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23000.0 | 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 | 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 launched eight biosimilar drugs between 2017 and 2021, including a version of Bristol-Myers’ multiple myeloma drug Revlimid.
"We now have over 15 products in development, and in the next five years we would like to double that," 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.
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. 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. 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. 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. |
23001.0 | 2022-11-22 00:00:00 UTC | Want Passive Income in 2023? Buy These Dividend Kings | ABBV | https://www.nasdaq.com/articles/want-passive-income-in-2023-buy-these-dividend-kings | nan | nan | Today's market is tough. And your portfolio may be suffering. But if you invest in dividend stocks, the picture may begin to look brighter. These companies pay you annually -- just for owning their shares. So, in good times and in bad, you can rely on this passive income to lift the value of your holdings.
Where do you find the best dividend stocks? The list of Dividend Kings is a good place to start. These companies have increased their dividends for at least the past 50 years. This shows dividend growth is important to them. And that's great news for you as an investor.
Let's check out three stocks that could be your ticket to solid passive income in 2023.
1. AbbVie
AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Since that time, AbbVie has raised its dividend by more than 250%.
Today, Abbott pays investors $5.92 per share annually. The dividend yield is 3.82%. This is higher than the industry average of about 2%. So, investors can enjoy a generous dividend -- and likely watch it grow over time.
But you'll want to own AbbVie for more than its dividend. This pharmaceutical company is set to become the biggest by prescription drug market share by 2026, according to Evaluate. AbbVie sells treatments across a variety of areas, including immunology, neuroscience, and aesthetics.
The one dark spot for AbbVie right now is upcoming competition for its blockbuster immunology drug Humira. That's set to happen in the U.S. next year. But AbbVie expects its two newer immunology drugs, together, to eventually top Humira's peak sales. And they're on track to do so, the company said in the most recent earnings report.
AbbVie shares trade for about 20 times trailing-12-month earnings. That's down from more than 40 a year ago. Even considering the Humira situation, this looks like a bargain considering AbbVie's product portfolio and dividend strength.
2. Abbott
Abbott and AbbVie share a common history -- and that includes prioritizing dividends. Abbott, a diversified healthcare company, has reported 395 straight quarterly dividends since 1924. And it's increased the dividend for 50 years.
Abbott pays an annual dividend of $1.88 at a yield of 1.81%. The company's history of dividend growth and earnings track record are reason to be optimistic about Abbott's dividend over the long term.
And speaking of earnings, they should grow over time too. Abbott includes four units: diagnostics, medical devices, nutrition, and established pharmaceuticals. This diversification allows it to more easily weather any storm.
For instance, a temporary manufacturing shutdown at one of its baby formula facilities hurt the nutrition business this year. But gains in the three other businesses lifted revenue. And as a result, Abbott has increased its annual 2022 earnings-per-share guidance.
Today, Abbott shares trade for 23 times trailing-12-month earnings. That's compared to more than 45 prior to the pandemic -- when Abbott hadn't yet become a coronavirus testing giant. This looks like a good time to get in on Abbott for passive income and long-term earnings prospects.
3. Target
When you shop at Target, (NYSE: TGT) you may not think about the retailer actually putting money in your wallet. But if you invest in the shares, over time, it will. Target pays an annual dividend of $4.32 at a yield of 2.67%. So, if you hold 1,000 shares, Target will put $4,320 in your pocket for the year.
This sounds great. But some investors may not be excited about Target at the moment. The company disappointed the market when it said its comparable sales growth rate slowed from more than 3% to less than 1% in a matter of weeks just recently. The reason? Higher inflation is hurting shoppers' buying power.
But it's important to consider two things. First, as tough as things are right now, this economic situation is temporary. And strong companies like Target can make it through -- and flourish afterward.
Second, Target has made earnings progress that demonstrates its ability to keep customers coming back. For example, the company said traffic and basket size still are increasing. And Target gained market share across its product categories.
All of this means there's reason to be confident about Target over time. Trading at 18 times trailing-12-month earnings -- down from more than 25 last year -- the stock looks like a buy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But AbbVie expects its two newer immunology drugs, together, to eventually top Humira's peak sales. AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Since that time, AbbVie has raised its dividend by more than 250%. | AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Since that time, AbbVie has raised its dividend by more than 250%. But you'll want to own AbbVie for more than its dividend. | Abbott Abbott and AbbVie share a common history -- and that includes prioritizing dividends. AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Since that time, AbbVie has raised its dividend by more than 250%. | But you'll want to own AbbVie for more than its dividend. AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Since that time, AbbVie has raised its dividend by more than 250%. |
23002.0 | 2022-11-21 00:00:00 UTC | 3 Top Dividend Stocks to Buy Now With Yields of 3.4% or More | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-now-with-yields-of-3.4-or-more | nan | nan | Are you looking for reliable dividend-paying stocks that offer juicy yields and the ability to raise their payouts much further by the time you're ready to retire? If so, these three stocks from the healthcare and finance sectors have you covered.
Right now all three of these top dividend stocks offer yields above the 3% threshold that many investors consider acceptable. More importantly, they have underlying businesses positioned for steady growth in the years ahead.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is the biopharmaceutical company behind Humira, a top-selling drug for arthritis and psoriasis. The stock offers an above-average yield of 3.8% right now because Humira won't be on the list of top sellers for much longer. European Humira sales have already collapsed in the face of biosimilar competition that began a few years ago. Next year, biosimilars finally entering the U.S. market will weigh heavily on AbbVie's top line, as well.
Despite Humira's impending loss of exclusivity, AbbVie looks like a good dividend stock to buy now. For the past decade, the company has been investing the portion of Humira profits that it doesn't distribute to shareholders back into its development pipeline. Some of those investments are beginning to pay off in big ways.
Rinvoq, a treatment for arthritis, and Skyrizi, a treatment for psoriasis, are growing so fast they could offset Humira losses on their own. Both launched in 2019, and they're already on pace to deliver $8.4 billion in annual revenue. Earlier this year, AbbVie management predicted sales of Skyrizi and Rinvoq would exceed a combined $15 billion in 2025.
A long list of prescription drugs helped AbbVie generate an impressive $21 billion in free cash flow over the past twelve months. The company needed just 45% of the free cash flow generated by operations over the past year to meet its dividend commitment, which suggests it won't have trouble bumping the payout higher.
Medtronic
Medtronic (NYSE: MDT) is the world's largest manufacturer of medical devices. It's also a Dividend Aristocrat that has raised its payout for 45 consecutive years.
At recent prices, Medtronic offers a 3.4% yield. It also provides a chance to own two businesses for the price of one: In October, the company told investors it would spin off its patient monitoring and respiratory interventions businesses into a new company.
Spinning off respiratory interventions and patient monitoring will give Medtronic more time to focus on Hugo, a burgeoning robotic-assisted surgical system. In October, Hugo received a CE mark that will allow the company to market it for the general surgery indication throughout the European Union. With a path to enter robotic surgery and other lucrative markets, this company could keep raising its payout for another 45 years.
Ally Financial
Ally Financial (NYSE: ALLY) is the world's oldest all-digital bank. It was originally a financial subsidiary of General Motors, so as you can imagine, it originates a lot of auto loans.
Fear of a potential recession hammering auto sales is hanging over Ally, and dragging on its share price. As a result, the shares offer a juicy 4.6% yield at recent prices.
Ally Financial has raised its quarterly payout by 150% since it began paying began a dividend in 2017. Despite the rapid raises, it used less than 18% of free cash flow generated over the past year to meet its dividend obligation. With such a well-funded dividend program, it's going to take more than a temporary auto-sales slowdown to keep Ally from maintaining its streak of annual payout raises.
Rapidly rising interest rates could pinch profitability in the near term. Over the next several years, though, the gap between the rates Ally Financial pays on consumer bank deposits and the rates it receives from its lending products will get significantly wider. That's the classic recipe for rapidly rising bank profits.
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Ally is an advertising partner of The Ascent, a Motley Fool company. Cory Renauer has positions in Ally Financial. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A long list of prescription drugs helped AbbVie generate an impressive $21 billion in free cash flow over the past twelve months. AbbVie AbbVie (NYSE: ABBV) is the biopharmaceutical company behind Humira, a top-selling drug for arthritis and psoriasis. Next year, biosimilars finally entering the U.S. market will weigh heavily on AbbVie's top line, as well. | AbbVie AbbVie (NYSE: ABBV) is the biopharmaceutical company behind Humira, a top-selling drug for arthritis and psoriasis. Next year, biosimilars finally entering the U.S. market will weigh heavily on AbbVie's top line, as well. Despite Humira's impending loss of exclusivity, AbbVie looks like a good dividend stock to buy now. | AbbVie AbbVie (NYSE: ABBV) is the biopharmaceutical company behind Humira, a top-selling drug for arthritis and psoriasis. Next year, biosimilars finally entering the U.S. market will weigh heavily on AbbVie's top line, as well. Despite Humira's impending loss of exclusivity, AbbVie looks like a good dividend stock to buy now. | AbbVie AbbVie (NYSE: ABBV) is the biopharmaceutical company behind Humira, a top-selling drug for arthritis and psoriasis. Next year, biosimilars finally entering the U.S. market will weigh heavily on AbbVie's top line, as well. Despite Humira's impending loss of exclusivity, AbbVie looks like a good dividend stock to buy now. |
23003.0 | 2022-11-20 00:00:00 UTC | If You Invested $5,000 In InMode Stock In 2020, Here's How Much Money You'd Have Today | ABBV | https://www.nasdaq.com/articles/if-you-invested-%245000-in-inmode-stock-in-2020-heres-how-much-money-youd-have-today | nan | nan | InMode (NASDAQ: INMD) is a growth stock unlike any other, and it's also one of my biggest holdings. This medical aesthetics company hails from Israel, and it makes technologies that enable minimally invasive beauty treatments, ranging from skin tightening to body contouring. That means it stands to steal market share from traditional, non-invasive beauty techniques like laser treatments as well as invasive approaches like plastic surgery.
Its shares are up some 50% over the past six months. But was the business a good investment a couple of years ago, and could it still be a good investment from here? The answer to both of those questions is yes, and here's why.
This growth stock delivered massive returns
Investing in InMode in early 2020 was a smart move. If you bought $5,000 worth of its shares on Jan. 1, 2020, they'd now be worth around $9,400. But that's assuming you didn't sell your shares after the stock's sharp run-up in late 2021. If you'd sold near the peak, you'd now have more than $24,000.
Now, with its valuation at a more reasonable level and with less liquidity in the financial markets thanks to rising interest rates, the question is whether it can deliver good returns for new and existing shareholders moving forward.
One thing is certain: InMode probably can't grow its earnings or sales as rapidly as it has over the last few years. Look at this chart:
INMD Revenue (TTM) data by YCharts
As you can see, while its trailing-12-month net income is still rising, it's also decelerating. But don't take that to mean its margins are compressing. In fact, compared to five years ago, the company's cost of goods sold (COGS) and total expenses have fallen as a percentage of its quarterly revenue, and its profit margin actually widened.
To accomplish this achievement, InMode commercialized a handful of devices as well as applicators or attachments to use in conjunction with its workstations. Each workstation is specialized for a specific purpose, such as non-invasive skin tightening of the face in the case of its Evoke unit. Another unit, the Diolaze XL, is used for hair removal.
The point is that customers can establish a relationship with InMode when they buy their first unit and then continue to be a source of revenue as they purchase maintenance services, new attachments, and replacement parts for their hardware. That makes its long-term prospects quite appealing as the company should have plenty of opportunities to profit from its growing product ecosystem.
Is the growth slowdown a problem?
It likely doesn't matter much that InMode's growth recently slowed down a bit, and here's why.
In 2021, the company only spent around $9.5 million on research and development (R&D) against $357.5 million in total revenue, and in 2020 it spent a similar sum. That was enough to launch two new workstations in 2021. And from 2010 to 2021, it launched 10 new platforms. In other words, InMode's R&D engine has a long-term track record of successfully creating innovative products that the medical aesthetics market is happy to adopt -- all for relatively small R&D spending.
Further, it plans to open subsidiaries to sell its hardware in Asia and Europe by the middle of next year. That should enable it to find new sources of customers and revenue growth. But don't be surprised if the expense of running a global business causes margins to compress slightly as earnings ramp up.
As the next few years unfold, expect the business to keep launching more platforms and generating more sales from recurring sources like replacement parts and from newly developed products. All the while, its devices should continue to have an edge compared to more invasive substitutes like plastic surgery. Beauty treatments delivered via quick outpatient appointments tend to find easier acceptance from patients.
Perhaps the biggest risk to investors who buy InMode stock today is potential competition from other companies offering aesthetic treatments. Management cites such companies as AbbVie subsidiary Allergan, which makes Botox, as contestants for its market. Still, this is a growing field that should be able to accommodate various approaches.
With that in mind, this stock is an attractive one for investors looking for growth at a moderate amount of risk. Just don't expect the returns to be exactly the same as the first few years after its debut as a public company.
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Alex Carchidi has positions in InMode Ltd. The Motley Fool has positions in and recommends InMode Ltd. 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. | Management cites such companies as AbbVie subsidiary Allergan, which makes Botox, as contestants for its market. In fact, compared to five years ago, the company's cost of goods sold (COGS) and total expenses have fallen as a percentage of its quarterly revenue, and its profit margin actually widened. The point is that customers can establish a relationship with InMode when they buy their first unit and then continue to be a source of revenue as they purchase maintenance services, new attachments, and replacement parts for their hardware. | Management cites such companies as AbbVie subsidiary Allergan, which makes Botox, as contestants for its market. That means it stands to steal market share from traditional, non-invasive beauty techniques like laser treatments as well as invasive approaches like plastic surgery. This growth stock delivered massive returns Investing in InMode in early 2020 was a smart move. | Management cites such companies as AbbVie subsidiary Allergan, which makes Botox, as contestants for its market. This growth stock delivered massive returns Investing in InMode in early 2020 was a smart move. Perhaps the biggest risk to investors who buy InMode stock today is potential competition from other companies offering aesthetic treatments. | Management cites such companies as AbbVie subsidiary Allergan, which makes Botox, as contestants for its market. InMode (NASDAQ: INMD) is a growth stock unlike any other, and it's also one of my biggest holdings. In fact, compared to five years ago, the company's cost of goods sold (COGS) and total expenses have fallen as a percentage of its quarterly revenue, and its profit margin actually widened. |
23004.0 | 2022-11-19 00:00:00 UTC | 2 Breakout Growth Stocks to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/2-breakout-growth-stocks-to-buy-for-the-long-haul-0 | nan | nan | Definitive Healthcare (NASDAQ: DH) and Elevance Health (NYSE: ELV) may not be household names, but these two healthcare stocks in the Russell 1000 Index are prime examples of breakout growth stocks that investors should be considering.
Other than their strong prospects, the two stocks aren't much alike. Definitive, founded in 2010, is a relatively new small-cap company that isn't consistently profitable yet -- and its shares are down over 70% this year. Elevance Health is a large-sized insurer founded in 1946 and its stock is actually up about 4% in 2022.
Let's dive in and see what makes both stocks promising today.
1. Definitive Healthcare simplifies medical sales
Definitive Healthcare just went public last year through an initial public offering, but many of its clients are big players in healthcare, such as AbbVie, Siemens Healthineers, and AstraZeneca.
Definitive specializes in providing commercial medical analytics and has already built up a little moat due to its early mover status. Its data-as-a-service products aggregate information to help corporate customers efficiently make sales in the complex healthcare market. Healthcare companies use Definitive's data to improve their marketing spending or speed commercialization of their products.
Not all of Definitive's more than 2,900 customers are healthcare companies. One, for example, was an ice machine company looking to identify hospitals and ambulatory centers that could use its services.
Definitive Healthcare's strength has been its ability to get its customers to continue their subscriptions and to add Definitive's proprietary services. While the company's shares have suffered, falling sharply this year, its financials paint a more promising picture.
In the third quarter, the company reported revenue of $57.4 million, up 33% year over year, with a net loss of $6.4 million, an improvement over the net loss of $21 million it showed in the same period a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 13.8% year over year to $16.4 million.
The company's continued growth is impressive, considering that many healthcare companies have scaled back spending in recent months. Its adjusted gross margin is huge -- 89% in the third quarter. The combination of high revenue growth and high profitability is why I like the company's long-term prospects. Its full-year guidance anticipates revenue between $220 million and $221 million, up 32% to 33% over last year.
2. Growth is consistent with Elevance Health
Elevance Health, which changed its name from Anthem in May, is a health insurer whose companies serve more than 118 million people. Its revenue growth has been buoyed by an aggressive merger and acquisition strategy.
The company's most recent purchase is specialty pharmacy BioPlus, which focuses on patients with complex conditions, including cancer. The new company will be under the wing of CarelonRx, formerly IngenioRx, one of Elevance's companies. Terms of the deal, which is expected to close early in 2023, were not disclosed.
Elevance's stock is up about 4% so far this year, far better than the market's performance. The company has increased revenue by 160% over the past decade and by 45% over the past three years. In the third quarter, the company reported revenue of $39.9 billion, up 11.5% year over year; net income of $1.6 billion, up 7.4%; and earnings per share (EPS) of $6.68, up 9%.
Rare for a company with such strong growth, it offers a respectable quarterly dividend, which it raised this year by 13% to $1.28. That's the 11th consecutive year it has boosted its dividend, which current yields around 1.07%.
The company also expanded its full-year guidance, saying it now expects EPS of more than $25 per share. Through nine months, it reported revenue of $116.6 billion, showing it is on track for its 12th consecutive year of revenue growth. It also has had nine consecutive quarters of revenue growth.
What I like about Elevance is that it isn't afraid of utilizing its size. While some healthcare giants have scaled back to streamline their operations, Elevance has consistently shown strong management skills in being able to absorb new companies and then using the advantage of its size and scale.
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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. | Definitive Healthcare simplifies medical sales Definitive Healthcare just went public last year through an initial public offering, but many of its clients are big players in healthcare, such as AbbVie, Siemens Healthineers, and AstraZeneca. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jim Halley has positions in AbbVie. Definitive specializes in providing commercial medical analytics and has already built up a little moat due to its early mover status. | Definitive Healthcare simplifies medical sales Definitive Healthcare just went public last year through an initial public offering, but many of its clients are big players in healthcare, such as AbbVie, Siemens Healthineers, and AstraZeneca. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jim Halley has positions in AbbVie. In the third quarter, the company reported revenue of $57.4 million, up 33% year over year, with a net loss of $6.4 million, an improvement over the net loss of $21 million it showed in the same period a year ago. | Definitive Healthcare simplifies medical sales Definitive Healthcare just went public last year through an initial public offering, but many of its clients are big players in healthcare, such as AbbVie, Siemens Healthineers, and AstraZeneca. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jim Halley has positions in AbbVie. Definitive Healthcare (NASDAQ: DH) and Elevance Health (NYSE: ELV) may not be household names, but these two healthcare stocks in the Russell 1000 Index are prime examples of breakout growth stocks that investors should be considering. | Definitive Healthcare simplifies medical sales Definitive Healthcare just went public last year through an initial public offering, but many of its clients are big players in healthcare, such as AbbVie, Siemens Healthineers, and AstraZeneca. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jim Halley has positions in AbbVie. Elevance's stock is up about 4% so far this year, far better than the market's performance. |
23005.0 | 2022-11-18 00:00:00 UTC | CytomX (CTMX) Stock Surges on Oncology Deal With Regeneron | ABBV | https://www.nasdaq.com/articles/cytomx-ctmx-stock-surges-on-oncology-deal-with-regeneron | nan | nan | Shares of clinical-stage, oncology-focused biopharmaceutical company CytomX Therapeutics, Inc. CTMX skyrocketed 32.2% after the company announced a collaboration and licensing agreement with biotech giant, Regeneron Pharmaceuticals, Inc. REGN.
Both companies have collaborated to create conditionally-activated investigational bispecific cancer therapies, utilizing CytomX’s Probody therapeutic platform and Regeneron’s Veloci-Bi bispecific antibody development platform.
Per the agreement, Regeneron and CytomX will collaborate on the discovery activities to identify and validate conditionally active bispecific antibodies. Regeneron will be responsible for funding preclinical and clinical development and commercialization activities. In exchange, CytomX will receive an upfront payment of $30 million and will be eligible to receive future target nomination payments and preclinical, clinical, and commercial milestones of up to $2 billion. CytomX is also eligible to receive tiered global net sales royalties.
Shares of CytomX have plunged 63% in the year so far compared with the industry’s decrease of 19.5%.
Image Source: Zacks Investment Research
The collaboration with Regeneron is a positive for the company, given Regeneron’s financial prowess and expertise.
CytomX’s pipeline comprises seven therapeutic candidates across multiple treatment modalities, including antibody-drug conjugates (ADCs), T-cell engaging bispecific antibodies, and immune modulators such as cytokines and checkpoint inhibitors.
CytomX also has strategic collaborations with bigwigs like AbbVie ABBV, Amgen AMGN, Astellas, and Bristol Myers Squibb.
CX-2029 is an investigational conditionally activated ADC directed toward CD71. It has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie.
The company has partnered with Bristol Myers Squibb for BMS-986249 and BMS-986288. It has also collaborated with Amgen for CX-904, a conditionally activated T-cell-engaging bispecific antibody targeting the epidermal growth factor receptor on tumor cells and the CD3 receptor on T cells.
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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Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Amgen Inc. (AMGN): 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie. CytomX also has strategic collaborations with bigwigs like AbbVie ABBV, Amgen AMGN, Astellas, and Bristol Myers Squibb. AbbVie Inc. (ABBV): Free Stock Analysis Report | CytomX also has strategic collaborations with bigwigs like AbbVie ABBV, Amgen AMGN, Astellas, and Bristol Myers Squibb. It has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report | CytomX also has strategic collaborations with bigwigs like AbbVie ABBV, Amgen AMGN, Astellas, and Bristol Myers Squibb. It has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report | CytomX also has strategic collaborations with bigwigs like AbbVie ABBV, Amgen AMGN, Astellas, and Bristol Myers Squibb. It has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23006.0 | 2022-11-17 00:00:00 UTC | Key Factors Driving Amgen's (AMGN) Outperformance This Year | ABBV | https://www.nasdaq.com/articles/key-factors-driving-amgens-amgn-outperformance-this-year | nan | nan | Amgen AMGN stock has risen 38.2% this year so far against a decline of 23.4% for the industry.
Image Source: Zacks Investment Research
Here we discuss the factors for the stock's outperformance. Amgen’s key drugs like Prolia, Repatha and Otezla are aiding sales, driven by volume growth. These drugs are gaining consistent approvals for label expansions.
Moreover, Amgen is evaluating Prolia/Xgeva, Vectibix, Enbrel, Aranesp, Kyprolis, Nplate and Blincyto for additional indications. Importantly, new drugs Lumakras and Tezspire are off to an encouraging start. Lumakras (sotorasib) was approved for advanced non-small cell lung cancer (NSCLC) in the United States in May 2021 and in the EU in January 2022. It is now available in more than 45 countries. Also, label expansion studies on Lumakras, with the potential to significantly expand the currently addressable patient population, are progressing rapidly.
Tezspire (tezepelumab) was approved to treat severe asthma in the United States in December 2021. Amgen has a partnership with AstraZeneca AZN for Tezspire. In September, AstraZeneca announced that Tezspire was approved in Japan and Europe. Amgen and AstraZeneca share costs and profits equally after payment by AstraZeneca of a mid-single-digit inventor royalty to Amgen. While AstraZeneca leads development, Amgen leads manufacturing.
Amgen is also rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in 2023, which could act as catalysts for the stock. The recent acquisition of ChemoCentryx added a strategic new growth asset in Tavneos to Amgen’s portfolio
Amgen also boasts a strong biosimilars portfolio, which is an important long-term growth driver. Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023.
Biosimilars of J&J’s Stelara (ABP 654), Alexion’s Soliris (ABP 959) and Regeneron’s Eylea (ABP 938) are in late-stage state development. Amgen has successfully completed phase III studies for all these biosimilar candidates. Amgen’s biosimilars revenues are annualizing at over $2 billion in sales, while it is expected to more than double from 2021 to 2030, supported by Amjevita launch and other biosimilars in late-stage development.
Amgen has its share of problems. Increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. The Humira U.S. sales erosion in 2023 and increasing biosimilar competition for some other legacy products create potential revenue headwinds.
Amgen’s net selling price has declined for the past few years with the trend expected to continue in 2023 due to increased competition. In addition, foreign exchange headwinds with the strengthening of the U.S. dollar, increasing interest rates, persistently high inflation, supply chain pressure and the war in Europe are creating an uncertain macro environment.
Nonetheless, continued strong growth of key drugs, higher sales from ex-U.S. markets, increased contribution from its high-quality biosimilars and costs savings should keep the stock afloat in 2023.
Zacks Rank
Amgen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AstraZeneca PLC (AZN): Free Stock Analysis Report
Roche Holding AG (RHHBY): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. | Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. |
23007.0 | 2022-11-16 00:00:00 UTC | Should First Trust Morningstar Dividend Leaders ETF (FDL) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-first-trust-morningstar-dividend-leaders-etf-fdl-be-on-your-investing-radar-3 | nan | nan | The First Trust Morningstar Dividend Leaders ETF (FDL) was launched on 03/09/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $4.28 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.53%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 21.70% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.10% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ).
The top 10 holdings account for about 53.74% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has gained about 7.13% so far this year and it's up approximately 13.55% in the last one year (as of 11/16/2022). In the past 52-week period, it has traded between $32.13 and $39.18.
The ETF has a beta of 0.88 and standard deviation of 24.88% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Morningstar Dividend Leaders ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FDL is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.86 billion in assets, Vanguard Value ETF has $103.84 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
See This Stock Now >>
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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
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 Corporation (XOM) accounts for about 9.10% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). AbbVie Inc. (ABBV): Free Stock Analysis Report The First Trust Morningstar Dividend Leaders ETF (FDL) was launched on 03/09/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.10% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). AbbVie Inc. (ABBV): Free Stock Analysis Report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.10% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). AbbVie Inc. (ABBV): Free Stock Analysis Report Alternatives First Trust Morningstar Dividend Leaders ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 9.10% of total assets, followed by Abbvie Inc. (ABBV) and Verizon Communications Inc. (VZ). AbbVie Inc. (ABBV): Free Stock Analysis Report The First Trust Morningstar Dividend Leaders ETF (FDL) was launched on 03/09/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. |
23008.0 | 2022-11-15 00:00:00 UTC | 3 Pharmaceutical Stocks For Your November 2022 Watchlist | ABBV | https://www.nasdaq.com/articles/3-pharmaceutical-stocks-for-your-november-2022-watchlist | nan | nan | Pharmaceutical stocks are an important part of any well-rounded investment portfolio. They offer the potential for both high returns and low risk, making them ideal for investors of all types. Pharmaceutical stocks are a good investment for many reasons.
For one, the global population is aging, and as people age, they tend to need more medications. This means that there will be increasing demand for pharmaceuticals in the future. In addition, developing countries are also becoming more affluent, and as incomes rise, people there will also have more money to spend on health care.
Pharmaceutical companies are well-positioned to benefit from these trends. In addition, the industry is relatively insulated from economic downturns, as people will still need to buy medicines even when times are tough. As a result, Pharmaceutical stocks offer investors a chance to experience strong growth even in difficult economic conditions. With that, here are three large-cap pharmaceutical stocks to watch in the stock market this week.
Pharmaceutical Stocks To Watch Today
AbbVie Inc. (NYSE: ABBV)
Amgen Inc. (NYSE: AMGN)
Bristol Myers Squibb Company (NYSE: BMY)
AbbVie (ABBV Stock)
Leading off, AbbVie (ABBV) is a research-based biopharmaceutical company that discovers, develops, manufactures, and markets innovative therapies used to treat some of the world’s most complex and difficult-to-treat diseases. The company’s top drug, Humira, represents approximately 50% of the company’s current profits.
ABBV Recent Stock News
At the end of last month, AbbVie reported better-than-expected third-quarter 2022 financial results. In them, the pharmaceutical company reported an EPS of $3.66 per share, along with revenue of $14.8 billion for Q3 2022.
However, the company did revise its guidance lower. In detail, the company said it expects the fiscal year 2022 earnings in the range of $13.84 to $13.88 per share. Previously, ABBV reported guidance in the range of $13.78 to $13.98 per share.
Richard A. Gonzalez, chairman and CEO at AbbVie commented, “We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance – combined with strength from other growth drivers within our diverse portfolio – has mitigated the impact of temporary economic headwinds on our aesthetics products to deliver another quarter of strong results.“
ABBV Stock Chart
In the last month of trading activity, shares of ABBV stock have rallied back 5.60%. Meanwhile, as of Tuesday morning’s trading session AbbVie stock is trading at $152.47 a share.
Source: TD Ameritrade TOS
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Amgen (AMGN Stock)
After that, let’s turn our attention to Amgen (AMGN). For starters, Amgen is a biotechnology company that specializes in the development and manufacturing of pharmaceuticals. The company’s products include treatments for cancer, cardiovascular disease, diabetes, osteoporosis, and others.
AMGN Recent Stock News
Earlier this month, Amgen announced a beat for its third-quarter 2022 financial results. Diving in, the biotech company reported Q3 2022 earnings of $4.70 per share and revenue of $6.7 billion. For context, Wall Street’s consensus earnings estimate was $4.43 per share and revenue of $6.6 billion.
Additionally, Amgen also said it now expects the fiscal year 2022 earnings in the range of $17.25 to $17.85 a share, along with revenue estimates of $26 to $26.3 billion.
Robert A. Bradway, chairman, and CEO commented, “Our medicines generated 8% volume growth in the quarter globally, with 11 products achieving record quarterly sales, This growth reflects the strong underlying demand for our medicines and the value they bring to patients.“
AMGN Stock Chart
Looking at the last month of trading action, Amgen stock has increased 12.79%, while still outperforming the broader markets year-to-date. On Tuesday, shares of AMGN stock are trading at $284.56 a share.
Source: TD Ameritrade TOS
[Read More] Top Dividend Stocks To Buy Now? 3 For Your List
Bristol Myers Squibb (BMY Stock)
Topping off the list we have Bristol Myers Squibb (BMY). In brief, Bristol Myers Squibb is a global biopharmaceutical company that discovers, develops, and commercializes medicines to treat diseases. The company has a portfolio of products in multiple therapeutic areas, including oncology, immunology, cardiovascular and viral diseases.
BMY Recent Stock News
At the end of October, Bristol Myers Squibb reported better-than-expected 3rd quarter 2022 financial results. Getting right into it, the company notched in an EPS of $1.99, along with revenue of $11.2 billion. This is compared to analysts’ consensus estimates for Q3 2022, which was earnings of $1.83 per share, and revenue of $11.2 billion.
What’s more, BMY reaffirmed its fiscal year 2022 outlook. Specifically, the company said it continues to estimate FY 2022 earnings of $7.44 to $7.74 per share.
Moreover, Giovanni Caforio, M.D., board chair and CEO, of Bristol Myers Squibb said, “Our teams continue to progress our pipeline and achieve significant regulatory and clinical milestones, including the approval of Sotyktu, a first-in-class, TYK2 inhibitor, to treat moderate to severe plaque psoriasis. Our nine new product launches over the last three years including three first-in-class launches this year, combined with progress in our robust and diverse product pipeline, have built a strong foundation for our company.“
BMY Stock Chart
In the last month of trading, BMY stock has rallied 5.88%. Meanwhile, on Tuesday shares of BMY stock opened modestly lower by 1.35% at $73.35 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. | Richard A. Gonzalez, chairman and CEO at AbbVie commented, “We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance – combined with strength from other growth drivers within our diverse portfolio – has mitigated the impact of temporary economic headwinds on our aesthetics products to deliver another quarter of strong results.“ ABBV Stock Chart In the last month of trading activity, shares of ABBV stock have rallied back 5.60%. Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) Amgen Inc. (NYSE: AMGN) Bristol Myers Squibb Company (NYSE: BMY) AbbVie (ABBV Stock) Leading off, AbbVie (ABBV) is a research-based biopharmaceutical company that discovers, develops, manufactures, and markets innovative therapies used to treat some of the world’s most complex and difficult-to-treat diseases. ABBV Recent Stock News At the end of last month, AbbVie reported better-than-expected third-quarter 2022 financial results. | Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) Amgen Inc. (NYSE: AMGN) Bristol Myers Squibb Company (NYSE: BMY) AbbVie (ABBV Stock) Leading off, AbbVie (ABBV) is a research-based biopharmaceutical company that discovers, develops, manufactures, and markets innovative therapies used to treat some of the world’s most complex and difficult-to-treat diseases. ABBV Recent Stock News At the end of last month, AbbVie reported better-than-expected third-quarter 2022 financial results. Previously, ABBV reported guidance in the range of $13.78 to $13.98 per share. | Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) Amgen Inc. (NYSE: AMGN) Bristol Myers Squibb Company (NYSE: BMY) AbbVie (ABBV Stock) Leading off, AbbVie (ABBV) is a research-based biopharmaceutical company that discovers, develops, manufactures, and markets innovative therapies used to treat some of the world’s most complex and difficult-to-treat diseases. Richard A. Gonzalez, chairman and CEO at AbbVie commented, “We continue to see strong momentum from our key immunology assets, Skyrizi and Rinvoq, and this performance – combined with strength from other growth drivers within our diverse portfolio – has mitigated the impact of temporary economic headwinds on our aesthetics products to deliver another quarter of strong results.“ ABBV Stock Chart In the last month of trading activity, shares of ABBV stock have rallied back 5.60%. ABBV Recent Stock News At the end of last month, AbbVie reported better-than-expected third-quarter 2022 financial results. | Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) Amgen Inc. (NYSE: AMGN) Bristol Myers Squibb Company (NYSE: BMY) AbbVie (ABBV Stock) Leading off, AbbVie (ABBV) is a research-based biopharmaceutical company that discovers, develops, manufactures, and markets innovative therapies used to treat some of the world’s most complex and difficult-to-treat diseases. ABBV Recent Stock News At the end of last month, AbbVie reported better-than-expected third-quarter 2022 financial results. Previously, ABBV reported guidance in the range of $13.78 to $13.98 per share. |
23009.0 | 2022-11-14 00:00:00 UTC | Noteworthy Monday Option Activity: BA, CHRD, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-ba-chrd-abbv | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Boeing Co. (Symbol: BA), where a total of 55,921 contracts have traded so far, representing approximately 5.6 million underlying shares. That amounts to about 54.9% of BA's average daily trading volume over the past month of 10.2 million shares. Especially high volume was seen for the $260 strike call option expiring March 17, 2023, with 4,112 contracts trading so far today, representing approximately 411,200 underlying shares of BA. Below is a chart showing BA's trailing twelve month trading history, with the $260 strike highlighted in orange:
Chord Energy Corp (Symbol: CHRD) saw options trading volume of 2,190 contracts, representing approximately 219,000 underlying shares or approximately 54.2% of CHRD's average daily trading volume over the past month, of 404,405 shares. Particularly high volume was seen for the $130 strike call option expiring November 18, 2022, with 820 contracts trading so far today, representing approximately 82,000 underlying shares of CHRD. Below is a chart showing CHRD's trailing twelve month trading history, with the $130 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 29,113 contracts, representing approximately 2.9 million underlying shares or approximately 54.1% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $155 strike call option expiring November 18, 2022, with 2,255 contracts trading so far today, representing approximately 225,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for BA options, CHRD 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 $155 strike call option expiring November 18, 2022, with 2,255 contracts trading so far today, representing approximately 225,500 underlying shares of ABBV. Below is a chart showing CHRD's trailing twelve month trading history, with the $130 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 29,113 contracts, representing approximately 2.9 million underlying shares or approximately 54.1% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for BA options, CHRD options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing CHRD's trailing twelve month trading history, with the $130 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 29,113 contracts, representing approximately 2.9 million underlying shares or approximately 54.1% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $155 strike call option expiring November 18, 2022, with 2,255 contracts trading so far today, representing approximately 225,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for BA options, CHRD options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing CHRD's trailing twelve month trading history, with the $130 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 29,113 contracts, representing approximately 2.9 million underlying shares or approximately 54.1% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $155 strike call option expiring November 18, 2022, with 2,255 contracts trading so far today, representing approximately 225,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for BA options, CHRD options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing CHRD's trailing twelve month trading history, with the $130 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 29,113 contracts, representing approximately 2.9 million underlying shares or approximately 54.1% of ABBV's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $155 strike call option expiring November 18, 2022, with 2,255 contracts trading so far today, representing approximately 225,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for BA options, CHRD options, or ABBV options, visit StockOptionsChannel.com. |
23010.0 | 2022-11-14 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-1 | 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 +5.1%, compared to the Zacks S&P 500 composite's +11.4% 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.
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.
AbbVie is expected to post earnings of $3.70 per share for the current quarter, representing a year-over-year change of +11.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.9%.
The consensus earnings estimate of $13.88 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.51 indicates a change of -17% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -1.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
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 $15.48 billion indicates a year-over-year change of +4%. For the current and next fiscal years, $58.44 billion and $54.02 billion estimates indicate +4% and -7.6% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $3.66 for the same period compares with $3.33 a year ago.
Compared to the Zacks Consensus Estimate of $14.92 billion, the reported revenues represent a surprise of -0.74%. The EPS surprise was +2.81%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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 8.2%. | Last Reported Results and Surprise History AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. AbbVie (ABBV) has 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 8.2%. | 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 8.2%. AbbVie is expected to post earnings of $3.70 per share for the current quarter, representing a year-over-year change of +11.8%. | 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 8.2%. AbbVie is expected to post earnings of $3.70 per share for the current quarter, representing a year-over-year change of +11.8%. |
23011.0 | 2022-11-13 00:00:00 UTC | Is A Fall Imminent For Merck Stock After A 12% Rise In A Month? | ABBV | https://www.nasdaq.com/articles/is-a-fall-imminent-for-merck-stock-after-a-12-rise-in-a-month | nan | nan | Merck stock (NYSE: MRK) is up 12% in a month, outperforming the broader S&P500 index, up 5%. The rise in MRK stock can be attributed to the upbeat Q3 earnings it reported in late October. Its top and bottom line were well above our estimates, driven by market share gains for some of its drugs.
Merck’s revenue of $15.0 billion reflected a 14% y-o-y rise and was well above our $13.9 billion estimate. Sales were up 20% for its top-selling drug – Keytruda. Gardasil vaccine sales were also up 15%. The company’s Covid-19 antiviral pill – Lagevrio – garnered just $436 million during the quarter, compared to the $3.2 billion it garnered in Q1 and $1.2 billion in Q2. Merck’s earnings of $1.85 on a per share and adjusted basis reflect a 4% growth compared to $1.78 in the prior-year quarter, as higher sales were partly offset by higher operating expenses, primarily R&D, which was up 46% y-o-y. Earnings were also comfortably above our forecast of $1.75 and the consensus estimate of $1.72.
Given a solid Q3, Merck raised its outlook, and it now expects full-year 2022 revenue to be in the range of $58.5 billion to $59.0 billion and earnings to be in the range of $7.32 to $7.37 per share, compared to its prior forecast of $7.25 to $7.35 per share. We estimate Merck’s Valuation to be around $114 per share, which is about 12% above the current market price of $102. This represents a 15x P/E multiple based on its expected EPS of $7.40 in 2022, compared to the last three-year average of 13x. We have assigned a slightly higher multiple for Merck than its historical average due to robust earnings growth expected in the coming years, driven by continued market share gains for Keytruda.
But What About The Near Term?
Now that MRK stock has seen a 12% rise in a month, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a meager chance of an increase in MRK stock over the next month. MRK stock has seen a move of 12% or more in a month 21 times in the last ten years. Just three of those resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 3 out of 21, or a 14% chance of a rise in MRK stock over the coming month. See our analysis on Merck Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving 2.2% or more over five days, the stock rose on 51% of the occasions in the next five days.
After moving 3.2% or more over ten days, the stock rose in the next ten days on 52% of the occasions
After moving 11.6% or more over a twenty-one-day period, the stock rose on 14% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in MRK stock over the next five and ten days but a meager chance of an increase in the next twenty-one days.
Merck (MRK) Stock Return (Recent) Comparison With Peers And S&P500
Five-Day Return: BMY highest at 3.0%; PFE lowest at -0.7%
Ten-Day Return: BMY highest at 7.2%; JNJ lowest at 0.1%
Twenty-One Days Return: BMY highest at 14.5%; JNJ lowest at 6.0%
While MRK stock looks like it can see lower levels over the next month, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis and recent market volatility have created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite inflation rising and the Fed raising interest rates, Merck stock has risen 33% this year. But can it drop from here? See how low Merck stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
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Returns Nov 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return 0% 33% 73%
S&P 500 Return -3% -21% 67%
Trefis Multi-Strategy Portfolio -5% -26% 192%
[1] Month-to-date and year-to-date as of 11/10/2022
[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 have assigned a slightly higher multiple for Merck than its historical average due to robust earnings growth expected in the coming years, driven by continued market share gains for Keytruda. Just three of those resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). Furthermore, the Covid-19 crisis and recent market volatility have created many pricing discontinuities which can offer attractive trading opportunities. | We have assigned a slightly higher multiple for Merck than its historical average due to robust earnings growth expected in the coming years, driven by continued market share gains for Keytruda. Merck (MRK) Stock Return (Recent) Comparison With Peers And S&P500 Five-Day Return: BMY highest at 3.0%; PFE lowest at -0.7% Ten-Day Return: BMY highest at 7.2%; JNJ lowest at 0.1% Twenty-One Days Return: BMY highest at 14.5%; JNJ lowest at 6.0% While MRK stock looks like it can see lower levels over the next month, it is helpful to see how Merck’s Peers fare on metrics that matter. Total [2] MRK Return 0% 33% 73% S&P 500 Return -3% -21% 67% Trefis Multi-Strategy Portfolio -5% -26% 192% [1] Month-to-date and year-to-date as of 11/10/2022 [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. | After moving 3.2% or more over ten days, the stock rose in the next ten days on 52% of the occasions After moving 11.6% or more over a twenty-one-day period, the stock rose on 14% of the occasions in the next twenty-one days. Merck (MRK) Stock Return (Recent) Comparison With Peers And S&P500 Five-Day Return: BMY highest at 3.0%; PFE lowest at -0.7% Ten-Day Return: BMY highest at 7.2%; JNJ lowest at 0.1% Twenty-One Days Return: BMY highest at 14.5%; JNJ lowest at 6.0% While MRK stock looks like it can see lower levels over the next month, it is helpful to see how Merck’s Peers fare on metrics that matter. Total [2] MRK Return 0% 33% 73% S&P 500 Return -3% -21% 67% Trefis Multi-Strategy Portfolio -5% -26% 192% [1] Month-to-date and year-to-date as of 11/10/2022 [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 estimate Merck’s Valuation to be around $114 per share, which is about 12% above the current market price of $102. We have assigned a slightly higher multiple for Merck than its historical average due to robust earnings growth expected in the coming years, driven by continued market share gains for Keytruda. MRK stock has seen a move of 12% or more in a month 21 times in the last ten years. |
23012.0 | 2022-11-13 00:00:00 UTC | The 7 Best Stocks for Retirement | ABBV | https://www.nasdaq.com/articles/the-7-best-stocks-for-retirement | nan | nan | With corporate pensions largely becoming an anachronistic relic, it’s never been more important for investors to plan for their golden years. However, with the combination of broader market volatility and the Federal Reserve’s interest rate hikes (and all that this action encompasses), the backdrop practically bolsters the case for finding the best stocks for retirement.
Specifically, the market no longer incentivizes investors to consider growth-oriented names. Instead, the Fed’s monetary tightening will likely drive demand for value-driven enterprises, in other words, companies with deeply established track records that pay back their shareholders in the form of reliable and stable dividends.
Further, the sharp rise in borrowing costs due to the aforementioned rate hikes created a paradigm shift in the purchasing power of the dollar. Previously, inflationary forces made money “cheap,” thus sparking growth-focused endeavors. Now, money is “expensive,” meaning that value has become the priority. Organically, this framework helps the best stocks for retirement as they already eschew expansion for stability.
Below are seven market ideas that deserve closer attention during these unusual times.
Microsoft (NASDAQ:MSFT)
One of the best stocks for retirement, thanks to its far-reaching relevance, software and technology giant Microsoft primarily warrants attention because it dominates the language of business. Based on the latest data, Microsoft Windows owns nearly 76% of the global desktop market share. Stated differently, if you want to succeed in the professional realm, you must be fluent in Windows along with Microsoft’s various business applications.
Quantitatively, MSFT ranks among the best stocks for retirement because it features a balanced financial profile. Leveraging a solid balance sheet, this fiscal stability undergirds the company’s strong revenue growth and excellent profit margins. While its forward dividend yield of 1.1% isn’t particularly generous, its payout ratio of 26.7% suggests high reliability of passive income outflows.
Is MSFT Stock a Buy, According to Analysts?
Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 24 Buys, three Holds, and zero Sell ratings. The average MSFT price target is $293.46, implying 18.8% upside potential.
Coca-Cola (NYSE:KO)
One of the most iconic American companies and a symbol of western-style capitalism, Coca-Cola also ranks among the best stocks for retirement. Fundamentally, analysts for years labeled KO stock as resistant to recessionary pressures. In addition, the company’s products offer a cheap thrill, providing a caffeine boost at a relatively low cost.
Regarding its financials, investors will appreciate its forward yield of 2.87%, which stands nominally one percentage point higher than the sector average. Although its payout ratio is high at 69.64%, the company also enjoys 60 years of consecutive dividend increases. There’s really no way that management will let this status go without a fierce battle, allowing stakeholders to rest easier at night.
Is KO Stock a Buy, According to Analysts?
Turning to Wall Street, KO stock has a Strong Buy consensus rating based on 12 Buys, two Holds, and zero Sell ratings. The average KO price target is $66.29, implying 8.1% upside potential.
Allstate (NYSE:ALL)
An insurance agency, Allstate may be boring, but it easily counts itself among the best stocks for retirement available. Indeed, insurance firms live for market ecosystems such as the present juncture. That’s because insurance stocks and the benchmark interest rate typically share a direct correlation: as one rises, so too does the other.
On the financial side, ALL brings a forward yield of 2.57%. Though not the greatest dividend, the company’s payout ratio is 36.7%, implying a sustainable passive income outflow. Also, Allstate is relatively undervalued, with its price-to-sales ratio of 0.7x favorably lower than the industry median of 0.95x.
Is Allstate Stock a Buy, According to Analysts?
Turning to Wall Street, ALL stock has a Moderate Buy consensus rating based on six Buys, five Holds, and one Sell rating. The average ALL price target is $141.08, implying 6.8% upside potential.
Aflac (NYSE:AFL)
One of the world’s biggest suppliers of supplemental insurance, Aflac provides a critical need by filling gaps that traditional insurance plans don’t cover. In addition, AFL ranks among the best stocks for retirement because of fundamental awareness. With the pain of COVID-19 still fresh, everyone realized that circumstances can go awry without warning. Therefore, Aflac couldn’t have asked for a better marketing campaign than COVID-19.
Aflac also makes plenty of sense for those seeking a worry-free retirement. For instance, its dividend yield is 2.40%, while its payout ratio sits at 31.26%, indicating reliable passive income. Further, the company sports 39 years of consecutive dividend increases, a status no executive team will relinquish cheaply.
Is AFL Stock a Buy, According to Analysts?
Turning to Wall Street, AFL stock has a Moderate Buy consensus rating based on two Buys, four Holds, and zero Sell ratings. The average AFL price target is $66.17, implying 5.9% downside potential.
AbbVie (NYSE:ABBV)
A pharmaceutical giant, AbbVie draws intrigue because of its acquisition of Botox. With normalization trends likely to fully materialize in the workforce as employers recall their workers back to the office, an emphasis will rise on physical complexion. It’s a cynical take, sure, but it’s also one that could make ABBV one of the best stocks for retirement.
By the numbers, AbbVie continues to attract investors. Primarily, the pharma carries a forward yield of 3.94%, well above the healthcare sector average of 1.58%. While its 50.54% payout ratio is a bit on the high side, AbbVie commands 50 years of consecutive dividend increases. Again, management will do whatever it takes to keep this trajectory moving forward and higher.
Is ABBV Stock a Buy, According to Analysts?
Turning to Wall Street, ABBV stock has a Moderate Buy consensus rating based on five Buys, six Holds, and one Sell rating. The average ABBV price target is $154.75, implying 3.06% upside potential.
Duke Energy (NYSE:DUK)
A major utility firm, Duke Energy makes plenty of sense across most frameworks due to its infrastructural relevance. However, it really makes sense as one of the best stocks for retirement. Because Duke covers regions popular with millennials, it’s basically positioned where people will be, not necessarily where they are. Thus, DUK enjoys forward relevance.
In addition, Duke Energy offers a forward yield of 4.14%, slightly exceeding the sector average of 3.75%. Though the payout ratio stands on the high side at 70.63%, the company also has 17 years of consecutive dividend increases. Finally, Duke also benefits from profit margins that rank among the industry’s top-half performers.
Is DUK Stock a Buy, According to Analysts?
Turning to Wall Street, DUK stock has a Moderate Buy consensus rating based on four Buys, seven Holds, and zero Sell ratings. The average DUK price target is $101.82, implying 7% upside potential.
Intel (NASDAQ:INTC)
Saving the riskiest name among the best stocks for retirement for last, Intel has certainly seen better days. Since the start of the year, INTC has shed 40% of its equity value. However, it’s also fair to point out that the company could be significantly undervalued. For instance, INTC is priced at 9.2x trailing-12-months (TTM) earnings. In contrast, the industry median is 16.4x.
Intel is also generous, featuring a forward yield of 4.8%. This handily beats out the sector average of only 1.37%. While the payout ratio is lofty at 73.29%, INTC delivers a potentially potent combo of upside potential and passive income. Thus, it’s one of the best stocks for retirement.
Is INTC Stock a Buy, According to Analysts?
Turning to Wall Street, INTC stock has a Hold consensus rating based on four Buys, 16 Holds, and eight Sell ratings. The average INTC price target is $29.54, implying 2.9% downside potential.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE:ABBV) A pharmaceutical giant, AbbVie draws intrigue because of its acquisition of Botox. It’s a cynical take, sure, but it’s also one that could make ABBV one of the best stocks for retirement. By the numbers, AbbVie continues to attract investors. | AbbVie (NYSE:ABBV) A pharmaceutical giant, AbbVie draws intrigue because of its acquisition of Botox. It’s a cynical take, sure, but it’s also one that could make ABBV one of the best stocks for retirement. By the numbers, AbbVie continues to attract investors. | Turning to Wall Street, ABBV stock has a Moderate Buy consensus rating based on five Buys, six Holds, and one Sell rating. AbbVie (NYSE:ABBV) A pharmaceutical giant, AbbVie draws intrigue because of its acquisition of Botox. It’s a cynical take, sure, but it’s also one that could make ABBV one of the best stocks for retirement. | AbbVie (NYSE:ABBV) A pharmaceutical giant, AbbVie draws intrigue because of its acquisition of Botox. It’s a cynical take, sure, but it’s also one that could make ABBV one of the best stocks for retirement. By the numbers, AbbVie continues to attract investors. |
23013.0 | 2022-11-13 00:00:00 UTC | 2 Top Stocks to Buy in November and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-top-stocks-to-buy-in-november-and-hold-forever | nan | nan | Earnings reports can be an investor's best friend. They don't just tell us about recent revenue and profit. They also offer us clues about a company's future. These reports don't have to be 100% positive. But if certain important points are bright, we might be looking at a buying opportunity.
That's the case for both AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). The companies each face specific challenges at the moment. But they've also given us some pretty good reasons to be optimistic about the future. Let's take a closer look at these two top stocks to buy this month and hold forever.
1. AbbVie
I'll get the bad news out of the way first. AbbVie's super blockbuster immunology drug Humira is set to face U.S. competition as of next year. Humira's international sales already are on the decline as rivals outside of the U.S. take market share.
But here's why I'm optimistic about AbbVie. The company's two newer immunology drugs -- Skyrizi and Rinvoq -- are on track to compensate for the loss. In the third-quarter earnings report, AbbVie said both drugs are set to generate $7.5 billion in revenue this year. And their combined revenue eventually should top that of Humira.
AbbVie also has a solid diversified portfolio. Along with immunology, it includes products in neuroscience, oncology, aesthetics, and other areas. In fact, the company is set to become the No. 1 globally by prescription drug market share as of 2026, according to Evaluate data.
AbbVie has a track record of earnings growth over time. Of course, Humira is a key contributor. But Skyrizi and Rinvoq look set to keep this positive trend growing. In the quarter, they represented almost 15% of the company's total revenue.
You'll also like AbbVie for its dividend. The company is a Dividend King. This means it's lifted its dividend payment for at least the past 50 years. This shows dividend growth is important to AbbVie. And that's great news for you as an investor.
AbbVie shares today are trading for 10 times forward earnings estimates, down from more than 12 earlier this year. This looks like a reasonable entry point considering the company's growth prospects -- and dividend policy.
2. Intuitive Surgical
Intuitive's main problem during the pandemic has to do with hospitals postponing surgeries with its surgical robots. That's happened during times when coronavirus hospitalizations have peaked.
Why does this hurt Intuitive? Because Intuitive actually makes more revenue through the sales of instruments and accessories needed for each surgery than from sales of its million-dollar robots.
The postponement of surgeries remains a risk. But as we head toward a post-pandemic world, this risk may be lower than it was in recent times. Things look like they're on the right track. In the third quarter, worldwide procedures using the flagship Da Vinci robot increased 20%. Revenue increased in the double digits.
And, importantly, Intuitive repurchased $1 billion of its own common stock. That's a sign of confidence in the company's future.
Like AbbVie, Intuitive has a history of earnings growth over time. Importantly, Intuitive also is a market leader. The company holds nearly 80% of the robotic surgery market, according to BIS Research. Considering the price tag on surgical robots, it's unlikely hospitals will easily switch over to a rival. So, Intuitive could remain ahead for quite some time.
Intuitive trades at 54 times forward earnings estimates. That's down from more than 72 back in January. At the same time, revenue is on the rise. So right now looks like just the right moment to get in on this exciting long-term story.
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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 super blockbuster immunology drug Humira is set to face U.S. competition as of next year. In the third-quarter earnings report, AbbVie said both drugs are set to generate $7.5 billion in revenue this year. AbbVie shares today are trading for 10 times forward earnings estimates, down from more than 12 earlier this year. | In the third-quarter earnings report, AbbVie said both drugs are set to generate $7.5 billion in revenue this year. AbbVie shares today are trading for 10 times forward earnings estimates, down from more than 12 earlier this year. That's the case for both AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). | In the third-quarter earnings report, AbbVie said both drugs are set to generate $7.5 billion in revenue this year. Like AbbVie, Intuitive has a history of earnings growth over time. That's the case for both AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). | AbbVie has a track record of earnings growth over time. Like AbbVie, Intuitive has a history of earnings growth over time. That's the case for both AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). |
23014.0 | 2022-11-11 00:00:00 UTC | XLV, UNH, ABBV, ELV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-unh-abbv-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 $599.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 300,170,000 to 304,620,000). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 4%, AbbVie Inc (Symbol: ABBV) is off about 2.6%, and Elevance Health Inc (Symbol: ELV) 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 $132.07. 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 UnitedHealth Group Inc (Symbol: UNH) is off about 4%, AbbVie Inc (Symbol: ABBV) is off about 2.6%, and Elevance Health Inc (Symbol: ELV) 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 $599.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 300,170,000 to 304,620,000). 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 UnitedHealth Group Inc (Symbol: UNH) is off about 4%, AbbVie Inc (Symbol: ABBV) is off about 2.6%, and Elevance Health Inc (Symbol: ELV) 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 $132.07. 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 UnitedHealth Group Inc (Symbol: UNH) is off about 4%, AbbVie Inc (Symbol: ABBV) is off about 2.6%, and Elevance Health Inc (Symbol: ELV) 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 $599.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 300,170,000 to 304,620,000). 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 $132.07. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 4%, AbbVie Inc (Symbol: ABBV) is off about 2.6%, and Elevance Health Inc (Symbol: ELV) 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 $599.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 300,170,000 to 304,620,000). 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 $132.07. |
23015.0 | 2022-11-10 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-4 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 28 most recent 13F filings for the 09/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 12 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Financial Engines Advisors L.L.C. Existing -13,687 -$3,731
Banque Pictet & Cie SA Existing +87,164 +$10,680
Staley Capital Advisers Inc. Existing +281 -$9
Wade G W & Inc. Existing -1,116 -$888
Sectoral Asset Management Inc. Existing +12,750 +$948
Steward Partners Investment Advisory LLC Existing +2,489 -$3,046
Executive Wealth Management LLC Existing -1,942 -$343
Legacy Wealth Planning LLC Existing UNCH -$29
Covenant Partners LLC Existing -1,761 -$443
International Assets Investment Management LLC Existing +1,074 -$57
Global Assets Advisory LLC Existing +1,546 +$198
Investors Research Corp Existing +22 -$33
Aggregate Change: +86,820 +$3,247
In terms of shares owned, we count 7 of the above funds having increased existing ABBV positions from 06/30/2022 to 09/30/2022, with 4 having decreased their positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 09/30/2022 reporting period (out of the 3,534 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 06/30/2022 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds increased their holdings by 2,553,751 shares in the aggregate, from 184,505,002 up to 187,058,753 for a share count increase of approximately 1.38%. The overall top three funds holding ABBV on 09/30/2022 were:
» FUND SHARES OF ABBV HELD
1. Swiss National Bank 7,658,375
2. California Public Employees Retirement System 6,340,454
3. Boston Partners 6,150,074
4-10 Find out the full Top 10 Hedge Funds Holding ABBV »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 28 most recent 13F filings for the 09/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 12 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | At Holdings Channel, we have reviewed the latest batch of the 28 most recent 13F filings for the 09/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 12 of these funds. Existing +12,750 +$948 Steward Partners Investment Advisory LLC Existing +2,489 -$3,046 Executive Wealth Management LLC Existing -1,942 -$343 Legacy Wealth Planning LLC Existing UNCH -$29 Covenant Partners LLC Existing -1,761 -$443 International Assets Investment Management LLC Existing +1,074 -$57 Global Assets Advisory LLC Existing +1,546 +$198 Investors Research Corp Existing +22 -$33 Aggregate Change: +86,820 +$3,247 In terms of shares owned, we count 7 of the above funds having increased existing ABBV positions from 06/30/2022 to 09/30/2022, with 4 having decreased their positions. Boston Partners 6,150,074 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | Existing +12,750 +$948 Steward Partners Investment Advisory LLC Existing +2,489 -$3,046 Executive Wealth Management LLC Existing -1,942 -$343 Legacy Wealth Planning LLC Existing UNCH -$29 Covenant Partners LLC Existing -1,761 -$443 International Assets Investment Management LLC Existing +1,074 -$57 Global Assets Advisory LLC Existing +1,546 +$198 Investors Research Corp Existing +22 -$33 Aggregate Change: +86,820 +$3,247 In terms of shares owned, we count 7 of the above funds having increased existing ABBV positions from 06/30/2022 to 09/30/2022, with 4 having decreased their positions. We then compared that number to the sum total of ABBV shares those same funds held back at the 06/30/2022 period, to see how the aggregate share count held by hedge funds has moved for ABBV. Boston Partners 6,150,074 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | At Holdings Channel, we have reviewed the latest batch of the 28 most recent 13F filings for the 09/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 12 of these funds. Boston Partners 6,150,074 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: |
23016.0 | 2022-11-09 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-54 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Procter & Gamble Company (Symbol: PG) $136.81 $151.67 10.86%
AbbVie Inc (Symbol: ABBV) $148.53 $161.94 9.03%
Sysco Corp (Symbol: SYY) $83.42 $89.88 7.74%
General Dynamics Corp (Symbol: GD) $252.54 $271.18 7.38%
Walmart Inc (Symbol: WMT) $142.79 $152.62 6.88%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Procter & Gamble Company (Symbol: PG) 2.67% 10.86% 13.53%
AbbVie Inc (Symbol: ABBV) 3.99% 9.03% 13.02%
Sysco Corp (Symbol: SYY) 2.35% 7.74% 10.09%
General Dynamics Corp (Symbol: GD) 2.00% 7.38% 9.38%
Walmart Inc (Symbol: WMT) 1.57% 6.88% 8.45%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Procter & Gamble Company (Symbol: PG) $3.401 $3.609 6.12%
AbbVie Inc (Symbol: ABBV) $5.2 $5.64 8.46%
Sysco Corp (Symbol: SYY) $1.84 $1.92 4.35%
General Dynamics Corp (Symbol: GD) $4.67 $4.97 6.42%
Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Procter & Gamble Company (Symbol: PG) $136.81 $151.67 10.86% AbbVie Inc (Symbol: ABBV) $148.53 $161.94 9.03% Sysco Corp (Symbol: SYY) $83.42 $89.88 7.74% General Dynamics Corp (Symbol: GD) $252.54 $271.18 7.38% Walmart Inc (Symbol: WMT) $142.79 $152.62 6.88% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.67% 10.86% 13.53% AbbVie Inc (Symbol: ABBV) 3.99% 9.03% 13.02% Sysco Corp (Symbol: SYY) 2.35% 7.74% 10.09% General Dynamics Corp (Symbol: GD) 2.00% 7.38% 9.38% Walmart Inc (Symbol: WMT) 1.57% 6.88% 8.45% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.401 $3.609 6.12% AbbVie Inc (Symbol: ABBV) $5.2 $5.64 8.46% Sysco Corp (Symbol: SYY) $1.84 $1.92 4.35% General Dynamics Corp (Symbol: GD) $4.67 $4.97 6.42% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% These five stocks are part of our full Dividend Aristocrats List. | Procter & Gamble Company (Symbol: PG) $136.81 $151.67 10.86% AbbVie Inc (Symbol: ABBV) $148.53 $161.94 9.03% Sysco Corp (Symbol: SYY) $83.42 $89.88 7.74% General Dynamics Corp (Symbol: GD) $252.54 $271.18 7.38% Walmart Inc (Symbol: WMT) $142.79 $152.62 6.88% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.67% 10.86% 13.53% AbbVie Inc (Symbol: ABBV) 3.99% 9.03% 13.02% Sysco Corp (Symbol: SYY) 2.35% 7.74% 10.09% General Dynamics Corp (Symbol: GD) 2.00% 7.38% 9.38% Walmart Inc (Symbol: WMT) 1.57% 6.88% 8.45% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.401 $3.609 6.12% AbbVie Inc (Symbol: ABBV) $5.2 $5.64 8.46% Sysco Corp (Symbol: SYY) $1.84 $1.92 4.35% General Dynamics Corp (Symbol: GD) $4.67 $4.97 6.42% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% These five stocks are part of our full Dividend Aristocrats List. | Procter & Gamble Company (Symbol: PG) $136.81 $151.67 10.86% AbbVie Inc (Symbol: ABBV) $148.53 $161.94 9.03% Sysco Corp (Symbol: SYY) $83.42 $89.88 7.74% General Dynamics Corp (Symbol: GD) $252.54 $271.18 7.38% Walmart Inc (Symbol: WMT) $142.79 $152.62 6.88% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.67% 10.86% 13.53% AbbVie Inc (Symbol: ABBV) 3.99% 9.03% 13.02% Sysco Corp (Symbol: SYY) 2.35% 7.74% 10.09% General Dynamics Corp (Symbol: GD) 2.00% 7.38% 9.38% Walmart Inc (Symbol: WMT) 1.57% 6.88% 8.45% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.401 $3.609 6.12% AbbVie Inc (Symbol: ABBV) $5.2 $5.64 8.46% Sysco Corp (Symbol: SYY) $1.84 $1.92 4.35% General Dynamics Corp (Symbol: GD) $4.67 $4.97 6.42% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% These five stocks are part of our full Dividend Aristocrats List. | Procter & Gamble Company (Symbol: PG) $136.81 $151.67 10.86% AbbVie Inc (Symbol: ABBV) $148.53 $161.94 9.03% Sysco Corp (Symbol: SYY) $83.42 $89.88 7.74% General Dynamics Corp (Symbol: GD) $252.54 $271.18 7.38% Walmart Inc (Symbol: WMT) $142.79 $152.62 6.88% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.67% 10.86% 13.53% AbbVie Inc (Symbol: ABBV) 3.99% 9.03% 13.02% Sysco Corp (Symbol: SYY) 2.35% 7.74% 10.09% General Dynamics Corp (Symbol: GD) 2.00% 7.38% 9.38% Walmart Inc (Symbol: WMT) 1.57% 6.88% 8.45% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.401 $3.609 6.12% AbbVie Inc (Symbol: ABBV) $5.2 $5.64 8.46% Sysco Corp (Symbol: SYY) $1.84 $1.92 4.35% General Dynamics Corp (Symbol: GD) $4.67 $4.97 6.42% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% These five stocks are part of our full Dividend Aristocrats List. |
23017.0 | 2022-11-09 00:00:00 UTC | This Healthcare Stock Disappointed Investors. Here's Why It's Still a Buy. | ABBV | https://www.nasdaq.com/articles/this-healthcare-stock-disappointed-investors.-heres-why-its-still-a-buy. | nan | nan | AbbVie (NYSE: ABBV) shares have been one of the bright spots in the stock market this year. They're outperforming the S&P 500 index. But the stock has lost a bit of ground since AbbVie's third-quarter earnings report in late October.
The pharmaceutical company noted a slowdown in one of its key businesses -- aesthetics. And its blockbuster immunology drug Humira continued to see sales drop internationally due to biosimilar competition -- and biosimilars will hit the market in the U.S. next year.
All of this may sound grim, but there are positive elements to AbbVie's story that outweigh the negative news, and they're why I still view the stock as a buy.
The No. 1 dermal filler
First, we'll talk about the aesthetics business. AbbVie makes Juvederm, the dermal filler collection patients in the U.S. choose most. The problem is, these days, economic woes are weighing on consumers' discretionary spending, and they're spending less on filler treatments.
These treatments are more costly than AbbVie's other leading aesthetics product -- the anti-wrinkle treatment Botox. So Juvederm has felt more of an impact. In the third quarter, net revenue from Juvederm slipped by 0.6%. And AbbVie expects this pressure to continue into next year.
This is difficult right now. But it's important to remember this is a temporary situation. And AbbVie's aesthetics portfolio has what it takes to grow once consumers return to their usual spending habits. The company has maintained its U.S. market share in the toxins and fillers spaces. AbbVie still expects to reach its goal of total aesthetics sales topping $9 billion by the end of the decade.
All of this means we shouldn't be overly worried about the slowdown in the aesthetics business today.
Now, let's turn to Humira. The blockbuster's revenue fell 25% internationally in the quarter as biosimilars won market share. As mentioned above, those treatments are set to hit the U.S. market next year.
With that in mind, AbbVie hasn't yet shared Humira sales forecasts for 2023 or 2024. The company says it will offer guidance in the fourth-quarter earnings call. But Morningstar predicts Humira's U.S. sales may drop nearly 50% next year. Last year, Humira generated more than $20 billion in sales -- about 35% of AbbVie's total revenue.
A gain to compensate for a loss
It's clear a decline in Humira sales will be a big loss for AbbVie. But the company is heading for a big gain that may compensate for that over time thanks to its newer immunology drugs, Skyrizi and Rinvoq. AbbVie is commercializing them across all of Humira's indications. And so far, things are looking good.
Skyrizi has won U.S. regulatory approval in three indications so far. Rinvoq has gained six U.S. approvals. The drugs have been developed for a broad range of conditions -- from skin problems such as atopic dermatitis to inflammatory bowel disorders like Crohn's disease.
Skyrizi and Rinvoq sales together represented 15% of AbbVie's total third-quarter revenue. Combined, the drugs are set to bring in more than $7.5 billion in sales this year. This is more than AbbVie originally expected. And the two drugs are on track to eventually meet a major goal. Together, they should surpass the peak revenue of Humira.
So, AbbVie's progress with Skyrizi and Rinvoq means we should be optimistic about the future of the immunology portfolio -- even considering the inevitable decline in Humira sales.
A reasonable price
AbbVie trades for about 10 times forward earnings estimates -- down from its level of more than 12 earlier this year. That's also much lower than the average forward price-to-earnings ratio of 24 for the pharmaceutical industry, according to New York University's Stern Business School.
Yes, AbbVie is facing challenges today. But in the case of its aesthetics business, the problems are transient. And a potential slowdown in immunology sales may be temporary too. Skyrizi and Rinvoq are already spurring a new phase of growth.
AbbVie's long-term picture remains bright, and the stock price is reasonable right now. Together, these two elements suggest this stock is a great buying opportunity.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | All of this may sound grim, but there are positive elements to AbbVie's story that outweigh the negative news, and they're why I still view the stock as a buy. So, AbbVie's progress with Skyrizi and Rinvoq means we should be optimistic about the future of the immunology portfolio -- even considering the inevitable decline in Humira sales. AbbVie (NYSE: ABBV) shares have been one of the bright spots in the stock market this year. | Skyrizi and Rinvoq sales together represented 15% of AbbVie's total third-quarter revenue. AbbVie (NYSE: ABBV) shares have been one of the bright spots in the stock market this year. But the stock has lost a bit of ground since AbbVie's third-quarter earnings report in late October. | AbbVie (NYSE: ABBV) shares have been one of the bright spots in the stock market this year. Last year, Humira generated more than $20 billion in sales -- about 35% of AbbVie's total revenue. So, AbbVie's progress with Skyrizi and Rinvoq means we should be optimistic about the future of the immunology portfolio -- even considering the inevitable decline in Humira sales. | Last year, Humira generated more than $20 billion in sales -- about 35% of AbbVie's total revenue. Skyrizi and Rinvoq sales together represented 15% of AbbVie's total third-quarter revenue. AbbVie (NYSE: ABBV) shares have been one of the bright spots in the stock market this year. |
23018.0 | 2022-11-09 00:00:00 UTC | If You Like Dividends, You Should Love These 3 Stocks | ABBV | https://www.nasdaq.com/articles/if-you-like-dividends-you-should-love-these-3-stocks-3 | nan | nan | The growth stock boom of 2021 left some investors wondering if dividend stocks were still prudent holdings to drive long-term returns. Then 2022 came along and answered that concern quite clearly.
Dividend stocks are lynchpins in a diversified portfolio because of their many advantages, including:
Most dividend stocks pay shareholders quarterly. Receiving these checks can be a lifeline for retirees or help younger folks supplement their income.
Enrolling in a dividend reinvestment plan (DRIP) can be a terrific choice because it compounds earnings over time (more shares = larger dividends), and you can set it and forget it -- most reputable brokerages will do the legwork free of charge.
Using dividends to reinvest in other stocks is an excellent option for those who wish to take a more active role. That growth stock trading at a discount looks mighty tempting.
The phrase "sleep well at night" (SWAN) gets mentioned around in the investing world, but what does it really mean? A portfolio doesn't depend solely on the stock price going up when reliable dividend stocks are included in it. When the market goes south, the investor can rest a little easier knowing the portfolio still generates income while waiting for the market winds to change.
These qualities help dividend-paying stocks hold up better during a bear market. And in the current bear market, three dividend stocks -- AbbVie (NYSE: ABBV), VICI Properties (NYSE: VICI), and Texas Instruments (NASDAQ: TXN) -- are showing their worth (as seen in the chart below comparing them to the S&P 500).
TXN Total Return Level data by YCharts
1. AbbVie defies gravity
The major indices all fell into bear territory in 2022 and remain deep in negative return territory. The vast majority of individual stocks are down for the year, but AbbVie is not only up for the year but drubbing the S&P 500 by over 30 percentage points in total return. I've been on the AbbVie train for quite a while because of its ability to profit in a potential recession and because of its generous dividend yield (currently 3.8%).
AbbVie is best known for its blockbuster Humira prescription drug. While Humira no longer accounts for the majority of AbbVie's revenue, it still makes up about 36% of sales ($15.7 billion in 2022). AbbVie management knows it will need to make up for some lost revenue with competitive biosimilars coming to the U.S. market in 2023. To do this, AbbVie has several drugs in the pipeline and recently reaffirmed its guidance for $15 billion in annual sales from Rinvoq and Skyrizi by 2025. The company also has growing sales in aesthetics like Botox and neuroscience products like Vraylar gain traction.
The Humira overhang has some investors concerned and kept the stock price lower than it otherwise would be, so the dividend yields over 4%. AbbVie paid (and raised) the dividend each year since it got its start as a spinoff of Abbott Laboratories in 2013. The quarterly payout rose from $0.40 a share to $1.48 during this time.
What helps stabilize AbbVie as an investment is that pharmaceutical companies tend to be safe havens during economic turmoil because medications are generally necessities. AbbVie should be near the top of the list for those looking for a recession-resistant company with a quality dividend yield.
2. VICI's high yield and one-of-a-kind portfolio
VICI Properties is a real estate investment trust (REIT), which means it enjoys certain tax advantages in exchange for distributing 90% of its taxable income to shareholders as dividends.
VICI is unique, as its portfolio contains many of the world's premier entertainment properties, like Caesars Palace, MGM Grand, Mandalay Bay, and The Venetian in Las Vegas. Its portfolio includes 43 "trophy" properties in 15 states. These properties are iconic, which separates VICI from REITs that own office buildings or warehouses.
Some investors might wonder if the entertainment industry is a risky investment if the country is headed toward a recession. But investing in VICI is not the same as investing in the casinos themselves. In fact, VICI collected 100% of the rent on its properties even when many casinos were shuttered during worst of the pandemic in 2020. The dividend was even raised by 10.9% in 2020 and 9.1% in 2021.
VICI recently completed its acquisition of MGM Growth Properties, and the company seeks a relatively low adjusted fund from operations (AFFO) payout ratio, so it can continue to add properties strategically.
The dividend rose yearly since the REIT's creation in late 2017, going from an annual payout of $1.15 per share up to $1.44. The current yield is above 4.5%, and the stock price proved resilient this year. This stock is worthy of serious consideration for dividend-seeking investors.
3. Texas Instruments: 19 years of dividend growth
Texas Instruments does much more than make incredibly complex calculators used in math class. It is one of the world's leading semiconductor companies, providing 80,000 products to over 100,000 customers around the globe. The company operates in several markets, from industrials to automotive to personal electronics and more. Its product and market diversity are vital components to its continued success, even during a down economy.
Q3 results showed year-over-year increases in revenue (13%), operating profit (16%), and earnings per share (19%). Results like this should allow the company to continue its streak of dividend increases dating back to 2004. The dividend has grown at a compound annual growth rate (CAGR) of 25% during this time and currently yields around 3%.
With a history of fantastic cash management, even during severe recessions, Texas Instruments makes a strong case as a top dividend growth stock.
Compelling dividend opportunities
When looking for rays of sunshine in the stock market of 2022, uniquely positioned dividend stocks have shown through. These stocks are compelling dividend opportunities with excellent track records and compelling yields.
10 stocks we like better than AbbVie
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Bradley Guichard has positions in AbbVie, Texas Instruments, and VICI Properties Inc. The Motley Fool has positions in and recommends Texas Instruments. The Motley Fool recommends VICI Properties Inc. 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. | What helps stabilize AbbVie as an investment is that pharmaceutical companies tend to be safe havens during economic turmoil because medications are generally necessities. And in the current bear market, three dividend stocks -- AbbVie (NYSE: ABBV), VICI Properties (NYSE: VICI), and Texas Instruments (NASDAQ: TXN) -- are showing their worth (as seen in the chart below comparing them to the S&P 500). AbbVie defies gravity The major indices all fell into bear territory in 2022 and remain deep in negative return territory. | And in the current bear market, three dividend stocks -- AbbVie (NYSE: ABBV), VICI Properties (NYSE: VICI), and Texas Instruments (NASDAQ: TXN) -- are showing their worth (as seen in the chart below comparing them to the S&P 500). AbbVie defies gravity The major indices all fell into bear territory in 2022 and remain deep in negative return territory. The vast majority of individual stocks are down for the year, but AbbVie is not only up for the year but drubbing the S&P 500 by over 30 percentage points in total return. | And in the current bear market, three dividend stocks -- AbbVie (NYSE: ABBV), VICI Properties (NYSE: VICI), and Texas Instruments (NASDAQ: TXN) -- are showing their worth (as seen in the chart below comparing them to the S&P 500). AbbVie defies gravity The major indices all fell into bear territory in 2022 and remain deep in negative return territory. The vast majority of individual stocks are down for the year, but AbbVie is not only up for the year but drubbing the S&P 500 by over 30 percentage points in total return. | The vast majority of individual stocks are down for the year, but AbbVie is not only up for the year but drubbing the S&P 500 by over 30 percentage points in total return. And in the current bear market, three dividend stocks -- AbbVie (NYSE: ABBV), VICI Properties (NYSE: VICI), and Texas Instruments (NASDAQ: TXN) -- are showing their worth (as seen in the chart below comparing them to the S&P 500). AbbVie defies gravity The major indices all fell into bear territory in 2022 and remain deep in negative return territory. |
23019.0 | 2022-11-08 00:00:00 UTC | Investing $1,000 in the Current Market? Don't Overlook These 2 Winning Dividend Stocks | ABBV | https://www.nasdaq.com/articles/investing-%241000-in-the-current-market-dont-overlook-these-2-winning-dividend-stocks | nan | nan | Dividend stocks are rarely the lightning-growth companies that many investors seem to gravitate toward, but these types of investments certainly have an allure of their own. Whether providing additional capital that you can put back into your portfolio again and again, or increasing your total returns with time, the best dividend stocks are compelling investments that you can buy and hold for decades or even a lifetime.
Here are two such winning dividend stocks to consider adding to your portfolio ASAP.
1. Bristol-Myers Squibb
Bristol-Myers Squibb (NYSE: BMY) may not come to mind as a first-tier pharmaceutical maker, but that doesn't mean you should overlook this top dividend payer.
Bristol-Myers Squibb currently yields about 2.7%, above the 2% average for stocks on the S&P 500. Over the trailing-five-year period, the company has increased its dividend by 35%, while its yield has risen by nearly 9%. It's also worth noting that the stock has delivered a total return of 48% in the trailing-five-year period, behind the S&P 500's trailing-five-year return of about 60%.
The company has built a strong track record of revenue growth and profits on the foundation of a diverse portfolio of products including treatments in immunology, oncology, cardiology, and neurology. Many of these have been developed in-house.
Other medicines have been obtained through a series of well-chosen moves, including its 2019 acquisition of cancer and immunology drugmaker Celgene and a deal for the clinical-stage precision oncology company Turning Point earlier this year. Bristol-Myers Squibb's pipeline contains a robust lineup of more than 50 treatments targeting more than 35 diseases.
Mature businesses like Bristol-Myers aren't known for quarterly reports supercharged with dazzling levels of growth. Instead, it's one of the companies making the medicines that are constantly in demand. Such businesses are noncyclical, which translates into stable balance sheets and more-moderate shareholder gains.
In the most recent quarter, the strength of the U.S. dollar and loss of patent exclusivity for a few core products meant that Bristol-Myers's total revenue of $11.2 billion (nothing to sneeze at by any means) represented a decline of 3% from a year earlier. But on a currency-neutral basis, revenue from its in-line and new products actually increased 8%.
Moreover, revenue generated in the U.S. jumped 9% year over year. The company also reported net income of $1.6 billion, a 7% increase from one year ago.
Over the past decade, the company has increased its annual revenue and net income by 163% and 257%, respectively. The healthcare giant's incredible dividend history -- and highly profitable portfolio of products -- make it a no-brainer contender that long-term investors should consider for their list of potential buys to hold for many years to come.
At its current share price of about $79, a $1,000 investment in Bristol-Myers Squibb would give you about 13 shares.
2. AbbVie
AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. Even though the company was formed in 2013, its spinoff from long-standing dividend payer Abbott Laboratories meant that it inherited that company's dividend history.
Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. The stock yields 4.1% for investors based on current share prices, roughly twice that of the average stock in the S&P 500.
It also has delivered a total return of more than 540% since its spinoff, compared to the S&P 500's total return of 220% in the same period.
Like Bristol-Myers, AbbVie has an extensive portfolio of drugs in many different disciplines, including virology, oncology, and immunology. Its 2020 acquisition of Allergan also added Botox to its portfolio, as well as eye medications like Lumigan for glaucoma and the dry-eye treatment Restastis.
Since AbbVie became a stand-alone company in 2013, it has increased annual revenue by nearly 206% and its net income by almost 119%.
In the most recent quarter, the company reported total revenue of $14.8 billion, a 3% increase year over year. This was driven by revenue increases of 15%, 7%, and 4%, respectively, from its immunology, neuroscience, and aesthetics portfolios. Meanwhile, AbbVie's net earnings of about $4 billion represented a jump of 24% from the same quarter last year.
Income-seeking investors will also be glad to learn that management just announced a 5% increase for AbbVie's 2023 dividend, beginning with its payout in February.
At its current share price of $148, a $1,000 investment in AbbVie would give you about seven shares.
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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 AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. Like Bristol-Myers, AbbVie has an extensive portfolio of drugs in many different disciplines, including virology, oncology, and immunology. | AbbVie AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. Like Bristol-Myers, AbbVie has an extensive portfolio of drugs in many different disciplines, including virology, oncology, and immunology. | AbbVie AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. Like Bristol-Myers, AbbVie has an extensive portfolio of drugs in many different disciplines, including virology, oncology, and immunology. | Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. AbbVie AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. Like Bristol-Myers, AbbVie has an extensive portfolio of drugs in many different disciplines, including virology, oncology, and immunology. |
23020.0 | 2022-11-08 00:00:00 UTC | These 3 Dividend ETFs Are a Retiree's Best Friend | ABBV | https://www.nasdaq.com/articles/these-3-dividend-etfs-are-a-retirees-best-friend-8 | nan | nan | Dividend exchange-traded funds (ETFs) give income-focused investors an attractive alternative to bonds or stocks, particularly during periods when the latter two are struggling.
Most dividend ETFs invest in a variety of dividend-paying stocks, and many of the most popular ETFs track blue-chip companies with solid dividends and safe payout ratios. It's a way to give investors a little less risk while offering a regular income stream, something that concerns many retirees.
Not all dividend ETFs are created equal. It's important that investors look at volatility, because too much volatility equals risk. It's also crucial to examine the expense ratio of the ETFs, because a fund with an excessively high management expense ratio (MER) can easily eat into profits. Generally, though, dividend ETFs have lower MERs than dividend-focused mutual funds because there is less turnover among the holdings in a typical ETF.
Dividend-focused ETFs also provide more safety than just buying stocks in high-dividend-paying companies, which can become yield traps. An individual stock can cut its dividend, the stock will then likely fall even further, and the investor is stuck. However, with a dividend ETF, even if one of the holdings struggles or cuts its dividend, the effect is diluted by the breadth of holdings in the EFT.
The S&P 500 index is down more than 20% so far this year, with an average dividend yield of 1.82%. These three dividend ETFs have outperformed the S&P 500 so far this year, both in share appreciation and in 12-month yield.
Keeping an eye on high dividends
The iShares Core High Dividend ETF (NYSEMKT: HDV) pays a quarterly dividend of $1.231, offering a current yield of 3.97%. It has delivered a total return so far this year of 3.17% and has a three-year total return of 20.35%. Its MER of 0.08% is lower than most ETFs.
The fund attempts to track the Morningstar Dividend Yield Focus Index of equities that pay a relatively high dividend. The fund's 75 equities have significant economic moats that might set them apart from competitors. Its top five holdings include ExxonMobil, Chevron, AbbVie, Verizon, and Merck.
The fund weighs its stocks by total dollar amount of the dividends paid instead of yield. This means it weighs heavily toward large-cap stocks.
RDIV Total Return Price data by YCharts.
Seeking a little less volatility
The TrueShares Low Volatility Equity Income ETF (NYSEMKT: DIVZ) has a total return of 1.51% so far this year and a three-year total return of 21.56%. The fund focuses on a limited number of stocks, between 25 and 35 (it currently holds 32 equities), and they are screened for attractive valuations, high cash flow, consistent revenue streams, and, of course, dividends. The goal is to find companies with lower volatility than the rest of the market.
Its quarterly dividend went up 23% last quarter to $0.25 and offers a current yield of 3.51%. The one downside is a relatively high MER of 0.65% that comes with the fund being actively managed rather tracking an index.
The fund's top five holdings include ExxonMobil, UnitedHealth Group, First American Financial, Genuine Parts Co., and Lockheed Martin.
Looking more at the long term
The Invesco S&P Ultra Dividend Revenue ETF (NYSEMKT: RDIV) is the top-performing ETF of these three over the past three years, with a total return of 26.31%, and so far this year, its total return is 1.84%.
The fund, which has a low MER of 0.39%, is based on the S&P 900 Dividend Revenue-Weighted Index and invests at least 90% of its assets in equities that are in the index. The fund takes the index, excludes the top 5% of the stocks by yield and the top 5% of stocks in each sector by dividend payout ratio, then picks the top 60 stocks by dividend yield, weighing them by revenue. The fund and index are rebalanced quarterly according to yields and revenue.
The fund's top five holdings include Best Buy, Phillips 66, Chevron, ExxonMobil, and Walgreens Boots Alliance.
The funds raised its dividend by 5.6% in the last quarter to $0.3696 per share, giving it a yield of about 3.37%.
Let someone else do the work
The advantage of dividend ETFs over just buying, say, Dividend Aristocrats, is ETFs have a built-in diversification that owning a handful of blue chips can't give you. Plus, these ETFs are rebalanced frequently, so you don't have to pay attention as much as if you were solely in individual equities.
The downside is, over the long haul, these ETFs are less likely to have as much growth as the S&P 500. However, in times of economic uncertainty, they are nice, conservative hedges with significantly fewer downsides, ideal for retirees.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Best Buy and Merck & Co. The Motley Fool recommends Lockheed Martin, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its top five holdings include ExxonMobil, Chevron, AbbVie, Verizon, and Merck. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jim Halley has positions in AbbVie. Dividend exchange-traded funds (ETFs) give income-focused investors an attractive alternative to bonds or stocks, particularly during periods when the latter two are struggling. | Its top five holdings include ExxonMobil, Chevron, AbbVie, Verizon, and Merck. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jim Halley has positions in AbbVie. Keeping an eye on high dividends The iShares Core High Dividend ETF (NYSEMKT: HDV) pays a quarterly dividend of $1.231, offering a current yield of 3.97%. | Its top five holdings include ExxonMobil, Chevron, AbbVie, Verizon, and Merck. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jim Halley has positions in AbbVie. Most dividend ETFs invest in a variety of dividend-paying stocks, and many of the most popular ETFs track blue-chip companies with solid dividends and safe payout ratios. | Its top five holdings include ExxonMobil, Chevron, AbbVie, Verizon, and Merck. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jim Halley has positions in AbbVie. The fund takes the index, excludes the top 5% of the stocks by yield and the top 5% of stocks in each sector by dividend payout ratio, then picks the top 60 stocks by dividend yield, weighing them by revenue. |
23021.0 | 2022-11-08 00:00:00 UTC | The 7 Best Pharma Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/the-7-best-pharma-stocks-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the pandemic years in the rearview mirror, some of the best pharma stocks should continue to perform well. For one, by 2030, the pharma industry could be worth nearly $1.6 trillion, according to Acumen Research and Consulting. Two, the best pharma stocks are still ranked as some of the safest, recession-resistant investments to own. After all, we can’t stop people from aging. Three, we can’t forget about secular tailwinds, such as population aging and growth. In fact, according to the Population Reference Bureau, the number of Americans aged 65 and older will likely double to 95 million by 2060. As this number continues to grow, we’ll see a need for more medication and treatment options. All of which will result in a bright future for pharmaceutical companies. That being said, let’s take a quick look at some of the biggest, and best pharma stocks to buy now.
PFE Pfizer $47.43
MRNA Moderna $169.49
ABBV AbbVie $149.29
JNJ Johnson & Johnson $174.04
LLY Eli Lilly $367.68
BNTX BioNTech $160.93
BMY Bristol-Myers Squibb $80.57
Pfizer (PFE)
Source: Billion Photos / Shutterstock
Covid-19 vaccines have been good to pharmaceutical giant Pfizer (NYSE:PFE). In fact, those vaccines helped the company report better-than-expected third-quarter earnings and raise guidance for the year. For the quarter, the company posted an EPS of $1.78, as compared to the $1.39 expected by analysts. Revenues were up to $22.6 billion, as compared to expectations of $21 billion.
Pfizer said it now expects earnings per share of $6.40 to $6.50 for all of 2022, up from a previous forecast of $6.30 to $6.45. The company also raised its sales guidance, saying it expects full-year revenues of $99.5 billion to $102 billion. Driving the improved outlook is the company’s COVID-19 vaccine, which it expects to generate $34 billion in sales this year. That’s up $2 billion from an earlier estimate.
The upbeat guidance came days after Pfizer announced plans to quadruple the price of its COVID-19 vaccine to between $110 and $130 per dose once the U.S. government’s current purchase program expires. The price increase should drive revenue and earnings even higher moving forward. Pfizer’s stock is down 17% this year and trading at $46.80 per share, offering a nice entry point to investors.
Moderna (MRNA)
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While Moderna (NASDAQ:MRNA) had a rocky year, investors seem to be piling back into the name. Between Jan. and Nov., the stock fell from about $232.20 to a low of about $120. However, the stock has managed to recover to about $168.81 in recent weeks. That, despite missing earnings expectations on the top and bottom lines. The company also lowered its sales outlook, saying it expects $18 billion to $19 billion in revenue from its Covid-19 vaccine this year, down from an earlier estimate of $21 billion.
Analysts and investors seem to be responding positively to Moderna’s pipeline of drug candidates, many of which are being developed with other pharma companies. These include a vaccine against the Zika virus and cancer treatment.
AbbVie (ABBV)
Source: Dmitry Kalinovsky / Shutterstock.com
Another one of the best pharma stocks is AbbVie (NYSE:ABBV). Since Jan., the stock rose from about $125 a share to a high of about $170, before backing off to $149.22. All as the company continues to benefit from sales of several blockbuster medications, primarily Humira which is used to treat rheumatoid arthritis. Other medications such as Skyrizi and Rinvoq that are used to treat psoriasis and arthritis also continue to sell well for the company. The stock’s 3.99% dividend yield also makes it popular with investors.
AbbVie’s most recent earnings missed the mark due to a dip in sales of the Chicago-based company’s normally popular aesthetic drugs such as Botox. The medical aesthetics division saw Q3 sales decline 7% as inflation led Americans to spend less on discretionary cosmetic procedures. The company characterized the sales decline as a “temporary headwind.” And while the impending loss of Humira’s patent protection continues to loom over AbbVie, investors seem happy to kick that can down the street.
Johnson & Johnson (JNJ)
Source: shutterstock.com/Champhei
Johnson & Jonson (NYSE:JNJ) is acquiring heart pump maker Abiomed for $16.6 billion. Once completed, the acquisition will help to boost growth at JNJ’s medical devices unit. The Abiomed purchase comes a year before Johnson & Johnson plans to spin off its consumer health business which includes popular products such as Tylenol and Aveeno skin moisturizer. With the consumer health spinoff expected by Nov. 2023, Johnson & Johnson is focusing on building its pharmaceuticals and medical device unit. Not that the pharma and devices business is not already robust. Most recently, the company reported Q3 earnings of $2.55 a share on revenues of $23.8 billion. That beat analyst calls for earnings of $2.48 a share on revenue of $23.4 billion.
Eli Lilly (LLY)
Source: Hernan E. Schmidt / Shutterstock.com
One of the oldest, and best pharma stocks on the market is Eli Lilly (NYSE:LLY). Founded by Civil War veteran, Col. Eli Lilly in May 1876, the company has become well known for its blockbuster drugs such as Prozac which is used to treat depression, as well as Cialis for erectile dysfunction. Those medications, and others, have powered Eli Lilly to annual sales of nearly $30 billion.
Like many of the other stocks on this list, shares of Eli Lilly are up big this year. Since Jan., LLY stock has gained 35% to now change hands at $367.95 a share. A good chunk of that comes courtesy of expectations for the company’s obesity drug, Tirzepatide, which some analysts say could be the biggest-selling drug ever produced. While not yet commercially available, Tirzepatide has been given Fast Track designation by the U.S. FDA. When and if, approved it could help the more than two billion adults worldwide considered overweight or obese.
BioNTech (BNTX)
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BioNTech (NASDAQ:BNTX) is a German pharmaceutical company that partnered with Pfizer in the development of a Covid-19 vaccine. The Covid partnership has been extremely lucrative to BioNTech, which is otherwise known for developing medications to treat cancers and rare diseases. BNTX stock soared nearly 250% on the Nasdaq exchange during the pandemic, lifting the company’s market capitalization to more than $25 billion.
BNTX stock has come down 30% this year to trade at $160 a share. However, the stock remains up more than 1,000% in the past five years. And while sales of the Pfizer-BioNTech Covid-19 vaccine are starting to slow, the two companies are continuing to collaborate together, most notably on a new vaccine against influenza (flu) that utilizes messenger RNA (mRNA) technology that many industry observers see as the future of medicine.
Bristol-Myers Squibb (BMY)
Source: Shutterstock
New York City-based Bristol-Myers Squibb (NYSE:BMY) is another pharma stock that has ripped higher this year. So far in 2022, BMY stock has risen 30% to just over $80 a share. As with the other pharma companies listed here, Bristol-Myers Squibb has approved blockbuster drugs such as blood thinner Eliquis and the cancer drug Opdivo in its stable of products.
At the same time, Bristol-Myers Squibb also has a robust pipeline of drug candidates. The company currently has several new clinical trials underway, including many potential new cancer treatments. If all that weren’t enough, Bristol-Myers Squibb has also hiked its annual dividend for 13 consecutive years now. The company’s quarterly dividend payout has increased nearly 40% in the past five years and now yields 2.7% or a quarterly payment of 54 cents.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post The 7 Best Pharma Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company characterized the sales decline as a “temporary headwind.” And while the impending loss of Humira’s patent protection continues to loom over AbbVie, investors seem happy to kick that can down the street. PFE Pfizer $47.43 MRNA Moderna $169.49 ABBV AbbVie $149.29 JNJ Johnson & Johnson $174.04 LLY Eli Lilly $367.68 BNTX BioNTech $160.93 BMY Bristol-Myers Squibb $80.57 Pfizer (PFE) Source: Billion Photos / Shutterstock Covid-19 vaccines have been good to pharmaceutical giant Pfizer (NYSE:PFE). AbbVie (ABBV) Source: Dmitry Kalinovsky / Shutterstock.com Another one of the best pharma stocks is AbbVie (NYSE:ABBV). | PFE Pfizer $47.43 MRNA Moderna $169.49 ABBV AbbVie $149.29 JNJ Johnson & Johnson $174.04 LLY Eli Lilly $367.68 BNTX BioNTech $160.93 BMY Bristol-Myers Squibb $80.57 Pfizer (PFE) Source: Billion Photos / Shutterstock Covid-19 vaccines have been good to pharmaceutical giant Pfizer (NYSE:PFE). AbbVie (ABBV) Source: Dmitry Kalinovsky / Shutterstock.com Another one of the best pharma stocks is AbbVie (NYSE:ABBV). AbbVie’s most recent earnings missed the mark due to a dip in sales of the Chicago-based company’s normally popular aesthetic drugs such as Botox. | PFE Pfizer $47.43 MRNA Moderna $169.49 ABBV AbbVie $149.29 JNJ Johnson & Johnson $174.04 LLY Eli Lilly $367.68 BNTX BioNTech $160.93 BMY Bristol-Myers Squibb $80.57 Pfizer (PFE) Source: Billion Photos / Shutterstock Covid-19 vaccines have been good to pharmaceutical giant Pfizer (NYSE:PFE). AbbVie (ABBV) Source: Dmitry Kalinovsky / Shutterstock.com Another one of the best pharma stocks is AbbVie (NYSE:ABBV). AbbVie’s most recent earnings missed the mark due to a dip in sales of the Chicago-based company’s normally popular aesthetic drugs such as Botox. | PFE Pfizer $47.43 MRNA Moderna $169.49 ABBV AbbVie $149.29 JNJ Johnson & Johnson $174.04 LLY Eli Lilly $367.68 BNTX BioNTech $160.93 BMY Bristol-Myers Squibb $80.57 Pfizer (PFE) Source: Billion Photos / Shutterstock Covid-19 vaccines have been good to pharmaceutical giant Pfizer (NYSE:PFE). AbbVie (ABBV) Source: Dmitry Kalinovsky / Shutterstock.com Another one of the best pharma stocks is AbbVie (NYSE:ABBV). AbbVie’s most recent earnings missed the mark due to a dip in sales of the Chicago-based company’s normally popular aesthetic drugs such as Botox. |
23022.0 | 2022-11-07 00:00:00 UTC | AbbVie : Phase 2 Trial Of AGN-151607 In POAF In Cardiac Surgery Patients Fails To Meet Main Goal | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-phase-2-trial-of-agn-151607-in-poaf-in-cardiac-surgery-patients-fails-to-meet | nan | nan | (RTTNews) - AbbVie (ABBV) announced results from its exploratory NOVA phase 2 dose-ranging study evaluating the efficacy and safety of AGN-151607, a novel investigational neurotoxin for the prevention of postoperative atrial fibrillation in cardiac surgery patients. The primary endpoint of evaluating the occurrence of continuous atrial fibrillation greater than or equal to 30 seconds was not met for the modified intent-to-treat population; however, the data showed relative risk reduction in specific study populations, such as coronary artery bypass graft patients and patients aged 65 years and older.
Postoperative atrial fibrillation is the most common complication following cardiac surgery, leading to increased morbidity, mortality, increased length of hospital stay, healthcare utilization, and cost.
In the Study, relative risk reduction was seen in certain subgroups; specifically, pre-specified coronary artery bypass graft patients treated with 125 units of AGN-151607 received the greatest benefit with 29 percent relative risk reduction compared to placebo, the company said.
In a post hoc analysis of coronary artery bypass graft patients aged 65 years and older treated with 125 units of AGN-151607, the study found a greater risk reduction at 51 percent compared to placebo.
Regarding rehospitalization within 30 days following discharge, patients treated with 125 units had lower rates of all-cause rehospitalization within 30 days compared to placebo. In addition, at the time of this analysis, more patients on 125 units (62.9%) were atrial fibrillation-free and anticoagulation-free versus placebo (45.1%).
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 results from its exploratory NOVA phase 2 dose-ranging study evaluating the efficacy and safety of AGN-151607, a novel investigational neurotoxin for the prevention of postoperative atrial fibrillation in cardiac surgery patients. The primary endpoint of evaluating the occurrence of continuous atrial fibrillation greater than or equal to 30 seconds was not met for the modified intent-to-treat population; however, the data showed relative risk reduction in specific study populations, such as coronary artery bypass graft patients and patients aged 65 years and older. In a post hoc analysis of coronary artery bypass graft patients aged 65 years and older treated with 125 units of AGN-151607, the study found a greater risk reduction at 51 percent compared to placebo. | (RTTNews) - AbbVie (ABBV) announced results from its exploratory NOVA phase 2 dose-ranging study evaluating the efficacy and safety of AGN-151607, a novel investigational neurotoxin for the prevention of postoperative atrial fibrillation in cardiac surgery patients. The primary endpoint of evaluating the occurrence of continuous atrial fibrillation greater than or equal to 30 seconds was not met for the modified intent-to-treat population; however, the data showed relative risk reduction in specific study populations, such as coronary artery bypass graft patients and patients aged 65 years and older. In the Study, relative risk reduction was seen in certain subgroups; specifically, pre-specified coronary artery bypass graft patients treated with 125 units of AGN-151607 received the greatest benefit with 29 percent relative risk reduction compared to placebo, the company said. | (RTTNews) - AbbVie (ABBV) announced results from its exploratory NOVA phase 2 dose-ranging study evaluating the efficacy and safety of AGN-151607, a novel investigational neurotoxin for the prevention of postoperative atrial fibrillation in cardiac surgery patients. The primary endpoint of evaluating the occurrence of continuous atrial fibrillation greater than or equal to 30 seconds was not met for the modified intent-to-treat population; however, the data showed relative risk reduction in specific study populations, such as coronary artery bypass graft patients and patients aged 65 years and older. In the Study, relative risk reduction was seen in certain subgroups; specifically, pre-specified coronary artery bypass graft patients treated with 125 units of AGN-151607 received the greatest benefit with 29 percent relative risk reduction compared to placebo, the company said. | (RTTNews) - AbbVie (ABBV) announced results from its exploratory NOVA phase 2 dose-ranging study evaluating the efficacy and safety of AGN-151607, a novel investigational neurotoxin for the prevention of postoperative atrial fibrillation in cardiac surgery patients. Postoperative atrial fibrillation is the most common complication following cardiac surgery, leading to increased morbidity, mortality, increased length of hospital stay, healthcare utilization, and cost. In a post hoc analysis of coronary artery bypass graft patients aged 65 years and older treated with 125 units of AGN-151607, the study found a greater risk reduction at 51 percent compared to placebo. |
23023.0 | 2022-11-05 00:00:00 UTC | 3 Reasons to Buy AbbVie Stock Right Now | ABBV | https://www.nasdaq.com/articles/3-reasons-to-buy-abbvie-stock-right-now | nan | nan | Despite the market downturn, pharma giant AbbVie (NYSE: ABBV) has performed well this year. The company's shares are up 8% in the past 10 months, easily beating the broader market. But can AbbVie maintain this pace? One of the bears' favorite arguments is that the healthcare company will lose U.S. patent exclusivity for Humira, its best-selling drug, next year.
That could be catastrophic for AbbVie as Humira has been its most important asset since it spun off from its former parent company, Abbott Laboratories, back in 2013. But despite this risk, there are excellent reasons to be bullish on AbbVie. Let's consider three of them.
ABBV data by YCharts.
1. Passing of the torch
AbbVie has tried to plan for the inevitable Humira patent cliff by pulling several moves. The company's blockbuster 2020 acquisition of Allergan was one of these moves. It allowed AbbVie to expand both its lineup and pipeline. Another important part of AbbVie's strategy to replace Humira has been the rest of the company's immunology lineup: Skyrizi and Rinvoq.
Between them, these two medicines treat many of the same conditions Humira targets. Their sales continue to grow rapidly, and AbbVie's CEO, Rick Gonzalez, recently made a bold prediction: "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."
Exceeding Humira's peak sales would be a big deal. It is the most lucrative drug in the history of the industry. Last year, Humira achieved $20.7 billion in annual sales, its highest total ever for a single year. Skyrizi and Rinvoq don't seem close to that total, at least not yet. In the first nine months of the year, they generated a combined $5.3 billion in sales.
However, they have continued to earn label expansions and will probably win more. That will help them improve their sales. If these two products continue on the trajectory they have shown in the past few years -- and approach or exceed Humira's peak sales as Gonzalez predicts -- investors have little to fear from Humira's patent cliff.
2. Dividends matter
Counting its time spent under the wing of Abbott Laboratories, AbbVie is a Dividend King. It has raised its payouts for 50 consecutive years. In fact, the company recently announced a 5% dividend increase. AbbVie's cash payout ratio of 43% shows that it generates more than enough free cash flow to cover its current dividend and be able to afford even more increases.
Further, AbbVie offers a highly competitive yield of 4.03%, which is more than twice the S&P 500's average of 1.82%. Reliable, dividend-paying companies can help investors get through severe downturns or economic troubles. They can be a good source of passive income and smooth out market losses. AbbVie is a great option to consider for income-seeking investors.
3. So does valuation
Although AbbVie is flying high right now, the company remains reasonably valued. AbbVie's forward price-to-earnings ratio currently stands at 10.6, compared to 18.6 and 13.8 for the S&P 500 and the pharmaceutical industry, respectively. Although a low valuation can sometimes signal that a company's prospects aren't too bright, that's not the case for AbbVie.
The company is well on its way to replacing Humira thanks to Skyrizi, Rinvoq, and the products it got through the Allergan acquisition, including its Botox franchise. In other words, AbbVie isn't a value trap.
Buy and forget
There is much more to love about AbbVie. The company has a rich pipeline and will continue to earn approval for brand-new products. As a drugmaker, its products are must-haves for its clients, which makes it likely to get through challenging economic times with its business relatively unscathed.
And last but not least, long-term trends will only favor companies like AbbVie. With an aging population, we will need more innovative medicines in the future. All these factors, combined with AbbVie's dividend and a reasonable valuation, make it an ideal stock for investors to hold on to for a while.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another important part of AbbVie's strategy to replace Humira has been the rest of the company's immunology lineup: Skyrizi and Rinvoq. Their sales continue to grow rapidly, and AbbVie's CEO, Rick Gonzalez, recently made a bold prediction: "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." Despite the market downturn, pharma giant AbbVie (NYSE: ABBV) has performed well this year. | All these factors, combined with AbbVie's dividend and a reasonable valuation, make it an ideal stock for investors to hold on to for a while. Despite the market downturn, pharma giant AbbVie (NYSE: ABBV) has performed well this year. But can AbbVie maintain this pace? | Another important part of AbbVie's strategy to replace Humira has been the rest of the company's immunology lineup: Skyrizi and Rinvoq. Their sales continue to grow rapidly, and AbbVie's CEO, Rick Gonzalez, recently made a bold prediction: "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." Despite the market downturn, pharma giant AbbVie (NYSE: ABBV) has performed well this year. | All these factors, combined with AbbVie's dividend and a reasonable valuation, make it an ideal stock for investors to hold on to for a while. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Despite the market downturn, pharma giant AbbVie (NYSE: ABBV) has performed well this year. |
23024.0 | 2022-11-04 00:00:00 UTC | 3 Dividend Kings Crushing the S&P 500 in 2022 | ABBV | https://www.nasdaq.com/articles/3-dividend-kings-crushing-the-sp-500-in-2022 | nan | nan | Income investors love to target Dividend Aristocrats, companies that have increased their dividend payouts for a minimum of 25 consecutive years.
However, a step above is the elite Dividend Kings group, companies with at least 50 consecutive years of increased dividend payouts.
Clearly, companies in the Dividend King club carry well-established and successful business operations, displayed by their commendable commitment to shareholders over decades of increased payouts.
And several of them have outperformed the S&P 500 by a fair margin in 2022, including AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ. This is shown in the chart below.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each one for those interested in building up a cash pile.
Johnson & Johnson
Headquartered in New Jersey, Johnson & Johnson is an American multinational corporation that develops medical devices, pharmaceuticals, and consumer packaged goods.
JNJ’s annual dividend yield comes in at a solid 2.7%, notably higher than its Zacks Medical sector average.
Further, the company carries a sustainable 45% payout ratio paired with a 6% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Johnson & Johnson’s earnings streak is more than impressive; the company has exceeded the Zacks Consensus EPS Estimate in each quarter dating back to 2012.
Just in its latest print, JNJ registered a 2.4% EPS beat paired with a 2.2% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Sysco Corp.
Sysco markets and distributes a range of food and related products primarily to the food service or food-away-from-home industry.
SYY’s 2.4% annual dividend yield is a few ticks below its Zacks Consumer Staples sector average of 2.8%. Still, the company’s 8.3% five-year annualized dividend growth rate helps to pick up the slack by a fair margin.
Image Source: Zacks Investment Research
It’s hard to ignore SYY’s growth profile; earnings are forecasted to climb more than 25% in its current fiscal year (FY23) and a further 12.5% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 11.3% and 4.3% for FY22 and FY23, respectively.
Image Source: Zacks Investment Research
SYY shares trade at a 19.4X forward earnings multiple, nicely beneath its 21.7X five-year median and a fraction of 2021 highs of 65.4X.
The company sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
AbbVie
AbbVie, a global research-based biopharmaceutical company that delivers innovative medicines, became a top pharma company following its acquisition of Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020.
ABBV’s annual dividend yield comes in at a steep 3.9%, paired with an impressive 14% five-year annualized dividend growth rate. The company pays out 41% of its earnings.
Image Source: Zacks Investment Research
Shares trade at a 10.4X forward earnings multiple, above the 9.5X five-year median but representing a 53% discount relative to its Zacks Medical sector.
The company carries a Value Style Score of a B.
Image Source: Zacks Investment Research
Bottom Line
Targeting dividend-paying stocks is an excellent strategy that investors can deploy.
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all three stocks above – AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ – are Dividend Kings, upping their dividend payouts for a minimum of 50 consecutive years.
For those seeking a reliable income stream, all three deserve serious consideration.
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. | And several of them have outperformed the S&P 500 by a fair margin in 2022, including AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ. Image Source: Zacks Investment Research AbbVie AbbVie, a global research-based biopharmaceutical company that delivers innovative medicines, became a top pharma company following its acquisition of Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. ABBV’s annual dividend yield comes in at a steep 3.9%, paired with an impressive 14% five-year annualized dividend growth rate. | And all three stocks above – AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ – are Dividend Kings, upping their dividend payouts for a minimum of 50 consecutive years. And several of them have outperformed the S&P 500 by a fair margin in 2022, including AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ. Image Source: Zacks Investment Research AbbVie AbbVie, a global research-based biopharmaceutical company that delivers innovative medicines, became a top pharma company following its acquisition of Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Image Source: Zacks Investment Research AbbVie AbbVie, a global research-based biopharmaceutical company that delivers innovative medicines, became a top pharma company following its acquisition of Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. And all three stocks above – AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ – are Dividend Kings, upping their dividend payouts for a minimum of 50 consecutive years. And several of them have outperformed the S&P 500 by a fair margin in 2022, including AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ. | And all three stocks above – AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ – are Dividend Kings, upping their dividend payouts for a minimum of 50 consecutive years. And several of them have outperformed the S&P 500 by a fair margin in 2022, including AbbVie ABBV, Sysco Corp. SYY, and Johnson & Johnson JNJ. Image Source: Zacks Investment Research AbbVie AbbVie, a global research-based biopharmaceutical company that delivers innovative medicines, became a top pharma company following its acquisition of Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. |
23025.0 | 2022-11-04 00:00:00 UTC | Ironwood's (IRWD) Q3 Earnings Beat, Linzess Volume Grows | ABBV | https://www.nasdaq.com/articles/ironwoods-irwd-q3-earnings-beat-linzess-volume-grows | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported adjusted earnings of 28 cents per share in third-quarter 2022, beating the Zacks Consensus Estimate of 27 cents. The company reported adjusted earnings of 33 cents per share in the year-ago quarter.
Total revenues of $109 million missed the Zacks Consensus Estimate of $112 million. Revenues were up 4.7% year over year.
Shares of Ironwood were up 3.7% during market hours, following the third-quarter results. However, the company’s shares have declined 2.6% this year compared with the industry’s fall of 30.5%.
Image Source: Zacks Investment Research
Quarter in Detail
As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $261.13 million in the United States, up 3.4% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses.
Ironwood's share of net profits from the sales of Linzess in the United States (included in collaborative revenues) was $105.2 million in the third quarter, up 5% year over year.
The performance can be attributed to a massive acceleration in new prescription volume. In the reported quarter, the new prescription share reached 38% and new-to-brand volume increased 9% year-over-year.
The company recorded $3.4 million in royalties and other revenues compared with $3.3 million in the year-ago quarter.
Ironwood has agreements with two partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively. Ironwood records royalties on sales of Linzess from Astellas and AstraZeneca in their respective territories.
Selling, general and administrative expenses were up 3.2% year over year to $28.6 million during the third quarter. Research & development expenses rose 5.8% year over year to $11.6 million.
2022 Guidance Maintained
Ironwood maintained its previously-issued guidance for 2022. The company expects its total revenues to be between $420 million and $430 million. It expects U.S. sales of Linzess to increase in low single-digit percentage points.
The company expects adjusted EBITDA to be more than $250 million for the year.
Pipeline Updates
Ironwood and AbbVie are currently developing their linaclotide clinical program for pediatric patients.
Ironwood reported positive top-line data from the phase III study evaluating 72 mcg of Lizness in pediatric patients between the ages of six to 17 with functional constipation (“FC”). Ironwood and its partner AbbVie intend to submit a supplemental new drug application (sNDA) to the FDA by the end of 2022. FC currently has no FDA-approved therapies for children.
Ironwood’s two early-stage studies are are ongoing on its pipeline candidates — IW-3300 and CNP-104 — for treating visceral pain conditions and primary biliary cholangitis, respectively.
Ironwood Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Ironwood Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank & Stock to Consider
Currently, Ironwood carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same sector is Neurocrine Biosciences NBIX, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Neurocrine’s earnings estimates for 2022 have improved from $1.73 to $1.80 in the past 30 days. Shares of NBIX have returned 43.3% year to date. Earnings of NBIX missed earnings estimates in all the last four quarters. NBIX delivered a negative earnings surprise of 80.17%, 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 >>
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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 Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $261.13 million in the United States, up 3.4% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. Pipeline Updates Ironwood and AbbVie are currently developing their linaclotide clinical program for pediatric patients. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $261.13 million in the United States, up 3.4% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. Pipeline Updates Ironwood and AbbVie are currently developing their linaclotide clinical program for pediatric patients. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $261.13 million in the United States, up 3.4% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. Pipeline Updates Ironwood and AbbVie are currently developing their linaclotide clinical program for pediatric patients. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $261.13 million in the United States, up 3.4% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. Pipeline Updates Ironwood and AbbVie are currently developing their linaclotide clinical program for pediatric patients. |
23026.0 | 2022-11-04 00:00:00 UTC | Amgen (AMGN) Beats on Q3 Earnings & Sales, Tweaks 2022 View | ABBV | https://www.nasdaq.com/articles/amgen-amgn-beats-on-q3-earnings-sales-tweaks-2022-view | nan | nan | Amgen AMGN reported third-quarter 2022 earnings of $4.70 per share, which beat the Zacks Consensus Estimate of $4.43 as well as our estimate of $4.37 per share. Earnings rose 15% year over year. Lower operating expenses and share count boosted earnings in the quarter.
Total revenues of $6.65 billion also beat the Zacks Consensus Estimate of $6.57 billion as well as our estimate of $6.61 billion. Total revenues declined 1% year over year due to lower product sales.
Total product revenues declined 1% from the year-ago quarter to $6.32 billion (U.S.: $4.46 billion; ex-U.S.: $1.77 billion). Higher volumes were offset by lower selling prices of several drugs and currency headwinds. Volumes rose 8% in the quarter, offset by a 5% lower net selling price. Foreign exchange movement hurt sales by 2% in the quarter.
Other revenues were $415 million in the quarter, up 7.5% year over year.
Amgen’s stock has risen 18.2% this year so far against a decline of 22.2% for the industry.
Image Source: Zacks Investment Research
Performance of Key Drugs
General Medicine
Prolia revenues came in at $862 million, up 7% from the year-ago quarter, driven by volume growth. Prolia sales missed our estimates of $917.7 million.
Evenity recorded sales of $201 million in the quarter, up 35% year over year, driven by strong volume growth.
Repatha generated revenues of $309 million, up 14% year over year, as higher volume was partially offset by lower prices. Increased rebates to support broad Medicare Part D and commercial patient access in the United States and the inclusion of Repatha on China’s National Reimbursement Drug List led to lower prices in the quarter. Repatha sales missed our estimates of $321.1 million.
Aimovig recorded sales of $107 million in the quarter, up 35% year over year due to higher net selling price and favorable changes to estimated sales deductions, which offset a decline in volume.
Hematology-Oncology
Xgeva delivered revenues of $495 million, down 4% from the year-ago quarter due to lower volumes and inventory levels and currency headwinds. Xgeva sales significantly missed our estimates of $545.0 million.
Kyprolis recorded sales of $318 million, up 9% year over year, driven by volume growth.
Vectibix revenues came in at $247 million, up 24% year over, driven by volume growth, mainly due to the favorable timing of shipments to Japanese partner, Takeda.
Nplate sales rose 5% to $288 million. Blincyto sales increased 14% from the year-ago period to $142 million.
Amgen’s newly approved drug, Lumakras/ Lumykras, recorded sales of $75 million in the quarter compared with $77 million in the previous quarter. Lumakras sales declined sequentially due to a lower net selling price due to reimbursement approval in Germany, resulting in an unfavorable price adjustment. Lumakras/ Lumykras volumes rose 15% in the quarter. Lumakras/Lumykras sales missed our estimates of $95.1 million.
Sales of Amgen’s oncology biosimilars declined 25% year over year in the third quarter.
In oncology biosimilars, sales of Kanjinti (Amgen’s biosimilar of Roche’s [RHHBY] Herceptin) were $72 million, down 38% year over year due to lower volumes and pricing as a result of increased competition.
Sales of Mvasi (biosimilar of Roche’s Avastin) were $209 million in the quarter, down 24% year over year due to declines in net selling price.
Inflammation
Sales of Otezla were $627 million in the quarter, up 3%, driven by higher volumes, which offset the impact of lower inventory levels and currency headwinds. Otezla sales beat our estimates of $616.4 million.
Newly approved asthma drug, Tezspire (tezepelumab) recorded sales of $55 million in the quarter compared with $29 million in the previous quarter. Amgen has a partnership with AstraZeneca AZN for Tezspire. In September, AstraZeneca announced that Tezspire was approved in Japan and Europe. Amgen and AstraZeneca share costs and profits equally after payment by AstraZeneca of a mid-single-digit inventor royalty to Amgen. While AstraZeneca leads development, Amgen leads manufacturing.
Amgevita (biosimilar of AbbVie’s [ABBV] Humira) sales were $117 million in the quarter, up 5% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023.
Enbrel revenues of $1.11 billion declined 14% year over year due to lower volumes, price and unfavorable changes to estimated sales deductions. Enbrel sales beat our estimates of $1.04 billion.
Established Products
Total sales of mature drugs like Parsabiv, Neupogen, Aranesp, Epogen and Neulasta declined 17% in the quarter due to an array of branded and generic competitors.
Operating Margins Rise
The adjusted operating margin rose 4.2 percentage points to 52.5% in the quarter due to lower operating costs. Adjusted operating expenses declined 8% to $3.37 billion.
SG&A spending rose 1% to $1.28 billion. R&D expenses declined 22% year over year to $1.10 billion due to a one-time upfront payment recorded in the year-ago quarter. In the third quarter of 2021, Amgen had made an upfront payment of $400 million to license rights to AMG 451 from Kyowa Kirin Corporation. Excluding this one-time payment, R&D expenses increased 10%. Acquired IPR&D expenses were zero in the quarter.
2022 Guidance
Revenues are expected in the range of $26.0 billion to $26.3 billion versus the prior expectation of $25.5 billion to $26.4 billion. Earnings are expected in the range of $17.25 to $17.85 versus the prior expectation of $17.00 to $18.00.
Amgen expects other revenues to be between $1.5 billion and $1.6 billion versus the prior guidance of $1.4 billion to $1.6 billion.
Adjusted cost of sales as a percent of product sales is expected to be 15.5% to 16.5% in 2022 (same as before). Adjusted R&D costs are expected to decrease in the range of 5% to 8% year over year in 2022 (previously 4% to 6%). SG&A spending is expected to be roughly flat year over year as a percentage of product sales (previously flat to slightly down). Total operating expenses are expected to decline year over year at a low double-digit rate. Amgen expects the operating margin as a percentage of product sales to be roughly 50% in 2022.
Currency headwinds are expected to hurt adjusted earnings by approximately 45 cents in 2022.
The adjusted tax rate is expected to be in the range of 13.5%-14.5% (previously 14.0% to 15.0%), while capital expenditures are expected to be approximately $950 million (maintained). The company expects to buy back shares in the range of $6.0 billion to $7.0 billion in 2022.
Our Take
Amgen’s third-quarter results were strong as it beat estimates for both earnings and sales. Amgen tightened its previously issued revenue and adjusted earnings guidance ranges.
Amgen’s four key products, Repatha, Otezla, Prolia and Evenity generated a combined $2 billion in sales in the third quarter with volume growth of 17%. However, pricing pressure and increased competition continued to hurt sales of some drugs as well as biosimilar products. Two of Amgen’s newest drugs, Lumakras and Tezspire, are off to an encouraging start. The recent acquisition of ChemoCentryx added another newly launched innovative product, Tavneos to Amgen’s portfolio which is approved for the treatment for patients with ANCA-associated vasculitis, a serious systemic autoimmune disease.
Amgen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amgen Inc. Price, Consensus and EPS Surprise
Amgen Inc. price-consensus-eps-surprise-chart | Amgen Inc. Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amgevita (biosimilar of AbbVie’s [ABBV] Humira) sales were $117 million in the quarter, up 5% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. AbbVie Inc. (ABBV): Free Stock Analysis Report | Amgevita (biosimilar of AbbVie’s [ABBV] Humira) sales were $117 million in the quarter, up 5% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. AbbVie Inc. (ABBV): Free Stock Analysis Report | Amgevita (biosimilar of AbbVie’s [ABBV] Humira) sales were $117 million in the quarter, up 5% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. AbbVie Inc. (ABBV): Free Stock Analysis Report | Amgevita (biosimilar of AbbVie’s [ABBV] Humira) sales were $117 million in the quarter, up 5% year over year, driven by volume growth, which was partially offset by currency headwinds and lower net selling price due to increased competitive pressure. Amgen will be one of the first companies to launch its biosimilar of AbbVie’s Humira in early 2023. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23027.0 | 2022-11-04 00:00:00 UTC | 2 Dividend Growth Stocks to Buy and Hold for Years | ABBV | https://www.nasdaq.com/articles/2-dividend-growth-stocks-to-buy-and-hold-for-years | nan | nan | Did you know that a stock which increases its dividend by 7% will double its payout in a decade? That's the power of investing in dividend growth stocks. Over time, their yields will rise and investors can earn much more on their initial investment. That can make a low-yielding stock look deceptively low.
Two stocks that have been aggressively increasing their dividends in recent years are AbbVie (NYSE: ABBV) and Visa (NYSE: V). With solid fundamentals and bright futures ahead, these are two investments you can safely buy and hold for the long haul.
1. AbbVie
Drugmaker AbbVie generated more than $56 billion in revenue last year and had over $11 billion in profit. It has several blockbusters in its portfolio, with Humira, Skyrizi, Rinvoq, Imbruvica, Venclexta, and Vraylar all bringing in more than $1 billion in revenue in 2021.
Last week, the company released its most recent results for the third quarter (ended Sept. 30). The company's net revenue rose 3.3% year over year to $14.8 billion for the quarter. Fast-growing immunology products Skyrizi and Rinvoq generated growth of 75% and 54%, respectively.
Although investors are worried about the loss of exclusivity in Humira, the healthcare company has previously stated that it believes Skyrizi and Rinvoq combined can reach higher peak annual sales. AbbVie's broad portfolio of assets that cover immunology, oncology, aesthetics, neuroscience, and eye care makes this a safe stock to own for the long term.
AbbVie also makes for an excellent income stock. It provides a high yield of 4%, which is more than double the S&P 500 average of 1.8%. It's also a Dividend King, having increased its payout for 50-plus years if you include the time it was part of Abbott Laboratories.
Last month, AbbVie raised its dividend by another 5%. Investors are now collecting $1.48 per share every quarter. That's more than double the $0.71 dividend that the company announced five years ago. AbbVie has been increasing its payouts at a compound annual growth rate (CAGR) of 15.8% during that time frame. Although the recent 5% hike suggests the rate of increases is slowing down, the company's track record is impressive.
One reason it's likely the payouts will continue: AbbVie's diluted per-share profit in its most recent quarter was $2.21. If it were to maintain that level of profitability, that would put the dividend at a payout ratio of 67%, which suggests that the healthcare company isn't running out of room to increase its dividend.
With strong fundamentals, a diverse business, and a great dividend, AbbVie makes for a solid stock to buy and hold. And at 21 times earnings, it's no more expensive than the average healthcare stock.
2. Visa
Another top dividend stock to own is Visa. The credit card company is known around the world, and investing in it is a great way to bet on the success of the global economy. Although there are concerns of a possible recession, in the long haul, the business can be a great investment.
It's coming off a strong fourth quarter where sales for the period ended Sept. 30 rose by an impressive 19% year over year to $7.9 billion. For the full fiscal year, revenue totaled $29.3 billion and was up 22%.
Visa is not just a safe buy. It's also become a promising dividend growth stock, recently raising its payouts by 20%. At $0.45, investors will now be collecting more than double the $0.195 that the company was paying five years ago. It has averaged a CAGR of 18.2% during that time. However, even with the significant increase, the yield remains modest at less than 0.9%.
Visa doesn't have as impressive a streak going as AbbVie. Its streak of paying dividends only goes back to 2008, when the stock went public. But given the company's continued growth and ultra-low payout ratio of just over 20%, odds are that Visa will continue raising its dividends for the foreseeable future, and it certainly has the potential to become a Dividend Aristocrat.
While Visa's dividend yield may be underwhelming, investors can collect a lot of recurring income simply from buying and holding the stock. Although it trades at 30 times its earnings, which may not seem all that cheap, that's lower than where it has been in the past, and it's below that of rival Mastercard.
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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 broad portfolio of assets that cover immunology, oncology, aesthetics, neuroscience, and eye care makes this a safe stock to own for the long term. Two stocks that have been aggressively increasing their dividends in recent years are AbbVie (NYSE: ABBV) and Visa (NYSE: V). AbbVie Drugmaker AbbVie generated more than $56 billion in revenue last year and had over $11 billion in profit. | Two stocks that have been aggressively increasing their dividends in recent years are AbbVie (NYSE: ABBV) and Visa (NYSE: V). With strong fundamentals, a diverse business, and a great dividend, AbbVie makes for a solid stock to buy and hold. AbbVie Drugmaker AbbVie generated more than $56 billion in revenue last year and had over $11 billion in profit. | Two stocks that have been aggressively increasing their dividends in recent years are AbbVie (NYSE: ABBV) and Visa (NYSE: V). With strong fundamentals, a diverse business, and a great dividend, AbbVie makes for a solid stock to buy and hold. AbbVie Drugmaker AbbVie generated more than $56 billion in revenue last year and had over $11 billion in profit. | AbbVie Drugmaker AbbVie generated more than $56 billion in revenue last year and had over $11 billion in profit. Two stocks that have been aggressively increasing their dividends in recent years are AbbVie (NYSE: ABBV) and Visa (NYSE: V). AbbVie's broad portfolio of assets that cover immunology, oncology, aesthetics, neuroscience, and eye care makes this a safe stock to own for the long term. |
23028.0 | 2022-11-04 00:00:00 UTC | Better Buy: AbbVie vs. Walgreens Boots Alliance | ABBV | https://www.nasdaq.com/articles/better-buy%3A-abbvie-vs.-walgreens-boots-alliance | nan | nan | Whether you're looking for passive income or for growth, both AbbVie (NYSE: ABBV) and Walgreens Boots Alliance (NASDAQ: WBA) might be of interest. The pair pay decent dividends, operate with business models that are proven to be sustainable over time, and aren't in deep danger of running afoul of longstanding economic trends. Likewise, even if there's trouble in the economy, both companies have defensible market shares and enduring appeal to their customers.
But there's no way that a pharmaceutical juggernaut like AbbVie and a massive pharmacy chain like Walgreens could be equal in terms of their future potential. The differences between the two are too many to list. Let's break down the appeal of both stocks so that you'll know which is the better buy, given where they're likely to go over the next few years.
AbbVie's rolling drug launches continue to pay off
The primary reason to invest in AbbVie is that its drug development pipeline is a powerful growth engine that's not going to slacken anytime soon.
Next year, it plans to submit nine different data packets about its medicines' performance to regulators for their consideration. It'll also report pivotal data from 10 of its late-stage programs, each of which is an opportunity for its share price to rise on good news. In the long term, its ongoing efforts to diversify into making medical devices for aesthetic applications could pay off too.
But even if they don't, the company still has a massive number of different irons in the fire with its drug development efforts. That's why management expects to keep growing the top line by as much as 9% annually after 2024.
You may be wondering what will happen with AbbVie in 2023. The answer is that it'll likely be struggling, if only temporarily. Its psoriatic arthritis drug Humira, responsible for a sizable $5.5 billion of the company's $14.8 billion in third-quarter revenue, will lose its exclusivity protections next year, causing its market share to start evaporating rapidly.
That could drag the top line's growth into the negative and take its share price down a peg too, but only until its other immunology medicines like Skyrizi and Rinvoq replace the missing sales as they scale up into the same markets as Humira. And in the long term, there's no reason to suspect that growth will remain slow since more medicines will be developed, approved, and commercialized all the while.
Being consistently effective at drug development has its perks, like being able to pay a dividend. AbbVie's forward dividend yield is about 3.7%, and the company's dividend grown by 109% over the past five years. If the hikes continue -- and management has signaled that they will -- investors who buy shares today will build a larger and larger passive income stream without any further effort.
Walgreens moves into providing healthcare directly
Walgreens' appeal to investors, its dividend, is entirely different than AbbVie's. That makes it a marginally better pick for passive income investors, but a weaker option for most other purposes.
It's true that its forward yield above 5.5% is hefty, though the dividend's growth of 75% over the last 10 years isn't anything to write home about. Simply put, in recent years the company hasn't proven able to grow steadily. That should make investors a bit skeptical about its merits as an investment, especially when head-to-head against a powerhouse like AbbVie.
Over the last five years, its quarterly revenue grew by only 5.5%, reaching $32.4 billion in its fiscal Q4 2022. But its quarterly net income shrank considerably in the same period, ending with a loss of $415 million. Worse yet, Walgreens' actions to shore up its sales, including its recent diversification into primary care via kiosks and mini-clinics in its pharmacies, won't have much of an effect for quite some time, if they ever do.
Its healthcare segment's sales soared by 75% in its 2022 fiscal year, but it only brought in $1.8 billion by Q4's close. Management is expecting the segment to scale up to between $11 billion to $12 billion per year by 2025, but even that won't be much compared to its total revenue of $132.7 billion.
So Walgreens isn't a growth stock. But it should be able to keep increasing its dividend, and people who invest to build a dividend cash flow will find that their money yields more with Walgreens in the short term than they'd be able to make with AbbVie.
There's not much of a contest
Considering AbbVie's growth, upcoming catalysts from its pipeline, and faster pace of dividend hikes, it's a much better buy than Walgreens. True, AbbVie is exposed to risk from its clinical programs failing as income from Humira dries up. Still, management's plan -- doing more of the same drug development that it excels at -- is more likely to work out for investors than Walgreens' pivot into healthcare.
After all, Walgreens is just figuring out how to be a healthcare provider via its pharmacies for the first time, whereas AbbVie's success in commercializing new drugs goes back 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. | Whether you're looking for passive income or for growth, both AbbVie (NYSE: ABBV) and Walgreens Boots Alliance (NASDAQ: WBA) might be of interest. But there's no way that a pharmaceutical juggernaut like AbbVie and a massive pharmacy chain like Walgreens could be equal in terms of their future potential. AbbVie's rolling drug launches continue to pay off The primary reason to invest in AbbVie is that its drug development pipeline is a powerful growth engine that's not going to slacken anytime soon. | AbbVie's rolling drug launches continue to pay off The primary reason to invest in AbbVie is that its drug development pipeline is a powerful growth engine that's not going to slacken anytime soon. Walgreens moves into providing healthcare directly Walgreens' appeal to investors, its dividend, is entirely different than AbbVie's. Whether you're looking for passive income or for growth, both AbbVie (NYSE: ABBV) and Walgreens Boots Alliance (NASDAQ: WBA) might be of interest. | AbbVie's rolling drug launches continue to pay off The primary reason to invest in AbbVie is that its drug development pipeline is a powerful growth engine that's not going to slacken anytime soon. Walgreens moves into providing healthcare directly Walgreens' appeal to investors, its dividend, is entirely different than AbbVie's. But it should be able to keep increasing its dividend, and people who invest to build a dividend cash flow will find that their money yields more with Walgreens in the short term than they'd be able to make with AbbVie. | Whether you're looking for passive income or for growth, both AbbVie (NYSE: ABBV) and Walgreens Boots Alliance (NASDAQ: WBA) might be of interest. But there's no way that a pharmaceutical juggernaut like AbbVie and a massive pharmacy chain like Walgreens could be equal in terms of their future potential. AbbVie's rolling drug launches continue to pay off The primary reason to invest in AbbVie is that its drug development pipeline is a powerful growth engine that's not going to slacken anytime soon. |
23029.0 | 2022-11-04 00:00:00 UTC | 3 Top Healthcare Stocks to Buy for November | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-to-buy-for-november | nan | nan | The end of the year is right around the corner. But this time of year actually is a beginning for certain healthcare stocks. That's because important share-performance catalysts and/or revenue opportunities lie just ahead. And that's why these players make great buys in November.
CRISPR Therapeutics (NASDAQ: CRSP) is submitting what may become its first commercialized gene-editing treatment to regulators this month. Axsome Therapeutics (NASDAQ: AXSM) just started selling a potential blockbuster antidepressant. And sales are multiplying for AbbVie's (NYSE: ABBV) two key immunology drugs. These catalysts could lift the shares in the near term -- and over time. Let's take a closer look at each.
1. CRISPR Therapeutics
CRISPR is heading for a major moment. The gene-editing specialist, along with its partner Vertex Pharmaceuticals, begins a regulatory submission this month. The companies are requesting approval for exa-cel, an investigational therapy for blood disorders beta thalassemia and sickle cell disease.
They expect to complete submissions in Europe and the U.K. by the end of this year. And they're set to complete the U.S. request by the first quarter of next year.
The potential approval of exa-cel could be particularly big for CRISPR. It would be the first commercialized product using the company's gene-editing technology. And the product could eventually generate blockbuster revenue.
Doctors and patients may flock to exa-cel for two reasons. First, treatment options for the two blood disorders are currently limited. And second, exa-cel is meant to be a one-time curative treatment.
Exa-cel could become a very important product for CRISPR. At the same time, CRISPR is making progress with other pipeline candidates. These represent possible revenue down the road.
The company expects to report additional data from a pivotal trial of CTX110, an immuno-oncology candidate, this year. And it plans to launch clinical trials of another immuno-oncology candidate in the first half of next year.
2. Axsome Therapeutics
Earlier this year, Axsome began selling its first drug -- one it acquired from Jazz Pharmaceuticals. Sunosi is a treatment for excessive daytime sleepiness associated with sleep disorders.
Then, Axsome won U.S. regulatory approval for Auvelity, a drug for major depressive disorder. Auvelity could bring in $1.3 billion by 2029, according to GlobalData.
The antidepressant market is crowded, but Auvelity has features that could help it stand out. Importantly, it's fast acting -- with significant improvement seen in just one week. Another plus is Auvelity isn't linked to weight gain -- a common side effect of antidepressants.
Late last month, Axsome began selling Auvelity. So we should expect to begin seeing revenue generated from the drug as of the fourth quarter of this year.
There could be even more sources of revenue ahead, and Axsome may turn a negative situation around. The The U.S. Food and Drug Administration (FDA) initially rejected Axsome's migraine treatment candidate. But after a meeting with the FDA, Axsome plans to address concerns and resubmit the candidate next year.
The FDA rejection had to do with chemistry, manufacturing, and controls. These elements are easier to adjust than an efficacy or safety issue. So there's reason to be optimistic about this Axsome candidate -- and the possibility of yet another drug on the horizon.
3. AbbVie
Let's talk about the bad news first: AbbVie's super-blockbuster immunology drug Humira is set to lose exclusivity next year. But here's the good news: AbbVie's two younger immunology drugs, Skyrizi and Rinvoq, together may eventually surpass Humira's peak sales.
So far, things are on the right track. In the third quarter, Skyrizi and Rinvoq were on target to generate more than $7.5 billion in revenue this year. That would beat AbbVie's forecasts.
The company's strategy is to launch both drugs across all of Humira's treatment areas. This strategy is working so far. And AbbVie is in the early stages of rolling out the drugs in the areas of inflammatory bowel disease and psoriatic arthritis. So we should see more growth ahead in these indications.
Another key growth area for AbbVie lies in aesthetics. The company sells two of the world's most well-known brands: Botox wrinkle treatment and the Juvederm collection of dermal fillers.
The company expects today's economic weakness to weigh on discretionary spending -- and therefore hurt demand for aesthetic treatments. But this is a short-term problem. The global facial-aesthetics market is forecast to grow in the double digits throughout the decade. And AbbVie's business is well-positioned to benefit.
All of this means AbbVie has tickets to short-term and long-term growth. And that's reason to add this top stock to healthcare portfolios right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But here's the good news: AbbVie's two younger immunology drugs, Skyrizi and Rinvoq, together may eventually surpass Humira's peak sales. And sales are multiplying for AbbVie's (NYSE: ABBV) two key immunology drugs. AbbVie Let's talk about the bad news first: AbbVie's super-blockbuster immunology drug Humira is set to lose exclusivity next year. | But here's the good news: AbbVie's two younger immunology drugs, Skyrizi and Rinvoq, together may eventually surpass Humira's peak sales. And sales are multiplying for AbbVie's (NYSE: ABBV) two key immunology drugs. AbbVie Let's talk about the bad news first: AbbVie's super-blockbuster immunology drug Humira is set to lose exclusivity next year. | AbbVie Let's talk about the bad news first: AbbVie's super-blockbuster immunology drug Humira is set to lose exclusivity next year. And sales are multiplying for AbbVie's (NYSE: ABBV) two key immunology drugs. But here's the good news: AbbVie's two younger immunology drugs, Skyrizi and Rinvoq, together may eventually surpass Humira's peak sales. | Another key growth area for AbbVie lies in aesthetics. And sales are multiplying for AbbVie's (NYSE: ABBV) two key immunology drugs. AbbVie Let's talk about the bad news first: AbbVie's super-blockbuster immunology drug Humira is set to lose exclusivity next year. |
23030.0 | 2022-11-02 00:00:00 UTC | 3 Year-End Investing Strategies You Should Consider Right Now | ABBV | https://www.nasdaq.com/articles/3-year-end-investing-strategies-you-should-consider-right-now | nan | nan | In a perfect world, the calendar wouldn't matter when it comes to investing. Companies would always be fairly valued based on their future prospects, and major price swings would be rare events driven by substantial changes to those prospects. In the real world, however, the calendar matters. Investors make decisions on factors like which tax year an investment choice will impact or whether or not a sale qualifies for long-term capital gains tax treatment.
Those calendar-based decisions provide opportunities to investors too. With that in mind, three Motley Fool contributors came up with year-end investing strategies worth considering right now. They highlighted dividend stocks, tax-loss harvesting, and bargain hunting. Read on to learn more about each of those strategies, and find out how they can work for you as 2022 draws closer to its end.
Image source: Getty Images.
It pays to buy a payer
Eric Volkman: The end of the year is a time when a great many companies declare dividend raises. Since many of these stocks are cheaper than they have been in quite some time thanks to the ongoing market weakness, their dividend yields are approaching highs or setting new ones.
One of the wonderful features of the U.S. stock market is that it is stuffed with regular dividend payers. So for anyone who wants steady and reliable passive income from a stock, there are plenty of choices.
Want to go for a high-yield play? You might consider a real estate investment trust (REIT), which is obligated by law to pay out at least 90% of its taxable income to shareholders. This all but guarantees a regular dividend, particularly if it comes from a veteran operator like retail properties specialist Realty Income. The company's payout -- dispensed monthly, no less -- yields 4.8% as of this writing.
Typically a rung or several down the yield ladder are blue-chip stocks, established businesses that have been mainstays on the market for years. Not all of them pay dividends and with those that do, yields can vary widely. Still, there are some relatively high-yield plays here too. For example, in the healthcare sector, AbbVie is a $260 billion industry giant with a yield above 4%.
Finally, there are the high-fliers that aren't (yet) high-yielders, but they can offer an appealing combination of share price growth and income. In this category, there are names like Apple and MGM Resorts International, a casino operator that's pushing into the high potential online and mobile betting segment.
There are dividend stocks of all shapes and sizes, for any type of investing style. It's good to mix and match among these categories, of course, but diversification usually comes down to personal taste and appetite for risk. Regardless, now's a great time to buy a dividend-paying stock or several.
Investors can make the best of a down year in 2022
Parkev Tatevosian: As the end of a challenging year for the market approaches, there is one strategy that makes the best of this situation. The bear market in 2022 makes it likely investors have holdings in their taxable brokerage accounts that are down significantly. For any stocks where your investing thesis no longer holds up, sell them and take advantage of the capital loss at tax time next year.
Specifically, the IRS allows investors who sell stocks at a loss to use those losses to reduce their tax liability. First, capital losses can offset your capital gains if you're fortunate enough to have them in 2022. But if you're like most investors with only losses to report this year, you can use them to deduct up to $3,000 annually from other sources of income like salaried wages and business earnings.
Not only that, but the IRS allows you to carry forward excess losses to future years, meaning you could harvest $10,000 in capital losses right now, take the $3,000 deduction for 2022, and still have $7,000 left over to offset future capital gains or income.
Before running with this strategy, there are other topics you must familiarize yourself with like the wash-sale rule and the effect of different holding periods on your deductions. But taking advantage of tax-loss harvesting could help you make the best of a forgettable year.
It's time to go bargain hunting
Chuck Saletta: The tax-loss harvesting strategy Parkev outlines above may be very tempting in this market. When investors start selling for tax reasons or to escape from this year's volatility, it can often put undue pressure on a company's stock price. After all, to the market, a seller is a seller, regardless of whether that person is looking to get rid of a dud of a company or simply manage their tax bill. The market finds its clearing price by balancing buyers and sellers, and if there's an excess of sellers, it tends to drive prices down.
While the overall market has spent substantial portions of 2022 down more than 20%, there are plenty of companies that have fared even worse. Some of those companies may have seen their shares get downright cheap from a valuation perspective, but for investors focused on the tax benefit or just cutting their losses, the valuation may not matter all that much.
That's where you can step in with your bargain-hunter's mentality and buy shares of solid companies at value prices. With a tool like a discounted cash flow model at your side, you can get a decent estimate of what a stock is really worth. If the market is asking for a much lower price, it could very well be a bargain just waiting for your purchase order.
It's important to note that any valuation model will at best get you a reasonable estimate. You are attempting to predict the future after all, and a company's numbers are never certain until it closes its books. Still, even with that uncertainty, if the ups and downs from a lousy year in the market make bargains available, this year-end season just might be the best time to seek out quality companies at value prices.
The clock is ticking
Regardless of what you do with your portfolio, 2022 will draw to a close in the not too distant future. If you want to take advantage of the calendar to buy dividend stocks, engage in tax-loss harvesting, or seek out bargains, your opportunity comes with an expiration date. Get started now, and give yourself the most time you can to put your plans in place.
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Chuck Saletta has no position in any of the stocks mentioned. Eric Volkman has positions in Apple. Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple. 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.
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, in the healthcare sector, AbbVie is a $260 billion industry giant with a yield above 4%. In this category, there are names like Apple and MGM Resorts International, a casino operator that's pushing into the high potential online and mobile betting segment. For any stocks where your investing thesis no longer holds up, sell them and take advantage of the capital loss at tax time next year. | For example, in the healthcare sector, AbbVie is a $260 billion industry giant with a yield above 4%. It pays to buy a payer Eric Volkman: The end of the year is a time when a great many companies declare dividend raises. It's time to go bargain hunting Chuck Saletta: The tax-loss harvesting strategy Parkev outlines above may be very tempting in this market. | For example, in the healthcare sector, AbbVie is a $260 billion industry giant with a yield above 4%. Investors can make the best of a down year in 2022 Parkev Tatevosian: As the end of a challenging year for the market approaches, there is one strategy that makes the best of this situation. For any stocks where your investing thesis no longer holds up, sell them and take advantage of the capital loss at tax time next year. | For example, in the healthcare sector, AbbVie is a $260 billion industry giant with a yield above 4%. Investors make decisions on factors like which tax year an investment choice will impact or whether or not a sale qualifies for long-term capital gains tax treatment. Investors can make the best of a down year in 2022 Parkev Tatevosian: As the end of a challenging year for the market approaches, there is one strategy that makes the best of this situation. |
23031.0 | 2022-11-02 00:00:00 UTC | Got $5,000? Buy These 3 Dividend Kings And Hold Them Forever | ABBV | https://www.nasdaq.com/articles/got-%245000-buy-these-3-dividend-kings-and-hold-them-forever | nan | nan | Whether you're looking to make some extra dough from dividend income or build defensive investments into your portfolio, Dividend Kings are stocks you should know about these days. What they all have in common is this: they've raised their dividends for at least 50 (yup, 50) consecutive years.
The capacity to build such an impressive track record of payouts shows them to be among the most financially stable businesses, and makes them great choices as long-term investments for a portion of your nest egg.
In my view, there are three Dividend Kings worthy of special attention right now. Let's see how a $5,000 investment spread across this trio could boost your finances for decades to come.
1. AbbVie
As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021.
While Humira is in the process of going off patent, the company should continue to be in good shape thanks to sales of its constantly expanding portfolio of medicines. In 2023 alone, AbbVie could see as many as eight of its programs get approved by regulators, and with a myriad of oncology and immunology candidates in mid-stage clinical trials, it should deliver similar performance in the years that follow.
Since 2013, AbbVie's management has grown its dividend by 270%, and at the current share price, it has a forward yield of nearly 3.7%. If you invest one-third of $5,000 ($1,666) in it, you'd get $61.66 in dividend income after a year, which doesn't sound like much.
But when considering that the payout is likely to continue growing quite rapidly for the foreseeable future, holding AbbVie shares for one year should just be the start, and the biggest rewards will come to those who are the most patient.
2. Becton, Dickinson
Becton, Dickinson (NYSE: BDX) is an "everything company" in the healthcare sector, selling everything from syringes to diagnostic tests, medical devices, and scientific instruments for use in biomedical research.
That means it's buoyed by long-term growth trends in multiple industries, including pharma, biotech, and clinical care. It also means there's a relatively steady level of demand for many of its products, which provides enough predictability for the business to pay its dividend.
Since late 2013, Becton, Dickinson has boosted its payout by 76% though its forward yield of just above 1.5% is on the low side. Management explicitly endorses the idea of continuing to hike the dividend, and its $3.4 billion of free cash flow in 2021 suggests it will be feasible for it to do so.
Investing $1,666 into Becton, Dickinson today probably won't result in returns that beat the market anytime soon, but its payout ratio of around 52% means that there's plenty of room to keep raising the dividend for years, even in the absence of significant earnings growth -- and that should give investors a measure of confidence in its sustainability.
3. Abbott Laboratories
Much like Becton, Dickinson, Abbott Laboratories (NYSE: ABT) wears many hats. The range of its product offerings spans from baby formula and glucose monitors to coronavirus tests and surgical sets for use in operating rooms.
As it competes in so many different product segments, it has the benefit of a durable top line that's resilient to disruption from economic phenomena or encroaching competition. After all, even if customers defect to another supplier for cardiac stents or some other product, each one accounts for just a tiny slice of Abbott's trailing 12-month revenue of $45 billion.
Abbott Labs isn't new to curating its mix of products to favor what's in demand, and the speed with which it developed rapid coronavirus diagnostic tests at the start of the pandemic demonstrates that it's still quite agile for such a large and established business. That dynamism is core to its long-term appeal.
In the last 10 years, the company has boosted its dividend by 236%. Presently, it yields a hair over 1.9%. Investing the remainder of your $5,000 in Abbott is unlikely to get you rich quickly, but it'll help you to accumulate wealth slowly and without major pullbacks.
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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 As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021. In 2023 alone, AbbVie could see as many as eight of its programs get approved by regulators, and with a myriad of oncology and immunology candidates in mid-stage clinical trials, it should deliver similar performance in the years that follow. Since 2013, AbbVie's management has grown its dividend by 270%, and at the current share price, it has a forward yield of nearly 3.7%. | AbbVie As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021. In 2023 alone, AbbVie could see as many as eight of its programs get approved by regulators, and with a myriad of oncology and immunology candidates in mid-stage clinical trials, it should deliver similar performance in the years that follow. Since 2013, AbbVie's management has grown its dividend by 270%, and at the current share price, it has a forward yield of nearly 3.7%. | AbbVie As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021. In 2023 alone, AbbVie could see as many as eight of its programs get approved by regulators, and with a myriad of oncology and immunology candidates in mid-stage clinical trials, it should deliver similar performance in the years that follow. Since 2013, AbbVie's management has grown its dividend by 270%, and at the current share price, it has a forward yield of nearly 3.7%. | AbbVie As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021. In 2023 alone, AbbVie could see as many as eight of its programs get approved by regulators, and with a myriad of oncology and immunology candidates in mid-stage clinical trials, it should deliver similar performance in the years that follow. Since 2013, AbbVie's management has grown its dividend by 270%, and at the current share price, it has a forward yield of nearly 3.7%. |
23032.0 | 2022-11-02 00:00:00 UTC | 5 Stocks to Watch on Recent Dividend Hikes Amid High Volatility | ABBV | https://www.nasdaq.com/articles/5-stocks-to-watch-on-recent-dividend-hikes-amid-high-volatility | nan | nan | Major U.S indexes like the S&P 500, the Dow and the Nasdaq continued to gyrate in the month of October after a disappointing this year till September. Though the stock market recovered in October, the overall sentiment of investors remains cautious ahead of the Federal Reserve’s meeting this week.
The Fed is expected to continue with its aggressive monetary policy tightening stance to fight inflation, which came in at 8.2% on a year-over-year basis in September mainly due to rising prices of shelter, food and medical care. The OPEC+ decision to cut down oil supply by 2 million barrels/day, in the meantime, will push oil prices higher and that might elevate inflation in the upcoming winter season.
Although the inflation has marginally fallen from August’s high of 8.3%, it is still in an uncomfortable position for the average American and the Fed, which aims to bring it down to around 2%. Notably, rate hikes don’t bode well for the economy vis-à-vis the stock market.
A fresh Covid situation is again looming in China and authorities have imposed restrictions to prevent a breakout. Along with these, incessant geo-political tensions between Russia-Ukraine continue to impose threats for the global supply chain, resulting in volatility for the stock market.
Thus, prudent investors who wish to earn a handsome return in such a dismal situation may invest in dividend-paying stocks. These dividend stocks tend to be profitable due to their proven business model. It helps them stay afloat during adverse economic conditions.
From such matured businesses, investors can expect a steady flow of income along with higher protection of capital against unexpected price changes. It is often seen that a company that tends to reward its investors with a high dividend payout, comparatively outperforms non-dividend-paying stocks during market volatility.
On that note, let us look at companies like AbbVie ABBV, Astec Industries ASTE, Boise Cascade BCC, Esquire Financial ESQ and The Hartford Financial Services Group HIG that have lately hiked their dividend payments.
AbbVie is a North Chicago, IL-based company that discovers, develops, manufactures and sells pharmaceuticals worldwide. The company enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics and eye care. ABBV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
On Oct 28, ABBV declared that its shareholders would receive a dividend of $1.48 a share on Feb 15, 2023. ABBV has a dividend yield of 3.85%.
Over the past five years, ABBV has increased its dividend seven times and its payout ratio presently sits at 41% of earnings. Check AbbVie’s dividend history here.
AbbVie Inc. Dividend Yield (TTM)
AbbVie Inc. dividend-yield-ttm | AbbVie Inc. Quote
Astec Industries is a leading manufacturer and marketer of road-building equipment. The Zacks Rank #3 company was incorporated in 1972 and is headquartered in Chattanooga, TN.
On Oct 27, ASTE declared that its shareholders would receive a dividend of $0.13 a share on Dec 2, 2022. ASTE has a dividend yield of 1.10%.
Over the past five years, ASTE has increased its dividend three times and its payout ratio presently sits at 45% of earnings. Check Astec Industries’ dividend history here.
Astec Industries, Inc. Dividend Yield (TTM)
Astec Industries, Inc. dividend-yield-ttm | Astec Industries, Inc. Quote
Boise Cascade is a wood products manufacturer and building materials distributor. This Zacks Rank #1 company has operations primarily in the United States and Canada.
On Oct 27, BCC declared that its shareholders would receive a dividend of $1.15 a share on Dec 15, 2022. BCC has a dividend yield of 0.72%.
In the past five-year period, BCC has increased its dividend seven times. Its payout ratio at present sits at 2% of earnings. Check Boise Cascade’s dividend history.
Boise Cascade, L.L.C. Dividend Yield (TTM)
Boise Cascade, L.L.C. dividend-yield-ttm | Boise Cascade, L.L.C. Quote
Esquire Financial is a bank holding company. This Zacks Rank #1 company provides banking products and services to law professionals, professional service firms, small to mid-sized businesses and individuals primarily in the United States.
On Oct 27, ESQ announced that its shareholders would receive a dividend of $.10 a share on Dec 1, 2022. ESQ has a dividend yield of 0.80%.
Over the past five years, ESQ has increased its dividend one time. Its payout ratio now sits at 12% of earnings. Check Esquire Financial’s dividend history here.
Esquire Financial Holdings, Inc. Dividend Yield (TTM)
Esquire Financial Holdings, Inc. dividend-yield-ttm | Esquire Financial Holdings, Inc. Quote
The Hartford Financial Services Group is one of the major multi-line insurance and investment companies in the country. This Zacks Rank #3 company provides investment products, group life and group disability insurance, property and casualty insurance and mutual funds in the United States.
On Oct 27, HIG declared that its shareholders would receive a dividend of $0.43 a share on Jan 4, 2023. HIG has a dividend yield of 2.13%.
Over the past five years, HIG has increased its dividend six times and its payout ratio at present sits at 21% of earnings. Check The Hartford Financial Services Group’s dividend history here.
The Hartford Financial Services Group, Inc. Dividend Yield (TTM)
The Hartford Financial Services Group, Inc. dividend-yield-ttm | The Hartford Financial Services Group, Inc. Quote
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 Hartford Financial Services Group, Inc. (HIG): Free Stock Analysis Report
Astec Industries, Inc. (ASTE): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On that note, let us look at companies like AbbVie ABBV, Astec Industries ASTE, Boise Cascade BCC, Esquire Financial ESQ and The Hartford Financial Services Group HIG that have lately hiked their dividend payments. AbbVie is a North Chicago, IL-based company that discovers, develops, manufactures and sells pharmaceuticals worldwide. ABBV currently carries a Zacks Rank #3 (Hold). | On that note, let us look at companies like AbbVie ABBV, Astec Industries ASTE, Boise Cascade BCC, Esquire Financial ESQ and The Hartford Financial Services Group HIG that have lately hiked their dividend payments. AbbVie is a North Chicago, IL-based company that discovers, develops, manufactures and sells pharmaceuticals worldwide. ABBV currently carries a Zacks Rank #3 (Hold). | On that note, let us look at companies like AbbVie ABBV, Astec Industries ASTE, Boise Cascade BCC, Esquire Financial ESQ and The Hartford Financial Services Group HIG that have lately hiked their dividend payments. AbbVie is a North Chicago, IL-based company that discovers, develops, manufactures and sells pharmaceuticals worldwide. ABBV currently carries a Zacks Rank #3 (Hold). | On that note, let us look at companies like AbbVie ABBV, Astec Industries ASTE, Boise Cascade BCC, Esquire Financial ESQ and The Hartford Financial Services Group HIG that have lately hiked their dividend payments. ABBV currently carries a Zacks Rank #3 (Hold). AbbVie is a North Chicago, IL-based company that discovers, develops, manufactures and sells pharmaceuticals worldwide. |
23033.0 | 2022-11-01 00:00:00 UTC | CVS, Walmart, Walgreens agree to pay $13.8 bln to settle U.S. opioid claims - sources | ABBV | https://www.nasdaq.com/articles/cvs-walmart-walgreens-agree-to-pay-%2413.8-bln-to-settle-u.s.-opioid-claims-sources | nan | nan | By Brendan Pierson
Nov 1 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N have tentatively agreed to pay about $13.8 billion to resolve thousands of state and local government lawsuits accusing the chains of mishandling opioid painkillers, according to two people familiar with the negotiations.
The proposed settlement calls for CVS to pay $5 billion over 10 years, Walgreens to pay $5.7 billion over 15 years and Walmart to pay $3.1 billion, mostly up front, according to the people. The sources declined to be identified, saying they were not authorized to speak publicly about the matter.
The proposed settlement, which would be the first nationwide deal with retail pharmacy companies, follows nationwide opioid settlements with drugmakers and distributors totaling more than $33 billion.
In more than 3,300 lawsuits, state and local governments accused drugmakers of downplaying the risks of their opioid pain medicines, and distributors and pharmacies of ignoring red flags that prescriptions were being diverted into illegal trafficking.
They said the resulting human toll, as well as strain on public health services and law enforcement, was a public nuisance that the companies must pay to fix.
Plaintiffs had scored some significant trial victories against pharmacy chains, including a $650.6 million judgment in favor of two Ohio counties against CVS, Walgreens Boots Alliance WBA.O and Walmart Inc WMT.N, and a ruling that Walgreens contributed to the opioid epidemic in San Francisco.
(Reporting by Baranjot Kaur in Bengaluru, Brendan Pierson in New York and Nate Raymond in Boston; Editing by Alexia Garamfalvi and Kenneth Maxwell)
((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;))
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 1 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N have tentatively agreed to pay about $13.8 billion to resolve thousands of state and local government lawsuits accusing the chains of mishandling opioid painkillers, according to two people familiar with the negotiations. In more than 3,300 lawsuits, state and local governments accused drugmakers of downplaying the risks of their opioid pain medicines, and distributors and pharmacies of ignoring red flags that prescriptions were being diverted into illegal trafficking. Plaintiffs had scored some significant trial victories against pharmacy chains, including a $650.6 million judgment in favor of two Ohio counties against CVS, Walgreens Boots Alliance WBA.O and Walmart Inc WMT.N, and a ruling that Walgreens contributed to the opioid epidemic in San Francisco. | By Brendan Pierson Nov 1 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N have tentatively agreed to pay about $13.8 billion to resolve thousands of state and local government lawsuits accusing the chains of mishandling opioid painkillers, according to two people familiar with the negotiations. The proposed settlement calls for CVS to pay $5 billion over 10 years, Walgreens to pay $5.7 billion over 15 years and Walmart to pay $3.1 billion, mostly up front, according to the people. In more than 3,300 lawsuits, state and local governments accused drugmakers of downplaying the risks of their opioid pain medicines, and distributors and pharmacies of ignoring red flags that prescriptions were being diverted into illegal trafficking. | By Brendan Pierson Nov 1 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N have tentatively agreed to pay about $13.8 billion to resolve thousands of state and local government lawsuits accusing the chains of mishandling opioid painkillers, according to two people familiar with the negotiations. The proposed settlement calls for CVS to pay $5 billion over 10 years, Walgreens to pay $5.7 billion over 15 years and Walmart to pay $3.1 billion, mostly up front, according to the people. (Reporting by Baranjot Kaur in Bengaluru, Brendan Pierson in New York and Nate Raymond in Boston; Editing by Alexia Garamfalvi and Kenneth Maxwell) ((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;)) 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 1 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N have tentatively agreed to pay about $13.8 billion to resolve thousands of state and local government lawsuits accusing the chains of mishandling opioid painkillers, according to two people familiar with the negotiations. The sources declined to be identified, saying they were not authorized to speak publicly about the matter. The proposed settlement, which would be the first nationwide deal with retail pharmacy companies, follows nationwide opioid settlements with drugmakers and distributors totaling more than $33 billion. |
23034.0 | 2022-11-01 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-1 | 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.
Shares of this drugmaker have returned +5.8% over the past month versus the Zacks S&P 500 composite's +8.1% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 9.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AbbVie is expected to post earnings of $3.72 per share for the current quarter, representing a year-over-year change of +12.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%.
The consensus earnings estimate of $13.88 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has changed -0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.47 indicates a change of -17.4% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -1.7%.
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.
In the case of AbbVie, the consensus sales estimate of $15.74 billion for the current quarter points to a year-over-year change of +5.7%. The $58.49 billion and $54.18 billion estimates for the current and next fiscal years indicate changes of +4.1% and -7.4%, 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 9.6% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +3.3%. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 9.6% over this period. | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 9.6% over this period. AbbVie is expected to post earnings of $3.72 per share for the current quarter, representing a year-over-year change of +12.4%. | For the next fiscal year, the consensus earnings estimate of $11.47 indicates a change of -17.4% from what AbbVie is expected to report a year ago. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 9.6% over this period. |
23035.0 | 2022-11-01 00:00:00 UTC | These 2 Passive Income Stars Just Declared Dividend Raises | ABBV | https://www.nasdaq.com/articles/these-2-passive-income-stars-just-declared-dividend-raises | nan | nan | Investors are now in the midst of the final earnings season of 2022. Companies often cap their reporting year with a dividend raise, and the raising has been relatively brisk lately. Businesses of every size and in every sector are adding to their payouts.
Two giants in their respective industries, AbbVie (NYSE: ABBV) and Visa (NYSE: V), are among that group of lifters. Let's take a closer look at these two companies' still-fresh dividend increases -- and why it could make them attractive for investors.
1. AbbVie
Being the developer of the world's top-selling drug sure has its privileges. AbbVie is the company behind Humira, the blockbuster treatment for rheumatoid arthritis and a set of other afflictions whose sales approached a staggering $20 billion-plus last year.
With a number like that from one drug alone, it's no wonder AbbVie is generous with its distribution; in fact, it's one of the stock market's rare Dividend Kings with a five-decade streak behind it. Concurrent with the release of its latest earnings report, the company announced a 5% dividend increase to $1.48 per share.
There's one giant caveat regarding Humira -- it's in the process of losing its patent protection (no, the company didn't do anything wrong; drugs approved in most major jurisdictions like the U.S. are guaranteed only limited patent exclusivity).
It says something about AbbVie's strength as a company that Humira falling off the patent cliff won't sink its business. AbbVie's two other immunology drugs, Skyrizi and Rinvoq, brought in more than $1.7 billion in the third quarter and their sales are growing by about 75% and 54% year over year, respectively. And they are only two drugs among others in the company's wide and deep commercial portfolio.
AbbVie's dividend raise kicks in with the payout scheduled for Feb. 15, 2023; it will be made to shareholders of record as of the preceding Jan. 13. At the stock's most recent closing price, the new amount would yield just over 4%.
2. Visa
Although Visa's dividend growth streak isn't as lengthy as AbbVie's and its yield is notably lower, Visa is still a reliable payer and lifter. True to form, at the end of October the company declared a 20% hike in the quarterly payout to $0.45 per share.
The payment card giant is also a top beneficiary of the world's long-tail shift from cash into plastic and digital commerce. Combine that with an asset-light model -- Visa doesn't provide any credit itself, rather, it acts as only the processor of payments made with its plastic -- and you've got a fine recipe for high-margin profitability and growth.
Visa's full-year fiscal 2022 results were typical for this financial sector powerhouse; net revenue zoomed 22% higher to hit an astonishing $29.3 billion. Not to be outdone, non-GAAP (adjusted) net income surged ahead at a bracing 24% clip to $16 billion.
The trend away from cash is far from over. And even if the global economy experiences some hiccups in the coming quarters, Visa should continue to rake it in -- if at a decelerated pace. On average, analysts tracking the stock are expecting nearly 10% growth on the top line this fiscal year and an 11% improvement in per-share earnings.
The company's recently raised dividend will be handed out on Dec. 1 to investors of record as of Nov. 11. The would give it a yield of 0.9% on the current share price.
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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 the company behind Humira, the blockbuster treatment for rheumatoid arthritis and a set of other afflictions whose sales approached a staggering $20 billion-plus last year. Two giants in their respective industries, AbbVie (NYSE: ABBV) and Visa (NYSE: V), are among that group of lifters. AbbVie Being the developer of the world's top-selling drug sure has its privileges. | Visa Although Visa's dividend growth streak isn't as lengthy as AbbVie's and its yield is notably lower, Visa is still a reliable payer and lifter. Two giants in their respective industries, AbbVie (NYSE: ABBV) and Visa (NYSE: V), are among that group of lifters. AbbVie Being the developer of the world's top-selling drug sure has its privileges. | With a number like that from one drug alone, it's no wonder AbbVie is generous with its distribution; in fact, it's one of the stock market's rare Dividend Kings with a five-decade streak behind it. Visa Although Visa's dividend growth streak isn't as lengthy as AbbVie's and its yield is notably lower, Visa is still a reliable payer and lifter. Two giants in their respective industries, AbbVie (NYSE: ABBV) and Visa (NYSE: V), are among that group of lifters. | Visa Although Visa's dividend growth streak isn't as lengthy as AbbVie's and its yield is notably lower, Visa is still a reliable payer and lifter. Two giants in their respective industries, AbbVie (NYSE: ABBV) and Visa (NYSE: V), are among that group of lifters. AbbVie Being the developer of the world's top-selling drug sure has its privileges. |
23036.0 | 2022-11-01 00:00:00 UTC | 3 Dividend Stocks to Buy Hand Over Fist in November | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-hand-over-fist-in-november | nan | nan | There's just something comforting about a stock that pays you to own it. That's especially the case amid the current overall stock market volatility.
I'm talking, of course, about dividend stocks. Well over 4,000 stocks traded on U.S. exchanges offer dividends. But some are better than others. Here are three dividend stocks to buy hand over fist in November.
1. AbbVie
Perhaps the most important thing to know about AbbVie (NYSE: ABBV) is that it's a Dividend King. This distinction applies only to S&P 500 members that have increased their dividends annually for at least 50 consecutive years. AbbVie's streak of dividend hikes now stands at 51 years in a row after the company's latest dividend increase was announced last week.
The dividend yield of over 4% isn't the only thing to like. The big pharma stock has handily outperformed the broader market so far this year as well.
But sales for AbbVie's top-selling drug, Humira, are about to decline with biosimilars hitting the U.S. market in 2023. Why buy the stock now with this bad news right around the corner?
For one thing, the market has already largely baked Humira's loss of exclusivity into AbbVie's share price. Also, the company's two successors to Humira (Rinvoq and Skyrizi) are beating sales expectations. Management believes these two autoimmune-disease drugs will top Humira's peak annual sales within a few years.
Next year will likely be the trough year for AbbVie's earnings. The company should be able to deliver solid revenue and earnings growth throughout the rest of the decade. Long-term investors should enjoy solid returns from this resilient stock.
2. Brookfield Renewable
Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) isn't a member of dividend royalty nor has it delivered a positive return this year. However, like AbbVie, it offers a dividend yield of more than 4%.
The company currently operates hydroelectric, wind, solar, and distributed energy facilities that generate around 23 gigawatts of power for roughly 30 markets in 20 countries. It has a near-term development capacity of an additional 11.8 gigawatts, with much larger long-term development capacity.
Brookfield Renewable's growth prospects are outstanding. Governments and corporations across the world have established ambitious goals to reduce carbon emissions. The demand for renewable energy will almost certainly increase significantly for years to come as a result.
The future for Brookfield Renewable is getting even brighter thanks to key acquisitions. In September, the company announced its acquisition of Scout Clean Energy for $1 billion. In October, Brookfield Renewable and Cameco teamed up to acquire nuclear power provider Westinghouse Electric.
3. Devon Energy
Devon Energy (NYSE: DVN) is listed third alphabetically here, but there's a strong case to be made that it's the most appealing of these three dividend stocks right now. It has certainly been the biggest winner so far this year, with shares skyrocketing more than 70% as of Oct. 31.
In addition, Devon offers an especially juicy dividend yield of close to 8.2%. The oil and gas producer has a unique fixed-plus-variable dividend program with a payout that has more than tripled since the second quarter of 2021.
Devon also continues to use its growing fortunes to reward shareholders in other ways. The company has a $2 billion stock buyback program in place. It's also paying down debt.
Even though Devon has delivered a huge gain this year, the stock is arguably wildly undervalued. Its shares currently trade at only 7.7 times the estimated 2022 free cash flow. This valuation is much more attractive than that of the S&P 500. Devon is a bargain high-yield dividend stock that should have more room to run.
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Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. The Motley Fool has positions in and recommends Brookfield Renewable Corporation Inc. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Perhaps the most important thing to know about AbbVie (NYSE: ABBV) is that it's a Dividend King. AbbVie's streak of dividend hikes now stands at 51 years in a row after the company's latest dividend increase was announced last week. But sales for AbbVie's top-selling drug, Humira, are about to decline with biosimilars hitting the U.S. market in 2023. | See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie Perhaps the most important thing to know about AbbVie (NYSE: ABBV) is that it's a Dividend King. AbbVie's streak of dividend hikes now stands at 51 years in a row after the company's latest dividend increase was announced last week. | See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie Perhaps the most important thing to know about AbbVie (NYSE: ABBV) is that it's a Dividend King. AbbVie's streak of dividend hikes now stands at 51 years in a row after the company's latest dividend increase was announced last week. | Next year will likely be the trough year for AbbVie's earnings. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie Perhaps the most important thing to know about AbbVie (NYSE: ABBV) is that it's a Dividend King. |
23037.0 | 2022-10-28 00:00:00 UTC | Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-aaplbkrabbvrokwba | nan | nan | Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock. The dividend is payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Baker Hughes announced today that the Baker Hughes Board of Directors declared an increased quarterly cash dividend of $.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. The dividend increase reflects a 5.5% growth rate, or $.01, over the previous quarter's dividend.
AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
The Board of Directors of Rockwell Automation, following its regular review, today declared a quarterly dividend of $1.18 per share on its outstanding common stock, payable Dec. 12, 2022, to shareowners of record at the close of business on Nov. 14, 2022. This increase from last quarter's dividend of $1.12 reflects continued strong operating performance and reinforces the company's commitment to returning profits to shareowners.
Walgreens Boots Alliance today announced that its board of directors has declared a quarterly dividend of 48 cents per share, unchanged from the previous quarter and an increase of 0.5 percent from the year-ago quarter. The dividend is payable on December 12, 2022 to stockholders of record on November 15, 2022. Walgreens Boots Alliance and its predecessor company, Walgreen, have paid a dividend in 360 straight quarters, more than 90 years, and have raised the dividend for 47 consecutive 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. | This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. | AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. | AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. | AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. |
23038.0 | 2022-10-28 00:00:00 UTC | AbbVie (ABBV) Q3 2022 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q3-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q3 2022 Earnings Call
Oct 28, 2022, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to the AbbVie's third quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations.
Liz Shea -- Vice President, Investor Relations
Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Rob Michael, vice chairman and president; Jeff Stewart, executive vice president, chief commercial officer; and Tom Hudson, senior vice president, R&D and chief scientific officer. Joining us for the Q&A portion of the call are Carrie Strom, senior vice president and president, global allergan aesthetics; Scott Reents, senior vice president and chief financial officer; Neil Gallagher, vice president, development and chief medical officer; and Roopal Thakkar, vice president, global regulatory affairs. Before we get started, I will note that some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.
Please make sure you've selected a ticker.
These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll briefly comment on our overall performance then Jeff, Tom and Rob will review our third quarter business highlights, pipeline progress and financial results in more detail. AbbVie continues to perform very well, a testament to the strength of our broad, diversified portfolio.
I'm especially pleased with the performance of our immunology assets, Skyrizi and Rinvoq. We delivered adjusted earnings per share of $3.66, exceeding our expectations. Total net revenues of $14.8 billion were up 5.4% on an operational basis, in line with our expectations. Immunology once again demonstrated impressive results with Skyrizi and Rinvoq now on pace to deliver more than $7.5 billion in combined sales this year, well ahead of our initial expectations.
This performance is especially encouraging, recognizing that we're in the early launch phase for both assets in IBD and PSA, as well as Rinvoq in atopic dermatitis. 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. We also saw a continued strong double-digit operational sales growth from several additional key products, including Botox Cosmetic, Vraylar, Venclexta and Botox Therapeutic. This strong momentum is helping us offset some of the interim economic pressure we now see in our Aesthetics portfolio.
Based on these results, we remain confident in the outlook of our business and are reaffirming the midpoint of our full year 2022 EPS guidance at $13.86, which represents strong double-digit growth. As many of you are aware, we have a leading consumer-facing aesthetics portfolio, which is largely cash pay. We have been monitoring the global economic situation. Based on all the data we have been observing, especially in the U.S.
with both the consumer confidence index and real personal consumption expenditures trending down and continued high inflation, these factors are putting pressure on consumers' discretionary spending. This metric correlates with a slowdown in treatment procedures that we're seeing across the aesthetics markets, impacting the growth rates for toxins, fillers and body contouring. While our U.S. aesthetics market share remains stable across both toxins and fillers, we now believe it's prudent to adjust our full year aesthetics forecast to reflect the moderating market growth over the near to medium term, which is expected to predominantly impact Juvederm, as well as our body contouring portfolio products, which represent higher price points for consumers.
While it's difficult to predict the duration of these economic dynamics, we expect these conditions to persist into 2023. As consumer confidence improves, we would once again expect the market growth to accelerate. Our aesthetics portfolio experienced a rapid and sustained recovery following the 2008-2009 recession, so we anticipate any impact will be transient. Over the long-term, the aesthetics business continues to be an extremely attractive, underpenetrated market with significant growth potential.
The current market dynamics do not change our long-term guidance for aesthetics and we remain confident in our ability to achieve total sales of more than $9 billion in 2029. I also want to provide a brief update on the outlook for 2023. With regards to the status of contracting for Humira, our intent has always been to maintain broad formulary access so that we can compete effectively with forthcoming biosimilars. We are making very good progress consistent with this objective, and are currently projecting formulary access for at least 80% of all U.S.
covered lives. We expect this percentage to increase further as we conclude additional contract discussions between now and the end of the year. As a result, we anticipate strong access for U.S. Humira throughout 2023, and project biosimilars will share access as they become available.
We will provide sales guidance for Humira on our fourth quarter call. While we're not issuing 2023 guidance today, it is important to note that when we issue our EPS outlook, we expect the lower end of the range to represent for earnings. So while it's possible 2023 could outperform our guidance regardless of the shape of the erosion curve, we don't anticipate 2024 earnings will be lower than the initial 2023 EPS guidance given the momentum and growth from another year of our ex-Humira portfolio, which is expected to more than offset any incremental Humira erosion in 2024. We know that many investors have an interest in the timing of AbbVie's trough earnings, whether that would be 2023 or 2024.
The guidance range will provide and give investors additional clarity regarding our expectations for the company's core EPS. In summary, we continue to deliver strong results and see numerous opportunities for our diverse portfolio to drive long-term growth. To that end, as noted in our news release, today we're announcing a 5% increase in our quarterly cash dividend from $1.41 per share to $1.48 per share, beginning with the dividend payable in February 2023. Since our inception, we have grown our quarterly dividend by 270%.
With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Thank you, Rick. We once again demonstrated strong and balanced growth across our therapeutic portfolio this quarter. I'll start with Immunology, where we are well-positioned for sustained leadership in this extremely attractive market. Total Immunology revenues were more than $7.6 billion, up 16.4% on an operational basis.
We remain very excited about the long-term potential for Skyrizi and Rinvoq which are already having a significant impact on AbbVie's growth and performance, contributing approximately $2.1 billion in combined sales this quarter, representing nearly 15% of total company net revenues. Skyrizi continues to exceed our expectations. Global revenues were $1.4 billion, up 12% on a sequential basis. In psoriasis, Skyrizi is capturing nearly one out of every two new and switching patients in the U.S.
biologic market, with our leading total prescription share increasing to approximately 27%. We have also achieved total market share leadership in a dozen key international markets, including Japan, Canada and France. Psoriatic arthritis is ramping very nicely, with an expected global sales contribution of approximately $500 million just this year. Our PSA performance is especially strong in the U.S.
Dermatology segment, where we have already achieved 10% total market share. Lastly, our launch of Skyrizi for Crohn's disease in the U.S. is progressing very well. Early prescription trends, as well as feedback from gastroenterologists has been overwhelmingly positive, especially given Skyrizi's convenient dosing and strong clinical profile.
Importantly, commercial access for Skyrizi Crohn's is now equal to psoriasis and PSA with sales in this indication expected to ramp significantly over the next several quarters. Given the momentum we are seeing across the indications; we will be raising our full year sales guidance once again for Skyrizi. Turning now to Rinvoq, which delivered global sales of $695 million, demonstrating more than 17% sequential growth, we continue to see positive momentum in RA, with total market share increasing to more than 6% in both the U.S. and across key international geographies.
Global prescriptions are also ramping nicely in PSA ankylosing spondylitis and non-radiographic axial SpA, a testament to the strong clinical profile Rinvoq has demonstrated across the broader rheumatology segment. Rinvoq is now the only JAK inhibitor with global approval for all four major room indications. In atopic dermatitis, we continue to see strong demand for Rinvoq, particularly in the second-line setting. U.S.
in-play market share is tracking in line with our expectations and we were making excellent progress internationally, with in-place share ranging now from approximately 20% to 35% across our major markets. AD remains a highly underpenetrated market globally and an attractive long-term growth opportunity for Rinvoq. Lastly, in ulcerative colitis, we are very excited by the early prescription trends in the U.S. In the second line plus setting, Rinvoq is already achieving the second highest in-place share, which is now approaching 20% in just a few months' post launch.
Physicians have been pleased with Rinvoq's high rates of endoscopic healing, as well as the speed of onset. With over 70% of bioexperience UC patients currently on or having used TNF therapy, the second line plus opportunity for Rinvoq in UC is substantial. This strong adoption in UC among gastroenterologists is also encouraging for Rinvoq's potential in Crohn's disease as well. We are on track for U.S.
and EMA regulatory decisions in the first half of 2023. Global Humira sales were approximately $5.6 billion, up 3.9% on an operational basis with 7.4% growth in the U.S., partially offset by international performance where revenues were down 16.8% operationally due to biosimilar competition. Turning now to hematologic oncology, where total revenues were $1.65 billion, down 9.9% on an operational basis. Imbruvica global revenues were approximately $1.1 billion, down 17.4%.
The U.S. performance continues to be impacted by an incrementally challenging CLL market, with new patient starts down approximately 20% relative to pre-COVID levels. Given the U.S. CLL market has been consistently lower than our expectation in the past several quarters, we are now reducing our view of the total size of the addressable patient population for this indication going forward.
We also anticipate further share erosion following the recent unfavorable change to the NCCN guideline preference for Imbruvica in CLL, as well as increasing existing and new competition. These market and shared dynamics are expected to have a flow through impact on Imbruvica's 2023 performance. Venclexta global sales were $550 million up 11.3% on an operational basis. Continued share gains across both approved indications are being partially offset by a softer CLL market in the U.S.
and a higher foreign exchange impact on international revenues. As a result, we will be adjusting our full year sales guidance for Venclexta. Longer term, we anticipate our oncology portfolio will return a growth driven by several promising new products and indications such as epcoritamab for DLBCL, and follicular lymphoma, Venclexta new indications for multiple myeloma and high-risk MDs; navitoclax for myelofibrosis; and Teliso-V for nonsquamous non-small-cell lung cancer. We are beginning launch preparedness activities for several of these important opportunities and look forward to bringing new treatment options to patients.
In neuroscience revenues were nearly $1.7 billion, up 8.3% on an operational basis. Vraylar once again delivered strong growth. Sales of 554 million were up 20.2% on an operational basis reflecting continued market share momentum. We continue to anticipate the regulatory approval and the commercial launch of Vraylar as an adjunctive treatment for major depressive disorder this quarter, which would make Vraylar the only antipsychotic, as a dual partial agonist approved to treat the most common forms of depression, both bipolar I, and adjunctive, and DD.
Within migraine, our market leading oral CGRP portfolio contribute $222 million in combined sales this quarter. Ubrelvy prescriptions increased high single digits sequentially while total revenues were unfavorably impacted by a one-time prior period accrual adjustment of $40 million related to patient access program costs. Excluding this one-time adjustment, Ubrelvy sales were up more than 20% versus the prior year. Qulipta revenues nearly doubled sequentially as we continue to make very good progress with commercial access.
Potential label expansion in the U.S. as a preventative treatment in patients with chronic migraine and new therapy approvals in Europe represent additional opportunities to support Qulipta's strong momentum. Botox Therapeutic is also performing very well with total sales of $699 million, up 10% on an operational basis. In chronic migraine, which accounts for roughly 45% of our therapeutic sales, Botox remains a foundational preventative treatment, and the clear branded leader for existing, as well as new patient starts.
Lastly, our launch preparations are underway for ABBV-951, a potentially transformative next-generation therapy for advanced Parkinson's. We anticipate approval in the first half of next year and believe ABBV-951 has the potential to achieve peak sales in excess of $1 billion. So overall, I'm very pleased with the momentum across the therapeutic portfolio, which is demonstrating strong revenue growth. And with that, I'll turn the call over to Tom for additional comments on our R&D programs.
Tom?
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Thank you, Jeff. In the area of immunology, we had several important regulatory milestones since our lastearnings call receiving FDA approval for Rinvoq in non-radiographic axial SpA and positive CHMP opinion for Skyrizi in Crohn's disease. These developments demonstrate the continued progress we are making with a global indication expansion of our next-generation immunology assets. In the quarter, we also saw longer term data from our phase 2 study for Rinvoq in systemic lupus, where strong responses and flare reductions continued through 48 weeks of treatment.
Based on these results, we plan to advance Rinvoq development in this indication and will be discussing our phase 3 program with regulatory agencies in the coming months. Now, I would like to provide a few updates on our earlier stage immunology pipeline. We recently began a phase 2 study in ulcerative colitis for our RIPK1 inhibitor, ABBV-668. This small molecule inhibitor is designed to address chronic inflammatory diseases by preventing necroptosis and reducing TLR4-driven inflammation.
This could be a differentiated approach that has a potential to provide significantly improved efficacy to patients suffering from ulcerative colitis. We look forward to providing updates as data mature. Turning now to ABBV-154, our anti-TNF steroid conjugate, which is being evaluated in multiple indications. We recently completed the primary analysis for the phase 2 dose-ranging study in RA patients.
The hypothesis for this program was that by delivering the steroid directly to the site of inflammation, you could drive higher rates of efficacy with limited or no effects of systemic steroid exposure. In this study, all doses of ABBV-154 met the primary endpoint of ACR50, as well as the majority of secondary endpoints at week 12. At the medium and high doses, ABBV-154 delivered ACR scores that are similar to Rinvoq or slightly better, which validates the platform's ability to drive high levels of efficacy. The safety profile for ABBV-154 was generally consistent with the safety profile for adalimumab.
As part of our safety assessment in this study, we analyze metabolic parameters including cortisol levels. The data showed minor decreases in cortisol levels at the higher exposures, which are consistent with evidence of systemic steroid effects. Given the number of effective therapies available in RA and a more limited use of steroids in these patients, we do not plan to move forward in development for the RA indication. However, we continue to believe ABBV-154 has the potential to provide a benefit in other diseases such as PMR and Crohn's disease, where steroid use is part of the typical treatment paradigm.
Our exploratory phase 2 studies in these two indications are ongoing and we expect to see data from the PMR study in 2023 and from the Crohn's study in 2024. Also in the area of immunology, we recently made the decision to stop the clinical studies and discontinue development for ABBV-157, our RORyt inverse agonist. This decision was made due to new findings observed in our preclinical chronic toxicology study. Moving now to our oncology portfolio where we continue to make excellent progress across all stages of our pipeline.
We recently submitted our regulatory application in Europe and our partner, Genmab, submitted an application in the U.S. for epcoritamab in relapse-refractory large B-cell lymphoma. We're seeking accelerated approval based on the positive phase 2 study results for epcoritamab in this indication where we saw very deep and durable responses in these highly refractory patients. We expect decisions in both U.S.
and Europe in 2023. We are also nearing completion of the registrational studies for two additional key programs in our heme/onc portfolio; Venclexta in multiple myeloma; and navitoclax in myelofibrosis. We remain on track to see results from the phase 3 CANOVA trial in relapsed/refractory multiple myeloma patients with a t(11;14) mutation near the end of this year. Following the event-driven data readout, we anticipate submitting our regulatory applications in the first half of next year.
For navitoclax, we remain on track to see data in the first half of next year from both the phase 2 REFINE and the phase 3 TRANSFORM-1 trials. Results from both studies will be included in our regulatory submissions, which we expect in the second half of 2023. Moving to neuroscience where we have applications under active review for several key assets. We anticipate a decision from the FDA in December for Vraylar as an adjunctive treatment for major depressive disorder.
We believe Vraylar has a potential to be an important new therapy in this patient population and we look forward to bringing this new treatment option to patients. We also expect a decision from the FDA in the first half of next year for a ABBV-951, our innovative, subcutaneous level levodopa/carbidopa delivery system for treatment of advanced Parkinson's disease. And in the area of migraine, we have regulatory applications under review in both the U.S. and Europe for Qulipta as a preventive treatment for patients with chronic migraine with decisions expected in the first half of next year.
If approved, this would be another differentiating future for Qulipta as it would be the only oral CGRP approved for prevention in patients with chronic migraine. This is a common and debilitating disease that significantly impacts quality of life, and we look forward to making this new oral treatment option available to patients once approved. And in eye care, our partner REGENXBIO recently announced positive interim data from the phase 2, AAV8 dose escalation trial for RGX-314 using in-office, suprachoroidal delivery for the treatment of wet AMD. RGX-314 continues to be well tolerated with no drug-related serious adverse events, and a meaningful reduction in treatment burden was observed at six months across all dose levels.
Two pivotal trials evaluating RGX-314 for wet AMD using subretinal delivery are active and enrolling patients. So in summary, we've continued to make significant progress advancing our programs this year and we look forward to many more important pipeline milestones in the remainder of this year and into 2023. With that, I'll turn the call over to Rob for additional comments on our third quarter performance and financial outlook. Rob?
Rob Michael -- Executive Vice President, Chief Financial Officer
Thank you, Tom. AbbVie's third quarter results demonstrate the strength of our broad portfolio. The continued robust performance from Skyrizi and Rinvoq are helping offset the impact from higher inflation and the stronger U.S. dollar.
We reported adjusted earnings per share of $3.66, which is $0.11 above our guidance midpoint. These results include a $0.02 unfavorable impact from acquired IPR&D expense. Total net revenues were $14.8 billion, in line with our guidance and up 5.4% on an operational basis, excluding a 2.1% unfavorable impact from foreign exchange. The adjusted operating margin ratio was 53.4% of sales.
This includes adjusted gross margin of 85.4% of sales, adjusted R&D investment of 10.8% of sales, acquired IPR&D expense of 0.3% of sales, and adjusted SG&A expense up 20.9% of sales. Net interest expense was $497 million, and the adjusted tax rate was 12.9%. Turning to our financial outlook. We are narrowing our full year adjusted earnings per share guidance to between $13.84 and $13.88.
This earnings per share guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond the third quarter. We now expect net revenues of approximately $58.2 billion, reflecting growth of 5.5% on an operational basis. At current rates, we expect foreign exchange to have a 1.9% unfavorable impact on full year sales growth. Included in this guidance are the following updated assumptions.
We now expect Skyrizi global sales of approximately $5.1 billion, an increase of $300 million due to strong market share performance. For Venclexta, we now expect global revenue of approximately $2 billion, based on a lower market outlook in CLL and unfavorable foreign exchange. For Aesthetics, we now expect global revenue of approximately $5.3 billion, given the impact of higher inflation on near-term market growth and due to unfavorable foreign exchange. Moving to P&L, we now expect adjusted gross margin of approximately 85% of sales and forecast an adjusted operating margin ratio of approximately 52% of sales.
Turning to the fourth quarter, we anticipate net revenues of approximately $15.2 billion. At current rates, we expect foreign exchange to have a 2.5% unfavorable impact on sales growth. We expect adjusted earnings per share between $3.65 and $3.69. This guidance does not include acquired IPR&D expense that may be incurred in the quarter.
Finally, AbbVie's strong business performance continues to support our capital allocation priorities. We generated $17 billion of free cash flow in the first nine months of the year, and our cash balance at the end of September was $11.8 billion. Underscoring our confidence in AbbVie's long-term outlook, today we announced a 5% increase in our quarterly cash dividend, beginning with the dividend payable in February 2023. And we remain on track to achieve $30 billion of cumulative debt paydown by the end of this year, bringing our net leverage ratio to 1.8 times.
In closing, AbbVie's strong performance allows us to reaffirm earnings expectations in the face of economic pressure. And with our diverse portfolio, we continue to be well-positioned to deliver long-term growth. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President, Investor Relations
Thanks, Rob. We will now open the call for questions. [Operator instructions] Operator, we will take the first question.
Questions & Answers:
Operator
Thank you. Our first question is from Chris Schott from J.P. Morgan.
Chris Schott -- JPMorgan Chase and Company -- Analyst
Great. Thanks so much. Just my question is really centered around Humira. And I know you -- appreciate some of the access commentary you made at beginning of the call, but are there any surprises so far in these discussions as we think about where either rebates or prices settling out for Humira? And I'm really sure I was trying to get my hands around, I think previously, you've commented you expected U.S.
Humira erosion to be down roughly 45%, plus or minus 10%. And I just was wondering if that range holds given what you know today about the negotiations? And if I could just do a quick follow -- second question, immunology. There was a European JAK update out this morning, and I just was wondering any impact you expect to the Rinvoq franchise for that? Just maybe some context about how relevant, I guess, Europe was as part of the mix? And does that label update kind of impact your outlook at all? Thanks so much.
Rick Gonzalez -- Chairman and Chief Executive Officer
OK, Chris, this is Rick. I'll cover part of that question, and then I'll have Jeff fill in on any additional commentary around the contracting. I think first, if we talk about the 45%, plus or minus 10%, that is the range that we gave. We're obviously working on doing the final forecasting for 2023.
As we've said in the past, there are two major components, which will play into that forecast. One is how are the biosimilars priced, that will certainly have some impact. We won't know that until we actually get into the market and start to see some of that activity. But the other big component is obviously our coverage, our access coverage for Humira and the position that Humira has on those formularies.
I would say that negotiating by Jeff's team is going very well. As I mentioned in my comments, we're at about 80% of all covered lives now, and I would expect that to rise to a level that's above 90% as we move toward the end of the year. Once we have a final number there, it will allow us to do the final modeling for 2023, and that's at the point where we'll be able to refine that 45% plus or minus 10%. I'd tell you it's going on track.
I would say there's no surprises, and I'd say I feel good about how the negotiations are going with all the major managed care organizations and PBMs. Jeff, anything you'd add there?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
No. Just to confirm, Rick, that no real surprises in terms of where we've been. And as we've communicated before, our principles of co-existing over time with one or more biosimilars seems to be the way that the market will play out. And certainly, like we saw in Europe that we had the principle of -- for patient continuity to concede pricing to maintain that patient access.
So Chris, no major surprises that we've seen so far.
Rick Gonzalez -- Chairman and Chief Executive Officer
And then do you want to talk about PRAC? Maybe you and Roopal, can talk about PRAC.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Maybe, Roopal, you could address the procedure and where we are in the procedure, and I'll cover the commercial.
Roopal Thakkar -- Vice President, Regulatory Affairs
Yeah. Thanks, Jeff. I'll give some context. So the next step here after PRAC would be moving to the CHMP here in November, and then the European Commission should finalize this.
We expect December or January. So PRAC completed their review, and what we see in the labeling is an update in warnings, and this is related to outcomes of the oral surveillance study. And in particular, in Section 4.4, which is the warnings, there's a list of subgroups that were found to be at risk based on analysis from oral surveillance. For example, patients greater than equal to the age of 65, those that are at risk for cardiac events, smokers, for example.
And in these patients, the use of JAK inhibitors would be after a consideration of other therapies, if I'm paraphrasing, if no suitable alternatives. So this is consistent with the practice of medicine. It provides specific guidance, and we would say pragmatic at this stage.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. And Chris, to that point, I mean, this is largely consistent with what we see from oral surveillance and the Xeljanz label, which is widely sort of understood by the European physicians. And so to cut to the quick, we don't anticipate a material impact as this continues through the process.
Liz Shea -- Vice President, Investor Relations
Thanks, Chris. Operator, next question please.
Operator
Thank you. Our next question is from Tim Anderson from Wolfe Research.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. I was under the impression that we get more granularity on Humira erosion this quarter, and you're saying that's really going to come in Q4. So, I'm wondering did I kind of not hear it right before, or has something changed? And then second question is just on contracting in general, my understanding is that payer contracts, really not rock solid. They can be reopened when there's a change in the marketplace on things like pricing, in this case of biosimilars.
So, when we do kind of get whatever next level of guidance we get from you, isn't that going to continue to remain fluid? Because market dynamics won't all play out as of January, we'll get to mid next year, you'll get more entrants, you'll know pricing better and that sort of thing? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
Yeah, Tim, this is Rick. I'll cover that one. So, I think we've talked a number of times on these calls about what we project in the third quarter call, and I believe what we said is that we would ultimately provide you an update on where we were in the process. And so that's what we attempted to do.
I can't give you a number for 2023 until I know what the total access is, and not all those contracts are done yet. They're proceeding well, so I feel good about that. But until we actually know that the contract is solid and we know what that access looks like, we can't give you an accurate projection. And I understand the desire by the investment community.
I understand what that number is, but I think you probably also understand that we want to give you the most accurate number that we can give you, and we don't want to give you a number that's not accurate. And so it is going to require us until we get to the fourth quarter call to provide that for you. You are correct, in a sense, about the way you describe how these contracts work. They can be reopened at some point in time.
I wouldn't say that's all that common usually, and in particular, I'd say around this kind of a situation, you're going to anticipate what you think is going to happen in the second half of the year and try to position the contract in a way that it can ultimately deal with those changes going forward. But you are correct to say that they could reopen a contract if they chose to do that. There are various kinds of contracts that we use. In some cases, there are penalties or repercussions that would have to come into consideration if a contract got reopened at some point in time.
They're not all like that, but many are like that. So it varies. And I'd say generally speaking, your concept is valid. But I would say it's probably a little less fluid than the way you necessarily described it, particularly in this environment where we know there will be a number of biosimilars coming in.
So you anticipate that we've built the contracts around that set of assumptions. Jeff, anything you'd add?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
No, I think, Tim, Rick described it in the right way. While there are typically, there are typically out clauses based on timing or other dynamics. I think one of the considerations is obviously, as we've highlighted before. Most of the biosimilars are going to be coming in the second half of the year.
So to some degree, that actually limits if it was a rare case. And they typically are rare where a contract is blown up or renegotiated in the middle of the year. That length of time that's left in 2023 for some of those payers to let's take a negative action puts some natural constraint on them in terms of when they would time that out. But Rick highlighted it very nicely in terms of the dynamics.
Liz Shea -- Vice President, Investor Relations
Thanks, Tim. Operator, next question please.
Operator
Thank you. And our next question comes from Mohit Bansal from Wells Fargo.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Great, thanks for taking my question. And maybe one more question on the contracting side. Could you help us understand if the pricing part of the contracts is something that you have a good handle on at this point? And then a follow-up question is that how do you think about the cadence of BD activity once you hit the mark of less than two times leveraged by end of the year? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
Jeff, do you want to cover that?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah, so look, in terms of what Rick had highlighted in terms of our confidence in projecting the 80%. Obviously, there's a couple components to that. So we have -- while all the contracts aren't fully complete with the ones that we've done. We've done some significant modeling work to understand if we're retaining the ability to stay on the formulary.
We would model our volume like how much would we retain versus would go to one or more biosimilars. That's something that we can understand. And we have made base case, both first half and second half pricing assumptions based on those contracts. Now what's been highlighted in the last couple of questions is there's still uncertainty on the rest of the contracts that are yet to been secured and also a bid on that second half price dynamic.
So those are the elements that are going to give us more confidence as we go to the fourth quarter call to give everyone a secure number for next year.
Rick Gonzalez -- Chairman and Chief Executive Officer
This is Rick. I'll cover your business development question. I think if I step back and I look at where are we today. We have been for the last several years operating with an approach of roughly $2 billion to add incremental pieces to the business.
We've effectively used that over the last several years to be able to build some additional, particularly, I'd say early stage pipeline assets to the company. We're continuing on that same approach right now. Now having said that, we obviously have paid down debt very rapidly. We will be in a position where if we chose to do something, we could do something.
I'd say if I look at the business today and I look at how it's performing around the expectations that we had for the business going forward, I would say there's no need for us to be able to do anything in that area. And I'd go back to the original premise of what we described to the investment community of what we believed would happen when biosimilars entered the U.S. market for Humira. What we said was that we believe the bulk of the erosion would occur in 2023, some additional erosion in 2024, in 2025 and beyond.
We would return to significant growth. We'd be able to deliver high single digit growth from that point forward through the end of the decade. That's what we said. Everything I know about the business today would suggest to me that we are able to do just that.
And we're confident that we're able to do that with the portfolio we have and the late-stage pipeline and additional indications that we have coming forward. Having said that, I can also tell you that, over the last 10 years, we've demonstrated to ourselves and hopefully to you that we can acquire businesses and assets and we can integrate those and we can successfully drive those. And so if we found something that we thought was very important to add to the business, we certainly have the financial wherewithal and this business has tremendous cash flow. We could do that.
I can tell you we don't see that right now. So I wouldn't assume that. And the other thing I'd point out is, as an example, the most important thing, and I know everyone is focused on what that erosion curve is going to look like, including us, to be honest, but -- and I know why. But probably the single most important thing for us going forward to hit what I described to you a moment ago is that underlying non Humira business growing at a rate that it can drive those expectations.
And that's key and I'd say there's two factors that are most important around that. The first is that Skyrizi and Rinvoq grow fast enough that they can more than offset that they can essentially grow through all of the erosion that occurs on Humira and deliver incremental performance of above and beyond that. And I feel highly confident in that. I mean, when you can look at the trajectories of those assets now in the early phase we're in right now in IBD and PSA.
I would say, I have a very high level of confidence that they will perform at that level or well above that level. Then the second thing is all the other growth assets they have to be growing fast enough that they can get us to be able to grow at that rate that I described. And if you take this quarter as an example, and you look at the business without Humira, the underlying growth is about 6.5%. And remember that 6.5% is absorbing the economic impact we see in the aesthetics business and the market and competitive dynamics that we see in Imbruvica.
So that's -- that tells you that underlying growth is pretty strong. And so I think those are the important things that investors have to focus on. And the erosion curve is certainly one of those. And I'm sensitive to the fact that you want to know when you're going to hit trough earnings, and I recognize that.
And that's why we wanted to provide you some assurance of what that trough earnings is going to look like.
Liz Shea -- Vice President, Investor Relations
Thanks, Mohit. Operator, next question, please.
Operator
Thank you. Our next question comes from Terence Flynn from Morgan Stanley.
Terence Flynn -- Morgan Stanley -- Analyst
Hi, thanks for taking the questions. Maybe two for me. Rick, I appreciate your comments on 2023 and the aesthetics business. No, you don't want to give guidance.
But I guess at a high level, do you think you can grow that franchise next year versus this year? And then on epcoritamab, congratulations on the filing there. Just wondering what you're expecting regarding the requirement for inpatient administration. J&J recently got approval of their bispecific and myeloma and looks like there's a requirement there for inpatient administration of the drug during the step up period. So just wondering how we should think about inpatient versus outpatient dosing of epco? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
OK, excellent. Thanks, Terence. I'll cover the first one. So if I look at the aesthetics business, we're clearly seeing this economic pressure in the U.S.
And I would expect that we will see that to continue into 2023. Certainly, it's difficult to predict what will happen in the U.S., will it get worse? Will we go into a recession? Will it stay about the same? I'd say, we're looking at this extremely carefully. But good news right now I would say is that the factors that we're looking at that seem to be driving this consumer confidence and behavior the most in the U.S., appeared to have stabilized at the levels that they're at. And so I would say that's a positive thing.
Now it's fluid because obviously if the economic situation got worse in the U.S., my guess is they would trend down again. And so -- but at least it appears right now that they've stabilized and maybe even ticked up just a little bit, moved in a positive direction just a little bit. I think it's very difficult to predict. Here's what I would assume.
I would assume that a significant part of 2023 we will have an impact on it. Now also recognize that we saw this phenomena as we said in the last call start in May. We weren't sure at the time whether it was the summer season starting a month early or it was the economic impact, because we had been watching the indicators and they trend down several months ahead of that. But we didn't see an impact until the month of May.
So the point is, when we hit May and beyond, we're going to be lapping the impact. So the negative impact will be softened on the business. So we'll return to better growth rates no matter what just mathematically, right. So -- but I think the best prediction we can have is it's going to have an impact in a good part of 2023.
I think it's the best way for us to think about it. Now again, the rest of the business has an opportunity to be able to offset that as we saw in this quarter.
Rob Michael -- Executive Vice President, Chief Financial Officer
And this is Rob. I would just add that if you think about more long term. If you think about what happened in '08 and '09, the business declined high single digits and then we saw, after that very robust growth in the mid-teen to the next decade. So given that penetration rates are still very low today.
There's clearly ample opportunity to grow this market. I think once you get on the other side of the economic impact which we expect to be transient. We still expect as business to deliver long-term growth as Rick highlighted earlier, we're still on track for that. Long-term high single digit growth getting to greater than $9 billion by 2029.
So we'll have to navigate, obviously, the short-term economic impact. But we still have tremendous confidence in the long-term outlook for aesthetics.
Rick Gonzalez -- Chairman and Chief Executive Officer
Epco?
Neil Gallagher -- Vice President, Development and Chief Medical Officer
Hey, this is Neil Gallagher. I will take the epco question. So the first thing I just want to caution, put a word of caution before I answer your question directly around inpatient stay, which is that the patient population that our competitors studied with the BCMA, CD3 is quite different in terms of overall benefit risk. So the indication that was granted was in fifth line plus multiple myeloma, which is very heavily pretreated and frail population.
So to extrapolate any interpretation of benefit risk from that population into the relapsed/refractory DLBCL population that we have studied and filed for with epcoritamab would not be valid, so just a word of caution there. That said, the study that we have filed had required for a 24-hour patient stay overnight -- one overnight stay. However, in subsequent studies we are aiming to remove that requirements so patients would not require -- be required to remain overnight. And we do believe because of the emergent and stable overall benefit risk for epcoritamab, a couple of things that we believe that it has the potential to be best-in-class, and we also believe that our strategy to remove overnight stays is a very valid one and reasonable one to pursue.
Hope that answered your question.
Liz Shea -- Vice President, Investor Relations
Thanks Terence. Operator, next question please.
Operator
Thank you. Our next question is from Andrew Baum from Citigroup Global.
Andrew Baum -- Citi -- Analyst
Thank you. A couple of questions please. First on in Imbruvica, I'm assuming that Imbruvica is going to be included in the top 10 CMS lists for price negotiation under Medicare next year. Assuming that's correct what do you think about the impact on net pricing from Imbruvica.
Do you anticipate pricing -- net pricing coming under pressure prior to 2026, given the contracting that's expecting to take place among your competitors to secure favorable positions given their catastrophic coverage burden on PBMs post the IRA implementation? So is the impact going to get brought forward for the class including for Imbruvica before you actually get the price cut coming? And then then seconds with epcoritamab, there's been some interesting data on the importance of profound B-cell depletion in lupus using CAR T assets, as CD20 bispecific could get to a similar level. I'm wondering whether you have interest in pivoting epcoritamab and exploring it in refractory lupus as one of your competitors already is particularly given you have a subcu administration, which obviously has some advantages? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Hi Andrew, it's Jeff. I'll take your first question. So when we -- obviously we're still studying very carefully the IRA and we're also discussing directly with CMS not just through pharma, but our own company in terms of how they're going to basically select the different drugs that will be negotiated.
That's a little bit unclear at this point. It's not unreasonable based on the size of Imbruvica to suspect it will be one of the earlier drugs that could potentially be negotiated, so just to clear that. In terms of what may take place before that potential negotiation in 2026, I would expect to see some modest changes in rebate. We see very small levels at this point now but we do have a third competitor coming.
So that would be something that we would continue to plan for as we move into that potential event.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Yeah. This is Tom. Maybe I'll answer the lupus question. First, I'll say it's actually was very exciting to see that paper showing that B-cell depletion can actually put patients with very severe lupus in remission.
It's a very small study. Some five patients, but everyone's looking at this as a -- even with a surprise because we used to think we had to affect many mechanisms themselves in lupus. So that was one of the reasons it's so difficult. I used to be part of a lupus clinic in Montreal, so I know the challenges with patients.
So what we're looking at right now is we're asking yes, the answer to your question is can we use our existing assets and collaborations to see if we can do B-cell depletion, for as a treatment for lupus? The answer is yes. And the type of questions we're asking ourselves is, do we have to have as deeper depletion as we have with in heme malignancies? Nobody knows the answer. That might be important because if you have to have a very deep depletion it might be restricted more to more of the severe patients and again that would be an advantage. But if we want to go to all lupus patients because not all lupus patients are, are flaring all the time.
The majority have a normal life. Go to the clinic once a year and just see their physicians when they have flares. So going to a very deep regimen for B-cell depletion might be deemed to too severe. So the questions is yes we're looking at it and trying to figure out what's the right regimen and how to approach that in lupus is very exciting questions, which we're obviously looking into.
Liz Shea -- Vice President, Investor Relations
Thanks Andrew. Operator, next question please.
Operator
Thank you. Our next question comes from Steve Scala from Cowen.
Steve Scala -- Cowen and Company -- Analyst
Thank you. What is your level of confidence in a positive outcome for Vraylar in MDD at the end of the year? I imagine the review is well along, so you probably have good visibility. So for instance our labeling discussions underway, is the sales force being trained, etc. This is a very large opportunity that does not seem to be a point of external focus as far as I could tell.
So I'm wondering what you could tell us about how things are going. Thank you.
Roopal Thakkar -- Vice President, Regulatory Affairs
Hi, it's Roopal. Thanks for the question. Maybe I'll go and then Jeff can talk about the opportunity. You're correct, the review is proceeding per our expectations.
We have two positive studies in the space. I mean, recall, we also have the same endpoint -- the depression endpoint that's read out in three other bipolar depression studies that are already within label. So there's quite a bit of evidence that's already been generated, that's in front of the agency now. So I would say it's proceeding well and we still anticipate a decision by year end.
And I'll pass it to Jeff.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Steve, and just in terms of your salesforce question, I mean, we are very encouraged and excited about this potential approval. I mean, obviously we continue to gain share week-by-week sequentially for our base indication -- the bipolar indications. And we know that based on the profile that we have with Vraylar.
So very, very strong efficacy -- proven efficacy of a very good tolerability profile for an antipsychotic, no material weight gain, low metabolic effects, and I think importantly maybe not as appreciated it's -- there's no titration. You have a very simple starting dose of 1.5 milligrams. So as we do our research, we see that that profile is very strong as this potential add-on therapy and depression. In the last decade there's been only one drug that's been approved for this indication and that's Rexulti, and we think that's a branded drug, obviously, and we think we can compete very, very well.
So we have a big existing sales force and infrastructure. We are gearing up in terms of training. We have the established relationships across the big primary care doctors, as well as the psychiatrist. So we are -- we agree with your approach.
That's a meaningful commercial opportunity that could evolve very quickly here once we get the approval.
Liz Shea -- Vice President, Investor Relations
Thanks, Steve. Operator, next question please.
Operator
Thank you. Our next question is from Gary Nachman from BMO Capital Markets.
Gary Nachman -- BMO Capital Markets -- Analyst
Thanks. Good morning. First could you just provide some more color on how much of a benefit you're seeing for Skyrizi and Rinvoq and IBD? As you've been spending more time with the GIs, and have your outlooks changed on a potential there as major contributors to the long-term growth for those franchises? So where are both of those being used in the treatment paradigms for the respective indications in Crohn's and ulcerative colitis? So that's one. And then secondly, just opex came in much lower than we expected, so you seem to be getting better operating leverage than what you originally guided.
Are there areas where you've scaled back in spending, whether in Aesthetics or heme/onc if there's pressures there? And how will you be thinking about that into the Humira LOE next year? So how much additional flexibility might you have on the spending side? Thanks.
Rick Gonzalez -- Chairman and Chief Executive Officer
Jeff?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. I'll take the IBD question. I think we've mentioned before that the IBD has been a very important part of our long range plan and when we gave the 2025 guidance, it looks relatively small because they're just ramping now. I would say that as AbbVie we are very, very encouraged.
As I mentioned in my prepared remarks on the launch, and maybe I'll start with what we're hearing from the gastroenterologists. I think first is they, they look at both assets and the global guidelines, the impressions and the clinical approach that we hear from the top leaders and also the community gastros is this idea over, I have to start to think about endoscopic healing, higher basically rates of efficacy and more significant clarity on what it's doing in the bowel versus just symptoms. And that seems straightforward, but we see the market moving very, very fast there in terms of understanding and that's what we can deliver, whether it's the Skyrizi data on the endoscopic healing rates with a very, very convenient and strong safety profile, or similar on the Rinvoq side in second line in the U.S. second line for patients that aren't doing well in UC.
So we see rapid adoption already as I mentioned, that in the Rinvoq in the United States will be a second line plus based on the label. And we see very, very fast adoption. I'll give you some color on it. Xeljanz had been approved and is approved in UC in the United States, but basically it had very low adoption.
We're seeing now in the community that 70% of the prescriptions are coming from physicians that have never written a JAK before. So it shows you that the clinical profile of Rinvoq in terms of its speed and the depth of the response is being viewed very, very well. So not only is that encouraging for Rinvoq, you see as I mentioned we're going to have the approval for Crohn's for Rinvoq in later lines next year as well. Skyrizi continues to surprise us to the upside, as you've heard from the call today.
This is viewed increasingly as the preferred frontline drug coming straight out of the gate for Crohn's in the U.S. And the qualitative data that we're starting to see, and we are seeing some quantitative data that looks very strong, too, is that this is viewed as a already as a best-in-class product for Crohn's, which is a very, very substantial market. So we are very encouraged. We continue to say that the IBD is probably underappreciated, and we'll continue to give updates as these launches progress.
Rob Michael -- Executive Vice President, Chief Financial Officer
So Gary, this is Rob. I'll take your question on opex. If you look at the benefit we're seeing, about half of it is actually coming from the stronger U.S. dollar, so it's more of an FX impact.
The other half is spend productivity. We always look for opportunities to drive more productivity in our spend. It's not so much about scaling back in parts of the business, we always look for ways to spend better, buy better. And ultimately, that helps us.
In many cases also, over the long-term, redeploy that investment to drive growth. If you think about '23, I've said, given that 46% to 47% operating margin directional input. I've also said we're not going to cut back investment. We'll obviously be prudent given that you will see a decline in gross margins next year, but we're not going to be cutting back investment because we expect to return to growth quickly.
So you'll see us not necessarily cut back, but certainly put more behind this business to drive that long-term growth that we expect to be industry-leading over the long term.
Liz Shea -- Vice President, Investor Relations
Thanks, Gary. Operator, next question please.
Operator
And our next question comes from Colin Bristow from UBS.
Colin Bristow -- UBS -- Analyst
Hey, good morning. Thanks for taking the questions. So first on CF, you recently posted an updated clinical trials for your new C2 corrector-based regimen. I just wondered if you could walk us through what gives you confidence that this has a higher probability of success versus your last deterioration? And then second one for Rick, I just wanted to touch base on your succession plan.
It's been an increasingly sort of important or a frequent topic with investors. You've been the architect of AbbVie's success inception, and so just wanted to confirm specifically how long you expect to stay in the seat? And then how should we think about the time lines around the process of identifying your successor? Thank you.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Well, this is Tom, I'll answer the CF question. Again, this is very challenging to actually make that abnormal CF protein get to the membrane and act as a chloride channel, and it takes three different drugs to make it effectively to get it to the cell membrane and open up in the right way. And so we all felt that we had intakes, we call them Corrector 1, Corrector 2 and Potentiator, these three different compounds. We always see good results with double our C1 corrector.
We think it's best-in-class. Our potentiator is very good. What we had difficulty is to get a good C2 corrector, and what I presented earlier this year was that it wasn't good enough. But what we've done since then, we will continue to look at better ones and we came out with a differentiated product, 576, which is structurally different and the data supports higher safety margin, higher exposures, good PK.
Hopefully, a single pill. And then we'd be able to get to this -- to be able to have this triplet which is really important to be competitive. So again, our doublet, the data we had was very strong. But we need that third piece, and that third piece seems to be coming along really well.
That's what you really saw on the website at ct.gov is moving to evaluate this triple combo with our new C2 corrector.
Rick Gonzalez -- Chairman and Chief Executive Officer
And this is Rick on the succession question. I'd say that, we obviously have a very experienced board, and we've had an active approach on succession going back to about 2016, 2017. And that process has proceeded extremely well in developing internal candidates to ultimately assume the role when I do retire. I can tell you that there are no plans at all for me to retire in 2023.
The most important thing to me and to the board is to make sure that the business is performing exactly as we expect going forward, and we're not going to make any transition until we've gone through the biosimilar event, and we're confident in the performance of the overall business. That would be the appropriate time once we're confident to make a transition at that point. We've also had discussions with the board of what that transition would look like. And assuming it's an internal candidate, the transition will essentially work where we will name a new CEO.
And at that point, I will assume the role of executive chair for a period of time thereafter. So I think we have a well-thought-out succession approach. I feel very comfortable with the approach, I feel comfortable with the work we're doing to develop the internal candidates. And I think the transition when it occurs, I think, will go smoothly and be successful.
So hopefully, that answers your question.
Liz Shea -- Vice President, Investor Relations
Thanks, Colin. Operator, next question please.
Operator
Thank you. Our next question comes from Chris Shibutani from Goldman Sachs.
Liz Shea -- Vice President, Investor Relations
Chris, are you there? We can't hear you.
Operator
Please check your mute feature, Chris?
Chris Shibutani -- Goldman Sachs -- Analyst
Yes, apologies. Two questions, if I may. On Rinvoq, you had previously commented that you were seeing some use in the first-line setting. Can you update us at all with any color there? Secondly, for Skyrizi, obviously, a very attractive market and an opportunity in Crohn's disease.
Can you show us how you're thinking about the potential impact given the LOE in 2023 of a major branded players, STELARA? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Chris, it's Jeff. Just to clarify in terms of your Rinvoq question, was there a specific question related to a certain indication on the front line? Or I'm not sure I fully appreciate that one.
Chris Shibutani -- Goldman Sachs -- Analyst
Yes, no. In AD.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
In AD, OK, right. So yes, we do see frontline use across the globe and even in the U.S. And what we're seeing is now, as I mentioned in my remarks, we're seeing in-line in-play share, which is in the high mid-teens right now in the U.S., and it's higher in the international markets. So there seems to be, as we look to the research and we look to our market -- end market performance, there's really two segments of dermatologists.
There's very cautious dermatologists that are slow to adopt JAKs, and typically, they'll start in the later line, a second line plus. There is an emerging cohort of a significant group of dermatologists as well that basically are looking at the underlying high efficacy parameters, so basically like the EZ90 skin clearance and almost no discernible itch for the product. They typically are starting to use more and more in the frontline. So the overall balance is leaning toward the second line, but we do see increasing frontline utilization based on the profile of the drug in atopic dermatitis.
In terms of the Skyrizi for Crohn's, we think we're very, very well-positioned for a couple of reasons. One is the overall profile of the medicine is really exceptional, as I've highlighted, and we're going to see very, very rapid adoption both in the U.S. and the external market. In addition, we have anticipated the STELARA LOE.
We see that we have an ongoing head-to-head trial versus STELARA to make sure that we can continue to differentiate with direct data that will come over the next year or so, so we're anticipating that. And we think we're going to have a good setup to maintain the early momentum that we're seeing with Skyrizi.
Liz Shea -- Vice President, Investor Relations
Thanks, Chris. Operator, next question please.
Operator
Thank you. Our next question is from Geoff Meacham from Bank of America.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Hey guys. Thanks so much for taking the question. I just have one quick one. Rick, lots of questions on Humira for next year, but I wanted to ask at a high level environment beyond that.
I know there are formal treatment guidelines in I&I, but what's the risk that payers mandate cycling through one or more biosimilars? And what's the risk of the pricing environment doesn't really recover in '24 and beyond? Just obviously thinking about the Skyrizi and Rinvoq franchises over the long term. Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
So I'm actually going to have Jeff walk you through that. He's probably the closest to that environment.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah, so thank you for the question. I mean, one of the things that we see certainly in the near term is that the formularies in I&I are actually expanding. So many years ago, you might have six or seven preferred agents. The payers are now requesting sometimes up to 11 or 12 preferred agents, so you're seeing an expansive nature in the short term.
Now as you go forward, maybe middle of the decade or later where you have more and more biosimilars, could the U.S. environment move toward sort of a step through? I mean, it's possible. But we have, again, as I mentioned in my last statement, we have anticipated that with the right types of data, the trials. We have five head-to-head studies in Skyrizi in psoriasis, we have more coming in Crohn's.
And so we think that basically, we have a data-driven approach that's going to continue to allow us to significantly differentiate our products. The other dynamic that we watch very carefully, and we talked about this during the Immunology Investor Day, is the lines of therapy as there's more and more high efficacy products that get introduced, continue to expand. So in the middle of the decade or longer, the second plus and the third line markets are going to be very, very significant at that point. So when we put all of that into the calculus we feel again, we have a pretty set up for the middle of the decade and longer.
Rick Gonzalez -- Chairman and Chief Executive Officer
And this is Rick. I agree with everything Jeff said. The one thing I would add that as you think about even under a scenario where if we did get to some kind of a step at it, you have to go back and remember that most of these mechanisms, most patients fail, and they fail at a relatively high level and over a relatively short period of time. So even if you had to rotate through you're going to get to second line relatively quickly, and recycling somebody back through another TNF typically doesn't work very well for those patients.
And I'd say the domain now with the kind of agents that we have in the market now and the level of remission that they can create, the demand among physicians is much higher to get patients into remission as rapidly as they possibly can. And so I think all those dynamics tell us that this model should continue to work over the long-haul.
Liz Shea -- Vice President, Investor Relations
Thanks, Geoff. I believe we have taken all the questions in the queue, so that concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Liz Shea -- Vice President, Investor Relations
Rick Gonzalez -- Chairman and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Rob Michael -- Executive Vice President, Chief Financial Officer
Chris Schott -- JPMorgan Chase and Company -- Analyst
Roopal Thakkar -- Vice President, Regulatory Affairs
Tim Anderson -- Wolfe Research -- Analyst
Mohit Bansal -- Wells Fargo Securities -- Analyst
Terence Flynn -- Morgan Stanley -- Analyst
Neil Gallagher -- Vice President, Development and Chief Medical Officer
Andrew Baum -- Citi -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Colin Bristow -- UBS -- Analyst
Chris Shibutani -- Goldman Sachs -- Analyst
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
More ABBV analysis
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We remain very excited about the long-term potential for Skyrizi and Rinvoq which are already having a significant impact on AbbVie's growth and performance, contributing approximately $2.1 billion in combined sales this quarter, representing nearly 15% of total company net revenues. AbbVie (NYSE: ABBV) Q3 2022 Earnings Call Oct 28, 2022, 9:00 a.m. Welcome to the AbbVie's third quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President, Chief Financial Officer Chris Schott -- JPMorgan Chase and Company -- Analyst Roopal Thakkar -- Vice President, Regulatory Affairs Tim Anderson -- Wolfe Research -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Neil Gallagher -- Vice President, Development and Chief Medical Officer Andrew Baum -- Citi -- Analyst Steve Scala -- Cowen and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Colin Bristow -- UBS -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q3 2022 Earnings Call Oct 28, 2022, 9:00 a.m. Welcome to the AbbVie's third quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President, Chief Financial Officer Chris Schott -- JPMorgan Chase and Company -- Analyst Roopal Thakkar -- Vice President, Regulatory Affairs Tim Anderson -- Wolfe Research -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Neil Gallagher -- Vice President, Development and Chief Medical Officer Andrew Baum -- Citi -- Analyst Steve Scala -- Cowen and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Colin Bristow -- UBS -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q3 2022 Earnings Call Oct 28, 2022, 9:00 a.m. Welcome to the AbbVie's third quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President, Chief Financial Officer Chris Schott -- JPMorgan Chase and Company -- Analyst Roopal Thakkar -- Vice President, Regulatory Affairs Tim Anderson -- Wolfe Research -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Neil Gallagher -- Vice President, Development and Chief Medical Officer Andrew Baum -- Citi -- Analyst Steve Scala -- Cowen and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Colin Bristow -- UBS -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q3 2022 Earnings Call Oct 28, 2022, 9:00 a.m. Welcome to the AbbVie's third quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. |
23039.0 | 2022-10-28 00:00:00 UTC | Friday's ETF with Unusual Volume: DEF | ABBV | https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-def | nan | nan | The Invesco Defensive Equity ETF is seeing unusually high volume in afternoon trading Friday, with over 136,000 shares traded versus three month average volume of about 25,000. Shares of DEF were up about 2% on the day.
Components of that ETF with the highest volume on Friday were Gilead Sciences, trading up about 11.3% with over 15.1 million shares changing hands so far this session, and Comcast, down about 0.7% on volume of over 14.6 million shares. Abbvie is lagging other components of the Invesco Defensive Equity ETF Friday, trading lower by about 4.4%.
VIDEO: Friday's ETF with Unusual Volume: DEF
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 lagging other components of the Invesco Defensive Equity ETF Friday, trading lower by about 4.4%. The Invesco Defensive Equity ETF is seeing unusually high volume in afternoon trading Friday, with over 136,000 shares traded versus three month average volume of about 25,000. Components of that ETF with the highest volume on Friday were Gilead Sciences, trading up about 11.3% with over 15.1 million shares changing hands so far this session, and Comcast, down about 0.7% on volume of over 14.6 million shares. | Abbvie is lagging other components of the Invesco Defensive Equity ETF Friday, trading lower by about 4.4%. The Invesco Defensive Equity ETF is seeing unusually high volume in afternoon trading Friday, with over 136,000 shares traded versus three month average volume of about 25,000. VIDEO: Friday's ETF with Unusual Volume: DEF 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 lagging other components of the Invesco Defensive Equity ETF Friday, trading lower by about 4.4%. The Invesco Defensive Equity ETF is seeing unusually high volume in afternoon trading Friday, with over 136,000 shares traded versus three month average volume of about 25,000. Components of that ETF with the highest volume on Friday were Gilead Sciences, trading up about 11.3% with over 15.1 million shares changing hands so far this session, and Comcast, down about 0.7% on volume of over 14.6 million shares. | Abbvie is lagging other components of the Invesco Defensive Equity ETF Friday, trading lower by about 4.4%. The Invesco Defensive Equity ETF is seeing unusually high volume in afternoon trading Friday, with over 136,000 shares traded versus three month average volume of about 25,000. Shares of DEF were up about 2% on the day. |
23040.0 | 2022-10-28 00:00:00 UTC | AbbVie (ABBV) Beats on Q3 Earnings, Lags Sales, Narrows '22 View | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-beats-on-q3-earnings-lags-sales-narrows-22-view | nan | nan | AbbVie Inc. ABBV reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. The reported earnings also exceeded the guidance of $3.55-$3.59. Earnings rose 29.3% year over year.
ABBV’s revenues of $14.81 billion missed the Zacks Consensus Estimate and our estimate of $14.92 billion and $14.98 billion, respectively. Sales rose 3.3% year over year on a reported basis and 5.4% on an operational basis. Sales were driven by immunology and neuroscience products, with key drugs like Rinvoq, Skyrizi and Venclexta contributing to the top line. This was partially offset by lower sales of Juvederm and Imbruvica.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales rise of 3.9% to $5.56 billion on an operational basis. Sales in the United States climbed 7.4% to $4.96 billion, which more than offset the 16.8% decline in ex-U.S. market sales of $603 million. The drug’s sales beat the Zacks Consensus Estimate for global Humira sales, which was pegged at $5.55 billion.
Humira’s international sales were affected by the launch of several direct biosimilar drugs in Europe by other pharma companies, including Amgen AMGN, Sandoz and Biogen BIIB. Companies like Amgen, Sandoz and Biogen were the first to start commercializing a Humira-biosimilar in Europe in 2018. Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization in the United States is expected to start after the loss of exclusivity for Humira in the United States next year.
Net revenues recorded from Skyrizi sales in the third quarter were $1.40 billion, up 78.3% on an operational basis year over year. This significant rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales also beat the Zacks Consensus Estimate of $1.24 billion.
During the quarter, Rinvoq registered sales of $695 million, up 59.3% year over year on an operational basis. Ex-U.S. sales of the drug more than doubled year over year during the quarter. However, the drug’s sales missed the Zacks Consensus Estimate of $726 million.
Sales from the neuroscience portfolio increased 8.3% on an operational basis to $1.67 billion, driven by Botox Therapeutic and Vraylar and additional sales from the migraine drug Qulipta. Nonetheless, neuroscience sales figures missed the Zacks Consensus Estimate and our estimate of $1.82 billion and $1.79 billion, respectively.
While Botox Therapeutic sales rose 10% to $699 million, sales of Vraylar increased 20.2% to $554 million. Sales of AbbVie’s oral migraine drug Ubrelvy generated $160 million of revenues, down 1.2% on an operational basis year over year.
The recently launched Qulipta generated $62 million in product revenues compared to $33 million in second-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.9% on an operational basis to $1.65 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. The oncology/hematology sales missed both the Zacks Consensus and our estimates of $1.79 billion and $1.80 billion, respectively.
Third-quarter net revenues from Imbruvica were $1.14 billion, down 17.4% year over year. AbbVie developed the drug in partnership with Johnson & Johnson JNJ. ABBV shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $849 million, down 23.5% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug rose 7.6% to $286 million.
ABBV’s leukemia drug Venclexta generated revenues of $515 million in the reported quarter, reflecting 11.3% year-over-year growth on an operational basis.
AbbVie’s aesthetics portfolio sales were up 8.1% on an operational basis to $1.30 billion. The sales figure was lower than management’s expectations as U.S. sales of Juvederm and other aesthetic drugs offset growth in the sales of Botox Cosmetic. Sales of Botox Cosmetic rose 21.6% on an operational basis to $637 million, while Juvéderm’s sales grew 5.3% on an operational basis to $352 million.
Juvederm sales were hurt by the impact of COVID in China and the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers.
Eye care portfolio sales declined 25.2% on an operational basis to $623 million. Sales of Restasis, a key drug in the portfolio, decreased 55.9% year over year to $142 million.
Adjusted SG&A expenses increased 14.8% to $3.09 billion, while adjusted R&D expenses were $1.61 billion in the third quarter, down 1.5% year over year. The adjusted operating margin represented 53.4% of sales.
2022 EPS Guidance Narrowed
AbbVie narrowed down its EPS guidance for 2022 to include the unfavorable impact of acquired IPR&D and milestone expenses incurred during the third quarter. ABBV has confirmed the mid-point of its full-year 2022 adjusted EPS guidance range and narrowed down the same to $13.84-$13.88, from the previously provided guidance of $13.78-$13.98. The Zacks Consensus Estimate for current-year earnings per share is pegged at $13.89.
Shares of AbbVie were down 3.8% in pre-market trading on Oct 28 following the mixed earnings announcement and the lowered EPS guidance. AbbVie’s shares have gained 13.4% so far this year compared to the industry’s 1.8% rise.
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AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV’s leukemia drug Venclexta generated revenues of $515 million in the reported quarter, reflecting 11.3% year-over-year growth on an operational basis. Juvederm sales were hurt by the impact of COVID in China and the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers. AbbVie Inc. ABBV reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.9% on an operational basis to $1.65 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. Image Source: Zacks Investment Research AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank AbbVie currently has a Zacks Rank #3 (Hold). AbbVie Inc. ABBV reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. | Sales of AbbVie’s oral migraine drug Ubrelvy generated $160 million of revenues, down 1.2% on an operational basis year over year. AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.9% on an operational basis to $1.65 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. AbbVie Inc. ABBV reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.9% on an operational basis to $1.65 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. AbbVie Inc. ABBV reported earnings of $3.66 per share for the third quarter of 2022, beating both the Zacks Consensus Estimate and our estimate of $3.56 and $3.57, respectively. ABBV’s revenues of $14.81 billion missed the Zacks Consensus Estimate and our estimate of $14.92 billion and $14.98 billion, respectively. |
23041.0 | 2022-10-28 00:00:00 UTC | AbbVie Says EMA Validates MAA For Epcoritamab To Treat Relapsed/refractory Diffuse Large B-cell | ABBV | https://www.nasdaq.com/articles/abbvie-says-ema-validates-maa-for-epcoritamab-to-treat-relapsed-refractory-diffuse-large-b | nan | nan | (RTTNews) - AbbVie (ABBV) announced Friday that the European Medicines Agency (EMA) has validated a Marketing Authorization Application (MAA) for epcoritamab (DuoBody-CD3xCD20), an investigational subcutaneous bispecific antibody, for the treatment of adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy.
Additionally, Genmab has submitted a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) for epcoritamab for the treatment of adult patients with R/R large B-cell lymphoma (LBCL) after two or more lines of systemic therapy.
The regulatory submissions are supported by previously announced results from the LBCL cohort of the EPCORE NHL-1 open-label, multi-center Phase 2 trial evaluating the safety and preliminary efficacy of investigational epcoritamab in adult patients with relapsed, progressive or refractory CD20+ mature B-cell non-Hodgkin's lymphoma (NHL), including DLBCL.
Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. The companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization.
The companies are committed to evaluating epcoritamab as a monotherapy, and in combination, across lines of therapy in a range of hematologic malignancies, including an ongoing Phase 3, open-label, randomized trial evaluating epcoritamab as a monotherapy in patients with R/R DLBCL.
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 Friday that the European Medicines Agency (EMA) has validated a Marketing Authorization Application (MAA) for epcoritamab (DuoBody-CD3xCD20), an investigational subcutaneous bispecific antibody, for the treatment of adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. The companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Medicines Agency (EMA) has validated a Marketing Authorization Application (MAA) for epcoritamab (DuoBody-CD3xCD20), an investigational subcutaneous bispecific antibody, for the treatment of adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. The companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Medicines Agency (EMA) has validated a Marketing Authorization Application (MAA) for epcoritamab (DuoBody-CD3xCD20), an investigational subcutaneous bispecific antibody, for the treatment of adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. The companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Medicines Agency (EMA) has validated a Marketing Authorization Application (MAA) for epcoritamab (DuoBody-CD3xCD20), an investigational subcutaneous bispecific antibody, for the treatment of adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' oncology collaboration. The companies will share commercial responsibilities in the U.S. and Japan, with AbbVie responsible for further global commercialization. |
23042.0 | 2022-10-28 00:00:00 UTC | AbbVie (ABBV) Q3 Earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q3-earnings-beat-estimates | nan | nan | AbbVie (ABBV) came out with quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.56 per share. This compares to earnings of $3.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.81%. A quarter ago, it was expected that this drugmaker would post earnings of $3.31 per share when it actually produced earnings of $3.37, delivering a surprise of 1.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.81 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.74%. This compares to year-ago revenues of $14.34 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AbbVie shares have added about 13.4% since the beginning of the year versus the S&P 500's decline of -20.1%.
What's Next for AbbVie?
While AbbVie has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AbbVie: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.81 on $15.97 billion in revenues for the coming quarter and $13.89 on $59.02 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Pfizer (PFE), has yet to report results for the quarter ended September 2022. The results are expected to be released on November 1.
This drugmaker is expected to post quarterly earnings of $1.47 per share in its upcoming report, which represents a year-over-year change of +9.7%. The consensus EPS estimate for the quarter has been revised 2.3% lower over the last 30 days to the current level.
Pfizer's revenues are expected to be $21.04 billion, down 12.7% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) came out with quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.56 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.81 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.74%. AbbVie shares have added about 13.4% since the beginning of the year versus the S&P 500's decline of -20.1%. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.81 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.74%. AbbVie (ABBV) came out with quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.56 per share. AbbVie shares have added about 13.4% since the beginning of the year versus the S&P 500's decline of -20.1%. | AbbVie (ABBV) came out with quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.56 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.81 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.74%. AbbVie shares have added about 13.4% since the beginning of the year versus the S&P 500's decline of -20.1%. | AbbVie (ABBV) came out with quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.56 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.81 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.74%. AbbVie shares have added about 13.4% since the beginning of the year versus the S&P 500's decline of -20.1%. |
23043.0 | 2022-10-28 00:00:00 UTC | AbbVie Q3 22 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q3-22-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 28, 2022, to discuss Q3 22 earnings results.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23044.0 | 2022-10-28 00:00:00 UTC | AbbVie Q3 Profit Increases, beats estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q3-profit-increases-beats-estimates | nan | nan | (RTTNews) - AbbVie (ABBV) released earnings for its third quarter that increased from last year and beat the Street estimates.
The company's earnings came in at $3.949 billion, or $2.21 per share. This compares with $3.179 billion, or $1.78 per share, in last year's third quarter.
Excluding items, AbbVie reported adjusted earnings of $6.528 billion or $3.66 per share for the period.
Analysts on average had expected the company to earn $3.57 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 3.3% to $14.812 billion from $14.342 billion last year.
AbbVie earnings at a glance (GAAP) :
-Earnings (Q3): $3.949 Bln. vs. $3.179 Bln. last year. -EPS (Q3): $2.21 vs. $1.78 last year. -Analyst Estimate: $3.57 -Revenue (Q3): $14.812 Bln vs. $14.342 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) released earnings for its third quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.528 billion or $3.66 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q3): $3.949 Bln. | Excluding items, AbbVie reported adjusted earnings of $6.528 billion or $3.66 per share for the period. (RTTNews) - AbbVie (ABBV) released earnings for its third quarter that increased from last year and beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q3): $3.949 Bln. | (RTTNews) - AbbVie (ABBV) released earnings for its third quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.528 billion or $3.66 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q3): $3.949 Bln. | Excluding items, AbbVie reported adjusted earnings of $6.528 billion or $3.66 per share for the period. (RTTNews) - AbbVie (ABBV) released earnings for its third quarter that increased from last year and beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q3): $3.949 Bln. |
23045.0 | 2022-10-28 00:00:00 UTC | Health Care Sector Update for 10/28/2022: DVA, ABBV, SNY, XLV, IBB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-10-28-2022%3A-dva-abbv-sny-xlv-ibb | nan | nan | Health care stocks were flat to lower premarket Friday. The Health Care SPDR (XLV) was flat and the iShares Biotechnology Index (IBB) was recently inactive.
DaVita (DVA) was down more than 18% after it reported Q3 adjusted earnings of $1.45 per diluted share, down from $2.36 a year earlier. Analysts polled by Yahoo! Finance expected $1.77.
AbbVie (ABBV) reported Q3 adjusted diluted earnings of $3.66, up from $2.83 last year. Analysts polled by Capital IQ expected $3.56. AbbVie was almost 4% lower recently.
Sanofi (SNY) gained nearly 3% after it reported Q3 business earnings, a non-GAAP financial measure, of 2.88 euros ($2.87) per share, up from 2.18 euros per share a year ago. Analysts polled by Capital IQ expected normalized earnings of 2.68 euros per share, if comparable.
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) reported Q3 adjusted diluted earnings of $3.66, up from $2.83 last year. AbbVie was almost 4% lower recently. The Health Care SPDR (XLV) was flat and the iShares Biotechnology Index (IBB) was recently inactive. | AbbVie (ABBV) reported Q3 adjusted diluted earnings of $3.66, up from $2.83 last year. AbbVie was almost 4% lower recently. Analysts polled by Capital IQ expected $3.56. | AbbVie (ABBV) reported Q3 adjusted diluted earnings of $3.66, up from $2.83 last year. AbbVie was almost 4% lower recently. The Health Care SPDR (XLV) was flat and the iShares Biotechnology Index (IBB) was recently inactive. | AbbVie was almost 4% lower recently. AbbVie (ABBV) reported Q3 adjusted diluted earnings of $3.66, up from $2.83 last year. Analysts polled by Capital IQ expected $3.56. |
23046.0 | 2022-10-27 00:00:00 UTC | Pfizer Earnings Preview: Growth & Diversification is Key | ABBV | https://www.nasdaq.com/articles/pfizer-earnings-preview%3A-growth-diversification-is-key | nan | nan | Pfizer’s PFE Q3 earnings report on November 1 will give insight into the company’s ability to sustain growth from its Covid-19 vaccines. Vaccinations gave PFE a boost during the pandemic with the stock up nicely over the last few years.
Post-pandemic, revenue from Covid-19 vaccines may eventually start to fade and investors may want to start paying attention to other business units in the company.
Image Source: Zacks Investment Research
Business Units
Pfizer’s business is comprised of six business segments – Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines, and Internal Medicine. During the second quarter, the vaccines segment was up 13% from Q2 2021 at $10.45 billion. This accounted for more than a third of the company’s Q2 revenue with the rare disease segment the only other unit seeing a year over year increase.
Still, Pfizer posted record quarterly sales at $27.7 billion. Pfizer beat on both its top and bottom lines during Q2 and blasted earnings expectations by 16% at $2.04 per share. This was driven by strong contributions in its covid-19 vaccine Comirnaty and covid antiviral Paxlovid. While Q3 could see another boost from vaccines Wall Street will eventually be looking for additional growth among its other segments.
Q3 Outlook
The Zacks Consensus Estimate for PFE’s Q3 earnings is $1.47 per share, which would be a 10% increase from Q3 2021. Sales for Q3 are expected to be down -12% at $21.04 billion. This would show that Pfizer effectively managed operating costs and perhaps had some pricing power to boost its bottom line.
However, estimates for the period have largely gone down from $1.91 per share at the beginning of the quarter. Year over year, PFE earnings are expected to climb 44%, but decline -17% in FY23 at $5.28 per share as it comes up against difficult to compete against periods. With that being said, Fiscal year 2023 earnings estimates have started to rise over the last week.
Performance & Valuation
PFE is down -22% in 2022 to roughly match the S&P 500’s decline while underperforming its peer group’s +1% which includes notable companies like Johnson & Johnson JNJ and AbbVie ABBV. When including dividends over the last 5 years, PFE’s total return is + 65% to slightly outperform the benchmark and beat its peer group’s +34%.
Image Source: Zacks Investment Research
This year’s drop in PFE could be an opportunity for longer-term investors. Trading around $46 a share, PFE has a forward P/E of 7.2X. This is below the industry average of 13.3X. Even better, PFE trades below its decade-high of 17.5X and the median of 13.1X.
Image Source: Zacks Investment Research
Bottom Line
Third quarter earnings will give investors knowledge of Pfizer’s ability to expand Covid-19 revenue. Vaccine revenue will most likely fade as we move further away from the pandemic. The company’s ability to beat earnings expectations may rely on the growth of other business units during the quarter.
PFE currently lands a Zacks Rank #3 (Hold) and its Large Cap Pharmaceuticals Industry is in the top 33% of over 250 Zacks Industries. PFE offers a solid 3.47% annual dividend yield at $1.60 per share and the Average Zacks Price Target suggests 28% upside from current levels.
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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. | Performance & Valuation PFE is down -22% in 2022 to roughly match the S&P 500’s decline while underperforming its peer group’s +1% which includes notable companies like Johnson & Johnson JNJ and AbbVie ABBV. AbbVie Inc. (ABBV): Free Stock Analysis Report When including dividends over the last 5 years, PFE’s total return is + 65% to slightly outperform the benchmark and beat its peer group’s +34%. | Performance & Valuation PFE is down -22% in 2022 to roughly match the S&P 500’s decline while underperforming its peer group’s +1% which includes notable companies like Johnson & Johnson JNJ and AbbVie ABBV. AbbVie Inc. (ABBV): Free Stock Analysis Report Image Source: Zacks Investment Research Business Units Pfizer’s business is comprised of six business segments – Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines, and Internal Medicine. | Performance & Valuation PFE is down -22% in 2022 to roughly match the S&P 500’s decline while underperforming its peer group’s +1% which includes notable companies like Johnson & Johnson JNJ and AbbVie ABBV. AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer’s PFE Q3 earnings report on November 1 will give insight into the company’s ability to sustain growth from its Covid-19 vaccines. | Performance & Valuation PFE is down -22% in 2022 to roughly match the S&P 500’s decline while underperforming its peer group’s +1% which includes notable companies like Johnson & Johnson JNJ and AbbVie ABBV. AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer beat on both its top and bottom lines during Q2 and blasted earnings expectations by 16% at $2.04 per share. |
23047.0 | 2022-10-27 00:00:00 UTC | AbbVie Q3 Preview: Can Shares Continue Their Run? | ABBV | https://www.nasdaq.com/articles/abbvie-q3-preview%3A-can-shares-continue-their-run | nan | nan | The Zacks Medical sector has performed slightly better than the S&P 500 YTD, down 18.7% vs. the general market’s roughly 20% decline.
A titan in the realm, AbbVie ABBV, is on deck to unveil Q3 earnings on October 28th, before the market open.
AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health.
Currently, the medical giant carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
AbbVie shares have been a bright spot in a dim market year-to-date, up a double-digit 17% and easily crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Over the last three months, ABBV shares have continued on their market-beating trajectory, up roughly 3% vs. the S&P 500’s 6% decline.
Image Source: Zacks Investment Research
The relative strength ABBV shares have displayed is undoubtedly a highlight in a historically-volatile 2022, indicating that buyers have been present all year long.
ABBV’s current forward earnings multiple of 10.9X is modestly above its five-year median but reflects a steep 51% discount relative to the Zacks Medical sector average.
Further, the company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have lowered their earnings outlook for the quarter, with four negative earnings estimate revisions hitting the tape over the last several months. Still, the Zacks Consensus EPS Estimate of $3.56 indicates Y/Y earnings growth of nearly 7%.
Image Source: Zacks Investment Research
AbbVie’s top-line also appears to be in solid standing; the Zacks Consensus Sales Estimate of $14.9 billion suggests revenue growth of roughly 4% from year-ago quarterly sales of $14.3 billion.
Quarterly Performance & Market Reactions
AbbVie has consistently surprised on the bottom-line as of late, chaining together four consecutive quarters of exceeding the Zacks Consensus EPS Estimate. Just in its latest earnings release, ABBV registered a 1.8% EPS beat.
Revenue results paint a strikingly different story; ABBV has fallen short of top-line estimates in four consecutive quarters. Still, it’s worth noting that none of the revenue misses have been above 1%.
Image Source: Zacks Investment Research
In addition, it’s worth noting that the market didn’t react well in response to the company’s latest quarterly report; shares moved downwards by roughly 6% following the print.
Putting Everything Together
ABBV shares have been notably strong in 2022, well in the green and widely outperforming the S&P 500.
The company’s forward earnings multiple sits modestly above its five-year median, with the company carrying a Style Score of a B for Value.
Analysts have been bearish in their earnings outlook, with estimates suggesting Y/Y upticks in both revenue and earnings.
ABBV has strung together a nice streak of EPS beats, but top-line results have come in under expectations as of late.
Heading into the print, AbbVie ABBV carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -0.04%.
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Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. Image Source: Zacks Investment Research The relative strength ABBV shares have displayed is undoubtedly a highlight in a historically-volatile 2022, indicating that buyers have been present all year long. A titan in the realm, AbbVie ABBV, is on deck to unveil Q3 earnings on October 28th, before the market open. | Image Source: Zacks Investment Research AbbVie’s top-line also appears to be in solid standing; the Zacks Consensus Sales Estimate of $14.9 billion suggests revenue growth of roughly 4% from year-ago quarterly sales of $14.3 billion. A titan in the realm, AbbVie ABBV, is on deck to unveil Q3 earnings on October 28th, before the market open. 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’s top-line also appears to be in solid standing; the Zacks Consensus Sales Estimate of $14.9 billion suggests revenue growth of roughly 4% from year-ago quarterly sales of $14.3 billion. A titan in the realm, AbbVie ABBV, is on deck to unveil Q3 earnings on October 28th, before the market open. AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. | A titan in the realm, AbbVie ABBV, is on deck to unveil Q3 earnings on October 28th, before the market open. AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health. Share Performance & Valuation AbbVie shares have been a bright spot in a dim market year-to-date, up a double-digit 17% and easily crushing the S&P 500’s performance. |
23048.0 | 2022-10-27 00:00:00 UTC | Pre-Market Earnings Report for October 28, 2022 : XOM, CVX, ABBV, NEE, SNY, CL, AON, CHTR, IMO, GWW, LYB, CHD | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-october-28-2022-%3A-xom-cvx-abbv-nee-sny-cl-aon-chtr-imo-0 | nan | nan | The following companies are expected to report earnings prior to market open on 10/28/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending September 30, 2022. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.88. This value represents a 145.57% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 1st calendar quarter of 2022 by -8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for XOM is 8.10 vs. an industry ratio of 5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending September 30, 2022. The oil company's consensus earnings per share forecast from the 7 analysts that follow the stock is $5.02. This value represents a 69.59% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVX is 9.58 vs. an industry ratio of 5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.56. This value represents a 6.91% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.63%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70.
NextEra Energy, Inc. (NEE)is reporting for the quarter ending September 30, 2022. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.79. This value represents a 5.33% increase compared to the same quarter last year. In the past year NEE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NEE is 26.16 vs. an industry ratio of 3.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Sanofi (SNY)is reporting for the quarter ending September 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.31. This value represents a 1.55% increase compared to the same quarter last year. In the past year SNY has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.24%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SNY is 10.44 vs. an industry ratio of 15.70.
Colgate-Palmolive Company (CL)is reporting for the quarter ending September 30, 2022. The cleaning company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.74. This value represents a 8.64% decrease compared to the same quarter last year. In the past year CL has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CL is 24.40 vs. an industry ratio of 22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending September 30, 2022. The insurance brokers company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.01. This value represents a 15.52% increase compared to the same quarter last year. AON missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.62%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AON is 21.04 vs. an industry ratio of 22.90.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending September 30, 2022. The cable tv company's consensus earnings per share forecast from the 14 analysts that follow the stock is $7.94. This value represents a 22.15% increase compared to the same quarter last year. In the past year CHTR has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 27.17%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHTR is 10.73 vs. an industry ratio of 8.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Imperial Oil Limited (IMO)is reporting for the quarter ending September 30, 2022. The consensus earnings per share forecast from the 4 analysts that follow the stock is $2.00. IMO reported earnings of $1.02 per share for the same quarter a year ago; representing a a increase of 96.08%.W.W. Grainger, Inc. (GWW)is reporting for the quarter ending September 30, 2022. The industrial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $7.19. This value represents a 27.26% increase compared to the same quarter last year. In the past year GWW has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 6.99%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for GWW is 18.86 vs. an industry ratio of 5.90, implying that they will have a higher earnings growth than their competitors in the same industry.
LyondellBasell Industries NV (LYB)is reporting for the quarter ending September 30, 2022. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.96. This value represents a 43.62% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LYB is 5.70 vs. an industry ratio of 14.10.
Church & Dwight Company, Inc. (CHD)is reporting for the quarter ending September 30, 2022. The cleaning company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.65. This value represents a 18.75% decrease compared to the same quarter last year. In the past year CHD has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.04%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHD is 25.86 vs. an industry ratio of 22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. |
23049.0 | 2022-10-27 00:00:00 UTC | Pre-Market Earnings Report for October 28, 2022 : XOM, CVX, ABBV, NEE, SNY, CL, AON, CHTR, IMO, GWW, LYB, CHD | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-october-28-2022-%3A-xom-cvx-abbv-nee-sny-cl-aon-chtr-imo-gww | nan | nan | The following companies are expected to report earnings prior to market open on 10/28/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending September 30, 2022. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.88. This value represents a 145.57% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 1st calendar quarter of 2022 by -8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for XOM is 8.10 vs. an industry ratio of 5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending September 30, 2022. The oil company's consensus earnings per share forecast from the 7 analysts that follow the stock is $5.02. This value represents a 69.59% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVX is 9.58 vs. an industry ratio of 5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.56. This value represents a 6.91% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.63%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70.
NextEra Energy, Inc. (NEE)is reporting for the quarter ending September 30, 2022. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.79. This value represents a 5.33% increase compared to the same quarter last year. In the past year NEE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NEE is 26.16 vs. an industry ratio of 3.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Sanofi (SNY)is reporting for the quarter ending September 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.31. This value represents a 1.55% increase compared to the same quarter last year. In the past year SNY has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.24%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SNY is 10.44 vs. an industry ratio of 15.70.
Colgate-Palmolive Company (CL)is reporting for the quarter ending September 30, 2022. The cleaning company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.74. This value represents a 8.64% decrease compared to the same quarter last year. In the past year CL has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CL is 24.40 vs. an industry ratio of 22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending September 30, 2022. The insurance brokers company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.01. This value represents a 15.52% increase compared to the same quarter last year. AON missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.62%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AON is 21.04 vs. an industry ratio of 22.90.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending September 30, 2022. The cable tv company's consensus earnings per share forecast from the 14 analysts that follow the stock is $7.94. This value represents a 22.15% increase compared to the same quarter last year. In the past year CHTR has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 27.17%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHTR is 10.73 vs. an industry ratio of 8.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Imperial Oil Limited (IMO)is reporting for the quarter ending September 30, 2022. The consensus earnings per share forecast from the 4 analysts that follow the stock is $2.00. IMO reported earnings of $1.02 per share for the same quarter a year ago; representing a a increase of 96.08%.W.W. Grainger, Inc. (GWW)is reporting for the quarter ending September 30, 2022. The industrial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $7.19. This value represents a 27.26% increase compared to the same quarter last year. In the past year GWW has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 6.99%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for GWW is 18.86 vs. an industry ratio of 5.90, implying that they will have a higher earnings growth than their competitors in the same industry.
LyondellBasell Industries NV (LYB)is reporting for the quarter ending September 30, 2022. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.96. This value represents a 43.62% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LYB is 5.70 vs. an industry ratio of 14.10.
Church & Dwight Company, Inc. (CHD)is reporting for the quarter ending September 30, 2022. The cleaning company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.65. This value represents a 18.75% decrease compared to the same quarter last year. In the past year CHD has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.04%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHD is 25.86 vs. an industry ratio of 22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.85 vs. an industry ratio of 15.70. |
23050.0 | 2022-10-27 00:00:00 UTC | XLV, ABBV, ELV, MDT: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-abbv-elv-mdt%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 $203.8 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 296,970,000 to 298,520,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Elevance Health Inc (Symbol: ELV) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.6%. 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 $131.53. 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 »
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 0.4%, Elevance Health Inc (Symbol: ELV) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.6%. 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 $203.8 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 296,970,000 to 298,520,000). 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 up about 0.4%, Elevance Health Inc (Symbol: ELV) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.6%. 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 $131.53. 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 0.4%, Elevance Health Inc (Symbol: ELV) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.6%. 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 $203.8 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 296,970,000 to 298,520,000). 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 $131.53. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.4%, Elevance Health Inc (Symbol: ELV) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.6%. 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 $203.8 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 296,970,000 to 298,520,000). 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 $131.53. |
23051.0 | 2022-10-26 00:00:00 UTC | 2 Monster Stocks to Buy Without Any Hesitation | ABBV | https://www.nasdaq.com/articles/2-monster-stocks-to-buy-without-any-hesitation-6 | nan | nan | Hesitation. That's a key word in the investment community right now. Many investors are hesitating before buying stocks. This bear market isn't over. And investors worry even the strongest stocks may fall further. That's as problems such as higher inflation weigh on companies and their customers.
It's important to remember that, while today's situation is difficult, it's also temporary. And this means companies with solid track records and/or future prospects still may make great buys. Two of these monster stocks have even outperformed the market this year. Let's take a closer look at these players to buy -- without any hesitation.
1. AbbVie
AbbVie (NYSE: ABBV) sells treatments in a variety of high-growth areas, including immunology and neuroscience. In fact, these two product portfolios posted double-digit sales gains in the second quarter.
Now the bad news is AbbVie's major blockbuster Humira will face competition next year. But AbbVie is set to manage this situation. The company has two newer immunology drugs -- Rinvoq and Skyrizi -- that together should eventually surpass Humira's peak sales. Both drugs are already showing their growth potential. In the quarter, Rinvoq revenue climbed 56% and Skyrizi revenue soared 85%.
AbbVie's Botox for migraine and Vraylar for bipolar disorder also produced double-digit revenue growth in the quarter -- leading gains in neuroscience.
Botox revenue climbed in the double digits for aesthetic indications too. AbbVie's aesthetics portfolio could be a key to future growth. AbbVie sells Botox and the popular dermal filler Juvederm. The global facial aesthetics market, at a compound annual growth rate of 14%, is forecast to reach $15.2 billion by 2028, according to KBV Research.
AbbVie has a long track record of revenue growth.
ABBV Revenue (Annual) data by YCharts
The products mentioned here -- and the company's dozens of pipeline candidates across treatment areas -- are reasons to be optimistic about future revenue. And AbbVie is set to hold the largest share of the global prescription drug market by 2026, according to Evaluate.
Now, let's take a look at price and valuation. AbbVie shares have climbed 11% so far this year.
Even considering AbbVie's share gains, the stock still is trading at only about 10 times forward earnings estimates. This looks like a steal. That's because AbbVie has what it takes to generate monster revenue growth well into the future.
2. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the global leader in cystic fibrosis (CF) treatment. The company sells four CF drugs. This includes its latest blockbuster, Trikafta. The product has the ability to treat 90% of those who suffer from CF. Along with partner Moderna, Vertex is working on a treatment candidate that may be able to help the remaining 10%.
Now, what about rivals? you may ask. The product that could possibly unseat Trikafta down the road actually is a product being developed by... guess who?... Vertex. The once-a-day pill candidate now is being tested against the twice-a-day Trikafta in phase 3 studies.
Vertex has said it's set to dominate the CF market until at least the late 2030s. What does this mean for revenue and profit? Well, so far CF treatments have lifted Vertex's earnings into the billions of dollars. This should continue to grow. That's because Trikafta still is gaining new patients through expanded indications and new product reimbursement agreements in various countries.
But Vertex's long-term picture doesn't include only CF products. In fact, this biotech company has reached a major turning point. The company and partner CRISPR Therapeutics plan to submit their gene-editing candidate for blood disorders for regulatory approval in the U.K. and Europe this year. And they aim to complete a U.S. submission in the first quarter of next year.
The gene-editing candidate is a one-time curative treatment for sickle cell disease and beta thalassemia. It could be big because treatment options for these disorders currently are limited. Vertex also has a full pipeline of candidates focused on high-need areas such as pain management and type 1 diabetes.
Now, let's take a look at Vertex's valuation. The stock has advanced a whopping 41% so far this year. That leaves its shares trading just under 22 times forward earnings estimates. And that looks pretty reasonable for the earnings growth we can expect from Vertex's CF program -- and potentially other products -- well into the future.
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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 Botox for migraine and Vraylar for bipolar disorder also produced double-digit revenue growth in the quarter -- leading gains in neuroscience. AbbVie AbbVie (NYSE: ABBV) sells treatments in a variety of high-growth areas, including immunology and neuroscience. Now the bad news is AbbVie's major blockbuster Humira will face competition next year. | Even considering AbbVie's share gains, the stock still is trading at only about 10 times forward earnings estimates. AbbVie AbbVie (NYSE: ABBV) sells treatments in a variety of high-growth areas, including immunology and neuroscience. Now the bad news is AbbVie's major blockbuster Humira will face competition next year. | ABBV Revenue (Annual) data by YCharts The products mentioned here -- and the company's dozens of pipeline candidates across treatment areas -- are reasons to be optimistic about future revenue. AbbVie AbbVie (NYSE: ABBV) sells treatments in a variety of high-growth areas, including immunology and neuroscience. Now the bad news is AbbVie's major blockbuster Humira will face competition next year. | AbbVie AbbVie (NYSE: ABBV) sells treatments in a variety of high-growth areas, including immunology and neuroscience. Now the bad news is AbbVie's major blockbuster Humira will face competition next year. But AbbVie is set to manage this situation. |
23052.0 | 2022-10-26 00:00:00 UTC | Will Merck Stock Rise After Its Q3 Results? | ABBV | https://www.nasdaq.com/articles/will-merck-stock-rise-after-its-q3-results | nan | nan | Merck (NYSE: MRK) is scheduled to report its Q3 2022 results on Thursday, October 27. We expect the company to post mixed results, with revenue falling short and earnings slightly above the consensus estimate. Although the company should benefit from continued market share gains for Keytruda and Gardasil, among other products, forex headwinds may weigh on its overall performance. We expect MRK stock to trade sideways post-Q3 and find it fairly valued at its current levels, as discussed below. Our interactive dashboard analysis on Merck’s Earnings Preview has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Merck’s Q3 2022 revenues to be $13.9 billion, reflecting mid-single-digit y-o-y growth but below the $14.1 billion consensus estimate.
Market share gains will likely drive revenue growth for Keytruda and Gardasil.
Looking at Q2 2022, Merck reported revenue of $14.6 billion, reflecting a significant 28% y-o-y growth, partly due to a $1.2 billion sales contribution from its Covid-19 treatment – Lagevrio.
Merck’s top-selling drug – Keytruda – saw its sales rise 26% to $5.3 billion in Q2, while Gardasil sales were up a significant 36% to $1.7 billion.
Our dashboard on Merck Revenues offers more details on the company’s segments.
(2) EPS expected to be slightly above the consensus estimates
Merck’s Q3 2022 adjusted earnings per share (EPS) is expected to be $1.75 per Trefis analysis, slightly above the consensus estimate of $1.72.
Merck’s adjusted net income of $4.7 billion in Q2 2022 reflected a large 3x rise from its $1.6 billion figure in the prior-year quarter, led by higher revenues and lower operating expenses.
Operating expenses decreased 19% to $5.2 billion, primarily due to a favorable comparison to the prior year’s quarter, which included a $1.7 billion charge related to the Pandion Therapeutics acquisition.
For the full year 2022, we expect the adjusted EPS to be higher at $7.38, compared to $6.02 in 2021.
(3) MRK stock is fairly valued
We estimate Merck’s Valuation to be $102 per share, which is only 7% above the current market price of $96.
This represents a forward P/E multiple of 13x based on our EPS forecast of $7.38 in 2022 and aligns with the last three-year average of 13x, implying that MRK stock is fully valued.
However, if the company reports upbeat results, along with guidance better than the street estimates, the P/E multiple will likely be revised upward, resulting in higher levels for MRK stock.
While MRK stock looks fairly priced, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite inflation rising and the Fed raising interest rates, Merck stock has risen 25% this year. But can it drop from here? See how low Merck stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return 11% 25% 63%
S&P 500 Return 5% -21% 68%
Trefis Multi-Strategy Portfolio 1% -25% 196%
[1] Month-to-date and year-to-date as of 10/23/2022
[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 expect the company to post mixed results, with revenue falling short and earnings slightly above the consensus estimate. Although the company should benefit from continued market share gains for Keytruda and Gardasil, among other products, forex headwinds may weigh on its overall performance. This represents a forward P/E multiple of 13x based on our EPS forecast of $7.38 in 2022 and aligns with the last three-year average of 13x, implying that MRK stock is fully valued. | (1) Revenues expected to be below the consensus estimates Trefis estimates Merck’s Q3 2022 revenues to be $13.9 billion, reflecting mid-single-digit y-o-y growth but below the $14.1 billion consensus estimate. Looking at Q2 2022, Merck reported revenue of $14.6 billion, reflecting a significant 28% y-o-y growth, partly due to a $1.2 billion sales contribution from its Covid-19 treatment – Lagevrio. (2) EPS expected to be slightly above the consensus estimates Merck’s Q3 2022 adjusted earnings per share (EPS) is expected to be $1.75 per Trefis analysis, slightly above the consensus estimate of $1.72. | (1) Revenues expected to be below the consensus estimates Trefis estimates Merck’s Q3 2022 revenues to be $13.9 billion, reflecting mid-single-digit y-o-y growth but below the $14.1 billion consensus estimate. (2) EPS expected to be slightly above the consensus estimates Merck’s Q3 2022 adjusted earnings per share (EPS) is expected to be $1.75 per Trefis analysis, slightly above the consensus estimate of $1.72. Total [2] MRK Return 11% 25% 63% S&P 500 Return 5% -21% 68% Trefis Multi-Strategy Portfolio 1% -25% 196% [1] Month-to-date and year-to-date as of 10/23/2022 [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 expect MRK stock to trade sideways post-Q3 and find it fairly valued at its current levels, as discussed below. (3) MRK stock is fairly valued We estimate Merck’s Valuation to be $102 per share, which is only 7% above the current market price of $96. Total [2] MRK Return 11% 25% 63% S&P 500 Return 5% -21% 68% Trefis Multi-Strategy Portfolio 1% -25% 196% [1] Month-to-date and year-to-date as of 10/23/2022 [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. |
23053.0 | 2022-10-25 00:00:00 UTC | Pfizer (PFE) Reports Next Week: Wall Street Expects Earnings Growth | ABBV | https://www.nasdaq.com/articles/pfizer-pfe-reports-next-week%3A-wall-street-expects-earnings-growth-1 | nan | nan | Pfizer (PFE) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2022. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on November 1, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This drugmaker is expected to post quarterly earnings of $1.47 per share in its upcoming report, which represents a year-over-year change of +9.7%.
Revenues are expected to be $21.04 billion, down 12.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.28% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Pfizer?
For Pfizer, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.32%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Pfizer will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Pfizer would post earnings of $1.75 per share when it actually produced earnings of $2.04, delivering a surprise of +16.57%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Pfizer doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
AbbVie (ABBV), another stock in the Zacks Large Cap Pharmaceuticals industry, is expected to report earnings per share of $3.56 for the quarter ended September 2022. This estimate points to a year-over-year change of +6.9%. Revenues for the quarter are expected to be $14.92 billion, up 4.1% from the year-ago quarter.
The consensus EPS estimate for AbbVie has been revised 0.1% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.04%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | An Industry Player's Expected Results AbbVie (ABBV), another stock in the Zacks Large Cap Pharmaceuticals industry, is expected to report earnings per share of $3.56 for the quarter ended September 2022. The consensus EPS estimate for AbbVie has been revised 0.1% lower over the last 30 days to the current level. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. | When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. An Industry Player's Expected Results AbbVie (ABBV), another stock in the Zacks Large Cap Pharmaceuticals industry, is expected to report earnings per share of $3.56 for the quarter ended September 2022. The consensus EPS estimate for AbbVie has been revised 0.1% lower over the last 30 days to the current level. | An Industry Player's Expected Results AbbVie (ABBV), another stock in the Zacks Large Cap Pharmaceuticals industry, is expected to report earnings per share of $3.56 for the quarter ended September 2022. The consensus EPS estimate for AbbVie has been revised 0.1% lower over the last 30 days to the current level. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. | When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. An Industry Player's Expected Results AbbVie (ABBV), another stock in the Zacks Large Cap Pharmaceuticals industry, is expected to report earnings per share of $3.56 for the quarter ended September 2022. The consensus EPS estimate for AbbVie has been revised 0.1% lower over the last 30 days to the current level. |
23054.0 | 2022-10-25 00:00:00 UTC | 3 Top Dividend Stocks to Buy and Hold in 2023 | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-and-hold-in-2023 | nan | nan | Three words can make you a lot of money over the long run. What are those three words? Dividends, buy, and hold.
Dividends made up over half of the S&P 500's total return since 1990. Following a buy-and-hold strategy would have prevented you from locking in significant losses during the sell-offs of 2001, 2008, and 2020. And the approach can almost certainly do the same in the current market decline.
Combining those three words into your investing strategy by buying and holding dividend stocks can be especially rewarding for long-term investors. Here are three top dividend stocks to buy and hold in 2023.
1. AbbVie
AbbVie (NYSE: ABBV) isn't just an ordinary dividend stock; it's a member of dividend royalty. The drugmaker has increased its dividend for 50 consecutive years, making it both a Dividend Aristocrat and a Dividend King. AbbVie has raised its dividend payout by more than 250% since spinning off from Abbott Labs in 2013. Its dividend currently yields more than 3.8%.
This pharma stock is handily beating the overall market so far in 2022. Shareholders have especially profited with the juicy dividends included.
But AbbVie loses U.S. exclusivity for Humira next year. The autoimmune-disease drug generated 36% of the company's total revenue in the first half of 2022. Can AbbVie keep its momentum going with Humira's sales soon to decline? I think so.
For one thing, the impact of Humira's loss of exclusivity is largely baked into AbbVie's share price. The stock trades at only 12 times expected earnings. More importantly, AbbVie's slump shouldn't last very long: The company projects that it will return to sustained revenue growth quickly.
I believe that AbbVie's optimism is warranted. The company already has two worthy successors to Humira on the market with Rinvoq and Skyrizi. Its lineup features other growth drivers as well, including Botox, Venclexta, and Vraylar.
2. Brookfield Renewable
The best thing about Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) isn't its dividend. To be clear, though, the renewable energy company does offer an attractive dividend with a yield that tops 4.3%. Brookfield Renewable should have no problem keeping the dividends flowing.
However, the best thing about Brookfield Renewable is its growth prospects. Don't let the dismal performance of the stock so far this year fool you.
The demand for renewable energy should increase significantly over the next decade and beyond. There's no way for countries across the world to achieve their carbon reduction goals otherwise. It also helps quite a bit that solar and onshore wind energy production is already more cost-effective than gas and coal energy production.
Brookfield Renewable's future prospects are getting even brighter thanks to its investments. The company is acquiring Scout Clean Energy. It recently closed on the purchase of Standard Solar. Brookfield Renewable is also teaming up with Cameco to acquire nuclear power provider Westinghouse Electric.
3. Easterly Government Properties
Easterly Government Properties' (NYSE: DEA) dividend yield stands at nearly 6.6%. While that's certainly an attractive level, I think an even bigger plus is the stability of the cash flow that funds the dividends.
The company is organized as a real estate investment trust (REIT). Easterly focuses on leasing properties to U.S. federal agencies. As of June 30, 2022, 98% of the REIT's lease income is (in the company's own words) "backed by the full faith and credit of the U.S. government."
That backing from Uncle Sam hasn't seemed to help Easterly's stock much this year. The company's shares have fallen close to 30%, primarily due to worries about rising interest rates and the overall economy.
But Easterly is in a strong financial position to weather the current storm. The overall market dynamics for the company should remain favorable over the long term. Investors who buy and hold this stock should enjoy solid total returns in the years to come.
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Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. The Motley Fool has positions in and recommends Brookfield Renewable Corporation Inc. The Motley Fool recommends Easterly Government Properties. 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. | More importantly, AbbVie's slump shouldn't last very long: The company projects that it will return to sustained revenue growth quickly. AbbVie AbbVie (NYSE: ABBV) isn't just an ordinary dividend stock; it's a member of dividend royalty. AbbVie has raised its dividend payout by more than 250% since spinning off from Abbott Labs in 2013. | See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie AbbVie (NYSE: ABBV) isn't just an ordinary dividend stock; it's a member of dividend royalty. AbbVie has raised its dividend payout by more than 250% since spinning off from Abbott Labs in 2013. | AbbVie AbbVie (NYSE: ABBV) isn't just an ordinary dividend stock; it's a member of dividend royalty. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie has raised its dividend payout by more than 250% since spinning off from Abbott Labs in 2013. | AbbVie AbbVie (NYSE: ABBV) isn't just an ordinary dividend stock; it's a member of dividend royalty. AbbVie has raised its dividend payout by more than 250% since spinning off from Abbott Labs in 2013. But AbbVie loses U.S. exclusivity for Humira next year. |
23055.0 | 2022-10-25 00:00:00 UTC | 3 Hail Mary Plays to Bring Your Stock Portfolio Back From the Brink | ABBV | https://www.nasdaq.com/articles/3-hail-mary-plays-to-bring-your-stock-portfolio-back-from-the-brink-1 | nan | nan | Has your portfolio's value taken an unusually big hit this year? Perhaps you've suffered what most investors would consider a complete wipeout. Maybe you're rethinking when -- or even if -- you'll be able to retire.
Not to suggest that the emotional devastation isn't just as difficult as the financial loss, but these things happen.
The thing is, you can bounce back! You'll just need to do things a bit differently than you had originally intended. Namely, you'll need to be more aggressive with your stock picks, but still just as smart. Here's a closer look at three stocks with incredible potential for capital appreciation, but that aren't as risky as you'd typically expect when you're (proverbially) swinging for the fences.
Rivian Automotive
Yes, this is the same Rivian Automotive (NASDAQ: RIVN) that recently announced a recall of nearly every one of the electric vehicles it's ever made. It's an inauspicious start for the company that only began meaningful mass production of its EVs earlier this year.
The market's response to the news was as encouraging as it was curious. Rather than rekindling the selling that dragged the stock sharply lower between November's post-IPO peak and May's low, investors mostly shrugged it off. It's a hint that people still believe the stock's current reduced price fairly reflects the company's plausible future despite the black eye stemming from the recall.
And that's arguably not a bad move.
Tesla may be the biggest name in the business, but it's not going to remain the only major player in the EV industry forever. Rivian's got a chance to be a key player too, and there's certainly going to be lots of business to go around. The U.S. Energy Information Administration estimates the number of electric vehicles traversing the world's roads will grow from a little over 10 million now to more than 670 million by 2050.
Shareholders won't have to wait that long to see marked success, though. Analysts are still calling for this year's projected top line of $1.8 billion to swell to $6.2 billion next year, taking another sizable bite out of Rivian's so-far-recurring losses.
SentinelOne
Cybersecurity stocks aren't particularly scarce anymore. And, while few people would deny there's a stark need for protection from hacking and digital data breaches, a strange number of cybersecurity companies remain in the red. SentinelOne (NYSE: S) is no exception.
SentinelOne is making much faster profit progress than its peers, though, with expected top-line growth of more than 100% this year finally starting to reduce its per-share losses. Next year's the big proverbial pivot, however. Analysts are modeling 2023 revenue growth of 64%, which should reduce this year's likely loss of $0.81 per share to a loss of only $0.47 next year. A swing to net earnings is at least on the radar; shares could start to reflect that impending victory well before it actually happens.
The driver of all this growth is the nature of SentinelOne's flagship product. It's more than just firewalls and threat detection. Its flagship Singularity XDR (extended detection response) platform does it all, and does so largely on its own. See, Singularity XDR uses artificial intelligence to autonomously make decisions that it would take humans far too long to make.
And there's no doubt the company is great at what it does. IT consulting firm Gartner ranked SentinelOne as one of last year's leaders within the endpoint protection platform market, placing it shoulder-to-shoulder with Microsoft and McAfee.
The stock's currently trading about 40% below its consensus price target of $36.44. As the company proves itself with revenue and earnings growth, don't be surprised to see that average target price make its way higher.
Genmab
Finally, add Danish biopharma company Genmab (NASDAQ: GMAB) to your list of stocks that offer a lot of upside potential but without imposing a lot more risk.
It's not a household name. The company only reported sales of around $1.1 billon last year, in fact, and while much better than that figure, this year's top line is still only on pace to reach roughly $1.6 billion.
But as the old adage goes, Genmab is just gettin' started.
The key to this stock's potential is the underlying science for its portfolio and pipeline. Genmab's tech facilitates the creation of antibodies that help cancer patients' own immune systems fight the disease better than some conventional cancer therapies can.
It's not a completely unheard-of approach. It is a relatively new idea, though, and Genmab is one of the companies leading the charge. Its technology is already the basis for six different approved treatments, with more than 20 products currently in clinical development.
Perhaps the most bullish argument for owning Genmab is the caliber of drug-development partners now working with the company. AbbVie, Johnson & Johnson subsidiary Jansenn Biotech, BioNTech, and Novartis are just some of the pharma companies using Genmab's proprietary know-how to develop therapies. Indeed, Johnson & Johnson reported $2 billion worth of sales of its cancer-fighting Darzalex during the third quarter of this year. Since it's a therapy built on Genmab's intellectual property, the company is collecting royalties on those sales as well as on sales of five other drugs -- and increasingly more of it. Royalty revenue through the first half of this year was 82% better than it was through the first half of last year.
The kicker: Although young, Genmab is already profitable. Not many biopharma companies of its size and age can make the same claim.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Genmab A/S, Microsoft, and Tesla. The Motley Fool recommends Gartner and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Johnson & Johnson subsidiary Jansenn Biotech, BioNTech, and Novartis are just some of the pharma companies using Genmab's proprietary know-how to develop therapies. It's a hint that people still believe the stock's current reduced price fairly reflects the company's plausible future despite the black eye stemming from the recall. SentinelOne is making much faster profit progress than its peers, though, with expected top-line growth of more than 100% this year finally starting to reduce its per-share losses. | AbbVie, Johnson & Johnson subsidiary Jansenn Biotech, BioNTech, and Novartis are just some of the pharma companies using Genmab's proprietary know-how to develop therapies. Its flagship Singularity XDR (extended detection response) platform does it all, and does so largely on its own. Genmab Finally, add Danish biopharma company Genmab (NASDAQ: GMAB) to your list of stocks that offer a lot of upside potential but without imposing a lot more risk. | AbbVie, Johnson & Johnson subsidiary Jansenn Biotech, BioNTech, and Novartis are just some of the pharma companies using Genmab's proprietary know-how to develop therapies. Analysts are modeling 2023 revenue growth of 64%, which should reduce this year's likely loss of $0.81 per share to a loss of only $0.47 next year. Genmab Finally, add Danish biopharma company Genmab (NASDAQ: GMAB) to your list of stocks that offer a lot of upside potential but without imposing a lot more risk. | AbbVie, Johnson & Johnson subsidiary Jansenn Biotech, BioNTech, and Novartis are just some of the pharma companies using Genmab's proprietary know-how to develop therapies. Analysts are modeling 2023 revenue growth of 64%, which should reduce this year's likely loss of $0.81 per share to a loss of only $0.47 next year. The driver of all this growth is the nature of SentinelOne's flagship product. |
23056.0 | 2022-10-24 00:00:00 UTC | Noteworthy Monday Option Activity: ABBV, ADBE, XOM | ABBV | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-abbv-adbe-xom | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,896 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 48.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. Especially high volume was seen for the $150 strike call option expiring November 18, 2022, with 3,101 contracts trading so far today, representing approximately 310,100 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange:
Adobe Inc (Symbol: ADBE) options are showing a volume of 20,371 contracts thus far today. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 46.1% of ADBE's average daily trading volume over the past month, of 4.4 million shares. Especially high volume was seen for the $300 strike call option expiring November 18, 2022, with 776 contracts trading so far today, representing approximately 77,600 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $300 strike highlighted in orange:
And Exxon Mobil Corp (Symbol: XOM) saw options trading volume of 87,668 contracts, representing approximately 8.8 million underlying shares or approximately 43.1% of XOM's average daily trading volume over the past month, of 20.3 million shares. Particularly high volume was seen for the $100 strike put option expiring October 28, 2022, with 5,227 contracts trading so far today, representing approximately 522,700 underlying shares of XOM. Below is a chart showing XOM's trailing twelve month trading history, with the $100 strike highlighted in orange:
For the various different available expirations for ABBV options, ADBE options, or XOM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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 $150 strike call option expiring November 18, 2022, with 3,101 contracts trading so far today, representing approximately 310,100 underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,896 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 48.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Especially high volume was seen for the $150 strike call option expiring November 18, 2022, with 3,101 contracts trading so far today, representing approximately 310,100 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: Adobe Inc (Symbol: ADBE) options are showing a volume of 20,371 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,896 contracts have traded so far, representing approximately 2.7 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,896 contracts have traded so far, representing approximately 2.7 million underlying shares. Especially high volume was seen for the $150 strike call option expiring November 18, 2022, with 3,101 contracts trading so far today, representing approximately 310,100 underlying shares of ABBV. That amounts to about 48.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Below is a chart showing XOM's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for ABBV options, ADBE options, or XOM options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 26,896 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 48.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. |
23057.0 | 2022-10-24 00:00:00 UTC | The Zacks Analyst Blog Highlights J&J, Roche, Eli Lilly and AbbVie | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-jj-roche-eli-lilly-and-abbvie | nan | nan | For Immediate Release
Chicago, IL – October 24, 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: J&J JNJ, Roche's RHHBY, Eli Lilly LLY and AbbVie ABBV.
Here are highlights from Friday’s Analyst Blog:
Pharma Stock Roundup: J&J Q3 Earnings Beat and More
This week,J&J began the third-quarter earnings season for the drug and biotech sector with an earnings and sales beat. Weak sales of COVID-related medicines and tests hurt Roche's third-quarter sales. Eli Lilly andAbbVie announced small acquisitions.
Recap of the Week's Most Important Stories
J&J Begins Q3 Earnings Season: J&J reported better-than-expected third-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit sales continued to do well. Sales also improved in the MedTech and Consumer segments. However, currency headwinds reduced its sales growth by 6% in the quarter amid a strengthening U.S. dollar. J&J slightly lowered its sales outlook for the year due to expected currency headwinds. It also tightened its adjusted earnings guidance range.
Roche's Q3 Revenues Dip: Roche's revenues in the third quarter declined 6% due to lower COVID-related sales in both the Pharmaceuticals and Diagnostics divisions as the effects of the pandemic declined in many countries. Roche said that the increase in COVID cases has not simultaneously boosted demand for tests and drugs. Sales in the Pharmaceuticals Division were down 6% in the third quarter, while the Diagnostics division sales declined 4%.
Roche expects sales to remain stable or grow in the low-single digits (at constant exchange rates) in 2022. Core earnings per share are estimated to grow in the low- to mid-single-digit range.
Lilly to Buy Akouos for $610M: Lilly said that it is acquiring Boston-based Akouos for approximately $487 million plus a contingent value right for an aggregate amount up to approximately $610 million. Akouos is developing gene therapies for the treatment of inner ear conditions, including hearing loss. Akouos' lead pipeline candidate is AK-OTOF, a gene therapy intended for the treatment of OTOF-mediated hearing loss, a form of sensorineural hearing loss caused by mutations in the OTOF gene.
Last month, the FDA cleared an investigational new drug submission to begin clinical studies on AK-OTOF. Akouos plans to initiate a pediatric phase I/II study on AK-OTOF for OTOF-mediated hearing loss soon.
AbbVie's New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. The acquisition will add the latter's lead pipeline candidate, DJS-002, which is in pre-clinical studies for the treatment of idiopathic pulmonary fibrosis and other fibrotic diseases.
The candidate is a potential first-in-class antibody directed to LPAR1 antagonist antibody. The deal will provide AbbVie access to DJS' proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology.
The NYSE ARCA Pharmaceutical Index declined 1% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
In the last five trading sessions, Merck rose the most (0.5%), while AstraZeneca declined the most (2.1%).
In the past six months, Lilly has gained the highest (18.1%), while AstraZeneca declined the most (17.5%).
(See the last pharma stock roundup here: FDA Nod to Omicron Jabs for Kids, MRK, MRNA Partner for Cancer Jab)
What's Next in the Pharma World?
Watch out for Merck, Sanofi and AbbVie's Q3 earnings releases and regular pipeline and regulatory updates next week.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Roche Holding AG (RHHBY): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: J&J JNJ, Roche's RHHBY, Eli Lilly LLY and AbbVie ABBV. The deal will provide AbbVie access to DJS' proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology. Eli Lilly andAbbVie announced small acquisitions. | Stocks recently featured in the blog include: J&J JNJ, Roche's RHHBY, Eli Lilly LLY and AbbVie ABBV. AbbVie's New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. Eli Lilly andAbbVie announced small acquisitions. | Stocks recently featured in the blog include: J&J JNJ, Roche's RHHBY, Eli Lilly LLY and AbbVie ABBV. Eli Lilly andAbbVie announced small acquisitions. AbbVie's New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. | Stocks recently featured in the blog include: J&J JNJ, Roche's RHHBY, Eli Lilly LLY and AbbVie ABBV. Eli Lilly andAbbVie announced small acquisitions. AbbVie's New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. |
23058.0 | 2022-10-24 00:00:00 UTC | AbbVie (ABBV) to Report Q3 Earnings: What's in the Cards? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-to-report-q3-earnings%3A-whats-in-the-cards | nan | nan | AbbVie ABBV will report third-quarter 2022 results on Oct 28, before market open. In the last reported quarter, the company delivered an earnings surprise of 1.81%.
AbbVie’s stock has increased 8.6% so far this year against the industry’s 1.5% decline.
Image Source: Zacks Investment Research
This large drugmaker’s performance has been pretty impressive, with its earnings beating estimates in each of the trailing four quarters. The company has a four-quarter earnings surprise of 1.46%, on average.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Factors to Consider
Strong demand for immunology and aesthetic products is expected to drive AbbVie’s third-quarter 2022 sales. Sales from these two portfolios generate more than half of the company’s total revenues. In addition, the company’s new drug launches in the past few quarters are likely to have generated additional sales in the third quarter. However, currency headwinds are likely to have hurt sales.
AbbVie’s immunology portfolio has been witnessing a strong surge in demand. We expect the company’s flagship drug Humira to register strong growth in the United States, which is more than likely to offset the downward trend in the drug’s international sales due to generic erosion. The Zacks Consensus Estimate for Humira is pegged at $5.55 billion, including $615 million from international markets and the rest from the U.S. market alone.
The company’s new immunology drugs, Skyrizi and Rinvoq, registered strong growth in the past few quarters. The drugs contributed more than $3 billion in combined sales in first-half 2022. The rise in sales is likely due to label expansions of both drugs to include new patient populations in the last few quarters. These label expansions are also expected to drive sales during the third quarter. During the third quarter, Rinvoq received label expansions in European Union in ulcerative colitis and non-radiographic axial spondyloarthritis indications. The Zacks Consensus Estimate for Rinvoq and Skyrizi sales in the third quarter is pegged at $726 million and $1.24 billion, respectively.
AbbVie markets Imbruvica in partnership with Johnson & Johnson JNJ and Venclexta in partnership with Roche RHHBY. We expect JNJ-partnered Imbruvica sales to decline due to novel oral therapies hurting the drug’s sales, while Roche-partnered Venclexta sales are likely to rise as new patient starts are expected to improve. The Zacks Consensus Estimate for J&J-partnered drug, Imbruvica and Roche-partnered drug, Venclexta, is pegged at $1.16 billion and $613 million, respectively. Our model estimates suggest Imbruvica sales to be $1.17 billion, while Venclexta sales are expected to stand at $636 million.
In the aesthetics franchise, we expect Botox sales to rise while Juvederm sales are expected to fall due to the loss of sales in Russia and the impact of COVID in China. ABBV’s suspension of its aesthetics business operations in Russia has affected the company’s sales as Russia is a key market for fillers. In addition, sales of the neuroscience franchise also showed strong growth in recent quarters with additional sales generated by the recently approved migraine drugs Ubrelvy and Qulipta. The trend is expected to have continued for the franchise in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for aesthetics and neuroscience products stands at $1.42 and $1.82 billion, respectively. Our model predicts the aesthetics and neuroscience product revenues to be pegged at $1.46 billion and $1.79 billion, respectively.
On theearnings call investors’ focus will likely be on AbbVie’s strategies around Humira following its potential loss of exclusivity in the United States, which is expected next year. They are also likely to ask questions about the rising competition for other drugs, including Imbruvica, on theearnings call Investors’ focus is expected to be on any update related to the guidance for 2022 due to strong currency headwinds.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.05% as both the Most Accurate Estimate is lower than the Zacks Consensus Estimate which stands at $3.56 per share.
Zacks Rank: AbbVie currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here is a large drug stock that has the right combination of elements to beat on earnings this time around:
Eli Lilly LLY has an Earnings ESP of +0.58% and a Zacks Rank #3. You can the complete list of today’s Zacks #1 Rank stocks here.
Lilly’s stock has risen 23.4% this year so far. Lilly missed earnings estimates in three of the last four quarters. Lilly has a four-quarter earnings negative surprise of 5.11%, on average. LLY is scheduled to release its third-quarter 2022 results on Nov 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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
Roche Holding AG (RHHBY): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | On theearnings call investors’ focus will likely be on AbbVie’s strategies around Humira following its potential loss of exclusivity in the United States, which is expected next year. AbbVie ABBV will report third-quarter 2022 results on Oct 28, before market open. AbbVie’s stock has increased 8.6% so far this year against the industry’s 1.5% decline. | AbbVie markets Imbruvica in partnership with Johnson & Johnson JNJ and Venclexta in partnership with Roche RHHBY. AbbVie ABBV will report third-quarter 2022 results on Oct 28, before market open. AbbVie’s stock has increased 8.6% so far this year against the industry’s 1.5% decline. | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Factors to Consider Strong demand for immunology and aesthetic products is expected to drive AbbVie’s third-quarter 2022 sales. AbbVie ABBV will report third-quarter 2022 results on Oct 28, before market open. AbbVie’s stock has increased 8.6% so far this year against the industry’s 1.5% decline. | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Factors to Consider Strong demand for immunology and aesthetic products is expected to drive AbbVie’s third-quarter 2022 sales. AbbVie ABBV will report third-quarter 2022 results on Oct 28, before market open. AbbVie’s stock has increased 8.6% so far this year against the industry’s 1.5% decline. |
23059.0 | 2022-10-22 00:00:00 UTC | 3 Healthcare Stocks That Are Too Cheap to Ignore | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-that-are-too-cheap-to-ignore-2 | nan | nan | This is a great time to hunt for deals in the equity markets. Many quality stocks continue to fall, carried downward in part by the momentum of the broader market, and even among those that are somewhat defying the trend, some now trade at more reasonable valuations than they have in quite a while.
The healthcare sector is a particularly smart place for investors to consider. Medical care will remain in high demand regardless of economic conditions, so companies in this industry can survive -- or even thrive -- despite the challenging environment. And in my view, AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Viatris (NASDAQ: VTRS) all look like bargains now.
ABBV data by YCharts
The case for AbbVie
AbbVie's shares are up 5% since January, despite the fact that Humira, its best-selling drug, will face biosimilar competition in the U.S. starting next year. The market seems to be looking beyond this headwind, and with good reason. AbbVie has gone to great lengths to decrease its reliance on the popular immunology medicine.
First, the company has developed a pair of newer immunology treatments -- Skyrizi and Rinvoq -- that have earned approvals for most of Humira's key indications. Both have grown their sales rapidly in the past couple of years. In the first half of 2022, Rinvoq's revenue increased by 55% year over year to $1.1 billion, while Skyrizi's sales jumped by 76% to $2.2 billion.
AbbVie's blockbuster acquisition of Allergan is also paying off, as its Botox franchise continues to perform well. Management asserts that it's unlikely competitors will be able to create biosimilar versions of Botox, so it could continue contributing to AbbVie's top-line growth for a while.
Humira sales won't come to a complete halt after generic versions hit the market in the U.S. -- but they will fall. That said, the rest of AbbVie's lineup is positioned to pick up the slack. The drugmaker also has a pipeline of dozens of candidates in clinical trials, some of which should eventually expand its portfolio.
For investors, it's also worth noting that AbbVie this year joined the ranks of the Dividend Kings when management raised its payout for the 50th consecutive year (including the period before it was spun off from Abbott Labs). At its current share price, it offers a dividend yield of 3.9%, making it an excellent choice for income investors. And trading at a forward price-to-earnings ratio of just 10.4 -- compared to the pharmaceutical industry's average of 12.7 -- AbbVie looks like a buy.
The case for Pfizer
Pfizer is currently making a lot of money from its coronavirus portfolio, which includes COVID-19 vaccine Comirnaty and the antiviral therapy Paxlovid. With the pandemic threat receding (albeit not disappearing), demand for both products will probably drop substantially starting next year. That will make year-over-year comparisons challenging for Pfizer in 2023, especially as its non-coronavirus lineup isn't performing well. But let's look at things in perspective.
Pfizer would have struggled a lot more in the past two years if it had not developed and marketed some of the most successful COVID-19 products. Unflattering year-over-year comparisons in 2023 seem like a small price to pay for the billions of dollars in earnings that Paxlovid and Comirnaty have generated since last year. This money has allowed Pfizer to expand its pipeline, partly through acquisitions.
It has multiple late-stage clinical trials underway, many of which are for brand-new products. For instance, Pfizer is developing an mRNA-based influenza vaccine that it hopes will address the shortcomings of the current options.
In September, the company announced that health regulators in the U.S. and Europe had accepted its application for ritlecitinib as a potential treatment for alopecia areata. Pfizer should successfully rejuvenate its lineup in the next half a decade.
Although it's not a Dividend King (nor even a Dividend Aristocrat), Pfizer has a long history of making payouts every quarter, and is an excellent stock for those seeking passive income.
Its yield at the current share price of 3.7% is well above average, and it has raised its payouts by a respectable 25% in the past five years. Pfizer's forward price-to-earnings ratio is 6.8, making it an attractively valued stock to buy right now.
The case for Viatris
Viatris is one of the world's largest generic drug manufacturers. It boasts a portfolio with hundreds of products -- among them, generics for such well-known brands as Xanax, Viagra, and Lyrica -- which it sells in dozens of countries worldwide.
Although it hasn't been smooth sailing for Viatris in the past year -- its revenue and earnings growth rates have not been impressive -- the healthcare stock possesses some redeeming qualities. First, its forward price-to-earnings ratio is a very low 2.7. On the one hand, that partly reflects Viatris' recently poor performance, but the company is improving its business.
Viatris' pipeline is vast, which allows it to expand its lineup constantly. It's on track to achieve $600 million in revenue from new product launches in 2022, and Viatris will keep earning approvals for new generics in the coming years.
Further, Viatris is in the process of selling its biosimilar portfolio to India-based Biocon, with which it has partnered on multiple programs. Viatris will receive $3.3 billion in cash and stock from the transaction, giving it more financial flexibility, a greater ability to reinvest in the business, and, of course, more capacity to increase its dividend payouts.
Viatris is committed to rewarding its shareholders with dividend hikes, and the yield is already an impressive 5%. Viatris may not deliver market-shattering share price growth, but it's a great stock to buy for income-oriented investors looking for a good deal.
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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 in my view, AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Viatris (NASDAQ: VTRS) all look like bargains now. ABBV data by YCharts The case for AbbVie AbbVie's shares are up 5% since January, despite the fact that Humira, its best-selling drug, will face biosimilar competition in the U.S. starting next year. AbbVie has gone to great lengths to decrease its reliance on the popular immunology medicine. | And in my view, AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Viatris (NASDAQ: VTRS) all look like bargains now. ABBV data by YCharts The case for AbbVie AbbVie's shares are up 5% since January, despite the fact that Humira, its best-selling drug, will face biosimilar competition in the U.S. starting next year. AbbVie has gone to great lengths to decrease its reliance on the popular immunology medicine. | For investors, it's also worth noting that AbbVie this year joined the ranks of the Dividend Kings when management raised its payout for the 50th consecutive year (including the period before it was spun off from Abbott Labs). And in my view, AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Viatris (NASDAQ: VTRS) all look like bargains now. ABBV data by YCharts The case for AbbVie AbbVie's shares are up 5% since January, despite the fact that Humira, its best-selling drug, will face biosimilar competition in the U.S. starting next year. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! And in my view, AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Viatris (NASDAQ: VTRS) all look like bargains now. ABBV data by YCharts The case for AbbVie AbbVie's shares are up 5% since January, despite the fact that Humira, its best-selling drug, will face biosimilar competition in the U.S. starting next year. |
23060.0 | 2022-10-21 00:00:00 UTC | FDA Approves AbbVie's Rinvoq For Treatment Of Active Non-radiographic Axial Spondyloarthritis | ABBV | https://www.nasdaq.com/articles/fda-approves-abbvies-rinvoq-for-treatment-of-active-non-radiographic-axial | nan | nan | (RTTNews) - AbbVie (ABBV) Friday announces that the U.S. Food and Drug Administration (FDA) has approved Rinvoq, an oral therapy for the treatment of adults with active non-radiographic axial spondyloarthritis with objective signs of inflammation who have had an inadequate response or intolerance to tumor necrosis factor blocker therapy.
This additional indication follows the FDA approval of Rinvoq in April of this year for adults with active ankylosing spondylitis who have had an inadequate response or intolerance to one or more TNF blockers, making it the first and only JAK inhibitor that is approved for both conditions.
Nr-axSpA is a chronic, progressive inflammatory rheumatic disease that causes joint inflammation, leading to back pain and stiffness, and cannot be detected by x-ray.5,6 Nr-axSpA and AS are two sub-types of a broader condition called axial spondyloarthritis. Approximately five percent of patients with nr-axSpA will progress to AS after five years, and 19 percent will progress after ten years.
"This latest FDA approval of RINVOQ in active nr-axSpA provides a new oral, once-daily treatment option for patients who historically have had limited treatment options for this painful, chronic disease," said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. "RINVOQ is now approved to treat patients across the spectrum of axial spondyloarthritis. This further underscores AbbVie's commitment to advancing the standards of care for patients living with these diseases."
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) Friday announces that the U.S. Food and Drug Administration (FDA) has approved Rinvoq, an oral therapy for the treatment of adults with active non-radiographic axial spondyloarthritis with objective signs of inflammation who have had an inadequate response or intolerance to tumor necrosis factor blocker therapy. "This latest FDA approval of RINVOQ in active nr-axSpA provides a new oral, once-daily treatment option for patients who historically have had limited treatment options for this painful, chronic disease," said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. This further underscores AbbVie's commitment to advancing the standards of care for patients living with these diseases." | (RTTNews) - AbbVie (ABBV) Friday announces that the U.S. Food and Drug Administration (FDA) has approved Rinvoq, an oral therapy for the treatment of adults with active non-radiographic axial spondyloarthritis with objective signs of inflammation who have had an inadequate response or intolerance to tumor necrosis factor blocker therapy. "This latest FDA approval of RINVOQ in active nr-axSpA provides a new oral, once-daily treatment option for patients who historically have had limited treatment options for this painful, chronic disease," said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. This further underscores AbbVie's commitment to advancing the standards of care for patients living with these diseases." | (RTTNews) - AbbVie (ABBV) Friday announces that the U.S. Food and Drug Administration (FDA) has approved Rinvoq, an oral therapy for the treatment of adults with active non-radiographic axial spondyloarthritis with objective signs of inflammation who have had an inadequate response or intolerance to tumor necrosis factor blocker therapy. "This latest FDA approval of RINVOQ in active nr-axSpA provides a new oral, once-daily treatment option for patients who historically have had limited treatment options for this painful, chronic disease," said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. This further underscores AbbVie's commitment to advancing the standards of care for patients living with these diseases." | (RTTNews) - AbbVie (ABBV) Friday announces that the U.S. Food and Drug Administration (FDA) has approved Rinvoq, an oral therapy for the treatment of adults with active non-radiographic axial spondyloarthritis with objective signs of inflammation who have had an inadequate response or intolerance to tumor necrosis factor blocker therapy. "This latest FDA approval of RINVOQ in active nr-axSpA provides a new oral, once-daily treatment option for patients who historically have had limited treatment options for this painful, chronic disease," said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. This further underscores AbbVie's commitment to advancing the standards of care for patients living with these diseases." |
23061.0 | 2022-10-21 00:00:00 UTC | AbbVie (ABBV) Reports Next Week: Wall Street Expects Earnings Growth | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-reports-next-week%3A-wall-street-expects-earnings-growth-1 | nan | nan | The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This drugmaker is expected to post quarterly earnings of $3.56 per share in its upcoming report, which represents a year-over-year change of +6.9%.
Revenues are expected to be $14.92 billion, up 4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.17% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AbbVie?
For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.05%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AbbVie would post earnings of $3.31 per share when it actually produced earnings of $3.37, delivering a surprise of +1.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AbbVie doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Merck (MRK), another stock in the Zacks Large Cap Pharmaceuticals industry, is expected to report earnings per share of $1.68 for the quarter ended September 2022. This estimate points to a year-over-year change of -4%. Revenues for the quarter are expected to be $14.19 billion, up 7.9% from the year-ago quarter.
The consensus EPS estimate for Merck has been revised 0.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.02%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Merck will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. | The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. | For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. How Have the Numbers Shaped Up for AbbVie? | For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. How Have the Numbers Shaped Up for AbbVie? |
23062.0 | 2022-10-21 00:00:00 UTC | AbbVie (ABBV) to Boost Immunology Pipeline With New Acquisition | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-to-boost-immunology-pipeline-with-new-acquisition | nan | nan | AbbVie Inc. ABBV recently announced that it has acquired UK-based private biotech, DJS Antibodies Ltd, to develop novel antibodies against difficult-to-drug protein targets in immunology.
DJS utilizes its proprietary HEPTAD platform for antibody discovery with specific capabilities targeting transmembrane protein targets. With the acquisition of DJS, ABBV will be able to access this unique platform, which, coupled with its own capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets.
DJS’ lead pipeline candidate, DJS-002, a first-in-class lysophosphatidic acid receptor 1 antagonist antibody, is currently in preclinical development for the treatment of Idiopathic Pulmonary Fibrosis (IPF) and other fibrotic diseases.
Per the above agreement, AbbVie will make a cash payment of around $255 million upon the closing of the acquisition, while shareholders of DJS are also eligible to receive certain milestone payments upon the successful development and potential approval for DJS-002.
Shares of AbbVie have risen 5.6% so far this year against the industry’s decline of 3.7%.
Image Source: Zacks Investment Research
AbbVie is presently focused on strengthening its immunology portfolio through various means of partnership deals and collaborations. While its anti-inflammatory drug Humira continues to be a key revenue driver for the company, it is set to lose exclusivity in the United States next year.
In the international markets, AbbVie is already facing direct biosimilar competition from other pharma companies in Europe and other countries, resulting in a loss of product revenues.
To prepare for the loss in Humira sales due to the loss of its patent exclusivity, AbbVie has two relatively new immunology drugs, Skyrizi (risankizumab) and Rinvoq (upadacitinib), which can drive long-term growth.
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Akero Therapeutics, Inc. AKRO, ORIC Pharmaceuticals, Inc. ORIC and Aeglea BioTherapeutics, Inc. AGLE, 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.
Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.
Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66%, on average.
Loss per share estimates for ORIC Pharmaceuticals narrowed 5.9% for 2022 and 7.3% for 2023 in the past 60 days.
Earnings of ORIC Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. ORIC delivered an earnings surprise of 8.85%, on average.
Loss per share estimates for Aeglea BioTherapeutics narrowed 3.5% for 2022 and 1.2% for 2023 in the past 60 days.
Earnings of Aeglea BioTherapeutics surpassed estimates in one of the trailing four quarters and missed on the other three occasions. AGLE delivered a negative earnings surprise of 3.34%, 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 >>
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Oric Pharmaceuticals, Inc. (ORIC): 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. | With the acquisition of DJS, ABBV will be able to access this unique platform, which, coupled with its own capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets. Image Source: Zacks Investment Research AbbVie is presently focused on strengthening its immunology portfolio through various means of partnership deals and collaborations. AbbVie Inc. ABBV recently announced that it has acquired UK-based private biotech, DJS Antibodies Ltd, to develop novel antibodies against difficult-to-drug protein targets in immunology. | AbbVie Inc. ABBV recently announced that it has acquired UK-based private biotech, DJS Antibodies Ltd, to develop novel antibodies against difficult-to-drug protein targets in immunology. With the acquisition of DJS, ABBV will be able to access this unique platform, which, coupled with its own capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets. Per the above agreement, AbbVie will make a cash payment of around $255 million upon the closing of the acquisition, while shareholders of DJS are also eligible to receive certain milestone payments upon the successful development and potential approval for DJS-002. | Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc. ABBV recently announced that it has acquired UK-based private biotech, DJS Antibodies Ltd, to develop novel antibodies against difficult-to-drug protein targets in immunology. With the acquisition of DJS, ABBV will be able to access this unique platform, which, coupled with its own capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets. | AbbVie Inc. ABBV recently announced that it has acquired UK-based private biotech, DJS Antibodies Ltd, to develop novel antibodies against difficult-to-drug protein targets in immunology. With the acquisition of DJS, ABBV will be able to access this unique platform, which, coupled with its own capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets. Per the above agreement, AbbVie will make a cash payment of around $255 million upon the closing of the acquisition, while shareholders of DJS are also eligible to receive certain milestone payments upon the successful development and potential approval for DJS-002. |
23063.0 | 2022-10-21 00:00:00 UTC | Pharma Stock Roundup: JNJ Q3 Earnings Beat, RHHBY Sales Weak, LLY, ABBV Ink M&A Deals | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-jnj-q3-earnings-beat-rhhby-sales-weak-lly-abbv-ink-ma-deals | nan | nan | This week, J&J JNJ began the third-quarter earnings season for the drug and biotech sector with an earnings and sales beat. Weak sales of COVID-related medicines and tests hurt Roche’s RHHBY third-quarter sales. Eli Lilly LLY and AbbVie ABBV announced small acquisitions.
Recap of the Week’s Most Important Stories
J&J Begins Q3 Earnings Season: J&J reported better-than-expected third-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit sales continued to do well. Sales also improved in the MedTech and Consumer segments. However, currency headwinds reduced its sales growth by 6% in the quarter amid a strengthening U.S. dollar. J&J slightly lowered its sales outlook for the year due to expected currency headwinds. It also tightened its adjusted earnings guidance range.
Roche’s Q3 Revenues Dip: Roche’s revenues in the third quarter declined 6% due to lower COVID-related sales in both the Pharmaceuticals and Diagnostics divisions as the effects of the pandemic declined in many countries. Roche said that the increase in COVID cases has not simultaneously boosted demand for tests and drugs. Sales in the Pharmaceuticals Division were down 6% in the third quarter, while the Diagnostics division sales declined 4%. Roche expects sales to remain stable or grow in the low-single digits (at constant exchange rates) in 2022. Core earnings per share are estimated to grow in the low- to mid-single-digit range.
Lilly to Buy Akouos for $610M: Lilly said that it is acquiring Boston-based Akouos for approximately $487 million plus a contingent value right for an aggregate amount up to approximately $610 million. Akouos is developing gene therapies for the treatment of inner ear conditions, including hearing loss. Akouos’ lead pipeline candidate is AK-OTOF, a gene therapy intended for the treatment of OTOF-mediated hearing loss, a form of sensorineural hearing loss caused by mutations in the OTOF gene. Last month, the FDA cleared an investigational new drug submission to begin clinical studies on AK-OTOF. Akouos plans to initiate a pediatric phase I/II study on AK-OTOF for OTOF-mediated hearing loss soon.
AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. The acquisition will add the latter’s lead pipeline candidate, DJS-002, which is in pre-clinical studies for the treatment of idiopathic pulmonary fibrosis and other fibrotic diseases. The candidate is a potential first-in-class antibody directed to LPAR1 antagonist antibody. The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology.
The NYSE ARCA Pharmaceutical Index declined 1% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Merck rose the most (0.5%), while AstraZeneca declined the most (2.1%).
In the past six months, Lilly has gained the highest (18.1%), while AstraZeneca declined the most (17.5%).
(See the last pharma stock roundup here: FDA Nod to Omicron Jabs for Kids, MRK, MRNA Partner for Cancer Jab)
What's Next in the Pharma World?
Watch out for Merck, Sanofi and AbbVie’s Q3 earnings releases and 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.
Free: See Our Top Stock and 4 Runners Up >>
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Roche Holding AG (RHHBY): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology. Eli Lilly LLY and AbbVie ABBV announced small acquisitions. AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. | AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. Eli Lilly LLY and AbbVie ABBV announced small acquisitions. The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology. | Eli Lilly LLY and AbbVie ABBV announced small acquisitions. AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology. | Eli Lilly LLY and AbbVie ABBV announced small acquisitions. AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology. |
23064.0 | 2022-10-21 00:00:00 UTC | 3 Dividend Aristocrats to Buy Right Now With No Hesitation | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-right-now-with-no-hesitation | nan | nan | It can sometimes be difficult to make a decision about buying a stock. That's especially the case when the overall market is highly volatile.
But investing in high-quality stocks can help make the process less painful. Most companies that belong to the elite group of Dividend Aristocrats -- S&P 500 members that have increased their dividends for at least 25 consecutive years -- meet that quality threshold. Here are three Dividend Aristocrats to buy right now with no hesitation (listed in alphabetical order).
1. AbbVie
AbbVie (NYSE: ABBV) has increased its dividend for 50 years in a row. Since separating from Abbott Labs in 2013, the big drugmaker has raised its dividend by more than 250%. Its dividend yield stands at nearly 4%.
The stock has also handily beaten the S&P 500 so far this year. This performance follows a 26% gain in 2021. Despite the market-beating returns, AbbVie's valuation remains attractive, with shares trading at a little over 12 times expected earnings.
You might be surprised by AbbVie's rise considering that the company faces the loss of U.S. exclusivity for its top-selling drug, Humira, in just a few months. However, the market seems to have already baked the anticipated revenue decline into the stock price. More importantly, AbbVie should be poised to quickly return to solid growth.
AbbVie already has two successors to Humira on the market -- Rinvoq and Skyrizi. It fully expects the two products will together eventually top Humira's peak annual sales. In addition, the company's lineup features several other solid growth drivers, notably including antipsychotic drug Vraylar and blood cancer drug Venclexta.
Some might dwell on AbbVie's temporary pain in 2023. Smart investors, though, will focus on where the drugmaker will be three or more years from now.
2. Air Products & Chemicals
Air Products & Chemicals (NYSE: APD) has raised its dividend for 40 consecutive years. The industrial gas producer expects to return more than $1.4 billion to shareholders this year through its dividend program. Its dividend currently yields nearly 2.8%.
Unlike AbbVie, Air Products hasn't delivered positive returns so far in 2022. The stock is down around 20%, primarily as a result of investors' concerns about the economy.
But the company's business remains strong. Air Products' sales jumped 22% year over year in its latest quarter. Earnings rose 11% despite some headwinds from inflation, the strong U.S. dollar, and supply chain issues.
Even better, Air Products' long-term prospects look bright. The company is already the world leader in gray hydrogen, which is created using natural gas. It intends to leverage this position to extend its dominance into low-carbon blue hydrogen and zero-carbon green hydrogen.
3. Chevron
Chevron (NYSE: CVX) has increased its dividend for 35 consecutive years. The oil and gas giant has long been known for its attractive dividend yields. That's still the case, with Chevron's dividend yielding more than 3.5%.
In addition to its great dividend, Chevron has generated impressive share price appreciation this year as well. It's one of the best Dow Jones stocks of 2022 so far, with shares soaring close to 40%.
The company's near-term prospects appear to be solid. Oil prices have begun to rise again as a result of the OPEC+ decision to cut production. Global supply also continues to be affected by the Russian invasion of Ukraine.
Oil stocks like Chevron could be less appealing over the longer term. However, the demand for fossil fuels won't disappear anytime soon. Chevron is also focusing more heavily on clean energy solutions. For example, the company recently acquired Renewable Energy Group in a deal that will make it one of the leaders in renewable fuels.
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Keith Speights has positions in AbbVie and Air Products & Chemicals. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Despite the market-beating returns, AbbVie's valuation remains attractive, with shares trading at a little over 12 times expected earnings. You might be surprised by AbbVie's rise considering that the company faces the loss of U.S. exclusivity for its top-selling drug, Humira, in just a few months. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 years in a row. | Unlike AbbVie, Air Products hasn't delivered positive returns so far in 2022. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 years in a row. Despite the market-beating returns, AbbVie's valuation remains attractive, with shares trading at a little over 12 times expected earnings. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 years in a row. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in AbbVie and Air Products & Chemicals. Despite the market-beating returns, AbbVie's valuation remains attractive, with shares trading at a little over 12 times expected earnings. | Unlike AbbVie, Air Products hasn't delivered positive returns so far in 2022. * 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) has increased its dividend for 50 years in a row. |
23065.0 | 2022-10-20 00:00:00 UTC | AbbVie (ABBV) Stock Moves -0.14%: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-moves-0.14%3A-what-you-should-know | nan | nan | AbbVie (ABBV) closed at $142.93 in the latest trading session, marking a -0.14% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.8%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the drugmaker had gained 2.01% over the past month. This has outpaced the Medical sector's loss of 3.06% and the S&P 500's loss of 5.13% in that time.
AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2022. The company is expected to report EPS of $3.56, up 6.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.92 billion, up 4.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.91 per share and revenue of $59.02 billion, which would represent changes of +9.53% and +5.02%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 10.29. This valuation marks a discount compared to its industry's average Forward P/E of 12.69.
Also, we should mention that ABBV has a PEG ratio of 4.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $142.93 in the latest trading session, marking a -0.14% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2022. Investors should also note any recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed at $142.93 in the latest trading session, marking a -0.14% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2022. Investors should also note any recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed at $142.93 in the latest trading session, marking a -0.14% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2022. Investors should also note any recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed at $142.93 in the latest trading session, marking a -0.14% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2022. Investors should also note any recent changes to analyst estimates for AbbVie. |
23066.0 | 2022-10-20 00:00:00 UTC | Walmart to pay $215 mln to settle Florida opioid claims | ABBV | https://www.nasdaq.com/articles/walmart-to-pay-%24215-mln-to-settle-florida-opioid-claims-0 | nan | nan | By Brendan Pierson
Oct 20 (Reuters) - Walmart Inc WMT.N has agreed to pay $215 million to resolve claims its pharmacies fueled an epidemic of opioid addiction in Florida, the state's attorney general announced on Thursday.
As part of the deal, Walmart has also agreed to dispense 672,000 treatment kits with the anti-overdose drug naloxone to first responders in the state.
"I'm grateful for Walmart stepping up and agreeing to partner with the state to provide law enforcement and first responders with much-needed Naloxone," Attorney General Ashley Moody said in a statement. "This will greatly help in our continuing mission to end the opioid crisis and save lives."
The settlement comes on top of previous deals the state struck with pharmacy operators Walgreens Boots Alliance WBA.Oand CVS Health CorpCVS.N, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TAand AbbVie Inc ABBV.N, and others.
The state has secured a total of $3.2 billion through legal action to help fight the opioid crisis, according to Moody's office.
"This partnership is the latest chapter in Walmart’s commitment to fight the opioid crisis," Walmart spokesperson Randy Hargrove said in a statement.
The company did not admit any wrongdoing.
(Reporting By Brendan Pierson in New York; Editing by Mark Porter and Deepa Babington)
((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. | The settlement comes on top of previous deals the state struck with pharmacy operators Walgreens Boots Alliance WBA.Oand CVS Health CorpCVS.N, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TAand AbbVie Inc ABBV.N, and others. By Brendan Pierson Oct 20 (Reuters) - Walmart Inc WMT.N has agreed to pay $215 million to resolve claims its pharmacies fueled an epidemic of opioid addiction in Florida, the state's attorney general announced on Thursday. "I'm grateful for Walmart stepping up and agreeing to partner with the state to provide law enforcement and first responders with much-needed Naloxone," Attorney General Ashley Moody said in a statement. | The settlement comes on top of previous deals the state struck with pharmacy operators Walgreens Boots Alliance WBA.Oand CVS Health CorpCVS.N, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TAand AbbVie Inc ABBV.N, and others. By Brendan Pierson Oct 20 (Reuters) - Walmart Inc WMT.N has agreed to pay $215 million to resolve claims its pharmacies fueled an epidemic of opioid addiction in Florida, the state's attorney general announced on Thursday. "I'm grateful for Walmart stepping up and agreeing to partner with the state to provide law enforcement and first responders with much-needed Naloxone," Attorney General Ashley Moody said in a statement. | The settlement comes on top of previous deals the state struck with pharmacy operators Walgreens Boots Alliance WBA.Oand CVS Health CorpCVS.N, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TAand AbbVie Inc ABBV.N, and others. By Brendan Pierson Oct 20 (Reuters) - Walmart Inc WMT.N has agreed to pay $215 million to resolve claims its pharmacies fueled an epidemic of opioid addiction in Florida, the state's attorney general announced on Thursday. "I'm grateful for Walmart stepping up and agreeing to partner with the state to provide law enforcement and first responders with much-needed Naloxone," Attorney General Ashley Moody said in a statement. | The settlement comes on top of previous deals the state struck with pharmacy operators Walgreens Boots Alliance WBA.Oand CVS Health CorpCVS.N, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TAand AbbVie Inc ABBV.N, and others. "I'm grateful for Walmart stepping up and agreeing to partner with the state to provide law enforcement and first responders with much-needed Naloxone," Attorney General Ashley Moody said in a statement. "This will greatly help in our continuing mission to end the opioid crisis and save lives." |
23067.0 | 2022-10-20 00:00:00 UTC | AbbVie To Buy UK-based Biotechnology Company DJS Antibodies For About $255 Mln | ABBV | https://www.nasdaq.com/articles/abbvie-to-buy-uk-based-biotechnology-company-djs-antibodies-for-about-%24255-mln | nan | nan | (RTTNews) - AbbVie (ABBV) said that it has agreed to buy a privately-held UK-based biotechnology company DJS Antibodies Ltd for about $255 million in cash.
DJS shareholders remain eligible for potential additional payments upon the achievement of certain development milestones related to the success of the DJS-002 program. AbbVie anticipates retaining all current DJS employees and its facility in Oxford.
DJS is backed by founding investors Oxford Science Enterprises and Johnson & Johnson Innovation Ltd., along with LifeArc, Sedgwick Yard and Amgen Ventures.
DJS Antibodies is a privately-held UK-based biotechnology company dedicated to discovering and developing antibody medicines that target difficult-to-drug disease-causing proteins, such as G protein-coupled receptors (GPCRs). DJS's lead program is DJS-002, a potential first-in-class lysophosphatidic acid (LPA) receptor 1 antagonist antibody currently in investigational preclinical studies for the treatment of Idiopathic Pulmonary Fibrosis and other fibrotic diseases.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that it has agreed to buy a privately-held UK-based biotechnology company DJS Antibodies Ltd for about $255 million in cash. AbbVie anticipates retaining all current DJS employees and its facility in Oxford. DJS shareholders remain eligible for potential additional payments upon the achievement of certain development milestones related to the success of the DJS-002 program. | (RTTNews) - AbbVie (ABBV) said that it has agreed to buy a privately-held UK-based biotechnology company DJS Antibodies Ltd for about $255 million in cash. AbbVie anticipates retaining all current DJS employees and its facility in Oxford. DJS is backed by founding investors Oxford Science Enterprises and Johnson & Johnson Innovation Ltd., along with LifeArc, Sedgwick Yard and Amgen Ventures. | (RTTNews) - AbbVie (ABBV) said that it has agreed to buy a privately-held UK-based biotechnology company DJS Antibodies Ltd for about $255 million in cash. AbbVie anticipates retaining all current DJS employees and its facility in Oxford. DJS Antibodies is a privately-held UK-based biotechnology company dedicated to discovering and developing antibody medicines that target difficult-to-drug disease-causing proteins, such as G protein-coupled receptors (GPCRs). | (RTTNews) - AbbVie (ABBV) said that it has agreed to buy a privately-held UK-based biotechnology company DJS Antibodies Ltd for about $255 million in cash. AbbVie anticipates retaining all current DJS employees and its facility in Oxford. DJS shareholders remain eligible for potential additional payments upon the achievement of certain development milestones related to the success of the DJS-002 program. |
23068.0 | 2022-10-20 00:00:00 UTC | AbbVie: SKYRIZI Gets Health Canada Approval To Treat Moderately To Severely Active Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvie%3A-skyrizi-gets-health-canada-approval-to-treat-moderately-to-severely-active-crohns | nan | nan | (RTTNews) - AbbVie (ABBV) announced Health Canada approval for SKYRIZI for the treatment of adults with moderately to severely active Crohn's disease. The company said the third approved indication for SKYRIZI is supported by data from three phase 3 clinical trials ? ADVANCE, MOTIVATE and FORTIFY.
Tracey Ramsay, Vice President and General Manager, AbbVie Canada, said: "This approval represents the first new treatment option in six years for people with moderately to severely active Crohn's disease, and we are pleased that Canadians will now be able to benefit from this therapy."
SKYRIZI (risankizumab) is part of a collaboration between Boehringer Ingelheim and AbbVie.
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 Health Canada approval for SKYRIZI for the treatment of adults with moderately to severely active Crohn's disease. Tracey Ramsay, Vice President and General Manager, AbbVie Canada, said: "This approval represents the first new treatment option in six years for people with moderately to severely active Crohn's disease, and we are pleased that Canadians will now be able to benefit from this therapy." SKYRIZI (risankizumab) is part of a collaboration between Boehringer Ingelheim and AbbVie. | (RTTNews) - AbbVie (ABBV) announced Health Canada approval for SKYRIZI for the treatment of adults with moderately to severely active Crohn's disease. Tracey Ramsay, Vice President and General Manager, AbbVie Canada, said: "This approval represents the first new treatment option in six years for people with moderately to severely active Crohn's disease, and we are pleased that Canadians will now be able to benefit from this therapy." SKYRIZI (risankizumab) is part of a collaboration between Boehringer Ingelheim and AbbVie. | (RTTNews) - AbbVie (ABBV) announced Health Canada approval for SKYRIZI for the treatment of adults with moderately to severely active Crohn's disease. Tracey Ramsay, Vice President and General Manager, AbbVie Canada, said: "This approval represents the first new treatment option in six years for people with moderately to severely active Crohn's disease, and we are pleased that Canadians will now be able to benefit from this therapy." SKYRIZI (risankizumab) is part of a collaboration between Boehringer Ingelheim and AbbVie. | (RTTNews) - AbbVie (ABBV) announced Health Canada approval for SKYRIZI for the treatment of adults with moderately to severely active Crohn's disease. Tracey Ramsay, Vice President and General Manager, AbbVie Canada, said: "This approval represents the first new treatment option in six years for people with moderately to severely active Crohn's disease, and we are pleased that Canadians will now be able to benefit from this therapy." SKYRIZI (risankizumab) is part of a collaboration between Boehringer Ingelheim and AbbVie. |
23069.0 | 2022-10-19 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-1 | 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 +2%, compared to the Zacks S&P 500 composite's -3.8% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 1.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.56 per share, indicating a change of +6.9% 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 $13.91 points to a change of +9.5% from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $11.67 indicates a change of -16.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $14.92 billion for the current quarter points to a year-over-year change of +4%. The $59.02 billion and $55.02 billion estimates for the current and next fiscal years indicate changes of +5% and -6.8%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.58 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $3.37 for the same period compares with $3.11 a year ago.
Compared to the Zacks Consensus Estimate of $14.65 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was +1.81%.
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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 1.3%. | Last Reported Results and Surprise History AbbVie reported revenues of $14.58 billion in the last reported quarter, representing a year-over-year change of +4.5%. 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 1.3%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 1.3%. | 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 1.3%. For the current quarter, AbbVie is expected to post earnings of $3.56 per share, indicating a change of +6.9% from the year-ago quarter. |
23070.0 | 2022-10-18 00:00:00 UTC | VTV, KO, PEP, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/vtv-ko-pep-abbv%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $859.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 724,762,192 to 731,450,766). Among the largest underlying components of VTV, in trading today Coca-Cola Co (Symbol: KO) is up about 1.4%, PepsiCo Inc (Symbol: PEP) is up about 1.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.1%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average:
Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $130.10. 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 »
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 VTV, in trading today Coca-Cola Co (Symbol: KO) is up about 1.4%, PepsiCo Inc (Symbol: PEP) is up about 1.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.1%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $130.10. 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 VTV, in trading today Coca-Cola Co (Symbol: KO) is up about 1.4%, PepsiCo Inc (Symbol: PEP) is up about 1.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.1%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $130.10. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of VTV, in trading today Coca-Cola Co (Symbol: KO) is up about 1.4%, PepsiCo Inc (Symbol: PEP) is up about 1.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $859.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 724,762,192 to 731,450,766). For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $130.10. | Among the largest underlying components of VTV, in trading today Coca-Cola Co (Symbol: KO) is up about 1.4%, PepsiCo Inc (Symbol: PEP) is up about 1.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $859.4 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 724,762,192 to 731,450,766). For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $130.10. |
23071.0 | 2022-10-18 00:00:00 UTC | Do Options Traders Know Something About AbbVie (ABBV) Stock We Don't? | ABBV | https://www.nasdaq.com/articles/do-options-traders-know-something-about-abbvie-abbv-stock-we-dont-0 | nan | nan | Investors in AbbVie Inc. ABBV need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 20, 2023 $47.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for AbbVie shares, but what is the fundamental picture for the company? Currently, AbbVie is a Zacks Rank #3 (Hold) in the Large Cap Pharmaceuticals industry that ranks in the Bottom 45% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while four have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.59 per share to $3.56 in that period.
Given the way analysts feel about AbbVie right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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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. | Investors in AbbVie Inc. ABBV need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for AbbVie shares, but what is the fundamental picture for the company? Currently, AbbVie is a Zacks Rank #3 (Hold) in the Large Cap Pharmaceuticals industry that ranks in the Bottom 45% of our Zacks Industry Rank. | Investors in AbbVie Inc. ABBV need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for AbbVie shares, but what is the fundamental picture for the company? Currently, AbbVie is a Zacks Rank #3 (Hold) in the Large Cap Pharmaceuticals industry that ranks in the Bottom 45% of our Zacks Industry Rank. | Investors in AbbVie Inc. ABBV need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for AbbVie shares, but what is the fundamental picture for the company? Currently, AbbVie is a Zacks Rank #3 (Hold) in the Large Cap Pharmaceuticals industry that ranks in the Bottom 45% of our Zacks Industry Rank. | Given the way analysts feel about AbbVie right now, this huge implied volatility could mean there’s a trade developing. Investors in AbbVie Inc. ABBV need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for AbbVie shares, but what is the fundamental picture for the company? |
23072.0 | 2022-10-17 00:00:00 UTC | 4 Stocks I Own and Will Buy More of if the Market Crashes | ABBV | https://www.nasdaq.com/articles/4-stocks-i-own-and-will-buy-more-of-if-the-market-crashes | nan | nan | We all know that, on a basic level, profiting off the market means buying low and selling high. Yet it's challenging to confidently know when is the best time to pull the trigger. The market moves fast. The latest example of this was last Thursday when the Dow Jones Industrial Average went on a breakneck 1,500-point rollercoaster ride over the course of a day.
Long-term investors, of course, know that the best way to handle such situations is to not pay a lot of heed to them. Rather, investors should find great companies and buy in at a good time and hold on to the stock until the money is needed for something else. Paying attention to big price swings is useful mostly to determine those opportunistic times to "buy low."
To do this, it helps to have a plan in place before the market retreats, for two simple reasons:
A solid plan helps an investor confidently make purchases when others are panicking.
Advanced research puts an investor ahead of the curve if the market makes a hasty comeback. (Did you know that the market's best single days typically happen less than a month after the worst single days? It's true!)
If the market has another crash, I've got four stocks in mind to buy (mostly because I already own stock in all four and I'm always looking for discount opportunities to add to my position). The four stocks are AbbVie (NYSE: ABBV), Amazon (NASDAQ: AMZN), Texas Instruments (NASDAQ: TXN), and Intuitive Surgical (NASDAQ: ISRG). All four have that "it" factor that makes it a confident buy in the event of a broader market tumble. Let me explain.
1. AbbVie is a massive outperformer
Boring old pharmaceutical giant AbbVie is the largest holding in my portfolio. Earlier this year, I called it a top pick in this market. Its dividend yield and stock price consistency in a bear market are significant draws. Pharmaceutical stocks are often a safe haven during a recession because medications are generally one of the last things consumers will cut back on in a recession.
That perception that what Abbvie offers is a necessity is one reason it managed a positive total return in 2022 while the broader market is down by double-digit percentages (see below).
ABBV Total Return Level data by YCharts.
Despite the good return, the stock's dividend yield hovers near 4%, and the payment has been raised yearly since the company's creation in 2013 as a spinoff of Abbott Laboratories. AbbVie's dividend is somewhat inflated at the moment because the stock price is discounted over concerns that its popular Humira drug will soon have competition from biosimilars in the U.S.
Humira accounted for $17 billion in sales in the U.S. in 2021. That number will likely drop significantly when biosimilars come out. However, management has reaffirmed guidance of over $15 billion in expected sales from its newer drugs, Rinvoq and Skyrizi, by 2025. Increasing sales of other drugs, such as Botox and Vraylar, should also offset losses and keep earnings growing.
AbbVie is a world-class drugmaker with a fantastic portfolio and healthy pipeline. A market crash could be a terrific opportunity to snag a great stock at a discount and a potentially even higher dividend yield.
2. Amazon is essential
Unlike Abbvie, Amazon underperformed the market this year. The pandemic pulled a lot of growth forward for Amazon and now it's experiencing the hangover effects of all that growth. It's also dealing with a tight labor market, rising logistical costs, and inflation, all of which hit profits. The short-term outlook is a bit gloomy, but we are long-term investors and Amazon is not going anywhere.
The U.S. Census Bureau estimates that e-commerce sales account for about 14.5% of all retail sales in the U.S. Around 50% of all those sales go through Amazon. That says two things: There is massive room for further growth in e-commerce and Amazon has a majority stake in it.
And yet, as big as Amazon is in the retail marketplace, its Amazon Web Services that's creating the biggest draw for investors at the moment. The revenue-generating capability of this cloud computing segment alone can nearly justify the stock's current valuation. AWS is expected to hit over $80 billion in sales this year, and its operating margin consistently tops 30%. AWS holds the top spot as far as cloud infrastructure market share (34%) and is an essential service for our daily economy because so many integral systems rely on it. Even if the market plunges, investors should feel confident that Amazon stock has significant long-term value.
3. Texas Instruments knows money management
Texas Instruments provides semiconductors to several end markets. The largest is the industrial segment, meaning the company is less sensitive to swings in the consumer electronics market than many other chipmakers. Texas Instruments supplies over 80,000 products to more than 100,000 customers. Product and industry diversity allow the company to generate consistent results.
The company prides itself on its cash management, and its track record speaks for itself. The dividend has grown for 18 straight years (even during the Great Recession) at a compound annual growth rate (CAGR) of 25%. Free cash flow per share has grown 12% annually during this time, and the share count has been reduced by 46% through stock buybacks.
Semiconductors are critical to our daily lives and the economy. Couple this with Texas Instrument's impeccable record of rewarding shareholders, and this stock is a shrewd pickup in the event of a market dive.
4. Intuitive Surgical: A massive moat and a pile of cash
The pandemic was tough on robotic-assisted surgery specialist Intuitive Surgical's growth or stock price. Many non-emergency surgeries were pushed back when hospitals filled with COVID-19 patients. Then there was a surge in surgeries as patients were allowed back in, causing speculators to overhype the stock and inflate its valuation. Now, some hospitals are considering scaling back budgets to account for a potential recession. Those same stock speculators are deflating the valuation and the stock price is down nearly 50% this year as a result. This stock price volatility tells one story, but the company's fundamentals tell a different story.
For starters, Intuitive Surgical is still growing. Procedures grew 14% year over year in the second quarter, and revenue increased by 4%. Revenue increased at a CAGR of 11% from Q2 2019 to Q2 2022. Similar to Amazon, the short-term has seen some volatility, but the long-term trend is positive.
Our population is aging, and robotic-assisted surgery is becoming the norm. This acceptance means more demand. Intuitive makes around 70% of its revenue from recurring sources like parts, services, and instruments; more procedures means more revenue. According to the Mayo Clinic, robotic-assisted surgery results in fewer complications, less pain, quicker recovery, and comparatively minor patient scars. Most metropolitan hospitals probably already use its systems.
Intuitive currently holds 80% of the market share for advanced surgical systems and has a large moat because of the barriers to entry, including high development costs, lofty switching costs, and regulatory hurdles. Intuitive has tremendous pricing power because of its industry dominance.
With this pricing power comes potential profit, which also profits shareholders. Intuitive reported $8.18 billion in cash and investments on hand in Q2. The cash hoard is a whopping 12% of the current market cap. The company uses some of it to take advantage of the stock's drop by repurchasing shares -- $500 million last quarter and another $3.5 billion authorized. This stock has already taken a beating and offers buying opportunities now. A broader market crash would make Intuitive Surgical stock even more tempting for long-term investors.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bradley Guichard has positions in AbbVie, Amazon, Intuitive Surgical, and Texas Instruments and has the following options: short November 2022 $150 calls on AbbVie. The Motley Fool has positions in and recommends Amazon, Intuitive Surgical, and Texas Instruments. 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 four stocks are AbbVie (NYSE: ABBV), Amazon (NASDAQ: AMZN), Texas Instruments (NASDAQ: TXN), and Intuitive Surgical (NASDAQ: ISRG). AbbVie is a massive outperformer Boring old pharmaceutical giant AbbVie is the largest holding in my portfolio. That perception that what Abbvie offers is a necessity is one reason it managed a positive total return in 2022 while the broader market is down by double-digit percentages (see below). | The four stocks are AbbVie (NYSE: ABBV), Amazon (NASDAQ: AMZN), Texas Instruments (NASDAQ: TXN), and Intuitive Surgical (NASDAQ: ISRG). AbbVie is a massive outperformer Boring old pharmaceutical giant AbbVie is the largest holding in my portfolio. That perception that what Abbvie offers is a necessity is one reason it managed a positive total return in 2022 while the broader market is down by double-digit percentages (see below). | The four stocks are AbbVie (NYSE: ABBV), Amazon (NASDAQ: AMZN), Texas Instruments (NASDAQ: TXN), and Intuitive Surgical (NASDAQ: ISRG). AbbVie is a massive outperformer Boring old pharmaceutical giant AbbVie is the largest holding in my portfolio. That perception that what Abbvie offers is a necessity is one reason it managed a positive total return in 2022 while the broader market is down by double-digit percentages (see below). | The four stocks are AbbVie (NYSE: ABBV), Amazon (NASDAQ: AMZN), Texas Instruments (NASDAQ: TXN), and Intuitive Surgical (NASDAQ: ISRG). AbbVie is a massive outperformer Boring old pharmaceutical giant AbbVie is the largest holding in my portfolio. That perception that what Abbvie offers is a necessity is one reason it managed a positive total return in 2022 while the broader market is down by double-digit percentages (see below). |
23073.0 | 2022-10-17 00:00:00 UTC | AbbVie Inc. (NYSE:ABBV) insiders sold US$8.4m worth of stock, a possible red flag that's yet to materialize | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-nyse%3Aabbv-insiders-sold-us%248.4m-worth-of-stock-a-possible-red-flag-thats-yet | nan | nan | While AbbVie Inc. (NYSE:ABBV) shareholders have enjoyed a good week with stock up 3.0%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell US$8.4m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At AbbVie
The Independent Director, Roxanne Austin, made the biggest insider sale in the last 12 months. That single transaction was for US$8.4m worth of shares at a price of US$117 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$143. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 86% of Roxanne Austin's holding. Roxanne Austin was the only individual insider to sell over the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:ABBV Insider Trading Volume October 17th 2022
I will like AbbVie better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. AbbVie insiders own about US$173m worth of shares (which is 0.07% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The AbbVie Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of AbbVie, we can't say the same about the selling of shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of AbbVie.
But note: AbbVie may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While AbbVie Inc. (NYSE:ABBV) shareholders have enjoyed a good week with stock up 3.0%, they need remain vigilant. The Last 12 Months Of Insider Transactions At AbbVie The Independent Director, Roxanne Austin, made the biggest insider sale in the last 12 months. NYSE:ABBV Insider Trading Volume October 17th 2022 I will like AbbVie better if I see some big insider buys. | The Last 12 Months Of Insider Transactions At AbbVie The Independent Director, Roxanne Austin, made the biggest insider sale in the last 12 months. While AbbVie Inc. (NYSE:ABBV) shareholders have enjoyed a good week with stock up 3.0%, they need remain vigilant. NYSE:ABBV Insider Trading Volume October 17th 2022 I will like AbbVie better if I see some big insider buys. | The Last 12 Months Of Insider Transactions At AbbVie The Independent Director, Roxanne Austin, made the biggest insider sale in the last 12 months. While AbbVie Inc. (NYSE:ABBV) shareholders have enjoyed a good week with stock up 3.0%, they need remain vigilant. NYSE:ABBV Insider Trading Volume October 17th 2022 I will like AbbVie better if I see some big insider buys. | So What Do The AbbVie Insider Transactions Indicate? But note: AbbVie may not be the best stock to buy. While AbbVie Inc. (NYSE:ABBV) shareholders have enjoyed a good week with stock up 3.0%, they need remain vigilant. |
23074.0 | 2022-10-17 00:00:00 UTC | 3 Dividend Stocks to Buy Now for a Lifetime of Passive Income | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-now-for-a-lifetime-of-passive-income | nan | nan | It's a bloodbath out there. The S&P 500 fell another 1.6% last week. Now, the benchmark index consisting of the largest publicly traded stocks traded on U.S. markets is down a stunning 24.8% since the end of 2021.
With stock prices tanking left and right, investors looking for stocks to buy are increasingly interested in ones that can deliver reliable streams of passive income. There are a lot of options, but not all can be expected to both make and steadily raise their payouts year after year.
Image source: Getty Images.
These three giants of the healthcare sector have been making and raising their payout for a long time. Here's why their best days could still be in front of them.
1. CVS Health
Most of us are familiar with CVS Health's (NYSE: CVS) enormous chain of retail pharmacies and medical clinics. What you probably don't realize is that the pharmacies you see are just a small part of this healthcare conglomerate's increasingly profitable operation.
CVS Health is a great dividend stock to buy because it usually manages the healthcare benefits folks receive at its physical locations. The company has long owned a pharmacy benefits management business that currently handles prescription benefits for an estimated 110 million plan members. In 2018, CVS Health merged with Aetna, a major health insurer that collects premiums from around 35 million Americans.
Being the end provider of healthcare benefits that the company also gets paid to manage is an incredibly lucrative position to be in. In the second quarter alone, CVS Health recorded $5.4 billion in cash from operations and profits will more than likely rise as the company provides more primary care benefits. In September, CVS Health agreed to acquire Signify Health and its nationwide network of more than 10,000 clinicians for around $8 billion in cash.
At recent prices, CVS Health stock offers a 2.5% yield. This isn't exactly tantalizing but it could rise sharply over the next few years. Over the past 12 months, the company needed just 17.5% of the free cash flow its operations generated to meet its dividend obligation.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that offers a 1.9% yield at the moment. This isn't the sort of dividend yield that gets investors' blood pumping right now but it could get a lot bigger in a few years.
Abbott's nutrition business was in the spotlight earlier this year, when the temporary closure of a single Abbott factory in Michigan led to a nationwide baby formula shortage. In addition to a nutrition business with very little competition, the company markets diagnostic products, cardiovascular devices, and a constant glucose monitor (CGM) for diabetic patients that are driving growth right now.
In May, the FDA cleared Abbott's new CGM device, the Freestyle Libre 3. At the size of two stacked pennies, it's far less obtrusive than similar devices by Abbott or its competitors.
An estimated 37 million Americans, or around 1 in 10, have diabetes. Healthcare plan sponsors are generally willing to pay for CGM devices that need to be replaced every other week. That's because they're a lot less expensive than hospitalizations that become necessary when patients don't keep their blood glucose concentrations in an ideal range. With the CGM likely to lead the market for the foreseeable future, Abbott looks like a smart stock to buy now and hold for the long run.
3. AbbVie
Up until 2013, AbbVie (NYSE: ABBV) was Abbott Laboratories' biopharmaceutical segment. It spun off to shield Abbott from the impending loss of revenue from Humira. This is an injectable anti-inflammation drug used to treat rheumatoid arthritis, psoriasis, and related conditions.
International Humira sales fell to $699 million in the second quarter of 2022 compared to U.S. sales which actually grew to $4.6 billion. The international backsliding is due to biosimilar competition for branded Humira that became available throughout the EU in late 2018.
Right now you can get an above-average 3.9% yield from AbbVie shares because investors are worried about competition hammering U.S. Humira revenue next year. This stock looks like a smart buy because the company's plan to offset Humira losses with sales of more recently launched drugs is working. AbbVie launched Rinvoq for arthritis and Skyrizi for Psoriasis in 2019. Combined sales of the pair reached $4.6 billion last year, and they're expected to contribute a combined $15 billion to AbbVie's top line in 2025.
The next couple of years could be nerve-wracking as biosimilar competition for Humira heats up. With a line-up of more recently launched drugs to offset the losses, though, this stock could deliver heaps of passive income to patient investors.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and CVS Health Corporation. 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 Up until 2013, AbbVie (NYSE: ABBV) was Abbott Laboratories' biopharmaceutical segment. Right now you can get an above-average 3.9% yield from AbbVie shares because investors are worried about competition hammering U.S. Humira revenue next year. AbbVie launched Rinvoq for arthritis and Skyrizi for Psoriasis in 2019. | AbbVie Up until 2013, AbbVie (NYSE: ABBV) was Abbott Laboratories' biopharmaceutical segment. Right now you can get an above-average 3.9% yield from AbbVie shares because investors are worried about competition hammering U.S. Humira revenue next year. AbbVie launched Rinvoq for arthritis and Skyrizi for Psoriasis in 2019. | AbbVie Up until 2013, AbbVie (NYSE: ABBV) was Abbott Laboratories' biopharmaceutical segment. Right now you can get an above-average 3.9% yield from AbbVie shares because investors are worried about competition hammering U.S. Humira revenue next year. AbbVie launched Rinvoq for arthritis and Skyrizi for Psoriasis in 2019. | AbbVie Up until 2013, AbbVie (NYSE: ABBV) was Abbott Laboratories' biopharmaceutical segment. Right now you can get an above-average 3.9% yield from AbbVie shares because investors are worried about competition hammering U.S. Humira revenue next year. AbbVie launched Rinvoq for arthritis and Skyrizi for Psoriasis in 2019. |
23075.0 | 2022-10-16 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-2 | nan | nan | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. People tighten their spending during a downturn, but generally, they don't cut back on their prescriptions.
A high-yielding dividend without sound fundamentals can easily become a dividend trap, but all three of these companies have pipelines with great potential and a strong history of increasing revenue -- and none appear to be overpriced yet.
AbbVie has a plan for its future
AbbVie is a new Dividend King. Counting its time as part of Abbott Laboratories, it has issued a dividend for 50 consecutive years, and since its spinoff from Abbott in 2013, it has increased its dividend by 250%. The company boosted its revenue by 9% this year to $1.41 per share, giving it a yield around 4%.
In the second quarter, the company reported revenue of $14.6 billion, up 4.5% year over year, and earnings per share (EPS) of $3.37, up 11.2% over the same period last year.
So far this year, the company's shares are up a little more than 3% and it trades for slightly more than 19 times earnings. The company has made billions off the immunology drug Humira since it was first approved by the Food and Drug Administration (FDA) 20 years ago. In the second quarter, it brought in $5.4 billion worldwide, up 5.8% year over year. While that drug already faces biosimilar competition overseas and will lose its patent protection in the U.S. next year, AbbVie is already moving to replace it with two other high-selling immunology drugs: Skyrizi and Rinvoq, the combination of which it expects to reach $15 million in sales by 2025.
In the meantime, AbbVie has a huge pipeline that includes therapies in immunology, oncology, neuroscience, virology, women's health, and gastroenterology, along with Allergan's aesthetics drugs. Abbvie will likely produce several blockbuster drugs, even if none of them come close to Humira's sales.
Pfizer putting COVID-19-related revenue to use
Pfizer has seen revenue climb by 1,410% over the past three years. It raised its dividend by 2.5% this year to $0.40 per quarterly share, giving it a yield around 3.82%, with a cash dividend payout ratio of 31.18%. It is the 12th consecutive year the company has increased its dividend, and it has increased it by 150% over that period.
The global company's shares are down more than 9% so far this year but over the past three months, are up more than 5%. In the second quarter, the company reported revenue of $27.7 billion, up 47% year over year. This was led by COVID-19 treatment Paxlovid, with $8.1 billion in sales, and Comirnaty, the company's COVID-19 vaccine that it developed with BioNTech, with $8.8 billion in revenue.
The company had EPS of $1.73, up 77% over the same period last year. Pfizer issued guidance of yearly revenue between $98 billion and $102 billion, up 21% from last year at the midpoint. It also said it expected EPS between $6.30 and $6.45, which would be a 65% increase at the midpoint.
The revenue generated from Paxlovid and Comirnaty may not disappear as the virus will be with us for a while, but they will likely ebb. However, Pfizer has put itself in a strong position by reinvesting its billions toward its pipeline. It has 104 therapies in its pipeline, with 28 in phase 3 trials. This includes a potential blockbuster, the company's mRNA-based flu vaccine, which began its phase 3 clinical trial on Sept. 14. The company is also looking to build revenue through acquisitions, including 36 since 2021. In the meantime, the stock is a steal at only eight times earnings.
Gilead Sciences has been racking up successes
Gilead Sciences, which specializes in oncology and HIV therapies, has been on a winning streak the past few months. In the second quarter, the company reported revenue of $6.3 billion, up 1% over the same period in 2021, due to increased sales of its HIV and oncology therapies, offsetting decreased sales for COVID-19 therapy Veklury and its hepatitis C virus products.
On Sept. 15, the World Health Organization extended its recommendation for Veklury to treat patients with severe COVID-19.
On Sept. 16, the CHMP approved a CAR T-cell therapy, Yescarta, developed by Gilead subsidiary Kite, in Europe as a second-line treatment for diffuse large B-cell lymphoma and high-grade B-cell lymphoma.
On Oct. 3, the FDA approved the retroviral vector manufacturing facility in Oceanside, California, for Kite, making it the only cell therapy company with in-house viral vector manufacturing capabilities.
On Oct. 11, the FDA accepted for priority review the supplemental Biologics License Application (sBLA) for Trodelvy to treat a late-stage of HR+/HER2- metastatic breast cancer. The drug has already been approved to treat other types of breast cancer, as well as metastatic urothelial cancer, a type of cancer that appears in the upper urinary tract.
Even if you take Veklury out of the mix, Gilead would still have generated $5.7 billion in revenue in the second quarter, up 7% year over year. The company's blockbuster HIV drug, Biktarvy, had $2.6 billion in revenue in the quarter, up 28% year over year and 19% sequentially.
The company's shares are down more than 9% so far this year, which has, in turn, raised the yield on the company's dividend to 4.47%. The company raised its quarterly dividend by 2.8% to $0.73 per share this year. Since initiating a dividend in 2015, the company has increased its dividend every 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. | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. In the meantime, AbbVie has a huge pipeline that includes therapies in immunology, oncology, neuroscience, virology, women's health, and gastroenterology, along with Allergan's aesthetics drugs. AbbVie has a plan for its future AbbVie is a new Dividend King. | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. AbbVie has a plan for its future AbbVie is a new Dividend King. While that drug already faces biosimilar competition overseas and will lose its patent protection in the U.S. next year, AbbVie is already moving to replace it with two other high-selling immunology drugs: Skyrizi and Rinvoq, the combination of which it expects to reach $15 million in sales by 2025. | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. AbbVie has a plan for its future AbbVie is a new Dividend King. While that drug already faces biosimilar competition overseas and will lose its patent protection in the U.S. next year, AbbVie is already moving to replace it with two other high-selling immunology drugs: Skyrizi and Rinvoq, the combination of which it expects to reach $15 million in sales by 2025. | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. AbbVie has a plan for its future AbbVie is a new Dividend King. While that drug already faces biosimilar competition overseas and will lose its patent protection in the U.S. next year, AbbVie is already moving to replace it with two other high-selling immunology drugs: Skyrizi and Rinvoq, the combination of which it expects to reach $15 million in sales by 2025. |
23076.0 | 2022-10-14 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-4 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $142.94, moving +0.01% from the previous trading session. The stock outpaced the S&P 500's daily loss of 2.37%. At the same time, the Dow lost 1.35%, and the tech-heavy Nasdaq lost 0.21%.
Prior to today's trading, shares of the drugmaker had gained 0.29% over the past month. This has outpaced the Medical sector's loss of 3.73% and the S&P 500's loss of 6.51% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be October 28, 2022. In that report, analysts expect AbbVie to post earnings of $3.57 per share. This would mark year-over-year growth of 7.21%. Our most recent consensus estimate is calling for quarterly revenue of $14.92 billion, up 4.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.92 per share and revenue of $59.02 billion, which would represent changes of +9.61% and +5.02%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.37% lower. AbbVie is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 10.27. This represents a discount compared to its industry's average Forward P/E of 12.58.
Meanwhile, ABBV's PEG ratio is currently 4.05. 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 1.75 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 135, which puts it in the bottom 47% 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.
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 $142.94, moving +0.01% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.57 per share. | AbbVie (ABBV) closed the most recent trading day at $142.94, moving +0.01% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.57 per share. | AbbVie (ABBV) closed the most recent trading day at $142.94, moving +0.01% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.57 per share. | In that report, analysts expect AbbVie to post earnings of $3.57 per share. AbbVie (ABBV) closed the most recent trading day at $142.94, moving +0.01% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. |
23077.0 | 2022-10-13 00:00:00 UTC | 3 Dividend Stocks That Could Pay You for the Rest of Your Life | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-could-pay-you-for-the-rest-of-your-life | nan | nan | Amid economic and geopolitical uncertainty, financial markets have floundered. The S&P 500 index has tumbled about 25% so far in 2022. Yet some high-quality components of the index have not been hurt in one way that is very important to income investors: dividends.
Despite the tough economic environment, Hormel Foods (NYSE: HRL), AbbVie (NYSE: ABBV), and Aflac (NYSE: AFL) each raised their payouts to shareholders over the last 12 months. This activity extended the dividend growth streaks of these three companies to a range of 39 years to 56 years straight. That makes all of them Dividend Aristocrats with at least 25 years of raises under their belts. Let's take a look at why each company appears poised to continue growing its dividend for many more years.
1. Hormel Foods
With 56 consecutive years of payouts growth to its credit, the consumer staple Hormel Foods is a Dividend Aristocrat twice over. This easily meets the 50-year dividend growth track record that is required to be a Dividend King. But I am confident that there are still decades of dividend growth in the company's future.
The company has a wide variety of well-known brands in its portfolio, including the meat-based protein brand Spam, Planter's peanuts, Skippy peanut butter, and the eponymous Hormel. And its recently launched Happy Little Plants brand could end up being a hit among customers following a plant-based diet. The brand offers plant-based foods including pepperoni, sausages, and meatballs.
This explains why analysts are forecasting that Hormel will generate 8.8% annual earnings growth over the next five years. Considering that the company's payout ratio is projected to come in around 56% in 2022, this gives it flexibility to hand out high-single-digit annual dividend raises for at least the next few years. Given that Hormel's 2.3% dividend yield is moderately above the S&P 500 index's 1.8% yield, this would be an attractive dividend growth rate.
And the stock's trailing-12-month (TTM) price-to-sales (P/S) ratio of two is in line with its 10-year median TTM P/S ratio of two. Simply put, Hormel is a quality business with a stock price that looks to be a decent value for income investors.
Image source: Getty Images.
2. AbbVie
Including its time as the pharmaceutical division of Abbott Laboratories until its spin-off was completed in 2013, AbbVie is a Dividend King with 50 straight years of dividend growth. And there's reason to believe that dividend growth will persist for quite a few more years.
The company's top-selling drug called Humira is on pace to top $20 billion in revenue in 2022. The patent for this drug will expire in 2023 within the U.S., which is where the vast majority of Humira's revenue is generated. But the good news is that the company's next-generation immunology drugs Skyrizi and Rinvoq are on course to record at least $15 billion in annual combined revenue by 2025.
With nearly 60 other compounds in different stages of clinical development for numerous indications, AbbVie's future beyond Humira is bright. And the company's dividend is well covered, with the payout ratio set to be less than 41% in 2022. Investors can snatch up shares of AbbVie and its 4% dividend yield at a price-to-free-cash-flow (P/FCF) ratio of just 11.3, which is a bit below its median P/FCF ratio of 12.8. This is a reasonably enticing valuation for a company with fundamentals that are as strong as ever.
3. Aflac
Aflac has a 39-year dividend growth streak to its name. As it turns out, selling supplemental health insurance products can quite literally pay dividends to shareholders. With more than 50 million customers in the U.S. and Japan, Aflac is the one of the most trusted insurers in the world.
The company generates profits from collecting more in premiums from customers than it pays out in claims, which is due to savvy claims underwriting. And Aflac also receives investment income from its $121.4 billion investments and cash balance. The company's investment income should grow from here with interest rates rising around the world.
Aflac's 2.8% dividend yield seems to be safe. This is supported by the fact that the payout ratio is going to clock in at less than 30% in 2022. Best of all, shares of Aflac can be purchased at a fair valuation. The company's price-to-book (P/B) ratio of 1.4 is in line with its 10-year median P/B ratio of 1.4.
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Kody Kester has positions in AbbVie, Abbott Laboratories, Aflac, and Hormel Foods. The Motley Fool recommends Aflac. 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. | Despite the tough economic environment, Hormel Foods (NYSE: HRL), AbbVie (NYSE: ABBV), and Aflac (NYSE: AFL) each raised their payouts to shareholders over the last 12 months. AbbVie Including its time as the pharmaceutical division of Abbott Laboratories until its spin-off was completed in 2013, AbbVie is a Dividend King with 50 straight years of dividend growth. With nearly 60 other compounds in different stages of clinical development for numerous indications, AbbVie's future beyond Humira is bright. | Despite the tough economic environment, Hormel Foods (NYSE: HRL), AbbVie (NYSE: ABBV), and Aflac (NYSE: AFL) each raised their payouts to shareholders over the last 12 months. AbbVie Including its time as the pharmaceutical division of Abbott Laboratories until its spin-off was completed in 2013, AbbVie is a Dividend King with 50 straight years of dividend growth. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Kody Kester has positions in AbbVie, Abbott Laboratories, Aflac, and Hormel Foods. | AbbVie Including its time as the pharmaceutical division of Abbott Laboratories until its spin-off was completed in 2013, AbbVie is a Dividend King with 50 straight years of dividend growth. Despite the tough economic environment, Hormel Foods (NYSE: HRL), AbbVie (NYSE: ABBV), and Aflac (NYSE: AFL) each raised their payouts to shareholders over the last 12 months. With nearly 60 other compounds in different stages of clinical development for numerous indications, AbbVie's future beyond Humira is bright. | Despite the tough economic environment, Hormel Foods (NYSE: HRL), AbbVie (NYSE: ABBV), and Aflac (NYSE: AFL) each raised their payouts to shareholders over the last 12 months. AbbVie Including its time as the pharmaceutical division of Abbott Laboratories until its spin-off was completed in 2013, AbbVie is a Dividend King with 50 straight years of dividend growth. With nearly 60 other compounds in different stages of clinical development for numerous indications, AbbVie's future beyond Humira is bright. |
23078.0 | 2022-10-11 00:00:00 UTC | Merck Stock Is Likely A Better Pick Over Its Peer | ABBV | https://www.nasdaq.com/articles/merck-stock-is-likely-a-better-pick-over-its-peer | nan | nan | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 3.9x trailing revenues vs. 10.8x for Eli Lilly. Investors have assigned a higher P/S multiple for LLY stock owing to its pipeline potential. If we look at stock returns, Eli Lilly’s 18% growth this year is slightly better than the 14% return for Merck stock, both outperforming the broader S&P 500 index, down 24%. There is more to the comparison, and in the sections below, we discuss why we believe MRK 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 multiple, in an interactive dashboard analysis of Merck vs. Eli Lilly: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Eli Lilly’s Revenue Growth Has Been Better In Recent Years
Both companies posted sales growth over the last twelve months. Still, Merck’s revenue growth of 30.2% is much higher than 8.8% for Eli Lilly.
However, if we look at a longer time frame, Merck’s sales grew at an average growth rate of 5.3% to $48.7 billion in 2021, compared to $42.3 billion in 2018, while Eli Lilly’s sales rose at an average annual rate of 9.7% to $28.3 billion in 2021, compared to $21.5 billion in 2018.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil.
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.
Our Merck Revenue and Eli Lilly Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Eli Lilly’s revenue is expected to grow marginally faster than Merck’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 2.1% for Eli Lilly, compared to a 1.6% CAGR for Merck, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies negatively impacted by Covid and those not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Merck Is More Profitable
Eli Lilly’s operating margin of 24.5% over the last twelve-month period is slightly lower than 33.0% for Merck.
This compares with 21.8% and 18.7% figures seen in 2019, before the pandemic, respectively.
Eli Lilly’s free cash flow margin of 24.4% is also lower than 33.2% for Merck.
Our Merck Operating Income and Eli Lilly Operating Income dashboards have more details.
Looking at financial risk, Merck’s 14.3% debt as a percentage of equity is higher than 5.7% for Eli Lilly, while its 9.7% cash as a percentage of assets is higher than 5.8% for the latter, implying that Eli Lilly has a better debt position, but Merck has more cash cushion.
3. The Net of It All
We see that Eli Lilly has demonstrated better revenue growth over recent years and has a better debt position. On the other hand, Merck is more profitable, has more cash cushion, and is available at a comparatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we still believe Merck is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Merck and Eli Lilly over the next three years and points to an expected return of 15% for Merck over this period vs. an -8% expected return for Eli Lilly stock, implying that investors are better off buying MRK over LLY, based on Trefis Machine Learning analysis – Merck vs. Eli Lilly– which also provides more details on how we arrive at these numbers.
While MRK stock may outperform LLY, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite inflation rising and the Fed raising interest rates, Merck stock has risen 14% this year. But can it drop from here? See how low Merck stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return 2% 14% 49%
LLY Return 1% 18% 344%
S&P 500 Return 2% -24% 63%
Trefis Multi-Strategy Portfolio 3% -24% 200%
[1] Month-to-date and year-to-date as of 10/10/2022
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors, such as historical revenue growth, returns, and valuation multiple, in an interactive dashboard analysis of Merck vs. Eli Lilly: Which Stock Is A Better Bet? 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. | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 3.9x trailing revenues vs. 10.8x for Eli Lilly. However, if we look at a longer time frame, Merck’s sales grew at an average growth rate of 5.3% to $48.7 billion in 2021, compared to $42.3 billion in 2018, while Eli Lilly’s sales rose 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 Merck and Eli Lilly over the next three years and points to an expected return of 15% for Merck over this period vs. an -8% expected return for Eli Lilly stock, implying that investors are better off buying MRK over LLY, based on Trefis Machine Learning analysis – Merck vs. Eli Lilly– which also provides more details on how we arrive at these numbers. | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 3.9x trailing revenues vs. 10.8x for Eli Lilly. If we look at stock returns, Eli Lilly’s 18% growth this year is slightly better than the 14% return for Merck stock, both outperforming the broader S&P 500 index, down 24%. The table below summarizes our revenue and return expectations for Merck and Eli Lilly over the next three years and points to an expected return of 15% for Merck over this period vs. an -8% expected return for Eli Lilly stock, implying that investors are better off buying MRK over LLY, based on Trefis Machine Learning analysis – Merck vs. Eli Lilly– which also provides more details on how we arrive at these numbers. | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 3.9x trailing revenues vs. 10.8x for Eli Lilly. There is more to the comparison, and in the sections below, we discuss why we believe MRK stock will offer better returns than LLY stock in the next three years. The table below summarizes our revenue and return expectations for Merck and Eli Lilly over the next three years and points to an expected return of 15% for Merck over this period vs. an -8% expected return for Eli Lilly stock, implying that investors are better off buying MRK over LLY, based on Trefis Machine Learning analysis – Merck vs. Eli Lilly– which also provides more details on how we arrive at these numbers. |
23079.0 | 2022-10-11 00:00:00 UTC | Ex-Dividend Reminder: AbbVie, Abbott Laboratories and American Express | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-abbvie-abbott-laboratories-and-american-express | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.41 on 11/15/22, Abbott Laboratories will pay its quarterly dividend of $0.47 on 11/15/22, and American Express Co. will pay its quarterly dividend of $0.52 on 11/10/22. As a percentage of ABBV's recent stock price of $138.94, this dividend works out to approximately 1.01%, so look for shares of AbbVie Inc to trade 1.01% lower — all else being equal — when ABBV shares open for trading on 10/13/22. Similarly, investors should look for ABT to open 0.47% lower in price and for AXP to open 0.38% lower, all else being equal.
Below are dividend history charts for ABBV, ABT, and AXP, showing historical dividends prior to the most recent ones declared.
AbbVie Inc (Symbol: ABBV):
Abbott Laboratories (Symbol: ABT):
American Express Co. (Symbol: AXP):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.06% for AbbVie Inc, 1.87% for Abbott Laboratories, and 1.52% for American Express Co..
In Tuesday trading, AbbVie Inc shares are currently up about 0.5%, Abbott Laboratories shares are down about 0.5%, and American Express Co. shares are down about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of ABBV's recent stock price of $138.94, this dividend works out to approximately 1.01%, so look for shares of AbbVie Inc to trade 1.01% lower — all else being equal — when ABBV shares open for trading on 10/13/22. If they do continue, the current estimated yields on annualized basis would be 4.06% for AbbVie Inc, 1.87% for Abbott Laboratories, and 1.52% for American Express Co.. Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.41 on 11/15/22, Abbott Laboratories will pay its quarterly dividend of $0.47 on 11/15/22, and American Express Co. will pay its quarterly dividend of $0.52 on 11/10/22. AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): American Express Co. (Symbol: AXP): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.41 on 11/15/22, Abbott Laboratories will pay its quarterly dividend of $0.47 on 11/15/22, and American Express Co. will pay its quarterly dividend of $0.52 on 11/10/22. AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): American Express Co. (Symbol: AXP): In general, dividends are not always predictable, following the ups and downs of company profits over time. | As a percentage of ABBV's recent stock price of $138.94, this dividend works out to approximately 1.01%, so look for shares of AbbVie Inc to trade 1.01% lower — all else being equal — when ABBV shares open for trading on 10/13/22. If they do continue, the current estimated yields on annualized basis would be 4.06% for AbbVie Inc, 1.87% for Abbott Laboratories, and 1.52% for American Express Co.. Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. |
23080.0 | 2022-10-11 00:00:00 UTC | 2 Top Stocks to Buy in October and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-top-stocks-to-buy-in-october-and-hold-forever | nan | nan | If you're looking for the best stocks to buy this month that you can hold in your portfolio -- and add to again and again -- you've come to the right place. While the stock market may be facing a turbulent environment at the moment, it's always a good time to invest in wonderful companies with great businesses that can generate prolonged portfolio returns.
With the current state of the market, you're not alone if you're searching for investments that can provide a solid path to growth and whose products or services aren't prone to cyclicality or changes in consumer spending.
Today, we're going to take a look at two such stocks which fit that bill. Let's dive in.
1. AbbVie: A no-brainer for income investors
If you're not familiar with pharmaceutical giant AbbVie (NYSE: ABBV), you're likely familiar with one of its star products, Humira. The world's top-selling drug raked in $20.7 billion in revenue for the company in 2021 alone. Now, with patent exclusivity on the drug set to expire in the U.S. in 2023, you'll be glad to learn that Abbvie also has other highly lucrative products on which to rely for future revenue and profits.
AbbVie's products focus on areas ranging from neuroscience to immunology to oncology to virology. In the second quarter alone, six of its top-selling products -- Skyrizi, Rinvoq, Imbruvica, Venclexta, Botox Cosmetic, and Botox Therapeutic -- brought in respective revenues of $1.3 billion, $592 million, $1.1 billion, $505 million, $695 million, and $678 million.
In total, the company's second-quarter revenue rose 5% year over year, while diluted earnings per share (EPS) jumped 21%. That follows revenue and diluted EPS growth of 23% and 137%, respectively, in 2021.
Taking a step back and looking at the healthcare stock's financial performance over the much longer period of five years, the company has boosted its annual revenue, net income, and cash from operations by 100%, 117%, and 129%, respectively.
Beyond the diverse streams of growth that AbbVie can tap into from its current portfolio, it also boasts an impressive pipeline of candidates that target diseases from rheumatoid arthritis to Alzheimer's to small cell lung cancer. AbbVie's wide-ranging portfolio and robust financials tick multiple boxes for healthcare investors, but that's not all the stock has to offer. There's also its dividend, which currently yields 4.1%.
One final note: the Dividend King has delivered a total return of 93% for investors over the past five years alone. That leaves the S&P 500's total return of 56% in the same period well and truly in the dust.
2. DexCom: A market leader with a record of growth
According to the Centers for Disease Control and Prevention, nearly one in 10 Americans has diabetes. That's more than 37 million people in the U.S. alone. For many people with diabetes, a continuous glucose monitoring (CGM) device is a daily part of life, and in some cases, can truly make the difference between life and death.
DexCom (NASDAQ: DXCM) is one of the top companies in the world that develops and makes CGM devices. Its leadership in the CGM market is no small feat -- this is a space that's on track to hit a global valuation of $13.2 billion by 2028, according to Vantage Market Research.
DexCom has had incredible success with its flagship product, the G6 CGM system. The rollout of the next version, the G7 -- which is billed as 60% smaller than the G6 and features a faster sensor -- is expected in the U.S. soon and is already underway in multiple international markets including the U.K., Ireland, Germany, Austria, and Hong Kong.
In the most recent quarter, DexCom's revenue increased 17% from the year-ago period, while U.S. revenue jumped 11% and international revenue growth surged 39%. The company is also profitable, reporting $50.9 million in net income for the three-month period. The company had $2.8 billion in cash, cash equivalents, and marketable securities on its balance sheet at the end of the quarter.
Looking back over the past five years, DexCom has grown its annual revenue and net income by 66% and 53%, respectively. It's also delivered a total return of 255% during that period, more than four times that of the S&P 500 during the same window.
DexCom's continued leadership in the CGM device market, despite growing competition, provides a compelling path forward to growth. Long-term investors can capitalize on this and reap the rewards of its success.
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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. | Beyond the diverse streams of growth that AbbVie can tap into from its current portfolio, it also boasts an impressive pipeline of candidates that target diseases from rheumatoid arthritis to Alzheimer's to small cell lung cancer. AbbVie: A no-brainer for income investors If you're not familiar with pharmaceutical giant AbbVie (NYSE: ABBV), you're likely familiar with one of its star products, Humira. Now, with patent exclusivity on the drug set to expire in the U.S. in 2023, you'll be glad to learn that Abbvie also has other highly lucrative products on which to rely for future revenue and profits. | AbbVie: A no-brainer for income investors If you're not familiar with pharmaceutical giant AbbVie (NYSE: ABBV), you're likely familiar with one of its star products, Humira. Now, with patent exclusivity on the drug set to expire in the U.S. in 2023, you'll be glad to learn that Abbvie also has other highly lucrative products on which to rely for future revenue and profits. AbbVie's products focus on areas ranging from neuroscience to immunology to oncology to virology. | See the 10 stocks *Stock Advisor returns as of September 30, 2022 Rachel Warren has positions in AbbVie and DexCom. AbbVie: A no-brainer for income investors If you're not familiar with pharmaceutical giant AbbVie (NYSE: ABBV), you're likely familiar with one of its star products, Humira. Now, with patent exclusivity on the drug set to expire in the U.S. in 2023, you'll be glad to learn that Abbvie also has other highly lucrative products on which to rely for future revenue and profits. | * 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: A no-brainer for income investors If you're not familiar with pharmaceutical giant AbbVie (NYSE: ABBV), you're likely familiar with one of its star products, Humira. Now, with patent exclusivity on the drug set to expire in the U.S. in 2023, you'll be glad to learn that Abbvie also has other highly lucrative products on which to rely for future revenue and profits. |
23081.0 | 2022-10-11 00:00:00 UTC | Better Bear-Market Buy: Abbott Laboratories vs. AbbVie Stock | ABBV | https://www.nasdaq.com/articles/better-bear-market-buy%3A-abbott-laboratories-vs.-abbvie-stock | nan | nan | It's inevitable that offspring are compared with their parents. This happens with famous people and not-so-famous people alike. And it also happens with companies. For example, Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV) in 2013. The two companies have been compared ever since.
There are pretty good arguments for both stocks. But which is the better one to buy in the current bear market? Here are the cases for Abbott and AbbVie.
Abbott: A solid mix of businesses
Adria Cimino (Abbott): Abbott hasn't defied the bear market. The stock actually has lost 27% so far this year. But it's still a stock you'll want to pick up during this kind of market. That's because Abbott has what it takes to deliver share-price gains over the long term.
First, Abbott has a solid track record of revenue and profit growth. The company also is a Dividend King. That means it's raised its dividend for at least the past 50 years. So, it's clear dividends are important to Abbott. And during tough times like during a bear market, investors may especially appreciate this passive income.
Abbott also is a winning long-term stock for any portfolio due to its mix of businesses. The company doesn't rely on just one specialty. Instead, Abbott has four units: medical devices, diagnostics, nutrition, and established pharmaceuticals.
These days, Abbott's strength in coronavirus testing has pushed diagnostics revenue through the stratosphere. In the most recent quarter, Abbott's coronavirus-testing revenue reached $2.3 billion. That made diagnostics its biggest business.
If coronavirus-testing demand drops off though, it shouldn't make a major dent in Abbott's earnings. Here's why: The medical-devices business traditionally has been the biggest revenue driver. And medical-device revenue often suffers during times of strength for the coronavirus-testing business. That's because when coronavirus hospitalizations rise, hospitals postpone some nonessential surgeries. Conversely, during times of lower-testing revenue, the medical-devices business may thrive.
Now, let's take a look at Abbott's valuation. Abbott trades for about 20 times forward-earnings estimates. That's down from more than 27 earlier this year. This looks like a reasonable price. Why? Because Abbott has proven itself over time, ensures dividend growth, and continues to offer growth through new product launches or updates to current favorite products.
AbbVie: Checking off multiple boxes
Keith Speights (AbbVie): I think that there are several reasons why AbbVie is a great stock to buy in the current bear market. Let's start with something it shares in common with Abbott: They're both Dividend Kings. Income investors should especially like AbbVie's relatively high dividend yield of over 4%.
But AbbVie's differences with its parent company really make it stand out. The pharma stock is actually up a little year to date and is handily beating the S&P 500.
AbbVie's valuation is also quite attractive. Its shares currently trade at less than 12 times expected earnings.
The most important plus for AbbVie, though, is its solid growth prospects. Sure, the company faces the loss of U.S. exclusivity for its top-selling drug Humira next year. However, AbbVie should quickly rebound after an initial sales decline thanks to other growth drivers in its lineup. In particular, Humira's successors, Rinvoq and Skyrizi, should eventually generate combined annual sales that are even greater than Humira did at its peak.
Where will AbbVie be in three years and beyond? Market researcher EvaluatePharma projects that AbbVie will become the biggest pharmaceutical company based on prescription-drug sales by 2028. This bright outlook combined with its other advantages make AbbVie a solid bear-market pick right now.
Better bear-market buy?
Ultimately, the decision as to which of these stocks is the better bear-market buy probably comes down to investors' individual preferences. Abbott provides greater diversification across the healthcare sector than AbbVie does. AbbVie provides a higher dividend yield and lower valuation.
Both companies face some risks. However, the two stocks could also deliver market-beating total returns over the long term. That's something both Abbott and AbbVie have done in the past. You might even say that it's a family tradition.
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Adria Cimino has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, AbbVie should quickly rebound after an initial sales decline thanks to other growth drivers in its lineup. Market researcher EvaluatePharma projects that AbbVie will become the biggest pharmaceutical company based on prescription-drug sales by 2028. This bright outlook combined with its other advantages make AbbVie a solid bear-market pick right now. | This bright outlook combined with its other advantages make AbbVie a solid bear-market pick right now. For example, Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV) in 2013. Here are the cases for Abbott and AbbVie. | AbbVie: Checking off multiple boxes Keith Speights (AbbVie): I think that there are several reasons why AbbVie is a great stock to buy in the current bear market. For example, Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV) in 2013. Here are the cases for Abbott and AbbVie. | For example, Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV) in 2013. Here are the cases for Abbott and AbbVie. AbbVie: Checking off multiple boxes Keith Speights (AbbVie): I think that there are several reasons why AbbVie is a great stock to buy in the current bear market. |
23082.0 | 2022-10-10 00:00:00 UTC | How to Maximize Your Retirement Portfolio with These Top-Ranked Dividend Stocks | ABBV | https://www.nasdaq.com/articles/how-to-maximize-your-retirement-portfolio-with-these-top-ranked-dividend-stocks-17 | nan | nan | Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.
And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans.
The tried-and-true retirement investing approach of yesterday doesn't work today.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.
The impact of this rate decline is sizable: over 20 years, the difference in yield for a $1 million investment in 10-year Treasuries is more than $1 million.
In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
Going beyond those familiar names, you can find excellent dividend-paying stocks by following a few guidelines. Look for companies that pay a dividend yield of around 3%, with positive annual dividend growth. The growth rate is key to help combat the effects of inflation.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
AbbVie (ABBV) is currently shelling out a dividend of $1.41 per share, with a dividend yield of 4.06%. This compares to the Large Cap Pharmaceuticals industry's yield of 2.84% and the S&P 500's yield of 1.81%. The company's annualized dividend growth in the past year was 8.46%. Check AbbVie (ABBV) dividend history here>>>
American Tower (AMT) is paying out a dividend of $1.47 per share at the moment, with a dividend yield of 3.02% compared to the REIT and Equity Trust - Other industry's yield of 4.64% and the S&P 500's yield. The annualized dividend growth of the company was 9.16% over the past year. Check American Tower (AMT) dividend history here>>>
Currently paying a dividend of $1.18 per share, Alexandria Real Estate Equities (ARE) has a dividend yield of 3.5%. This is compared to the REIT and Equity Trust - Other industry's yield of 4.64% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.36%. Check Alexandria Real Estate Equities (ARE) dividend history here>>>
But aren't stocks generally more risky than bonds?
The fact is that stocks, as an asset class, carry more risk than bonds. To counterbalance this, invest in superior quality dividend stocks that not only can grow over time but more significantly, can also decrease your overall portfolio volatility with respect to the broader stock market.
A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects of inflation on your potential retirement income.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.
Bottom Line
Seeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying 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. | AbbVie (ABBV) is currently shelling out a dividend of $1.41 per share, with a dividend yield of 4.06%. Check AbbVie (ABBV) dividend history here>>> American Tower (AMT) is paying out a dividend of $1.47 per share at the moment, with a dividend yield of 3.02% compared to the REIT and Equity Trust - Other industry's yield of 4.64% and the S&P 500's yield. AbbVie Inc. (ABBV): Free Stock Analysis Report | Check AbbVie (ABBV) dividend history here>>> American Tower (AMT) is paying out a dividend of $1.47 per share at the moment, with a dividend yield of 3.02% compared to the REIT and Equity Trust - Other industry's yield of 4.64% and the S&P 500's yield. AbbVie (ABBV) is currently shelling out a dividend of $1.41 per share, with a dividend yield of 4.06%. AbbVie Inc. (ABBV): Free Stock Analysis Report | Check AbbVie (ABBV) dividend history here>>> American Tower (AMT) is paying out a dividend of $1.47 per share at the moment, with a dividend yield of 3.02% compared to the REIT and Equity Trust - Other industry's yield of 4.64% and the S&P 500's yield. AbbVie (ABBV) is currently shelling out a dividend of $1.41 per share, with a dividend yield of 4.06%. AbbVie Inc. (ABBV): Free Stock Analysis Report | AbbVie (ABBV) is currently shelling out a dividend of $1.41 per share, with a dividend yield of 4.06%. Check AbbVie (ABBV) dividend history here>>> American Tower (AMT) is paying out a dividend of $1.47 per share at the moment, with a dividend yield of 3.02% compared to the REIT and Equity Trust - Other industry's yield of 4.64% and the S&P 500's yield. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23083.0 | 2022-10-10 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-49 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Procter & Gamble Company (Symbol: PG) $124.27 $159.36 28.24%
California Water Service Group (Symbol: CWT) $53.24 $64.50 21.15%
Walmart Inc (Symbol: WMT) $128.56 $152.46 18.59%
RLI Corp (Symbol: RLI) $101.94 $120.00 17.72%
AbbVie Inc (Symbol: ABBV) $138.76 $163.25 17.65%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Procter & Gamble Company (Symbol: PG) 2.94% 28.24% 31.18%
California Water Service Group (Symbol: CWT) 1.88% 21.15% 23.03%
Walmart Inc (Symbol: WMT) 1.74% 18.59% 20.33%
RLI Corp (Symbol: RLI) 1.02% 17.72% 18.74%
AbbVie Inc (Symbol: ABBV) 4.06% 17.65% 21.71%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34%
California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53%
Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83%
RLI Corp (Symbol: RLI) $1.98 $3.02 52.53%
AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on RLI — FREE Get the latest Zacks research report on ABBV — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Procter & Gamble Company (Symbol: PG) $124.27 $159.36 28.24% California Water Service Group (Symbol: CWT) $53.24 $64.50 21.15% Walmart Inc (Symbol: WMT) $128.56 $152.46 18.59% RLI Corp (Symbol: RLI) $101.94 $120.00 17.72% AbbVie Inc (Symbol: ABBV) $138.76 $163.25 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.94% 28.24% 31.18% California Water Service Group (Symbol: CWT) 1.88% 21.15% 23.03% Walmart Inc (Symbol: WMT) 1.74% 18.59% 20.33% RLI Corp (Symbol: RLI) 1.02% 17.72% 18.74% AbbVie Inc (Symbol: ABBV) 4.06% 17.65% 21.71% Another consideration with dividend growth stocks is just how much the dividend is growing. | Procter & Gamble Company (Symbol: PG) $124.27 $159.36 28.24% California Water Service Group (Symbol: CWT) $53.24 $64.50 21.15% Walmart Inc (Symbol: WMT) $128.56 $152.46 18.59% RLI Corp (Symbol: RLI) $101.94 $120.00 17.72% AbbVie Inc (Symbol: ABBV) $138.76 $163.25 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.94% 28.24% 31.18% California Water Service Group (Symbol: CWT) 1.88% 21.15% 23.03% Walmart Inc (Symbol: WMT) 1.74% 18.59% 20.33% RLI Corp (Symbol: RLI) 1.02% 17.72% 18.74% AbbVie Inc (Symbol: ABBV) 4.06% 17.65% 21.71% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% RLI Corp (Symbol: RLI) $1.98 $3.02 52.53% AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% These five stocks are part of our full Dividend Aristocrats List. | Procter & Gamble Company (Symbol: PG) $124.27 $159.36 28.24% California Water Service Group (Symbol: CWT) $53.24 $64.50 21.15% Walmart Inc (Symbol: WMT) $128.56 $152.46 18.59% RLI Corp (Symbol: RLI) $101.94 $120.00 17.72% AbbVie Inc (Symbol: ABBV) $138.76 $163.25 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.94% 28.24% 31.18% California Water Service Group (Symbol: CWT) 1.88% 21.15% 23.03% Walmart Inc (Symbol: WMT) 1.74% 18.59% 20.33% RLI Corp (Symbol: RLI) 1.02% 17.72% 18.74% AbbVie Inc (Symbol: ABBV) 4.06% 17.65% 21.71% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% RLI Corp (Symbol: RLI) $1.98 $3.02 52.53% AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% These five stocks are part of our full Dividend Aristocrats List. | Procter & Gamble Company (Symbol: PG) $124.27 $159.36 28.24% California Water Service Group (Symbol: CWT) $53.24 $64.50 21.15% Walmart Inc (Symbol: WMT) $128.56 $152.46 18.59% RLI Corp (Symbol: RLI) $101.94 $120.00 17.72% AbbVie Inc (Symbol: ABBV) $138.76 $163.25 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Procter & Gamble Company (Symbol: PG) 2.94% 28.24% 31.18% California Water Service Group (Symbol: CWT) 1.88% 21.15% 23.03% Walmart Inc (Symbol: WMT) 1.74% 18.59% 20.33% RLI Corp (Symbol: RLI) 1.02% 17.72% 18.74% AbbVie Inc (Symbol: ABBV) 4.06% 17.65% 21.71% Another consideration with dividend growth stocks is just how much the dividend is growing. Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Walmart Inc (Symbol: WMT) $2.19 $2.23 1.83% RLI Corp (Symbol: RLI) $1.98 $3.02 52.53% AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% These five stocks are part of our full Dividend Aristocrats List. |
23084.0 | 2022-10-09 00:00:00 UTC | 2 Top Healthcare Stocks Defying the Bear Market | ABBV | https://www.nasdaq.com/articles/2-top-healthcare-stocks-defying-the-bear-market-0 | nan | nan | Everyone's looking for safe harbors to park their cash amid a downwardly mobile market and globally fulminating economic turmoil. To merely beat the bear market, a stock needs to do better than lose nearly 20% of its value so far in 2022. The good news is that there are plenty of portfolio-ready stocks that continue to outperform.
But to really defy the bear market, a stock should grow rather than merely fall slightly less than everything else. With that standard in mind, let's examine a couple of top healthcare stocks that are powering onward despite stormy waters.
1. Veru
With shares of Veru (NASDAQ: VERU) stock galloping upward by almost 102% so far this year, the market clearly has a rosy view of this biotech's future. The company has two divisions, one for its reproductive health products and one for its cancer and COVID-19 therapies. But what's really driving the stock are two products: Entadfi, which treats benign prostatic hyperplasia (BPH) and which was just launched in August; and sabizabulin, which is being evaluated to treat severe COVID-19 as well as certain types of breast and prostate cancers.
There isn't any sales data on how Entadfi is performing yet, but as soon as the fourth quarter, investors should get an update on how much the drug is contributing to Veru's top line, which totaled over $61.2 million in 2021. With sabizabulin, the prospect of revenue is a bit further off, but the Food and Drug Administration's (FDA) nonbinding advisory committee will vote on November 9 regarding the company's application for an Emergency Use Authorization (EUA). If the drug gets approved, it could launch and start bringing in money in early 2023, and management anticipates treating somewhere in the ballpark of 630,000 patients per year.
And that could make Veru into a very valuable company very quickly, so it's no surprise that its stock is soaring even if the market is declining. Over the next few years, its late-stage trials investigating sabizabulin for prostate and breast cancers could get approved and commercialized, which would drive even more growth. Aside from that, expect its shares to keep climbing if Entadfi revenue looks strong out of the gate and for it to climb even more if sabizabulin gets a positive reception from regulators in a couple of months.
2. AbbVie
Unlike Veru, AbbVie (NYSE: ABBV) is a major pharmaceutical company rather than a scrappy biotech. So it shouldn't be too surprising that its shares are up a more modest 9% this year as it's much harder to convince the market that a business is going to grow a huge amount when its trailing 12-month revenue is more than $57.3 billion. Nonetheless, with its quarterly free cash flow (FCF) rising by 102% in the last five years, it's clear that AbbVie's investment potential is far more than a short-term bear-market play.
AbbVie's key to success is its portfolio of immunology medicines, which brought in more than $7.2 billion in Q2 alone. The newest members of that portfolio, Skyrizi and Rinvoq, treat conditions like Crohn's disease, ankylosing spondylitis, and ulcerative colitis, among others. Of course, these two medicines were originally only approved to treat individual conditions, so the fact that they're both approved in the U.S. and E.U. for multiple illnesses is a testament to the company's ability to squeeze more earnings from its major programs by continuing research and development (R&D) activities even after launch.
What's more, in 2023 AbbVie's pipeline could yield it with as many as eight new regulatory approvals for expanded indications of its already marketed drugs. That's sure to drive further revenue growth, and there are so many late-stage clinical trials ongoing in the company's pipeline that a similar pace is more probable than not for 2024 and beyond. And all of that should help it keep beating the bear market.
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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 Unlike Veru, AbbVie (NYSE: ABBV) is a major pharmaceutical company rather than a scrappy biotech. Nonetheless, with its quarterly free cash flow (FCF) rising by 102% in the last five years, it's clear that AbbVie's investment potential is far more than a short-term bear-market play. AbbVie's key to success is its portfolio of immunology medicines, which brought in more than $7.2 billion in Q2 alone. | AbbVie Unlike Veru, AbbVie (NYSE: ABBV) is a major pharmaceutical company rather than a scrappy biotech. Nonetheless, with its quarterly free cash flow (FCF) rising by 102% in the last five years, it's clear that AbbVie's investment potential is far more than a short-term bear-market play. AbbVie's key to success is its portfolio of immunology medicines, which brought in more than $7.2 billion in Q2 alone. | AbbVie Unlike Veru, AbbVie (NYSE: ABBV) is a major pharmaceutical company rather than a scrappy biotech. Nonetheless, with its quarterly free cash flow (FCF) rising by 102% in the last five years, it's clear that AbbVie's investment potential is far more than a short-term bear-market play. AbbVie's key to success is its portfolio of immunology medicines, which brought in more than $7.2 billion in Q2 alone. | AbbVie Unlike Veru, AbbVie (NYSE: ABBV) is a major pharmaceutical company rather than a scrappy biotech. Nonetheless, with its quarterly free cash flow (FCF) rising by 102% in the last five years, it's clear that AbbVie's investment potential is far more than a short-term bear-market play. AbbVie's key to success is its portfolio of immunology medicines, which brought in more than $7.2 billion in Q2 alone. |
23085.0 | 2022-10-08 00:00:00 UTC | 3 Great Dividend Stocks to Buy in October | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-to-buy-in-october | nan | nan | Dividends are important -- and not just for income investors. More than half of the S&P 500's total return over the past 30 years came from reinvesting dividends.
We asked three Motley Fool contributors to identify great dividend stocks to buy in October. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Merck & Co. (NYSE: MRK).
A growth king
Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. AbbVie doesn't disappoint on this front with a juicy dividend yield of 4.2%. However, this yield is only part of the story.
AbbVie also has an impeccable track record of dividend hikes. The big drugmaker has increased its dividend for 50 consecutive years, making it a Dividend King. Since spinning off from Abbott in 2013, AbbVie has boosted its dividend payout by more than 250%.
The stock has also been a big winner for investors. AbbVie's shares have soared nearly 90% over the past three years and are handily beating the overall market so far in 2022.
One fly in the ointment for AbbVie is that its top-selling drug, Humira, faces biosimilar competition in the United States beginning in 2023. The company's sales will almost certainly decline as a result.
However, it's important to look ahead to where AbbVie will be in three years, 10 years, and beyond. The company already has two worthy successors to Humira on the market. AbbVie also has several other growth drivers in its lineup, plus a promising pipeline. I think this stock will keep up its winning ways for a long time to come.
As safe as dividends get
Prosper Junior Bakiny (Johnson & Johnson): For dividend-seeking investors, healthcare giant Johnson & Johnson checks all the right boxes, starting with its storied dividend history. The company has raised its payouts for 60 consecutive years. That puts J&J in the same exclusive club of Dividend Kings to which AbbVie belongs.
Next, there is the company's sturdy business. Johnson & Johnson's portfolio of drugs is both vast and diversified. It markets products within neuroscience, immunology, oncology, infectious diseases, and more. The company has a history of developing novel products, a necessary condition for pharmaceutical companies to remain successful over long periods.
Johnson & Johnson also owns a medical device unit that develops cutting-edge technology to address various heart-related problems, vision issues, and much more. The company is currently spinning off its consumer health segment, home to various over-the-counter healthcare brands. It should complete this transaction by year end.
J&J should then become a leaner, more focused company that is less burdened by the thousands of lawsuits related to some of its consumer health products. Healthcare never runs out of style. Johnson & Johnson's long-standing leadership in the field and the steady earnings it generates will allow it to remain successful.
Then there is the company's solid balance sheet. Johnson & Johnson boasts an AAA credit rating from Standard & Poor's. That's as high as it gets and a testament to the company's ability to handle its debt.
When corporations are in financial trouble, they sometimes choose to cut their dividend to save funds. That's unlikely to happen to Johnson & Johnson. In the past three years (i.e., amid the devastation caused by the pandemic), J&J has increased its payouts by 18.95%. With an above-average yield of nearly 2.8% and a reasonable cash payout ratio of 56.8%, there should be many more dividend increases in the company's future.
All this means I don't think that income-seeking investors can go wrong with Johnson & Johnson.
A high yield with room to go even higher
David Jagielski (Merck & Co.): I believe that Merck definitely ranks as a top dividend stock that investors should consider buying this month. The diversified pharmaceutical company makes medicines for a variety of therapeutic areas, including diabetes, immunology, neuroscience, and oncology.
Cancer drug Keytruda is Merck's top moneymaker, generating more than $10 billion in revenue through the first half of this year and one-third of the company's total sales during that stretch. Merck has also reported a solid profit of $8.3 billion year to date, with an impressive net margin of 27%.
The company's strong financials allow it to pay a dividend that yields 3.1% today. That's well above the S&P 500 average of 1.8%. On a $10,000 investment, that can be an extra $130 per year in dividends by going with Merck compared to the S&P 500.
Merck has paid dividends for decades. It has also been increasing those dividends in recent years, with a compound annual growth rate of 8% over the last five years. If the company were to continue making dividend increases at that pace, it would take only nine years for Merck's dividend to double.
There's plenty of room for Merck to continue increasing its payouts. Its dividend payout ratio currently stands at only 42%. The company normally announces its dividend increases in November, so investors may not have to wait too long before another hike.
Merck's high yield, strong margins, and blockbuster drug in Keytruda should make it an attractive option for investors. I think that it's an investment that can set you up for life.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Merck & Co. 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 Merck & Co. (NYSE: MRK). A growth king Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. AbbVie doesn't disappoint on this front with a juicy dividend yield of 4.2%. | A growth king Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Merck & Co. (NYSE: MRK). AbbVie doesn't disappoint on this front with a juicy dividend yield of 4.2%. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Merck & Co. (NYSE: MRK). A growth king Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. AbbVie doesn't disappoint on this front with a juicy dividend yield of 4.2%. | A growth king Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Merck & Co. (NYSE: MRK). AbbVie doesn't disappoint on this front with a juicy dividend yield of 4.2%. |
23086.0 | 2022-10-07 00:00:00 UTC | XLV, ABBV, ELV, MDT: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-abbv-elv-mdt%3A-etf-outflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $757.9 million dollar outflow -- that's a 2.0% decrease week over week (from 301,820,000 to 295,770,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.4%, Elevance Health Inc (Symbol: ELV) is off about 1.2%, and Medtronic PLC (Symbol: MDT) is lower by about 1.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $123.78. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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 1.4%, Elevance Health Inc (Symbol: ELV) is off about 1.2%, and Medtronic PLC (Symbol: MDT) is lower by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $757.9 million dollar outflow -- that's a 2.0% decrease week over week (from 301,820,000 to 295,770,000). 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 1.4%, Elevance Health Inc (Symbol: ELV) is off about 1.2%, and Medtronic PLC (Symbol: MDT) is lower by about 1.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $123.78. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.4%, Elevance Health Inc (Symbol: ELV) is off about 1.2%, and Medtronic PLC (Symbol: MDT) is lower by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $757.9 million dollar outflow -- that's a 2.0% decrease week over week (from 301,820,000 to 295,770,000). 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 $123.78. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.4%, Elevance Health Inc (Symbol: ELV) is off about 1.2%, and Medtronic PLC (Symbol: MDT) is lower by about 1.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $123.78. 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). |
23087.0 | 2022-10-07 00:00:00 UTC | Want $1,000 in Passive Income? Don't Make These 3 Mistakes | ABBV | https://www.nasdaq.com/articles/want-%241000-in-passive-income-dont-make-these-3-mistakes | nan | nan | If you're looking to invest with the goal of making $1,000 in annual passive income, you'll need to play your cards carefully. It might seem like a great idea to slam down a lot of money buying shares of a single company with a high dividend yield, or perhaps a business that has a history of hiking its dividend, but it isn't that simple. Businesses change, and investors often make assumptions about dividend income that are unlikely to hold true.
So if you want to build up passive income from your dividend stocks, try to avoid the following three mistakes.
1. Putting all your eggs into one basket
The biggest mistake to avoid when building dividend revenue is to be overly concentrated in one or two stocks. Even if you've picked judiciously on the basis of what you know about your companies today, no business is totally immune to the fluctuations of the economy.
Take a high-quality dividend stock like AbbVie (NYSE: ABBV), for example. With a forward dividend yield of 4.2%, nobody could blame you for the temptation to buy a lot of shares to get a favorable return. You'd only need to invest around $23,809 to make $1,000 in dividends.
But as a pharmaceutical company, AbbVie is exposed to a significant amount of risk from changes in drug pricing legislation, and that could potentially ruin your dividend returns. Drug pricing is a hot-button political issue that's frequently the target of tweaks, including most recently in the Inflation Reduction Act.
There's no guarantee that any individual change to the relevant regulations is going to harm AbbVie's ability to keep paying its dividend. But why would you leave yourself exposed to the possibility when you could simply diversify your holdings instead?
Investing in multiple passive income stocks in different industries rather than just one or two ensures that even if one of your companies is struggling due to factors beyond its control, your cash flow won't change by very much.
2. Assuming that high yields are sustainable
Another critical mistake that investors can make when buying dividend stocks is believing that high yields will continue forever. For example, if you look at another pharmaceutical business like GSK (NYSE: GSK), it might seem reasonable to expect its forward dividend yield of about 7.6% to remain roughly the same over time. After all, with its trailing 12-month net income up 216% in the last five years to reach nearly $6.1 billion, there doesn't appear to be much reason for management to slash the dividend. But consider this chart:
GSK Dividend Yield data by YCharts
As you can see, the stock's yield fluctuates considerably. When its price rises, its yield falls, and vice versa. That means when yields for some of your stocks are high, you should consider adding more to those positions than to those that have lower yields. You can always contribute to the lower-yielding positions in the future if their prices become more favorable.
3. Assuming that dividend growth is likely to continue
The last mistake to avoid is assuming that dividends will grow indefinitely. This mistake is especially tempting for companies that already have a long history of dividend hikes, but it's a ubiquitous risk. Not all businesses that pay a dividend do so with the goal of raising their payout every year; as an example, consider that GSK issues dividends regularly, but the size of its payment fluctuates every quarter, and there's no trend of increasing it. So if you invested in the stock with the expectation of growth, you'd be left wanting.
To avoid making this mistake, you'll need to vet a company's financials to see first whether its dividend has a history of year-over-year expansion, and second whether it's consistently generating enough excess capital to continue returning it to investors in larger and larger quantities in the future. Looking at the pace of free cash flow (FCF) growth over time is a good starting point for your analysis, but don't stop there.
Pay attention to the payout ratio, which shows the proportion of a company's earnings that goes to dividend payments. Low payout ratios mean that the business has plenty of money to spend on boosting shareholder returns as well as reinvestment and other purposes. In contrast, payout ratios over 100% are less likely to be sustainable because they mean that it takes more than the total of the company's annual earnings to maintain the dividend.
If you want a shortcut, confine your passive income investing to the Dividend Kings, all of which are stable businesses that have opted to hike their payout for at least 50 years consecutively.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool recommends GSK plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But as a pharmaceutical company, AbbVie is exposed to a significant amount of risk from changes in drug pricing legislation, and that could potentially ruin your dividend returns. Take a high-quality dividend stock like AbbVie (NYSE: ABBV), for example. There's no guarantee that any individual change to the relevant regulations is going to harm AbbVie's ability to keep paying its dividend. | Take a high-quality dividend stock like AbbVie (NYSE: ABBV), for example. But as a pharmaceutical company, AbbVie is exposed to a significant amount of risk from changes in drug pricing legislation, and that could potentially ruin your dividend returns. There's no guarantee that any individual change to the relevant regulations is going to harm AbbVie's ability to keep paying its dividend. | Take a high-quality dividend stock like AbbVie (NYSE: ABBV), for example. But as a pharmaceutical company, AbbVie is exposed to a significant amount of risk from changes in drug pricing legislation, and that could potentially ruin your dividend returns. There's no guarantee that any individual change to the relevant regulations is going to harm AbbVie's ability to keep paying its dividend. | Take a high-quality dividend stock like AbbVie (NYSE: ABBV), for example. But as a pharmaceutical company, AbbVie is exposed to a significant amount of risk from changes in drug pricing legislation, and that could potentially ruin your dividend returns. There's no guarantee that any individual change to the relevant regulations is going to harm AbbVie's ability to keep paying its dividend. |
23088.0 | 2022-10-06 00:00:00 UTC | Why Warren Buffett Thinks It's a Mistake to Dump Your Stocks in a Bear Market | ABBV | https://www.nasdaq.com/articles/why-warren-buffett-thinks-its-a-mistake-to-dump-your-stocks-in-a-bear-market | nan | nan | The S&P 500 is down 24% this year, and the stock market hasn't been a great place to be holding your money of late. Investors have been dumping stocks left and right, with many quality companies seeing their valuations plummet as interest rate increases and rising inflation have made people second-guess their investments.
But before you follow suit and decide to dump all of your stocks and hold cash or pivot to bonds, you should consider Warren Buffett's advice, and why getting out of the stock market right now could be a costly mistake.
Buffett believes it's always favorable to remain invested
Warren Buffett isn't a fan of economic projections, or what he refers to as "dancing" in and out of stocks based solely on economic outlooks. And in a Berkshire Hathaway shareholder meeting in 2015, he said that "we think any company that has an economist has one employee too many."
Buffett is an investor who has remained invested for decades, all the while experiencing the effects of inflation, recessions, wars, and no shortage of crashes along the way. He believes that "the risks of being out of the game are huge compared to the risks of being in it." And the game he's referring to -- investing -- is favorable in the long run. Another popular investor, Peter Lynch, agrees with that notion, saying that "people who exit the stock market to avoid a decline are odds-on favorites to miss the next rally."
Given that the stock market has always recovered from every decline, history should serve as an important reminder to investors that there's always light at the end of the tunnel.
Investors should focus on fundamentals rather than forecasts
The key takeaway for investors is to invest in businesses that will do well in the long run, and to not worry about economic projections or what the experts think will happen. There are too many variables to factor in regarding where the economy may go, and the simpler option is to focus on a business itself.
One example of a company that could make for a great long-term investment is drugmaker AbbVie (NYSE: ABBV), which has solid financials and a path to more growth. Revenue of $56.2 billion last year was 72% higher than the $32.8 billion the company generated in 2018. Profits during that time doubled to $11.5 billion. And over the trailing 12 months, the company has generated free cash flow of more than $22 billion.
AbbVie's acquisition of Botox-maker Allergan a few years ago has diversified its business; Botox cosmetic sales rose 19% in its most recent quarter (ended June 30). Its high-growth products Skyrizi and Rinvoq both generated sales growth in excess of 50% during the quarter and should make up for declines in revenue from top-selling drug Humira, which begins losing exclusivity as early as next year.
Combined with its high-yielding dividend that pays 4.2%, AbbVie is the type of stock that you might expect to perform well in the long run, regardless of the economic situation. Its financials are strong, and the business is well-diversified.
Another stock with strong fundamentals to consider is Adobe (NASDAQ: ADBE). The tech company sells popular software products, including photo-editing program Adobe Photoshop, on a recurring subscription basis. Its products are top of the line and essential to many professionals involved in web design and photography.
However, the stock recently nosedived after announcing lackluster earnings numbers where sales rose by 13% to $4.4 billion. That's modest growth for a company that earlier this year commanded a hefty price-to-earnings multiple of more than 50 (now it's down to less than 30). Last month, it also announced a seemingly expensive $20 billion acquisition of Figma, a company that focuses on creating web applications for collaborating on web design projects.
With Adobe's stock now near 52-week lows, it could present an attractive buying opportunity for investors. The company may have carved out a new growth avenue for its business, focusing more on collaboration -- while also becoming a cheaper investment. Adobe has generated more than $7 billion in free cash flow over the trailing 12 months, and it is in a solid position to pursue more opportunities as they come up. In the long run, this can be another great stock to buy and hold.
Buying and holding could pay off, now more than ever
AbbVie and Adobe are just two examples of promising growth stocks to own for the long haul, but there are many other options out there that investors can load up on today. While there could still be declines in the months ahead for stocks, there's also the possibility of an eventual rally that could make holding on to your investments a great decision.
As long as you don't need to take the money out, keeping it invested in stocks with strong fundamentals could be a move you thank yourself for later on.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe Inc. and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $420 calls on Adobe Inc., short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short January 2024 $430 calls on Adobe Inc. 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. | One example of a company that could make for a great long-term investment is drugmaker AbbVie (NYSE: ABBV), which has solid financials and a path to more growth. AbbVie's acquisition of Botox-maker Allergan a few years ago has diversified its business; Botox cosmetic sales rose 19% in its most recent quarter (ended June 30). Combined with its high-yielding dividend that pays 4.2%, AbbVie is the type of stock that you might expect to perform well in the long run, regardless of the economic situation. | One example of a company that could make for a great long-term investment is drugmaker AbbVie (NYSE: ABBV), which has solid financials and a path to more growth. AbbVie's acquisition of Botox-maker Allergan a few years ago has diversified its business; Botox cosmetic sales rose 19% in its most recent quarter (ended June 30). Combined with its high-yielding dividend that pays 4.2%, AbbVie is the type of stock that you might expect to perform well in the long run, regardless of the economic situation. | Buying and holding could pay off, now more than ever AbbVie and Adobe are just two examples of promising growth stocks to own for the long haul, but there are many other options out there that investors can load up on today. One example of a company that could make for a great long-term investment is drugmaker AbbVie (NYSE: ABBV), which has solid financials and a path to more growth. AbbVie's acquisition of Botox-maker Allergan a few years ago has diversified its business; Botox cosmetic sales rose 19% in its most recent quarter (ended June 30). | One example of a company that could make for a great long-term investment is drugmaker AbbVie (NYSE: ABBV), which has solid financials and a path to more growth. AbbVie's acquisition of Botox-maker Allergan a few years ago has diversified its business; Botox cosmetic sales rose 19% in its most recent quarter (ended June 30). Combined with its high-yielding dividend that pays 4.2%, AbbVie is the type of stock that you might expect to perform well in the long run, regardless of the economic situation. |
23089.0 | 2022-10-05 00:00:00 UTC | ABBV December 16th Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-december-16th-options-begin-trading | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the December 16th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 72 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $6.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $134.00 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $142.46/share today.
Because the $140.00 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 4.29% return on the cash commitment, or 21.71% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $5.20. If an investor was to purchase shares of ABBV stock at the current price level of $142.46/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.43% if the stock gets called away at the December 16th 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 $145.00 strike highlighted in red:
Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.65% boost of extra return to the investor, or 18.49% 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 $142.46) to be 22%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
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 $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the December 16th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the December 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 16th 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 $140.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $5.20. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the December 16th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the December 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 16th contracts and identified one put and one call contract of particular interest. |
23090.0 | 2022-10-05 00:00:00 UTC | 3 Dividend Stocks to Buy In October and Hold Forever | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-in-october-and-hold-forever | nan | nan | If you're like most investors, 2022 has been a difficult year that you would rather forget. A war in Europe and the subsequent energy crisis it's causing would be enough to tank global stock markets in any given year. On top of Russia's invasion of Ukraine, markets are also reeling from rapidly rising interest rates intended to quell runaway inflation.
Once you consider all the challenges stock markets face, it's a little surprising that the benchmark S&P 500 index has only lost around 25% of its value this year. During difficult times like these, it makes sense to buy shares of businesses that have what it takes to survive external economic meltdowns.
Image source: Getty Images.
These three stocks are supported by highly reliable underlying businesses that have been making and raising their quarterly dividend payouts for a long time. Here's why putting them in your portfolio now could lead to heaps of passive income even if their share prices don't cooperate.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has been advancing various healthcare businesses for over 130 years. The company has faced more than a few global economic challenges during its history, and its diversified healthcare operation has emerged stronger every time.
It's been 60 years since Abbott went more than a year without raising its dividend payout at least once. These days, the company's a leader among cardiovascular device makers. It also has a leading diagnostics business that jumped into action at the beginning of the COVID-19 pandemic.
Abbott shares offer a yield of 1.9% at recent prices. This may not seem very attractive now, but this reliable payout could jump higher in the years ahead. In May, the U.S. Food and Drug Administration cleared the company's 14-day continuous glucose monitor (CGM) for people living with diabetes. The FreeStyle Libre 3 system sends readings to patients' smartphones every minute from a tiny sensor the size of two stacked pennies that sticks to patients' upper arms.
Abbott Laboratories has been able to raise its dividend payout 77% higher over the past five years. The ongoing launch of its new CGM in the U.S. could make the next five years even more exciting.
2. CVS Health
CVS Health (NYSE: CVS) has only raised its dividend payout once over the past five years, but don't let this dissuade you from buying the stock. The company froze its dividend payout in 2018 to help pay for a $69 billion acquisition of Aetna, a leading provider of private and government-sponsored healthcare plans.
Aetna isn't the first acquisition that has transformed CVS Health from a simple retail pharmacy operation into a unique healthcare giant. The company also owns a pharmacy benefits management business that processed a whopping 1.15 billion claims in the first half of 2022.
In September, CVS took another step to stay ahead of the competition. The conglomerate agreed to acquire Signify Health for $8 billion. This is a network of more than 10,000 care providers expected to complete around 2.5 million home visits this year. The acquisition is expected to boost CVS Health's bottom line immediately, partly because the company can pull it off using cash from operations that reached a stunning $9.0 billion in the first half of 2022.
With a leading position in the rapidly evolving market for providing primary care services, I won't be surprised if this healthcare conglomerate triples its dividend payout over the next decade.
3. AbbVie
AbbVie (NYSE: ABBV) is a biopharmaceutical company that has only been making and increasing its dividend since 2013. That's because, before 2013, this was still Abbott Laboratories' biopharmaceutical segment.
AbbVie split to shield Abbott from the imminent collapse of the company's best-selling drug, Humira. This is an anti-inflammation injection first approved to treat arthritis in 2002. Subsequent approvals for psoriasis and related conditions pushed Humira sales past $20 billion annually in 2021.
The launch of biosimilar competition in Europe hammered international Humira sales in 2019. Beginning in 2023, U.S. Humira sales will begin falling in the face of biosimilar competition too. Fear of a post-Humira exclusivity future has pushed the stock low enough that its dividend offers a 4.2% yield at the moment.
AbbVie looks like a buy now because, in years past, it expertly funneled Humira profits into the development of new products that could more than offset impending Humira losses. Rinvoq and Skyrizi are treatments for arthritis and psoriasis, respectively, that both earned approvals for the first time in 2019. Skyrizi and Rinvoq are already on pace to generate a combined $7 billion in revenue annually, and AbbVie expects more than $15 billion from this pair of drugs in 2025.
AbbVie has raised its payout a stunning 120% over the past five years. With new growth drivers to offset Humira's impending losses, the dividend could continue rising rapidly for many years to come.
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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 AbbVie (NYSE: ABBV) is a biopharmaceutical company that has only been making and increasing its dividend since 2013. AbbVie split to shield Abbott from the imminent collapse of the company's best-selling drug, Humira. AbbVie looks like a buy now because, in years past, it expertly funneled Humira profits into the development of new products that could more than offset impending Humira losses. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that has only been making and increasing its dividend since 2013. AbbVie split to shield Abbott from the imminent collapse of the company's best-selling drug, Humira. AbbVie looks like a buy now because, in years past, it expertly funneled Humira profits into the development of new products that could more than offset impending Humira losses. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that has only been making and increasing its dividend since 2013. AbbVie split to shield Abbott from the imminent collapse of the company's best-selling drug, Humira. AbbVie looks like a buy now because, in years past, it expertly funneled Humira profits into the development of new products that could more than offset impending Humira losses. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that has only been making and increasing its dividend since 2013. AbbVie split to shield Abbott from the imminent collapse of the company's best-selling drug, Humira. AbbVie looks like a buy now because, in years past, it expertly funneled Humira profits into the development of new products that could more than offset impending Humira losses. |
23091.0 | 2022-10-04 00:00:00 UTC | Here is What to Know Beyond Why AbbVie Inc. (ABBV) is a Trending Stock | ABBV | https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-abbvie-inc.-abbv-is-a-trending-stock-1 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned +1.5% over the past month versus the Zacks S&P 500 composite's -6.2% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
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 $3.59 per share for the current quarter, representing a year-over-year change of +7.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The consensus earnings estimate of $13.90 for the current fiscal year indicates a year-over-year change of +9.5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.67 indicates a change of -16% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AbbVie, the consensus sales estimate for the current quarter of $14.96 billion indicates a year-over-year change of +4.3%. For the current and next fiscal years, $59.1 billion and $55.23 billion estimates indicate +5.2% and -6.6% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.58 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $3.37 for the same period compares with $3.11 a year ago.
Compared to the Zacks Consensus Estimate of $14.65 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was +1.81%.
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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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. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.2% over this period. AbbVie is expected to post earnings of $3.59 per share for the current quarter, representing a year-over-year change of +7.8%. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.2% over this period. AbbVie is expected to post earnings of $3.59 per share for the current quarter, representing a year-over-year change of +7.8%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 0.2% over this period. | For the next fiscal year, the consensus earnings estimate of $11.67 indicates a change of -16% from what AbbVie is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. |
23092.0 | 2022-10-04 00:00:00 UTC | Reata Pharma (RETA) is Striving Hard Despite Pipeline Setbacks | ABBV | https://www.nasdaq.com/articles/reata-pharma-reta-is-striving-hard-despite-pipeline-setbacks | nan | nan | Reata Pharmaceuticals RETA is a clinical-stage biopharma company focused on developing small molecule therapies for life-threatening diseases with few treatment options. The company currently has no marketed drugs in its portfolio.
However, the company is developing two of its lead pipeline candidates, namely, omaveloxolone in Friedreich’s ataxia (“FA”) and bardoxolone in rare forms of chronic kidney disease (CKD).
Reata reacquired the ex-US rights to develop, manufacture and commercialize bardoxolone and worldwide rights for omaveloxolone and its proprietary Nrf2 product platform from AbbVie ABBV in 2019.
Reata made a cash payment of $330 million to AbbVie as a consideration for the reacquisition of the rights, primarily for rights to bardoxolone.
Reata completed the rolling submission of a new drug application (NDA) to the FDA for omaveloxolone for treating FA in March 2022.
In May, the FDA accepted the company’s NDA for filing and granted priority review.
FA patients do not have an effective treatment option as of yet. A shorter review period also implied a significant need for a treatment option for this patient population.
In August, the company reported that the FDA extended its review timeline for the NDA for omaveloxolone for FA by almost three months.
Reata had a mid-cycle meeting with the FDA in the first quarter, in which the FDA raised concerns regarding the strength of the omaveloxolone’s efficacy evidence.
Post the meeting, as confirmatory evidence, the company submitted additional data from the long-term MOXIe extension study from the March 22 data. The company also provided a propensity score matched comparison of the mFARs subjects in the largest natural history study of FA to the mFARS progression of omaveloxolone-treated patients in its MOXIe Extension study. In addition, Reata submitted mechanistic action data validating Nrf2 in the pathophysiology of FA. Clinical biomarker data showing that omaveloxolone-induced Nrf2 activity in subjects of the MOXIe part II study was associated with improvements in mFARS scores was also submitted.
Thus, a decision from the FDA on the potential approval of omaveloxolone is now expected by Feb 28, 2023.
A potential approval will make omaveloxolone the first FDA-approved therapy for the rare genetic neuromuscular disorder, Friedreich’s ataxia. Reata expects to launch the candidate in early 2023.
The company intends to file a regulatory application seeking approval for omaveloxolone as a treatment for FA patients in Europe in the fourth quarter of 2022.
In March 2021, Reata had submitted an NDA to the FDA for bardoxolone for treating CKD caused by Alport syndrome. However, in February 2022, the company’s prospects were hurt as it received a complete response letter (CRL) from the FDA for bardoxolone indicating that the NDA cannot be approved in its present form. Reata has requested a Type C meeting with the FDA to decide the next step forward for bardoxolone in the aforementioned indication.
Reata is also developing bardoxolone for treating autosomal dominant polycystic kidney disease (“ADPKD”) in a late-stage study. The company recently filed a protocol amendment and requested a Type A meeting with the FDA to discuss the ADPKD development program.
Moreover, Reata faces stiff competition in its target market since several companies are developing candidates for similar indications.
AstraZeneca’s AZN Farxiga (dapagliflozin) was approved by the FDA in May 2021 for treating adults with CKD at risk of progression. AstraZeneca’s CKD drug may prove to be a competition for Reata’s bardoxolone, post approval.
Eli Lilly’s Jardiance is also being developed for CKD and other inflammatory kidney diseases. It has also been granted Fast Track designation by the FDA.
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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. | Reata reacquired the ex-US rights to develop, manufacture and commercialize bardoxolone and worldwide rights for omaveloxolone and its proprietary Nrf2 product platform from AbbVie ABBV in 2019. Reata made a cash payment of $330 million to AbbVie as a consideration for the reacquisition of the rights, primarily for rights to bardoxolone. AbbVie Inc. (ABBV): Free Stock Analysis Report | Reata reacquired the ex-US rights to develop, manufacture and commercialize bardoxolone and worldwide rights for omaveloxolone and its proprietary Nrf2 product platform from AbbVie ABBV in 2019. Reata made a cash payment of $330 million to AbbVie as a consideration for the reacquisition of the rights, primarily for rights to bardoxolone. AbbVie Inc. (ABBV): Free Stock Analysis Report | Reata reacquired the ex-US rights to develop, manufacture and commercialize bardoxolone and worldwide rights for omaveloxolone and its proprietary Nrf2 product platform from AbbVie ABBV in 2019. Reata made a cash payment of $330 million to AbbVie as a consideration for the reacquisition of the rights, primarily for rights to bardoxolone. AbbVie Inc. (ABBV): Free Stock Analysis Report | AbbVie Inc. (ABBV): Free Stock Analysis Report Reata reacquired the ex-US rights to develop, manufacture and commercialize bardoxolone and worldwide rights for omaveloxolone and its proprietary Nrf2 product platform from AbbVie ABBV in 2019. Reata made a cash payment of $330 million to AbbVie as a consideration for the reacquisition of the rights, primarily for rights to bardoxolone. |
23093.0 | 2022-10-03 00:00:00 UTC | Can AbbVie's (ABBV) New Drugs Make up for Lost Humira Sales? | ABBV | https://www.nasdaq.com/articles/can-abbvies-abbv-new-drugs-make-up-for-lost-humira-sales | nan | nan | AbbVie ABBV is presently focused on strengthening its immunology portfolio. While its anti-inflammatory drug Humira continues to be a key revenue driver of the company’s sales, it is set to lose exclusivity in the United States next year.
AbbVie’s flagship product, Humira, is approved in the United States and Europe for several autoimmune diseases like rheumatoid arthritis (RA), active psoriatic arthritis, active ankylosing spondylitis and Crohn’s disease (CD). The drug accounted for nearly 37% of total 2021 revenues.
In the international markets, AbbVie is already facing direct biosimilar competition in Europe and other countries, resulting in a loss of product revenue. In the first half of 2022, international sales of the drug declined 18.6%. International sales were affected by the launch of several direct biosimilar drugs in Europe by other pharma companies, including Amgen AMGN, Sandoz and Biogen BIIB.
Companies like Amgen, Sandoz and Biogen were the first to start commercializing a Humira-biosimilar in Europe in 2018. Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization is expected to start after the loss of exclusivity for Humira in the U.S.
To prepare for the loss in Humira sales due to patent exclusivity, AbbVie has developed and is presently marketing its newest immunology drugs, Skyrizi (risankizumab) and Rinvoq (upadacitinib), which position it well for long-term growth.
Rinvoq is approved for five indications in the United States and Europe — RA, psoriatic arthritis, ankylosing spondylitis, atopic dermatitis and ulcerative colitis. Skyrizi is approved in the United States and Europe for two indications – plaque psoriasis and psoriatic arthritis. Skyrizi is also approved in the United States for a third indication, i.e., CD, while a regulatory filing is under review in Europe seeking approval for Skyrizi in CD and a decision is expected by year-end.
Skyrizi and Rinvoq have demonstrated differentiated clinical profiles versus Humira and are already contributing meaningful revenues. Rinvoq and Skyrizi combined have generated $4.6 billion in combined sales in 2021 and $3.25 billion in the first half of 2022.
This strength in revenue is mainly driven by approvals of the drugs in new indications. With these approvals, sales of these drugs could be higher in 2023/2024 and potentially to replace Humira when generics are launched in the United States in 2023. AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
Apart from immunology franchise, AbbVie also enjoys leadership positions in other key therapeutic areas, including hematologic oncology, neuroscience, aesthetics and eye care.
AbbVie believes that oncology will be its major growth driver over the next 10 years. AbbVie has built a substantial oncology franchise with Imbruvica (hematological cancers) and Venclexta (hematological malignancies), which generated nearly $7.2 billion in 2021 and $3.3 billion in first-half 2022.
AbbVie developed Imbruvica in partnership with Johnson & Johnson JNJ. Per the terms of the partnership, J&J has exclusive license to market the drug outside the United States. The company shares international profits earned from Imbruvica with J&J. Both ABBV and J&J co-exclusively market the drug in the United States
The U.S. sales of Imbruvica are being hurt by lower new patient starts in CLL due to delayed recovery from the pandemic and increasing competition from newer therapies. However, sales are expected to recover in subsequent future quarters as the pandemic is now officially over in the country.
AbbVie also 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 non-squamous non-small cell lung cancer. AbbVie expects to submit regulatory applications in 2022 for accelerated approval of epcoritamab in patients with relapsed/refractory large B-cell lymphoma.
Other key drugs include Botox Cosmetic (aesthetic use), Juvederm, Botox Therapeutics (neuroscience indications) and Vraylar (schizophrenia and bipolar I disorder), each of which is a driver of sales for the company. The company added Botox to its list following the acquisition of Allergan in 2020. AbbVie’s rationale behind the Allergan deal was to add a new blockbuster product like Botox to its portfolio, ahead of generic competition for Humira.
The company has also launched new migraine drugs, Ubrelvy and Qulipta, with each drug representing a $1 billion-plus peak sales 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. | Apart from immunology franchise, AbbVie also enjoys leadership positions in other key therapeutic areas, including hematologic oncology, neuroscience, aesthetics and eye care. Both ABBV and J&J co-exclusively market the drug in the United States The U.S. sales of 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 ABBV is presently focused on strengthening its immunology portfolio. | AbbVie’s flagship product, Humira, is approved in the United States and Europe for several autoimmune diseases like rheumatoid arthritis (RA), active psoriatic arthritis, active ankylosing spondylitis and Crohn’s disease (CD). Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization is expected to start after the loss of exclusivity for Humira in the U.S. To prepare for the loss in Humira sales due to patent exclusivity, AbbVie has developed and is presently marketing its newest immunology drugs, Skyrizi (risankizumab) and Rinvoq (upadacitinib), which position it well for long-term growth. AbbVie ABBV is presently focused on strengthening its immunology portfolio. | AbbVie’s flagship product, Humira, is approved in the United States and Europe for several autoimmune diseases like rheumatoid arthritis (RA), active psoriatic arthritis, active ankylosing spondylitis and Crohn’s disease (CD). Amgen, Biogen, Boehringer Ingelheim, Pfizer, Sandoz and many other companies also received FDA approvals for a Humira-biosimilar but commercialization is expected to start after the loss of exclusivity for Humira in the U.S. To prepare for the loss in Humira sales due to patent exclusivity, AbbVie has developed and is presently marketing its newest immunology drugs, Skyrizi (risankizumab) and Rinvoq (upadacitinib), which position it well for long-term growth. AbbVie ABBV is presently focused on strengthening its immunology portfolio. | AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025. AbbVie ABBV is presently focused on strengthening its immunology portfolio. AbbVie’s flagship product, Humira, is approved in the United States and Europe for several autoimmune diseases like rheumatoid arthritis (RA), active psoriatic arthritis, active ankylosing spondylitis and Crohn’s disease (CD). |
23094.0 | 2022-10-03 00:00:00 UTC | Bear Market Bargains: 3 Dividend Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/bear-market-bargains%3A-3-dividend-stocks-to-buy-now | nan | nan | Bear markets offer great opportunities to make money. The problem for many investors is that they're afraid to dip their toes in the water with stocks that are sinking.
But what if you could find stocks that have actually performed well, offer exceptional dividends, and are attractively valued? The good news is that these outliers exist. Here are three such dividend stocks to buy now that are bear market bargains.
1. AbbVie
AbbVie (NYSE: ABBV) belongs to the exclusive group of stocks known as Dividend Kings. The drugmaker has increased its dividend for 50 consecutive years. Its dividend yield stands at a hair under 4%.
Admittedly, AbbVie hasn't delivered massive gains for shareholders this year. But the biopharma stock has still managed to stay in positive territory for most of 2022. That's a noteworthy accomplishment in the current dismal market.
The stock trades at 12.2 times expected earnings -- much lower than the S&P 500's forward earnings multiple of 16.2. AbbVie's low valuation is due primarily to investors' concerns about Humira. The company's best-selling drug loses U.S. exclusivity in 2023.
However, AbbVie already has two worthy successors to Humira on the market with Rinvoq and Skyrizi. It fully expects these two drugs will generate sales within a few years that are greater than Humira's peak sales. AbbVie also has other solid growth drivers in its lineup, including blood cancer drug Venclexta and antipsychotic Vraylar.
2. Bristol Myers Squibb
Bristol Myers Squibb (NYSE: BMY) is another big drugmaker with a solid dividend. Its dividend yield tops 3%. The company has increased its dividend for 13 consecutive years.
Sure, that track record isn't as impressive as AbbVie's. But BMS is beating AbbVie (and most other stocks) on another important front: Its share price has soared nearly 15% year to date while the major indexes plunged.
BMS is also even more of a bargain than AbbVie is. Its shares currently trade at 8.7 times expected earnings. Like its big pharma rival, though, BMS must deal with a patent cliff. Blockbuster drugs Revlimid and Pomalyst have already lost exclusivity. The key patents for several of the company's other top-selling drugs expire in a few years.
Don't count BMS out, though. The company could have another multibillion-dollar drug in the making with combination immunotherapy Opdualag. BMS also has several rising stars in its product lineup along with a promising pipeline.
3. Chevron
Many income investors have been fans of Chevron (NYSE: CVX) for years. That's still the case, with the oil and gas giant offering a dividend yield of more than 3.9%. Chevron is also a Dividend Aristocrat that has increased its dividend for 35 consecutive years.
It isn't just income investors that have liked Chevron this year, though. The stock has been a big winner, soaring more than 20% year to date after skyrocketing 39% in 2021. Russia's invasion of Ukraine disrupted global energy markets and directly benefited Chevron.
You might think after Chevron's big gains that the stock would be expensive. Nope. Its shares trade at only 9.2 times expected earnings. Although this multiple is a little higher than the energy sector average of 8.1, Chevron is much stronger financially than most other energy companies.
Chevron should be able to continue paying its attractive dividend and buying back shares even if oil prices fall significantly. The company is also focusing on low-carbon projects that could pave the way for future growth. Like AbbVie and Bristol Myers Squibb, Chevron is a bear market bargain that could also continue beating the market.
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Keith Speights has positions in AbbVie and Bristol Myers Squibb. 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. | AbbVie also has other solid growth drivers in its lineup, including blood cancer drug Venclexta and antipsychotic Vraylar. But BMS is beating AbbVie (and most other stocks) on another important front: Its share price has soared nearly 15% year to date while the major indexes plunged. AbbVie AbbVie (NYSE: ABBV) belongs to the exclusive group of stocks known as Dividend Kings. | Like AbbVie and Bristol Myers Squibb, Chevron is a bear market bargain that could also continue beating the market. AbbVie AbbVie (NYSE: ABBV) belongs to the exclusive group of stocks known as Dividend Kings. Admittedly, AbbVie hasn't delivered massive gains for shareholders this year. | AbbVie AbbVie (NYSE: ABBV) belongs to the exclusive group of stocks known as Dividend Kings. Like AbbVie and Bristol Myers Squibb, Chevron is a bear market bargain that could also continue beating the market. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Keith Speights has positions in AbbVie and Bristol Myers Squibb. | Like AbbVie and Bristol Myers Squibb, Chevron is a bear market bargain that could also continue beating the market. AbbVie AbbVie (NYSE: ABBV) belongs to the exclusive group of stocks known as Dividend Kings. Admittedly, AbbVie hasn't delivered massive gains for shareholders this year. |
23095.0 | 2022-10-02 00:00:00 UTC | Got $2,000? Buy These 2 Bear Market-Beating Growth Stocks | ABBV | https://www.nasdaq.com/articles/got-%242000-buy-these-2-bear-market-beating-growth-stocks | nan | nan | With the market down by more than 21% in 2022, we're officially in a bear market, and many investors are scrambling to protect themselves. And one solid way to protect your portfolio from falling share prices in the bear market is to load up on stocks that aren't having any trouble outperforming it.
On that note, there are two pharmaceutical businesses that are weathering the decline thanks to their strong financial performance and slew of positive catalysts. Here's why they're likely to continue with their winning streaks -- and why it could be worthwhile to invest $1,000 in each.
1. AbbVie
AbbVie's (NYSE: ABBV) stock is up 9.9% this year, and with a bunch of recently reported clinical trial results and green lights from regulators, it isn't too surprising why.
Most recently, on Sept. 10, it announced that a pair of its phase 3 trials of Skyrizi, a psoriatic arthritis drug that's already on the market, showed that the drug was performing favorably in long-term followup studies. The trial is investigating whether the drug can be used safely and effectively over the course of several years in patients with treatment-resistant psoriatic arthritis.
Skyrizi brought in more than $1.2 billion for the company in the second quarter alone out of its total revenue of more than $14.5 billion, and the positive update is a piece of evidence which suggests that AbbVie will be making a lot more money from the drug in the future than it is today.
And Skyrizi is far from the only medicine with a similar ramp-up in progress. Sales of Rinvoq, a medicine for ankylosing spondylitis and also for ulcerative colitis, were $592 million in the second quarter. Regulators at the U.S. Food and Drug Administration (FDA) and the European Commission (EC) both granted expansions to Rinvoq's approved indications in Q2, and that'll guarantee higher sales in both markets for years to come. Plus, AbbVie is continuing to develop both Rinvoq and Skyrizi for additional indications to keep the gravy rolling in.
If you invest $1,000 in AbbVie today and the average price target of $158.30 as estimated by financial analysts for a year from now turns out to be correct, you'll have around $1,107, which isn't half bad, especially if the market continues to fall.
2. Jazz Pharmaceuticals
The recent history of Jazz Pharmaceuticals (NASDAQ: JAZZ) is similar to AbbVie's, and that's why its shares are up by 1.2% even while the market is contracting sharply.
In the second quarter, it submitted its approval packet in the E.U. for Rylaze, a drug that's already been on the market in the U.S. for acute lymphoblastic leukemia and lymphoblastic lymphoma since the middle of 2021. Per management, its U.S. sales for the medicine totaled $73 million in Q2, and with an E.U. approval looming in early 2023, its revenue will almost certainly continue to ramp up sharply over the next few years. Rylaze's growth will continue to drive top line expansion for Jazz, which management expects will result in total revenue of up to $3.7 billion for 2022.
Jazz is also in the process of scaling up and launching its idiopathic hypersomnia drug called Xywav. Compared to the same quarter last year, Xywav made the company 89% more sales in the second quarter, totaling $235 million. And there should be more growth on the way as more patients get enrolled in treatment. That's yet another tailwind for the stock that'll help it keep beating the bear market, not to mention competing investments.
Moving forward, management is expecting the company to keep growing its revenue with a compound annual growth rate (CAGR) of 13% between now and 2025. Assuming you make a $1,000 purchase of Jazz shares today and its return is in line with its one-year price target of $198.68, your investment will gain around 50.9% and leave you with somewhere in the ballpark of $1,509. That's quite attractive for such a short period, and Jazz's packed late-stage pipeline will likely help to sustain decent returns in the years that follow, too.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you invest $1,000 in AbbVie today and the average price target of $158.30 as estimated by financial analysts for a year from now turns out to be correct, you'll have around $1,107, which isn't half bad, especially if the market continues to fall. AbbVie AbbVie's (NYSE: ABBV) stock is up 9.9% this year, and with a bunch of recently reported clinical trial results and green lights from regulators, it isn't too surprising why. Skyrizi brought in more than $1.2 billion for the company in the second quarter alone out of its total revenue of more than $14.5 billion, and the positive update is a piece of evidence which suggests that AbbVie will be making a lot more money from the drug in the future than it is today. | Jazz Pharmaceuticals The recent history of Jazz Pharmaceuticals (NASDAQ: JAZZ) is similar to AbbVie's, and that's why its shares are up by 1.2% even while the market is contracting sharply. AbbVie AbbVie's (NYSE: ABBV) stock is up 9.9% this year, and with a bunch of recently reported clinical trial results and green lights from regulators, it isn't too surprising why. Skyrizi brought in more than $1.2 billion for the company in the second quarter alone out of its total revenue of more than $14.5 billion, and the positive update is a piece of evidence which suggests that AbbVie will be making a lot more money from the drug in the future than it is today. | Skyrizi brought in more than $1.2 billion for the company in the second quarter alone out of its total revenue of more than $14.5 billion, and the positive update is a piece of evidence which suggests that AbbVie will be making a lot more money from the drug in the future than it is today. Jazz Pharmaceuticals The recent history of Jazz Pharmaceuticals (NASDAQ: JAZZ) is similar to AbbVie's, and that's why its shares are up by 1.2% even while the market is contracting sharply. AbbVie AbbVie's (NYSE: ABBV) stock is up 9.9% this year, and with a bunch of recently reported clinical trial results and green lights from regulators, it isn't too surprising why. | Jazz Pharmaceuticals The recent history of Jazz Pharmaceuticals (NASDAQ: JAZZ) is similar to AbbVie's, and that's why its shares are up by 1.2% even while the market is contracting sharply. * 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's (NYSE: ABBV) stock is up 9.9% this year, and with a bunch of recently reported clinical trial results and green lights from regulators, it isn't too surprising why. |
23096.0 | 2022-10-01 00:00:00 UTC | Here's Why This Dividend King Is a Buy | ABBV | https://www.nasdaq.com/articles/heres-why-this-dividend-king-is-a-buy | nan | nan | Mounting concerns over the state of the global economy have pushed stocks to their lowest levels of the year. Accordingly, the S&P 500 index has plunged 23% so far this year. But one sector of the market is holding its own in this downward cycle.
Many pharma stocks have squeezed out marginal gains in their share prices in 2022. Among the most notable stocks to do so, AbbVie (NYSE: ABBV) is actually trading up 6% on the year. And this strong performance looks set to continue for a few reasons.
AbbVie has a diverse and powerful portfolio of drugs
AbbVie is best known as the maker of the top-selling drug in the world, Humira. This immunology medicine will likely face competition in 2023 in the U.S. from biosimilars, so the company has been hard at work building its next generation of blockbuster drugs. Besides Humira, AbbVie's portfolio includes 11 other drugs likely to generate at least $1 billion each in net revenue for 2022. This stacked lineup of products explains how the drugmaker's net revenue increased 4.5% year over year to $14.6 billion in the second quarter.
The two drugs most instrumental to its revenue growth come from its immunology segment. Skyrizi recorded $1.3 billion in net revenue during the quarter, a staggering 85.9% growth rate year over year. The increase is attributed to approval in January from the U.S. Food and Drug Administration (FDA) for the drug to treat patients with psoriatic arthritis. Annualized, this new use case could provide a $1.1 billion boost to AbbVie's annual net revenue.
Arthritis medication Rinvoq's net revenue in Q2 soared 56.3% year over year to $592 million. This was the result of the FDA's green light in March for the medicine to treat patients with ulcerative colitis. This new use could add $400 million in annual net revenue for the pharma company.
AbbVie reported $3.37 in non-GAAP (generally accepted accounting principles) diluted earnings per share (EPS) in the second quarter, which was up 11.2% year over year. As a result of its higher net revenue base and tight cost management, the company's non-GAAP net margin increased 460 basis points over the year-ago period to 47.6% during the quarter. This is how AbbVie's adjusted diluted EPS growth was significantly higher than its net revenue growth for the quarter.
Thanks to the company's pipeline of nearly five dozen molecules currently in clinical development, AbbVie has plenty of potential new drugs to help it keep growing over the medium term.
Image source: Getty Images.
AbbVie's market-beating dividend is safe
AbbVie's strong performance allows the company to generate enough free cash flow to support a generous dividend which yields 3.9%, more than twice the S&P 500's average yield of 1.8%. The dividend is sustainable and has room to run higher.
AbbVie's dividend payout ratio will be about 41% in 2022 if earnings projections hold true. That should allow the company enough funds to make further acquisitions and shore up its drug portfolio and pipeline as well as repay debt to strengthen its balance sheet. It should also give AbbVie some breathing room to maintain its dividend in 2023 when profits are likely to dip a bit over the aforementioned rise in U.S. Humira competition.
AbbVie has only been in existence as an independent company since 2013 (it was spun off from Abbott Laboratories (NYSE: ABT)). But because of how the spin-off was handled (with AbbVie maintaining a dividend), AbbVie was able to maintain its streak of consecutive annual dividend increases. That allowed it to be recognized this year as a Dividend King (along with Abbott Labs). Both companies effectively reached 50 consecutive years of payout raises (the main requirement to become a Dividend King) this year. That growth consistency points to the stability and strength of AbbVie's dividend.
AbbVie is still a good value
AbbVie is going to have a hard time replicating the success of Humira with just a single new drug. But the company expects more than $15 billion in combined net revenue from Skyrizi and Rinvoq by 2025, so there is reason to AbbVie can keep its growth going. And with the trailing-12-month (TTM) dividend yield of 3.9% hovering near the 10-year median TTM dividend yield of 3.85%, the market thinks the stock is trading at a fair price. This makes AbbVie a solid buy for income investors and value 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. | Thanks to the company's pipeline of nearly five dozen molecules currently in clinical development, AbbVie has plenty of potential new drugs to help it keep growing over the medium term. It should also give AbbVie some breathing room to maintain its dividend in 2023 when profits are likely to dip a bit over the aforementioned rise in U.S. Humira competition. Among the most notable stocks to do so, AbbVie (NYSE: ABBV) is actually trading up 6% on the year. | This is how AbbVie's adjusted diluted EPS growth was significantly higher than its net revenue growth for the quarter. But because of how the spin-off was handled (with AbbVie maintaining a dividend), AbbVie was able to maintain its streak of consecutive annual dividend increases. Among the most notable stocks to do so, AbbVie (NYSE: ABBV) is actually trading up 6% on the year. | AbbVie has a diverse and powerful portfolio of drugs AbbVie is best known as the maker of the top-selling drug in the world, Humira. AbbVie's market-beating dividend is safe AbbVie's strong performance allows the company to generate enough free cash flow to support a generous dividend which yields 3.9%, more than twice the S&P 500's average yield of 1.8%. But because of how the spin-off was handled (with AbbVie maintaining a dividend), AbbVie was able to maintain its streak of consecutive annual dividend increases. | Besides Humira, AbbVie's portfolio includes 11 other drugs likely to generate at least $1 billion each in net revenue for 2022. Among the most notable stocks to do so, AbbVie (NYSE: ABBV) is actually trading up 6% on the year. AbbVie has a diverse and powerful portfolio of drugs AbbVie is best known as the maker of the top-selling drug in the world, Humira. |
23097.0 | 2022-09-30 00:00:00 UTC | ABBV Dividend Yield Pushes Past 4% | ABBV | https://www.nasdaq.com/articles/abbv-dividend-yield-pushes-past-4 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.64), with the stock changing hands as low as $134.31 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
ABBV has been growing its dividend for more than 20 years consecutively. For more dividend growth stocks view our Dividend Aristocrats List on Dividend Channel.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.64), with the stock changing hands as low as $134.31 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.64), with the stock changing hands as low as $134.31 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.64), with the stock changing hands as low as $134.31 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.64), with the stock changing hands as low as $134.31 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. |
23098.0 | 2022-09-30 00:00:00 UTC | Notable Friday Option Activity: ABBV, FCX, UAL | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-abbv-fcx-ual | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 40,982 contracts has been traded thus far today, a contract volume which is representative of approximately 4.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 74.4% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $140 strike call option expiring September 30, 2022, with 4,969 contracts trading so far today, representing approximately 496,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange:
Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 120,554 contracts thus far today. That number of contracts represents approximately 12.1 million underlying shares, working out to a sizeable 68.5% of FCX's average daily trading volume over the past month, of 17.6 million shares. Especially high volume was seen for the $25 strike put option expiring October 21, 2022, with 43,597 contracts trading so far today, representing approximately 4.4 million underlying shares of FCX. Below is a chart showing FCX's trailing twelve month trading history, with the $25 strike highlighted in orange:
And United Airlines Holdings Inc (Symbol: UAL) saw options trading volume of 60,960 contracts, representing approximately 6.1 million underlying shares or approximately 60.5% of UAL's average daily trading volume over the past month, of 10.1 million shares. Particularly high volume was seen for the $20 strike put option expiring January 17, 2025, with 16,031 contracts trading so far today, representing approximately 1.6 million underlying shares of UAL. Below is a chart showing UAL's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for ABBV options, FCX options, or UAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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 $140 strike call option expiring September 30, 2022, with 4,969 contracts trading so far today, representing approximately 496,900 underlying shares of ABBV. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 40,982 contracts has been traded thus far today, a contract volume which is representative of approximately 4.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 74.4% of ABBV's average daily trading volume over the past month, of 5.5 million shares. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 40,982 contracts has been traded thus far today, a contract volume which is representative of approximately 4.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange: Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 120,554 contracts thus far today. That number works out to 74.4% of ABBV's average daily trading volume over the past month, of 5.5 million shares. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 40,982 contracts has been traded thus far today, a contract volume which is representative of approximately 4.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 74.4% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $140 strike call option expiring September 30, 2022, with 4,969 contracts trading so far today, representing approximately 496,900 underlying shares of ABBV. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 40,982 contracts has been traded thus far today, a contract volume which is representative of approximately 4.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 74.4% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $140 strike call option expiring September 30, 2022, with 4,969 contracts trading so far today, representing approximately 496,900 underlying shares of ABBV. |
23099.0 | 2022-09-30 00:00:00 UTC | Where Will AbbVie Be in 3 Years? | ABBV | https://www.nasdaq.com/articles/where-will-abbvie-be-in-3-years | nan | nan | In spite of market turmoil, this year has been bright so far for AbbVie (NYSE: ABBV). The stock defied the bear market -- and even gained more than 6%.
The company's star drug Humira continues to grow, and even reached the milestone of more than $20 billion in sales last year. Its other immunology drugs and the neuroscience business also are thriving.
However, there's one big problem on the horizon for AbbVie: Humira is set to face competition, as of next year. AbbVie hasn't yet forecast future sales for Humira, but it's clear declines are ahead. Considering this, where will AbbVie be in about three years? Let's find out.
The situation today
First, let's take a look at AbbVie's current situation. The company's top product -- and the world's best-selling drug -- is Humira. The treatment is used for a variety of conditions, including rheumatoid arthritis and Crohn's disease. Last year, Humira accounted for more than 36% of AbbVie's total revenue.
Still, AbbVie has plenty of other products to depend on. And about a dozen are blockbusters. The company sells treatments in areas of immunology, oncology, neuroscience, aesthetics, and eye care. In the most recent quarter, both the immunology and the neuroscience businesses grew sales in the double digits.
Now let's take a look at a few elements that will offer us clues about AbbVie's situation in three years. Humira already faces competition in other markets outside of the U.S. In the second quarter, Humira's international revenue fell more than 13%, due to this competition.
Each market is different, so it's impossible to pinpoint exactly how much Humira sales will fall in the U.S. But as mentioned above, we should be prepared for some declines.
At the same time, AbbVie's immunology drugs Rinvoq and Skyrizi are growing. In fact, they're growing so much that the company predicts their peak sales together will beat Humira's peak sales. And in 2025, AbbVie expects Rinvoq's and Skyrizi's combined sales to reach $15 billion, FiercePharma reported.
AbbVie is working toward the approval of Rinvoq and/or Skyrizi for all of Humira's major indications -- with the addition of atopic dermatitis.
Double-digit growth
AbbVie's neuroscience business includes drugs such as Qulipta for migraine and Vraylar for bipolar disorder. They've seen double-digit growth from quarter to quarter recently. And AbbVie is aiming for approvals in Qulipta for chronic migraine and Vraylar in major depressive disorder. That would expand revenue opportunities for those drugs.
Aesthetics also may continue to thrive. The global facial-aesthetics market, at a compound annual growth rate of 15%, is expected to reach more than $25 billion by 2031, according to Allied Market Research. And AbbVie sells two of the top brands: Botox and Juvederm.
Recently, Juvederm filler revenue slipped due to a few factors -- coronavirus restrictions in China, the halt of aesthetics operations in Russia, and a difficult-to-beat year-earlier quarter. Eventually, the situation in China will improve. And AbbVie plans two filler launches in the U.S. this year that should boost sales over the long term.
It's also important to remember that AbbVie has more than 40 candidates in the pipeline, and that's counting only new molecules. Marketed products, including some I've mentioned above, are involved in clinical studies for additional indications. About 20 candidates are in the phase 3 stage or already submitted to regulators. If even a few make it to approval, this could offer AbbVie's revenue a big boost.
The top prescription-drug company
Even with the loss of Humira's exclusivity, AbbVie may have many exciting chapters left in its story. In fact, AbbVie is set to become the top company, based on prescription-drug market share, by 2026, according to Evaluate.
What does this mean for you as an investor? In spite of AbbVie's gains this year, the stock still looks cheap. It's trading at only 10 times forward earnings estimates. That's compared to an average of about 24 for the pharmaceutical industry.
Investors who buy at this level -- or who already hold AbbVie shares -- may not regret their investment. AbbVie's pipeline and current blockbusters could keep this company growing in three years -- and beyond.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is working toward the approval of Rinvoq and/or Skyrizi for all of Humira's major indications -- with the addition of atopic dermatitis. Double-digit growth AbbVie's neuroscience business includes drugs such as Qulipta for migraine and Vraylar for bipolar disorder. In spite of market turmoil, this year has been bright so far for AbbVie (NYSE: ABBV). | At the same time, AbbVie's immunology drugs Rinvoq and Skyrizi are growing. And in 2025, AbbVie expects Rinvoq's and Skyrizi's combined sales to reach $15 billion, FiercePharma reported. Double-digit growth AbbVie's neuroscience business includes drugs such as Qulipta for migraine and Vraylar for bipolar disorder. | Last year, Humira accounted for more than 36% of AbbVie's total revenue. In spite of AbbVie's gains this year, the stock still looks cheap. AbbVie's pipeline and current blockbusters could keep this company growing in three years -- and beyond. | At the same time, AbbVie's immunology drugs Rinvoq and Skyrizi are growing. AbbVie's pipeline and current blockbusters could keep this company growing in three years -- and beyond. In spite of market turmoil, this year has been bright so far for AbbVie (NYSE: ABBV). |
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