugmakers Eisai Co Ltd 4523.T and Biogen BIIB.O reported in September that their therapy lecanemab could slow progress of the disease by 27% over 18 months compared with a placebo [.
The finding validates the theory that clearing the amyloid protein that forms clumps in the brains of Alzheimer’s patients could slow or halt the disease and has strengthened the support from some scientists for simultaneously targeting another notorious protein linked to Alzheimer's: tau.
Eisai and Biogen are scheduled to present full data from their lecanemab study on Tuesday at the Clinical Trials on Alzheimer's Disease conference in San Francisco. The U.S. Food and Drug Administration is expected to make a decision by early January on the companies’ application for accelerated approval.
If approved on an accelerated basis, the companies said they would immediately apply for full U.S. regulatory approval which could help secure Medicare coverage.
"I think lecanemab has reinvigorated the idea that now you could do a combination of amyloid (and) tau,” Dr. Reisa Sperling, a neurologist and Alzheimer’s researcher at Harvard Medical School, said in an interview.
Tau naturally accumulates in a memory center of the brain called the medial temporal lobe as people age. A growing body of research suggests that rising levels of amyloid in Alzheimer’s patients act as an accelerant, causing an explosive spread of tau that forms toxic tangles inside brain cells, eventually killing them.
“We’ve been trying to do combination trials for years,” Sperling said. Nearly a decade ago, Alzheimer’s experts met in Washington to discuss testing combined therapies. At the time, “no one would listen,” she said.
Now, however, Sperling and other researchers in the Alzheimer's Clinical Trials Consortium (ACTC), a research network backed by the National Institute on Aging, say drugmakers are increasingly interested in participating in a study to test tau drugs alone and in combination with anti-amyloid drugs such as lecanemab.
“We've been talking to multiple companies about working with us on our proposed platform, which can evaluate multiple drugs, and everybody's interested,” said Dr. Paul Aisen, director of the Alzheimer’s Therapeutic Research Institute at the University of Southern California’s Keck School of Medicine, and a leader with Sperling of the ACTC.
The scientists said they expect an answer on funding by year-end. NIH said it does not discuss grants under review.
More than 6 million Americans have Alzheimer’s, costing the U.S. economy nearly $6 billion a year in direct spending and unpaid caregiving expenses, according to congressional briefing documents. By 2050, Alzheimer’s cases are expected to double to 12.7 million, bringing the total yearly cost to nearly $1 trillion, according to the documents.
Last year, the FDA gave Biogen and Eisai’s drug aducanumab conditional approval even though it failed one of its two late-stage trials. The approval was based on the drug’s ability to remove amyloid from the brain.
Biogen initially priced the drug at $56,000 a year, but the U.S. Centers for Medicare and Medicaid Services said it needed more compelling evidence, and that Medicare would only cover the drug for use in clinical trials.
Lecanemab’s success rests on years of research into the causes of Alzheimer’s as well as advances in measuring amyloid deposits through brain scans and spinal fluids. Trials of tau drugs will aim to build on that progress, using brain scans, spinal fluids and blood tests to better assess the stage of disease, when to intervene and whether the drug is hitting its target. That would allow companies to test drugs even before symptoms emerge.
Nearly a dozen drugmakers, including Roche ROG.S, Merck & Co MRK.N, Johnson & Johnson JNJ.N and Eli Lilly and CoLLY.N, are working on therapies that target tau. At least 16 treatments are being tested in clinical trials, with results expected over the next three years, according to a Reuters review of the clinicaltrials.gov registry.
Merck is testing its MK-2214 therapy aimed at clearing tau in patients in very early stages of the disease in several small trials.
"The understanding of the disease is getting much, much better," said Jason Uslaner, Merck’s head of discovery neuroscience. The drugmaker has been largely absent from the Alzheimer's space after the high-profile failure of its drug verubecestat five years ago.
So far, only a few trials combine an amyloid-lowering therapy with a drug that targets tau in a “cocktail” approach, similar to those used against cancers and HIV.
Such combinations may improve on the benefit of lowering amyloid alone in people who have symptoms, researchers told Reuters. And when used earlier in the disease, the hope is that they might prevent dementia altogether.
“It may be that you need both - the removal of amyloid that's driving that biological cascade - and you need to clean up any tau that's already spreading from one cell to another,” said Dr. Adam Boxer, a tau expert at the University of California San Francisco (UCSF) Memory and Aging Center.
But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. A drug from Roche, semorinemab, showed limited effectiveness.
"It took maybe 20 or 30 years before we found a drug that really targeted the right form of amyloid to make a difference,” Boxer said. “It’s still early days.”
(Reporting by Julie Steenhuysen; Editing by Michele Gershberg and Suzanne Goldenberg)
((julie.steenhuysen@thomsonreuters.com; 312-408-8131; Reuters Messaging: Julie.steenhuysen.reuters.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. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. Eisai and Biogen are scheduled to present full data from their lecanemab study on Tuesday at the Clinical Trials on Alzheimer's Disease conference in San Francisco. A growing body of research suggests that rising levels of amyloid in Alzheimer’s patients act as an accelerant, causing an explosive spread of tau that forms toxic tangles inside brain cells, eventually killing them. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. Nearly a dozen drugmakers, including Roche ROG.S, Merck & Co MRK.N, Johnson & Johnson JNJ.N and Eli Lilly and CoLLY.N, are working on therapies that target tau. Merck is testing its MK-2214 therapy aimed at clearing tau in patients in very early stages of the disease in several small trials. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. By Julie Steenhuysen CHICAGO, Nov 29 (Reuters) - The first big breakthrough in 30 years of Alzheimer’s research is providing momentum for clinical trials of “cocktail” treatments targeting the two hallmark proteins associated with the mind-robbing disease, according to interviews with researchers and pharmaceutical executives. Now, however, Sperling and other researchers in the Alzheimer's Clinical Trials Consortium (ACTC), a research network backed by the National Institute on Aging, say drugmakers are increasingly interested in participating in a study to test tau drugs alone and in combination with anti-amyloid drugs such as lecanemab. | But several antibody therapies from Lilly, Biogen and AbbVieABBV.N that were designed to slow the rate of tau accumulations failed outright last year. "I think lecanemab has reinvigorated the idea that now you could do a combination of amyloid (and) tau,” Dr. Reisa Sperling, a neurologist and Alzheimer’s researcher at Harvard Medical School, said in an interview. Merck is testing its MK-2214 therapy aimed at clearing tau in patients in very early stages of the disease in several small trials. |
22977.0 | 2022-11-29 00:00:00 UTC | 3 Reasons Pfizer Stock Will Crush the Broader Market in 2023 | ABBV | https://www.nasdaq.com/articles/3-reasons-pfizer-stock-will-crush-the-broader-market-in-2023 | nan | nan | Pfizer (NYSE: PFE) is a 173-year-old company with a huge portfolio of products. But the company truly became a household name rather recently -- in the early days of the pandemic. That's because Pfizer is the leader in the coronavirus vaccine and treatment market. And those products are set to generate more than $56 billion in sales this year.
Still, as we head toward a post-pandemic world, some investors wonder about the future of Pfizer's stock. This year, Pfizer has dropped about 16%, in line with the S&P 500. But next year, with an expected decline in coronavirus product sales, will the shares follow? Not necessarily. In fact, there are three reasons Pfizer stock could crush the broader market in 2023.
1. The coronavirus story isn't over
It's clear coronavirus vaccine sales probably will fall from today's levels. Most people who wanted a vaccine already got their primary series. And once the situation shifts from pandemic to endemic, the urgency to get vaccinated won't be as great.
That said, Pfizer predicts its coronavirus vaccine, Comirnaty, and treatment, Paxlovid, will continue to generate multibillion-dollar revenue "for the foreseeable future." Rival Moderna expects the coronavirus vaccine market to follow that of the flu vaccine market. That means companies such as Pfizer should see recurrent revenue from those who go for annual shots.
Pfizer also has indicated it may set the price of its vaccine/booster between $110 and $130 per dose in a private vaccine market. That's up from about $30 today. In a private market, drug distributors -- instead of the government -- will buy doses. And this is likely to happen next year.
There's reason to be confident about Paxlovid sales too. Experts say the coronavirus isn't going away. That means people will get sick and need treatment. Now, pharmacists can directly prescribe Paxlovid rather than waiting for a doctor's prescription. This makes it easier to get Paxlovid -- and that could lift sales.
All of this could equal significant coronavirus product sales next year and support share-price momentum.
2. A pipeline set to compensate for patent expirations
The bad news is Pfizer may lose $17 billion in revenue during the 2025 through 2030 period as certain top products lose exclusivity. But here's the good news. Pfizer plans to compensate in two ways: through acquisitions and through the advancement of its own internal pipeline.
First, let's talk acquisitions. The company has completed key deals this year. It's purchased Arena Pharmaceuticals, Biohaven Pharmaceuticals, Global Blood Therapeutics, and Reviral. Pfizer said business development deals may add $25 billion in risk-adjusted revenue to its 2030 forecast. And the acquisitions I just mentioned represent more than one-third of that.
Pfizer's own pipeline could produce as many as 19 product launches within the coming 18 months. More than two-thirds of these have blockbuster potential. And of these potential launches, the 15 developed by Pfizer represent $20 billion in sales in 2030.
So, yes, Pfizer is facing a patent cliff. But revenue probably won't drop off into the water. Instead, there's a bridge leading higher. And that bridge is potential products developed in-house and gained through acquisitions.
Optimism about this long-term growth could draw more and more investors to Pfizer, especially at today's valuation of only 7 times forward earnings. That's lower than other big pharma rivals.
PFE PE Ratio (Forward) data by YCharts
3. Its profile as a safe stock
The economy is weighing on investors' minds and portfolios these days. Rising inflation and general woes probably won't go away overnight. That means, heading into 2023, investors may favor stocks that offer a certain amount of safety.
Pfizer does this in two ways. First, it's a drugmaker with a vast portfolio of commercialized products. People need their medications no matter what the economy is doing. So, investors may feel more confident about the earnings of a pharmaceutical company than a company more directly linked to the economy.
Second, Pfizer could satisfy investors' appetite for dividends. This ensures passive income each year. And investors may especially appreciate this when times are tough.
Pfizer recently reported its 336th straight quarterly dividend. The company's cash-dividend payout ratio shows the company paid out 29% of its free cash flow in dividends last year.
Free cash flow has climbed more than 100% over the past three years. As mentioned above, coronavirus product sales should remain high. All of this means Pfizer has what it takes to continue payouts. And investors may flock to Pfizer next year for safety and passive income.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That said, Pfizer predicts its coronavirus vaccine, Comirnaty, and treatment, Paxlovid, will continue to generate multibillion-dollar revenue "for the foreseeable future." Pfizer said business development deals may add $25 billion in risk-adjusted revenue to its 2030 forecast. Optimism about this long-term growth could draw more and more investors to Pfizer, especially at today's valuation of only 7 times forward earnings. | Rival Moderna expects the coronavirus vaccine market to follow that of the flu vaccine market. A pipeline set to compensate for patent expirations The bad news is Pfizer may lose $17 billion in revenue during the 2025 through 2030 period as certain top products lose exclusivity. And of these potential launches, the 15 developed by Pfizer represent $20 billion in sales in 2030. | That's because Pfizer is the leader in the coronavirus vaccine and treatment market. That said, Pfizer predicts its coronavirus vaccine, Comirnaty, and treatment, Paxlovid, will continue to generate multibillion-dollar revenue "for the foreseeable future." * They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! | Rival Moderna expects the coronavirus vaccine market to follow that of the flu vaccine market. A pipeline set to compensate for patent expirations The bad news is Pfizer may lose $17 billion in revenue during the 2025 through 2030 period as certain top products lose exclusivity. So, investors may feel more confident about the earnings of a pharmaceutical company than a company more directly linked to the economy. |
22978.0 | 2022-11-28 00:00:00 UTC | Here's What's Driving AbbVie's (ABBV) Outperformance This Year | ABBV | https://www.nasdaq.com/articles/heres-whats-driving-abbvies-abbv-outperformance-this-year | nan | nan | AbbVie ABBV stock has risen 17.9% this year so far compared with an increase of 8.5% for the industry.
Image Source: Zacks Investment Research
AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has already lost patent protection in Europe and is due to face biosimilar competition in the United States in 2023. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica, which it markets in partnership with J&J JNJ. Its newest immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib) position it well for long-term growth.
Humira continues to witness strong demand trends in the United States despite new mechanisms of action and competition from indirect biosimilars. Currently approved for several indications, Humira sales have increased consistently, backed by robust demand trends.
Among AbbVie’s newer medicines, immunology drugs, Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by their approval in new indications. The drugs generated sales of $3.59 billion and $1.75 billion in the first nine months of 2022, rising 75.6% and 54.5%, respectively, year over year. Both Skyrizi and Rinvoq were approved for active psoriatic arthritis in 2021/early 2022. Rinvoq was approved for atopic dermatitis, ulcerative colitis, ankylosing spondylitis and non-radiographic axial SpA and Skyrizi for Crohn’s disease in 2022. With approvals for such new indications, sales of these drugs could be higher in 2023/2024 and have the potential to replace Humira when generics are launched in the United States in 2023. AbbVie expects the combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
Meanwhile, new migraine drugs, Ubrelvy and Qulipta, represent a $1 billion-plus peak sales opportunity each.
In its oncology franchise, the strong growth of Venclexta sales is making up for lower U.S. sales of J&J-partnered Imbruvica. U.S. sales of AbbVie/J&J’s Imbruvica are being hurt by lower new patient starts in CLL due to delayed recovery from the pandemic and increasing competition from newer therapies.
AbbVie markets Venclexta/Venclyxto in partnership with Roche RHHBY. AbbVie and Roche jointly commercialize Venclexta in the United States while AbbVie markets it outside the country.
Label expansion approvals in the past couple of years have expanded the eligible patient population of AbbVie/Roche’s Venclexta/Venclyxto significantly, which is boosting sales from the drug. AbbVie expects to file a regulatory application seeking approval of Venclexta in relapsed/refractory multiple myeloma in 2023 and in myelodysplastic syndrome or MDS in 2024.
Besides, AbbVie has an exciting and diverse pipeline of promising new therapies in both blood cancers and solid tumors like navitoclax for myelofibrosis, epcoritamab, a CD3xCD20 bispecific, across several B-cell malignancies, including diffuse B cell and follicular lymphomas; ABBV-383, a BCMA CD3 bispecific, being studied for multiple myeloma and Teliso-V, a promising c-Met ADC being studied for nonsquamous non-small cell lung cancer. AbbVie and partner Genmab’s GMAB regulatory application seeing accelerated approval of epcoritamab in patients with relapsed/refractory large B-cell lymphoma is under priority review in the United States and under review in the EU. Regulatory decisions for AbbVie/Genmab’s epcoritamab are expected in 2023.
AbbVie also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Several data readouts are expected in 2023, which could be catalysts for the stock.
AbbVie has its share of problems. Increasing existing and new competition, the persistent weakness of the CLL market and potential erosion from recent unfavorable changes to the NCCN guideline preference for Imbruvica in CLL are expected to hurt Imbruvica’s performance in 2023.
Economic pressure is impacting consumers' discretionary spending, which is slowing down treatment procedures and hurting sales in the aesthetics portfolio, mainly Juvederm and body contouring portfolio products.
There are concerns about AbbVie’s long-term sales growth once Humira generics enter the U.S. market in 2023.
Nonetheless, strong sales of Venclexta, Skyrizi and Rinvoq, regular pipeline success, including further label expansions of Skyrizi and Rinvoq and successful collaboration deals should keep the stock afloat in 2023.
Zacks Rank
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has already lost patent protection in Europe and is due to face biosimilar competition in the United States in 2023. Besides, AbbVie has an exciting and diverse pipeline of promising new therapies in both blood cancers and solid tumors like navitoclax for myelofibrosis, epcoritamab, a CD3xCD20 bispecific, across several B-cell malignancies, including diffuse B cell and follicular lymphomas; ABBV-383, a BCMA CD3 bispecific, being studied for multiple myeloma and Teliso-V, a promising c-Met ADC being studied for nonsquamous non-small cell lung cancer. | AbbVie and partner Genmab’s GMAB regulatory application seeing accelerated approval of epcoritamab in patients with relapsed/refractory large B-cell lymphoma is under priority review in the United States and under review in the EU. 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 Genmab AS Sponsored ADR (GMAB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV stock has risen 17.9% this year so far compared with an increase of 8.5% for the industry. | AbbVie expects the combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025. 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 Genmab AS Sponsored ADR (GMAB) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV stock has risen 17.9% this year so far compared with an increase of 8.5% for the industry. | AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica, which it markets in partnership with J&J JNJ. AbbVie ABBV stock has risen 17.9% this year so far compared with an increase of 8.5% for the industry. Image Source: Zacks Investment Research AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. |
22979.0 | 2022-11-28 00:00:00 UTC | AbbVie’s (NYSE:ABBV) Loss Could be CVS’s (NYSE:CVS) Gain | ABBV | https://www.nasdaq.com/articles/abbvies-nyse%3Aabbv-loss-could-be-cvss-nyse%3Acvs-gain | nan | nan | AbbVie’s (NYSE:ABBV) popular drug Humira is losing ground in the international markets due to competition from biosimilars. While ABBV’s Humira faces challenges, a Wall Street Journal report highlighted that pharmacy-benefit managers (PBMs) like CVS Health’s (NYSE:CVS) Caremark and UnitedHealth’s (NYSE:UNH) Optum Rx would benefit from the entry of biosimilars in the U.S.
It’s worth mentioning that Humira (used for the treatment of arthritis, ankylosing spondylitis, and Crohn’s disease) has been the most successful drug for ABBV and generated record revenues for this biopharmaceutical company. However, Humira is losing ground in the international market and has reported a sales decline in the past two consecutive quarters due to the entry of cheaper biosimilars.
The challenges will likely increase further as biosimilars, including Amgen’s (NASDAQ:AMGN) candidate, enter the U.S. market in 2023.
ABBV’s CEO and board chairman Richard Gonzales expects the “bulk of the erosion” to occur in 2023 as biosimilars enter the U.S. market. He expects “some additional erosion in 2024, in 2025 and beyond.” However, Gonzales is confident and expects to return to growth.
While ABBV’s Humira revenues will decline (learn more about ABV’s financials here), the Wall Street Journal report highlighted that PBMs persuading patients to adopt cheaper alternatives would likely make money.
Against this background, let’s see what’s in store for ABBV stock.
Is AbbVie a Buy, Sell, or Hold?
AbbVie stock has a Moderate Buy consensus rating on TipRanks based on five Buy, six Hold, and one Sell. Meanwhile, analysts’ price target of $156.09 implies 2.2% downside potential.
Nevertheless, ABBV stock carries a “Perfect 10” score on TipRanks. Meanwhile, hedge funds bought 249.2K ABBV stock last quarter.
Bottom Line
The loss of exclusivity for Humira is a negative development for ABBV. However, its diversified portfolio and upside from Skyrizi and Rinvoq could continue to support ABBV’s growth. While analysts are cautiously optimistic about ABBV stock, CVS stock has a Strong Buy consensus rating on TipRanks. Meanwhile, UNH has a Moderate Buy consensus rating on TipRanks.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While ABBV’s Humira faces challenges, a Wall Street Journal report highlighted that pharmacy-benefit managers (PBMs) like CVS Health’s (NYSE:CVS) Caremark and UnitedHealth’s (NYSE:UNH) Optum Rx would benefit from the entry of biosimilars in the U.S. It’s worth mentioning that Humira (used for the treatment of arthritis, ankylosing spondylitis, and Crohn’s disease) has been the most successful drug for ABBV and generated record revenues for this biopharmaceutical company. While ABBV’s Humira revenues will decline (learn more about ABV’s financials here), the Wall Street Journal report highlighted that PBMs persuading patients to adopt cheaper alternatives would likely make money. AbbVie’s (NYSE:ABBV) popular drug Humira is losing ground in the international markets due to competition from biosimilars. | AbbVie’s (NYSE:ABBV) popular drug Humira is losing ground in the international markets due to competition from biosimilars. While ABBV’s Humira faces challenges, a Wall Street Journal report highlighted that pharmacy-benefit managers (PBMs) like CVS Health’s (NYSE:CVS) Caremark and UnitedHealth’s (NYSE:UNH) Optum Rx would benefit from the entry of biosimilars in the U.S. It’s worth mentioning that Humira (used for the treatment of arthritis, ankylosing spondylitis, and Crohn’s disease) has been the most successful drug for ABBV and generated record revenues for this biopharmaceutical company. While analysts are cautiously optimistic about ABBV stock, CVS stock has a Strong Buy consensus rating on TipRanks. | While ABBV’s Humira faces challenges, a Wall Street Journal report highlighted that pharmacy-benefit managers (PBMs) like CVS Health’s (NYSE:CVS) Caremark and UnitedHealth’s (NYSE:UNH) Optum Rx would benefit from the entry of biosimilars in the U.S. It’s worth mentioning that Humira (used for the treatment of arthritis, ankylosing spondylitis, and Crohn’s disease) has been the most successful drug for ABBV and generated record revenues for this biopharmaceutical company. AbbVie stock has a Moderate Buy consensus rating on TipRanks based on five Buy, six Hold, and one Sell. While analysts are cautiously optimistic about ABBV stock, CVS stock has a Strong Buy consensus rating on TipRanks. | ABBV’s CEO and board chairman Richard Gonzales expects the “bulk of the erosion” to occur in 2023 as biosimilars enter the U.S. market. While analysts are cautiously optimistic about ABBV stock, CVS stock has a Strong Buy consensus rating on TipRanks. AbbVie’s (NYSE:ABBV) popular drug Humira is losing ground in the international markets due to competition from biosimilars. |
22980.0 | 2022-11-27 00:00:00 UTC | 8 Dividend Aristocrats to Buy Now for a Lifetime of Passive Income | ABBV | https://www.nasdaq.com/articles/8-dividend-aristocrats-to-buy-now-for-a-lifetime-of-passive-income | nan | nan | There is no one-size-fits-all strategy that has the potential to make investors wealthy over time, but there are few approaches that have a better track record of success than investing in dividend stocks.
Companies that pay dividends are often successful, profitable businesses -- year in, year out -- which have generally proven over time that they can withstand market cycles and recessions. They also have a bright-line history of outperforming their peers that don't pay a dividend.
The asset managers at Hartford Financial Services looked at the performance of the benchmark S&P 500 going all the way back to 1930 and found there was not a single decade in which dividend stocks in the index didn't generate positive returns, even when the broader market was losing money for investors.
Image source: Getty Images.
Dividend growth for the win
From 1973 on, the study also found stocks that grew their dividend or initiated one far outperformed every other category of stock, especially those that didn't pay one, and even worse, those that cut or eliminated their payout. Dividend growers returned 10.7% annually, on average, versus 4.8% for non-payers (and negative 0.5% for those that cut or eliminated the dividend). The S&P 500 itself returned 8.2% annually.
It's one reason why Dividend Aristocrats are such potent stocks. They are S&P 500 stocks that have raised their dividend every year for at least 25 years, and they tend to have higher yields than the average index stock (2.5% vs. 1.5%), offer lower risk, and -- especially pertinent to today's investment climate -- outperform the index 70% of the time in months when the S&P 500 declines.
As part of a core holding in your portfolio, the following eight Dividend Aristocrats could offer you a lifetime of income.
AbbVie
AbbVie (NYSE: ABBV) is not your typical Dividend Aristocrat because Standard & Poor's allows spinoffs to absorb the dividend history of their former parent company. Since the pharmaceutical stock was spun off from Abbott Laboratories (another Dividend Aristocrat) in 2013, AbbVie enjoys the double-dipping afforded by the rules and is credited with some 50 years of dividend payments.
While the drug developer has been paying dividends independently for only a relatively short time, AbbVie has rewarded shareholders by increasing the payout every year so that it has hiked its value from the original quarterly dividend of $0.40 per share to its current level of $1.48 per share, a near fourfold increase in nine years. The dividend yields 3.7% annually.
With a robust pipeline of drugs as well as its legacy Humira treatment for rheumatoid arthritis lining up multiple additional indications in the U.S. and abroad, AbbVie still offers plenty of growth for years to come.
Amcor
Born of a merger with U.S.-based Bemis in 2019, U.K.-based Amcor (NYSE: AMCR) makes flexible packaging for food, beverage, pharmaceuticals, and personal care products. While some fear a recession could impact growth, Amcor notes consumer preference for smaller, more affordable items actually drives more packaging usage. It has been hit by inflation, unfavorable currency exchange rates, and supply chain issues, only some of which it was able to offset by price increases.
Amcor recently lowered its guidance for its fiscal year due to the U.S. dollar's strength, but it expects to produce between $1 billion and $1.1 billion in free cash flow. The packaging specialist's dividend of $0.49 per share currently yields 4.1% annually, which should provide investors with plenty of income to offset any short-term impact on the stock price.
Consolidated Edison
Regulated electric utility Consolidated Edison (NYSE: ED), also known as ConEd, has increased its dividend for 48 consecutive years, the longest streak for any utility in the S&P 500 index. It means it is poised to become a Dividend King in short order, or a stock that has raised its payout for 50 or more years (S&P 500 membership not required).
ConEd recently beat analyst earnings and revenue estimates for the third quarter as its deeply protected competitive moat and recession-resistant business delivered gains, though the prospect for persistent inflation could lead to consumers economizing on their heating bills even during a cold winter. Commercial customers might be affected by an economic downturn, but the overall impact ought to be muted.
The electric, gas, and steam delivery utility recently announced it would be selling its clean energy business and using the proceeds to pay down debt. Its annual dividend of $3.16 per share yields 3.3%.
Image source: Getty Images.
Chevron
One of the biggest and best-run oil and gas giants, Chevron (NYSE: CVX) is reporting record earnings on elevated pricing, limited supply, and continuing global uncertainty about Russia's invasion of Ukraine and the resulting sanctions that were imposed on Russian oil.
Despite this, Chevron stock remains cheap. It trades at 10 times trailing earnings and next year's estimates, a fraction of its projected earnings growth rate, and just 14 times the free cash flow it produces.
Fossil fuels still have a long opportunity for growth because, despite warnings of peak oil (which you don't hear too much about anymore) and the advent of alternative fuels, oil and gas are far too ingrained to simply shut off. There's also not the capacity available to replace fossil fuels with so-called clean energy, sources that have a fair amount of negative environmental impact themselves. Yet Chevron is also ramping up production of such sources and is spending about $2 billion through 2028 on decarbonization projects.
In addition to a cheap stock, Chevron's dividend yields 3.1% today and the company has bought back $7.5 billion worth of stock so far this year.
McDonald's
McDonald's (NYSE: MCD) is the largest restaurant chain in the world and it's still growing as the fast-food giant continues to resonate with consumers. It is seeing greater store traffic in all the regions in which it operates while also enjoying double-digit same-store sales growth.
Heading into a potential recessionary period marked with high inflation, the value-priced food that McDonald's sells could help consumers get good value for a decent tasty meal. While its own costs have increased as a result, impacting margins, CEO Chris Kempczinski said, "We are operating from a position of competitive strength."
Having perfected the drive-thru concept, McDonald's is leaning hard into its mobile and delivery strategies, which has been paying off with its stock. The shares trade near all-time highs, which might have investors worried about buying at the top, but that can be alleviated by waiting for a dip if one so chooses. A dollar-cost averaging approach could also be a benefit while investors enjoy its $6.08-per-share dividend, which yields 2.2% annually.
Stanley Black & Decker
Toolmaker Stanley Black & Decker (NYSE: SWK) has been getting hammered as the housing market slowed and then began to fall, but that is also forcing the company to get leaner and focus more intently on its core business in a bid to align with current conditions.
Yet with a business history extending back nearly 150 years, Stanley has been through such business cycles before and has weathered them without issue. In the process, it has grown and now owns some of the biggest and best brands in the industry, including Craftsman, DeWalt, Bostitch, and Porter-Cable, not to mention Stanley and Black & Decker.
Stanley trades at less than 18 times next year's earnings estimates and just a fraction of its sales, while paying a dividend as it has every year for the past 146 years. And it's increased that payout for 55 straight years. The dividend currently yields an attractive 3.9% annually.
Sysco
Food service distributor Sysco (NYSE: SYY) could be affected by a recession as it would impact how many people are eating away from home, whether that's at a restaurant, a hospital, a school, or a hotel. Inflation and high gas costs would also impact its truck-heavy delivery business.
Yet business is still growing, and though it fell short of analyst expectations in the latest quarter, people still need to eat. It has been through these kinds of downturns before and has always bounced back, and there's nothing indicating it won't do so again. It may also be a fortuitous time as the industry is highly fragmented with many smaller players that could become potential takeover targets, allowing Sysco to build up its position in new markets.
Its stock had been down 20% year to date just two months ago, but has marched back strongly as expected, and now Sysco is riding 10% above where it started the year. Even so, it goes for 18 times earnings estimates and a fraction of its sales, which when coupled with its history of dividend payments makes it a good long-term buy.
Walmart
Walmart (NYSE: WMT) will come into its own once again if a recession does hit. It's already seeing robust growth, particularly in groceries, as consumers seek out its everyday low prices to make their budgets go further. The retailer is even seeing customers with household incomes north of $100,000 shopping its stores, showing how much its value proposition appeals to consumers of all economic backgrounds.
It stands in stark contrast to how rival Target has fared, and is likely because Walmart is a consumer staples stock and Target a consumer discretionary one. When the markets and economy rebound, as they inevitably will, Target (also a Dividend Aristocrat) will likely come into its own once again as consumers pursue the higher-margin items for which the mass merchandise retailer is known.
For now, though, they'll be sticking with the store that gives them across-the-board good value, and that means -- especially in a recession -- Walmart will be a leader. With a dividend yielding 1.5% that it's paid and increased for almost 50 years, this discount king should soon be a Dividend King as well.
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Rich Duprey has positions in AbbVie, Amcor plc, Chevron, Consolidated Edison, and Sysco. The Motley Fool has positions in and recommends Amcor Limited, Target, and Walmart Inc. The Motley Fool recommends the following options: long January 2023 $50 calls on Sysco and short November 2022 $90 calls on Sysco. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a robust pipeline of drugs as well as its legacy Humira treatment for rheumatoid arthritis lining up multiple additional indications in the U.S. and abroad, AbbVie still offers plenty of growth for years to come. AbbVie AbbVie (NYSE: ABBV) is not your typical Dividend Aristocrat because Standard & Poor's allows spinoffs to absorb the dividend history of their former parent company. Since the pharmaceutical stock was spun off from Abbott Laboratories (another Dividend Aristocrat) in 2013, AbbVie enjoys the double-dipping afforded by the rules and is credited with some 50 years of dividend payments. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 Rich Duprey has positions in AbbVie, Amcor plc, Chevron, Consolidated Edison, and Sysco. AbbVie AbbVie (NYSE: ABBV) is not your typical Dividend Aristocrat because Standard & Poor's allows spinoffs to absorb the dividend history of their former parent company. Since the pharmaceutical stock was spun off from Abbott Laboratories (another Dividend Aristocrat) in 2013, AbbVie enjoys the double-dipping afforded by the rules and is credited with some 50 years of dividend payments. | While the drug developer has been paying dividends independently for only a relatively short time, AbbVie has rewarded shareholders by increasing the payout every year so that it has hiked its value from the original quarterly dividend of $0.40 per share to its current level of $1.48 per share, a near fourfold increase in nine years. AbbVie AbbVie (NYSE: ABBV) is not your typical Dividend Aristocrat because Standard & Poor's allows spinoffs to absorb the dividend history of their former parent company. Since the pharmaceutical stock was spun off from Abbott Laboratories (another Dividend Aristocrat) in 2013, AbbVie enjoys the double-dipping afforded by the rules and is credited with some 50 years of dividend payments. | While the drug developer has been paying dividends independently for only a relatively short time, AbbVie has rewarded shareholders by increasing the payout every year so that it has hiked its value from the original quarterly dividend of $0.40 per share to its current level of $1.48 per share, a near fourfold increase in nine years. AbbVie AbbVie (NYSE: ABBV) is not your typical Dividend Aristocrat because Standard & Poor's allows spinoffs to absorb the dividend history of their former parent company. Since the pharmaceutical stock was spun off from Abbott Laboratories (another Dividend Aristocrat) in 2013, AbbVie enjoys the double-dipping afforded by the rules and is credited with some 50 years of dividend payments. |
22981.0 | 2022-11-26 00:00:00 UTC | 3 Dividend Stocks to Hold Forever | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-hold-forever | nan | nan | Some dividend stocks have staying power. You can count on them to pay dividends quarter after quarter as well as deliver solid growth over the long term.
We asked three Motley Fool contributors to identify dividend stocks that you can hold forever. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ).
A proven dividend payer
David Jagielski (AbbVie): For a dividend-paying company to be a good investment to hold forever, it should have a solid track record for increasing dividends, strong fundamentals, and plenty of growth opportunities. AbbVie has all of those things.
The stock is a Dividend King with 50 consecutive years of dividend increases. It has boosted its payout significantly over the years, doubling the dividend in the past five years. And while the company may not always aggressively raise its dividend at such a high rate, it has shown that it is eager to reward investors through regular and generous increases.
In order to be able to continue raising its payouts, AbbVie needs strong financials and growth opportunities. Over the trailing 12 months, the company has averaged an impressive profit margin of 24%. Its free cash flow of $21.9 billion during that time is more than double what the company paid out in dividends ($9.9 billion), giving it a good cushion.
The company will suffer a blow next year as top-selling drug Humira loses U.S. exclusivity, but AbbVie has a pipeline that boasts dozens of programs. And sales for immunology drugs Skyrizi and Rinvoq soared 76% and 55% year over year, respectively, through the first three quarters of the year. The drugs should replace Humira's lost revenue in the long run. Overall, AbbVie's business still looks to be in solid shape.
If things get shaky, the company's strong free cash flow could enable AbbVie to pursue acquisitions to bolster its business. It has made big deals in the past, such as the acquisition of Botox maker Allergan for $63 billion in 2020.
AbbVie's stock currently trades at a forward price-to-earnings multiple of 14, which is cheaper than the S&P 500 average of 18. With a modest valuation, a great growing dividend, and promising growth potential, AbbVie is a dividend stock that I'd feel comfortable holding forever.
The patent cliff is not worrisome
Prosper Junior Bakiny (Bristol Myers Squibb): Bristol Myers' history dates back well over 100 years, and one of the keys to the company's success has been its ability to innovate. The drugmaker is still at it, racking up brand-new approvals to complement its already rich lineup of medicines.
Bristol Myers' portfolio of drugs that earned approvals in 2019 or later, generated $553 million in revenue in the third quarter, representing a 61% year-over-year increase. These products will continue rapidly growing their sales in the coming years, helping the company deal with several important patent cliffs.
Cancer drug Revlimid, one of the company's crown jewels, started facing generic competition this year. Further, blood thinner Eliquis and cancer medicine Opdivo, among Bristol Myers' best-selling medicines, will lose patent protection before the end of the decade.
But investors can rest assured: Bristol Myers' solid pipeline stands as one of its most important competitive advantages. It features several dozen ongoing clinical programs, a decent percentage of which should go on to win Bristol Myers' brand-new approvals or label expansions.
New approvals will translate to continued revenue and earnings growth, which should continue to drive solid stock market performance. Bristol Myers' stock performance has crushed the broader market over the past three decades. Its solid business is also why it can sustain its dividends. The company currently offers an attractive yield of 2.74%, a conservative cash payout ratio of 36.1%, and has raised its dividends by 54.3% in the past decade.
Bristol Myers' excellent dividend profile only enhances its solid business that can continue to thrive for much longer, regardless of changing economic conditions, geopolitical tensions, or whatever other challenges the market will face in the coming years. Investors can safely park this top dividend stock in their portfolios.
A well-known, solid company
Keith Speights (Johnson & Johnson): Blue chip stocks stand out as great picks to buy and hold forever. These companies are household names that are leaders in their industries. I think Johnson & Johnson ranks as one of the bluest blue chip stocks around.
The healthcare giant has been in business since 1886. It's kept on delivering for shareholders during good times and bad. Like AbbVie, J&J is a Dividend King. But the company's track record is even more impressive than its peer, with 60 consecutive years of dividend increases.
Unsurprisingly, J&J maintains an exceptionally strong financial position. The company generated revenpast 12 months. Its cash stockpile topped $34 billion as of the end of the third quarter.
J&J's growth should accelerate as the company recently announced that it plans to acquire fast-growing heart pump maker Abiomed for $16.6 billion. J&J is also spinning off its slower-growing consumer health unit next year.
Investors should be able to sleep well at night owning Johnson & Johnson. And they'll get paid (via solid dividends) for doing so.
10 stocks we like better than AbbVie
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Bristol Myers Squibb. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abiomed 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. | The company will suffer a blow next year as top-selling drug Humira loses U.S. exclusivity, but AbbVie has a pipeline that boasts dozens of programs. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). A proven dividend payer David Jagielski (AbbVie): For a dividend-paying company to be a good investment to hold forever, it should have a solid track record for increasing dividends, strong fundamentals, and plenty of growth opportunities. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). A proven dividend payer David Jagielski (AbbVie): For a dividend-paying company to be a good investment to hold forever, it should have a solid track record for increasing dividends, strong fundamentals, and plenty of growth opportunities. AbbVie has all of those things. | A proven dividend payer David Jagielski (AbbVie): For a dividend-paying company to be a good investment to hold forever, it should have a solid track record for increasing dividends, strong fundamentals, and plenty of growth opportunities. With a modest valuation, a great growing dividend, and promising growth potential, AbbVie is a dividend stock that I'd feel comfortable holding forever. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Johnson & Johnson (NYSE: JNJ). A proven dividend payer David Jagielski (AbbVie): For a dividend-paying company to be a good investment to hold forever, it should have a solid track record for increasing dividends, strong fundamentals, and plenty of growth opportunities. AbbVie has all of those things. |
22982.0 | 2022-11-25 00:00:00 UTC | Investors Heavily Search AbbVie Inc. (ABBV): Here is What You Need to Know | ABBV | https://www.nasdaq.com/articles/investors-heavily-search-abbvie-inc.-abbv%3A-here-is-what-you-need-to-know-2 | 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 +3.8%, compared to the Zacks S&P 500 composite's +6.2% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.68 per share, indicating a change of +11.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.6% over the last 30 days.
The consensus earnings estimate of $13.87 for the current fiscal year indicates a year-over-year change of +9.2%. This estimate has changed -0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.42 indicates a change of -17.6% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
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 $15.38 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $58.31 billion and $53.73 billion estimates indicate +3.8% and -7.9% 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
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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 gained 8.2%. | For the next fiscal year, the consensus earnings estimate of $11.42 indicates a change of -17.6% from what AbbVie is expected to report a year ago. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.2%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 8.2%. | 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 gained 8.2%. For the current quarter, AbbVie is expected to post earnings of $3.68 per share, indicating a change of +11.2% from the year-ago quarter. |
22983.0 | 2022-11-25 00:00:00 UTC | Pharma Stock Roundup: MRK to Buy IMGO, ABBV's Skyrizi Gets EU Nod for New Indication | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-mrk-to-buy-imgo-abbvs-skyrizi-gets-eu-nod-for-new-indication | nan | nan | This week, Merck MRK offered to buy Imago Biosciences IMGO, which is developing drugs to treat bone marrow diseases. The European Commission approved AbbVie’s ABBV immunology medicine, Skyrizi for its third indication, Crohn’s disease, in Europe. GSK GSK has begun the process to withdraw its approved multiple myeloma drug, Blenrep from the U.S. market.
Recap of the Week’s Most Important Stories
Merck to Buy Imago BioSciences: Merck announced a definitive agreement to acquire Imago BioSciences for $36.00 per share in cash for an approximate total equity value of $1.35 billion. The acquisition of Imago Biosciences is expected to strengthen Merck’s hematology portfolio by adding Imago’s lead candidate, bomedemstat. Bomedemstat, an oral LSD1 inhibitor, is being evaluated in multiple mid-stage clinical studies for treating bone marrow diseases like essential thrombocythemia, myelofibrosis and polycythemia vera. The transaction is expected to be completed by first-quarter 2023.
Merck’s Keytruda combined with chemotherapy showed statistically significant improvement in overall survival as a first-line treatment of HER2-negative locally advanced unresectable or metastatic gastric or gastroesophageal junction (GEJ) adenocarcinoma when compared to those who were treated with chemotherapy alone. Patients who were administered Keytruda plus chemotherapy also showed meaningful improvements in progression-free survival and overall response rate. Keytruda is already approved in combination with Roche’s Herceptin (trastuzumab) and chemotherapy under the accelerated pathway for first-line treatment of locally advanced unresectable or metastatic HER2-positive gastric or GEJ adenocarcinoma based on data from the phase III KEYNOTE-811 study.
AbbVie’s Skyrizi Gets EU Nod for Crohn’s Disease: The European Commission approved AbbVie’s Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). CD is the third approved indication for Skyrizi in Europe. In the United States, Skyrizi was approved for CD in June. Skyrizi is already approved in the European Union, the United States and some other countries for two other indications — plaque psoriasis and active psoriatic arthritis.
The FDA accepted and granted priority review to AbbVie and partner Genmab’s biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. In the EU too, a marketing authorization application seeking approval for epcoritamab for relapsed/refractory diffuse large B-cell lymphoma — a major subtype of LBCL — after two or more lines of systemic therapy, was validated by the European Medicines Agency in October. The BLA is supported by data from the LBCL cohort of phase I/II study, EPCORE NHL-1 evaluating subcutaneous epcoritamab in patients with relapsed, progressive or refractory CD20+ mature B-cell NHL, including LBCL.
GSK to End Sales of Blenrep in the United States: GSK said it has begun the process to withdraw the U.S. marketing authorization for Blenrep after the FDA’s request, which came following the failure of the phase III confirmatory study, DREAMM-3 on Blenrep. As a result of the withdrawal, GSK will stop selling Blenrep in the U.S. market.
Blenrep (belantamab mafatotin) was granted accelerated approval as a monotherapy for relapsed or refractory multiple myeloma (RRMM) patients who have received at leastfour prior therapies in 2020 based on the overall response rate results of the DREAMM-2 study. The final approval was contingent upon a confirmed clinical benefit from a randomized phase III study. However, in November, GSK announced that the DREAMM-3 study on Blenrep in patients with RRMM failed to meet its primary endpoint of PFS. GSK said additional trials within the DREAMM clinical trial program would continue. Data from DREAMM-7 and DREAMM-8 phase III studies are expected in the first half of 2023.
The NYSE ARCA Pharmaceutical Index rose 3.29% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Merck gained the most (2.4%), while Roche declined the most (2.0%).
In the past six months, Merck has gained the highest (15.7%), while Pfizer declined the most (9.5%).
(See the last pharma stock roundup here: RHHBY’s Alzheimer Study Failure, EU Nod for SNY’s Enjaymo)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The FDA accepted and granted priority review to AbbVie and partner Genmab’s biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. The European Commission approved AbbVie’s ABBV immunology medicine, Skyrizi for its third indication, Crohn’s disease, in Europe. AbbVie’s Skyrizi Gets EU Nod for Crohn’s Disease: The European Commission approved AbbVie’s Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). | Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Imago BioSciences, Inc. (IMGO) : Free Stock Analysis Report To read this article on Zacks.com click here. The European Commission approved AbbVie’s ABBV immunology medicine, Skyrizi for its third indication, Crohn’s disease, in Europe. AbbVie’s Skyrizi Gets EU Nod for Crohn’s Disease: The European Commission approved AbbVie’s Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). | AbbVie’s Skyrizi Gets EU Nod for Crohn’s Disease: The European Commission approved AbbVie’s Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Imago BioSciences, Inc. (IMGO) : Free Stock Analysis Report To read this article on Zacks.com click here. The European Commission approved AbbVie’s ABBV immunology medicine, Skyrizi for its third indication, Crohn’s disease, in Europe. | The European Commission approved AbbVie’s ABBV immunology medicine, Skyrizi for its third indication, Crohn’s disease, in Europe. AbbVie’s Skyrizi Gets EU Nod for Crohn’s Disease: The European Commission approved AbbVie’s Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). The FDA accepted and granted priority review to AbbVie and partner Genmab’s biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. |
22984.0 | 2022-11-24 00:00:00 UTC | Is Now the Time for Income Investors to Buy This Big Pharma Stock? | ABBV | https://www.nasdaq.com/articles/is-now-the-time-for-income-investors-to-buy-this-big-pharma-stock | nan | nan | Though the COVID-19 pandemic still isn't definitively over, the work of large pharmaceutical companies to bring vaccines and treatments to market has restored confidence throughout most of the world. For the first time since early 2020, life has resumed more of a normal routine in recent months.
Much of that debt of gratitude for being able to return to normalcy is owed to the pharmaceutical behemoth Pfizer (NYSE: PFE). Alongside its German partner, BioNTech, the New York-based company brought the first COVID vaccine to the U.S. market in December 2020, billed as Comirnaty. And Pfizer also brought the anti-viral COVID-19 treatment named Paxlovid to market earlier this year.
But with all of its success over the last two years, the important question is as follows: Is the pharma stock a buy for income investors right now? Let's dive into Pfizer's fundamentals and valuation to see if we can address this question.
Clearing a near impossible bar in the quarter
Since its founding in 1849, Pfizer has grown into a gargantuan business. In fact, its $276 billion market capitalization positions it as the fourth-biggest pharmaceutical company on the planet.
Unsurprisingly, with such a massive business, Pfizer's product portfolio is incredibly potent with five products on pace to be mega-blockbusters (at least $5 billion in revenue) in 2022. These include the aforementioned Comirnaty and Paxlovid, the blood thinner brand co-owned with Bristol Myers Squibb known as Eliquis, the pneumococcal pneumonia vaccine franchise called Prevnar, and the cancer drug referred to as Ibrance.
And if that weren't enough, Pfizer also has four drugs on track to haul in at least $1 billion in revenue for this year. These include the rare heart disease drugs dubbed Vyndaqel/Vyndamax, the immunology drug termed Xeljanz, and the cancer drugs labeled Xtandi and Inlyta.
Earlier this month, Pfizer shared its financial results for the third quarter ended Sept. 30. The company reported $22.6 billion in total revenue during the quarter, which was down 5.8% over the year-ago period. But adjusting for the fact that the strong U.S. dollar was a drag on revenue, revenue was down just 2% operationally in the quarter.
At face value, a decline in revenue isn't exactly good news. But given that the demand for Comirnaty has greatly diminished over the last year as most individuals have been vaccinated, this is arguably a decent result.
Comirnaty's revenue plunged 65% operationally year over year to $4.4 billion for the quarter. But this was mostly offset by the addition of $7.5 billion in new revenue from Paxlovid. As health professionals continue to rely on Paxlovid to prevent severe cases of COVID-19 in patients who are at risk, revenue for the product should remain exceptionally good in the next few quarters. And outside of its COVID-19 products, revenue managed to grow 2% operationally during the quarter.
Pfizer's non-GAAP (adjusted) diluted earnings per share (EPS) soared 40% higher year over year in the third quarter to $1.78. Thanks to better operating efficiency, the company's non-GAAP net margin expanded 1,460 basis points over the year-ago period to 44.9% for the quarter. Along with a 0.1% reduction in the outstanding share count from share buybacks, this explains how the company's adjusted diluted EPS exploded higher while its revenue base was relatively flat during the quarter.
Image source: Getty Images.
The dividend has wiggle room to grow
Pfizer's 3.3% dividend yield is significantly above the S&P 500 index's 1.6% yield. And the company's dividend should have the ability to run higher in the years to come.
This argument is supported by the fact that Pfizer's dividend payout ratio will clock in at a tad less than 25% in 2022. Needless to say, this provides the company with enough capital to further strengthen its product pipeline of more than 100 projects under clinical development.
Thanks to the low payout ratio, Pfizer can also withstand a temporary downturn in its profits as it attempts to launch enough projects to offset the revenue decline in Comirnaty.
A world-class business at a deep discount
With Pfizer's management expecting to boost its annual revenue base to the tune of $25 billion by 2030 through acquisitions and product launches, the company's future is bright. But Mr. Market doesn't currently see it that way, which could be a buying opportunity.
Pfizer's forward price-to-earnings (P/E) ratio of 9.8 is well below the drug manufacturer industry average forward P/E ratio of 12.2. This valuation builds a margin of safety into the stock if management ultimately falls short of its top-line growth forecast, which makes Pfizer a buy for income investors.
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Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. The Motley Fool has positions in and recommends Bristol Myers Squibb. 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. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. These include the aforementioned Comirnaty and Paxlovid, the blood thinner brand co-owned with Bristol Myers Squibb known as Eliquis, the pneumococcal pneumonia vaccine franchise called Prevnar, and the cancer drug referred to as Ibrance. A world-class business at a deep discount With Pfizer's management expecting to boost its annual revenue base to the tune of $25 billion by 2030 through acquisitions and product launches, the company's future is bright. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. In fact, its $276 billion market capitalization positions it as the fourth-biggest pharmaceutical company on the planet. Pfizer's non-GAAP (adjusted) diluted earnings per share (EPS) soared 40% higher year over year in the third quarter to $1.78. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. And if that weren't enough, Pfizer also has four drugs on track to haul in at least $1 billion in revenue for this year. Comirnaty's revenue plunged 65% operationally year over year to $4.4 billion for the quarter. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. In fact, its $276 billion market capitalization positions it as the fourth-biggest pharmaceutical company on the planet. Comirnaty's revenue plunged 65% operationally year over year to $4.4 billion for the quarter. |
22985.0 | 2022-11-24 00:00:00 UTC | AbbVie's (ABBV) Skyrizi Gets EU Nod for Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-skyrizi-gets-eu-nod-for-crohns-disease | nan | nan | AbbVie ABBV announced that the European Commission has granted approval to its drug Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”).
Crohn’s disease is the third approved indication for Skyrizi in Europe. The drug is the first specific IL-23 inhibitor approved for CD in the European Union. The approval is for patients who have had an inadequate response, lost response or were intolerant to conventional or biologic therapy.
In the United States, Skyrizi was approved for CD in June. Skyrizi is already approved in the European Union, the United States and some other countries for two other indications — plaque psoriasis and active psoriatic arthritis.
The approval for the CD indication in European Union was expected as in September, the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (“CHMP”) had recommended approving Skyrizi for CD.
The approval for CD was based on positive data from three phase III studies, namely ADVANCE, MOTIVATE and FORTIFY, which evaluated the safety and efficacy of Skyrizi in CD patients. All three studies achieved the co-primary endpoints of clinical remission and endoscopic response in participants administered Skyrizi compared with those who received a placebo.
AbbVie’s stock has risen 17.7% this year so far, compared with an increase of 7.8% for the industry.
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Skyrizi commands approximately 27% share of the total prescriptions in the U.S. psoriasis biological market. AbbVie also enjoys a leading market share in several international geographies. On the third-quarter conference call in October, AbbVie had said it expects Skyrizi sales for the new Crohn’s disease indication to ramp significantly over the next several quarters as early prescription trends are encouraging. With further approval received in Europe for CD indication, sales are expected to be higher.
Skyrizi, which was launched in 2019, generated sales of $3.59 billion in the first nine months of 2022.
Skyrizi and AbbVie’s other new successful immunology medicine, Rinvoq established outstanding launch trajectories bolstered by the approval in new indications. With approvals for such new indications, sales of these drugs could be higher in 2023/2024 and have the potential to replace Humira when generics are launched in the United States in 2023. Humira is AbbVie’s blockbuster anti-inflammatory product.
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked large drugmakers are Vertex Pharmaceuticals VRTX, Merck MRK and Gilead Sciences GILD, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals’ stock has risen 43.9% this year. Estimates for Vertex’s 2022 earnings have gone up from $14.21 to $14.61 per share, while that for 2023 have increased from $15.18 to $15.60 per share over the past 30 days.
Vertex has a four-quarter earnings surprise of 3.16%, on average.
Estimates for Merck’s 2022 earnings per share have increased from $7.30 per share to $7.38, while that for 2023 have increased from $7.20 per share to $7.34 in the past 30 days. Merck’s stock is up 39.5% in the year-to-date period.
Merck beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 16.07%, on average.
Estimates for Gilead’s 2022 earnings per share have increased from $6.54 per share to $7.09 per share, while that for 2023 have increased from $6.51 per share to $6.79 per share in the past 30 days. Gilead’s stock is up 17.6% in the year-to-date period.
Gilead beat earnings expectations in three of the trailing four quarters. The company delivered a four-quarter earnings surprise of 0.36%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV announced that the European Commission has granted approval to its drug Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). On the third-quarter conference call in October, AbbVie had said it expects Skyrizi sales for the new Crohn’s disease indication to ramp significantly over the next several quarters as early prescription trends are encouraging. AbbVie’s stock has risen 17.7% this year so far, compared with an increase of 7.8% for the industry. | Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that the European Commission has granted approval to its drug Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). AbbVie’s stock has risen 17.7% this year so far, compared with an increase of 7.8% for the industry. | Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV announced that the European Commission has granted approval to its drug Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). AbbVie’s stock has risen 17.7% this year so far, compared with an increase of 7.8% for the industry. | AbbVie ABBV announced that the European Commission has granted approval to its drug Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). AbbVie’s stock has risen 17.7% this year so far, compared with an increase of 7.8% for the industry. AbbVie also enjoys a leading market share in several international geographies. |
22986.0 | 2022-11-24 00:00:00 UTC | This Pharmaceutical Company Is A Better Pick Over Johnson & Johnson Stock | ABBV | https://www.nasdaq.com/articles/this-pharmaceutical-company-is-a-better-pick-over-johnson-johnson-stock | nan | nan | We think AbbVie stock (NYSE: ABBV) is currently a better pick than its industry peer, Johnson & Johnson stock (NYSE: JNJ), given its better growth prospects. Both companies are comparable in terms of valuation, with AbbVie trading at 4.7x trailing revenues, and J&J trading at 4.6x. A similar valuation for both companies does not make sense, in our view, given that AbbVie has demonstrated better revenue growth and it is more profitable, as we discuss in the sections below.
If we look at stock returns, AbbVie, with 16% returns this year, has fared better than the 3% return for J&J stock and -17% returns for the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss why we believe ABBV is a better pick over JNJ. We compare a slew of factors, such as historical revenue growth, returns, and valuation multiple, in an interactive dashboard analysis of Johnson & Johnson vs. AbbVie: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. AbbVie’s Revenue Growth Is Better
AbbVie’s revenue growth of 6.7% over the last twelve months is higher than 4.9% for J&J.
Even if we look at a longer time frame, AbbVie’s sales growth has been better. It rose at an average annual growth rate of 20.6% to $56.2 billion in 2021, compared to $32.8 billion in 2018, while J&J’s saw its revenue rise at an average annual rate of just 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 drugs, Imbruvica and Darzalex, and immunology drugs, Stelara and Tremfya.
J&J is currently in the process of spinning off its consumer healthcare business.
AbbVie’s revenue growth has been buoyed by its Allergan acquisition in 2020.
AbbVie is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered a whopping $20.7 billion in 2021 sales, reflecting a 4% y-o-y growth. Now, Humira’s biosimilar has already hit the European markets, weighing on the company’s international sales. The biosimilars are expected to enter the U.S. next year, resulting in a likely significant drop in Humira sales over the coming years.
That said, Humira is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis, are gaining market share. For perspective, these three products garnered $9.3 billion in 2021, reflecting a 94% y-o-y growth. Even if we look at the first nine months of 2022, Skyrizi sales are up a whopping 76% to $3.6 billion, and Rinvoq sales are up 54% to $1.8 billion.
Our Johnson & Johnson Revenue and AbbVie Revenue dashboards provide more insight into the companies’ sales.
Looking forward, AbbVie’s revenue is expected to grow faster than J&J’s over the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 8.6% for AbbVie, compared to a 3.3% CAGR for J&J, 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. AbbVie’s Operating Margin Is Better
AbbVie’s operating margin of 30.3% over the last twelve months is better than 23.7% for J&J.
This compares with 39.0% and 24.1% figures seen in 2019, before the pandemic, respectively.
AbbVie’s free cash flow margin of 40.0% is also better than 22.5% for J&J.
Our Johnson & Johnson Operating Income and AbbVie Operating Income dashboards have more details.
Looking at financial risk, J&J is better placed among the two. Its 14.9% debt as a percentage of equity is lower than 26.1% for AbbVie, while its 19.5% cash as a percentage of assets is higher than 7.0% for the latter, implying that J&J has a better debt position and more cash cushion.
3. The Net of It All
We see that AbbVie has demonstrated better revenue growth and is more profitable. On the other hand, J&J offers a comparatively lower financial risk with its better debt and cash position.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe AbbVie is likely to offer better returns over J&J in the next three years.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 21% for AbbVie over this period and a 3% expected return for J&J, implying that investors are likely to be better off picking ABBV over JNJ, based on Trefis Machine Learning analysis – Johnson & Johnson vs. AbbVie – which also provides more details on how we arrive at these numbers.
While ABBV may outperform JNJ in the next three years, it is helpful to see how Johnson & Johnson’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Amedisys vs. Amerco.
Despite higher inflation and the Fed raising interest rates, JNJ has seen a rise of 3% this year. 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.
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Returns Nov 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
JNJ Return 1% 3% 53%
ABBV Return 7% 16% 151%
S&P 500 Return 2% -17% 76%
Trefis Multi-Strategy Portfolio 2% -21% 213%
[1] Month-to-date and year-to-date as of 11/22/2022
[2] Cumulative total returns since the end of 2016
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See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A similar valuation for both companies does not make sense, in our view, given that AbbVie has demonstrated better revenue growth and it is more profitable, as we discuss in the sections below. We think AbbVie stock (NYSE: ABBV) is currently a better pick than its industry peer, Johnson & Johnson stock (NYSE: JNJ), given its better growth prospects. Both companies are comparable in terms of valuation, with AbbVie trading at 4.7x trailing revenues, and J&J trading at 4.6x. | Our Johnson & Johnson Operating Income and AbbVie Operating Income dashboards have more details. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 21% for AbbVie over this period and a 3% expected return for J&J, implying that investors are likely to be better off picking ABBV over JNJ, based on Trefis Machine Learning analysis – Johnson & Johnson vs. AbbVie – which also provides more details on how we arrive at these numbers. Total [2] JNJ Return 1% 3% 53% ABBV Return 7% 16% 151% S&P 500 Return 2% -17% 76% Trefis Multi-Strategy Portfolio 2% -21% 213% [1] Month-to-date and year-to-date as of 11/22/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors, such as historical revenue growth, returns, and valuation multiple, in an interactive dashboard analysis of Johnson & Johnson vs. AbbVie: Which Stock Is A Better Bet? AbbVie’s Revenue Growth Is Better AbbVie’s revenue growth of 6.7% over the last twelve months is higher than 4.9% for J&J. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 21% for AbbVie over this period and a 3% expected return for J&J, implying that investors are likely to be better off picking ABBV over JNJ, based on Trefis Machine Learning analysis – Johnson & Johnson vs. AbbVie – which also provides more details on how we arrive at these numbers. | AbbVie’s Revenue Growth Is Better AbbVie’s revenue growth of 6.7% over the last twelve months is higher than 4.9% for J&J. Our Johnson & Johnson Revenue and AbbVie Revenue dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 21% for AbbVie over this period and a 3% expected return for J&J, implying that investors are likely to be better off picking ABBV over JNJ, based on Trefis Machine Learning analysis – Johnson & Johnson vs. AbbVie – which also provides more details on how we arrive at these numbers. |
22987.0 | 2022-11-23 00:00:00 UTC | Want $10,000 in Annual Dividend Income by Retirement? Here's How Much You Should Invest in AbbVie Today. | ABBV | https://www.nasdaq.com/articles/want-%2410000-in-annual-dividend-income-by-retirement-heres-how-much-you-should-invest-in | nan | nan | An easy way to boost your income is through dividend stocks. Since they pay a percentage of your investment back to you every quarter, you're collecting cash on a regular basis, and you don't have to sell your investment, either. If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts.
A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). The drugmaker behind the popular arthritis medication Humira has an excellent track record for paying and increasing dividends, and below I'll show you how much you would need to invest in the stock today to get your annual dividend income up to $10,000 by retirement.
AbbVie is an elite dividend growth stock
AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. But the real benefit you'll get from investing in the stock is from buying and holding. That's because AbbVie is also a Dividend King, meaning it has been increasing its dividend annually for more than 50 straight years (this includes when it was still part of Abbott Laboratories).
Last month, AbbVie announced a 5% increase to its quarterly dividend, paying shareholders $1.48 per share as of February 2023. That's more than double the $0.71 the company was paying at the start of 2018. That averages out to a compound annual growth rate of nearly 16%.
That high growth rate isn't sustainable, however, as is implied with AbbVie's most recent rate hike being a more modest 5%.
Here's how dividend income from AbbVie's stock could grow to $10,000
If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double.
Obviously, this makes a big assumption that every year the dividend rises by precisely 5%, which might not be all that likely. With the company continuing to grow and expand its business, there could be a mix of high and low dividend increases along the way. There's also the risk that the dividend increases could stop entirely. Although that seems unlikely today, it's important to remember that these payments are never guaranteed.
But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement:
Chart by author.
This is based on the assumption that you buy the stock for $158, which is around what it was trading for on Monday. As is always the case, the earlier you invest and the more investing years you have left before retirement, the less money you would need to invest today. The lowest investment amount, $48,385, would require 35 investing years to retirement for this strategy to be successful. Here's how dividend income from that investment would grow over the years:
Chart by author.
Unless you have a large portfolio where you can justify putting more than $48,000 into a single stock, investing in just AbbVie might not be suitable for this strategy. Instead, you might want to spread that total investment amount across multiple dividend stocks with yields and track records similar to AbbVie's.
A great stock to own for the long term
AbbVie is a growing business that is rewarding its shareholders as it expands, and that gives investors plenty of incentive to remain invested for not just years but decades. And today, it trades at just 14 times its future profits -- the healthcare industry average is nearly 17. Overall, AbbVie is a top healthcare stock that can be a pillar of your portfolio for years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Instead, you might want to spread that total investment amount across multiple dividend stocks with yields and track records similar to AbbVie's. A great stock to own for the long term AbbVie is a growing business that is rewarding its shareholders as it expands, and that gives investors plenty of incentive to remain invested for not just years but decades. A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). | A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). AbbVie is an elite dividend growth stock AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. That's because AbbVie is also a Dividend King, meaning it has been increasing its dividend annually for more than 50 straight years (this includes when it was still part of Abbott Laboratories). | Here's how dividend income from AbbVie's stock could grow to $10,000 If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double. A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). AbbVie is an elite dividend growth stock AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. | Here's how dividend income from AbbVie's stock could grow to $10,000 If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double. A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). AbbVie is an elite dividend growth stock AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. |
22988.0 | 2022-11-23 00:00:00 UTC | ABBV January 2023 Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-january-2023-options-begin-trading | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the January 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2023 contracts and identified one put and one call contract of particular interest.
The put contract at the $157.50 strike price has a current bid of $3.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $157.50, but will also collect the premium, putting the cost basis of the shares at $153.80 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $159.02/share today.
Because the $157.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.35% return on the cash commitment, or 19.49% 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 $157.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of $4.55. If an investor was to purchase shares of ABBV stock at the current price level of $159.02/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $160.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.48% if the stock gets called away at the January 2023 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 $160.00 strike highlighted in red:
Considering the fact that the $160.00 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 53%. 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 2.86% boost of extra return to the investor, or 23.74% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 25%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $159.02) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the January 2023 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the January 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2023 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 $157.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of $4.55. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the January 2023 expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2023 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 $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the January 2023 expiration. |
22989.0 | 2022-11-23 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie PepsiCo, The Walt Disney, Caterpillar and PBF Energy | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-pepsico-the-walt-disney-caterpillar-and-pbf | nan | nan | For Immediate Release
Chicago, IL – November 23, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, PepsiCo, Inc. PEP, The Walt Disney Co. DIS, Caterpillar Inc. CAT and PBF Energy Inc. PBF.
Here are highlights from Tuesday’s Analyst Blog:
Top Stock Reports for AbbVie, PepsiCo and Walt Disney
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and The Walt Disney Co. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
AbbVie's shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+35.9% vs. +13.4%) on the back of favorable outlook for its cancer drugs and pipeline of drugs. The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval of new indications. It has several early/mid-stage candidates that have blockbuster potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales. Slowing consumer demand due to economic pressures is affecting sales of the aesthetics franchise.
(You can read the full research report on AbbVie here >>>)
Shares of PepsiCo have modestly outperformed the Zacks Beverages - Soft drinks industry over the past year (+12.6% vs. +11.1%). The company's revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the third quarter. This marked the 17th straight quarter of sales beat.
PepsiCo benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.
However, PepsiCo witnessed margin pressures in the third quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Walt Disney shares have reacted favorably to the leadership change announcement, but the stock has otherwise been laggard (down -38.6% vs. -18.3% for the S&P 500 index). The company's profitability was negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney's leveraged balance sheet remains a concern.
However, the company's fourth-quarter fiscal 2022 results reflected strength in Disney+ and revival in Parks, Experiences and Products businesses. The company benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering.
Availability in the Nordics, Latin America and other Asian territories is helping it expand its user base. Theme Park business is likely to gain from strong demand across both the domestic and international parks. Per capita spending increased 6% year over year, while occupancy at domestic hotels was 90% in the fiscal fourth quarter.
(You can read the full research report on The Walt Disney here >>>)
Other noteworthy reports we are featuring today include Caterpillar Inc. and PBF Energy Inc..
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, PepsiCo, Inc. Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for AbbVie, PepsiCo and Walt Disney The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and The Walt Disney Co. | Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for AbbVie, PepsiCo and Walt Disney The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and The Walt Disney Co. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for AbbVie, PepsiCo and Walt Disney The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and The Walt Disney Co. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., PepsiCo, Inc. and The Walt Disney Co. Stocks recently featured in the blog include: AbbVie Inc. ABBV, PepsiCo, Inc. Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for AbbVie, PepsiCo and Walt Disney The Zacks Research Daily presents the best research output of our analyst team. |
22990.0 | 2022-11-23 00:00:00 UTC | 2 Safe Dividend Stocks to Buy Hand Over Fist | ABBV | https://www.nasdaq.com/articles/2-safe-dividend-stocks-to-buy-hand-over-fist | nan | nan | The stock market has been fairly volatile over the past three years, which isn't surprising given the worldwide crises we have experienced. Further, the economy continues to face challenges, such as high inflation and the possibility of a coming recession. It might be tempting to give up on investing in stocks in this environment.
But an alternative strategy is to purchase shares of safe companies that generate steady revenue and profits and offer solid dividends. Such stocks can help investors navigate almost any market downturn. Let's look at two that fit the bill: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).
1. Johnson & Johnson
Johnson & Johnson is one of the largest healthcare companies in the world, and typically generates higher sales than most other pharmaceutical peers. The drugmaker boasts a rich roster of medicines in various areas, such as immunology, oncology, infectious diseases, neuroscience, and more. And J&J routinely expands its lineup thanks to a deep pipeline.
In the first nine months of the year, the company reported $71.2 billion in sales, representing a 2.3% increase year over year. The company's adjusted earnings per share (EPS) came in at $7.81, 1.8% higher than the prior-year period.
Johnson & Johnson will soon spin off its consumer health division, which made up a non-negligible 15.7% of its total sales during the first three quarters of the year. But this unit has been slower growing than J&J's other business segments and has also been facing dozens of lawsuits associated with some of its products. What will remain are J&J's core pharmaceutical and medical devices operations, which generate higher profits.
Meanwhile, the company continues to pay attention to its shareholders. J&J boasts strong free cash flow, and it recently announced a $5 billion share repurchase program. J&J is also a member of the elite club of Dividend Kings. The drugmaker has raised its payouts for 60 consecutive years. It currently offers an above-average yield of 2.58%.
Investors can be highly confident that Johnson & Johnson will continue raising its dividends for a long time. After all, the company isn't going anywhere. Lifesaving drugs and innovative medical devices will only become more important as the world's population ages. That'll provide a major tailwind for Johnson & Johnson. As a leader in both fields, it is more than capable of profiting from these long-term trends.
The company has survived many recessions over its more-than-100-year history. That's more evidence that it can be a safe haven in today's challenging environment.
2. AbbVie
AbbVie is also a leading pharmaceutical company best known for its immunology drugs, particularly rheumatoid arthritis medicine Humira. But the company's lineup goes well beyond this product -- it also boasts other exciting medicines, including immunosuppressants Rinvoq and Skyrizi, its Botox franchise, cancer medicines Venclexta and Imbruvica, and more.
The worry for AbbVie is that Humira will lose patent protection next year. This medicine brought in $20.7 billion in sales last year. Having to face generic competition could harm AbbVie. Thankfully, the company is confident that Skyrizi and Rinvoq can take over. Management even predicts that these two medicines combined will exceed Humira's peak revenue.
Meanwhile, AbbVie continues to generate solid top and bottom lines. In the nine months ended Sept. 30, the company's revenue grew by 3.9% year over year to $42.9 billion. AbbVie's adjusted EPS came in at $10.18, 16.3% higher than the comparable period of the previous fiscal year. AbbVie keeps on earning new approvals, including several during the third quarter, thanks to money it pours into research and development and a rich pipeline.
The company's robust business can support its generous dividend. AbbVie is also a Dividend King, and it offers a yield of 3.82%. And in the past five years alone, a period that includes the devastation caused by the COVID-19 pandemic, AbbVie has raised its payouts by 108%. AbbVie won't stop rewarding its shareholders anytime soon, no matter what the economy throws at the markets next.
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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 keeps on earning new approvals, including several during the third quarter, thanks to money it pours into research and development and a rich pipeline. Let's look at two that fit the bill: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie AbbVie is also a leading pharmaceutical company best known for its immunology drugs, particularly rheumatoid arthritis medicine Humira. | Let's look at two that fit the bill: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie AbbVie is also a leading pharmaceutical company best known for its immunology drugs, particularly rheumatoid arthritis medicine Humira. The worry for AbbVie is that Humira will lose patent protection next year. | Let's look at two that fit the bill: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie AbbVie is also a leading pharmaceutical company best known for its immunology drugs, particularly rheumatoid arthritis medicine Humira. The worry for AbbVie is that Humira will lose patent protection next year. | Let's look at two that fit the bill: Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie AbbVie is also a leading pharmaceutical company best known for its immunology drugs, particularly rheumatoid arthritis medicine Humira. The worry for AbbVie is that Humira will lose patent protection next year. |
22991.0 | 2022-11-23 00:00:00 UTC | Should iShares Core High Dividend ETF (HDV) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-ishares-core-high-dividend-etf-hdv-be-on-your-investing-radar-4 | nan | nan | Launched on 03/29/2011, the iShares Core High Dividend ETF (HDV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $12.64 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 3.37%.
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 Healthcare sector--about 24.30% of the portfolio. Energy and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV).
The top 10 holdings account for about 36.64% of total assets under management.
Performance and Risk
HDV seeks to match the performance of the Morningstar Dividend Yield Focus Index before fees and expenses. The Morningstar Dividend Yield Focus Index offers exposure to high quality U.S. domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts.
The ETF return is roughly 8.68% so far this year and is up about 13.45% in the last one year (as of 11/23/2022). In the past 52-week period, it has traded between $91.29 and $109.92.
The ETF has a beta of 0.83 and standard deviation of 23.04% for the trailing three-year period, making it a medium risk choice in the space. With about 81 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core High Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, HDV 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 $55.07 billion in assets, Vanguard Value ETF has $106.71 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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iShares Core High Dividend ETF (HDV): ETF Research Reports
Johnson & Johnson (JNJ): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Launched on 03/29/2011, the iShares Core High Dividend ETF (HDV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Launched on 03/29/2011, the iShares Core High Dividend ETF (HDV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report 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. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space. |
22992.0 | 2022-11-23 00:00:00 UTC | AbbVie Boosts Its Dividend: Is the Dividend King a Buy? | ABBV | https://www.nasdaq.com/articles/abbvie-boosts-its-dividend%3A-is-the-dividend-king-a-buy | nan | nan | The global economic and geopolitical environment is far from certain right now, with elevated inflation throughout the world and the ongoing conflict between Russia and Ukraine. And if there's anything that the market craves, it is certainty. This goes some way to explaining why the S&P 500 index is down about 18% so far in 2022.
While the overall market is down significantly, stocks that are viewed as safe income options have fared much better. Share prices of the pharmaceutical Dividend King AbbVie (NYSE: ABBV) are actually 16% higher in 2022.
Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? Let's dig into the company's fundamentals and valuation and see if we can answer the question.
A potent drug portfolio fueled revenue and earnings growth
Since its spin-off from Abbott Laboratories in 2013, AbbVie has established itself as a dominant player in the pharmaceutical industry. For context, the Chicago, Illinois-based business is the fourth-biggest pharmaceutical company in the world.
This was largely the result of the success of its mega-blockbuster (defined as at least $5 billion in annual sales) immunology drug known as Humira. The drug's net revenue was $9.3 billion in 2012. But due to higher market share and expanded indications, Humira is on pace to surpass $21 billion in net revenue in 2022.
But as important as the top-selling pre-COVID-19 product in the world has been to AbbVie, I would be remiss if I didn't point out that the company's revenue is well-balanced. In fact, AbbVie's drug portfolio consists of 11 other franchises that are on track to top $1 billion in net revenue this year. These include the next-generation immunology drugs Skyrizi and Rinvoq, which generated combined net revenue of $2.1 billion for the third quarter -- a 67.5% year-over-year growth rate.
In addition to double-digit growth in net revenue from the antipsychotic drug Vraylar and the aesthetics drug franchise Botox Cosmetic, this is how AbbVie reported $14.8 billion in net revenue during the quarter. This was good enough for a 3.3% net revenue growth rate over the year-ago period.
The drugmaker recorded $3.66 in non-GAAP (adjusted) diluted earnings per share (EPS) in the third quarter, which equates to a blistering 29.3% year-over-year growth rate. As a result of improved operating efficiency, AbbVie's non-GAAP net margin surged 880 basis points higher over the year-ago period to 44.1% for the quarter. Along with a 0.1% reduction in the company's weighted-average diluted share count to 1.8 billion, that's why the company's adjusted diluted EPS growth far exceeded its net revenue growth during the quarter.
And with dozens of indications currently in clinical development, AbbVie is positioned to quickly bounce back from Humira's U.S. patent expiration that is just over one month away.
Image source: Getty Images.
The safest dividend is the one just raised
AbbVie's 3.7% dividend yield is over double that of the S&P 500 index's 1.7% average yield. The company's tremendous drug portfolio inspires confidence that this generous dividend isn't a yield trap.
Another factor that AbbVie has working in its favor is that the dividend payout ratio will come in just above 40% in 2022. This gives the company adequate resources to expand its business, reduce debt, and execute share repurchases.
With these factors in mind, it's not surprising that AbbVie upped its payout last month. And it wouldn't be a shock if the dividend grew for many years to come.
A top-notch pharma stock at a sensible valuation
AbbVie is a superb company that arguably is capable of overcoming its looming Humira patent expiration. And the stock is priced at a compelling valuation.
AbbVie's forward price-to-earnings (P/E) ratio of 13.7 is just below the S&P 500 pharmaceutical industry average forward P/E ratio of 14.4. That's why this world-class stock is an attractive pick for this month and beyond.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A potent drug portfolio fueled revenue and earnings growth Since its spin-off from Abbott Laboratories in 2013, AbbVie has established itself as a dominant player in the pharmaceutical industry. As a result of improved operating efficiency, AbbVie's non-GAAP net margin surged 880 basis points higher over the year-ago period to 44.1% for the quarter. Share prices of the pharmaceutical Dividend King AbbVie (NYSE: ABBV) are actually 16% higher in 2022. | Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? Share prices of the pharmaceutical Dividend King AbbVie (NYSE: ABBV) are actually 16% higher in 2022. A potent drug portfolio fueled revenue and earnings growth Since its spin-off from Abbott Laboratories in 2013, AbbVie has established itself as a dominant player in the pharmaceutical industry. | Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? In addition to double-digit growth in net revenue from the antipsychotic drug Vraylar and the aesthetics drug franchise Botox Cosmetic, this is how AbbVie reported $14.8 billion in net revenue during the quarter. Share prices of the pharmaceutical Dividend King AbbVie (NYSE: ABBV) are actually 16% higher in 2022. | Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? Share prices of the pharmaceutical Dividend King AbbVie (NYSE: ABBV) are actually 16% higher in 2022. A potent drug portfolio fueled revenue and earnings growth Since its spin-off from Abbott Laboratories in 2013, AbbVie has established itself as a dominant player in the pharmaceutical industry. |
22993.0 | 2022-11-23 00:00:00 UTC | AbbVie: SKYRIZI (risankizumab) Gets EU Approval To Treat Moderate To Severe Active Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvie%3A-skyrizi-risankizumab-gets-eu-approval-to-treat-moderate-to-severe-active-crohns | nan | nan | (RTTNews) - AbbVie (ABBV) announced Wednesday that the European Commission approved SKYRIZI (risankizumab) for the treatment of moderate to severe active Crohn's disease.
It is the first specific interleukin-23 or IL-23 inhibitor in the European Union for the treatment of adults with moderately to severely active Crohn's disease who have had inadequate response, lost response or were intolerant to conventional or biologic therapy.
Crohn's disease is a chronic, systemic inflammatory disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea, abdominal pain and can require urgent medical care.
The EU approval for SKYRIZI in Crohn's disease is supported by results from the global Phase 3 program, which included three studies: ADVANCE induction, MOTIVATE induction and FORTIFY maintenance.
The three trials are multicenter, randomized, double-blind, placebo-controlled studies and include assessments of efficacy, safety and tolerability of SKYRIZI.
In the trials, a significantly higher proportion of patients on SKYRIZI achieved clinical remission, endoscopic response, mucosal healing and endoscopic remission at week 12 in induction studies compared to placebo.
Further, a significantly higher proportion of patients achieved clinical remission and endoscopic response at week 52 with SKYRIZI maintenance.
SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
SKYRIZI is also approved in the EU for the treatment of adults with psoriasis and psoriatic arthritis.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced Wednesday that the European Commission approved SKYRIZI (risankizumab) for the treatment of moderate to severe active Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The three trials are multicenter, randomized, double-blind, placebo-controlled studies and include assessments of efficacy, safety and tolerability of SKYRIZI. | (RTTNews) - AbbVie (ABBV) announced Wednesday that the European Commission approved SKYRIZI (risankizumab) for the treatment of moderate to severe active Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. In the trials, a significantly higher proportion of patients on SKYRIZI achieved clinical remission, endoscopic response, mucosal healing and endoscopic remission at week 12 in induction studies compared to placebo. | (RTTNews) - AbbVie (ABBV) announced Wednesday that the European Commission approved SKYRIZI (risankizumab) for the treatment of moderate to severe active Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The EU approval for SKYRIZI in Crohn's disease is supported by results from the global Phase 3 program, which included three studies: ADVANCE induction, MOTIVATE induction and FORTIFY maintenance. | (RTTNews) - AbbVie (ABBV) announced Wednesday that the European Commission approved SKYRIZI (risankizumab) for the treatment of moderate to severe active Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. It is the first specific interleukin-23 or IL-23 inhibitor in the European Union for the treatment of adults with moderately to severely active Crohn's disease who have had inadequate response, lost response or were intolerant to conventional or biologic therapy. |
22994.0 | 2022-11-22 00:00:00 UTC | FOCUS-Generic drugmakers Teva and Sandoz make major push to biosimilars | ABBV | https://www.nasdaq.com/articles/focus-generic-drugmakers-teva-and-sandoz-make-major-push-to-biosimilars-0 | nan | nan | By Natalie Grover and Steven Scheer
Nov 22 (Reuters) - Generic drug makers Teva Pharmaceutical Industries and Sandoz say they are planning a significant ramp-up in production of biosimilars – copies of high-priced drugs used to treat illnesses such as rheumatoid arthritis and cancer – aiming to increase their share of an expanding market.
More than 55 brand-name blockbuster biologic drugs, each with peak annual sales above $1 billion, are due to come off patent by the end of the decade, according to industry estimates.
Executives from Teva TEVA.TA, TEVA.N and Sandoz said they are targeting top-selling biologics such as Humira, AbbVie Inc’s ABBV.N top-selling arthritis drug, which came off-patent in Europe and is due to come off-patent in the U.S. next year. But both companies face commercial and regulatory challenges, especially in the U.S., where biosimilars have not resulted in dramatically lower prices for consumers.
Biologics are complex molecules cultivated inside living cells, making it impossible to manufacture exact copies, as is the case with conventional pharmaceuticals made from chemical compounds.
Use of brand-name biologics typically account for an outsize proportion of drug spending in wealthier countries.
One of the biggest makers of generic drugs, Israeli-based Teva said it aims eventually to secure a 10%global marketshare of biosimilars. The company has been grappling with a heavy debt load since a 2016 acquisition and lawsuits arising from the U.S. opioid epidemic.
Teva currently has three approved biosimilars and 13 in development.
“We are going full blast now,” Teva Chief Executive Kåre Schultz said in an interview with Reuters.
He said the company was targeting “80% of what's going off-patent in the next 10 years" including big sellers like the cancer drug Keytruda.
A division of Novartis NOVN.S, Sandoz is currently the second biggest player after Pfizer Inc PFE.N in the biosimilar market by gross sales globally, per IQVIA data, cited by Sandoz. (Amgen is in third place).
Sandoz has launched eight biosimilar drugs.
"We now have over 15 products in development, and in the next five years we would like to double the value of our marketed portfolio," chief scientific officer Claire D’Abreu-Hayling told Reuters, adding that the biologics they intend to target are "really obvious opportunities".
BLOCKBUSTERS COMING OFF PATENT
Novartis plans to spin off its Sandoz generics business in 2023. The Swiss drugmaker said the unit failed to attract a serious buyer earlier this year as it considered options for the unit’s future.
The more than 55 blockbuster biologics coming off patent protection in the United States and Europe over the next decade account for more than $270 billion in expected peak annual sales, according to a McKinsey analysis.
The analysis projected the value of the global biosimilar market could more than triple to an estimated $74 billion by 2030.
Next year could bring a test case in the U.S. market, with the anticipated launch of at least six biosimilars for Humira, which brings in about $15 billion to $20 billion in annual sales and is approved for autoimmune conditions including rheumatoid arthritis, psoriasis and Crohn’s disease.
Sandoz and Teva are both working on biosimilars for Humira.
But the crowded field raises a tough question: Should the companies target the biggest selling biologics such as Humira, or aim for smaller brands that will likely attract fewer players, said Barclays pharmaceuticals analyst Emily Field.
Teva aims to ensure it is one of the first three biosimilars on the market for any given biologic, according to Sven Dethlefs, executive VP, North America commercial. He said the company intended to kick off multiple biosimilar development programs but would halt production if it could not make the top three.
While going after Humira, Sandoz is also targeting drugs like Biogen’s multiple sclerosis medicine Tysabri, which is used in a much smaller patient population. The company believes no other biosimilar is being actively developed for Tysabri, said Chief Operating Officer Pierre Bourdage.
Creating the only biosimilar in a particular market for a particular drug could be a win, said Joshua Harris, senior VP focused on pharmaceutical patent litigation at Burford Capital, a provider of commercial legal finance. “That's going to be a rare situation," he said.
A typical biosimilar costs $100 million to $300 million to develop and between six to nine years to win approval, according to McKinsey. About half of efforts launched across the U.S., European, and Japanese markets fail at the earliest stages, the report found.
Generics, which can be priced as much as 80% to 90% less than branded pills, barely cost a few million to develop.
Biosimilars are viewed as “better than traditional generics, but nowhere near as good as branded pharma,” Field said.
Commercial prospects will also depend on the regulatory environment. While more than 50 biosimilars have been introduced into the European market, the United States has taken longer to set up a regulatory pathway for biosimilars.
European regulators consider all approved biosimilars on par with the original biologic, which has helped boost uptake. Biosimilars have taken the majority of market share from brand-name biologics in Europe and resulted in savings between 75% to 90% off the reference product prices, according to a 2021 report by Duke University’s Margolis Center for Health Policy.
In the United States, the Food and Drug Administration (FDA) has approved 39 biosimilars and 22 products have been launched as of October, according to an Amgen analysis.
The FDA typically expects additional trial data before designating a biosimilar as “interchangeable” with the original biologic, which would allow it to be automatically replaced with a biosimilar at the pharmacy counter.
In a note last month, SVB Securities analysts predicted most U.S. payers will likely stick with branded Humira next year, but seriously consider switching patients to interchangeable biosimilars by 2024.
Biosimilars launched in the U.S. have only taken about 20% of the volume share of the biologics they are based on, according to the Duke Report, with knockoffs delivering discounts of about 30% to 40%.
Patent-focused court battles have stymied some launches of biosimilars. Aggressive pricing strategies from branded drug companies also helped neutralize the limited discounts initially offered by biosimilar makers.
(Reporting by Natalie Grover in London and Steven Scheer in Jerusalem; Editing by Michele Gershberg and Suzanne Goldenberg)
((natalie.grover@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. | Executives from Teva TEVA.TA, TEVA.N and Sandoz said they are targeting top-selling biologics such as Humira, AbbVie Inc’s ABBV.N top-selling arthritis drug, which came off-patent in Europe and is due to come off-patent in the U.S. next year. "We now have over 15 products in development, and in the next five years we would like to double the value of our marketed portfolio," chief scientific officer Claire D’Abreu-Hayling told Reuters, adding that the biologics they intend to target are "really obvious opportunities". Creating the only biosimilar in a particular market for a particular drug could be a win, said Joshua Harris, senior VP focused on pharmaceutical patent litigation at Burford Capital, a provider of commercial legal finance. | Executives from Teva TEVA.TA, TEVA.N and Sandoz said they are targeting top-selling biologics such as Humira, AbbVie Inc’s ABBV.N top-selling arthritis drug, which came off-patent in Europe and is due to come off-patent in the U.S. next year. By Natalie Grover and Steven Scheer Nov 22 (Reuters) - Generic drug makers Teva Pharmaceutical Industries and Sandoz say they are planning a significant ramp-up in production of biosimilars – copies of high-priced drugs used to treat illnesses such as rheumatoid arthritis and cancer – aiming to increase their share of an expanding market. The more than 55 blockbuster biologics coming off patent protection in the United States and Europe over the next decade account for more than $270 billion in expected peak annual sales, according to a McKinsey analysis. | Executives from Teva TEVA.TA, TEVA.N and Sandoz said they are targeting top-selling biologics such as Humira, AbbVie Inc’s ABBV.N top-selling arthritis drug, which came off-patent in Europe and is due to come off-patent in the U.S. next year. By Natalie Grover and Steven Scheer Nov 22 (Reuters) - Generic drug makers Teva Pharmaceutical Industries and Sandoz say they are planning a significant ramp-up in production of biosimilars – copies of high-priced drugs used to treat illnesses such as rheumatoid arthritis and cancer – aiming to increase their share of an expanding market. Next year could bring a test case in the U.S. market, with the anticipated launch of at least six biosimilars for Humira, which brings in about $15 billion to $20 billion in annual sales and is approved for autoimmune conditions including rheumatoid arthritis, psoriasis and Crohn’s disease. | Executives from Teva TEVA.TA, TEVA.N and Sandoz said they are targeting top-selling biologics such as Humira, AbbVie Inc’s ABBV.N top-selling arthritis drug, which came off-patent in Europe and is due to come off-patent in the U.S. next year. Teva currently has three approved biosimilars and 13 in development. Sandoz has launched eight biosimilar drugs. |
22995.0 | 2022-11-22 00:00:00 UTC | The Health Care Select Sector SPDR Fund Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/the-health-care-select-sector-spdr-fund-experiences-big-inflow-1 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $323.1 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 303,270,000 to 305,670,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.6%, Elevance Health Inc (Symbol: ELV) is up about 1.4%, and Medtronic PLC (Symbol: MDT) is lower by about 5.9%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.31. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Contrarian Outlook
QLGN Historical Stock Prices
Specialty Retail IPOs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.6%, Elevance Health Inc (Symbol: ELV) is up about 1.4%, and Medtronic PLC (Symbol: MDT) is lower by about 5.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $323.1 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 303,270,000 to 305,670,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.6%, Elevance Health Inc (Symbol: ELV) is up about 1.4%, and Medtronic PLC (Symbol: MDT) is lower by about 5.9%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.31. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.6%, Elevance Health Inc (Symbol: ELV) is up about 1.4%, and Medtronic PLC (Symbol: MDT) is lower by about 5.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $323.1 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 303,270,000 to 305,670,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.31. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.6%, Elevance Health Inc (Symbol: ELV) is up about 1.4%, and Medtronic PLC (Symbol: MDT) is lower by about 5.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $323.1 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 303,270,000 to 305,670,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $135.31. |
22996.0 | 2022-11-22 00:00:00 UTC | Top Stock Reports for AbbVie, PepsiCo & Walt Disney | ABBV | https://www.nasdaq.com/articles/top-stock-reports-for-abbvie-pepsico-walt-disney | nan | nan | Tuesday, November 22, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and The Walt Disney Company (DIS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
AbbVie’s shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+35.9% vs. +13.4%) on the back of favorable outlook for its cancer drugs and pipeline of drugs. The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressures is affecting sales of the aesthetics franchise.
(You can read the full research report on AbbVie here >>>)
Shares of PepsiCo have modestly outperformed the Zacks Beverages - Soft drinks industry over the past year (+12.6% vs. +11.1%). The company’s revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the third quarter. This marked the 17th straight quarter of sales beat.
PepsiCo benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.
However, PepsiCo witnessed margin pressures in the third quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Walt Disney shares have reacted favorably to the leadership change announcement, but the stock has otherwise been laggard (down -38.6% vs. -18.3% for the S&P 500 index). The company’s profitability was negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.
However, the company’s fourth-quarter fiscal 2022 results reflected strength in Disney+ and revival in Parks, Experiences and Products businesses. The company benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering.
Availability in the Nordics, Latin America and other Asian territories is helping it expand its user base. Theme Park business is likely to gain from strong demand across both the domestic and international parks. Per capita spending increased 6% year over year, while occupancy at domestic hotels was 90% in the fiscal fourth quarter.
(You can read the full research report on The Walt Disney here >>>)
Other noteworthy reports we are featuring today include Caterpillar Inc. (CAT), Harley-Davidson, Inc. (HOG), and PBF Energy Inc. (PBF).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Momentum in PepsiCo's (PEP) Snacking Business to Aid Growth
Disney+ Growth & Revival of Parks Business Aids Disney (DIS)
Featured Reports
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Rising Rates Support BNY Mellon (BK), High Costs A Concern
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Efficient Hire Buyout & Technology Strength Up Equifax (EFX)
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Surging Orders to Drive Fortive (FTV) Amid High Leverage
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Pembina Pipeline (PBA) to Gain from Integrated Asset System
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Solid Investment boost OGE Energy (OGE), Weak Solvency Woe
Per the Zacks analyst, OGE Energy's aggressive investment strategy to upgrade its infrastructure tend to boost its long-term growth. Yet, its weak solvency position remains a concern.
New Upgrades
Caterpillar (CAT) to Gain on Strong Demand in End Markets
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Hardwire Plan to Aid Harley-Davidson (HOG) Revenue, Margins
Per the Zacks analyst, Harley-Davidson's Hardwire strategic plan bodes well for long-term growth opportunities. It aims to contribute to revenues and margins and has increased visibility and outreach.
PBF Energy (PBF) Banks on Improving Gross Refining Margin
The Zacks analyst likes PBF Energy's refining operations since the firm is witnessing increasing gross refining margins across East Coast and West Coast.
New Downgrades
Skechers (SKX) Witnesses Higher Operating Costs For a While
Per the Zacks analyst, Skechers' total operating expenses grew 19.5% in third quarter of 2022. Also, selling expenses jumped 18% on rise in global digital and brand demand creation spending.
Supply Chain Issue Hurts MKS Instruments (MKSI) Prospects
Per the Zacks analyst, MKS Instruments is suffering from supply-chain constraints that will hurt its top-line growth in the near term. Stiff competition and customer concentration are headwinds.
Low Volumes Due to Softness in the Markets Ail Leggett (LEG)
Per the Zacks analyst, Leggett has been witnessing soft demand in the U.S. bedding and Home Furniture, Fabric Converting and Flooring markets owing to a challenging global economic environment.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
>>See Zacks’ Hottest IPOs Now
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Caterpillar Inc. (CAT): Free Stock Analysis Report
The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report
Aflac Incorporated (AFL): Free Stock Analysis Report
PepsiCo, Inc. (PEP): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and The Walt Disney Company (DIS). AbbVie’s shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+35.9% vs. +13.4%) on the back of favorable outlook for its cancer drugs and pipeline of drugs. (You can read the full research report on AbbVie here >>>) | Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and The Walt Disney Company (DIS). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Momentum in PepsiCo's (PEP) Snacking Business to Aid Growth Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports Solid Sales in U.S. AbbVie’s shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+35.9% vs. +13.4%) on the back of favorable outlook for its cancer drugs and pipeline of drugs. | Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and The Walt Disney Company (DIS). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Momentum in PepsiCo's (PEP) Snacking Business to Aid Growth Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports Solid Sales in U.S. AbbVie’s shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+35.9% vs. +13.4%) on the back of favorable outlook for its cancer drugs and pipeline of drugs. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Momentum in PepsiCo's (PEP) Snacking Business to Aid Growth Disney+ Growth & Revival of Parks Business Aids Disney (DIS) Featured Reports Solid Sales in U.S. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), PepsiCo, Inc. (PEP) and The Walt Disney Company (DIS). AbbVie’s shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+35.9% vs. +13.4%) on the back of favorable outlook for its cancer drugs and pipeline of drugs. |
22997.0 | 2022-11-22 00:00:00 UTC | Teva, AbbVie finalize $6.6 billion U.S. opioid settlements | ABBV | https://www.nasdaq.com/articles/teva-abbvie-finalize-%246.6-billion-u.s.-opioid-settlements | nan | nan | By Brendan Pierson
Nov 22 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N have finalized the terms of settlements worth more than $6.6 billion to resolve thousands of lawsuits by U.S. state and local governments over the marketing of opioid painkillers, the companies and lawyers for the governments said Tuesday.
Under the deals, first announced in July, Israel-based Teva will pay up to $4.25 billion, including a supply of the overdose drug naloxone. AbbVie will pay up to $2.37 billion. The final amounts of the settlements will depend on how many state and local governments opt into them.
Lead attorneys for state and local governments in a joint statement called the deals "significant steps forward in our continued efforts to hold those responsible for the opioid epidemic accountable and obtain the necessary resources to battle its catastrophic effects."
Teva and AbbVie did not admit wrongdoing. The two companies said that as part of the settlements, they have resolved a dispute between them over responsibility for claims stemming from generic opioid business that Allergan sold to Teva in 2016.
The sprawling litigation over opioids, which began in 2017, has yielded more than $40 billion in settlements with drugmakers, distributors and pharmacy chains.
State and local authorities have said they will use the money to combat the opioid crisis, which according to federal government data has caused nearly 650,000 overdose deaths since 1999 and is continuing to worsen.
Overdoses involving opioids, including prescription pills and heroin, surged during the COVID-19 pandemic, increasing 38% in 2020 over the previous year and another 15% in 2021, according to the U.S. Centers for Disease Control and Prevention.
FACTBOX-Pharmacies, drug companies settle lawsuits over role in U.S. opioid crisis
(Reporting by Brendan Pierson in New York; Editing by Lisa Shumaker)
((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Brendan Pierson Nov 22 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N have finalized the terms of settlements worth more than $6.6 billion to resolve thousands of lawsuits by U.S. state and local governments over the marketing of opioid painkillers, the companies and lawyers for the governments said Tuesday. AbbVie will pay up to $2.37 billion. Teva and AbbVie did not admit wrongdoing. | By Brendan Pierson Nov 22 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N have finalized the terms of settlements worth more than $6.6 billion to resolve thousands of lawsuits by U.S. state and local governments over the marketing of opioid painkillers, the companies and lawyers for the governments said Tuesday. AbbVie will pay up to $2.37 billion. Teva and AbbVie did not admit wrongdoing. | By Brendan Pierson Nov 22 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N have finalized the terms of settlements worth more than $6.6 billion to resolve thousands of lawsuits by U.S. state and local governments over the marketing of opioid painkillers, the companies and lawyers for the governments said Tuesday. AbbVie will pay up to $2.37 billion. Teva and AbbVie did not admit wrongdoing. | By Brendan Pierson Nov 22 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N have finalized the terms of settlements worth more than $6.6 billion to resolve thousands of lawsuits by U.S. state and local governments over the marketing of opioid painkillers, the companies and lawyers for the governments said Tuesday. AbbVie will pay up to $2.37 billion. Teva and AbbVie did not admit wrongdoing. |
22998.0 | 2022-11-22 00:00:00 UTC | 2 Reasons to Buy AbbVie Stock and 1 Reason to Sell | ABBV | https://www.nasdaq.com/articles/2-reasons-to-buy-abbvie-stock-and-1-reason-to-sell-0 | nan | nan | As the developer of some of the world's highest-grossing medicines, AbbVie (NYSE: ABBV) stands as a pharmaceutical titan, and its stock could be a good fit for many different types of investors' portfolios. Between its huge pipeline and its history of profitable operations, everyone from passive income investors to those seeking growth may find something to like about the company.
But the next couple of years will almost certainly be bumpy for shareholders. Let's start by looking at why someone might want to sell their shares of AbbVie as it'll be a good jumping-off point for discussing the reasons why others might find this an attractive time to invest.
Reason No. 1 to sell: Humira sales will soon crater
The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. That's a problem: In the third quarter, the drug -- which treats symptoms from a host of conditions, from psoriatic arthritis to Crohn's disease -- brought in more than $5.5 billion out of the company's total revenue of $14.8 billion.
The issue is that in 2023, Humira will lose market exclusivity in the U.S., and biosimilars -- the large-molecule drug equivalent to generics -- will promptly start devouring its market share. That is expected to drag the company's top-line growth to a standstill in 2024, per management. In fact, outside the U.S., where biosimilars are already on the market, Humira sales are plummeting. In Q3, international sales fell by 25.9% to $603 million.
While the company has a solid plan to replace the revenue it will be losing as Humira recedes, it'll take some time. Management expects that by 2025, the newer drugs Skyrizi and Rinvoq, which are already on the market and have earned approval for many of the same indications as Humira, will be selling well enough to drive annualized revenue growth on the order of 7% to 9% for the remainder of the decade. Management expects sales of these two replacement medicines combined will eventually eclipse Humira's revenue at its peak, with both forecast to earn more than $7.5 billion annually.
But for risk-averse investors, that prediction might not sound sufficiently convincing. Nor is the projected amount of top-line growth going to make millionaires out of any shareholders in the near term. So, if you'd prefer not to be invested in companies that are about to face major challenges, you might feel it's best to sell AbbVie shares now, or avoid buying them in the first place.
Reason No. 1 to buy: AbbVie's valuation
The silver lining of Humira's looming demise is that it's keeping the stock priced at a cheaper valuation than it might be trading at otherwise. Investors and financial analysts don't see AbbVie's top line growing in the near term. Take a look at these forward revenue estimates by Wall Street analysts.
ABBV Revenue Estimates for Current Fiscal Year data by YCharts
Those estimates are largely in line with what management has said about the next couple of years.
Next, examine this chart tracking the price-to-earnings ratios of AbbVie and some of its major competitors, such as Johnson & Johnson, Bristol Myers Squibb, and Gilead Sciences:
ABBV PE Ratio data by YCharts
At the moment, the stock isn't exactly a bargain buy, but it does compare favorably to its peers. For investors with long time horizons, its valuation right now thus makes for a decent entry point. Further, its well-grounded valuation means that investors won't be taking on as much downside risk as they might be with a competitor that has already seen its shares bid up.
Reason No. 2 to buy: Its growing dividend
AbbVie's dividend is already generous, and management is set to continue boosting it. At the current share price, its forward dividend yield is above 3.8%, and the company just announced a 5% dividend hike that will take effect for its next distribution in February. That increase may not seem large, but it's only the latest in a long line of hikes.
In the years since it was spun off from Abbott Laboratories in 2013, AbbVie's management has raised its dividend each year without fail, increasing it by a total of 270%. What's more, management has explicitly and repeatedly stated that continuing to grow the dividend is a priority, which should give investors a measure of confidence that a cut is unlikely.
In terms of the passive income an investment might make you, if you buy around $3,289 of AbbVie shares, you'll receive $125 in dividends annually. That might not sound like much, but it could still be a good way to add to your income streams, and you'll likely get some share price appreciation down the line when the company starts to grow again.
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Alex Carchidi has positions in Abbott Laboratories. The Motley Fool has positions in and recommends Bristol Myers Squibb and Gilead Sciences. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As the developer of some of the world's highest-grossing medicines, AbbVie (NYSE: ABBV) stands as a pharmaceutical titan, and its stock could be a good fit for many different types of investors' portfolios. Let's start by looking at why someone might want to sell their shares of AbbVie as it'll be a good jumping-off point for discussing the reasons why others might find this an attractive time to invest. 1 to sell: Humira sales will soon crater The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. | ABBV Revenue Estimates for Current Fiscal Year data by YCharts Those estimates are largely in line with what management has said about the next couple of years. Next, examine this chart tracking the price-to-earnings ratios of AbbVie and some of its major competitors, such as Johnson & Johnson, Bristol Myers Squibb, and Gilead Sciences: ABBV PE Ratio data by YCharts At the moment, the stock isn't exactly a bargain buy, but it does compare favorably to its peers. As the developer of some of the world's highest-grossing medicines, AbbVie (NYSE: ABBV) stands as a pharmaceutical titan, and its stock could be a good fit for many different types of investors' portfolios. | 1 to sell: Humira sales will soon crater The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. 1 to buy: AbbVie's valuation The silver lining of Humira's looming demise is that it's keeping the stock priced at a cheaper valuation than it might be trading at otherwise. Next, examine this chart tracking the price-to-earnings ratios of AbbVie and some of its major competitors, such as Johnson & Johnson, Bristol Myers Squibb, and Gilead Sciences: ABBV PE Ratio data by YCharts At the moment, the stock isn't exactly a bargain buy, but it does compare favorably to its peers. | 1 to sell: Humira sales will soon crater The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. Investors and financial analysts don't see AbbVie's top line growing in the near term. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
22999.0 | 2022-11-22 00:00:00 UTC | AbbVie (ABBV) BLA for Epcoritamab Gets FDA Priority Tag | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-bla-for-epcoritamab-gets-fda-priority-tag | nan | nan | AbbVie ABBV and partner Genmab GMAB announced that the FDA has accepted and granted priority review to its biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. LBCL is a common form of non-Hodgkin's lymphoma (NHL).
Genmab had filed the BLA for epcoritamab, a subcutaneous bispecific antibody, in October. In the EU too, a marketing authorization application (MAA) seeking approval for epcoritamab for relapsed/refractory diffuse large B-cell lymphoma (DLBCL) – a major subtype of LBCL – after two or more lines of systemic therapy, was validated by the European Medicines Agency in October.
The BLA is supported by data from the LBCL cohort of phase I/II study, EPCORE NHL-1 evaluating subcutaneous epcoritamab in patients with relapsed, progressive or refractory CD20+ mature B-cell NHL, including LBCL. Previously announced top-line data from the LBCL cohort demonstrated a confirmed overall response rate (ORR) of 63.1%, while the median duration of response (DOR) was 12 months.
AbbVie’s stock has risen 16.0% this year so far compared with an increase of 6.3% for the industry.
Image Source: Zacks Investment Research
AbbVie and Genmab announced an oncology collaboration deal in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates, which included epcoritamab. AbbVie and Genmab share commercial responsibilities for epcoritamab in the United States and Japan, while the former is responsible for further global commercialization.
AbbVie and Genmab are evaluating epcoritamab both as a monotherapy and as a combination regimen across lines of therapy in a range of hematologic malignancies. Some ongoing studies are a phase III study on epcoritamab as a monotherapy in patients with relapsed/refractory DLBCL and another one evaluating epcoritamab in combination in patients with relapsed/refractory follicular lymphoma.
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked large drugmakers are Vertex Pharmaceuticals VRTX and Merck MRK, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals’ stock has risen 44.0% this year. Estimates for Vertex’s 2022 earnings have gone up from $14.21 to $14.61 per share, while that for 2023 has increased from $15.10 to $15.60 per share over the past 30 days.
Vertex has a four-quarter earnings surprise of 3.16%, on average.
Merck’s earnings per share estimates for 2022 have increased from $7.31 per share to $7.38, while that for 2023 has increased from $7.21 per share to $7.34 in the past 30 days. Merck’s stock is up 37.8% in the year-to-date period.
Merck beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 16.07%, on average.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
>>See Zacks’ Hottest IPOs Now
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
Merck & Co., Inc. (MRK): 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 and partner Genmab GMAB announced that the FDA has accepted and granted priority review to its biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. Image Source: Zacks Investment Research AbbVie and Genmab announced an oncology collaboration deal in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates, which included epcoritamab. AbbVie’s stock has risen 16.0% this year so far compared with an increase of 6.3% for the industry. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has accepted and granted priority review to its biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. AbbVie’s stock has risen 16.0% this year so far compared with an increase of 6.3% for the industry. Image Source: Zacks Investment Research AbbVie and Genmab announced an oncology collaboration deal in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates, which included epcoritamab. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has accepted and granted priority review to its biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie’s stock has risen 16.0% this year so far compared with an increase of 6.3% for the industry. | AbbVie ABBV and partner Genmab GMAB announced that the FDA has accepted and granted priority review to its biologics license application (BLA) seeking approval for epcoritamab for the treatment of relapsed/refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy. AbbVie’s stock has risen 16.0% this year so far compared with an increase of 6.3% for the industry. Image Source: Zacks Investment Research AbbVie and Genmab announced an oncology collaboration deal in 2020 to jointly develop and market three of the latter’s early-stage investigational bispecific antibody product candidates, which included epcoritamab. |
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