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23100.0 | 2022-09-29 00:00:00 UTC | Noteworthy ETF Inflows: XLV, ABBV, MDT, ELV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-xlv-abbv-mdt-elv | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $179.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 300,370,000 to 301,820,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Medtronic PLC (Symbol: MDT) is down about 1.1%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. 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 $122.29. 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 down about 1.1%, Medtronic PLC (Symbol: MDT) is down about 1.1%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $179.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 300,370,000 to 301,820,000). 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 1.1%, Medtronic PLC (Symbol: MDT) is down about 1.1%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. 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 $122.29. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Medtronic PLC (Symbol: MDT) is down about 1.1%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $179.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 300,370,000 to 301,820,000). 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 $122.29. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is down about 1.1%, Medtronic PLC (Symbol: MDT) is down about 1.1%, and Elevance Health Inc (Symbol: ELV) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $179.6 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 300,370,000 to 301,820,000). 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 $122.29. |
23101.0 | 2022-09-28 00:00:00 UTC | Where to Invest $10,000 Right Now | ABBV | https://www.nasdaq.com/articles/where-to-invest-%2410000-right-now | nan | nan | It isn't an easy market for investors right now. Prolonged periods of volatility along with dips near or even into bear market territory have become commonplace for investors in recent months as fears of a looming recession, geopolitical headwinds, and ongoing concerns about the global economy continue to remain front of mind.
While it's true that share prices may remain depressed across sectors for the forseeable future, great businesses will come out on top in the end. For investors who have the capital to put to work right now, even a market like the one we're seeing presents its own share of opportunities to invest in these types of compelling companies at a bargain.
If you have $10,000 to invest in the stock market right now, here are two fantastic companies to consider for at least a portion of that investment.
1. AbbVie
Healthcare stocks had quite the heyday in the early pandemic, when investors were rushing to put their cash into any and all companies in this space. Now, it seems that investor sentiment has largely returned to its previous position, viewing healthcare stocks as a somewhat boring place to put capital to work. Nothing could be further from the truth.
AbbVie (NYSE: ABBV) is a prime example of a healthcare stock you can buy and hold for years. The company's extensive portfolio spans an impressive range of products that address health concerns from immunological disorders and blood cancers to neurological disorders and eye diseases. One of its most well-known products is the world's top-selling medication, Humira.
As sales of Humira give way to generic competition both domestically and abroad as the drug loses U.S. patent exclusivity in 2023, AbbVie has plenty of other products to fall back on. Among them is Botox, which AbbVie welcomed into the fold when it acquired Allergan in 2020, and which brought in total net revenues of $1.4 billion in the second quarter of this year alone.
AbbVie's diverse business model has lent itself to both steady growth and profits. The company reported total net revenue of $14.6 billion in the three-month period, a 5% boost from the same quarter of the prior year, with net earnings of $928 million, a 21% year-over-year increase.
Another significant reason for investors to consider this stock is its dividend, which currently yields just shy of 4%. Not only is AbbVie a Dividend King, but its consistent dividend and share price growth has resulted in the stock delivering a total return of 40% over the past year alone. Bear in mind, the S&P 500 has declined about 16% in that same period.
2. Home Depot
While Home Depot (NYSE: HD) has largely followed the trajectory of the market over the past year, you'd be remiss to overlook this solid value stock and dividend payer. The stock boasts a current yield of 2.9%, and has continued to steadily increase its dividend over the years, including in the current market environment. In fact, Home Depot has boosted its dividend by about 40% over the past three years alone, and by more than 555% over the last decade.
As if its juicy dividend weren't enough to get investors on board, the company's diverse business model and strong customer loyalty are also compelling reasons to consider the stock for a long-term investment.
While people may be spending less money on home improvements than they were earlier in the pandemic, particularly as many seek to tighten their belts with the current state of inflation and the economy, Home Depot remains a mainstay for a wide range of customer needs.
In the most recent quarter, Home Depot reported its highest-ever earnings and sales to date. Sales rose 7% year over year to $43.8 billion, net earnings increased 8%, and diluted earnings per share jumped 12%.
From appliances and paint to electronics and tools, Home Depot is a go-to for everyone from individual shoppers to contractors to builders. This gives it tremendous staying power even as consumer spending habits may fluctuate in the months ahead.
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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. | As sales of Humira give way to generic competition both domestically and abroad as the drug loses U.S. patent exclusivity in 2023, AbbVie has plenty of other products to fall back on. AbbVie Healthcare stocks had quite the heyday in the early pandemic, when investors were rushing to put their cash into any and all companies in this space. AbbVie (NYSE: ABBV) is a prime example of a healthcare stock you can buy and hold for years. | AbbVie Healthcare stocks had quite the heyday in the early pandemic, when investors were rushing to put their cash into any and all companies in this space. AbbVie (NYSE: ABBV) is a prime example of a healthcare stock you can buy and hold for years. As sales of Humira give way to generic competition both domestically and abroad as the drug loses U.S. patent exclusivity in 2023, AbbVie has plenty of other products to fall back on. | Not only is AbbVie a Dividend King, but its consistent dividend and share price growth has resulted in the stock delivering a total return of 40% over the past year alone. AbbVie Healthcare stocks had quite the heyday in the early pandemic, when investors were rushing to put their cash into any and all companies in this space. AbbVie (NYSE: ABBV) is a prime example of a healthcare stock you can buy and hold for years. | Not only is AbbVie a Dividend King, but its consistent dividend and share price growth has resulted in the stock delivering a total return of 40% over the past year alone. AbbVie Healthcare stocks had quite the heyday in the early pandemic, when investors were rushing to put their cash into any and all companies in this space. AbbVie (NYSE: ABBV) is a prime example of a healthcare stock you can buy and hold for years. |
23102.0 | 2022-09-27 00:00:00 UTC | 2 High-Yielding Dividend Stocks That Could Raise Their Payouts in October | ABBV | https://www.nasdaq.com/articles/2-high-yielding-dividend-stocks-that-could-raise-their-payouts-in-october | nan | nan | An increase in a quarterly dividend payment is something all income investors love to hear about. That's because it means they're collecting more money from their investments. For example, if a stock were to increase its dividend by 3% each year, it would amount to an increase of over 34% over a 10-year period, thanks to compounding.
That compounding growth is part of what makes dividend-bearing stocks great options for long-term investors. Two stocks that have been raising their payouts for decades are AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). And both of these companies have real potential to announce their next rate hikes in October. Let's find out a bit more about these two dividend stocks.
1. AbbVie
Drugmaker AbbVie pays a high dividend yield of around 4% per year. That's a great payout when you consider the S&P 500 averages a yield of only 1.8%.
What's more, AbbVie is a Dividend King and has raised its payouts annually for 50 consecutive years. In October 2021, the company last announced a rate hike (which would be in effect for the following year). That increase was an 8.5% bump up for the dividend, raising it to $1.41 per share per quarter.
The company's resilient business makes it a top stock to own whether you're a dividend or growth-oriented investor. Through the first six months of this year, AbbVie's sales totaled $28.1 billion and increased 4.3% year over year. Its immunology drugs (Humira, Skyrizi, and Rinvoq) accounted for close to half of that tally, bringing in $13.3 billion all on their own.
AbbVie also has other segments to help diversify its business, including aesthetics, neuroscience, and hematologic oncology. Over the past four quarters, the company's free cash flow has totaled $22.2 billion, leaving plenty of room to cover its dividend payments ($9.7 billion during that time frame), suggesting that more rate hikes are likely to happen.
AbbVie is a solid long-term buy, and its shares are up 4% this year, broadly outperforming the S&P 500, which is down by 23%. News of a dividend increase in October could bolster the stock higher, especially if AbbVie also reports some solid quarterly results. (Last year, it announced both the results and the dividend hike at the same time.)
There's no real incentive to wait until after the announcement as this is a solid dividend stock all around. If you're going to buy AbbVie shares, now is as good a time as any to do so.
2. ExxonMobil
There have been doubts in recent years as to whether oil and gas giant ExxonMobil would continue increasing its dividend payments. Low oil prices due to the pandemic led to some challenging results for the oil and gas producer, and its payout ratio went haywire:
XOM Payout Ratio data by YCharts.
The company didn't raise its quarterly payments in 2020, but Exxon still paid more in dividends than it did in the previous year ($3.48 per share versus $3.43). In 2021, it waited until the last quarter of the year to raise its payouts, and when it did, it was by $0.01.
This time around, Exxon's business is in much better shape because even though oil prices have been declining in recent months, they're still higher than where they were in recent years. Generating more than $49 billion in free cash flow over the past 12 months, Exxon has brought in far more cash than it has needed to cover its dividend payments (less than $15 billion) during that time frame.
Last year, the company announced an increase to its dividend on Oct. 27, 2021, to keep its status going as a Dividend Aristocrat. It technically doesn't need to raise its dividend right now to keep that streak going. And prior to the pandemic, its dividend hikes came into effect in the second quarter, rather than the fourth quarter. But given the strong year it has been having in 2022, Exxon may announce an increase in October and get back to doing more consistent rate hikes now that oil prices seem to be more stable and the economy is returning to normal.
Exxon's 4.1% yield looks solid right now. With the stock price falling in recent weeks (thanks to a drop in oil prices), now may be an opportune time to buy the stock -- before a possible rate hike and the release of the company's earnings numbers. These should remain strong. (Last year, it released its third-quarter numbers just days after the dividend announcement.)
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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. | News of a dividend increase in October could bolster the stock higher, especially if AbbVie also reports some solid quarterly results. Two stocks that have been raising their payouts for decades are AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie pays a high dividend yield of around 4% per year. | Through the first six months of this year, AbbVie's sales totaled $28.1 billion and increased 4.3% year over year. Two stocks that have been raising their payouts for decades are AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie pays a high dividend yield of around 4% per year. | Through the first six months of this year, AbbVie's sales totaled $28.1 billion and increased 4.3% year over year. Two stocks that have been raising their payouts for decades are AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie pays a high dividend yield of around 4% per year. | Two stocks that have been raising their payouts for decades are AbbVie (NYSE: ABBV) and ExxonMobil (NYSE: XOM). AbbVie Drugmaker AbbVie pays a high dividend yield of around 4% per year. What's more, AbbVie is a Dividend King and has raised its payouts annually for 50 consecutive years. |
23103.0 | 2022-09-27 00:00:00 UTC | Is Loading Up on Passive Income Stocks Right Now a Good Idea? | ABBV | https://www.nasdaq.com/articles/is-loading-up-on-passive-income-stocks-right-now-a-good-idea | nan | nan | Many investors dream of building a portfolio that delivers significant passive income. If you invest your funds carefully, that dream is always within reach, and now's a very tempting time to make progress toward it.
With a bear market in full swing, there are undoubtedly more buying opportunities as stocks look seemingly cheaper than they were a few months ago. But not every dividend stock will make for a solid passive cash-flow source a decade from now. Let's delve into a few arguments in favor of loading up on passive income stocks right now and a few in favor of holding off. That way you'll get a feel for where to allocate your money that'll deliver optimum, risk-adjusted returns.
Yields are high and might rise further
One big argument in favor of buying passive income stocks right now is investors will be able to lock in more income for each invested dollar than before. As share prices fall, dividend yields rise. It's simple math: Unless the per-share value of the dividend is cut, falling stock prices mean a higher payout in proportion to the share price.
Take the cannabis real estate investment trust (REIT) AFC Gamma (NASDAQ: AFCG) for example. It writes real estate-backed loans to marijuana businesses that need to raise cash but can't do so through traditional financial institutions due to legal constraints. The REIT then collects interest payments on these long-term loans, finding its margin from the difference between the rate it can borrow at and the rate at which it lends to its clients.
At the moment, its forward dividend yield is above 13.3%, which is 28% higher compared to the start of 2022. Of course, its share price is down by around 28% in that period, and it could fall further depending on the market's sentiment about the cannabis industry, REITs, and the company's ability to raise and deploy capital given rising costs of borrowing. And that's not even considering the possible impact of the business's critical internal processes, like picking which cannabis operators to write loans to.
If you purchase a bunch of AFC Gamma shares today, you'll be getting an exquisitely high yield even if its share price falls further. It'd only take an investment of just over $7,500 to generate $1,000 in annual passive income, which is hard to beat. Plus, if you're concerned about missing out on even higher yields as the bear market continues, you could always stagger your purchases over a few months. So on the surface, it looks like investors should be getting shares of high-yield passive income stocks while the getting's good.
Economic and monetary headwinds are significant risks
Despite the attractiveness of high yields right now, getting higher yields compared to yesterday isn't very helpful if your companies end up slashing their dividends for whatever reason. Rather than prioritizing investments based on their dividend yield alone, investors should instead consider whether a company's dividend payments are going to be sustainable over time. And in today's economy, there are a plethora of threats to dividends that should give investors pause.
First, interest rates are rising, so businesses will incur higher interest expenses when they borrow money. That could be especially burdensome to REITs, thereby making an entire category of traditional passive income stocks far more hazardous than under normal conditions regardless of their high dividend yields. Second, there are swirling winds of a global recession brewing. If such a recession ends up happening and it dents demand for products, it could jeopardize dividends from consumer discretionary and industrial businesses too. Third, there's a lot of bizarre activity in the commodities markets, which also confers additional risk to the payouts of many manufacturing and manufacturing-adjacent companies.
Thankfully not all dividend payers are exposed to higher-than-normal levels of risk. In particular, profitable and growing pharmaceutical businesses like AbbVie (NYSE: ABBV) are likely to be resilient in the face of the current set of headwinds. As AbbVie generated nearly $22 billion in free cash flow (FCF) in 2021 while paying only around $9.2 billion in dividends, it's clear that there's plenty of room to keep distributing capital to shareholders even if it continues to hike its payout on a yearly basis. It doesn't need to borrow money to fund its development of new medicines, nor will demand for its medicines contract if the economy goes into a recession, as medicine is a high priority for people to buy even if they're facing financial difficulty; nor is it exposed to significant risk from commodities.
The catch is that AbbVie's forward dividend yield is "only" around 4%. That means you'd need to invest a cool $25,000 to get the same $1,000 of annual dividend income as you'd get with a much smaller investment in AFC Gamma. Nonetheless, the chances of the company cutting its dividend in the near term are low, and that makes it a safer option.
Therefore, investors should seriously consider buying shares of high-quality passive income stocks like AbbVie whose distributions are secure in light of the economic headwinds that they can reasonably expect to encounter. When it comes to higher-yielding but higher-risk stocks like AFC Gamma, it could still be worth picking up a few shares too. Just don't bet the farm on them 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. | Therefore, investors should seriously consider buying shares of high-quality passive income stocks like AbbVie whose distributions are secure in light of the economic headwinds that they can reasonably expect to encounter. In particular, profitable and growing pharmaceutical businesses like AbbVie (NYSE: ABBV) are likely to be resilient in the face of the current set of headwinds. As AbbVie generated nearly $22 billion in free cash flow (FCF) in 2021 while paying only around $9.2 billion in dividends, it's clear that there's plenty of room to keep distributing capital to shareholders even if it continues to hike its payout on a yearly basis. | In particular, profitable and growing pharmaceutical businesses like AbbVie (NYSE: ABBV) are likely to be resilient in the face of the current set of headwinds. As AbbVie generated nearly $22 billion in free cash flow (FCF) in 2021 while paying only around $9.2 billion in dividends, it's clear that there's plenty of room to keep distributing capital to shareholders even if it continues to hike its payout on a yearly basis. The catch is that AbbVie's forward dividend yield is "only" around 4%. | In particular, profitable and growing pharmaceutical businesses like AbbVie (NYSE: ABBV) are likely to be resilient in the face of the current set of headwinds. As AbbVie generated nearly $22 billion in free cash flow (FCF) in 2021 while paying only around $9.2 billion in dividends, it's clear that there's plenty of room to keep distributing capital to shareholders even if it continues to hike its payout on a yearly basis. The catch is that AbbVie's forward dividend yield is "only" around 4%. | In particular, profitable and growing pharmaceutical businesses like AbbVie (NYSE: ABBV) are likely to be resilient in the face of the current set of headwinds. As AbbVie generated nearly $22 billion in free cash flow (FCF) in 2021 while paying only around $9.2 billion in dividends, it's clear that there's plenty of room to keep distributing capital to shareholders even if it continues to hike its payout on a yearly basis. The catch is that AbbVie's forward dividend yield is "only" around 4%. |
23104.0 | 2022-09-27 00:00:00 UTC | Is iShares Core High Dividend ETF (HDV) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-ishares-core-high-dividend-etf-hdv-a-strong-etf-right-now-4 | nan | nan | The iShares Core High Dividend ETF (HDV) made its debut on 03/29/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $11.51 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. HDV is managed by Blackrock. This particular fund, before fees and expenses, seeks to match the performance of the Morningstar Dividend Yield Focus Index.
The Morningstar Dividend Yield Focus Index offers exposure to high quality U.S. domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.08%.
The fund has a 12-month trailing dividend yield of 3.92%.
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.
Representing 23.70% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Energy and Consumer Staples round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV).
HDV's top 10 holdings account for about 36.64% of its total assets under management.
Performance and Risk
Year-to-date, the iShares Core High Dividend ETF has lost about -6.08% so far, and was up about 1.60% over the last 12 months (as of 09/27/2022). HDV has traded between $92.47 and $109.92 in this past 52-week period.
The fund has a beta of 0.80 and standard deviation of 22.56% for the trailing three-year period, which makes HDV a medium risk choice in this particular space. With about 81 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $47.62 billion in assets, Vanguard Value ETF has $90.57 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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iShares Core High Dividend ETF (HDV): ETF Research Reports
Johnson & Johnson (JNJ): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
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Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report The iShares Core High Dividend ETF (HDV) made its debut on 03/29/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Alternatives IShares Core High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report The iShares Core High Dividend ETF (HDV) made its debut on 03/29/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.15% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Abbvie Inc (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report The iShares Core High Dividend ETF (HDV) made its debut on 03/29/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. |
23105.0 | 2022-09-26 00:00:00 UTC | AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-dips-more-than-broader-markets%3A-what-you-should-know-0 | nan | nan | AbbVie (ABBV) closed at $141.21 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Prior to today's trading, shares of the drugmaker had gained 4.92% over the past month. This has outpaced the Medical sector's loss of 6.55% and the S&P 500's loss of 10.4% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $3.59, up 7.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.05 billion, up 4.95% from the prior-year quarter.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $59.22 billion. These results would represent year-over-year changes of +9.37% and +5.37%, respectively.
It is also important to note the recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 10.3. For comparison, its industry has an average Forward P/E of 12.19, which means AbbVie is trading at a discount to the group.
We can also see that ABBV currently has a PEG ratio of 4.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $141.21 in the latest trading session, marking a -1.29% move from the prior day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $59.22 billion. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | AbbVie (ABBV) closed at $141.21 in the latest trading session, marking a -1.29% move from the prior day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $59.22 billion. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $59.22 billion. AbbVie (ABBV) closed at $141.21 in the latest trading session, marking a -1.29% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | AbbVie (ABBV) closed at $141.21 in the latest trading session, marking a -1.29% move from the prior day. AbbVie Inc. (ABBV): Free Stock Analysis Report Investors will be hoping for strength from AbbVie as it approaches its next earnings release. |
23106.0 | 2022-09-26 00:00:00 UTC | Good Stocks To Buy Right Now? 4 Healthcare Stocks To Know | ABBV | https://www.nasdaq.com/articles/good-stocks-to-buy-right-now-4-healthcare-stocks-to-know | nan | nan | Healthcare stocks have been on the rise in recent years, as investors have become more interested in the sector. Healthcare stocks are typically seen as defensive investments, as they tend to perform well even during periods of economic uncertainty. Furthermore, the aging population is expected to drive continued growth in the healthcare sector, making it an attractive investment option for long-term stock market investors.
In addition, healthcare stocks also offer a high degree of stability, as they are less likely to be affected by short-term economic fluctuations. As a result, Healthcare stocks offer investors an appealing mix of defensive qualities and long-term growth potential. If this has you keen on investing in healthcare right now, here are four trending healthcare stocks to watch in the stock market today.
Healthcare Stocks To Buy [Or Sell] Right Now
UnitedHealth Group Inc. (NYSE: UNH)
Merck & Company Inc. (NYSE: MRK)
AbbVie Inc. (NYSE: ABBV)
CVS Health Corporation (NYSE: CVS)
1. UnitedHealth Group (UNH Stock)
Kicking off our list of healthcare stocks today, let’s look at UnitedHealth Group (UNH). In short, UnitedHealth Group is a United States-based health care company. The company operates through two main business segments: UnitedHealthcare and Optum. Additionally, UNH offers a diversified portfolio of products and services to the health care industry. This includes products and services such as; insurance plans, health care products and services, information and technology products and services, and consulting services. Today, UnitedHealth Group offers its shareholders an annual dividend yield of 1.22%.
UNH Recent Stock News
Just this month, the company announced it will report its third quarter 2022 financial results. Specifically, UnitedHealth Group is set to announce its results on Friday, October 14, 2022, before the opening bell. In the meantime, let’s recap how UNH performed in Q2 2022.
Back in July, UnitedHealth Group reported second-quarter 2022 earnings of $5.57 per share and revenue of $80.3 billion. This came in better than analysts estimated for the 2nd quarter of 2022, which was earnings of $5.24 per share and revenue of $79.7 billion.
What’s interesting, is to see if the company provides a revised outlook on its estimated full-year 2022 results. In the second quarter release, UNH said it expects full-year 2022 earnings of $21.40 to $21.90 per share. Additionally, Andrew Witty, CEO of UnitedHealth Group said this about their performance in Q2 2022, “Customers are responding as we build on our five growth pillars, enabling us to move into the second half of 2022 with strong momentum serving ever more people more deeply.”
UNH Stock Chart
Separate from that, shares of UNH stock are green on the year so far up 1.55%. As of Monday’s afternoon trading session, UnitedHealth Group stock is trading at $509.87 per share. Given UNH’s strong track record, and Q3 earnings on deck, do you think now is a good time to keep UNH stock on your watchlist right now?
Source: TD Ameritrade TOS
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2. Merck & Co. (MRK Stock)
Next, let’s move our attention over to Merck & Co. (MRK). In brief, Merck & Company is an American pharmaceutical company. To start, the company’s pharmaceutical products are used to treat several conditions in a number of therapeutic areas. This includes cardiometabolic disease, cancer, and infections. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. In addition, MRK currently has an annual dividend yield of 3.20% for shareholders.
MRK Recent Stock News
Just last week, the company’s Merck Animal Health announced they will be acquiring privately-held company Venice. Venice is a leader in virtual fencing technology. Specifically for the use cases of rotational grazing and livestock management. What’s more, Venice’s platform allows its customers from a desktop or smartphone the ability to manage cattle movement and simplify rotational grazing. Essentially, Venice’s platform enables producers and ranchers to help manage inventory, all while cutting costs of labor and fencing materials. Meanwhile, the transaction is set to be completed in the third quarter of 2022.
Rick DeLuca, president, of Merck Animal Health, said this about the acquisition, “The acquisition of Vence will broaden our portfolio with complementary products and technologies to advance animal health and well-being as well as outcomes for our customers. Vence is a natural fit with Merck Animal Health’s growing portfolio of animal intelligence products that include identification, traceability and monitoring products. This new technology will give cow-calf producers the ability to track their cattle and the ability to move them from pasture to pasture.“
MRK Stock Chart
Moving along, so far in 2022 shares of MRK stock have advanced over 12%. During Monday’s afternoon trading session, MRK stock is trading at $86.15 per share. With this being said, do you think it’s the right time to add MRK to your list of healthcare stocks to watch in the stock market now?
Source: TD Ameritrade TOS
3. AbbVie (ABBV Stock)
Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). The company focuses its efforts on a broad range of therapeutic areas. This entails areas like; immunology, oncology, neuroscience, eye care, virology, women’s health, and gastroenterology.
ABBV Recent Stock News
Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. In detail, the cash dividend is payable on November 15, 2022, to stockholders of record at the close of business on October 14, 2022.
What’s more, since AbbVie’s inception in 2013, the company has increased its dividend by greater than 250&, while increasing its annual dividend for 25 straight years. Currently, AbbVie is a member of the S&P Dividend Aristocrats Index and has an annual dividend yield of 3.98%.
ABBV Stock Chart
Shares of ABBV stock are outperforming the broader markets so far in 2022. ABBV stock is up over 4% year-to-date and is trading on Monday afternoon at $141.68 per share. With this in mind, do you think now could be a good time to add ABBV stock to your long-term portfolio?
Source: TD Ameritrade TOS
[Read More] Best Stocks To Buy Now In 2022? 4 Dividend Stocks For Your Watchlist
4. CVS Health (CVS Stock)
Rounding off the list, CVS Health Corporation (CVS) is an American healthcare company. In detail, The company owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, as well as many other brands. For a sense of scale, CVS currently has over 9,700 CVS pharmacy locations throughout the United States as of September 19, 2022. What’s more, currently CVS shareholders enjoy an annual dividend yield from the company of 2.25%.
CVS Recent Stock News
In August, CVS Health announced stronger-than-expected second-quarter 2022 financial results. In the report, CVS announced earnings of $2.40 per share and revenue of $80.6 billion for Q2 2022. Wall street’s earnings estimate was $2.16 per share and revenue estimates of $76.4 billion. Separate from that, CVS also announced its forecast for its 2022 full-year fiscal earnings. The company said it estimates full-year 2022 earnings of $8.40 to $8.60 per share.
Furthermore, Karen S. Lynch, CVS Health President, and CEO said this about the quarter’s performance, “Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments. The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care.“
CVS Stock Chart
During Monday’s afternoon trading action, CVS stock is trading at $97.94 per share. Meanwhile, with shares of CVS Health stock down approximately 5.98% year-to-date, will you be keeping an eye on CVS stock today?
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. | ABBV Recent Stock News Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. Healthcare Stocks To Buy [Or Sell] Right Now UnitedHealth Group Inc. (NYSE: UNH) Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) CVS Health Corporation (NYSE: CVS) 1. AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). | Healthcare Stocks To Buy [Or Sell] Right Now UnitedHealth Group Inc. (NYSE: UNH) Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) CVS Health Corporation (NYSE: CVS) 1. AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). ABBV Recent Stock News Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. | Healthcare Stocks To Buy [Or Sell] Right Now UnitedHealth Group Inc. (NYSE: UNH) Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) CVS Health Corporation (NYSE: CVS) 1. AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). ABBV Recent Stock News Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. | Healthcare Stocks To Buy [Or Sell] Right Now UnitedHealth Group Inc. (NYSE: UNH) Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) CVS Health Corporation (NYSE: CVS) 1. AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). ABBV Recent Stock News Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. |
23107.0 | 2022-09-24 00:00:00 UTC | Is AbbVie a Buy? | ABBV | https://www.nasdaq.com/articles/is-abbvie-a-buy | nan | nan | Drugmaker AbbVie (NYSE: ABBV) is one of the largest healthcare stocks in the world, with a market cap of over $250 billion. It pays a reasonably high dividend yield and has products in a wide range of therapeutic areas, including eye care, neuroscience, immunology, and oncology. It also owns Botox through its $63 billion acquisition of Allergan in 2020.
But shares of the company have been falling in recent months -- down 18% since hitting all-time highs last April. Is the healthcare company a good buy on this dip in price, or should investors be worried about it falling even further in value?
How well is the business doing today?
AbbVie last reported its earnings in July. For the period ending June 30, the company's net revenue of $14.6 billion rose 4.5% year over year. Fast-growing immunology products Skyrizi and Rinvoq generated sales growth in excess of 55% and are key parts of the company's future growth; management has previously forecast that combined, they will reach higher peak annual sales than top-selling drug Humira, which is losing patent protection next year. Humira remains key to AbbVie's business for now, generating $5.4 billion this past quarter, nearly three times the $1.8 billion Skyrizi and Rinvoq generated.
The company also has its Botox business, which it acquired from Allergan a few years ago, that can drive more growth. Despite inflation, demand for that looks to be strong as Botox cosmetic sales of $695 million during the quarter rose 19% year over year. And with the economy returning to normal, those sales may rise even more.
This year, AbbVie is forecasting that its adjusted diluted per-share earnings will be between $13.78 and $13.98, which at the midpoint represents a 9.3% increase from the $12.7 adjusted earnings per share it reported in 2021.
Over the trailing 12 months, the company has generated a profit of $12.6 billion on sales of $57.3 billion. The business has also accumulated an impressive $22.2 billion in free cash flow during that time frame. That leaves plenty of room for it to pursue growth opportunities while still paying (and potentially increasing) its dividend, which AbbVie spent $9.7 billion on in the past year.
AbbVie's dividend is likely to increase over the years
One of the most attractive features about AbbVie's stock is that it offers investors a high dividend yield. At just under 4%, it pays more than double the S&P 500 (1.7%). If you wanted to collect $1,000 in dividends from AbbVie's stock over the course of a year, you would need to invest roughly $25,000 into the business. But there's even more incentive for you if you plan to buy and hold, because AbbVie is a Dividend King and it has more than doubled its payouts in just five years. That's better than other dividend growth stocks, including pharma peers Johnson & Johnson and Abbott Laboratories:
Data by YCharts.
Is AbbVie stock cheap?
Despite the positive results, shares of AbbVie have been falling in recent months, but overall, the stock remains up around 4%. Although that's modest, it's better than the S&P 500, which is down a whopping 19% this year. As a result, AbbVie's valuation hasn't changed significantly, and it's currently trading at 20 times its earnings.
Data by YCharts.
Compared to some of its peers in the healthcare industry, AbbVie doesn't look like a cheap buy, but its valuation does appear to be fair.
Should you buy AbbVie's stock today?
AbbVie is showing strength and versatility even at a time when other businesses are struggling. It's a positive sign for investors and demonstrates why this is a safe stock to buy and hold for years. With a broad mix of products and a top dividend, this can be a suitable investment for investors who value both dividends and growth.
Although there is some risk that AbbVie's sales could drop as Humira loses patent protection, its business is robust. With significant cash flow coming in, the company has the resources to pursue more growth opportunities. Overall, this is a solid stock that you can buy and forget about.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Merck & Co. The Motley Fool recommends Amgen and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That leaves plenty of room for it to pursue growth opportunities while still paying (and potentially increasing) its dividend, which AbbVie spent $9.7 billion on in the past year. Drugmaker AbbVie (NYSE: ABBV) is one of the largest healthcare stocks in the world, with a market cap of over $250 billion. AbbVie last reported its earnings in July. | Humira remains key to AbbVie's business for now, generating $5.4 billion this past quarter, nearly three times the $1.8 billion Skyrizi and Rinvoq generated. Drugmaker AbbVie (NYSE: ABBV) is one of the largest healthcare stocks in the world, with a market cap of over $250 billion. AbbVie last reported its earnings in July. | That leaves plenty of room for it to pursue growth opportunities while still paying (and potentially increasing) its dividend, which AbbVie spent $9.7 billion on in the past year. AbbVie's dividend is likely to increase over the years One of the most attractive features about AbbVie's stock is that it offers investors a high dividend yield. If you wanted to collect $1,000 in dividends from AbbVie's stock over the course of a year, you would need to invest roughly $25,000 into the business. | Humira remains key to AbbVie's business for now, generating $5.4 billion this past quarter, nearly three times the $1.8 billion Skyrizi and Rinvoq generated. As a result, AbbVie's valuation hasn't changed significantly, and it's currently trading at 20 times its earnings. Drugmaker AbbVie (NYSE: ABBV) is one of the largest healthcare stocks in the world, with a market cap of over $250 billion. |
23108.0 | 2022-09-23 00:00:00 UTC | Got $1,000? 2 Stocks That Could Be Bargain Buys For 2022 and Beyond | ABBV | https://www.nasdaq.com/articles/got-%241000-2-stocks-that-could-be-bargain-buys-for-2022-and-beyond | nan | nan | As 2022 draws to a close, it is safe to say Wall Street won't remember this year fondly. Economic problems such as inflation, a persistent pandemic, and geopolitical tensions are some factors contributing to the broader market's poor performance this year. No one can predict when equities will recover, but when they do, it will pay to have skin in the game.
Buying undervalued stocks today could help investors beat the market in the next five years and beyond. Let's look at two biotech stocks that look attractive at current levels: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD).
ABBV data by YCharts.
1. AbbVie
AbbVie is one of the largest pharmaceutical companies around. It boasts a solid portfolio of drugs which includes Humira, a blockbuster rheumatoid arthritis medicine that was still the world's best-selling non-coronavirus pharmaceutical product last year.
Like other drugmakers, AbbVie benefits from the fact that doctors do not stop prescribing lifesaving drugs even during challenging economic times, nor do patients stop taking them. The company's financial results have remained afloat despite the marketwide headwinds we have witnessed over the past nine months.
In the second quarter, AbbVie's revenue increased by a decent 4.5% year over year to $14.6 billion. The company's earnings per share clocked in at $0.51, 21.4% higher than the prior-year period. Among those products leading the way for AbbVie were Skyrizi and Rinvoq, the two immunology drugs tasked with replacing Humira.
With a U.S. patent cliff fast approaching -- generic competition for Humira should start in the country sometime next year -- AbbVie's newer medicines will have to take up the torch.
During the second quarter, sales of Rinvoq increased by 56.3% year over year to $592 million. Skyrizi's revenue was $1.3 billion, 85.9% higher than the year-ago period. Humira's sales were $5.4 billion, an increase of 5.8% year over year. Both Skyrizi and Rinvoq are still targeting label expansions, and both have a long runway for growth ahead.
According to CEO Rick Gonzalez, AbbVie will have achieved "some level of stability on the tail of Humira" by the end of 2024. The company's revenue may suffer when generics first enter the market, but it will recover thanks to its immunology lineup and other products, including its Botox franchise.
AbbVie has performed a lot better than the broader market this year. However, the healthcare giant remains reasonably valued. AbbVie's forward price-to-earnings (P/E) ratio is 10.4, compared to the pharmaceutical industry's average of 12.5.
AbbVie is also an excellent dividend stock. The drugmaker currently offers a yield of 3.92%, along with a solid cash payout ratio of 43.5%. As a Dividend King, AbbVie will continue rewarding shareholders will payout increases. That's just one more reason this stock is attractive -- that is, in addition to its reasonable valuation and solid long-term prospects.
2. Gilead Sciences
Gilead Sciences hasn't performed as well as AbbVie recently. The company has encountered regulatory headwinds over the past couple of years that have prevented it from launching key products, and it has faced generic competition for some of its HIV medicines. The biotech has been able to keep revenue growing, if ever so slightly, thanks to its COVID-19 therapy Veklury.
However, the coronavirus landscape beyond this year is uncertain. Thankfully, Gilead Sciences isn't dead in the water. It is the leader in the HIV market, with solid market shares for some of its products. For instance, Biktarvy's share of the HIV treatment market in the U.S. jumped by 4% year over year to 44% in the second quarter.
It remains the leading HIV medicine in the country by a mile, as well as the fastest-growing. It's also worth noting that the pandemic led to lower prescriptions and patient starts in the HIV market, and as things pick back up, Gilead Sciences' products in this space will also perform better.
Further, the company isn't done innovating in the HIV space and elsewhere. In August, the company earned marketing approval for Sunlenca in Europe. Sunlenca is an HIV treatment administered only twice a year -- the first of its kind. Regulators in the U.S. initially declined to approve this product due to manufacturing issues.
But Gilead Sciences resubmitted an application after discussions with regulatory agencies, and it looks pretty likely to earn the green light in the country. Gilead Sciences has dozens of other programs in the pipeline, and these will help it strengthen its lineup over the years. The biotech is currently trading for an attractive forward P/E of 9.8.
Also, Gilead Sciences offers a dividend yield of 4.45% and a cash payout ratio of 38.9%, making it an excellent pick for income-oriented investors. Despite the issues it has encountered lately, Gilead Sciences is a solid stock to buy and hold through this year and beyond.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's look at two biotech stocks that look attractive at current levels: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). ABBV data by YCharts. AbbVie AbbVie is one of the largest pharmaceutical companies around. | Let's look at two biotech stocks that look attractive at current levels: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). ABBV data by YCharts. AbbVie AbbVie is one of the largest pharmaceutical companies around. | Let's look at two biotech stocks that look attractive at current levels: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). In the second quarter, AbbVie's revenue increased by a decent 4.5% year over year to $14.6 billion. Gilead Sciences Gilead Sciences hasn't performed as well as AbbVie recently. | Let's look at two biotech stocks that look attractive at current levels: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD). ABBV data by YCharts. AbbVie AbbVie is one of the largest pharmaceutical companies around. |
23109.0 | 2022-09-23 00:00:00 UTC | Medical device makers see little impact from Fiona on Puerto Rico operations | ABBV | https://www.nasdaq.com/articles/medical-device-makers-see-little-impact-from-fiona-on-puerto-rico-operations | nan | nan | By Leroy Leo and Khushi Mandowara
Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island.
The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies.
Most companies Reuters spoke to, including Baxter International BAX.N, said they had initially either temporarily halted operations or were running their plants on generators since Fiona struck on Sunday.
None said they expected supplies to the United States to be significantly disrupted by the storm, in part due to infrastructure changes, such as building up their generator power, following Hurricane Maria.
The electricity grid on the island is owned by bankrupt state-run Puerto Rico Electric Power Authority (PREPA) and is now operated by LUMA Energy, a private joint venture of Canadian energy firm ATCO Ltd ATCx.TO and U.S. energy contractor Quanta Services PWR.N.
While the pace of power restoration has been much faster than following the devastation of Maria, an estimated 1 million homes and businesses remain without power. Baxter, which makes small bags for intravenous medication, clinical nutrition products and inhaled anesthetics in Puerto Rico, said its facilities have "sustained little to no damage" from the storm.
By Thursday, Baxter had restarted operations and was running at normal, pre-hurricane levels, spokesperson Lauren Russ said.
The company took a $70 million revenue hit after Hurricane Maria in 2017, spurring it to diversify manufacturing of key products.
Ahead of hurricane season, the company now builds up supplies of some products and stores much of it on the U.S. mainland, Russ said, adding that Baxter had good inventory levels for most products produced in Puerto Rico and the Dominican Republic for U.S. customers.
Integra Lifesciences IART.O and Abbott Laboratories ABT.N also upgraded back-up generators and communication capabilities and shored up infrastructure at plants such as improvements to roofs and pipes, their spokespeople said.
"Most MedTech companies are more prepared with greater redundancy" than when Maria hit, J.P Morgan analyst Robbie Marcus in a research note.
Spokespeople for other medical equipment companies including Becton Dickinson BDX.N, Medtronic MDT.N, Edwards Lifesciences EW.N and Stryker SYK.N also said they were not seeing a major impact to operations from Hurricane Fiona due to measures undertaken following Maria.
Drugmakers with plants in Puerto Rico said they have been able to keep up production and supplies as well.
Johnson & Johnson JNJ.N said operations were restored at all its sites in Puerto Rico by Wednesday.
AbbVie's ABBV.N facilities are intact and operational and unlikely to see any patient impact or product shortages due to Fiona, according to a person familiar with the company's operations who asked not to be named.
Eli Lilly and Co LLY.N has not experienced any disruptions to its site or supply, spokesperson Molly McCully said.
(Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; additional reporting by Michael Erman; editing by Caroline Humer and Bill Berkrot)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's ABBV.N facilities are intact and operational and unlikely to see any patient impact or product shortages due to Fiona, according to a person familiar with the company's operations who asked not to be named. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. Baxter, which makes small bags for intravenous medication, clinical nutrition products and inhaled anesthetics in Puerto Rico, said its facilities have "sustained little to no damage" from the storm. | AbbVie's ABBV.N facilities are intact and operational and unlikely to see any patient impact or product shortages due to Fiona, according to a person familiar with the company's operations who asked not to be named. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies. | AbbVie's ABBV.N facilities are intact and operational and unlikely to see any patient impact or product shortages due to Fiona, according to a person familiar with the company's operations who asked not to be named. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies. | AbbVie's ABBV.N facilities are intact and operational and unlikely to see any patient impact or product shortages due to Fiona, according to a person familiar with the company's operations who asked not to be named. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies. |
23110.0 | 2022-09-23 00:00:00 UTC | Use These 3 Simple Tricks to Maximize Your Returns From AbbVie Stock | ABBV | https://www.nasdaq.com/articles/use-these-3-simple-tricks-to-maximize-your-returns-from-abbvie-stock | nan | nan | As one of the world's largest pharmaceutical companies, it's no surprise to hear that AbbVie (NYSE: ABBV) has plenty of moving parts for investors to think about when they're wondering what to do to make the most money from their shares. If you don't understand the factors that make the stock go up and how to make the best of them, there's a good chance that you'll be leaving money on the table.
And that's why you need to know three simple tricks to flourish as an AbbVie shareholder.
1. Plan your purchases around catalysts
AbbVie develops new medicines as its core business, and to make money from doing so, it needs to perform clinical trials to show regulators at the Food and Drug Administration (FDA) that its drugs are both safe and effective. And if you know to add to your position well in advance (or well after) important milestones, your returns could be significantly higher.
In short, the market reacts to new information, and people buy or sell the stock according to whether the new information implies positive or negative things about the company's future.
For example, if you buy shares right when everyone is hyped about some recently published clinical trial results, you'll be jumping on the bandwagon right when a ticket is the most expensive. On the other hand, if you build your position during the doldrums when there's nothing new on the horizon for months and months, your chances of paying the hype tax are much lower.
In contrast, buying shares right after AbbVie reports bad clinical trial results and its stock is dented might be a good idea, as it's likely that another set of results will eventually come along and erase the damage.
In terms of specific catalysts to invest on, it's best to take a look at the company's investor materials to see when management plans to report its clinical trial results and when it's expecting to hear back from regulators.
Next year, it could get the green light to launch as many as eight of its programs, some of which are new and some of which aim to expand the indications (and thus the addressable market) of its therapies that are already commercialized. It'll also report data from 10 of its late-stage clinical trials.
That's a total of 18 opportunities for enterprising investors to pick up a few more shares for either a quick return or to take advantage of a short-term setback. So don't let these chances pass you by if you're interested in adding to your shares.
2. Reinvest the dividend instead of spending it
Setting up a dividend reinvestment plan (DRIP) is one of the fastest and easiest tricks you can use to maximize your returns. Right now, AbbVie has a forward dividend yield of nearly 3.9%. Therefore, without a DRIP, you'll get around 3.9% of its current share price if you wait a year for the dividends to accumulate. If you then take that money and spend it, you'll start the following year with the same number of AbbVie shares as before.
But after setting up a DRIP, you'll be increasing your number of shares each year, which means that your initial investment will compound in value far faster than it would be doing otherwise. This makes perfect sense, as the total shareholder return from the stock includes both the gains from share price appreciation as well as the dividend payouts, so if you withdraw the payouts, your returns will be lower.
And if you opt to spend your passive income, you'll be missing out on the benefit of the dividend growth from the additional shares you'd have had, which bears a little more discussion in the next section.
3. Hold your shares for the long term
The final trick to getting the most out of your AbbVie shares is to refrain from selling them. By holding your shares for years and years, you'll get the full benefit of two major advantages.
The first advantage is dividend growth, which AbbVie has a history of. Over the last 10 years, its payout grew by 252.5%. That means people who bought shares 10 years ago and held them have significantly higher returns on their shares than what the stock's current forward dividend yield would imply for its dividend returns one year from now. It also means that once you're ready to get some cash flow from your investment, it'll be more lucrative to do so the longer you're willing to wait.
The second major advantage is the company's share repurchasing activity. Over the last 12 months, AbbVie spent more than $1.6 billion of its free cash flow (FCF) of around $22.2 billion to buy back its shares, thereby reducing the number of shares outstanding and pumping up their value for shareholders.
And that sum is very much on the lower end of the company's repurchasing volume; in 2019, it bought back nearly $12 billion of its shares for the year. People who sold their shares right before that didn't get the benefit of the capital that management allocated to shareholder returns. So keep holding your AbbVie shares if you want the most growth from your investment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As one of the world's largest pharmaceutical companies, it's no surprise to hear that AbbVie (NYSE: ABBV) has plenty of moving parts for investors to think about when they're wondering what to do to make the most money from their shares. And that's why you need to know three simple tricks to flourish as an AbbVie shareholder. Plan your purchases around catalysts AbbVie develops new medicines as its core business, and to make money from doing so, it needs to perform clinical trials to show regulators at the Food and Drug Administration (FDA) that its drugs are both safe and effective. | In contrast, buying shares right after AbbVie reports bad clinical trial results and its stock is dented might be a good idea, as it's likely that another set of results will eventually come along and erase the damage. Over the last 12 months, AbbVie spent more than $1.6 billion of its free cash flow (FCF) of around $22.2 billion to buy back its shares, thereby reducing the number of shares outstanding and pumping up their value for shareholders. As one of the world's largest pharmaceutical companies, it's no surprise to hear that AbbVie (NYSE: ABBV) has plenty of moving parts for investors to think about when they're wondering what to do to make the most money from their shares. | Over the last 12 months, AbbVie spent more than $1.6 billion of its free cash flow (FCF) of around $22.2 billion to buy back its shares, thereby reducing the number of shares outstanding and pumping up their value for shareholders. As one of the world's largest pharmaceutical companies, it's no surprise to hear that AbbVie (NYSE: ABBV) has plenty of moving parts for investors to think about when they're wondering what to do to make the most money from their shares. And that's why you need to know three simple tricks to flourish as an AbbVie shareholder. | As one of the world's largest pharmaceutical companies, it's no surprise to hear that AbbVie (NYSE: ABBV) has plenty of moving parts for investors to think about when they're wondering what to do to make the most money from their shares. And that's why you need to know three simple tricks to flourish as an AbbVie shareholder. Plan your purchases around catalysts AbbVie develops new medicines as its core business, and to make money from doing so, it needs to perform clinical trials to show regulators at the Food and Drug Administration (FDA) that its drugs are both safe and effective. |
23111.0 | 2022-09-23 00:00:00 UTC | What Could This Drug News Mean for AbbVie? | ABBV | https://www.nasdaq.com/articles/what-could-this-drug-news-mean-for-abbvie | nan | nan | In late July, AbbVie (NYSE: ABBV) applied for a new indication with the European Medicines Agency (EMA) for Rinvoq to treat adult patients with moderate-to-severe Crohn's disease.
Thanks to encouraging phase 3 clinical trial results, the indication will likely be approved within the next several months. But how much could an approval for Rinvoq to treat Crohn's disease patients in the European Union mean in terms of additional annual sales for the pharma stock? Let's dive into the results from the clinical trial and the EU Crohn's disease market to get an answer.
A treatment with clear efficacy
Crohn's disease is a type of inflammatory bowel disease that results in long-standing inflammation and harm to the digestive system. The disease can affect any part of the gastrointestinal tract, from the mouth to the anus. This is in stark contrast to ulcerative colitis, which is confined to the colon and/or rectum.
Abdominal pain, persistent diarrhea, weight loss, and fatigue are several of the most common symptoms of Crohn's disease, according to the Crohn's & Colitis Foundation of America. If left untreated or not properly treated, Crohn's disease can cause vitamin and mineral deficiencies, osteoporosis, and kidney stones.
The good news is that as more treatments are introduced over time, Crohn's disease patients and their healthcare providers will have more options to lean on to manage the disease. This should help many patients live a higher quality of life. And one of those medicines that could soon be launched is Rinvoq.
Using the Crohn's Disease Activity Index as a guide, patients receiving 15 milligrams or 30 milligrams daily of Rinvoq achieved better outcomes in managing their condition than those receiving a placebo. The 15 mg and 30 mg Rinvoq groups achieved clinical remission (i.e., a significant or complete reduction in symptoms) rates of 37% and 48%, respectively, at week 52. For context, this was far higher than the 15% clinical remission rate of the placebo group.
There is a correlation of increased risk of adverse events -- such as cancer, blood clots, and heart attacks -- with the Janus kinase (JAK) inhibitor drug class in which Rinvoq belongs. But these risks still haven't shown up in its clinical trials to date. The serious adverse event rate of patients taking Rinvoq was 25 per 100 patient-years for the 15 mg daily dose and 21 for the 30 mg daily dose. This was meaningfully lower than the 37.4 rate per 100 patient-years for placebo. This translates into 12 less patients per 100 patients experiencing serious adverse events over the course of the 52-week clinical trial.
Image source: Getty Images.
The indication would be an incremental sales increase
Rinvoq is a compelling medicine for patients with moderate-to-severe Crohn's disease. What could this translate into for sales?
There are approximately 1.5 million patients with Crohn's disease in the European Union. And of this patient pool, 21% to 22% experience moderate-to-severe Crohn's disease in a given year. This equates to a potential market of roughly 322,000 patients.
Given that Rinvoq will likely be weighed down by the safety concerns of its drug class, I believe it will remain a second-line treatment. However, since other drugs like Johnson & Johnson's (NYSE: JNJ) Stelara are more established and have fewer safety concerns, I'd assume that Rinvoq will seize 6% of this patient share -- or about 19,000 patients. That's because Rinvoq can be beneficial to patients that don't improve on drugs like Stelara.
The annual list price of Rinvoq in the United States is $68,000. Factoring in that drugs are about half the cost in the European Union, I will use an annual list price of $30,000. Further considering patient financial assistance programs and negotiations with health insurers, I'll use an annual net price per patient of $21,000.
This would be a $400 million lift to AbbVie's annual sales, which may not seem like much stacked against the $59 billion in revenue that analysts are expecting for this year. However, adding in the potential Crohn's disease indication in the U.S. and other markets, Rinvoq could generate well over $1 billion in annual revenue for AbbVie from Crohn's disease alone.
A safe, market-crushing dividend at a fair valuation
AbbVie offers income-focused investors a 4% dividend yield, which is more than double the S&P 500 index's 1.6% yield. With the dividend payout ratio projected to come in below 41% in 2022, investors can be confident that the stock's dividend is safe.
And AbbVie's trailing-12-month (TTM) price-to-free-cash-flow (P/FCF) ratio of 11.4 is moderately below its median TTM P/FCF ratio of 12.9. This is an appealing valuation for a company with strong fundamentals and a deep drug pipeline.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In late July, AbbVie (NYSE: ABBV) applied for a new indication with the European Medicines Agency (EMA) for Rinvoq to treat adult patients with moderate-to-severe Crohn's disease. This would be a $400 million lift to AbbVie's annual sales, which may not seem like much stacked against the $59 billion in revenue that analysts are expecting for this year. However, adding in the potential Crohn's disease indication in the U.S. and other markets, Rinvoq could generate well over $1 billion in annual revenue for AbbVie from Crohn's disease alone. | In late July, AbbVie (NYSE: ABBV) applied for a new indication with the European Medicines Agency (EMA) for Rinvoq to treat adult patients with moderate-to-severe Crohn's disease. This would be a $400 million lift to AbbVie's annual sales, which may not seem like much stacked against the $59 billion in revenue that analysts are expecting for this year. However, adding in the potential Crohn's disease indication in the U.S. and other markets, Rinvoq could generate well over $1 billion in annual revenue for AbbVie from Crohn's disease alone. | In late July, AbbVie (NYSE: ABBV) applied for a new indication with the European Medicines Agency (EMA) for Rinvoq to treat adult patients with moderate-to-severe Crohn's disease. However, adding in the potential Crohn's disease indication in the U.S. and other markets, Rinvoq could generate well over $1 billion in annual revenue for AbbVie from Crohn's disease alone. This would be a $400 million lift to AbbVie's annual sales, which may not seem like much stacked against the $59 billion in revenue that analysts are expecting for this year. | However, adding in the potential Crohn's disease indication in the U.S. and other markets, Rinvoq could generate well over $1 billion in annual revenue for AbbVie from Crohn's disease alone. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! In late July, AbbVie (NYSE: ABBV) applied for a new indication with the European Medicines Agency (EMA) for Rinvoq to treat adult patients with moderate-to-severe Crohn's disease. |
23112.0 | 2022-09-22 00:00:00 UTC | Interesting ABBV Put And Call Options For November 4th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-november-4th | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the November 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 4th contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $2.72. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $132.28 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $142.39/share today.
Because the $135.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.01% return on the cash commitment, or 17.10% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $3.55. If an investor was to purchase shares of ABBV stock at the current price level of $142.39/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 4.33% if the stock gets called away at the November 4th 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 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.49% boost of extra return to the investor, or 21.16% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $142.39) to be 21%. 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 become available today, for the November 4th 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. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the November 4th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $3.55. 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 become available today, for the November 4th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 4th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $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 become available today, for the November 4th expiration. |
23113.0 | 2022-09-22 00:00:00 UTC | 3 Dividend Stocks You Can Safely Hold for Decades | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-you-can-safely-hold-for-decades-4 | nan | nan | A good dividend stock is one you won't want to let go of. Why? Because dividend stocks offer you annual passive income. And of course, by choosing a company with solid earnings growth over time, you're likely to benefit from share price performance over time, too.
One good way to start your search is by looking at Dividend Kings. They've increased their dividends for at least the past 50 years. This sort of track record indicates paying out dividends is important to these companies. So, they're likely to continue that policy. Let's check out three Dividend Kings you can safely keep in your portfolio for decades.
1. AbbVie
AbbVie (NYSE: ABBV) sells the biggest blockbuster of all time. I'm talking about immunology drug Humira. The treatment is set to reach a lifetime sales level of more than $240 billion by 2024, according to EvaluatePharma. The bad news is competition is set to erode Humira sales as of next year.
But here's the good news. AbbVie's two other immunology drugs -- Skyrizi and Rinvoq -- together are set to eventually surpass peak sales of Humira. There may be a slowdown as Humira sales slip. Skyrizi and Rinvoq won't compensate overnight. But these two drugs already have great momentum. In the second quarter, AbbVie said global Skyrizi and Rinvoq revenues soared more than 85% and 56%, respectively.
AbbVie also has strengths in neuroscience, with that portfolio reporting double-digit growth in the quarter.
Over time, AbbVie has grown earnings and its share price.
ABBV Net Income (Annual) data by YCharts
Now let's take a look at the annual dividend. AbbVie pays $5.64 at a yield of 3.92%. The yield is higher than the pharmaceutical industry's average of 2.07%, data from New York University Leonard N. Stern School of Business show.
AbbVie's earnings and dividend track record and prospects for newer immunology drugs are great reasons to be confident about this company -- and to hang onto the stock for the long haul.
2. Procter & Gamble
Even through recent difficult times, Procter & Gamble (NYSE: PG) has managed to keep sales growing. The seller of well-known brands like Pampers diapers and Bounty paper towels reported a 5% increase in sales for the 2022 fiscal year. Sales reached more than $80 billion worldwide.
Of course, P&G still suffers from the same challenges that have weighed on other consumer goods companies. For example, higher commodities and transport costs. But P&G's brand strength affords it the ability to raise prices -- and consumers generally will stick with their favorite products. In the earnings report, P&G said pricing was one of the elements driving sales growth.
In recent times, P&G reached its highest level of free cash flow ever. A high level of free cash flow means a company has the cash needed to pay dividends and various expenses -- and has the cash it needs to support more growth. Net income has generally increased throughout the years, too.
PG Free Cash Flow data by YCharts
As for dividends, P&G has been paying them for 132 years. And P&G has lifted its dividend for the past 66 years. In just 10 years, P&G's dividend has climbed more than 60% to $3.52. Considering this strong dividend policy, solid free cash flow, and earnings growth over time, P&G looks like a safe stock -- with potential to boost your portfolio over time.
3. Coca-Cola
Remember the advertising slogan, "Always Coca-Cola" back in the 1990s? Well that's how I think of Coca-Cola's (NYSE: KO) position in a portfolio. It's a stock you can hold onto always. Why? For earnings growth over time, brand strength, and a dividend payment you can count on.
Coca-Cola probably won't boost your portfolio overnight. It's not growing by leaps and bounds. But that's OK. The company already is a giant. It sells its products in more than 200 countries worldwide.
And in spite of its position as the largest non-alcoholic beverage company, it still manages to grow at a respectable pace. For example, in the second quarter, the company reported a 12% increase in net revenue and global unit case volume growth of 8%.
Over time, Coca-Cola has delivered multibillion-dollar revenue and profit.
Coca-Cola's cash dividend payout ratio shows it has paid out about 64% of its free cash flow as dividends over the past year.
At the same time, free cash flow has generally gained over time and now stands at more than $10 billion. This indicates Coca-Cola has what it takes to continue rewarding investors with dividends. And that's a great reason to bet on Coca-Cola for the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's earnings and dividend track record and prospects for newer immunology drugs are great reasons to be confident about this company -- and to hang onto the stock for the long haul. AbbVie AbbVie (NYSE: ABBV) sells the biggest blockbuster of all time. AbbVie's two other immunology drugs -- Skyrizi and Rinvoq -- together are set to eventually surpass peak sales of Humira. | ABBV Net Income (Annual) data by YCharts Now let's take a look at the annual dividend. AbbVie AbbVie (NYSE: ABBV) sells the biggest blockbuster of all time. AbbVie's two other immunology drugs -- Skyrizi and Rinvoq -- together are set to eventually surpass peak sales of Humira. | AbbVie's earnings and dividend track record and prospects for newer immunology drugs are great reasons to be confident about this company -- and to hang onto the stock for the long haul. AbbVie AbbVie (NYSE: ABBV) sells the biggest blockbuster of all time. AbbVie's two other immunology drugs -- Skyrizi and Rinvoq -- together are set to eventually surpass peak sales of Humira. | AbbVie AbbVie (NYSE: ABBV) sells the biggest blockbuster of all time. AbbVie's two other immunology drugs -- Skyrizi and Rinvoq -- together are set to eventually surpass peak sales of Humira. In the second quarter, AbbVie said global Skyrizi and Rinvoq revenues soared more than 85% and 56%, respectively. |
23114.0 | 2022-09-21 00:00:00 UTC | Is Trending Stock AbbVie Inc. (ABBV) a Buy Now? | ABBV | https://www.nasdaq.com/articles/is-trending-stock-abbvie-inc.-abbv-a-buy-now-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 +2%, compared to the Zacks S&P 500 composite's -8.7% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 5.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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 $3.59 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.90 points to a change of +9.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $15.06 billion for the current quarter points to a year-over-year change of +5%. The $59.23 billion and $55.92 billion estimates for the current and next fiscal years indicate changes of +5.4% and -5.6%, 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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 lost 5.6%. | 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 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 lost 5.6%. | 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 lost 5.6%. For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. | 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 lost 5.6%. For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. |
23115.0 | 2022-09-20 00:00:00 UTC | The Zacks Analyst Blog Highlights Apple, Amazon, AbbVie, Philip Morris International and BlackRock | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-amazon-abbvie-philip-morris-international-and | nan | nan | For Immediate Release
Chicago, IL – September 20, 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: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Apple, Amazon and AbbVie
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Amazon.com, Inc. and AbbVie Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple’s shares have gained +6.0% over the past year, roughly in line against the Zacks Computer - Mini computers industry’s gain of +6.4%. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 Pro Max model is witnessing high pre-order which is expected to drive top-line growth. The Zacks analysts expect Apple’s fiscal 2022 revenues to increase 7.2% year over year with Services growing 14.1%.
However, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex. Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
(You can read the full research report on Apple here >>>)
Amazon.com shares have declined -26.7% over the past year against the Zacks Internet - Commerce industry’s decline of -34.7%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain concern. Nevertheless, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. Further, strengthening relationship with third-party sellers is a positive.
Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rates of AWS is aiding the company’s cloud dominance. An expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.
Further, robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.
(You can read the full research report on Amazon.com here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Philip Morris International Inc., and BlackRock, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Amazon and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Amazon.com, Inc. and AbbVie Inc. | Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Amazon and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Increasing competition from newer therapies is hurting Imbruvica’s sales (You can read the full research report on AbbVie here >>>) Other noteworthy reports we are featuring today include Philip Morris International Inc., and BlackRock, Inc. Why Haven’t You Looked at Zacks' Top Stocks? | Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Amazon and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Increasing competition from newer therapies is hurting Imbruvica’s sales (You can read the full research report on AbbVie here >>>) Other noteworthy reports we are featuring today include Philip Morris International Inc., and BlackRock, Inc. Why Haven’t You Looked at Zacks' Top Stocks? Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. | Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Amazon.com, Inc. and AbbVie Inc. Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Amazon and AbbVie The Zacks Research Daily presents the best research output of our analyst team. |
23116.0 | 2022-09-20 00:00:00 UTC | AbbVie (ABBV) Gets CHMP Nod for Skyrizi in a Third Indication | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gets-chmp-nod-for-skyrizi-in-a-third-indication | nan | nan | AbbVie ABBV announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (“CHMP”) recommended approving its interleukin-23 (“IL-23”) inhibitor, Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”).
A final decision by the European Commission (EC) is expected in fourth-quarter 2022. If approved, the CD will be the third indication for risankizumab. Skyrizi is already approved in the European Union for two indications —plaque psoriasis and active psoriatic arthritis.
The CHMP decision is based on positive data from three phase III studies, namely ADVANCE, MOTIVATE and FORTIFY, which evaluated the safety and efficacy of Skyrizi in CD patients. All three studies achieved the co-primary endpoints of clinical remission and endoscopic response in participants administered with Skyrizi compared with those who received a placebo.
In the year so far, shares of AbbVie have declined 5.4% against the industry’s 3.3% fall.
Image Source: Zacks Investment Research
In June, Skyrizi was approved by the FDA for treating moderately to severely active CD. Similar to the EU, the drug is also approved in the United States for plaque psoriasis and active psoriatic arthritis indications.
Apart from the above indications, AbbVie is currently evaluating Skyrizi in a phase III study for ulcerative colitis.
AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim, with AbbVie leading the global development and commercialization of Skyrizi.
AbbVie is focused on strengthening its focus on new immunology medicines, Skyrizi and Rinvoq, to lessen its dependence on Humira, the company’s blockbuster drug. Humira’s sales are declining due to biosimilars eroding AbbVie’s yearly international sales. Humira biosimilars are expected to be launched in the United States next year.
Skyrizi and Rinvoq demonstrated differentiated clinical profiles compared to Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021 and $3.25 billion in the first half of 2022.
With many new indications coming in the next couple of years, AbbVie expects sales of these two drugs to be higher and potentially replace Humira. The company also expects the combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector are Kamada KMDA, Morphic MORF and Sanofi SNY. While Kamada and Morphic sport a Zacks Rank #1 (Strong Buy), Sanofi carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Kamada’s 2022 earnings per share have risen from 1 cent to 26 cents. Shares of Kamada have lost 28.4% in the year-to-date period.
The earnings of Kamada missed estimates in three of the last four quarters and beat the mark just once, witnessing a negative surprise of 212.50%, on average. In the last reported quarter, KMDA’s earnings beat estimates by 450%.
In the past 60 days, estimates for Morphic’s 2022 loss per share have narrowed from $3.47 to $1.80. Loss estimates for 2023 have narrowed from $3.96 to $3.62 during the same period. Shares of Morphic have lost 40.2% in the year-to-date period.
Earnings of Morphic beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 48.29%, on average. In the last reported quarter, MORF delivered an earnings surprise of 183.95%.
In the past 60 days, estimates for Sanofi’s 2022 earnings per share have increased from $4.09 to $4.14. Earnings estimates for 2023 have increased from $4.25 to $4.29 during the same period. Shares of Sanofi have lost 19% in the year-to-date period.
Earnings of Sanofi beat estimates in each of the last four quarters, witnessing a surprise of 9.37%, on average. In the last reported quarter, SNY delivered an earnings surprise of 8.24%.
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Sanofi (SNY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Kamada Ltd. (KMDA): Free Stock Analysis Report
Morphic Holding, Inc. (MORF): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (“CHMP”) recommended approving its interleukin-23 (“IL-23”) inhibitor, Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). In the year so far, shares of AbbVie have declined 5.4% against the industry’s 3.3% fall. Apart from the above indications, AbbVie is currently evaluating Skyrizi in a phase III study for ulcerative colitis. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie ABBV announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (“CHMP”) recommended approving its interleukin-23 (“IL-23”) inhibitor, Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). In the year so far, shares of AbbVie have declined 5.4% against the industry’s 3.3% fall. | AbbVie ABBV announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (“CHMP”) recommended approving its interleukin-23 (“IL-23”) inhibitor, Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim, with AbbVie leading the global development and commercialization of Skyrizi. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie ABBV announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (“CHMP”) recommended approving its interleukin-23 (“IL-23”) inhibitor, Skyrizi (risankizumab) to treat moderate-to-severe Crohn’s disease (“CD”). In the year so far, shares of AbbVie have declined 5.4% against the industry’s 3.3% fall. |
23117.0 | 2022-09-20 00:00:00 UTC | 2 Dividend Stocks to Double Up On Right Now | ABBV | https://www.nasdaq.com/articles/2-dividend-stocks-to-double-up-on-right-now-0 | nan | nan | AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) have much in common. They are huge pharmaceutical companies that have a long record of success, consistent revenue growth, and regular dividends, and yet they are underpriced.
AbbVie's shares have been sluggish for the past couple of years because of concerns about the pending patent cliff in the U.S. for its blockbuster immunology drug Humira, while GlaxoSmithKline's shares have suffered recently because of concerns about lawsuits regarding its recalled indigestion drug, Zantac.
While both issues are worth noting, to me they're overblown and have already been baked into each stock's price, presenting investors with an opportunity to purchase these solid dividend earners at reasonable prices.
AbbVie has prepared for the future
AbbVie's shares are up a little more than 5% so far this year, but it's still a bargain, considering its earnings. Its trailing price-to-earnings (P/E) ratio is 20, while its forward P/E is only 12. The company is coming off a solid second quarter. Revenue was reported as $14.6 billion, up 4.5% year over year, while earnings per share (EPS) was listed at $0.51, up 21.4% over the same period in 2021.
Humira is projected to be the No. 2 selling drug in the world this year, behind only Comirnaty, the COVID-19 vaccine from Pfizer, according to Statista research. The immunology blockbuster is already facing biosimilar competition overseas and will lose its patent exclusivity in the United States in 2023. That doesn't mean that Humira sales will vanish, however. In many cases, doctors will continue to prescribe it over biosimilars, and the company will get Humira-connected royalties and licensing agreements from its biosimilar competitors. However, over time, as they have internationally, Humira's U.S. sales will diminish.
Fortunately, AbbVie has expanded its portfolio. In particular, its two other immunology drugs, Skyrizi and Rinvoq, are on the rise. Skyrizi's second-quarter revenue of $1.3 billion was 85.9% higher year over year, while Rinvoq's second-quarter revenue of $592 million was up 56.3% over the same period in 2021.
AbbVie is much less dependent on Humira than it once was. In 2017, Humira was responsible for 65% of the company's revenue. This past quarter, Humira was only responsible for 36.7%.
AbbVie is a Dividend King, because, counting its time as a division of Abbott Labs, it has raised its dividend for 50 consecutive years. Since it became an independent company in 2013, it has boosted its dividend more than 250%. The company's last dividend increase, in October 2021, was an 8.5% rise to $1.41 per quarterly share. At its most recent price, that represents a yield of around 4%. There's plenty of room for continued growth as the company's cash dividend payout ratio is around 43%.
GlaxoSmithKline primed to bounce back
GlaxoSmithKline's shares are down more than 30% this year, thanks to worries about Zantac lawsuits regarding its connection to cancer. While the lawsuits are expected to drag on, analysts at Credit Suisse say the expected likely $5 billion costs for the lawsuits to GlaxoSmithKline are dwarfed by the $12 million in market cap the stock has lost in recent weeks when news of the lawsuits began.
Thanks to the stock's share price decline, it has become attractively priced compared to earnings. The company's trailing P/E is about 12 and its forward P/E is around 10.
In the second quarter, GSK reported revenue of $8.7 billion, up 13% year over year, once the revenue from its July spinoff of its consumer division, now a separate company called Haleon, is taken into account. GSK's adjusted operating profit also grew 22%. The company's EPS did drop 53%, though, to $0.24 per share, thanks in great part to expenses regarding its spinoff. The company said it expects yearly revenue to rise 6% to 8% over 2021, driven by improved sales from specialty medicines.
The company dropped its dividend to be in line with its spinoff. But starting the last quarter, it is on the rise again, up by 14% to $0.3908 per share, giving it a yield of around 6.43% at current share price. While that sounds high, the company has a safe cash dividend payout ratio of 53%.
In the lab, GSK has had a strong year. On July 24, the company announced that the U.S. Food and Drug Administration (FDA) had approved Benlysta (belimumab) to treat lupus nephritis in children ages five to 17. That showed a label expansion for the first new drug approved to treat lupus in more than 50 years. This month, the company reported positive news from its phase 3 trial for ovarian cancer drug Zejula (niraparib). GlaxoSmithKline also gained pre-qualification status from the World Health Organization for its malaria vaccine, Mosquirix, a big step that is needed for the drug to be used by various international aid agencies.
Buying at the right time
Both pharmaceutical stocks have been hurt by what I see as over-corrections. Though AbbVie is up so far this year, its recession-resistant business should have yielded stronger share growth, were it not for Humira worries. The same holds true, only more so, for GlaxoSmithKline and its Zantac headaches. Both companies have huge portfolios and consistent revenue growth. Meanwhile, their dividends reward long-term investors until the stocks bounce back.
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*Stock Advisor returns as of August 17, 2022
Jim Halley has positions in AbbVie, GSK plc, Haleon plc, and Pfizer. The Motley Fool recommends GSK plc and Haleon 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. | AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) have much in common. AbbVie's shares have been sluggish for the past couple of years because of concerns about the pending patent cliff in the U.S. for its blockbuster immunology drug Humira, while GlaxoSmithKline's shares have suffered recently because of concerns about lawsuits regarding its recalled indigestion drug, Zantac. AbbVie has prepared for the future AbbVie's shares are up a little more than 5% so far this year, but it's still a bargain, considering its earnings. | AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) have much in common. AbbVie's shares have been sluggish for the past couple of years because of concerns about the pending patent cliff in the U.S. for its blockbuster immunology drug Humira, while GlaxoSmithKline's shares have suffered recently because of concerns about lawsuits regarding its recalled indigestion drug, Zantac. AbbVie has prepared for the future AbbVie's shares are up a little more than 5% so far this year, but it's still a bargain, considering its earnings. | AbbVie's shares have been sluggish for the past couple of years because of concerns about the pending patent cliff in the U.S. for its blockbuster immunology drug Humira, while GlaxoSmithKline's shares have suffered recently because of concerns about lawsuits regarding its recalled indigestion drug, Zantac. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Jim Halley has positions in AbbVie, GSK plc, Haleon plc, and Pfizer. AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) have much in common. | AbbVie's shares have been sluggish for the past couple of years because of concerns about the pending patent cliff in the U.S. for its blockbuster immunology drug Humira, while GlaxoSmithKline's shares have suffered recently because of concerns about lawsuits regarding its recalled indigestion drug, Zantac. AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) have much in common. AbbVie has prepared for the future AbbVie's shares are up a little more than 5% so far this year, but it's still a bargain, considering its earnings. |
23118.0 | 2022-09-19 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-4 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $142.66, moving -0.97% from the previous trading session. This move lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Prior to today's trading, shares of the drugmaker had gained 1.56% over the past month. This has outpaced the Medical sector's loss of 5.7% and the S&P 500's loss of 9.94% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $3.59, up 7.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.06 billion, up 4.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.90 per share and revenue of $59.23 billion, which would represent changes of +9.45% and +5.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 10.36 right now. This represents a discount compared to its industry's average Forward P/E of 12.63.
Also, we should mention that ABBV has a PEG ratio of 4.09. 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 1.81 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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. | AbbVie (ABBV) closed the most recent trading day at $142.66, moving -0.97% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors might also notice recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the most recent trading day at $142.66, moving -0.97% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors might also notice recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the most recent trading day at $142.66, moving -0.97% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors might also notice recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the most recent trading day at $142.66, moving -0.97% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors might also notice recent changes to analyst estimates for AbbVie. |
23119.0 | 2022-09-19 00:00:00 UTC | Top Analyst Reports for Apple, Amazon.com & AbbVie | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-apple-amazon.com-abbvie | nan | nan | Monday, September 19, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple’s shares have gained +6.0% over the past year, roughly in line against the Zacks Computer - Mini computers industry’s gain of +6.4%. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 Pro Max model is witnessing high pre-order which is expected to drive top-line growth. The Zacks analysts expect Apple’s fiscal 2022 revenues to increase 7.2% year over year with Services growing 14.1%.
However, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex. Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
(You can read the full research report on Apple here >>>)
Amazon.com shares have declined -26.7% over the past year against the Zacks Internet - Commerce industry’s decline of -34.7%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain concern. Nevertheless, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. Further, strengthening relationship with third-party sellers is a positive.
Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rates of AWS is aiding the company’s cloud dominance. An expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.
Further, robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.
(You can read the full research report on Amazon.com here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Philip Morris International Inc. (PM), and BlackRock, Inc. (BLK).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Featured Reports
Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact
The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs.
Phillip Morris (PM) Gains From Smoke-Free Product Category
Per the Zacks analyst, Philip Morris has been gaining from solid focus on the reduced-risk or smokeless products category. In the second quarter of 2022, sales from RRPs increased 8.2% year over year.
Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts and initiatives to restructure the active equity business will aid the top line. These efforts might lead to higher costs, thus hurting profits.
Growth Goals Aid Trane Technologies (TT), Low Liquidity Ails
The Zacks analyst appreciates Trane Technologies' growth initiatives through increased revenue streams from parts, services, used equipment and rentals. Weak liquidity remains a concern.
Buyouts Aid Genuine Parts' Growth (GPC) Amid High SG&A Costs
Genuine Parts' (GPC) buyouts of Steady, Lausan and Canol, KDG augur well for its top-line growth. But, per the Zacks analyst, soaring SG&A costs led by technology innovation may dent margins.
A Slew of Strategic Deals Continue to Aid Catalent (CTLT)
The Zacks analyst is upbeat about Catalent's robust growth opportunities via its tie-ups and buyouts over the past few months despite its operation in a tough competitive space.
Infrastructure Investment, Cost Management Aid Evergy (EVRG)
Per the Zacks analyst, Evergy's investment of $10.7 billion through 2026 will strengthen its infrastructure, while efficient cost management will drive its performance over the long run.
New Upgrades
Pure Storage (PSTG) Benefits from Robust Product Portfolio
Per the Zacks analyst, Pure Storage's strong portfolio of solutions like Pure as-a-Service and Evergreen is driving the performance. Strength in FlashArray and FlashBlade businesses bodes well.
Helmerich & Payne (HP) to Gain from Proprietary FlexRigs
The Zacks analyst believes that Helmerich & Payne's technologically-advanced FlexRigs help it to consolidate activity levels and maintain strong rig margins.n
Strategic Plan, Rising Rates Aid Associated Banc-Corp (ASB)
Per the Zacks analyst, strategic plan to expand lending capabilities, higher interest rates and a solid balance sheet will keep aiding Associated Banc-Corp amid rising costs and high debt levels.
New Downgrades
Supply Chain Woes & Stiff Competition to Hurt Itron (ITRI)
Per the Zacks analyst, increasing supply challenges and component constraints continue to be a major headwind for Itron. Stiff competition and leveraged balance sheet is an added concern.
Inflationary Pressures Hurt Red Robin's (RRGB) Prospects
Per the Zacks analyst, Red Robin's operations are likely to be affected by higher commodity and wage rate inflation. Also, pandemic induced supply chain disruptions remains a concern.
Allstate (ALL) Increased Cat Loss & Elevated Debt Level Ail
Per the Zacks analyst, exposure to catastrophic events continues to dent Allstate's underwriting profitability. Rising debt remains a concern as it results in escalated interest expenses.
FREE Report: The Metaverse is Exploding! Don’t You Want to Cash In?
Rising gas prices. The war in Ukraine. America's recession. Inflation. It's no wonder why the metaverse is so popular and growing every day. Becoming Spider Man and fighting Darth Vader is infinitely more appealing than spending over $5 per gallon at the pump. And that appeal is why the metaverse can provide such massive gains for investors. But do you know where to look? Do you know which metaverse stocks to buy and which to avoid? In a new FREE report from Zacks' leading stock specialist, we reveal how you could profit from the internet’s next evolution. Even though the popularity of the metaverse is spreading like wildfire, investors like you can still get in on the ground floor and cash in. Don't miss your chance to get your piece of this innovative $30 trillion opportunity - FREE.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
AstraZeneca PLC (AZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). (You can read the full research report on Amazon.com here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). (You can read the full research report on Amazon.com here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). | Increasing competition from newer therapies is hurting Imbruvica’s sales (You can read the full research report on AbbVie here >>>) Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Philip Morris International Inc. (PM), and BlackRock, Inc. (BLK). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). (You can read the full research report on Amazon.com here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). |
23120.0 | 2022-09-19 00:00:00 UTC | VOO, JNJ, LLY, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/voo-jnj-lly-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 S&P 500 ETF (Symbol: VOO) where we have detected an approximate $3.4 billion dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 716,557,429 to 725,989,116). Among the largest underlying components of VOO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.5%, Eli Lilly (Symbol: LLY) is down about 3.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average:
Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $355.97. 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 VOO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.5%, Eli Lilly (Symbol: LLY) is down about 3.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $355.97. 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 VOO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.5%, Eli Lilly (Symbol: LLY) is down about 3.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $355.97. 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 VOO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.5%, Eli Lilly (Symbol: LLY) is down about 3.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $3.4 billion dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 716,557,429 to 725,989,116). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $355.97. | Among the largest underlying components of VOO, in trading today Johnson & Johnson (Symbol: JNJ) is off about 1.5%, Eli Lilly (Symbol: LLY) is down about 3.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $3.4 billion dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 716,557,429 to 725,989,116). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $355.97. |
23121.0 | 2022-09-19 00:00:00 UTC | How To Start Investing In Stocks Today | ABBV | https://www.nasdaq.com/articles/how-to-start-investing-in-stocks-today | nan | nan | Investing in the stock market can be a great way to make money and build your wealth. While there is always some risk involved, if you know what you’re doing, you can minimize your risk and maximize your chances of making a profit. One of the biggest benefits of investing in the stock market is that it gives you the opportunity to buy shares of companies that are doing well and that have a lot of potential for growth. This means that you can potentially make a lot of money if the company’s stock price goes up.
Another benefit of investing in the stock market today is that it allows you to diversify your portfolio. This means that you can invest in different types of companies, which can help to reduce your overall risk. Finally, investing in the stock market can also provide you with a sense of pride and satisfaction. Knowing that you own shares in a company that is doing well can be a great feeling. In this article, we’re going to cover how to start investing in stocks today in 5 simple steps.
How To Start Investing In Stocks
Determine Your Investing Goals
Choose Your Risk Tolerance
Decide On Your Investment Strategy
Choose An Investment Account
Create A Budget For Your Stock Market Investments
Determine Your Investing Goals
Stock market investing can be a great way to grow your wealth over time. However, before you start investing, it’s important to determine your investment goals. Are you looking to generate income, build long-term wealth, or preserve capital? Once you know your goals, you can develop a strategy that aligns with them. For instance, if you’re looking to generate income, you might focus on investments that pay regular dividends.
If you’re looking to build long-term wealth, you might focus on growth stocks with the potential for high returns. This would include companies such as Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL), and Tesla, Inc. (NASDAQ: TSLA) to name a couple.
However, if you’re looking to preserve capital, you might focus on more conservative investments. An example of this would be dividend-paying stocks that historically provide investors with steadier returns. Some of the more popular dividend-paying stocks in the stock market now are names like AbbVie Inc. (NYSE: ABBV), and UnitedHealth Group Inc. (NYSE: UNH). By understanding your goals and developing a corresponding strategy, you’ll be better positioned for success in the stock market.
[Read More] How Do Stocks Work? Your 2022 Beginners Guide & FAQ
Choose Your Risk Tolerance
Next, it’s key to know that different investments will carry different levels of risk. It’s also important to choose an investment strategy that aligns with your overall risk tolerance. For example, if you’re the type of person who can’t stomach any volatility in your portfolio, you might want to stay away from stocks and focus on more stable investments like bonds.
On the other hand, if you’re comfortable with a little bit of ups and downs, you might be willing to accept a higher level of risk in exchange for the potential for greater returns. Ultimately, the goal is to find a balance that you’re comfortable with and that meets your financial goals.
Decide On Your Investment Strategy
Moving along, deciding on your investment strategy is one of the most important steps you can take when starting to invest. There are many different approaches to investing, and the strategy you choose will be influenced by your goals, time horizon, and risk tolerance. If you’re looking for immediate income, for example, you might focus on investments that offer high yields. If you’re saving for retirement, on the other hand, you’ll want to focus on growth investments that have the potential to generate a large return over the long term.
Regardless of your goals, it’s important to develop a diversified portfolio that includes a mix of asset classes, such as stocks, bonds, and cash. By spreading your investments across different types of assets, you’ll minimize your risk and increase your chances of achieving your financial goals.
Choose An Investment Account
Choosing an investment account can be a daunting task. There are so many different types of accounts and investment options available that it can be difficult to know where to start. However, there are some basic steps that can help to make the process a little easier.
First, it is important to decide what your goals are for the account. Are you looking to save for retirement, or do you want to grow your wealth more quickly? Once you have a clear idea of your goals, you can begin to research the different types of accounts that will best meet your needs.
Retirement accounts, such as 401(k)s and IRAs, offer tax advantages that can help you to save more for your future. If you are looking to grow your wealth more quickly, there are a variety of different investment accounts that offer different levels of risk and reward.
The key is to find an account that fits your needs and goals. With so many options available, choosing an investment account can be a challenging task. However, by taking the time to understand your goals and research the different types of accounts, you can find an account that is right for you.
[Read More] 15 Best Stocks To Buy For Beginners
Create A Budget For Your Stock Market Investments
Lastly, it’s important to budget for your stock market investing so that you don’t overspend and put your financial security at risk. When budgeting for stock market investing, start by considering how much money you can afford to lose. This will help you set realistic expectations and avoid getting in over your head.
Next, create a budget for how much you’ll need to invest each month or year. This will ensure that you’re making regular contributions and staying on track with your investment goals. Finally, factor in the costs of any brokerage fees or other commissions so that you know exactly how much your investment will cost you. By budgeting for stock market investing, you can make smart financial decisions and keep your investment portfolio healthy.
Bottom Line
If you are looking for a way to start building your wealth, investing in stocks may be the right choice for you. By following the tips we’ve outlined in this article, you can get started on the path to growing your money. Remember to do your research and consult with a financial advisor before making any major decisions about your investments. With a little patience and some sound advice, you can make wise choices that will benefit you both today and in 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. | Some of the more popular dividend-paying stocks in the stock market now are names like AbbVie Inc. (NYSE: ABBV), and UnitedHealth Group Inc. (NYSE: UNH). One of the biggest benefits of investing in the stock market is that it gives you the opportunity to buy shares of companies that are doing well and that have a lot of potential for growth. On the other hand, if you’re comfortable with a little bit of ups and downs, you might be willing to accept a higher level of risk in exchange for the potential for greater returns. | Some of the more popular dividend-paying stocks in the stock market now are names like AbbVie Inc. (NYSE: ABBV), and UnitedHealth Group Inc. (NYSE: UNH). How To Start Investing In Stocks Determine Your Investing Goals Choose Your Risk Tolerance Decide On Your Investment Strategy Choose An Investment Account Create A Budget For Your Stock Market Investments Determine Your Investing Goals Stock market investing can be a great way to grow your wealth over time. Are you looking to generate income, build long-term wealth, or preserve capital? | Some of the more popular dividend-paying stocks in the stock market now are names like AbbVie Inc. (NYSE: ABBV), and UnitedHealth Group Inc. (NYSE: UNH). How To Start Investing In Stocks Determine Your Investing Goals Choose Your Risk Tolerance Decide On Your Investment Strategy Choose An Investment Account Create A Budget For Your Stock Market Investments Determine Your Investing Goals Stock market investing can be a great way to grow your wealth over time. Decide On Your Investment Strategy Moving along, deciding on your investment strategy is one of the most important steps you can take when starting to invest. | Some of the more popular dividend-paying stocks in the stock market now are names like AbbVie Inc. (NYSE: ABBV), and UnitedHealth Group Inc. (NYSE: UNH). Investing in the stock market can be a great way to make money and build your wealth. How To Start Investing In Stocks Determine Your Investing Goals Choose Your Risk Tolerance Decide On Your Investment Strategy Choose An Investment Account Create A Budget For Your Stock Market Investments Determine Your Investing Goals Stock market investing can be a great way to grow your wealth over time. |
23122.0 | 2022-09-19 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, Novartis, Merck and AstraZeneca | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-novartis-merck-and-astrazeneca | nan | nan | For Immediate Release
Chicago, IL – September 19, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN.
Here are highlights from Friday’s Analyst Blog:
4 Large Drug Stocks to Watch as Fundamentals Stay Strong
Investors flocked to the biotech industry during the pandemic years of 2020 and 2021. The successful vaccines and effective antivirals made by the big drugmakers sent the pandemic to the rear-view mirror early his year. However, the post-pandemic trade recovery and strong economic growth have shifted investors’ money to the less expensive sectors. This coupled with a rapid rise in interest rates and inflation has sent biotech valuations plunging recently.
Nonetheless, though biotech industry valuations are currently experiencing a correction, fundamentals remain strong. It is expected that innovation will continue to drive growth in the industry in the second half of 2022 and into 2023. Meanwhile, M&A deals are also picking up, which is a sign of growth. Among the large drugmakers, AbbVie, Novartis, Merck and AstraZeneca are worth retaining in your portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that developmulti-million dollar drugs for a broad range of therapeutic areas like neuroscience, cardiovascular and metabolism, rare diseases, immunology, and oncology. Some of these companies also make vaccines, animal health, medical devices, and consumer-related healthcare products. All these players invest millions of dollars in their product pipelines and line extensions of their already marketed drugs.
Continuous innovation is a defining characteristic of pharma companies and these large drugmakers are constantly investing in drug development and the discovery of new medicines. Regular mergers and acquisitions and collaboration deals are a key feature of large drug companies.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success: For big drugmakers, innovation in their pipeline is a competitive necessity and key to top-line growth. Pharma companies are constantly striving to ramp up innovation and spending a significantly high portion of their revenues on R&D. Successful innovation and product line extensions in important therapeutic areas and strong clinical study results may act as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activity. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies sitting on huge piles of cash regularly buy innovative small/mid-cap biotech companies to build out their pipelines.
Also, the sloppy sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices, and the emergence of big tech firms like Apple and Google in the healthcare industry whet the M&A appetite of large drugmakers.The fast-growing and lucrative markets such as oncology and cell and gene therapy are likely to remain focus areas for M&A activities.
Also, collaborations and partnerships with smaller companies are in full swing. With target valuations dropping to historic lows, big pharma players may use the opportunity for large-scale M&A later this year.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share prices. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments and a slowdown in sales of some of the most high-profile older drugs.
Uncertainty Surrounding the Pandemic: The pandemic hurt demand trends of physician-administered drugs of most companies. Though trends recovered in 2021, infection rates shot up significantly in the last quarter of 2021, with the rapid spread of the Omicron variant. In 2022 so far, major waves of variants of concern have emerged quickly, become dominant and have been superseded by the next variant. There is still uncertainty about the duration and contemplated impact of the pandemic on companies’ results and outlook in the second half of 2022.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Large Cap Pharmaceuticals industry is a 13-stock group within the broader Medical sector. The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #99, which places it in the top 40% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s performance and its current valuation.
Industry Versus S&P 500 & Sector
The industry has outperformed the S&P 500 as well as the Zacks Medical Sector this year so far.
Stocks in this industry have collectively declined 3.7% this year so far compared with the Zacks S&P 500 composite’s decline of 17.9% and the Zacks Medical Sector’s decline of 20.1% in the said time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 13.99X compared with the S&P 500’s 16.98X and the Zacks Medical Sector's 20.59X.
Over the last five years, the industry has traded as high as 16.16X, as low as 13.31X and at a median of 14.83X.
4 Large Drugmakers to Keep an Eye On
AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. New immunology drugs, Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. AbbVie has several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
AbbVie has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2022 EPS has remained stable at $13.90 per share over the past 30 days. The stock has risen 5.2% this year so far. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merck: Merck has a Zacks Rank of 3. The company boasts more than six blockbuster drugs in its portfolio, including the PD-L1 inhibitor, Keytruda, which is approved for several types of cancer and alone accounts for around 40% of its pharmaceutical sales. Keytruda, Gardasil vaccine and Bridion have been driving sales.
Keytruda has played an instrumental role in driving Merck’s revenue growth in the past few years. Keytruda is growing continuously and expanding into new indications and markets globally. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver.
Animal health and vaccine products are core growth drivers. Merck’s new COVID oral antiviral pill, Lagevrio has been a key top-line driver in 2022. Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth.
Shares of Merck have risen 13.2% in the past year. The Zacks Consensus Estimate for 2022 EPS has risen from $7.32 to $7.33 over the past 30 days.
Novartis: Novartis has a strong and diverse portfolio. Solid momentum in key brands like psoriasis drug, Cosentyx, a cardiovascular drug, Entresto, gene therapy, Zolgensma, the oncology portfolio, and the launch of Kesimpta continue to boost performance. The launch of additional drugs like Pluvicto, Piqray, Leqvio and Mayzent, and the label expansion of key drugs should also boost performance further.
The pipeline progress is also impressive and the company has some promising candidates. Management’s focus on cost savings should boost the bottom line as well. Management recently decided to separate its generics business, Sandoz into a separate company to focus on its core pharma business.
The Zacks Consensus Estimate for 2022 EPS has remained stable at $6.06 per share over the past 30 days. Novartis is a #3 Ranked stock. This Swiss drugmaker’s stock has declined 7.7% this year so far.
AstraZeneca: AstraZeneca’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong, with several phase III data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthens its immunology franchise, adding several drugs that can boost its top line
AstraZeneca has a Zacks Rank #3. The Zacks Consensus Estimate for this British drugmaker’s 2022 EPS has remained stable at $3.31 over the past 30 days. The stock has declined 0.2% this year so far.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN. Among the large drugmakers, AbbVie, Novartis, Merck and AstraZeneca are worth retaining in your portfolio. 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. | Stocks recently featured in the blog include: AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN. Among the large drugmakers, AbbVie, Novartis, Merck and AstraZeneca are worth retaining in your portfolio. 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. | Stocks recently featured in the blog include: AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN. Among the large drugmakers, AbbVie, Novartis, Merck and AstraZeneca are worth retaining in your portfolio. 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. | Stocks recently featured in the blog include: AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN. Among the large drugmakers, AbbVie, Novartis, Merck and AstraZeneca are worth retaining in your portfolio. 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. |
23123.0 | 2022-09-19 00:00:00 UTC | 4 Strategies to Try if You Need Extra Cash From Your Investments | ABBV | https://www.nasdaq.com/articles/4-strategies-to-try-if-you-need-extra-cash-from-your-investments | nan | nan | When it comes to successful long-term investing, it's a good idea to focus on total return: the combination of price appreciation and dividend payments. However, there are times when you might think about optimizing for cash flow instead. If you have upcoming obligations that can't be covered by your job income alone -- like an unexpected medical emergency or a larger-than-expected tax bill -- you might want to look into investments that can help make up a cash shortage.
Below, we'll briefly review four strategies to access a little more cash.
Focus on dividend payers
Many stocks across the investment universe are known for their ability to generate cash, and in many cases even to increase their dividend. Here, I refer to companies like AT&T, AbbVie, and Kinder Morgan -- among other value stocks. But others, typically growth stocks in the tech space, pay no dividend and rely on price appreciation alone to provide returns.
While dividend-paying stocks can offer cash flow to the tune of 4% to 6% per year, you'll also need to focus on quality companies if you choose to go this route. A stock that pays a 5% dividend but experiences wild swings in price could leave you with a negative net return overall. So you'll need to be especially clear on why you're optimizing for cash flow and have a strong thesis behind any individual stock you buy.
Image source: Getty Images.
Use a taxable account
One of the upsides of taxable brokerage accounts is that, unlike 401(k)s or IRAs, you can easily access the money when you want it and at any age. If you're looking to raise cash by selling existing investments, doing so in a taxable account is likely to result in a greater net benefit -- especially if you've held the investments longer than a year (capital gains will be long term, which are taxed at lower rates). If you withdraw money from a 401(k) or pre-tax IRA, you'll pay ordinary income tax plus an early withdrawal penalty if you're under age 59 1/2.
This is not to say that you shouldn't use a 401(k) or IRA; in fact, quite the opposite is true. Both 401(k)s and IRAs can be particularly powerful tools from the perspective of tax deferral and compound growth. That said, make sure to have a taxable brokerage account for more readily accessible investments, while simultaneously doing your best to max out both your 401(k) and your IRA every year.
Set dividends to cash
If you own stocks that pay dividends, be sure to have the account setting turned on that allows for dividends to appear as cash in your account. If you don't do this, you'll simply reinvest dividends back into the company (or companies) that paid them, increasing your share holdings but not actually making cash available to you. While this doesn't increase the amount of the dividend you ultimately receive, it does make cash available to you on a repeated schedule.
Pause for a moment
Before investing too much money in the stock market, be sure you have enough cash on hand to cover upcoming obligations. As we've seen this year, markets can and do fall quickly -- for any reason at all. If you're anxious about putting your entire nest egg to work, take a moment to pause and consider how much you're willing to lose in the short run if markets do turn further south. Simply hanging on to your money and not investing can be a viable way to maintain ready access to cash.
Cash really is still king
In the end, you need cash to pay for expenses. Investing your money in 401(k)s and IRAs is a great strategy for retirement savings, though that money won't help much with a rent or mortgage payment due next month (unless you're already retired). To squeeze a little more cash out of your investments, focus on dividend-paying stocks, set dividends to cash, and hold off on investing all your money before you have a sizable cash cushion.
Some small tweaks to your portfolio can go a long way in reducing anxiety around day-to-day market movements. Pay attention to your regular obligations and ensure that cash flow from all sources lines up to meet them all.
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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. | Here, I refer to companies like AT&T, AbbVie, and Kinder Morgan -- among other value stocks. When it comes to successful long-term investing, it's a good idea to focus on total return: the combination of price appreciation and dividend payments. If you have upcoming obligations that can't be covered by your job income alone -- like an unexpected medical emergency or a larger-than-expected tax bill -- you might want to look into investments that can help make up a cash shortage. | Here, I refer to companies like AT&T, AbbVie, and Kinder Morgan -- among other value stocks. Set dividends to cash If you own stocks that pay dividends, be sure to have the account setting turned on that allows for dividends to appear as cash in your account. To squeeze a little more cash out of your investments, focus on dividend-paying stocks, set dividends to cash, and hold off on investing all your money before you have a sizable cash cushion. | Here, I refer to companies like AT&T, AbbVie, and Kinder Morgan -- among other value stocks. Focus on dividend payers Many stocks across the investment universe are known for their ability to generate cash, and in many cases even to increase their dividend. Set dividends to cash If you own stocks that pay dividends, be sure to have the account setting turned on that allows for dividends to appear as cash in your account. | Here, I refer to companies like AT&T, AbbVie, and Kinder Morgan -- among other value stocks. Set dividends to cash If you own stocks that pay dividends, be sure to have the account setting turned on that allows for dividends to appear as cash in your account. Pause for a moment Before investing too much money in the stock market, be sure you have enough cash on hand to cover upcoming obligations. |
23124.0 | 2022-09-19 00:00:00 UTC | AbbVie Receives CHMP Positive Opinion For Skyrizi For Moderate To Severe Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvie-receives-chmp-positive-opinion-for-skyrizi-for-moderate-to-severe-crohns-disease | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) said on Monday that the Committee for Medicinal Products for Human Use has adopted positive opinion to extend the indication of Skyrizi for the treatment of adults with moderate to severe Crohn's Disease in the European Union.
The European Commission's final decision on the drug is anticipated next quarter (Q4, 2022).
In the European Union, Skyrizi is already indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy. The drug, alone or in combination with methotrexate (MTX), is also indicated for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying antirheumatic drugs.
Skyrizi has been developed as part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie being responsible for the worldwide development and commercialization of the drug.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) said on Monday that the Committee for Medicinal Products for Human Use has adopted positive opinion to extend the indication of Skyrizi for the treatment of adults with moderate to severe Crohn's Disease in the European Union. Skyrizi has been developed as part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie being responsible for the worldwide development and commercialization of the drug. The European Commission's final decision on the drug is anticipated next quarter (Q4, 2022). | (RTTNews) - AbbVie Inc. (ABBV) said on Monday that the Committee for Medicinal Products for Human Use has adopted positive opinion to extend the indication of Skyrizi for the treatment of adults with moderate to severe Crohn's Disease in the European Union. Skyrizi has been developed as part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie being responsible for the worldwide development and commercialization of the drug. In the European Union, Skyrizi is already indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy. | (RTTNews) - AbbVie Inc. (ABBV) said on Monday that the Committee for Medicinal Products for Human Use has adopted positive opinion to extend the indication of Skyrizi for the treatment of adults with moderate to severe Crohn's Disease in the European Union. Skyrizi has been developed as part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie being responsible for the worldwide development and commercialization of the drug. The drug, alone or in combination with methotrexate (MTX), is also indicated for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying antirheumatic drugs. | (RTTNews) - AbbVie Inc. (ABBV) said on Monday that the Committee for Medicinal Products for Human Use has adopted positive opinion to extend the indication of Skyrizi for the treatment of adults with moderate to severe Crohn's Disease in the European Union. Skyrizi has been developed as part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie being responsible for the worldwide development and commercialization of the drug. The European Commission's final decision on the drug is anticipated next quarter (Q4, 2022). |
23125.0 | 2022-09-16 00:00:00 UTC | Bristol Myers, AbbVie plan to cut up to 360 California jobs | ABBV | https://www.nasdaq.com/articles/bristol-myers-abbvie-plan-to-cut-up-to-360-california-jobs | nan | nan | Sept 16 (Reuters) - Drugmakers Bristol Myers Squibb Co BMY.N and AbbVie Inc ABBV.O told California officials that they plan to cut up to 360 jobs there in unrelated moves, according to notices filed with the state that were made public earlier this week.
Bristol Myers plans to cut up to 261 jobs in two different locations in San Diego, according to the filings. A Bristol Myers spokesperson said the job cuts follow the company's $4.1 billion acquisition of drug developer Turning Point Therapeutics, which closed in August.
"All incoming employees received retention packages tied to continued service to BMS for a period of time and have been encouraged to apply to long-term roles at BMS after their retention period ends," the spokesperson said in an email.
Separately, AbbVie plans to cut up to 99 jobs in Irvine, Calif., the company told the state. The company did not respond to a request for comment.
The job cuts were previously reported by Endpoints News.
(Reporting by Michael Erman; Editing by Cynthia Osterman)
((michael.erman@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 16 (Reuters) - Drugmakers Bristol Myers Squibb Co BMY.N and AbbVie Inc ABBV.O told California officials that they plan to cut up to 360 jobs there in unrelated moves, according to notices filed with the state that were made public earlier this week. Separately, AbbVie plans to cut up to 99 jobs in Irvine, Calif., the company told the state. Bristol Myers plans to cut up to 261 jobs in two different locations in San Diego, according to the filings. | Separately, AbbVie plans to cut up to 99 jobs in Irvine, Calif., the company told the state. Sept 16 (Reuters) - Drugmakers Bristol Myers Squibb Co BMY.N and AbbVie Inc ABBV.O told California officials that they plan to cut up to 360 jobs there in unrelated moves, according to notices filed with the state that were made public earlier this week. Bristol Myers plans to cut up to 261 jobs in two different locations in San Diego, according to the filings. | Sept 16 (Reuters) - Drugmakers Bristol Myers Squibb Co BMY.N and AbbVie Inc ABBV.O told California officials that they plan to cut up to 360 jobs there in unrelated moves, according to notices filed with the state that were made public earlier this week. Separately, AbbVie plans to cut up to 99 jobs in Irvine, Calif., the company told the state. A Bristol Myers spokesperson said the job cuts follow the company's $4.1 billion acquisition of drug developer Turning Point Therapeutics, which closed in August. | Sept 16 (Reuters) - Drugmakers Bristol Myers Squibb Co BMY.N and AbbVie Inc ABBV.O told California officials that they plan to cut up to 360 jobs there in unrelated moves, according to notices filed with the state that were made public earlier this week. Separately, AbbVie plans to cut up to 99 jobs in Irvine, Calif., the company told the state. A Bristol Myers spokesperson said the job cuts follow the company's $4.1 billion acquisition of drug developer Turning Point Therapeutics, which closed in August. |
23126.0 | 2022-09-16 00:00:00 UTC | 4 Large Drug Stocks to Watch as Fundamentals Stay Strong | ABBV | https://www.nasdaq.com/articles/4-large-drug-stocks-to-watch-as-fundamentals-stay-strong | nan | nan | Investors flocked to the biotech industry during the pandemic years of 2020 and 2021. The successful vaccines and effective antivirals made by the big drugmakers sent the pandemic to the rear-view mirror early his year. However, the post-pandemic trade recovery and strong economic growth have shifted investors’ money to the less expensive sectors. This coupled with a rapid rise in interest rates and inflation has sent biotech valuations plunging recently.
Nonetheless, though biotech industry valuations are currently experiencing a correction, fundamentals remain strong. It is expected that innovation will continue to drive growth in the industry in the second half of 2022 and into 2023. Meanwhile, M&A deals are also picking up, which is a sign of growth. Among the large drugmakers, AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN are worth retaining in your portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that developmulti-million dollar drugs for a broad range of therapeutic areas like neuroscience, cardiovascular and metabolism, rare diseases, immunology, and oncology. Some of these companies also make vaccines, animal health, medical devices, and consumer-related healthcare products. All these players invest millions of dollars in their product pipelines and line extensions of their already marketed drugs. Continuous innovation is a defining characteristic of pharma companies and these large drugmakers are constantly investing in drug development and the discovery of new medicines. Regular mergers and acquisitions and collaboration deals are a key feature of large drug companies.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success: For big drugmakers, innovation in their pipeline is a competitive necessity and key to top-line growth. Pharma companies are constantly striving to ramp up innovation and spending a significantly high portion of their revenues on R&D. Successful innovation and product line extensions in important therapeutic areas and strong clinical study results may act as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activity. Given that it takes several years and millions ofdollars to develop new therapeutics from scratch, large pharmaceutical companies sitting on huge piles of cash regularly buy innovative small/mid-cap biotech companies to build out their pipelines. Also, the sloppy sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices, and the emergence of big tech firms like Apple and Google in the healthcare industry whet the M&A appetite of large drugmakers.The fast-growing and lucrative markets such as oncology and cell and gene therapy are likely to remain focus areas for M&A activities. Also, collaborations and partnerships with smaller companies are in full swing.With target valuations dropping to historic lows, big pharma players may use the opportunity for large-scale M&A later this year.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share prices. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments and a slowdown in sales of some of the most high-profile older drugs.
Uncertainty Surrounding the Pandemic: The pandemic hurt demand trends of physician-administered drugs of most companies. Though trends recovered in 2021, infection rates shot up significantly in the last quarter of 2021, with the rapid spread of the Omicron variant. In 2022 so far, major waves of variants of concern have emerged quickly, become dominant and have been superseded by the next variant. There is still uncertainty about the duration and contemplated impact of the pandemic on companies’ results and outlook in the second half of 2022.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Large Cap Pharmaceuticals industry is a 13-stock group within the broader Medical sector. The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #99, which places it in the top 40% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s performance and its current valuation.
Industry Versus S&P 500 & Sector
The industry has outperformed the S&P 500 as well as the Zacks Medical Sector this year so far.
Stocks in this industry have collectively declined 3.7% this year so far compared with the Zacks S&P 500 composite’s decline of 17.9% and the Zacks Medical Sector’s decline of 20.1% in the said time frame.
Year-to-Date Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 13.99X compared with the S&P 500’s 16.98X and the Zacks Medical Sector's 20.59X.
Over the last five years, the industry has traded as high as 16.16X, as low as 13.31X and at a median of 14.83X as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
4 Large Drugmakers to Keep an Eye On
AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. New immunology drugs, Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. AbbVie has several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
AbbVie has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2022 EPS has remained stable at $13.90 per share over the past 30 days. The stock has risen 5.2% this year so far. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: ABBV
Merck: Merck has a Zacks Rank of 3. The company boasts more than six blockbuster drugs in its portfolio, including the PD-L1 inhibitor, Keytruda, which is approved for several types of cancer and alone accounts for around 40% of its pharmaceutical sales. Keytruda, Gardasil vaccine and Bridion have been driving sales.
Keytruda has played an instrumental role in driving Merck’s revenue growth in the past few years. Keytruda is growing continuously and expanding into new indications and markets globally. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver.
Animal health and vaccine products are core growth drivers. Merck’s new COVID oral antiviral pill, Lagevrio has been a key top-line driver in 2022. Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth.
Shares of Merck have risen 13.2% in the past year. The Zacks Consensus Estimate for 2022 EPS has risen from $7.32 to $7.33 over the past 30 days.
Price and Consensus: MRK
Novartis: Novartis has a strong and diverse portfolio. Solid momentum in key brands like psoriasis drug, Cosentyx, a cardiovascular drug, Entresto, gene therapy, Zolgensma, the oncology portfolio, and the launch of Kesimpta continue to boost performance. The launch of additional drugs like Pluvicto, Piqray, Leqvio and Mayzent, and the label expansion of key drugs should also boost performance further. The pipeline progress is also impressive and the company has some promising candidates. Management’s focus on cost savings should boost the bottom line as well. Management recently decided to separate its generics business, Sandoz into a separate company to focus on its core pharma business.
The Zacks Consensus Estimate for 2022 EPS has remained stable at $6.06 per share over the past 30 days.Novartis is a #3 Ranked stock. This Swiss drugmaker’s stock has declined 7.7% this year so far.
Price and Consensus: NVS
AstraZeneca: AstraZeneca’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong, with several phase III data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthens its immunology franchise, adding several drugs that can boost its top line
AstraZeneca has a Zacks Rank #3. The Zacks Consensus Estimate for this British drugmaker’s 2022 EPS has remained stable at $3.31 over the past 30 days. The stock has declined 0.2% this year so far.
Price and Consensus: AZN
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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 large drugmakers, AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN are worth retaining in your portfolio. Forward 12-Month Price-to-Earnings (P/E) Ratio 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. AbbVie has several early/mid-stage candidates that have blockbuster potential. | Among the large drugmakers, AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN are worth retaining in your portfolio. Forward 12-Month Price-to-Earnings (P/E) Ratio 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. AbbVie has several early/mid-stage candidates that have blockbuster potential. | Among the large drugmakers, AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN are worth retaining in your portfolio. Forward 12-Month Price-to-Earnings (P/E) Ratio 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. AbbVie has several early/mid-stage candidates that have blockbuster potential. | Price and Consensus: ABBV Merck: Merck has a Zacks Rank of 3. Among the large drugmakers, AbbVie ABBV, Novartis NVS, Merck MRK and AstraZeneca AZN are worth retaining in your portfolio. Forward 12-Month Price-to-Earnings (P/E) Ratio 4 Large Drugmakers to Keep an Eye On AbbVie: AbbVie has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. |
23127.0 | 2022-09-16 00:00:00 UTC | We Ran A Stock Scan For Earnings Growth And AbbVie (NYSE:ABBV) Passed With Ease | ABBV | https://www.nasdaq.com/articles/we-ran-a-stock-scan-for-earnings-growth-and-abbvie-nyse%3Aabbv-passed-with-ease | nan | nan | Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like AbbVie (NYSE:ABBV). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.
How Fast Is AbbVie Growing?
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. AbbVie's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 37%. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.
Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. On the one hand, AbbVie's EBIT margins fell over the last year, but on the other hand, revenue grew. So it seems the future may hold further growth, especially if EBIT margins can remain steady.
In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.
NYSE:ABBV Earnings and Revenue History September 16th 2022
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for AbbVie?
Are AbbVie Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a US$252b company like AbbVie. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Notably, they have an enviable stake in the company, worth US$173m. We note that this amounts to 0.07% of the company, which may be small owing to the sheer size of AbbVie but it's still worth mentioning. This should still be a great incentive for management to maximise shareholder value.
Should You Add AbbVie To Your Watchlist?
AbbVie's earnings per share have been soaring, with growth rates sky high. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So based on this quick analysis, we do think it's worth considering AbbVie for a spot on your watchlist. We should say that we've discovered 2 warning signs for AbbVie (1 is a bit concerning!) that you should be aware of before investing here.
Although AbbVie certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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. | Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like AbbVie (NYSE:ABBV). NYSE:ABBV Earnings and Revenue History September 16th 2022 While we live in the present moment, there's little doubt that the future matters most in the investment decision process. How Fast Is AbbVie Growing? | Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like AbbVie (NYSE:ABBV). How Fast Is AbbVie Growing? AbbVie's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 37%. | Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like AbbVie (NYSE:ABBV). How Fast Is AbbVie Growing? AbbVie's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 37%. | AbbVie's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 37%. So based on this quick analysis, we do think it's worth considering AbbVie for a spot on your watchlist. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like AbbVie (NYSE:ABBV). |
23128.0 | 2022-09-15 00:00:00 UTC | Noteworthy Thursday Option Activity: ABBV, LAZ, GOGO | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-abbv-laz-gogo | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 21,587 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $142 strike call option expiring September 16, 2022, with 2,384 contracts trading so far today, representing approximately 238,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $142 strike highlighted in orange:
Lazard (Symbol: LAZ) saw options trading volume of 3,082 contracts, representing approximately 308,200 underlying shares or approximately 49.6% of LAZ's average daily trading volume over the past month, of 621,090 shares. Particularly high volume was seen for the $37 strike call option expiring October 21, 2022, with 1,858 contracts trading so far today, representing approximately 185,800 underlying shares of LAZ. Below is a chart showing LAZ's trailing twelve month trading history, with the $37 strike highlighted in orange:
And Gogo Inc (Symbol: GOGO) options are showing a volume of 3,364 contracts thus far today. That number of contracts represents approximately 336,400 underlying shares, working out to a sizeable 48.7% of GOGO's average daily trading volume over the past month, of 691,445 shares. Particularly high volume was seen for the $20 strike put option expiring November 18, 2022, with 2,010 contracts trading so far today, representing approximately 201,000 underlying shares of GOGO. Below is a chart showing GOGO's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for ABBV options, LAZ options, or GOGO 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 $142 strike call option expiring September 16, 2022, with 2,384 contracts trading so far today, representing approximately 238,400 underlying shares of ABBV. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 21,587 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 4.3 million shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 21,587 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 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 $142 strike highlighted in orange: Lazard (Symbol: LAZ) saw options trading volume of 3,082 contracts, representing approximately 308,200 underlying shares or approximately 49.6% of LAZ's average daily trading volume over the past month, of 621,090 shares. That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 4.3 million shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 21,587 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 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 $142 strike highlighted in orange: Lazard (Symbol: LAZ) saw options trading volume of 3,082 contracts, representing approximately 308,200 underlying shares or approximately 49.6% of LAZ's average daily trading volume over the past month, of 621,090 shares. That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 4.3 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $142 strike highlighted in orange: Lazard (Symbol: LAZ) saw options trading volume of 3,082 contracts, representing approximately 308,200 underlying shares or approximately 49.6% of LAZ's average daily trading volume over the past month, of 621,090 shares. Below is a chart showing GOGO's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for ABBV options, LAZ options, or GOGO options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 21,587 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). |
23129.0 | 2022-09-15 00:00:00 UTC | 7 Top-Rated Biotech Stocks to Buy for Q4 | ABBV | https://www.nasdaq.com/articles/7-top-rated-biotech-stocks-to-buy-for-q4 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A new White House program will likely boost the entire biotech industry. And it makes these seven names some outstanding biotech stocks to buy for the fourth quarter.
The new National Biotechnology and Biomanufacturing Initiative is designed to encourage biotech production in the U.S. An executive order signed by President Joe Biden on Sept. 12, was followed by a White House summit featuring Cabinet-level initiatives that will increase the nation’s biotech and biomanufacturing capabilities.
This week’s announcements come on the heels of Biden’s pledge to cure cancer. Clearly, biotech companies are going to be getting a lot of government support in the coming quarters.
What’s the best way to capitalize on this opportunity and maximize your profits? One way is to run biotech stocks through the Portfolio Grader, which is my tool to evaluate stocks on an “A” through “F” scale, based on the stock’s earnings, momentum and performance, among other factors.
Here are seven biotech stocks to buy for Q4 as the White House leans in hard on the biotech industry.
ADMA Biologics (ADMA)
Source: Gorodenkoff / Shutterstock.com
ADMA Biologics (NASDAQ:ADMA) is an end-to-end commercial biopharmaceutical company with offices in New Jersey and Florida. The company made waves in 2020 during the early months of the Covid-19 pandemic as its convalescent plasma won emergency use authorization to treat Covid-19 patients.
And while ADMA is a penny stock, it’s still showing impressive growth this year, up by more than 90% making it one of the hit biotech stocks to keep your eyes on.
Earnings in the second quarter were up by more than 90% from a year ago, to hit $33.91 million. That beat analysts’ expectations for $31.81 million. Earnings per share also were better than expected – the company reported a loss of 7 cents per share, but the Street was expecting a loss of 8 cents per share.
ADMA is known for its plasma-derived treatments for patients with compromised immune systems, and it also won approval from the FDA last year for an expanded manufacturing process to increase production of its Intravenous Immune Globulin (IVIG).
With strong earnings and momentum firmly on its side, ADMA stock has an “A” rating in the Portfolio Grader.
Geron (GERN)
Source: everything possible / Shutterstock.com
Geron (NASDAQ:GERN) is a biopharmaceutical company that specializes in the development of a telomerase inhibitor, imetelstat, in hematologic myeloid malignancies. It uses advanced technologies to exploit cancer cells’ dependency on telomerase, which is a type of ribonucleoprotein.
It currently is working through two Phase 3 clinical trials: one in low or intermediate-1 risk myelodysplastic syndromes, or lower risk MDS, and the other for intermediate or high-risk myelofibrosis, or refractory MF.
The California-based company is having even a better year than ADMA, with GERN stock up more than 134%. But while the stock price is rocketing higher, the company doesn’t quite match ADMA’s performance. Revenue of $73,000 in the second quarter was down nearly 32% from a year ago, and came in below analysts’ expectations for $114,600. A loss of 7 cents per share was 2 cents better than analysts predicted.
GERN stock also gets an “A” rating in the Portfolio Grader.
Prometheus Biosciences (RXDX)
Source: Hernan E. Schmidt / Shutterstock.com
After looking at two penny stocks, now we’re getting to one that’s a little more established, with a market capitalization of more than $2 billion.
Based in San Diego, Prometheus Biosciences (NASDAQ:RXDX) is a biotech company its mark targeting gastrointestinal diseases and now is expanding to treat autoimmune diseases. The company went public a little more than a year ago, pricing its stock at $19. Today you can get it for about $57.
Earnings for the second quarter showed how fast the company is growing. Revenue of $1.27 million was 289% greater than a year ago, and beat analysts’ expectations for $464,000. The company loss 86 cents per share, but that still beat expectations by 6 cents per share.
With the amazing growth in RXDX since its IPO, it’s no surprise that Prometheus Biosciences has an “A” rating in the Portfolio Grader.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). The Illinois-based company boasts a diversified product portfolio, despite having losing exclusivity for its Humira rheumatoid arthritis drug.
Earnings of $14.58 billion in the second quarter came in slightly less than the $14.64 billion that analysts expected. EPS of $3.37, however, was better than the Street’s expectation for $3.31.
Analysts are expecting AbbVie’s Skyrizi and Rinvoq drugs to replace Humira’s revenue, as the two drugs are collectively expected to generate more than $15 billion in annual revenue by 2025. That would be better than Humira at its peak. Skyrizi is used for moderate-to-severe plaque psoriasis as well as psoriatic arthritis, while Rinvoq is for severe rheumatoid arthritis.
ABBV stock is up only 3% so far this year, but that’s still much better than the major indices, and it also boasts a dividend yield of 4%. So it warrants an “A” rating in the Portfolio Grader.
Voyager Therapeutics (VYGR)
Source: luchschenF / Shutterstock.com
There’s a lot of brainpower in Cambridge, Massachusetts, where gene therapy company Voyager Therapeutics (NASDAQ:VYGR) is headquartered. The company’s Tracer platform identifies way to target tissues and cells with more specificity and at lower doses – and hopefully, with reduced risk than conventional treatments.
The company recently announced its top development priorities include treatments for Parkinson’s disease, amyotrophic lateral sclerosis (ALS), and Alzheimer’s disease.
The stock is up 143% so far this year, even after a 7% drop since announcing its second quarter earnings. Revenue of $712,000 was far below the $6.03 million that analysts expected. The loss of 50 cents per share worse than what analysts predicted, which was an EPS loss of 42 cents.
Even so, there’s still a lot to like about Voyager, and it has a “B” rating in the Portfolio Grader.
SIGA Technologies (SIGA)
Source: Shutterstock
SIGA Technologies (NASDAQ:SIGA) is one of the biotech companies working on the monkeypox outbreak, which so far has affected more than 22,700 people in the U.S.
SIGA’s monkeypox treatment is called TPOXX. SIGA CEO Phil Gomez says the company is prepared to increase production to meet the demand in the U.S. and elsewhere. TPOXX is also part of an experimental treatment protocol in the Central African Republic, CAR. SIGA is providing up to 500 doses to the study, sponsored by Oxford University in the U.K.
Earnings for the second quarter included revenue of $16.67 million, up from $8.7 million a year ago.
SIGA stock is up 75% so far this year and has an “A” rating in the Portfolio Grader.
Axsome Therapeutics (AXSM)
Source: Pavel Kapysh/Shutterstock.com
Axsome Therapeutics (NASDAQ:AXSM) focuses on treatments for the central nervous system, including depression, Alzheimer’s disease, migraine, narcolepsy and fibromyalgia. It bought Sunosi, which treats daytime sleepiness, from Jazz Pharmaceuticals (NASDAQ:JAZZ) in May.
Earnings in the second quarter came in better than expected, with revenue of $8.82 million and a loss per share of $1.06 better than analysts’ predictions of $8.29 and a loss per share of $1.12.
Axsome stock has had a big year, up more than 63%. Combined with its earnings win and the Biden administration’s focus on biotechs, AXSM stock is worthy of its “B” rating in the Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). Analysts are expecting AbbVie’s Skyrizi and Rinvoq drugs to replace Humira’s revenue, as the two drugs are collectively expected to generate more than $15 billion in annual revenue by 2025. ABBV stock is up only 3% so far this year, but that’s still much better than the major indices, and it also boasts a dividend yield of 4%. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). Analysts are expecting AbbVie’s Skyrizi and Rinvoq drugs to replace Humira’s revenue, as the two drugs are collectively expected to generate more than $15 billion in annual revenue by 2025. ABBV stock is up only 3% so far this year, but that’s still much better than the major indices, and it also boasts a dividend yield of 4%. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). Analysts are expecting AbbVie’s Skyrizi and Rinvoq drugs to replace Humira’s revenue, as the two drugs are collectively expected to generate more than $15 billion in annual revenue by 2025. ABBV stock is up only 3% so far this year, but that’s still much better than the major indices, and it also boasts a dividend yield of 4%. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). Analysts are expecting AbbVie’s Skyrizi and Rinvoq drugs to replace Humira’s revenue, as the two drugs are collectively expected to generate more than $15 billion in annual revenue by 2025. ABBV stock is up only 3% so far this year, but that’s still much better than the major indices, and it also boasts a dividend yield of 4%. |
23130.0 | 2022-09-13 00:00:00 UTC | 3 Unstoppable Dividend Stocks to Buy in September | ABBV | https://www.nasdaq.com/articles/3-unstoppable-dividend-stocks-to-buy-in-september | nan | nan | When it comes to finding a great dividend stock to add to your investment portfolio, there's a wide variety of stocks to choose from. Some, for instance, have stronger underlying businesses than others.
We asked three Motley Fool contributors to pick unstoppable dividend stocks to buy in September. They chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Gilead Sciences (NASDAQ: GILD). Here's why.
1. Abbott Laboratories: Plenty of growth opportunities
David Jagielski: In June, dividend stalwart Abbott Laboratories announced it was paying a dividend for the 394th quarter in a row. That means Abbott's streak of paying quarterly dividends goes back to 1924. It's six quarters away from hitting the 100-year mark.
At first glance, the healthcare company's dividend yield of 1.8% may look humdrum given that the S&P 500 average yield is 1.7%. What gives Abbott an edge as a dividend stock is that it has an exceptional record of regularly increasing its dividend payments. It has raised its payouts annually for 50 years in a row, qualifying it for Dividend King status. Its current quarterly payment is 77% higher than five years ago, making it a top dividend growth stock to own. With a payout ratio of less than 40%, the company clearly has the free cash flow to safely cover the current payout as well as enough to continue increasing its dividend in the years ahead.
That stability is because the business itself is solid and diversified. The company generates revenue from a variety of sources, including diagnostics, medical devices, nutritional products, and pharmaceuticals. Whether it's the COVID-19 pandemic and the need for testing, the need for its devices to help patients manage diabetes, or its baby formula products, Abbott's business is both safe and full of growth opportunities given its diverse mix of products.
Investors shouldn't assume that Abbott can't grow without COVID-19 tests propping up its numbers. For the three-month period ending June 30, the company reported organic sales growth of 4.1% excluding COVID-19 testing revenue. Abbott's business isn't overly dependent on one area. The company's strength and potential growth opportunities make Abbott an underrated dividend stock.
2. AbbVie: More revenue-generating drugs in the pipeline
Keith Speights: This September pick shares a lot in common with Abbott Labs. Prior to 2013, AbbVie was part of Abbott. Since the spin-off, AbbVie has delivered an even more impressive dividend track record than its parent. The big drugmaker has boosted its dividend by more than 250%, and its dividend yield currently tops 4%.
But AbbVie offers more to investors than just its dividend. The stock has also delivered significant appreciation, with share prices nearly quadrupling over the past 10 years. Even though AbbVie stock hasn't been quite as hot so far in 2022, it's still easily beating the S&P 500's performance.
AbbVie has what it takes to beat the market over the next 10 years, too. Granted, the company faces biosimilar competition in the U.S. market for its Humira drug beginning in 2023. That's problematic since the autoimmune-disease fighter generated around 37% of AbbVie's total revenue in the second quarter of 2022.
However, the company has other products that can offset the anticipated sales decline for Humira. In particular, AbbVie thinks that newer autoimmune-disease drugs Rinvoq and Skyrizi will together generate peak sales even higher than Humira has. The big drugmaker also has other potential growth drivers. Antipsychotic medication Vraylar, blood cancer drug Venclexta, and migraine drugs Qlipta and Ubrelvy especially stand out.
3. Gilead Sciences: A resilient biotech giant
Prosper Junior Bakiny: Gilead Sciences has faced a series of regulatory-related adversities in the past three years. The company was counting on beefing up its lineup with key new approvals, but things haven't gone according to plan. Thankfully, Gilead has still been able to deliver decent financial results, partly thanks to its coronavirus medicine, Veklury.
While Gilead Sciences' lineup isn't what the company hoped it would be, that hasn't stopped the drugmaker from continuing to hike its dividends. Just in the past three years, the company's payouts have jumped by 15.9% -- an annual average of more than 5%. That ability to increase payouts even amid company-specific and worldwide economic troubles is one of the marks of an outstanding dividend stock.
Thankfully, Gilead's future looks better. For instance, the company remains a leader in the HIV drug market. In the second quarter, Biktarvy grew its market share by four percentage points year over year to 44%. Meanwhile, Gilead's Descovy also held a 44% share of the HIV prep market as of the second quarter, although its slice of the pie dropped by about 1 percentage point year over year due to generic competition.
Further, Gilead Sciences should strengthen its prescription drug portfolio. Last month, it earned approval in Europe for Sunlenca, a six-month, long-lasting HIV treatment (the first of its kind). The U.S. Food and Drug Administration (FDA) declined to grant the green light to this product back in March due to manufacturing issues. Gilead Sciences has since resolved the FDA's issues and reissued an application.
Gilead Sciences has many more HIV-related products coming through the pipeline. The company hopes to make bigger waves within the oncology market too. Despite recent troubles, Gilead should continue delivering solid financial results. With an above-average dividend yield of 4.5% and a very manageable cash payout ratio of 39%, this biotech stock appears to be a great dividend pick in September.
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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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. 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: More revenue-generating drugs in the pipeline Keith Speights: This September pick shares a lot in common with Abbott Labs. They chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Gilead Sciences (NASDAQ: GILD). Prior to 2013, AbbVie was part of Abbott. | They chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Gilead Sciences (NASDAQ: GILD). AbbVie: More revenue-generating drugs in the pipeline Keith Speights: This September pick shares a lot in common with Abbott Labs. Prior to 2013, AbbVie was part of Abbott. | They chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Gilead Sciences (NASDAQ: GILD). AbbVie: More revenue-generating drugs in the pipeline Keith Speights: This September pick shares a lot in common with Abbott Labs. Prior to 2013, AbbVie was part of Abbott. | They chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Gilead Sciences (NASDAQ: GILD). AbbVie: More revenue-generating drugs in the pipeline Keith Speights: This September pick shares a lot in common with Abbott Labs. Prior to 2013, AbbVie was part of Abbott. |
23131.0 | 2022-09-13 00:00:00 UTC | 3 No-Brainer Stocks to Buy in a Correction | ABBV | https://www.nasdaq.com/articles/3-no-brainer-stocks-to-buy-in-a-correction-1 | nan | nan | "Buy your straw hats in the winter." This adage is a terrific way to illustrate that buying quality stocks when demand is low will pay off when demand is up. As Warren Buffet once said, "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
Weaker demand for stocks usually means that investors are fearful and will sell high-quality, high-conviction shares at a discount. Maybe you've seen those "Chicken Little" headlines in the news sometimes, warning of trouble to come? That's a clear sign there is fear in the market. But that fear could spell opportunity for the long-term investor if you know where to look.
"Best-in-breed" companies that have massive moats and pay impressive yields are a great place to start, and Amazon (NASDAQ: AMZN), Intuitive Surgical (NASDAQ: ISRG), and AbbVie (NYSE: ABBV) are three fantastic examples. Let's take a closer look.
Amazon -- best-in-breed
Amazon is the undeniable leader in the cloud market. Amazon Web Services (AWS) holds 34% market share, well ahead of Microsoft Azure (NASDAQ: MSFT), and leaving Google Cloud (NASDAQ: GOOG)(NASDAQ: GOOGL) in the dust as shown below.
Source: Statista.
Inflation and expenses related to labor and logistics have seriously crimped retail margins, but AWS has saved the day. This illustrates the strength of Amazon's ecosystem.
AWS posted $38 billion in sales during the first half of 2022 and an impressive 32% operating margin. The rest of the company hasn't been profitable this year, but the headwinds won't last forever. The stock could take off when they subside, and Amazon can fire on all cylinders again.
Don't overlook Intuitive Surgical
Intuitive Surgical's robot-assisted system makes surgery less invasive, promotes faster recovery, and reduces complications. You may have already experienced or seen it in action since the technology is widely adopted. There are more than 7,000 of Intuitive's da Vinci Surgical Systems installed.
Aside from being the market leader, Intuitive makes a fantastic investment. More than 70% of its revenue is recurring, which means it comes from instruments, accessories, and services. As the machines become widely adopted, the company will make more money. Recurring revenue is vital as there are only so many hospitals in which to place these systems.
The company has a massive moat. Getting competing systems approved and in the field takes years and hefty investments. This moat allows Intuitive to make tremendous profits. The company boasts an operating margin near 30%, far outpacing other medical device companies as shown below.
ISRG Operating Margin (TTM) data by YCharts.
Intuitive has built an impressive war chest of cash because of these high margins to the tune of $8.18 billion, or 11% of the market cap, as of the last quarter. These traits should allow Intuitive to rebound sharply when the market turns.
Grab AbbVie's enticing yield
Solid dividend stocks can be like a feathery pillow helping you to sleep well every night. And if the stock is in the pharmaceutical industry, that's a bonus as this area is also resistant to recessions since the products are typically necessities. Consider the case of AbbVie; its shares have outpaced the S&P 500 by almost 20 points this year.
AbbVie makes arthritis drug Humira, one of the top-selling medications in the world. That's helped the company pay a tidy dividend, currently yielding more than 4% -- and AbbVie has raised that payout each year since the company's inception in 2013. During this fantastic run, the annual dividend per share has grown from $1.60 to $5.64.
AbbVie has a higher yield than many stocks because biosimilars for Humira will soon be available in the U.S. This will reduce AbbVie's revenue for its most popular drug. However, the company has reiterated its forecast for $15 billion in sales from two other drugs, Rinvoq and Skyrizi, by 2025 to fill the gap. The company has done a fantastic job building a drug portfolio that is much less reliant on Humira through organic growth, new products, and its acquisition of Allergen. These moves should keep the dividends flowing.
Bottom line
We are likely to see a number of headlines talking about short-term market movements and whether we have or haven't hit bottom. Remember, timing an exact market bottom isn't possible. Luckily, we don't have to do so. The most successful stockholders invest in fantastic companies consistently over time. These three may make excellent portfolio additions.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bradley Guichard has positions in AbbVie, Alphabet (C shares), Amazon, Intuitive Surgical, and Microsoft. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Intuitive Surgical, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Grab AbbVie's enticing yield Solid dividend stocks can be like a feathery pillow helping you to sleep well every night. "Best-in-breed" companies that have massive moats and pay impressive yields are a great place to start, and Amazon (NASDAQ: AMZN), Intuitive Surgical (NASDAQ: ISRG), and AbbVie (NYSE: ABBV) are three fantastic examples. Consider the case of AbbVie; its shares have outpaced the S&P 500 by almost 20 points this year. | "Best-in-breed" companies that have massive moats and pay impressive yields are a great place to start, and Amazon (NASDAQ: AMZN), Intuitive Surgical (NASDAQ: ISRG), and AbbVie (NYSE: ABBV) are three fantastic examples. Grab AbbVie's enticing yield Solid dividend stocks can be like a feathery pillow helping you to sleep well every night. Consider the case of AbbVie; its shares have outpaced the S&P 500 by almost 20 points this year. | "Best-in-breed" companies that have massive moats and pay impressive yields are a great place to start, and Amazon (NASDAQ: AMZN), Intuitive Surgical (NASDAQ: ISRG), and AbbVie (NYSE: ABBV) are three fantastic examples. Grab AbbVie's enticing yield Solid dividend stocks can be like a feathery pillow helping you to sleep well every night. Consider the case of AbbVie; its shares have outpaced the S&P 500 by almost 20 points this year. | "Best-in-breed" companies that have massive moats and pay impressive yields are a great place to start, and Amazon (NASDAQ: AMZN), Intuitive Surgical (NASDAQ: ISRG), and AbbVie (NYSE: ABBV) are three fantastic examples. Grab AbbVie's enticing yield Solid dividend stocks can be like a feathery pillow helping you to sleep well every night. Consider the case of AbbVie; its shares have outpaced the S&P 500 by almost 20 points this year. |
23132.0 | 2022-09-13 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-2 | nan | nan | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006.
The fund is sponsored by First Trust Advisors. It has amassed assets over $3.41 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.22%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 19.70% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 8.91% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV).
The top 10 holdings account for about 55.68% 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 5.05% so far this year and was up about 15.41% in the last one year (as of 09/13/2022). In the past 52-week period, it has traded between $32.76 and $39.18.
The ETF has a beta of 0.84 and standard deviation of 24.23% 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 $53.66 billion in assets, Vanguard Value ETF has $100.65 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 8.91% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 8.91% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 8.91% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). 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 8.91% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006. |
23133.0 | 2022-09-12 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-5 | nan | nan | AbbVie (ABBV) closed at $142.24 in the latest trading session, marking a +0.58% move from the prior day. This change lagged the S&P 500's 1.06% gain on the day. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the drugmaker had lost 0.83% over the past month, outpacing the Medical sector's loss of 1.69% and the S&P 500's loss of 1.14% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 7.81%. Meanwhile, our latest consensus estimate is calling for revenue of $15.06 billion, up 4.99% from the prior-year quarter.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.90 per share and revenue of $59.23 billion. These results would represent year-over-year changes of +9.45% and +5.4%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AbbVie currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 10.17. This represents a discount compared to its industry's average Forward P/E of 12.79.
Also, we should mention that ABBV has a PEG ratio of 4.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $142.24 in the latest trading session, marking a +0.58% move from the prior day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.90 per share and revenue of $59.23 billion. AbbVie will be looking to display strength as it nears its next earnings release. | On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 7.81%. AbbVie (ABBV) closed at $142.24 in the latest trading session, marking a +0.58% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. | AbbVie (ABBV) closed at $142.24 in the latest trading session, marking a +0.58% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 7.81%. | On that day, AbbVie is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 7.81%. AbbVie currently has a Zacks Rank of #3 (Hold). AbbVie (ABBV) closed at $142.24 in the latest trading session, marking a +0.58% move from the prior day. |
23134.0 | 2022-09-12 00:00:00 UTC | AbbVie a Top Ranked SAFE Dividend Stock With 4.0% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-a-top-ranked-safe-dividend-stock-with-4.0-yield-abbv | nan | nan | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.21% of the SPDR S&P Dividend ETF (SDY), which holds $269,869,124 worth of ABBV shares.
AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S. Solid return — hefty yield and strong DividendRank characteristics; A. Accelerating amount — consistent dividend increases over time; F. Flawless history — never a missed or lowered dividend; E. Enduring — at least two decades of dividend payments.
The annualized dividend paid by AbbVie Inc is $5.64/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/13/2022. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson (JNJ), and Eli Lilly (LLY).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.21% of the SPDR S&P Dividend ETF (SDY), which holds $269,869,124 worth of ABBV shares. | AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.21% of the SPDR S&P Dividend ETF (SDY), which holds $269,869,124 worth of ABBV shares. | According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.21% of the SPDR S&P Dividend ETF (SDY), which holds $269,869,124 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.21% of the SPDR S&P Dividend ETF (SDY), which holds $269,869,124 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. |
23135.0 | 2022-09-12 00:00:00 UTC | Should You Invest in the Invesco Dynamic Pharmaceuticals ETF (PJP)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dynamic-pharmaceuticals-etf-pjp-3 | nan | nan | Looking for broad exposure to the Healthcare - Pharma segment of the equity market? You should consider the Invesco Dynamic Pharmaceuticals ETF (PJP), a passively managed exchange traded fund launched on 06/23/2005.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $321.10 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index before fees and expenses.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.02%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ).
The top 10 holdings account for about 50.89% of total assets under management.
Performance and Risk
So far this year, PJP has lost about -6.44%, and is down about -4.79% in the last one year (as of 09/12/2022). During this past 52-week period, the fund has traded between $69.08 and $83.54.
The ETF has a beta of 0.72 and standard deviation of 21.78% for the trailing three-year period, making it a high risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PJP is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
IShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index and the VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index. IShares U.S. Pharmaceuticals ETF has $421.08 million in assets, VanEck Pharmaceutical ETF has $561.23 million. IHE has an expense ratio of 0.39% and PPH charges 0.35%.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. | Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report You should consider the Invesco Dynamic Pharmaceuticals ETF (PJP), a passively managed exchange traded fund launched on 06/23/2005. | Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report Alternatives Invesco Dynamic Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report Investors might also want to consider some other ETF options in the space. |
23136.0 | 2022-09-11 00:00:00 UTC | Best Stocks To Buy Now? 4 Biotech Stocks In Focus | ABBV | https://www.nasdaq.com/articles/best-stocks-to-buy-now-4-biotech-stocks-in-focus | nan | nan | 4 Biotech Stocks For Your Watchlist This Week
Biotechnology stocks, also known as biotech stocks, are shares in publicly traded companies that are involved in the medical and agricultural applications of biotechnology. Biotech stocks can be volatile, but they have the potential to offer investors significant returns. The NASDAQ Biotechnology Index (NASDAQ: NBI), which tracks the performance of Biotech stocks trading on the Nasdaq exchange, has outperformed the S&P 500 by approximately 8% over the past decade.
Additionally, biotech stocks tend to be more volatile than the broader market due to the sector’s reliance on regulatory approvals and scientific breakthroughs. However, biotech stocks also offer investors the opportunity to participate in the growth of groundbreaking new industries such as gene therapy and regenerative medicine. As a result, biotech stocks can be an attractive investment for risk-tolerant investors. Given this, here are four top biotech stocks to check out in the stock market this week.
Best Biotech Stocks To Buy [Or Sell] Now
AbbVie Inc. (NYSE: ABBV)
Pfizer Inc. (NYSE: PFE)
Biogen Inc. (NASDAQ: BIIB)
Amgen Inc. (NASDAQ: AMGN)
AbbVie (ABBV Stock)
First, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. In brief, AbbVie discovers, develops, and markets both biologic and small molecule drugs. The company focuses on treating conditions such as chronic autoimmune diseases, cancer, virology, and neuroscience. AbbVie Inc. was founded in 2013 after AbbVie split from Abbott Laboratories (NYSE: ABT). Aside from that, just this past week the company announced it declared its quarterly dividend.
In detail, AbbVie’s Board of Directors declared a quarterly cash dividend of $1.41 per share. What’s more, since the company was founded in 2013, AbbVie has increased its dividend to shareholders by more than 250%. Separate from that, in July the company announced a beat for its 2nd quarter 2022 financial results. Getting straight to it, AbbVie reported revenue for the quarter of $14.6 billion. Meanwhile, they posted earnings of $3.51 per share. For context, the analysts’ consensus estimates for the quarter were earnings per share of $3.42 and revenue of $14.6 billion.
So far in 2022, ABBV stock has outperformed the broader markets up 4.43% on the year. Going into the trading week, shares of ABBV stock are trading at $141.40 per share. With this in mind, will you be adding ABBV stock to your list of biotech stocks to watch?
Source: TD Ameritrade TOS
[Read More] 4 Cannabis Stocks To Watch For September 2022
Pfizer (PFE Stock)
Next, Pfizer Inc. (PFE) is an American multinational pharmaceutical corporation. For starters, Pfizer develops and produces medicines and vaccines for a wide range of medical disciplines, including immunology, oncology, cardiology, diabetology/endocrinology, and neurology. Today, Pfizer offers its shareholders an annual dividend yield of 3.34%. In July, Pfizer reported stronger-than-expected second-quarter 2022 financial results.
Diving in, the company posted earnings of $2.04 per share, with revenue of $27.7 billion. This beat analysts’ estimates that were earnings of $1.75 per share and revenue of $26.0 billion. Additionally, Pfizer reported an increase in revenue by 46.2% during the same period, in 2021. What’s more, the company reaffirmed its full-year 2022 earnings outlook. Specifically, the company said it estimates 2022 earnings of $6.30 to 6.45 per share. Meanwhile, the company also reaffirmed its revenue outlook of $98.0 billion to $102.0 billion.
Moving along, shares of PFE stock are down over 15% year-to-date. Pfizer stock is going to be opening the trading week at $48.00 per share. Given the strength of its recent quarter, could now be an opportunity to buy Pfizer stock for your long-term portfolio?
Source: TD Ameritrade TOS
Biogen (BIIB Stock)
Biogen Inc. (BIIB) is a global biotech company based in the United States. In short, the company discovers, develops, manufactures, and markets innovative therapies for patients living with serious neurological and neurodegenerative diseases. Also in July, Biogen reported better-than-estimated second quarter 2022 earnings results.
In the report, the biotech company posted earnings per share of $5.25 per share and revenue of $2.6 billion. Meanwhile, Wall Street’s estimates for the quarter were earnings of $4.09 per share and revenue of $2.5 billion. Separate from that, Biogen announced that it estimates 2022 earnings of $15.25 to $16.75 per share. They also gave guidance on revenue in the range of $9.9 billion and $10.10 billion.
Though shares of BIIB stock are down 13% since the start of the year, they have rebounded more than 5% just last week. BIIB stock is set to open this trading week at $211.84 per share. All in all, is Biogen stock a good biotech stock to buy right now?
Source: TD Ameritrade TOS
[Read More] 2 Top Undervalued Stocks To Watch In September 2022
Amgen (AMGN Stock)
Last but not least, Amgen Inc. (AMGN) is a global biopharmaceutical company. Amgen focuses on the development, manufacture, and marketing of human therapeutics. In addition, Amgen has six main areas of focus: oncology, nephrology, neuroscience, inflammatory conditions, bone health, and cardiovascular disease.
Currently, Amgen shareholders enjoy an annual dividend yield of 3.20%. In August, the company posted stronger-than-expected Q2 2022 financial results. Diving in, AMGN reported second-quarter earnings of $4.65 per share. In addition, the company notched in revenue of $6.6 billion for Q2. This is versus the consensus earnings estimate of $4.40 per share and revenue of $6.5 billion.
Additionally, Amgen reaffirmed its guidance and continues to estimate 2022 earnings of $17 to $18 per share. Aside from that, Amgen now estimates revenue in the range of $25.50 billion to $26.40 billion. Continuing on, shares of AMGN stock are set to open this trading week at $247.69 per share. All in all, do you think Amgen deserves a spot on your biotech stocks watchlist?
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. | Best Biotech Stocks To Buy [Or Sell] Now AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Biogen Inc. (NASDAQ: BIIB) Amgen Inc. (NASDAQ: AMGN) AbbVie (ABBV Stock) First, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. In brief, AbbVie discovers, develops, and markets both biologic and small molecule drugs. AbbVie Inc. was founded in 2013 after AbbVie split from Abbott Laboratories (NYSE: ABT). | Best Biotech Stocks To Buy [Or Sell] Now AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Biogen Inc. (NASDAQ: BIIB) Amgen Inc. (NASDAQ: AMGN) AbbVie (ABBV Stock) First, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. In brief, AbbVie discovers, develops, and markets both biologic and small molecule drugs. AbbVie Inc. was founded in 2013 after AbbVie split from Abbott Laboratories (NYSE: ABT). | Best Biotech Stocks To Buy [Or Sell] Now AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Biogen Inc. (NASDAQ: BIIB) Amgen Inc. (NASDAQ: AMGN) AbbVie (ABBV Stock) First, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. In brief, AbbVie discovers, develops, and markets both biologic and small molecule drugs. AbbVie Inc. was founded in 2013 after AbbVie split from Abbott Laboratories (NYSE: ABT). | Best Biotech Stocks To Buy [Or Sell] Now AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Biogen Inc. (NASDAQ: BIIB) Amgen Inc. (NASDAQ: AMGN) AbbVie (ABBV Stock) First, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. Getting straight to it, AbbVie reported revenue for the quarter of $14.6 billion. In brief, AbbVie discovers, develops, and markets both biologic and small molecule drugs. |
23137.0 | 2022-09-09 00:00:00 UTC | Daily Dividend Report: VAC,ABBV,AMAT,KRC,VICI | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-vacabbvamatkrcvici | nan | nan | Marriott Vacations Worldwide today announced its board of directors authorized a quarterly cash dividend of $0.62 per share of common stock. The dividend is payable on or around October 6, 2022 to shareholders of record as of the close of business on September 22, 2022.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. The cash dividend is payable November 15, 2022, to stockholders of record at the close of business on October 14, 2022. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 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.
Applied Materials today announced that its Board of Directors has approved a quarterly cash dividend of $0.26 per share payable on the company's common stock. The dividend is payable on Dec. 15, 2022 to shareholders of record as of Nov. 25, 2022. The quarterly cash dividend is a key component of Applied's capital allocation strategy. In the third quarter of fiscal 2022, Applied returned $1.23 billion to shareholders through dividends and share repurchases. The company had approximately $6.4 billion remaining in its share buyback authorization at the end of that period.
Kilroy Realty announced today that its board of directors declared a regular quarterly cash dividend of $0.54 per common share payable on October 12, 2022 to stockholders of record on September 30, 2022. The dividend is equivalent to an annual rate of $2.16 per share and is a 3.8% increase from the previous annualized dividend level of $2.08 per share.
VICI Properties announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.39 per share of common stock for the period from July 1, 2022 to September 30, 2022, representing an annualized amount of $1.56 per share and an 8.3% increase from the current dividend rate. The dividend will be payable on October 6, 2022 to stockholders of record as of the close of business on September 22, 2022.
VIDEO: Daily Dividend Report: VAC,ABBV,AMAT,KRC,VICI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 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. |
23138.0 | 2022-09-09 00:00:00 UTC | Is Most-Watched Stock AbbVie Inc. (ABBV) Worth Betting on Now? | ABBV | https://www.nasdaq.com/articles/is-most-watched-stock-abbvie-inc.-abbv-worth-betting-on-now-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 -1.1% over the past month versus the Zacks S&P 500 composite's -3.1% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.90 points to a change of +9.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
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 $15.06 billion for the current quarter points to a year-over-year change of +5%. The $59.23 billion and $55.92 billion estimates for the current and next fiscal years indicate changes of +5.4% and -5.6%, 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
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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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. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.3% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $14.58 billion in the last reported quarter, representing a year-over-year change of +4.5%. 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 lost 2.3% 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 lost 2.3% over this period. For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. | For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% 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 lost 2.3% over this period. |
23139.0 | 2022-09-09 00:00:00 UTC | Revance (RVNC) Gets FDA Nod for Anti-Wrinkle Product, Stock Up | ABBV | https://www.nasdaq.com/articles/revance-rvnc-gets-fda-nod-for-anti-wrinkle-product-stock-up | nan | nan | Revance Therapeutics RVNC shares were up 21.6% on Thursday after it announced FDA approval for its DaxibotulinumtoxinA for Injection (DAXI), a rival treatment to AbbVie’s ABBV blockbuster Botox injections for improving frown lines.
DAXI will be marketed as Daxxify for injection for the temporary improvement of moderate-to-severe frown lines, also called glabellar lines, in adults
Daxxify is the first and only neuromodulator product stabilized with Peptide Exchange Technology, which is devoid of both human serum albumin and animal-based components that most other modulators use. Revance claims this long-lasting, peptide-enhanced product is a disruptive innovation in neuromodulator product formulation in more than 30 years
Revance Therapeutics’ stock has risen 55% this year so far against a decrease of 24% for the industry.
Image Source: Zacks Investment Research
Daxxify’s approval was based on 36-week efficacy data from the SAKURA phase III clinical studies, which were conducted on more than 2,700 patients. The data from the studies showed that the neuromodulator was well tolerated and achieved clinically significant improvement with long-lasting results. The data demonstrated a median duration of six months and up to nine months for some patients. It showed that DAXXIFY could deliver year-long results with as few as two treatments per year compared to a 3 to 4-month duration profile with conventional neuromodulators, including Botox. Revance did not disclose the price of its injection.
AbbVie’s Botox is approved for several therapeutic and aesthetic indications. It brought in billions of dollars in sales and effectively fought competition. Other than frown lines, Botox injection is used for other cosmetic indications as well. Some analysts believe Daxxify is a big competitive threat to the aesthetics market leader, Botox, due to its long-lasting benefits. However, some analysts believe that Revance could have a tough time capturing market share from Botox loyalists. AbbVie acquired Botox as part of its Allergan buyout back in 2020. Botox (cosmetic plus therapeutic) sales totaled more than $1.9 billion in the first half of 2022.
Back in 2020, the FDA had delayed its decision on Daxxify’s biologics license application (BLA) as it was unable to conduct the required inspection of the company’s Northern California manufacturing facility due to pandemic-related travel restrictions. However, this communication was not a complete response letter. The FDA did not indicate any other review issues.
Revance is also evaluating DAXI in mid-stage studies for the full upper face, forehead lines and crow’s feet, as well as in two therapeutic indications — cervical dystonia and adult upper limb spasticity.
Zacks Rank & Stocks to Consider
Revance Therapeutics currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same sector are Morphic MORF and Agenus AGEN, both carrying a Zacks Rank #1 at present.
In the past 60 days, estimates for Morphic’s 2022 loss per share have narrowed from $3.47 to $1.75. Loss estimates for 2023 have narrowed from $3.96 to $3.77 during the same period. Shares of Morphic have lost 36.5% in the year-to-date period.
Earnings of Morphic beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 48.29%, on average.
Estimates for Agenus’ 2022 bottom line have narrowed from a loss of 89 cents to 70 cents in the past 60 days. Loss estimates for 2023 have narrowed from 64 cents per share to 60 cents per share over the same time frame. Agenus’ stock is down 18.6% in the year-to-date period.
Earnings of Agenus beat estimates in three of the last four quarters while missing in one. The stock delivered a four-quarter average negative surprise of 12.02%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
Agenus Inc. (AGEN): Free Stock Analysis Report
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Morphic Holding, Inc. (MORF): 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. | Revance Therapeutics RVNC shares were up 21.6% on Thursday after it announced FDA approval for its DaxibotulinumtoxinA for Injection (DAXI), a rival treatment to AbbVie’s ABBV blockbuster Botox injections for improving frown lines. AbbVie’s Botox is approved for several therapeutic and aesthetic indications. AbbVie acquired Botox as part of its Allergan buyout back in 2020. | Revance Therapeutics RVNC shares were up 21.6% on Thursday after it announced FDA approval for its DaxibotulinumtoxinA for Injection (DAXI), a rival treatment to AbbVie’s ABBV blockbuster Botox injections for improving frown lines. AbbVie’s Botox is approved for several therapeutic and aesthetic indications. AbbVie acquired Botox as part of its Allergan buyout back in 2020. | Revance Therapeutics RVNC shares were up 21.6% on Thursday after it announced FDA approval for its DaxibotulinumtoxinA for Injection (DAXI), a rival treatment to AbbVie’s ABBV blockbuster Botox injections for improving frown lines. AbbVie’s Botox is approved for several therapeutic and aesthetic indications. AbbVie acquired Botox as part of its Allergan buyout back in 2020. | AbbVie’s Botox is approved for several therapeutic and aesthetic indications. Revance Therapeutics RVNC shares were up 21.6% on Thursday after it announced FDA approval for its DaxibotulinumtoxinA for Injection (DAXI), a rival treatment to AbbVie’s ABBV blockbuster Botox injections for improving frown lines. AbbVie acquired Botox as part of its Allergan buyout back in 2020. |
23140.0 | 2022-09-08 00:00:00 UTC | Exxon (XOM), AbbVie (ABBV): Befriend These 2 Dividend Aristocrat Stocks | ABBV | https://www.nasdaq.com/articles/exxon-xom-abbvie-abbv%3A-befriend-these-2-dividend-aristocrat-stocks | nan | nan | Exxon Mobil (NYSE:XOM) and AbbVie (NYSE:ABBV) are popular dividend aristocrats that have increased their annual dividend payments for decades. Both companies are a member of the S&P Dividend Aristocrats Index. The index tracks companies that have annually increased their dividend for at least 25 years in a row. Strong fundamentals and robust cash flows add to the appeal of these stocks.
Let’s delve deeper into why Exxon and AbbVie could be the safety plugs for your investment portfolio in the rest of 2022:
Exxon Mobil (NYSE:XOM) Stock
Having had a glorious record of raising annual dividends for 39 straight years, Exxon had distributed $7.6 billion to shareholders, including dividends worth around $3.7 billion in the second quarter of 2022. The energy company offers a dividend yield of 3.68% along with a healthy dividend payout ratio of 35.73%.
XOM delivered impressive second-quarter 2022 results on the back of high oil prices, increased production, realizations, and margins, as well as tightened cost control initiatives. The company’s mammoth balance sheet boasted cash and cash equivalents of $18.86 billion as of June end.
Is XOM a Buy, Sell or Hold?
As of now, Exxon stock seems very appealing to scoop up. Wall Street is optimistic about the prospects of XOM stock and has a Strong Buy consensus rating based on 10 Buys, and two Holds. Also, XOM stock’s average price target of $112.21, signals a 19.2% upside potential from its current level.
XOM stock scores 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform the market. Moreover, financial bloggers are 83% Bullish on Exxon stock, compared to the sector average of 72%.
As per TipRanks, retail investors, too, look bullish on the stock, as they increased their holdings in XOM stock by 1.2% in the last 30 days.
AbbVie (NYSE:ABBV) Stock
Abbvie has an impressive track record of 50 consecutive years of dividend increases. It also boasts an attractive dividend yield of nearly 4.06%. The dividend payout ratio of 41.96% is also worth mentioning.
The drugmaker reported encouraging results for the second quarter of 2022. It has been witnessing a rise in the demand for Skyrizi and Rinvoq. The company is on track to deliver combined global annual net revenues of $7.5 billion for Skyrizi and Rinvoq. Moreover, significant progress in ABBV’s product pipeline instills optimism among investors.
Is AbbVie a Good Stock to Buy Now?
At the moment, ABBV stock seems to be a decent option to invest in. Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on seven Buys, five Holds, and one Sell. TipRanks data shows that hedge funds are apprehensive about the company, as they sold 1.1 million shares of ABBV stock in the last quarter.
On the contrary, financial bloggers are 91% Bullish on ABBV stock, compared to the sector average of 68%. Adding to the optimism, ABBV stock’s average price target of $160.54, indicates the stock can rise 15.7% from its current level.
Final Thoughts
Dividend aristocrats are a wise way to deal with market upheavals as they provide a stable income source. Amid the turbulent market backdrop, the 9.1% drop in the S&P 500 Dividend Aristocrats index has outperformed the S&P 500 index’s 16.5% fall so far in 2022. Giving investors more reasons to invest in them, Exxon and AbbVie have managed to beat the S&P 500 Dividend Aristocrats index by gaining 52.8% and 5.4%, respectively, in the year-to-date period.
Read full Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TipRanks data shows that hedge funds are apprehensive about the company, as they sold 1.1 million shares of ABBV stock in the last quarter. Giving investors more reasons to invest in them, Exxon and AbbVie have managed to beat the S&P 500 Dividend Aristocrats index by gaining 52.8% and 5.4%, respectively, in the year-to-date period. Exxon Mobil (NYSE:XOM) and AbbVie (NYSE:ABBV) are popular dividend aristocrats that have increased their annual dividend payments for decades. | Exxon Mobil (NYSE:XOM) and AbbVie (NYSE:ABBV) are popular dividend aristocrats that have increased their annual dividend payments for decades. AbbVie (NYSE:ABBV) Stock Abbvie has an impressive track record of 50 consecutive years of dividend increases. Adding to the optimism, ABBV stock’s average price target of $160.54, indicates the stock can rise 15.7% from its current level. | Exxon Mobil (NYSE:XOM) and AbbVie (NYSE:ABBV) are popular dividend aristocrats that have increased their annual dividend payments for decades. Let’s delve deeper into why Exxon and AbbVie could be the safety plugs for your investment portfolio in the rest of 2022: Exxon Mobil (NYSE:XOM) Stock Having had a glorious record of raising annual dividends for 39 straight years, Exxon had distributed $7.6 billion to shareholders, including dividends worth around $3.7 billion in the second quarter of 2022. AbbVie (NYSE:ABBV) Stock Abbvie has an impressive track record of 50 consecutive years of dividend increases. | Let’s delve deeper into why Exxon and AbbVie could be the safety plugs for your investment portfolio in the rest of 2022: Exxon Mobil (NYSE:XOM) Stock Having had a glorious record of raising annual dividends for 39 straight years, Exxon had distributed $7.6 billion to shareholders, including dividends worth around $3.7 billion in the second quarter of 2022. Adding to the optimism, ABBV stock’s average price target of $160.54, indicates the stock can rise 15.7% from its current level. Exxon Mobil (NYSE:XOM) and AbbVie (NYSE:ABBV) are popular dividend aristocrats that have increased their annual dividend payments for decades. |
23141.0 | 2022-09-08 00:00:00 UTC | 7 S&P 500 Stocks to Buy With Superior Fundamentals | ABBV | https://www.nasdaq.com/articles/7-sp-500-stocks-to-buy-with-superior-fundamentals | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Starting the session following Labor Day weekend in the red, it’s clear that even so-called S&P 500 stocks to buy are feeling the heat. Toward the end of August, Federal Reserve chair Jerome Powell presented a less-than-encouraging picture for future monetary policy. Essentially, Powell remains concerned about multidecade highs in inflation. Therefore, he aims to tackle it through higher interest rates.
Fundamentally, then, even the best S&P 500 stocks to buy face a major paradigm shift. For decades, the U.S. economy enjoyed the fruits of an accommodative or dovish monetary policy. During the initial onslaught of the coronavirus pandemic, the Fed implemented an inflationary directive. Now, it needs to scale back the monetary spigot, which implies a future trajectory of deflation.
Unfortunately for many public companies, deflation is a killer. Under this scenario, the dollar rises in relative value over time. Therefore, investors need to be compelled with an extraordinary opportunity to set aside what are effectively guaranteed returns by doing nothing and sitting on greenbacks. However, some S&P 500 stocks to buy earn the underlying title because of their exceptional relevance.
Below are seven blue chips making the rarefied list that you should consider.
Ticker Company Price
CVX Chevron $154.16
ABBV AbbVie $140.06
PEP PepsiCo $171.71
COST CostCo $527.46
GS Goldman Sachs $332.67
WM Waste Management $173.00
Chevron (CVX)
Source: Jeff Whyte / Shutterstock.com
Earlier this year, Chevron (NYSE:CVX) and other oil and natural gas firms enjoyed the most cynical of tailwinds. When Russia invaded Ukraine, it understandably set off a chain of geopolitical reverberations. Long story short, western powers imposed severe sanctions on Russia. Predictably, the Kremlin responded in kind, holding massive amounts of global energy supplies effectively hostage.
In theory, Powell’s directive to attack inflation through increased borrowing costs should be a net negative for CVX. With the purchasing power of the dollar likely to rise in a deflationary environment, Chevron and similar S&P 500 stocks to buy would not enjoy a repeat of the bonanza earlier this year. However, Moscow will apparently not miss an opportunity to miss an opportunity.
Recently, the Kremlin stated that it will not resume natural gas flows to Europe via the Nord Stream 1 pipeline unless the west lifts its sanctions. However, it’s a roundabout admission that the sanctions are imposing pain on the Russian economy.
Still, Moscow seems intent on riding the crisis of its own doing to the bitter end. Therefore, CVX remains one of the best S&P 500 stocks to buy.
AbbVie (ABBV)
For anyone interested in studying behavioral analytics associated with the Covid-19 crisis, Morning Consult provided an indelible resource. It reports that as of June 2022, a majority of Americans feel comfortable socializing with others in public. This profile represents a dramatic pivot from April 2020, where between 13% to 15% felt the same way.
Stated differently, American society currently paves a comeback trail to normal social routines. Fundamentally, this backdrop should benefit AbbVie (NYSE:ABBV). A pharmaceutical giant, AbbVie became very intriguing when it acquired Allergan. Now, Allergan makes Botox, which via injections temporarily relaxes facial muscles that cause wrinkles.
Because Covid-19 fears have largely faded into the rearview mirror, elective procedures should rise in demand. When you consider that more people are willing to socialize with others, looking one’s best suddenly takes on greater importance. Thus, even with current economic challenges, ABBV may be one of the best S&P 500 stocks to buy.
PepsiCo (PEP)
Source: FotograFFF / Shutterstock
One of the most common pieces of advice that you may encounter regarding a stock market selloff is to batten down the hatches. However, humans are not robots. No matter what else may be going on, everyone needs to blow off some steam.
Indeed, the concept is scientific. Per Northwestern Medicine: “Research shows that after a cheat meal, the body increases its metabolism, causing you to burn calories faster. This is caused by increased levels of leptin, a hormone secreted by fat cells and responsible for maintaining energy balance in the body.” It’s a perfect segue to mention beverage maker PepsiCo (NASDAQ:PEP).
Essentially, PepsiCo benefits from the cheap thrills thesis. With economic pressures rising, people may turn to certain vices as a blowoff valve. Of course, some vices impose more harm than others. With Pepsi, a can of caffeinated cola can help improve mood and focus. Therefore, PEP is well worth putting on your radar of S&P 500 stocks to buy.
Costco (COST)
Source: ilzesgimene / Shutterstock.com
If you’re unsure where the economy is heading — whether inflation, deflation or something else entirely — you’re not alone. The new normal continues to impose head-scratching dynamics on the regular. Nevertheless, if you want to put your money to work during these ambiguous times, Costco (NASDAQ:COST) is one of the best S&P 500 stocks to buy.
Primarily, it comes down to the core customer base. Out of the major big-box retailers, Costco features the highest average shopper income at $125,000 a year. As well, Costco shoppers trend on the younger end of the spectrum, with the average shopper being under 40 years. In contrast, it’s not uncommon to find big-box retailers skew toward the older and less-compensated demographics.
Fundamentally, Costco fortuitously structures its business to help consumers mitigate inflation through bulk purchases. However, it may also perform (relatively) well during deflationary cycles. Again, the company’s ties to a wealthier demographic makes COST one of the S&P 500 stocks to buy.
Goldman Sachs (GS)
Source: rafapress / Shutterstock.com
On paper, Goldman Sachs (NYSE:GS) presents an intriguing case for S&P 500 stocks to buy for investors anticipating more inflation. For one thing, the company offers a decent dividend yield of 3%. With so many public entities printing red ink, that dividend can go a long way for patient investors. Moreover, Goldman as a financial services provider may benefit from a profitability angle due to higher interest rates.
While these attributes may make GS relevant, it’s not the main reason why I put it on this list. Rather, Goldman’s wealth management arm could become a much more pertinent component of the overall business.
If you think about it, some of the wealthiest people in this country must be freaking out. Again, we lived through decades where the Fed more or less implemented dovish monetary policies. We’re now pivoting in the opposite direction, implying a long-term deflationary cycle ahead.
Growing wealth during deflation represents the ultimate badge of honor for market analysts. Since Goldman hires only the best, the company could be one of the more intriguing S&P 500 stocks to buy.
Crown Castle (CCI)
Source: Casimiro PT / Shutterstock.com
Just looking at the profile for Crown Castle (NYSE:CCI), it’s hard not to consider it one of the S&P 500 stocks to buy. No, it’s probably not going to make investors who get in now rich. But as a viable idea in the new normal, you can do a lot worse than Crown Castle.
Mainly, the company offers several enticing statistics. For instance, Crown Castle rates highly for growth. In particular, its three-year free cash flow growth rate stands at 23.5%, better than 84% of real-estate investment trusts (or REITs). As well, Crown rates highly for profitability. A key highlight is its return on equity, which at nearly 19% stands well above the industry median of 6.5%.
Notably, Gurufocus considers CCI stock “modestly undervalued.” At the same time, it’s best to keep things simple with Crown Castle. As the nation’s largest provider of shared communications infrastructure (cell towers, small cells, fiber), Crown holds a permanently relevant profile.
Waste Management (WM)
Source: rblfmr / Shutterstock.com
Arguably, a lesser-known fact about the recycling industry is that it’s largely a front-facing enterprise. In reality, the U.S. simply exported the problem elsewhere. According to NPR, for years, “America sold millions of tons of used yogurt cups, juice containers, shampoo bottles and other kinds of plastic trash to China to be recycled into new products.” As well, other countries joined in on the fun.
Now, China is saying enough. In addition, other developing nations that once housed American trash are putting an end to the practice. It all presents a conundrum for the U.S. and developed nations. What to do with all the garbage they generate?
It’s a perplexing problem but one that Waste Management (NYSE:WM) hopes to address. Fundamentally, the company runs a “dirty” business. But in some ways, it could be the most relevant of all. Given our wealth and generally rising prosperity — along with an influx of new people — consumption will only swing higher.
However, someone must deal with the repercussions of said consumption. Therefore, WM deserves consideration for one of the S&P 500 stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 S&P 500 Stocks to Buy With Superior Fundamentals 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. | Ticker Company Price CVX Chevron $154.16 ABBV AbbVie $140.06 PEP PepsiCo $171.71 COST CostCo $527.46 GS Goldman Sachs $332.67 WM Waste Management $173.00 Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Earlier this year, Chevron (NYSE:CVX) and other oil and natural gas firms enjoyed the most cynical of tailwinds. AbbVie (ABBV) For anyone interested in studying behavioral analytics associated with the Covid-19 crisis, Morning Consult provided an indelible resource. Fundamentally, this backdrop should benefit AbbVie (NYSE:ABBV). | Ticker Company Price CVX Chevron $154.16 ABBV AbbVie $140.06 PEP PepsiCo $171.71 COST CostCo $527.46 GS Goldman Sachs $332.67 WM Waste Management $173.00 Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Earlier this year, Chevron (NYSE:CVX) and other oil and natural gas firms enjoyed the most cynical of tailwinds. AbbVie (ABBV) For anyone interested in studying behavioral analytics associated with the Covid-19 crisis, Morning Consult provided an indelible resource. Fundamentally, this backdrop should benefit AbbVie (NYSE:ABBV). | Ticker Company Price CVX Chevron $154.16 ABBV AbbVie $140.06 PEP PepsiCo $171.71 COST CostCo $527.46 GS Goldman Sachs $332.67 WM Waste Management $173.00 Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Earlier this year, Chevron (NYSE:CVX) and other oil and natural gas firms enjoyed the most cynical of tailwinds. AbbVie (ABBV) For anyone interested in studying behavioral analytics associated with the Covid-19 crisis, Morning Consult provided an indelible resource. Fundamentally, this backdrop should benefit AbbVie (NYSE:ABBV). | Ticker Company Price CVX Chevron $154.16 ABBV AbbVie $140.06 PEP PepsiCo $171.71 COST CostCo $527.46 GS Goldman Sachs $332.67 WM Waste Management $173.00 Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Earlier this year, Chevron (NYSE:CVX) and other oil and natural gas firms enjoyed the most cynical of tailwinds. AbbVie (ABBV) For anyone interested in studying behavioral analytics associated with the Covid-19 crisis, Morning Consult provided an indelible resource. Fundamentally, this backdrop should benefit AbbVie (NYSE:ABBV). |
23142.0 | 2022-09-08 00:00:00 UTC | U.S. FDA approves Revance's wrinkle treatment | ABBV | https://www.nasdaq.com/articles/u.s.-fda-approves-revances-wrinkle-treatment-0 | nan | nan | Adds details
Sept 7 (Reuters) - Revance Therapeutics RVNC.O said on Thursday it had received the U.S. Food and Drug Administration's approval for its injection to treat wrinkles that appear as people become older.
The company said the treatment, which will be sold under the brand Daxxify, has the ability to address the duration of treatment effect, which it believes is the greatest unmet need among the class of injections.
Daxxify could be a potential rival to AbbVie's ABBV.NBotox in the $3.2 billion U.S. facial injectables market.
(Reporting by Leroy Leo in Bengaluru; Editing by Anil D'Silva)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Daxxify could be a potential rival to AbbVie's ABBV.NBotox in the $3.2 billion U.S. facial injectables market. Adds details Sept 7 (Reuters) - Revance Therapeutics RVNC.O said on Thursday it had received the U.S. Food and Drug Administration's approval for its injection to treat wrinkles that appear as people become older. (Reporting by Leroy Leo in Bengaluru; Editing by Anil D'Silva) ((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Daxxify could be a potential rival to AbbVie's ABBV.NBotox in the $3.2 billion U.S. facial injectables market. Adds details Sept 7 (Reuters) - Revance Therapeutics RVNC.O said on Thursday it had received the U.S. Food and Drug Administration's approval for its injection to treat wrinkles that appear as people become older. The company said the treatment, which will be sold under the brand Daxxify, has the ability to address the duration of treatment effect, which it believes is the greatest unmet need among the class of injections. | Daxxify could be a potential rival to AbbVie's ABBV.NBotox in the $3.2 billion U.S. facial injectables market. Adds details Sept 7 (Reuters) - Revance Therapeutics RVNC.O said on Thursday it had received the U.S. Food and Drug Administration's approval for its injection to treat wrinkles that appear as people become older. The company said the treatment, which will be sold under the brand Daxxify, has the ability to address the duration of treatment effect, which it believes is the greatest unmet need among the class of injections. | Daxxify could be a potential rival to AbbVie's ABBV.NBotox in the $3.2 billion U.S. facial injectables market. Adds details Sept 7 (Reuters) - Revance Therapeutics RVNC.O said on Thursday it had received the U.S. Food and Drug Administration's approval for its injection to treat wrinkles that appear as people become older. The company said the treatment, which will be sold under the brand Daxxify, has the ability to address the duration of treatment effect, which it believes is the greatest unmet need among the class of injections. |
23143.0 | 2022-09-08 00:00:00 UTC | SpringWorks (SWTX), GSK Expand Deal to Treat Multiple Myeloma | ABBV | https://www.nasdaq.com/articles/springworks-swtx-gsk-expand-deal-to-treat-multiple-myeloma | nan | nan | SpringWorks Therapeutics, Inc. SWTX expanded its existing clinical collaboration agreement with GSK GSK. The partnership is evaluating the combination of SpringWorks’ investigational oral gamma secretase inhibitor, nirogacestat, with GSK’s anti-BCMA antibody-drug conjugate, Blenrep, in patients with multiple myeloma (MM).
Per the terms of the agreement, SpringWorks will supply nirogacestat to support GSK’s global development program for Blenrep. Once the combination receives approval, SpringWorks will also make nirogacestat commercially available alongside Blenrep.
Per the terms, GSK will invest $75 million as an equity investment in SpringWorks’ common stock. SpringWorks will be eligible to receive potential milestone payments of up to $550 million. However, SWTX will continue to hold commercial rights over nirogacestat.
Shares of SpringWorks were up 7.2% following the news announcement. Yet, the stock has plunged 55% in the year compared with the industry’s 25.7% decline.
Image Source: Zacks Investment Research
This collaboration extends the clinical trial and supply agreement between SpringWorks and GSK in 2019. The original agreement aims to evaluate the combination of nirogacestat and Blenrep in patients with relapsed/refractory MM.
Unlike the original one, the new agreement includes developing and commercializing the nirogacestat and Blenrep combination in earlier lines of treatment for MM, including newly-diagnosed patients.
GSK will continue to fund all development costs for the combination studies undertaken. However, SpringWorks will be responsible for all costs related to the supply of nirogacestat and certain expenses related to intellectual property rights.
Nirogacestat is SpringWorks’ most advanced pipeline candidate, which is being evaluated in the phase III DeFi study to treat desmoid tumors. This May, SWTX announced top-line results from the DeFi study, achieving both its primary and secondary endpoints. Based on these data, management intends to file a new drug application (NDA) with the FDA later this year in the given indication.
Currently, SpringWorks has no marketed drugs in its portfolio. Entering into collaboration agreements will enable the company to earn milestone and royalty payments to fund the development of its pipeline candidates.
Apart from GSK, the company has also entered into a similar agreement with AbbVie ABBV and Regeneron REGN, evaluating the combination of nirogacestat and the AbbVie and Regeneron’s respective BCMA-specific antibodies for treating relapsed/refractory MM.
SpringWorks had entered into a collaboration with AbbVie last December to evaluate the combination of nirogacestat plus AbbVie’s ABBV-383 in relapsed/refractory MM. A similar agreement was entered with Regeneron to evaluate the combination of nirogacestat plus Regeneron’s REGN5458 in relapsed/refractory MM.
Similar to GSK, AbbVie and Regeneron will be responsible for funding all development costs associated with the study, except for the costs pertaining to the supply of nirogacestat.
SpringWorks Therapeutics Price
SpringWorks Therapeutics price | SpringWorks Therapeutics Quote
Zacks Rank
SpringWorks carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apart from GSK, the company has also entered into a similar agreement with AbbVie ABBV and Regeneron REGN, evaluating the combination of nirogacestat and the AbbVie and Regeneron’s respective BCMA-specific antibodies for treating relapsed/refractory MM. SpringWorks had entered into a collaboration with AbbVie last December to evaluate the combination of nirogacestat plus AbbVie’s ABBV-383 in relapsed/refractory MM. Similar to GSK, AbbVie and Regeneron will be responsible for funding all development costs associated with the study, except for the costs pertaining to the supply of nirogacestat. | Apart from GSK, the company has also entered into a similar agreement with AbbVie ABBV and Regeneron REGN, evaluating the combination of nirogacestat and the AbbVie and Regeneron’s respective BCMA-specific antibodies for treating relapsed/refractory MM. SpringWorks had entered into a collaboration with AbbVie last December to evaluate the combination of nirogacestat plus AbbVie’s ABBV-383 in relapsed/refractory MM. Similar to GSK, AbbVie and Regeneron will be responsible for funding all development costs associated with the study, except for the costs pertaining to the supply of nirogacestat. | Apart from GSK, the company has also entered into a similar agreement with AbbVie ABBV and Regeneron REGN, evaluating the combination of nirogacestat and the AbbVie and Regeneron’s respective BCMA-specific antibodies for treating relapsed/refractory MM. SpringWorks had entered into a collaboration with AbbVie last December to evaluate the combination of nirogacestat plus AbbVie’s ABBV-383 in relapsed/refractory MM. Similar to GSK, AbbVie and Regeneron will be responsible for funding all development costs associated with the study, except for the costs pertaining to the supply of nirogacestat. | Apart from GSK, the company has also entered into a similar agreement with AbbVie ABBV and Regeneron REGN, evaluating the combination of nirogacestat and the AbbVie and Regeneron’s respective BCMA-specific antibodies for treating relapsed/refractory MM. SpringWorks had entered into a collaboration with AbbVie last December to evaluate the combination of nirogacestat plus AbbVie’s ABBV-383 in relapsed/refractory MM. Similar to GSK, AbbVie and Regeneron will be responsible for funding all development costs associated with the study, except for the costs pertaining to the supply of nirogacestat. |
23144.0 | 2022-09-08 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-44 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
AbbVie Inc (Symbol: ABBV) $138.71 $163.56 17.92%
Procter & Gamble Company (Symbol: PG) $137.68 $161.82 17.53%
Johnson & Johnson (Symbol: JNJ) $164.07 $186.33 13.57%
California Water Service Group (Symbol: CWT) $58.80 $64.50 9.69%
Berkley Corp (Symbol: WRB) $66.86 $72.67 8.68%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
AbbVie Inc (Symbol: ABBV) 4.07% 17.92% 21.99%
Procter & Gamble Company (Symbol: PG) 2.65% 17.53% 20.18%
Johnson & Johnson (Symbol: JNJ) 2.75% 13.57% 16.32%
California Water Service Group (Symbol: CWT) 1.70% 9.69% 11.39%
Berkley Corp (Symbol: WRB) 0.60% 8.68% 9.28%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86%
Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34%
Johnson & Johnson (Symbol: JNJ) $4.14 $4.38 5.80%
California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53%
Berkley Corp (Symbol: WRB) $0.66 $1.52666666666667 131.31%
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. | AbbVie Inc (Symbol: ABBV) $138.71 $163.56 17.92% Procter & Gamble Company (Symbol: PG) $137.68 $161.82 17.53% Johnson & Johnson (Symbol: JNJ) $164.07 $186.33 13.57% California Water Service Group (Symbol: CWT) $58.80 $64.50 9.69% Berkley Corp (Symbol: WRB) $66.86 $72.67 8.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.07% 17.92% 21.99% Procter & Gamble Company (Symbol: PG) 2.65% 17.53% 20.18% Johnson & Johnson (Symbol: JNJ) 2.75% 13.57% 16.32% California Water Service Group (Symbol: CWT) 1.70% 9.69% 11.39% Berkley Corp (Symbol: WRB) 0.60% 8.68% 9.28% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% Johnson & Johnson (Symbol: JNJ) $4.14 $4.38 5.80% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Berkley Corp (Symbol: WRB) $0.66 $1.52666666666667 131.31% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $138.71 $163.56 17.92% Procter & Gamble Company (Symbol: PG) $137.68 $161.82 17.53% Johnson & Johnson (Symbol: JNJ) $164.07 $186.33 13.57% California Water Service Group (Symbol: CWT) $58.80 $64.50 9.69% Berkley Corp (Symbol: WRB) $66.86 $72.67 8.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.07% 17.92% 21.99% Procter & Gamble Company (Symbol: PG) 2.65% 17.53% 20.18% Johnson & Johnson (Symbol: JNJ) 2.75% 13.57% 16.32% California Water Service Group (Symbol: CWT) 1.70% 9.69% 11.39% Berkley Corp (Symbol: WRB) 0.60% 8.68% 9.28% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% Johnson & Johnson (Symbol: JNJ) $4.14 $4.38 5.80% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Berkley Corp (Symbol: WRB) $0.66 $1.52666666666667 131.31% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $138.71 $163.56 17.92% Procter & Gamble Company (Symbol: PG) $137.68 $161.82 17.53% Johnson & Johnson (Symbol: JNJ) $164.07 $186.33 13.57% California Water Service Group (Symbol: CWT) $58.80 $64.50 9.69% Berkley Corp (Symbol: WRB) $66.86 $72.67 8.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.07% 17.92% 21.99% Procter & Gamble Company (Symbol: PG) 2.65% 17.53% 20.18% Johnson & Johnson (Symbol: JNJ) 2.75% 13.57% 16.32% California Water Service Group (Symbol: CWT) 1.70% 9.69% 11.39% Berkley Corp (Symbol: WRB) 0.60% 8.68% 9.28% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% Johnson & Johnson (Symbol: JNJ) $4.14 $4.38 5.80% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Berkley Corp (Symbol: WRB) $0.66 $1.52666666666667 131.31% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $138.71 $163.56 17.92% Procter & Gamble Company (Symbol: PG) $137.68 $161.82 17.53% Johnson & Johnson (Symbol: JNJ) $164.07 $186.33 13.57% California Water Service Group (Symbol: CWT) $58.80 $64.50 9.69% Berkley Corp (Symbol: WRB) $66.86 $72.67 8.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 4.07% 17.92% 21.99% Procter & Gamble Company (Symbol: PG) 2.65% 17.53% 20.18% Johnson & Johnson (Symbol: JNJ) 2.75% 13.57% 16.32% California Water Service Group (Symbol: CWT) 1.70% 9.69% 11.39% Berkley Corp (Symbol: WRB) 0.60% 8.68% 9.28% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.08 $5.53 8.86% Procter & Gamble Company (Symbol: PG) $3.322 $3.566 7.34% Johnson & Johnson (Symbol: JNJ) $4.14 $4.38 5.80% California Water Service Group (Symbol: CWT) $0.903 $0.98 8.53% Berkley Corp (Symbol: WRB) $0.66 $1.52666666666667 131.31% These five stocks are part of our full Dividend Aristocrats List. |
23145.0 | 2022-09-07 00:00:00 UTC | Ironwood's (IRWD) Functional Constipation Study in Kids Succeeds | ABBV | https://www.nasdaq.com/articles/ironwoods-irwd-functional-constipation-study-in-kids-succeeds | nan | nan | Ironwood Pharmaceuticals IRWD recently announced positive top-line data from its phase III study evaluating its critical medicine Linzess (linaclotide) in pediatric patients six to 17 years of age with functional constipation (“FC”).
Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. Linzess is currently indicated for the treatment of irritable bowel syndrome with constipation (“IBS-C”) and chronic idiopathic constipation (“CIC”) in adults above 18 years of age. Presently, it is not approved for use in patients below 18 years.
Functional constipation is one of the most common gastrointestinal issues in pediatric patients and currently has no FDA-approved treatments for children.
The randomized, placebo-controlled late-stage study evaluating linaclotide in FC met its primary and secondary end points.
The top-line data from the study exhibited improved frequency of spontaneous bowel movements (“SBM”) and stool consistency in subjects treated with linaclotide (72 mcg) in 12 weeks compared with the SBM frequency in the placebo arm. SBM frequency was the study’s primary endpoint.
Moreover, linaclotide-treated subjects also displayed more than a two-fold mean change in SBM from baseline compared with the placebo arm, representing the secondary endpoint.
Linzess was well-tolerated in the subjects and maintained its safety profile as depicted in previous studies of the candidate in pediatric patients with FC and irritable bowel syndrome (“IBS”).
With the positive top-line results of the late-stage study evaluating linaclotide in FC, Ironwood, with its partnerAbbVieintends to move forward with a potential submission of a supplemental new drug application (sNDA) to the FDA. If approved for this indication, Linzess (linaclotide) will potentially be the first approved therapeutic for treating FC in pediatric patients between six to 17 years of age.
Ironwood is also evaluating linaclotide in IBS-C for pediatric patients between six to 17 years.
Shares of Ironwood have declined 9.8% in the year-to-date period compared with the industry’s fall of 15%.
Image Source: Zacks Investment Research
Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. The drug came up with an encouraging performance in the first half of 2022. As reported by partner AbbVie, in the first six months of 2022, Linzess (linaclotide) generated net sales of almost $480 million in the United States, compared to $475 million in the first half of 2021.
Ironwood's share of net profits from the sales of Linzess in the United States (included in collaborative revenues) was $188.8 million in the first half of 2022, up from $186.3 million reported in the same period in 2021.
Ironwood Pharmaceuticals, Inc. Price
Ironwood Pharmaceuticals, Inc. price | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Currently, Ironwood has a Zacks Rank #3 (Hold).
Some better stocks in the same sector are Catalyst Pharmaceuticals CPRX and Soleno Therapeutics SLNO,each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Catalyst’s earnings per share estimates for 2022 have improved from 67 cents to 70 cents in the past 30 days. The same for 2023 has improved from 79 cents to 85 cents in the same time frame.
Earnings of Catalyst missed estimates in two of the trailing four quarters, were in line in one and beat the same on the remaining occasion. The average negative earnings surprise for CPRX is 5.41%.
Soleno’s earnings per share estimates for 2022 have narrowed down from $4.20 to $4.05 in the past 30 days. The same for 2023 has narrowed from $3.00 to $2.10 in the same time frame.
Earnings of Soleno missed estimates in three of the trailing four quarters and were in line on the remaining occasion. The average earnings surprise for SLNO is 11.40%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With the positive top-line results of the late-stage study evaluating linaclotide in FC, Ironwood, with its partnerAbbVieintends to move forward with a potential submission of a supplemental new drug application (sNDA) to the FDA. Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. Image Source: Zacks Investment Research Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. | Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. With the positive top-line results of the late-stage study evaluating linaclotide in FC, Ironwood, with its partnerAbbVieintends to move forward with a potential submission of a supplemental new drug application (sNDA) to the FDA. Image Source: Zacks Investment Research Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. | Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. With the positive top-line results of the late-stage study evaluating linaclotide in FC, Ironwood, with its partnerAbbVieintends to move forward with a potential submission of a supplemental new drug application (sNDA) to the FDA. Image Source: Zacks Investment Research Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. | Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. With the positive top-line results of the late-stage study evaluating linaclotide in FC, Ironwood, with its partnerAbbVieintends to move forward with a potential submission of a supplemental new drug application (sNDA) to the FDA. Image Source: Zacks Investment Research Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. |
23146.0 | 2022-09-05 00:00:00 UTC | 3 Things You Shouldn't Do if the Stock Market Crashes | ABBV | https://www.nasdaq.com/articles/3-things-you-shouldnt-do-if-the-stock-market-crashes-2 | nan | nan | With the market in a jittery mood thanks to ongoing inflation, interest rate hike mania, and geopolitical instability, nobody can blame investors who are wringing their hands anxiously in anticipation of a potential market crash. Thankfully, the chances of a crash happening are too difficult to determine with any certainty, so it doesn't make much sense to worry at any particular time.
That probably isn't very reassuring. But what will be reassuring is if you have a plan for what to do and what not to do in the event of a crash. For now, let's work on three things you definitely shouldn't do if there's chaos in the market.
1. Sell your stocks in a panic
The first (and most important) thing you shouldn't do if the stock market crashes is to sell all of your stocks to try to avoid experiencing any further losses. The problem with panic selling is that it feels like the right move. After all, if you can cut your losses fast enough, the market's downward move to the tune of 30% might only lead to losses of 10% for you.
Selling eases the sense of anxiety you have about your lack of control over the situation and your fear of losing money. And if you hear from friends or relatives about how much they got whacked by holding on to their shares, you might even give yourself a pat on the back.
But you'll probably end up missing out on the rebound afterward. And in many cases, that means you'll make less money than if you'd simply stayed the course. Let's examine AbbVie's (NYSE: ABBV) performance during the coronavirus crash in March 2020 as an example.
^SPX data by YCharts
As you can see, AbbVie's shares took a beating during the crash, as did the market. But as the catalyst for the crash, the pandemic, didn't actually do much to affect the company's ability to do its business of developing and commercializing drugs, its stock quickly bounced back.
Within a couple of months, it was outperforming the market, and its earlier damage was entirely reversed. The stock even ended the year significantly above where it started, and you'd have missed out on that gain if you had sold your shares. Even if you tried to restart your position, you'd struggle to time it correctly and you'd almost certainly be missing out on some upside.
There's absolutely no guarantee that every stock will behave the same as AbbVie's did during every market crash, and many will not. In cases where the crash isn't caused by anything that fundamentally impacts a company's ability to make money as efficiently as it currently does, however, selling is likely to be a poor decision.
2. Dramatically change your investing strategy without good reason
In keeping with the above, the second thing that you shouldn't do if the stock market crashes is to switch up your game plan for investing without noodling on it for a good while. It's a fact of life that crashes are often precipitated by economic or global events. Nonetheless, if you have a properly diversified portfolio, it should be unlikely that any specific trend or happening makes all of your stocks genuinely vulnerable to further declines all at once. And that means any changes to your approach should be at the margin, even after a crash.
For example, let's say before the pandemic you held AMC Entertainment (NYSE: AMC) for exposure to the entertainment industry in the same portfolio as your AbbVie shares. The market's collapse in March was caused by fears of the coronavirus, and AMC's share price was hit plenty hard. As an intelligent and far-sighted investor, you held on to your shares at the time. But during your quarterly assessment of your positions, you decide that movie theaters are probably not going to be making a strong comeback for as long as the coronavirus is afoot, and you opt to sell your shares.
So far, so good -- it's important to make adjustments to your strategy when new information makes your original investing thesis incorrect or irrelevant.
Where many investors might go wrong, however, is to then do something like take their proceeds from the sale of AMC and invest them in a way that reduces their portfolio's level of diversification, perhaps by buying more shares of AbbVie. Such an action is a major departure from your prior approach of buying an entertainment industry stock to give yourself exposure to that industry's future growth. And by doing so, you're throwing the baby -- your well-reasoned desire for diversification -- out with the bathwater, which in this case is AMC's poorly performing stock in the wake of the crash.
3. Stay on the sidelines
The final thing investors shouldn't do if the market crashes is to stay on the sidelines and wait for calmer waters. Instead, they should take action to buy while shares are cheaper than normal. And that's especially true if you plan to dollar-cost average to build up your positions. For those who have some capital saved up, sharp and panic-driven downturns are opportunities to shore up your holdings with deeply discounted shares -- once again, assuming that your original investing thesis about why they're worth buying is still valid.
If you do decide to sit on the sidelines during a crash or correction, you won't be actively harming your portfolio's value, but you'll likely be missing out on growth. It's frightening to buy more shares of a stock when it's down and when it seems like the sky is falling, but famous investors like Warren Buffett do it. And for companies that pay a dividend, like AbbVie, buying rather than idling means that you'll be securing shares with higher dividend yields than you could normally get, so you'll get paid for your smart decision to take a hot bargain for years down the line.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's examine AbbVie's (NYSE: ABBV) performance during the coronavirus crash in March 2020 as an example. ^SPX data by YCharts As you can see, AbbVie's shares took a beating during the crash, as did the market. There's absolutely no guarantee that every stock will behave the same as AbbVie's did during every market crash, and many will not. | For example, let's say before the pandemic you held AMC Entertainment (NYSE: AMC) for exposure to the entertainment industry in the same portfolio as your AbbVie shares. Let's examine AbbVie's (NYSE: ABBV) performance during the coronavirus crash in March 2020 as an example. ^SPX data by YCharts As you can see, AbbVie's shares took a beating during the crash, as did the market. | Let's examine AbbVie's (NYSE: ABBV) performance during the coronavirus crash in March 2020 as an example. ^SPX data by YCharts As you can see, AbbVie's shares took a beating during the crash, as did the market. There's absolutely no guarantee that every stock will behave the same as AbbVie's did during every market crash, and many will not. | Let's examine AbbVie's (NYSE: ABBV) performance during the coronavirus crash in March 2020 as an example. ^SPX data by YCharts As you can see, AbbVie's shares took a beating during the crash, as did the market. There's absolutely no guarantee that every stock will behave the same as AbbVie's did during every market crash, and many will not. |
23147.0 | 2022-09-05 00:00:00 UTC | 3 Dividend Aristocrats to Buy That Could Beat the Market Over the Next 10 Years | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-that-could-beat-the-market-over-the-next-10-years | nan | nan | Nobility isn't necessarily all it's cracked up to be. That's definitely the case with the nobility of dividend stocks -- Dividend Aristocrats. These members of the S&P 500 have increased their dividends for at least 25 consecutive years. But they aren't always the biggest winners for investors.
Over the past three-year, five-year, and 10-year periods, the S&P 500 has outperformed Dividend Aristocrats. However, there are some great dividend payers that look especially promising over the long term. Here are three Dividend Aristocrats to buy that could beat the market over the next 10 years.
1. AbbVie
AbbVie (NYSE: ABBV) isn't just a Dividend Aristocrat; it's also a Dividend King. The company's track record of 50 consecutive years of dividend increases puts it in that exclusive group.
The big drugmaker's attractive dividend yield of nearly 4.2% definitely boosts its total returns. AbbVie hasn't depended only on its dividends to reward investors in recent years, though. The stock has trounced the broader market and continues to do so, so far in 2022.
You might think that the loss of exclusivity for Humira next year could put AbbVie at a disadvantage. There's no question that declining sales for its top-selling drug will negatively impact the company. However, AbbVie expects that newer autoimmune-disease drugs Rinvoq and Skyrizi will generate combined peak sales that eclipse Humira's peak sales.
The company looks for solid growth throughout this decade after taking an expected temporary hit in 2023. With AbbVie's shares trading below 9.8 times expected earnings, this stock could easily be a market-beater over the next 10 years.
2. Air Products & Chemicals
Air Products & Chemicals (NYSE: APD) has increased its dividend for 40 consecutive years. Its dividend yield of nearly 2.5% is well above the average S&P 500 yield of a little under 1.5%.
Even with this advantage, Air Products hasn't always been able to deliver a higher total return than the S&P 500. So far this year, though, the stock is narrowly outperforming the key market index.
Air Products' leadership in producing industrial gases should enable it to generate stronger earnings growth than the average S&P 500 member going forward. The company's adjusted earnings per share (EPS) have increased by a compound annual growth rate of 11% since 2014. Air Products looks for adjusted EPS growth of 13% to 15% this year.
Arguably the most promising growth area for Air Products is in producing green hydrogen (made from renewable energy) and blue hydrogen (made from natural gas using carbon capture). The company already ranks as the largest hydrogen producer in the world and expects to be the leader in green and blue hydrogen in the future.
3. Lowe's
Lowe's (NYSE: LOW) isn't far away from becoming a Dividend King. The home improvement retailer has increased its dividend for 48 consecutive years. Its dividend yield currently tops 2%.
After soaring in 2020 and 2021, Lowe's shares have plunged more than 20% year to date. Investors have been concerned about the negative impacts of inflation and the possibility of a recession on the company.
However, Lowe's CEO Marvin Ellison thinks that higher interest rates could actually work in his company's favor. Ellison said in Lowe's second-quarter conference call, "As low housing supply and high interest rates make moving less desirable, homeowners are motivated to invest in their current homes to fit their needs."
Another factor could also help Lowe's over the next 10 years and beyond. More than 50% of U.S. homes are now over 40 years old. Houses built in the early years of this century at the peak of the housing boom are beginning to hit the 20-year mark. As a result, spending on home improvement is likely to increase throughout the rest of this decade. Lowe's stands to be a key beneficiary of this trend.
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Keith Speights has positions in AbbVie and Air Products & Chemicals. The Motley Fool recommends Lowe's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With AbbVie's shares trading below 9.8 times expected earnings, this stock could easily be a market-beater over the next 10 years. AbbVie AbbVie (NYSE: ABBV) isn't just a Dividend Aristocrat; it's also a Dividend King. AbbVie hasn't depended only on its dividends to reward investors in recent years, though. | AbbVie AbbVie (NYSE: ABBV) isn't just a Dividend Aristocrat; it's also a Dividend King. AbbVie hasn't depended only on its dividends to reward investors in recent years, though. You might think that the loss of exclusivity for Humira next year could put AbbVie at a disadvantage. | AbbVie AbbVie (NYSE: ABBV) isn't just a Dividend Aristocrat; it's also a Dividend King. AbbVie hasn't depended only on its dividends to reward investors in recent years, though. You might think that the loss of exclusivity for Humira next year could put AbbVie at a disadvantage. | AbbVie AbbVie (NYSE: ABBV) isn't just a Dividend Aristocrat; it's also a Dividend King. AbbVie hasn't depended only on its dividends to reward investors in recent years, though. You might think that the loss of exclusivity for Humira next year could put AbbVie at a disadvantage. |
23148.0 | 2022-09-04 00:00:00 UTC | 2 Top Biotech Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-top-biotech-stocks-to-buy-right-now-4 | nan | nan | The biotech sector has brought its share of big gains to investors' portfolios, from coronavirus success stories such as Moderna to long-established names like Biogen. Moderna, the maker of a top-selling coronavirus vaccine, has climbed more than 600% over the past two and a half years. Biogen has advanced 11,000% since its trading debut.
It's clear biotech companies make a great addition to a diversified portfolio. So, which players should you buy these days? Look for companies with a solid pipeline and strong revenue prospects ahead. And if they're already generating revenue, that's a huge plus. Let's check out two stocks to buy right now.
1. AbbVie
The bad news for AbbVie (NYSE: ABBV) is that its major blockbuster drug, the rheumatoid arthritis treatment Humira, will face competition in the U.S. as of next year. The good news is that the rest of AbbVie's immunology portfolio may eventually compensate for the loss.
Sales of immunology drugs Skyrizi and Rinvoq are booming -- and the company has gained approvals across several indications. In the second quarter, Skyrizi revenue surged more than 85% to $1.25 billion. And Rinvoq revenue rose 56% to $592 million.
The U.S. Food and Drug Administration (FDA) recently approved Skyrizi for moderately to severely active Crohn's disease -- its third indication. And the FDA approved Rinvoq for ankylosing spondylitis -- its fifth indication in chronic immune diseases.
AbbVie also has a strong aesthetics portfolio, with wrinkle treatment Botox and filler Juvederm. Juvederm sales suffered in the most recent quarter due to coronavirus lockdowns in China and a halt of the company's business in Russia. But the company expects a rebound thanks to two new filler launches in the U.S. and an eventual loosening of coronavirus restrictions in China.
AbbVie is trading for less in relation to 12-month trailing earnings than it was just a couple of years ago. It's trading for 19 times earnings compared to more than 40 early last year.
2. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the leader in the world of cystic fibrosis (CF) treatments. The company sells four drugs -- and the newest of those, Trikafta, is a blockbuster. Last year, Trikafta generated more than $5.6 billion in revenue for Vertex. And it helped the company reach about $2.3 billion in profit.
Here's some even better news. Vertex is likely to keep this lead for quite a while. The biggest threat to Trikafta is actually a candidate under development at Vertex. The company is studying that CF candidate in a phase 3 trial. It's administered once daily, versus Trikafta's twice-a-day regimen. This could be a practical option for patients.
So, buying Vertex for its CF portfolio is a good idea. But there's another reason to buy this stock. That's for another potential blockbuster -- outside of the CF business -- on the horizon. It's a one-time curative treatment for beta thalassemia and sickle cell disease. Vertex plans on submitting this candidate for blood disorders for regulatory approval in the U.K. and Europe by the end of this year. A submission to the U.S. should happen in the near future too.
And let's not forget the rest of the pipeline. Vertex is working on promising candidates for type 1 diabetes, pain management, and more. Today Vertex is trading for about 23 times 12-month trailing earnings. The company was trading at more than 48 in 2020 -- when visibility on non-CF pipeline programs wasn't as clear as it is now.
So, both AbbVie and Vertex are less expensive than they were in the past. At the same time, they're generating billions of dollars in revenue. And we can clearly identify the treatments or potential treatments that will drive revenue over the coming years. All of this means right now is a great time to get in on these biotech stories -- and benefit from your investments over time.
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Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool recommends Biogen and Moderna 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. | AbbVie The bad news for AbbVie (NYSE: ABBV) is that its major blockbuster drug, the rheumatoid arthritis treatment Humira, will face competition in the U.S. as of next year. The good news is that the rest of AbbVie's immunology portfolio may eventually compensate for the loss. AbbVie also has a strong aesthetics portfolio, with wrinkle treatment Botox and filler Juvederm. | AbbVie The bad news for AbbVie (NYSE: ABBV) is that its major blockbuster drug, the rheumatoid arthritis treatment Humira, will face competition in the U.S. as of next year. The good news is that the rest of AbbVie's immunology portfolio may eventually compensate for the loss. AbbVie also has a strong aesthetics portfolio, with wrinkle treatment Botox and filler Juvederm. | AbbVie The bad news for AbbVie (NYSE: ABBV) is that its major blockbuster drug, the rheumatoid arthritis treatment Humira, will face competition in the U.S. as of next year. The good news is that the rest of AbbVie's immunology portfolio may eventually compensate for the loss. AbbVie also has a strong aesthetics portfolio, with wrinkle treatment Botox and filler Juvederm. | AbbVie The bad news for AbbVie (NYSE: ABBV) is that its major blockbuster drug, the rheumatoid arthritis treatment Humira, will face competition in the U.S. as of next year. The good news is that the rest of AbbVie's immunology portfolio may eventually compensate for the loss. AbbVie also has a strong aesthetics portfolio, with wrinkle treatment Botox and filler Juvederm. |
23149.0 | 2022-09-03 00:00:00 UTC | 3 Great Dividend Stocks to Buy in September | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-to-buy-in-september | nan | nan | Sure, the stock market remains volatile. But dividend stocks often provide more stability than most other stocks. They also pay you to wait for the market choppiness to end.
We asked three Motley Fool contributors to pick dividend stocks to buy in September. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ).
A dividend stock for all seasons
Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie boasts practically all the characteristics of an outstanding dividend stock, including a stable business with increasing revenue and earnings, solid growth avenues, a juicy yield, a conservative payout ratio, and of course, an impressive history of dividend hikes. Let's unpack that further, starting with AbbVie's lineup of drugs.
Although the company's crown jewel, immunology medicine Humira, faces biosimilar competition next year, AbbVie has earned many more approvals and acquired other products to prepare for these challengers. The company's lineup features immunosuppressants Skyrizi and Rinvoq, its Botox franchise, and several other exciting products whose sales are northbound.
AbbVie's solid pipeline ensures it will expand its revenue base and continue delivering strong financial results long after Humira's days are over. The company currently boasts several dozen ongoing clinical trials. What about AbbVie's dividend yield? It currently stands at an impressive 4.16%. By comparison, the average dividend yield of the S&P 500 is 1.69%. AbbVie also sports a cash payout ratio of 43.5% -- well below the 60% limit where it starts to be considered too high.
Lastly, AbbVie is a Dividend King, having raised its payouts for 50 consecutive years. The company's dividends have grown by 31.8% in the past three years alone, amid the pandemic and the economic trouble the world encountered. Investors can rest assured that AbbVie will maintain and even increase its payouts during challenging times, thanks to the solid business that supports it. That's why the drugmaker is an excellent dividend stock to buy in September and beyond.
A high yield plus solid financials and growth prospects
David Jagielski (Gilead Sciences): Gilead Sciences develops medicines focused on treating HIV. Its oncology business has also been growing. The stock gives investors a little bit of everything, meaning that you don't have to compromise safety or promising growth potential in exchange for a high yield; Gilead has it all.
At 4.7%, its yield is three times what the average stock on the S&P 500 pays. That's a significant difference; on a $30,000 investment, you'd be collecting nearly $1,000 more in dividends from Gilead (over the course of a year) than the S&P would pay. Plus, Gilead has been increasing its dividend payments over the years. While it may not have a long track record of doing so, its quarterly dividend has grown 70% since 2015, when Gilead initiated its dividend program.
While its payout ratio may seem high at 88%, the company's in a strong enough position to continue making dividend payments. Gilead has generated $9.4 billion in free cash flow over the past four quarters, which is more than twice what it paid in dividends during that time -- $3.7 billion. Its operating margin has also been a solid $7.3 billion over the trailing 12 months, which is 27% of the $27.5 billion in revenue it reported over that time frame. The big biotech also raised its full-year revenue and earnings outlook in August, causing its stock to jump.
As good as Gilead's business looks today, it has the potential to get even better. One of the exciting treatments it has in its pipeline is lenacapavir, which could be a game changer in HIV. If approved, patients could ditch daily pills and just receive lenacapavir (via injection) twice a year. The U.S. Food and Drug Administration (FDA) has received the company's New Drug Application for lenacapavir and should make a decision on it before the end of the year.
Overall, Gilead is a solid all-around stock to buy whether you want dividends or growth potential.
A healthcare giant that's about to become more nimble
Keith Speights (Johnson & Johnson): Like AbbVie, Johnson & Johnson is a Dividend King. However, J&J has an even more impressive streak of dividend hikes at 60 consecutive years compared to 50 years in a row for AbbVie. Its dividend yield currently tops 2.7%.
Johnson & Johnson has long been viewed as a relatively safe pick for investors. It's lived up to that reputation so far in 2022. Although the stock is down a little year to date, J&J is still easily beating the S&P 500.
A cursory glance at J&J's second-quarter results probably won't cause any excitement. The company's sales increased by only 3% year over year. Its adjusted earnings per share grew by just 4.4%. But there's a big change on the way that should help make this healthcare giant much more nimble.
Johnson & Johnson plans to spin off its consumer health unit in 2023. That will leave the company with its fastest-growing business -- pharmaceuticals -- along with its medtech segment. Look for J&J's growth trajectory to pick up significantly after the transaction closes.
Some might worry about Medicare drug pricing changes that will be effective in 2026. Medicare will be able to directly negotiate with pharmaceutical companies on the costliest drugs for the federal program. However, J&J should be able to navigate this change and continue to grow its revenue.
The company's current blockbusters, including Darzalex and Tremfya, and its strong pipeline featuring 39 programs in late-stage development should help ensure that Johnson & Johnson keeps its dividends flowing and growing for years to come. J&J remains a relatively safe dividend stock to buy.
10 stocks we like better than AbbVie
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*Stock Advisor returns as of August 17, 2022
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 Gilead Sciences. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although the company's crown jewel, immunology medicine Humira, faces biosimilar competition next year, AbbVie has earned many more approvals and acquired other products to prepare for these challengers. AbbVie's solid pipeline ensures it will expand its revenue base and continue delivering strong financial results long after Humira's days are over. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). | A dividend stock for all seasons Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie boasts practically all the characteristics of an outstanding dividend stock, including a stable business with increasing revenue and earnings, solid growth avenues, a juicy yield, a conservative payout ratio, and of course, an impressive history of dividend hikes. A healthcare giant that's about to become more nimble Keith Speights (Johnson & Johnson): Like AbbVie, Johnson & Johnson is a Dividend King. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). | A dividend stock for all seasons Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie boasts practically all the characteristics of an outstanding dividend stock, including a stable business with increasing revenue and earnings, solid growth avenues, a juicy yield, a conservative payout ratio, and of course, an impressive history of dividend hikes. A healthcare giant that's about to become more nimble Keith Speights (Johnson & Johnson): Like AbbVie, Johnson & Johnson is a Dividend King. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). | Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). A dividend stock for all seasons Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie boasts practically all the characteristics of an outstanding dividend stock, including a stable business with increasing revenue and earnings, solid growth avenues, a juicy yield, a conservative payout ratio, and of course, an impressive history of dividend hikes. Let's unpack that further, starting with AbbVie's lineup of drugs. |
23150.0 | 2022-09-01 00:00:00 UTC | Is Humira Maker A Better Bet Over Merck Stock? | ABBV | https://www.nasdaq.com/articles/is-humira-maker-a-better-bet-over-merck-stock | nan | nan | We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its peer Merck stock (NYSE: MRK), given its better growth prospects. Both companies are comparable in valuation, with AbbVie trading at 4.2x, trailing revenues, and Merck trading at 3.9x.
If we look at stock returns, Merck’s 14% growth this year is much better than the 0.2% return for AbbVie stock and -16% returns for the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss why we believe ABBV stock will offer better returns than MRK 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 AbbVie vs. Merck: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. AbbVie’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 higher than 6.7% for AbbVie.
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 that of AbbVie grew at 20.6% to $56.2 billion in 2021, compared to $32.8 billion in 2018.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil.
AbbVie is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered a whopping $20.7 billion in 2021 sales, reflecting a 4% y-o-y growth. Now, Humira’s biosimilar has already hit the European markets, weighing on the company’s international sales. The biosimilars are expected to enter the U.S. next year, likely resulting in a significant drop in Humira sales over the coming years.
That said, AbbVie is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis are gaining market share. For perspective, these three products garnered $9.3 billion in 2021, reflecting a 94% y-o-y growth.
Our AbbVie Revenue and Merck Revenue dashboards provide more insight into the companies’ sales.
Looking forward, AbbVie’s’ revenue is expected to grow 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 8.6% for AbbVie, 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 And Offers Lower Risk
AbbVie’s operating margin of 30.3% over the last twelve-month period is slightly lower than 33.0% for Merck. However, historically, AbbVie has seen better operating margins.
This compares with 39.0% and 18.7% figures seen in 2019, before the pandemic, respectively.
AbbVie’s free cash flow margin of 40.0% is better than 33.2% for Merck.
Our AbbVie Operating Income and Merck Operating Income dashboards have more details.
Looking at financial risk, Merck is placed better. Its 14.3% debt as a percentage of equity is lower than 30.2% for AbbVie, while its 9.7% cash as a percentage of assets is higher than 7.0% for the latter, implying that Merck has a better debt position and more cash cushion.
3. The Net of It All
We see that AbbVie has demonstrated better revenue growth and profitability over recent years. On the other hand, Merck has a better debt position and more cash cushion, implying lower financial risk.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we still believe AbbVie is currently the better choice of the two.
The table below summarizes our revenue and return expectations for AbbVie and Merck over the next three years and points to an expected return of 33% for AbbVie over this period vs. a 14% expected return for Merck stock, implying that investors are better off buying ABBV over MRK, based on Trefis Machine Learning analysis – AbbVie vs. Merck– which also provides more details on how we arrive at these numbers.
While ABBV stock may outperform MRK, 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 Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABBV Return -5% 0% 117%
MRK Return -2% 14% 49%
S&P 500 Return -3% -16% 79%
Trefis Multi-Strategy Portfolio -3% -16% 236%
[1] Month-to-date and year-to-date as of 8/30/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of AbbVie vs. Merck: Which Stock Is A Better Bet? That said, AbbVie is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its peer Merck stock (NYSE: MRK), given its better growth prospects. | It points to a CAGR of 8.6% for AbbVie, compared to a 1.6% CAGR for Merck, based on Trefis Machine Learning analysis. The table below summarizes our revenue and return expectations for AbbVie and Merck over the next three years and points to an expected return of 33% for AbbVie over this period vs. a 14% expected return for Merck stock, implying that investors are better off buying ABBV over MRK, based on Trefis Machine Learning analysis – AbbVie vs. Merck– which also provides more details on how we arrive at these numbers. Total [2] ABBV Return -5% 0% 117% MRK Return -2% 14% 49% S&P 500 Return -3% -16% 79% Trefis Multi-Strategy Portfolio -3% -16% 236% [1] Month-to-date and year-to-date as of 8/30/2022 [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. | If we look at stock returns, Merck’s 14% growth this year is much better than the 0.2% return for AbbVie stock and -16% returns for the broader S&P 500 index. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of AbbVie vs. Merck: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for AbbVie and Merck over the next three years and points to an expected return of 33% for AbbVie over this period vs. a 14% expected return for Merck stock, implying that investors are better off buying ABBV over MRK, based on Trefis Machine Learning analysis – AbbVie vs. Merck– which also provides more details on how we arrive at these numbers. | If we look at stock returns, Merck’s 14% growth this year is much better than the 0.2% return for AbbVie stock and -16% returns for the broader S&P 500 index. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of AbbVie vs. Merck: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for AbbVie and Merck over the next three years and points to an expected return of 33% for AbbVie over this period vs. a 14% expected return for Merck stock, implying that investors are better off buying ABBV over MRK, based on Trefis Machine Learning analysis – AbbVie vs. Merck– which also provides more details on how we arrive at these numbers. |
23151.0 | 2022-09-01 00:00:00 UTC | Thursday Sector Leaders: Utilities, Healthcare | ABBV | https://www.nasdaq.com/articles/thursday-sector-leaders%3A-utilities-healthcare-3 | nan | nan | Looking at the sectors faring best as of midday Thursday, shares of Utilities companies are outperforming other sectors, up 1.3%. Within that group, American Electric Power Co Inc (Symbol: AEP) and Southern Company (Symbol: SO) are two of the day's stand-outs, showing a gain of 2.5% and 2.2%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 1.3% on the day, and up 6.59% year-to-date. American Electric Power Co Inc, meanwhile, is up 18.10% year-to-date, and Southern Company is up 17.80% year-to-date. Combined, AEP and SO make up approximately 12.7% of the underlying holdings of XLU.
The next best performing sector is the Healthcare sector, higher by 0.2%. Among large Healthcare stocks, Cooper Companies, Inc. (Symbol: COO) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a gain of 3.0% and 2.8%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 1.0% in midday trading, and down 9.87% on a year-to-date basis. Cooper Companies, Inc., meanwhile, is down 29.35% year-to-date, and AbbVie Inc is up 5.25% year-to-date. Combined, COO and ABBV make up approximately 5.4% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, two sectors are up on the day, while seven sectors are down.
SECTOR % CHANGE
Utilities +1.3%
Healthcare +0.2%
Consumer Products -0.5%
Services -0.7%
Financial -0.7%
Industrial -0.8%
Materials -1.7%
Technology & Communications -1.8%
Energy -3.0%
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Combined, COO and ABBV make up approximately 5.4% of the underlying holdings of XLV. Among large Healthcare stocks, Cooper Companies, Inc. (Symbol: COO) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a gain of 3.0% and 2.8%, respectively. Cooper Companies, Inc., meanwhile, is down 29.35% year-to-date, and AbbVie Inc is up 5.25% year-to-date. | Among large Healthcare stocks, Cooper Companies, Inc. (Symbol: COO) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a gain of 3.0% and 2.8%, respectively. Cooper Companies, Inc., meanwhile, is down 29.35% year-to-date, and AbbVie Inc is up 5.25% year-to-date. Combined, COO and ABBV make up approximately 5.4% of the underlying holdings of XLV. | Among large Healthcare stocks, Cooper Companies, Inc. (Symbol: COO) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a gain of 3.0% and 2.8%, respectively. Cooper Companies, Inc., meanwhile, is down 29.35% year-to-date, and AbbVie Inc is up 5.25% year-to-date. Combined, COO and ABBV make up approximately 5.4% of the underlying holdings of XLV. | Among large Healthcare stocks, Cooper Companies, Inc. (Symbol: COO) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a gain of 3.0% and 2.8%, respectively. Cooper Companies, Inc., meanwhile, is down 29.35% year-to-date, and AbbVie Inc is up 5.25% year-to-date. Combined, COO and ABBV make up approximately 5.4% of the underlying holdings of XLV. |
23152.0 | 2022-09-01 00:00:00 UTC | Interesting ABBV Put And Call Options For October 14th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-october-14th | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the October 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new October 14th contracts and identified one put and one call contract of particular interest.
The put contract at the $130.00 strike price has a current bid of $1.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $130.00, but will also collect the premium, putting the cost basis of the shares at $128.10 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $136.99/share today.
Because the $130.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.46% return on the cash commitment, or 12.41% 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 $130.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $2.74. If an investor was to purchase shares of ABBV stock at the current price level of $136.99/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.20% if the stock gets called away at the October 14th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.00% boost of extra return to the investor, or 16.98% 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 $136.99) to be 21%. 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 $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the October 14th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the October 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new October 14th 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 $130.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $2.74. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the October 14th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new October 14th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the October 14th expiration. |
23153.0 | 2022-09-01 00:00:00 UTC | 3 Dividend Stocks to Buy in September for Passive Income Generation | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-in-september-for-passive-income-generation | nan | nan | Do you like getting paid to do practically nothing? I thought so.
Lots of savvy investors know that they can generate heaps of passive income with dividend-paying stocks. These three businesses are more than just reliable dividend payers; they're known for raising their dividend payouts year after year. Here's how they could provide ever-increasing dividend payments to your brokerage account.
Image source: Getty Images.
1. Abbott Laboratories
This healthcare conglomerate's COVID-19 tests made it a stock market darling in 2021. Shares of Abbott Laboratories (NYSE: ABT) have tumbled around 27% since the beginning of 2022 in response to subsiding demand for COVID tests. Now the stock offers a tempting 1.8% dividend yield that could rise significantly in the years ahead.
In the second quarter, COVID-19 testing-related sales fell to $2.3 billion from $3.3 billion during the first quarter of 2022. Luckily for long-term investors, the company could report significant earnings growth even if COVID-19 sales fall off a cliff.
Declining COVID-19 testing revenue isn't a major issue for this diversified conglomerate because its diabetes-care segment is about to rocket higher. In May, the FDA granted clearance to Abbott's FreeStyle Libre 3 system. This device is only the size of a couple of pennies stacked together, but once a patient sticks it on her or his arm, it monitors blood sugar levels constantly for two weeks.
Constant monitoring leads to fewer interventions in expensive hospitals, so insurers and government payers are eager to reimburse patients for the devices. With glucose monitoring sales about to explode higher, Abbott could approve some big dividend raises in the foreseeable future.
2. CVS Health
Shares of CVS Health (NYSE: CVS) surged late last year when the company announced that it would begin raising its dividend payout again. Since then, the stock has been in a holding pattern.
At recent prices, shares of CVS Health offer a 2.2% yield that could grow significantly in the years ahead. In addition to thousands of retail pharmacies, this conglomerate owns a pharmacy benefits management business that boasts more than 110 million plan members.
Integrating a pharmacy benefits management business is one advantage its peers in the retail pharmacy space can't match, and it isn't the company's only big advantage. CVS Health previously paused raising its dividend payout to pay off its acquisition of Aetna, a health insurer that currently collects premiums from an estimated 35 million members.
CVS Health's unique combination of related businesses allowed the company to raise its dividend payout by 10% this year. Without any competitors combining a large retail footprint with a health benefits management business, the latest big payout bump could be the first of many in the years ahead.
3. AbbVie
AbbVie (NYSE: ABBV) was once the pharmaceutical segment of Abbott Laboratories. Shares of AbbVie offer an above-average yield of 4.2% that could climb even higher.
Since the drugmaker spun off in 2013, its dividend has risen an astonishing 253% on the back of its lead drug, Humira. Second-quarter sales of Humira rose 9.6% year over year to a stunning $4.7 billion in the U.S. Unfortunately, international Humira revenue fell 13.8% to $699 million.
AbbVie offers an above-average dividend now because U.S. Humira sales will soon go the same way as international sales. An interchangeable biosimilar version of the anti-inflammatory blockbuster became available in the U.S. this July.
AbbVie investors can expect their dividend payouts to continue rising in the face of Humira competition because the company has new blockbuster drugs to pick up the slack. Second-quarter sales of Rinvoq, a new arthritis drug, and Skyrizi, a new psoriasis drug, soared 75% year over year to a combined $1.84 billion. With new blockbusters to offset Humira losses, AbbVie shareholders could see more big payout bumps in the years ahead.
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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 investors can expect their dividend payouts to continue rising in the face of Humira competition because the company has new blockbuster drugs to pick up the slack. AbbVie AbbVie (NYSE: ABBV) was once the pharmaceutical segment of Abbott Laboratories. Shares of AbbVie offer an above-average yield of 4.2% that could climb even higher. | AbbVie AbbVie (NYSE: ABBV) was once the pharmaceutical segment of Abbott Laboratories. Shares of AbbVie offer an above-average yield of 4.2% that could climb even higher. AbbVie offers an above-average dividend now because U.S. Humira sales will soon go the same way as international sales. | AbbVie AbbVie (NYSE: ABBV) was once the pharmaceutical segment of Abbott Laboratories. Shares of AbbVie offer an above-average yield of 4.2% that could climb even higher. AbbVie offers an above-average dividend now because U.S. Humira sales will soon go the same way as international sales. | AbbVie offers an above-average dividend now because U.S. Humira sales will soon go the same way as international sales. AbbVie AbbVie (NYSE: ABBV) was once the pharmaceutical segment of Abbott Laboratories. Shares of AbbVie offer an above-average yield of 4.2% that could climb even higher. |
23154.0 | 2022-08-31 00:00:00 UTC | Curis (CRIS) Gets FDA Nod to Partly Resume Leukemia Study | ABBV | https://www.nasdaq.com/articles/curis-cris-gets-fda-nod-to-partly-resume-leukemia-study | nan | nan | Curis, Inc. CRIS announced that it has received a notification from the FDA, wherein the regulatory body allowed the company to resume enrollment of additional patients in the monotherapy phase of the TakeAim Leukemia study.
The open-label, dose-escalation phase I/II study is evaluating Curis’ IRAK4 kinase inhibitor, emavusertib (CA-4948), for the treatment of patients with relapsed or refractory acute myeloid leukemia (AML) or high-risk myelodysplastic syndrome (MDS).
The company is looking to enroll at least nine additional patients in the given study. Curis is working with clinical sites to resume enrollment of the additional patients. The company expects to release clinical data from the study in 2023.
The FDA reviewed additional data on emavusertib, including data related to the risk of rhabdomyolysis, before allowing Curis to resume enrollment of additional patients in the monotherapy arm of the phase Ia TakeAim Leukemia study.
However, the partial hold remains on the combination therapy phase and the expansion phase of the study. This partial hold will continue to stay until phase Ia of the study is completed and the regulatory body approves proceeding to the next phases of the study.
Shares of Curis were down 9.8% on Tuesday following the announcement of the news as investors were probably expecting a complete lifting of the hold. The stock, however, recovered in pre-market trading on Wednesday.
Curis’ stock has declined 78.8% this year compared with the industry’s decrease of 24.4%.
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Investors must note that in April 2022, the FDA placed a partial clinical hold on Curis’ phase I/II TakeAim leukemia study as well as the phase I/II TakeAim lymphoma study.
Earlier this month, the FDA lifted the partial clinical hold on Curis’ phase I/II TakeAim lymphoma study evaluating emavusertib in patients with B-cell malignancies.
The dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ/AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib), in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL).
Clinical data from this study is expected in 2023.
AbbVie markets Imbruvica in partnership with J&J. Imbruvica is currently approved for treating various hematologic cancers.
AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. The drug has a multi-billion-dollar potential.
Curis currently has no marketed drugs in its portfolio. Therefore, the successful development of emavusertib, along with other pipeline candidates, remains in key focus for the company.
Zacks Rank & Stock to Consider
Curis currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Achilles Therapeutics plc ACHL, which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Achilles Therapeutics’ loss per share estimates narrowed 6.4% for 2022 and 9.6% for 2023 in the past 60 days.
Earnings of Achilles Therapeutics surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ACHL delivered an earnings surprise of 12.45%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ/AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib), in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. | The dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ/AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib), in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. | The dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ/AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib), in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. | AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. The dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ/AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib), in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. |
23155.0 | 2022-08-31 00:00:00 UTC | HDV, ABBV, VZ, PM: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/hdv-abbv-vz-pm%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 iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $86.4 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 119,800,000 to 120,650,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, Verizon Communications Inc (Symbol: VZ) is off about 0.7%, and Philip Morris International Inc (Symbol: PM) is higher by about 0.5%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.32. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, Verizon Communications Inc (Symbol: VZ) is off about 0.7%, and Philip Morris International Inc (Symbol: PM) is higher by about 0.5%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.32. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, Verizon Communications Inc (Symbol: VZ) is off about 0.7%, and Philip Morris International Inc (Symbol: PM) is higher by about 0.5%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.32. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, Verizon Communications Inc (Symbol: VZ) is off about 0.7%, and Philip Morris International Inc (Symbol: PM) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $86.4 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 119,800,000 to 120,650,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.32. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, Verizon Communications Inc (Symbol: VZ) is off about 0.7%, and Philip Morris International Inc (Symbol: PM) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $86.4 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 119,800,000 to 120,650,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.32. |
23156.0 | 2022-08-30 00:00:00 UTC | Amgen (AMGN) Outperforms Industry Year to Date: What's Next? | ABBV | https://www.nasdaq.com/articles/amgen-amgn-outperforms-industry-year-to-date%3A-whats-next | nan | nan | Amgen AMGN has a diverse and growing portfolio of medicines in large therapeutic categories that it expects will help it drive growth through the end of the decade despite a declining pricing environment.
Amgen stock has risen 6.4% this year so far against a decrease of 23.6% for the industry.
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Amgen’s key drugs like Prolia, Repatha and Xgeva 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 EU in January 2022. It is now approved in 40 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 is also rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in the second half of 2022, which could act as catalysts for the stock.
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 2020, Amgen launched Avsola, a biosimilar of J&J JNJ/Merck’s blockbuster immunology medicine, Remicade and in January 2021, the company launched Riabni, a biosimilar of Roche’s Rituxan. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023.
Biosimilars of J&J’s Stelara (ABP 654), Alexion’s Soliris (ABP 959) and Regeneron’s Eylea (ABP 938) are in late state development. The top-line data from a phase III study on ABP 654 showed no clinically meaningful differences between ABP 654 and J&J’s Stelara. The top-line data from the phase III studies on ABP 959 and ABP 983 are expected in 2022.
Amgen’s biosimilars revenues are annualizing at over $2 billion in sales and are expected to more than double from 2021 to 2030. supported by the Amjevita launch and other biosimilars in late-stage development.
In August, Amgen announced a definitive agreement to acquire ChemoCentryx for $52 per share in cash, which amounts to a total enterprise value of approximately $3.7 billion. The acquisition of ChemoCentryx, if successfully closed, will add a strategic new growth asset in Tavneos to Amgen’s portfolio. Tavneos was approved for treating antineutrophil cytoplasmic antibody (ANCA) associated vasculitis, a serious systemic autoimmune disease, in October last year.
Amgen has its share of problems. Increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars.
Amgen’s net selling price has declined for the past few years, with the trend continuing in 2022 due to increased competition. In addition, foreign exchange headwinds, increasing interest rates, 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 the second half of 2022.
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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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. AbbVie Inc. (ABBV): Free Stock Analysis Report | 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. AbbVie Inc. (ABBV): Free Stock Analysis Report | 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. AbbVie Inc. (ABBV): Free Stock Analysis Report | 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. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23157.0 | 2022-08-29 00:00:00 UTC | AbbVie Inc. (ABBV) is Attracting Investor Attention: Here is What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-attracting-investor-attention%3A-here-is-what-you-should-know-0 | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned -5%, compared to the Zacks S&P 500 composite's +3.7% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 6.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
The consensus earnings estimate of $13.90 for the current fiscal year indicates a year-over-year change of +9.5%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -1.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $15.06 billion for the current quarter points to a year-over-year change of +5%. The $59.23 billion and $55.92 billion estimates for the current and next fiscal years indicate changes of +5.4% and -5.6%, 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.
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) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 6.2%. | For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% from what AbbVie is expected to report a year ago. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 6.2%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 6.2%. | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 6.2%. For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. |
23158.0 | 2022-08-29 00:00:00 UTC | The Zacks Analyst Blog Highlights Novartis, J&J, AbbVie, Merck and Pfizer | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-novartis-jj-abbvie-merck-and-pfizer | nan | nan | For Immediate Release
Chicago, IL – August 29, 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: Novartis NVS, J&J JNJ, AbbVie's ABBV, Merck's MRK and Pfizer PFE.
Here are highlights from Friday’s Analyst Blog:
Pharma Stock Roundup: Novartis Spinoff, FDA Updates
This week, Novartis announced the planned spin-off of its generics division, Sandoz, to create a leading European generics company. The FDA granted approval to J&J and AbbVie's cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck's investigational anticoagulant therapy, MK-2060. Pfizer filed an application seeking emergency authorization from the FDA for its Omicron BA.4/BA.5-adapted bivalent COVID-19 booster vaccine.
Recap of the Week's Most Important Stories
Novartis to Spin Off Sandoz Into a New Co.: Novartis announced that it plans to divest its generics and biosimilars division, Sandoz, by way of a 100% spin-off into a new publicly traded company. The new Sandoz will be headquartered in Switzerland. The transaction is expected to be tax-neutral for Novartis and is likely to be completed by the second half of 2023, though Novartis has not received any formal offers for the unit.
In October 2021, Novartis began a strategic review of the Sandoz Division. After examining all options, management has decided that a company spin-off will be in the shareholders' best interest. The Sandoz spin-off will leave behind Novartis' Innovative Medicines unit — its core drug development business.
FDA Approves J&J/AbbVie's Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie's cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). The approval makes Imbruvica the first and currently the only approved treatment for children under 12 years of age suffering from cGVHD. The FDA decision is based on data from the phase I/II iMAGINE study.
AbbVie has developed Imbruvica in collaboration with J&J. Per the terms of the agreement, AbbVie and J&J jointly market Imbruvica in the United States, while J&J holds exclusive rights for marketing the drug outside the country.
The European Commission granted conditional marketing authorization (CMA) to J&J's off-the-shelf bispecific antibody, Tecvayli (teclistamab) as monotherapy for treating patients with relapsed and refractory multiple myeloma. This marks the first approval for Tecvayli in any country. Tecvayli's approval was based on data from the phase I/II MajesTEC-1 study, which showed that treatment with teclistamab resulted in deep and durable responses.
Pfizer Seeks FDA Authorization for Omicron Variant Booster: Pfizer/BioNTech completed filing an application seeking Emergency Use Authorization (EUA) for a 30-µg booster dose of their bivalent Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine for individuals 12 years of age and older. The filing includes data from studies on their bivalent Omicron BA.1-adapted vaccine as well as pre-clinical and manufacturing data from their Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine. Pfizer/BioNTech have already scaled production of the Omicron BA.4/BA.5-adapted bivalent boosters and will be ready to ship doses as soon as the FDA grants EUA.
The companies have also initiated the filing of a conditional marketing authorization application with the European Medicines Agency (EMA) for the Omicron BA.4/BA.5-adapted bivalent vaccine, which is expected to be completed in the coming weeks.
Pfizer/BioNTech announced new data from a phase II/III study evaluating a three 3-µg dose series of its vaccine in children six months through four years of age. The FDA granted emergency authorization for use of the vaccine in this age group in June based on preliminary data based on 10 symptomatic COVID-19 cases from the same study.
The updated data based on 34 cases showed 73.2% vaccine efficacy among children in this age group. Most cases were caused by the Omicron BA.2 variant. Pfizer/BioNTech are preparing an EUA application for an Omicron BA.4/BA.5-adapted bivalent vaccine in children six months through 11 years of age.
Pfizer's bivalent respiratory syncytial virus (RSV) vaccine candidate, or RSVpreF, was found to be effective in a phase III study on the candidate to prevent lower respiratory tract illness caused by RSV in individuals aged 60 years and above. Data from the interim analysis of the RENOIR study demonstrated vaccine efficacy of 66.7% in participants with two or more RSV-associated symptoms. However, the vaccine efficacy was 85.7% in participants with more severe disease having three or more symptoms.
FDA's Fast Track Tag for Merck's Anticoagulant Therapy: The FDA granted Fast Track designation to Merck's pipeline candidate, MK-2060, an anticoagulant therapy for the reduction in risk of major thrombotic cardiovascular events in patients with end-stage renal disease (ESRD). A phase II study is ongoing on MK-2060 in people with ESRD receiving hemodialysis.
In order to develop effective and safer anticoagulants, Factor XI, a blood protein, is being actively pursued as a drug target. MK-2060 has been designed to inhibit Factor XI's ability to activate downstream proteins involved in the blood coagulation cascade.
The NYSE ARCA Pharmaceutical Index declined 0.19% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
In the last five trading sessions, AstraZeneca was the highest gainer (2.6%) while Novartis declined the most (1.8%).
In the past six months, Lilly has gained the highest (29.3%) while Roche declined the most (12.0%).
(See the last pharma stock roundup here: End of SNY's Amcenestrant Development, FDA Updates for AZN, GSK)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The FDA granted approval to J&J and AbbVie's cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck's investigational anticoagulant therapy, MK-2060. Stocks recently featured in the blog include: Novartis NVS, J&J JNJ, AbbVie's ABBV, Merck's MRK and Pfizer PFE. FDA Approves J&J/AbbVie's Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie's cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). | Stocks recently featured in the blog include: Novartis NVS, J&J JNJ, AbbVie's ABBV, Merck's MRK and Pfizer PFE. The FDA granted approval to J&J and AbbVie's cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck's investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie's Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie's cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). | Stocks recently featured in the blog include: Novartis NVS, J&J JNJ, AbbVie's ABBV, Merck's MRK and Pfizer PFE. The FDA granted approval to J&J and AbbVie's cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck's investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie's Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie's cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). | Stocks recently featured in the blog include: Novartis NVS, J&J JNJ, AbbVie's ABBV, Merck's MRK and Pfizer PFE. The FDA granted approval to J&J and AbbVie's cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck's investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie's Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie's cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). |
23159.0 | 2022-08-26 00:00:00 UTC | Why Dividend Growth Stocks Should Be Part of Your Retirement Plan | ABBV | https://www.nasdaq.com/articles/why-dividend-growth-stocks-should-be-part-of-your-retirement-plan | nan | nan | If you are saving for retirement, you should aim to include not just any dividend stocks, but stocks that regularly increase their payouts over time. They can add some important stability to your portfolio as they are normally safe businesses to hold and can pay off in the long haul -- just through their dividend payments.
Here's how the passive income you collect from these types of stocks can grow over time.
Rising dividend payments can add up over time
The real value in a dividend growth stock is that over the years, your dividend income can be much higher than it is today. For example, a company that increases its dividend payment by 5% each year for 25 years will have increased its dividend income by nearly 240%, more than three times what it is paying today.
Healthcare company AbbVie (NYSE: ABBV) is an example of a safe dividend stock to buy and hold, as the drugmaker has posted a profit margin of 22% over the past 12 months. It has also generated more than $22 billion in free cash flow during that time -- more than double the dividends it has paid out to its shareholders ($9.7 billion).
Today, AbbVie pays a dividend yield of 4%. If you were to invest $25,000 into the stock, you would be collecting approximately $1,000 in dividends on an annual basis.
That's a decent chunk of change, but it can be much more significant later on. That's because the stock is a Dividend King, meaning the business has increased its dividend payments for at least 50 years in a row. In just five years, its quarterly dividend payments have more than doubled.
Its most recent increase was an 8% bump-up in the quarterly dividend, from $1.30 to $1.41. If the company were to continue growing its dividend payments by 8% per year, here's how much dividend income an investor would be collecting on a $25,000 investment in AbbVie.
Data source: Chart by author.
After 25 years of increases, the dividend income would total more than $6,800 per year and be more than 27% of your original investment, as shown in the chart.
YEAR QUARTERLY DIVIDEND ANNUAL DIVIDEND % OF ORIGINAL INVESTMENT
0 $251.79 $1,007.14 4.03%
5 $369.96 $1,479.82 5.92%
10 $543.59 $2,174.35 8.70%
15 $798.71 $3,194.83 12.78%
20 $1,173.56 $4,694.25 18.78%
25 $1,724.35 $6,897.39 27.59%
Data source: Chart by author.
If you were to have invested $100,000 in AbbVie, you could be generating about $27,000 annually just in dividend income after 25 years.
It's not just Dividend Kings you can consider but also businesses that are generating huge amounts of free cash flow, such as tech giant Apple (NASDAQ: AAPL), which has reported more than $107 billion in free cash over the past year. Its yield is modest at only 0.6% (the S&P 500 averages a payout of 1.5%), but Apple has increased its dividend payments by 46% in five years, and it could make more aggressive hikes in the future given its impressive financials.
Investors should diversify their holdings
It's difficult to predict a stock's future dividend, since payouts are discretionary and years from now, a business may not be as profitable as it is now. You can, however, minimize that risk by investing in stocks with impressive track records like AbbVie or in businesses that are gushing cash such as Apple.
But even then, it's impossible to know how much their dividend payments might increase over the long term. That's why investors should aim to buy many of these types of stocks to diversify.
Dividend growth stocks can generate a significant amount of passive income during your retirement years if you just buy and hold. That's why any long-term retirement plan should include them.
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David Jagielski has no position in any of the stocks mentioned. 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. | Healthcare company AbbVie (NYSE: ABBV) is an example of a safe dividend stock to buy and hold, as the drugmaker has posted a profit margin of 22% over the past 12 months. Today, AbbVie pays a dividend yield of 4%. If the company were to continue growing its dividend payments by 8% per year, here's how much dividend income an investor would be collecting on a $25,000 investment in AbbVie. | Healthcare company AbbVie (NYSE: ABBV) is an example of a safe dividend stock to buy and hold, as the drugmaker has posted a profit margin of 22% over the past 12 months. Today, AbbVie pays a dividend yield of 4%. If the company were to continue growing its dividend payments by 8% per year, here's how much dividend income an investor would be collecting on a $25,000 investment in AbbVie. | Healthcare company AbbVie (NYSE: ABBV) is an example of a safe dividend stock to buy and hold, as the drugmaker has posted a profit margin of 22% over the past 12 months. Today, AbbVie pays a dividend yield of 4%. If the company were to continue growing its dividend payments by 8% per year, here's how much dividend income an investor would be collecting on a $25,000 investment in AbbVie. | If the company were to continue growing its dividend payments by 8% per year, here's how much dividend income an investor would be collecting on a $25,000 investment in AbbVie. Healthcare company AbbVie (NYSE: ABBV) is an example of a safe dividend stock to buy and hold, as the drugmaker has posted a profit margin of 22% over the past 12 months. Today, AbbVie pays a dividend yield of 4%. |
23160.0 | 2022-08-26 00:00:00 UTC | Pharma Stock Roundup: NVS to Spin Off Sandoz; JNJ, MRK, ABBV's FDA Updates | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-nvs-to-spin-off-sandoz-jnj-mrk-abbvs-fda-updates | nan | nan | This week, Novartis NVS announced the planned spin-off of its generics division, Sandoz, to create a leading European generics company. The FDA granted approval to J&J JNJ and AbbVie’s ABBV cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck’s MRK investigational anticoagulant therapy, MK-2060. Pfizer PFE filed an application seeking emergency authorization from the FDA for its Omicron BA.4/BA.5-adapted bivalent COVID-19 booster vaccine.
Recap of the Week’s Most Important Stories
Novartis to Spin Off Sandoz Into a New Co.: Novartis announced that it plans to divest its generics and biosimilars division, Sandoz, by way of a 100% spin-off into a new publicly traded company. The new Sandoz will be headquartered in Switzerland. The transaction is expected to be tax-neutral for Novartis and is likely to be completed by the second half of 2023, though Novartis has not received any formal offers for the unit. In October 2021, Novartis began a strategic review of the Sandoz Division. After examining all options, management has decided that a company spin-off will be in the shareholders' best interest. The Sandoz spin-off will leave behind Novartis’ Innovative Medicines unit — its core drug development business.
FDA Approves J&J/AbbVie’s Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie’s cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). The approval makes Imbruvica the first and currently the only approved treatment for children under 12 years of age suffering from cGVHD. The FDA decision is based on data from the phase I/II iMAGINE study.
AbbVie has developed Imbruvica in collaboration with J&J. Per the terms of the agreement, AbbVie and J&J jointly market Imbruvica in the United States, while J&J holds exclusive rights for marketing the drug outside the country.
The European Commission granted conditional marketing authorization (CMA) to J&J’s off-the-shelf bispecific antibody, Tecvayli (teclistamab) as monotherapy for treating patients with relapsed and refractory multiple myeloma. This marks the first approval for Tecvayli in any country. Tecvayli’s approval was based on data from the phase I/II MajesTEC-1 study, which showed that treatment with teclistamab resulted in deep and durable responses.
Pfizer Seeks FDA Authorization for Omicron Variant Booster: Pfizer/BioNTech completed filing an application seeking Emergency Use Authorization (EUA) for a 30-µg booster dose of their bivalent Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine for individuals 12 years of age and older. The filing includes data from studies on their bivalent Omicron BA.1-adapted vaccine as well as pre-clinical and manufacturing data from their Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine. Pfizer/BioNTech have already scaled production of the Omicron BA.4/BA.5-adapted bivalent boosters and will be ready to ship doses as soon as the FDA grants EUA.
The companies have also initiated the filing of a conditional marketing authorization application with the European Medicines Agency (EMA) for the Omicron BA.4/BA.5-adapted bivalent vaccine, which is expected to be completed in the coming weeks.
Pfizer/BioNTech announced new data from a phase II/III study evaluating a three 3-µg dose series of its vaccine in children six months through four years of age. The FDA granted emergency authorization for use of the vaccine in this age group in June based on preliminary data based on 10 symptomatic COVID-19 cases from the same study. The updated data based on 34 cases showed 73.2% vaccine efficacy among children in this age group. Most cases were caused by the Omicron BA.2 variant. Pfizer/BioNTech are preparing an EUA application for an Omicron BA.4/BA.5-adapted bivalent vaccine in children six months through 11 years of age.
Pfizer’s bivalent respiratory syncytial virus (RSV) vaccine candidate, or RSVpreF, was found to be effective in a phase III study on the candidate to prevent lower respiratory tract illness caused by RSV in individuals aged 60 years and above. Data from the interim analysis of the RENOIR study demonstrated vaccine efficacy of 66.7% in participants with two or more RSV-associated symptoms. However, the vaccine efficacy was 85.7% in participants with more severe disease having three or more symptoms.
FDA’s Fast Track Tag for Merck’s Anticoagulant Therapy: The FDA granted Fast Track designation to Merck’s pipeline candidate, MK-2060, an anticoagulant therapy for the reduction in risk of major thrombotic cardiovascular events in patients with end-stage renal disease (ESRD). A phase II study is ongoing on MK-2060 in people with ESRD receiving hemodialysis. In order to develop effective and safer anticoagulants, Factor XI, a blood protein, is being actively pursued as a drug target. MK-2060 has been designed to inhibit Factor XI’s ability to activate downstream proteins involved in the blood coagulation cascade.
The NYSE ARCA Pharmaceutical Index declined 0.19% 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, AstraZeneca was the highest gainer (2.6%) while Novartis declined the most (1.8%).
In the past six months, Lilly has gained the highest (29.3%) while Roche declined the most (12.0%).
(See the last pharma stock roundup here: End of SNY’s Amcenestrant Development, FDA Updates for AZN, GSK)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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
Novartis AG (NVS): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Merck & Co., Inc. (MRK): 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. | The FDA granted approval to J&J JNJ and AbbVie’s ABBV cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck’s MRK investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie’s Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie’s cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). AbbVie has developed Imbruvica in collaboration with J&J. | The FDA granted approval to J&J JNJ and AbbVie’s ABBV cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck’s MRK investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie’s Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie’s cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). AbbVie has developed Imbruvica in collaboration with J&J. | The FDA granted approval to J&J JNJ and AbbVie’s ABBV cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck’s MRK investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie’s Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie’s cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). AbbVie has developed Imbruvica in collaboration with J&J. | The FDA granted approval to J&J JNJ and AbbVie’s ABBV cancer drug Imbruvica for a pediatric indication and gave Fast Track designation to Merck’s MRK investigational anticoagulant therapy, MK-2060. FDA Approves J&J/AbbVie’s Imbruvica for Pediatric cGVHD: The FDA approved J&J and AbbVie’s cancer blockbuster medicine, Imbruvica, to treat pediatric patients with chronic graft versus host disease (cGVHD). AbbVie has developed Imbruvica in collaboration with J&J. |
23161.0 | 2022-08-25 00:00:00 UTC | Do Warren Buffett's Recent Moves Spell Doom for This Group of Stocks? | ABBV | https://www.nasdaq.com/articles/do-warren-buffetts-recent-moves-spell-doom-for-this-group-of-stocks | nan | nan | Warren Buffett is frequently called the "Oracle of Omaha." An oracle, by definition, is something that provides wise counsel and often foretells the future. Buffett's uncanny ability to pick stocks that beat the market over the long term seems to justify his nickname.
So when the Oracle of Omaha sells a specific group of stocks pretty much across the board, it raises eyebrows. And that's just what he has done over the past several quarters. Do Buffett's recent moves spell doom for pharma stocks?
Image source: The Motley Fool.
A farewell to pharma
Buffett's buys for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) usually garner a lot more attention than his stock sales do. It's not surprising, therefore, that there were few if any headlines trumpeting Berkshire's complete exit from its position in Royalty Pharma (NASDAQ: RPRX) in the second quarter of 2022.
Berkshire first initiated a stake in Royalty Pharma in Q2 2021. It's not unusual for Buffett and his investment managers to close out positions within a year or so. What makes the sale of Royalty Pharma stand out, though, is what happened previously.
In the first quarter of this year, Berkshire sold all of its remaining shares of two other pharma stocks -- AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). The giant conglomerate has been steadily trimming its positions in the two stocks in the quarters leading up to Q1.
There's even more evidence that pharma stocks have fallen out of favor with Buffett, though. Berkshire has also owned shares of Pfizer (NYSE: PFE) and Merck (NYSE: MRK) over the past couple of years. But neither stock is in its portfolio now.
Sure, Berkshire still owns one big pharma stock. Johnson & Johnson (NYSE: JNJ) has been a holding for years. However, the stake in J&J is minuscule -- only 327,100 shares. This represents a tiny sliver of Berkshire's total portfolio.
Does Buffett hate pharma stocks?
The obvious question that comes to mind is: Why has Buffett bailed on pharma stocks? Does he now hate the pharmaceutical industry?
We know that Buffett hasn't completely soured on healthcare. Berkshire still owns over 36 million shares of dialysis provider Davita. More importantly, Berkshire added to its new position in healthcare services company McKesson in Q2.
It's not that all pharma stocks have been losers. Shares of Bristol Myers Squibb and Merck (two stocks that Berkshire once owned but later dumped) have soared close to 20% so far in 2022.
We can't blame it on the potential impact of forthcoming Medicare drug price changes, either. Berkshire sold its stakes in pharma stocks (other than J&J) well before Congress passed the Inflation Reduction Act that included these Medicare changes.
Perhaps the best reason why Buffett has become disenchanted with pharma stocks is simply that he was never very enchanted with them in the first place. The pharmaceutical industry really isn't in the legendary investor's wheelhouse despite his several purchases of pharma stocks through the years.
Buffett could also want to build up Berkshire's already sizable cash position to buy what he likes to call an "elephant." This theory does have something in its favor: Berkshire won regulatory approval last week to buy up to 50% of Occidental Petroleum.
Premature doom and gloom
We can only speculate about Buffett's motivations to sell pharma stocks. However, any general doom and gloom among investors about these stocks could be premature.
Yes, the new power for Medicare to negotiate the prices of the costliest prescription drugs could hurt some pharmaceutical companies. However, the changes will be phased in beginning in 2026. And they won't impact all drugs.
Don't underestimate the creativity and ingenuity of big pharma companies. If there's a way to drive revenue and profits higher, they'll probably find it.
Buffett deserves to be called the Oracle of Omaha. But even oracles don't always know what the future holds. Some of the pharma stocks that Berkshire has exited just might beat the market over the next decade.
10 stocks we like better than AbbVie
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*Stock Advisor returns as of August 17, 2022
Keith Speights has positions in AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares), Bristol Myers Squibb, and Merck & Co. The Motley Fool recommends Johnson & Johnson and McKesson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the first quarter of this year, Berkshire sold all of its remaining shares of two other pharma stocks -- AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | See the 10 stocks *Stock Advisor returns as of August 17, 2022 Keith Speights has positions in AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. In the first quarter of this year, Berkshire sold all of its remaining shares of two other pharma stocks -- AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | In the first quarter of this year, Berkshire sold all of its remaining shares of two other pharma stocks -- AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). See the 10 stocks *Stock Advisor returns as of August 17, 2022 Keith Speights has positions in AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! In the first quarter of this year, Berkshire sold all of its remaining shares of two other pharma stocks -- AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. |
23162.0 | 2022-08-25 00:00:00 UTC | Annovis Bio (ANVS) Begins Dosing in Phase III Parkinson's Study | ABBV | https://www.nasdaq.com/articles/annovis-bio-anvs-begins-dosing-in-phase-iii-parkinsons-study | nan | nan | Annovis Bio ANVS announced the dosing of the first patient in a phase III study evaluating the company’s lead candidate, buntanetap, for the treatment of Parkinson’s Disease (PD).
The company announced top-line data from its phase IIa study of buntanetap in PD patients, treated with multiple-dose cohorts (5mg, 10mg, 20mg, 40mg or 80mg) once daily, back in October 2021. The study found buntanetap is safe, exhibiting no adverse effects in the subjects.
Moreover, compared to the placebo-controlled group, in the phase IIa study, buntanetap demonstrated statistically significant improvements in motor dexterity, speed and accuracy in early-to-moderate PD patients.
Post the success of the phase II study, the company had meetings with the FDA to transition the drug to its late-stage trial.
Last month Annovis received a positive notice from the FDA to progress with the phase III study of buntanetap in PD.
The randomized, double-blind, placebo-controlled late-stage study evaluates the safety, efficacy and tolerability of 20mg dosage of buntanetap in 450 PD patients, for six months, on top of their standard care procedure.
Apart from PD, buntanetap, a translational inhibitor of neurotoxic proteins is also being evaluated in Alzheimer’s disease (AD) and dementia in Down syndrome (AD-DS).
Stock price of Annovis Bio’s was up 5.88% during market hours on Aug 24, post the announcement of the aforementioned news. Annovis shares have lost 35.5% in the year-to-date period compared with the industry’s 21.6% decline.
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The target market has potential. In May, Pharma giant AbbVie ABBV submitted a new drug application to the FDA for ABBV-951 (foscarbidopa/foslevodopa) for treating motor fluctuations in patients with advanced PD.
AbbVie’s ABBV-951 has been designed to offer the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for PD patients.
Annovis Bio, Inc. Price
Annovis Bio, Inc. price | Annovis Bio, Inc. Quote
Zacks Rank and Stocks to Consider
Annovis Bio currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Rhythm Pharmaceuticals RYTM and Pliant Therapeutics PLRX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Rhythm’s loss per share estimates for 2022 have widened from $3.74 to $3.82 in the past 30 days. The same for 2023 has narrowed from $3.40 to $3.08 in the same time frame.
Earnings of Rhythm missed estimates in two of the trailing four quarters and beat the same on the remaining two occasions. The average earnings surprise for RYTM is 2.97%.
Pliant’s loss per share estimates for 2022 have improved from $3.28 to $3.01 in the past 30 days. The same for 2023 has narrowed from $3.68 to $3.29 in the same time frame.
Earnings of Pliant beat estimates in two of the trailing four quarters, was in one, and missed estimates in remaining one occasion. The average earnings surprise for PLRX is 0.90%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
Rhythm Pharmaceuticals, Inc. (RYTM): Free Stock Analysis Report
Annovis Bio, Inc. (ANVS): Free Stock Analysis Report
Pliant Therapeutics, Inc. (PLRX): 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. | In May, Pharma giant AbbVie ABBV submitted a new drug application to the FDA for ABBV-951 (foscarbidopa/foslevodopa) for treating motor fluctuations in patients with advanced PD. AbbVie’s ABBV-951 has been designed to offer the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for PD patients. AbbVie Inc. (ABBV): Free Stock Analysis Report | In May, Pharma giant AbbVie ABBV submitted a new drug application to the FDA for ABBV-951 (foscarbidopa/foslevodopa) for treating motor fluctuations in patients with advanced PD. AbbVie’s ABBV-951 has been designed to offer the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for PD patients. AbbVie Inc. (ABBV): Free Stock Analysis Report | In May, Pharma giant AbbVie ABBV submitted a new drug application to the FDA for ABBV-951 (foscarbidopa/foslevodopa) for treating motor fluctuations in patients with advanced PD. AbbVie’s ABBV-951 has been designed to offer the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for PD patients. AbbVie Inc. (ABBV): Free Stock Analysis Report | In May, Pharma giant AbbVie ABBV submitted a new drug application to the FDA for ABBV-951 (foscarbidopa/foslevodopa) for treating motor fluctuations in patients with advanced PD. AbbVie’s ABBV-951 has been designed to offer the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for PD patients. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23163.0 | 2022-08-25 00:00:00 UTC | AbbVie (ABBV), J&J's Imbruvica Gets FDA Nod for cGVHD in Kids | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-jjs-imbruvica-gets-fda-nod-for-cgvhd-in-kids | nan | nan | AbbVie ABBV and partner J&J JNJ announced that Imbruvica, their blockbuster BTK inhibitor (BTKi) drug, has received label expansion approval from the FDA to treat chronic graft versus host disease (cGVHD) in pediatric patients.
The FDA granted approval to use Imbruvica in pediatric patients aged one year and older who have failed at least one line of systemic therapy. The drug is already approved for treating cGVHD in adults.
Please note that this is the 12th FDA approval secured by both AbbVie and J&J for Imbruvica. The approval also makes Imbruvica the first and currently the only approved treatment for children under 12 years of age suffering from cGVHD.
The FDA decision is based on data from the phase I/II iMAGINE study, which evaluated Imbruvica in pediatric and young adult patients aged one year to less than 22 years suffering from moderate or severe cGVHD. Data from the study showed that patients aged between 1 to 19 years treated with Imbruvica achieved an overall response rate (ORR) of 60% through week 25. The safety profile of the drug was consistent with those observed in adult patients.
While shares of AbbVie have gained 1.9% in the year so far, J&J’s shares have lost 3.2%. The industry has declined 0.6% year to date.
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cGVHD is a rare condition, which can occur in patients who have received peripheral blood or bone marrow stem cell transplantation due to treatments for blood cancer. cGVHD arises when the donated blood or stem cells launch an immune attack on the recipient’s body. This impacts major body organs of the recipient, including the skin and mouth. Presently, the current standard of treatment for cGVHD in the pediatric population is steroids.
Per J&J, the drug’s unique kinase profile gives it a clinical benefit for cGVHD. In fact, Imbruvica inhibits both Bruton's tyrosine kinase (BTK) and interleukin-2-inducible T-cell kinase (ITK) proteins.
Apart from cGVHD, Imbruvica is approved for multiple indications, including five hematologic cancers. These include chronic lymphocytic leukemia (CLL)/small lymphocytic lymphoma (SLL), mantle cell lymphoma,Waldenström’s macroglobulinemia and marginal zone lymphoma in various settings and patient population
AbbVie has developed Imbruvica in collaboration with J&J. Per the terms of the agreement, AbbVie and J&J jointly market Imbruvica in the United States, while J&J holds exclusive rights for marketing the drug outside the country. In the second quarter of 2022, AbbVie recorded $1.15 billion as worldwide net revenues from Imbruvica sales. This $1.15 billion figure includes $283 million recorded by AbbVie as a share of profit from the international sales of the J&J-partnered drug.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Johnson & Johnson Price
Johnson & Johnson price | Johnson & Johnson Quote
Zacks Rank & Stocks to Consider
AbbVie and J&J both currently carry a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Assertio ASRT and Morphic MORF. While Morphic sports a Zacks Rank #1 (Strong Buy) at present, Assertio carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for Morphic’s 2022 loss per share have narrowed from $3.38 to $1.75. Loss estimates for 2023 have narrowed from $3.91 to $3.77 during the same period. Shares of Morphic have lost 33.7% in the year-to-date period.
Earnings of Morphic beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 48.29%, on average. In the last reported quarter, MORF delivered an earnings surprise of 183.95%.
In the past 30 days, estimates for Assertio’s 2022 earnings per share have risen from 40 cents to 49 cents. Earnings estimates for 2023 have risen from 29 cents to 30 cents during the same period. Shares of Assertio have risen 32.6% in the year-to-date period.
Earnings of Assertio beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 126.39%, on average. In the last reported quarter, ASRT delivered an earnings surprise of 100.00%.
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
Johnson & Johnson (JNJ): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Assertio Holdings, Inc. (ASRT): Free Stock Analysis Report
Morphic Holding, Inc. (MORF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV and partner J&J JNJ announced that Imbruvica, their blockbuster BTK inhibitor (BTKi) drug, has received label expansion approval from the FDA to treat chronic graft versus host disease (cGVHD) in pediatric patients. Please note that this is the 12th FDA approval secured by both AbbVie and J&J for Imbruvica. While shares of AbbVie have gained 1.9% in the year so far, J&J’s shares have lost 3.2%. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Johnson & Johnson Price Johnson & Johnson price | Johnson & Johnson Quote Zacks Rank & Stocks to Consider AbbVie and J&J both currently carry a Zacks Rank #3 (Hold). AbbVie ABBV and partner J&J JNJ announced that Imbruvica, their blockbuster BTK inhibitor (BTKi) drug, has received label expansion approval from the FDA to treat chronic graft versus host disease (cGVHD) in pediatric patients. Please note that this is the 12th FDA approval secured by both AbbVie and J&J for Imbruvica. | AbbVie ABBV and partner J&J JNJ announced that Imbruvica, their blockbuster BTK inhibitor (BTKi) drug, has received label expansion approval from the FDA to treat chronic graft versus host disease (cGVHD) in pediatric patients. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Johnson & Johnson Price Johnson & Johnson price | Johnson & Johnson Quote Zacks Rank & Stocks to Consider AbbVie and J&J both currently carry a Zacks Rank #3 (Hold). Please note that this is the 12th FDA approval secured by both AbbVie and J&J for Imbruvica. | AbbVie ABBV and partner J&J JNJ announced that Imbruvica, their blockbuster BTK inhibitor (BTKi) drug, has received label expansion approval from the FDA to treat chronic graft versus host disease (cGVHD) in pediatric patients. Please note that this is the 12th FDA approval secured by both AbbVie and J&J for Imbruvica. While shares of AbbVie have gained 1.9% in the year so far, J&J’s shares have lost 3.2%. |
23164.0 | 2022-08-24 00:00:00 UTC | FDA Oks AbbVie' Imbruvica For Treatment Of Pediatric Patients With Chronic Graft Versus Host Disease | ABBV | https://www.nasdaq.com/articles/fda-oks-abbvie-imbruvica-for-treatment-of-pediatric-patients-with-chronic-graft-versus | nan | nan | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved the use of Imbruvica or ibrutinib for the treatment of pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy.
It is the first approved treatment option for children with chronic graft versus host disease or cGVHD under 12 years of age and the only Bruton's tyrosine kinase inhibitor (BTKi) treatment for a pediatric patient population, AbbVie said in a statement.
Chronic graft versus host disease is a rare condition that can occur in patients after receiving peripheral blood or bone marrow stem cell transplantation often related to blood cancer treatment.
Imbruvica was the first treatment approved in the U.S. in 2017 for adult patients with cGVHD after failure of one or more lines of systemic therapy.
The recommended dose of Imbruvica for cGVHD patients 12 years and older is 420 mg taken orally once daily until disease progression or unacceptable toxicity.
In cGVHD patients one year old to less than 12 years of age, the recommended dose of IMBRUVICA is 240 mg/m2 taken orally once daily (up to a dose of 420 mg) until disease progression or unacceptable toxicity.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved the use of Imbruvica or ibrutinib for the treatment of pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy. It is the first approved treatment option for children with chronic graft versus host disease or cGVHD under 12 years of age and the only Bruton's tyrosine kinase inhibitor (BTKi) treatment for a pediatric patient population, AbbVie said in a statement. Imbruvica was the first treatment approved in the U.S. in 2017 for adult patients with cGVHD after failure of one or more lines of systemic therapy. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved the use of Imbruvica or ibrutinib for the treatment of pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy. It is the first approved treatment option for children with chronic graft versus host disease or cGVHD under 12 years of age and the only Bruton's tyrosine kinase inhibitor (BTKi) treatment for a pediatric patient population, AbbVie said in a statement. The recommended dose of Imbruvica for cGVHD patients 12 years and older is 420 mg taken orally once daily until disease progression or unacceptable toxicity. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved the use of Imbruvica or ibrutinib for the treatment of pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy. It is the first approved treatment option for children with chronic graft versus host disease or cGVHD under 12 years of age and the only Bruton's tyrosine kinase inhibitor (BTKi) treatment for a pediatric patient population, AbbVie said in a statement. In cGVHD patients one year old to less than 12 years of age, the recommended dose of IMBRUVICA is 240 mg/m2 taken orally once daily (up to a dose of 420 mg) until disease progression or unacceptable toxicity. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved the use of Imbruvica or ibrutinib for the treatment of pediatric patients one year and older with chronic graft versus host disease after failure of one or more lines of systemic therapy. It is the first approved treatment option for children with chronic graft versus host disease or cGVHD under 12 years of age and the only Bruton's tyrosine kinase inhibitor (BTKi) treatment for a pediatric patient population, AbbVie said in a statement. Chronic graft versus host disease is a rare condition that can occur in patients after receiving peripheral blood or bone marrow stem cell transplantation often related to blood cancer treatment. |
23165.0 | 2022-08-24 00:00:00 UTC | Amgen (AMGN) Posts Positive Data from Soliris' Biosimilar Study | ABBV | https://www.nasdaq.com/articles/amgen-amgn-posts-positive-data-from-soliris-biosimilar-study | nan | nan | Amgen Inc. AMGN announced positive top-line data from the phase III study evaluating its biosimilar candidate, ABP 959, for the treatment of adult patients with paroxysmal nocturnal hemoglobinuria (“PNH”).
The DAHLIA study evaluated the safety and efficacy of ABP 959, a biosimilar candidate to Alexion’s [now part of AstraZeneca AZN] C5 inhibitor, Soliris, for treating adult patients with PNH.
AZN closed the acquisition of rare-disease drugmaker, Alexion, for $39 billion in July 2021.
The buyout of Alexion strengthened AstraZeneca’s immunology franchise and added blockbuster rare disease drug, Soliris, to the latter’s portfolio.
The above-mentioned phase III study compared ABP 959 to Soliris for addressing PNH.
Data from the study demonstrated no clinically meaningful differences between ABP 959 and Soliris based on the control of intravascular hemolysis as measured by lactate dehydrogenase (LDH) at week 27 of treatment – the study’s primary endpoint.
Also, the safety and immunogenicity profile of ABP 959 was comparable to that of Soliris.
The encouraging data on ABP 959, underlines Amgen’s strength and expertise in offering patients with high-quality, biologic therapies.
Shares of Amgen have rallied 8.6% this year against the industry’s decline of 22%.
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We note that revenues from biosimilars remain a key source of income for AMGN. The company boasts a strong portfolio of biosimilar products with potential new products expected to drive long-term growth.
Key biosimilars in Amgen’s portfolio include Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (biosimilar of Roche’s Avastin), Avsola (a biosimilar to J&J/Merck’s blockbuster immunology medicine Remicade) and Amgevita (biosimilar of AbbVie’s ABBV Humira). In the United States, Amjevita is expected to be launched in early 2023.
Humira, AbbVie’s flagship product is a key top driver for the company and the drug continues to witness strong demand trends in the United States. AbbVie remains heavily dependent on Humira for revenues.
ABBV is facing direct biosimilar competition in Europe and other countries where Humira generics have already been launched.
Amgen’s biosimilars revenues are annualizing at over $2 billion in sales while it is expected to more than double by 2030 supported by the Amjevita launch and other biosimilars in late-stage development like ABP 959.
Zacks Rank & Stock to Consider
Amgen currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Achilles Therapeutics plc ACHL,which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Achilles Therapeutics’ loss per share estimates narrowed 6.4% for 2022 and 9.6% for 2023 in the past 60 days.
Earnings of Achilles Therapeutics surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ACHL delivered an earnings surprise of 12.45%, on average.
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AstraZeneca PLC (AZN): 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. | Humira, AbbVie’s flagship product is a key top driver for the company and the drug continues to witness strong demand trends in the United States. Key biosimilars in Amgen’s portfolio include Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (biosimilar of Roche’s Avastin), Avsola (a biosimilar to J&J/Merck’s blockbuster immunology medicine Remicade) and Amgevita (biosimilar of AbbVie’s ABBV Humira). AbbVie remains heavily dependent on Humira for revenues. | Key biosimilars in Amgen’s portfolio include Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (biosimilar of Roche’s Avastin), Avsola (a biosimilar to J&J/Merck’s blockbuster immunology medicine Remicade) and Amgevita (biosimilar of AbbVie’s ABBV Humira). Humira, AbbVie’s flagship product is a key top driver for the company and the drug continues to witness strong demand trends in the United States. AbbVie remains heavily dependent on Humira for revenues. | Key biosimilars in Amgen’s portfolio include Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (biosimilar of Roche’s Avastin), Avsola (a biosimilar to J&J/Merck’s blockbuster immunology medicine Remicade) and Amgevita (biosimilar of AbbVie’s ABBV Humira). Humira, AbbVie’s flagship product is a key top driver for the company and the drug continues to witness strong demand trends in the United States. AbbVie remains heavily dependent on Humira for revenues. | Key biosimilars in Amgen’s portfolio include Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (biosimilar of Roche’s Avastin), Avsola (a biosimilar to J&J/Merck’s blockbuster immunology medicine Remicade) and Amgevita (biosimilar of AbbVie’s ABBV Humira). Humira, AbbVie’s flagship product is a key top driver for the company and the drug continues to witness strong demand trends in the United States. AbbVie remains heavily dependent on Humira for revenues. |
23166.0 | 2022-08-24 00:00:00 UTC | Top Stocks To Buy Now? 3 Dividend Paying Stocks To Watch Today | ABBV | https://www.nasdaq.com/articles/top-stocks-to-buy-now-3-dividend-paying-stocks-to-watch-today | nan | nan | Are These The Top Dividend Paying Stocks To Buy Right Now?
Dividend-paying stocks have long been a popular investment, offering both income and the potential for capital gains. While most stocks do not pay dividends, there are a number of companies that have chosen to distribute a portion of their profits to shareholders. Dividends can be paid out quarterly or annually, and they are typically determined by the board of directors. When deciding whether to invest in a dividend-paying stock, it is important to consider the company’s financial stability and its history of dividend payments.
What Is A Dividend?
A dividend is a distribution of a company’s earnings to shareholders. The distribution is usually made in the form of cash, but it can also be in the form of stock or other assets. Dividends are typically paid out on a quarterly basis, but they can also be paid out monthly, semi-annually, or annually. Companies are not required to pay dividends, and many choose not to because they want to reinvest their earnings back into the business.
However, paying dividends can be a good way to reward shareholders for their investment. It can also help to attract new investors and Signal that the company is doing well financially. While dividends are not the only factor that investors consider when making investment decisions, they can be an important factor in deciding whether or not to invest in a particular company.
Dividend payments can fluctuate year to year, and some companies may choose to suspend or reduce their dividend payout in times of financial distress. As a result, dividend stocks may not be suitable for all investors. However, for those seeking income and long-term growth potential, dividend-paying stocks can be an attractive option. If you’re keen on dividend-paying stocks, here are three for your watchlist in the stock market this week.
Dividend Paying Stocks To Buy [Or Avoid] Now
AbbVie Inc. (NYSE: ABBV)
Exxon Mobil Corporation (NYSE: XOM)
International Business Machines Corporation (NYSE: IBM)
AbbVie (NYSE: ABBV)
AbbVie Inc is a pharmaceutical company that manufactures and markets branded pharmaceuticals, generic drugs, and over-the-counter products. AbbVie’s products include treatments for cancer, immune disorders, and viral infections. The company has operations in over 75 countries and markets its products in more than 170 countries. Moreover, ABBV has an annual dividend yield of 4.08%.
Late last month, AbbVie reported second-quarter 2022 financial results. In them, the company posted earnings per share of $3.51, on revenue of $14.6 billion. In addition, the company saw a 4.5% increase in revenue growth year-over-year. AbbVie also reaffirmed its previously estimated 2022 earnings of $13.78 to $13.98 a share. During the last year of trading activity, ABBV stock is up 15.75% as of Wednesday morning. Shares of ABBV stock are currently trading at $138.53 per share.
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; Palo Alto Networks Rallies On Earnings
Exxon Mobil (NYSE: XOM)
Next, Exxon Mobil is one of the world’s largest international oil and gas companies. The company is known for its upstream oil and gas exploration and production, as well as downstream refining and marketing of petroleum products. XOM has operations in more than 200 countries and territories around the world. Exxon Mobil’s products include crude oil, natural gas, gasoline, diesel fuel, heating oil, aviation fuel, lubes, and other petroleum-based products. Exxon Mobil also has a significant chemical business. ExxonMobil Chemical is one of the world’s largest chemical companies. Currently, XOM’s annual dividend yield is 3.57%.
Last month, the company posted better-than-expected Q2 2022 financial results. In detail, Exxon Mobil reported earnings per share of $4.14, on revenue of $115.7 billion. Wall Street consensus estimates were earnings per share of $3.80, on revenue of $120.2 billion. Moreover, XOM notched a 70.8% increase in revenue during the same period, a year prior.
Source: TD Ameritrade TOS
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International Business Machines (NYSE: IBM)
International Business Machines (IBM) is a multinational technology company that manufactures and sells computer hardware, software, and services. Founded in 1911, IBM has operations in more than 170 countries and employs over 350,000 people. IBM is one of the world’s largest information technology companies. The company’s products and services include cloud computing, cognitive computing, artificial intelligence, data analytics, and security. IBM has a long history of innovation, including the development of the personal computer, the floppy disk, the relational database, and the UPC barcode. In recent years, IBM has been focused on artificial intelligence, cloud computing, and quantum computing. Today, the company has an annual dividend yield of 4.92%.
Also, just last month IBM reported its second-quarter financial results. Diving in, the company beat Wall Street’s revenue and earnings estimates of $15.54B vs $15.18B and $2.31 per share, vs $2.27 per share. Though, the company came in under expectations for its forecast for cash flow. The management team from IBM commented it now estimates $10 billion in free cash flow, which is lower than its previous range of $10 billion to $10.5 billion they announced back in April. In the last 6 months, IBM stock has rallied back over 10%. On Wednesday, IBM stock is currently trading at $134.35 per share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Dividend Paying Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Exxon Mobil Corporation (NYSE: XOM) International Business Machines Corporation (NYSE: IBM) AbbVie (NYSE: ABBV) AbbVie Inc is a pharmaceutical company that manufactures and markets branded pharmaceuticals, generic drugs, and over-the-counter products. AbbVie’s products include treatments for cancer, immune disorders, and viral infections. Moreover, ABBV has an annual dividend yield of 4.08%. | Dividend Paying Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Exxon Mobil Corporation (NYSE: XOM) International Business Machines Corporation (NYSE: IBM) AbbVie (NYSE: ABBV) AbbVie Inc is a pharmaceutical company that manufactures and markets branded pharmaceuticals, generic drugs, and over-the-counter products. AbbVie’s products include treatments for cancer, immune disorders, and viral infections. Moreover, ABBV has an annual dividend yield of 4.08%. | Dividend Paying Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Exxon Mobil Corporation (NYSE: XOM) International Business Machines Corporation (NYSE: IBM) AbbVie (NYSE: ABBV) AbbVie Inc is a pharmaceutical company that manufactures and markets branded pharmaceuticals, generic drugs, and over-the-counter products. AbbVie’s products include treatments for cancer, immune disorders, and viral infections. Moreover, ABBV has an annual dividend yield of 4.08%. | Dividend Paying Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Exxon Mobil Corporation (NYSE: XOM) International Business Machines Corporation (NYSE: IBM) AbbVie (NYSE: ABBV) AbbVie Inc is a pharmaceutical company that manufactures and markets branded pharmaceuticals, generic drugs, and over-the-counter products. AbbVie’s products include treatments for cancer, immune disorders, and viral infections. Moreover, ABBV has an annual dividend yield of 4.08%. |
23167.0 | 2022-08-24 00:00:00 UTC | Want Passive Income? Invest In These 3 Dividend Kings | ABBV | https://www.nasdaq.com/articles/want-passive-income-invest-in-these-3-dividend-kings | nan | nan | Economic data has been mixed in recent weeks, which has led to an ongoing debate about whether the U.S. economy is in a recession. One side has the strong July jobs report to fall back on, while the other side can point to two consecutive quarters of negative gross domestic product growth. Ultimately, the official determination will be left to the National Bureau of Economic Research in the months to come.
Regardless of recession status, it would be wise to prepare for one. And there's arguably no better way to do so than by buying shares of Dividend Kings. Such companies possess established business models that have allowed rising dividends for at least 50 consecutive years. Here are three picks for income investors to consider adding to their portfolios.
Image source: Getty Images.
1. Altria Group
Altria Group's (NYSE: MO) 48.2% cigarette retail share makes it the most dominant player in the U.S. The company's crown jewel cigarette brand, Marlboro, accounted for 42.6% of the U.S. cigarette retail share through the first half of 2022.
Well-established cigarette brands are quite resilient, as many smokers keep up the habit even in more challenging economic times. Pricing increases more than offset volume declines, which is how Altria Group's revenue net of excise taxes through the first half of this year managed to edge a fraction of a percent higher to $10.19 billion.
While the company may be best known for cigarettes, it also produces several oral tobacco products and has ownership stakes in Anheuser-Busch Inbev and Juul Labs, among other companies. Those strategic product areas and investments should pave the way for modest growth moving forward, which is why Wall Street analysts are expecting 4.3% annual earnings growth from the company through the next five years.
And Altria Group's whopping 7.9% dividend yield doesn't appear to be a yield trap because its dividend payout ratio clocks in a bit below its targeted 80% payout ratio. This allows the company to retain enough capital to pay down debt, repurchase shares, and complete acquisitions.
Altria Group is valued at a forward price-to-earnings (P/E) ratio of just 9.4. For context, this is much lower than the tobacco industry's average forward P/E ratio of 12.9.
2. AbbVie
Few items are as important to sustaining life than prescription medications, which is what makes AbbVie (NYSE: ABBV) about as recession-proof as a Dividend King could possibly be. The company's portfolio includes 10 drugs that are on track to record at least $1 billion in sales in 2022. This includes the mega-blockbuster Humira, which is set to generate $20 billion in sales this year.
Even though Humira's sales will drop quickly after its patent expires in 2023, AbbVie is well-prepared. In recent months, AbbVie has secured major regulatory approvals from the U.S. Food and Drug Administration for Skyrizi and Rinvoq. In total, the company has approximately five dozen compounds in different stages of clinical development in its pipeline.
AbbVie's market-beating 4% dividend yield also looks to be safe. Along with the robust drug pipeline to support future revenue and earnings, the company's dividend payout ratio is positioned to be a manageable 40.7% in 2022.
And at a forward P/E ratio of 10.2, AbbVie is discounted compared to the pharmaceutical industry's average forward P/E ratio of 13.4. This creates an adequate margin of safety for investors while they wait for the company to execute on its plan to move beyond Humira.
3. Genuine Parts
Inflation is eating away at discretionary income, and semiconductor chip shortages are contributing to disruptions in new car production. This means that most people will have to continue driving their used vehicles for the foreseeable future, which is good news for the automotive and industrial replacement parts retailer Genuine Parts (NYSE: GPC).
That's why analysts are expecting nearly 5% annual earnings growth from the company over the next five years. And with the dividend payout ratio poised to be 44.9% in 2022, there should be plenty of room for future dividend growth.
The only real downside to Genuine Parts at this time is its valuation. The stock's 2.3% dividend yield is significantly lower than its 10-year median of 2.8%. I'd personally be more interested in Genuine Parts if it was closer to that 2.8% yield, which would require the share price to dip from $160 to around $130.
10 stocks we like better than Altria Group
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Kody Kester has positions in AbbVie, Altria Group, and Genuine Parts Company. The Motley Fool recommends Anheuser-Busch InBev NV. 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 Few items are as important to sustaining life than prescription medications, which is what makes AbbVie (NYSE: ABBV) about as recession-proof as a Dividend King could possibly be. Even though Humira's sales will drop quickly after its patent expires in 2023, AbbVie is well-prepared. In recent months, AbbVie has secured major regulatory approvals from the U.S. Food and Drug Administration for Skyrizi and Rinvoq. | See the 10 stocks *Stock Advisor returns as of August 17, 2022 Kody Kester has positions in AbbVie, Altria Group, and Genuine Parts Company. AbbVie Few items are as important to sustaining life than prescription medications, which is what makes AbbVie (NYSE: ABBV) about as recession-proof as a Dividend King could possibly be. Even though Humira's sales will drop quickly after its patent expires in 2023, AbbVie is well-prepared. | See the 10 stocks *Stock Advisor returns as of August 17, 2022 Kody Kester has positions in AbbVie, Altria Group, and Genuine Parts Company. AbbVie Few items are as important to sustaining life than prescription medications, which is what makes AbbVie (NYSE: ABBV) about as recession-proof as a Dividend King could possibly be. Even though Humira's sales will drop quickly after its patent expires in 2023, AbbVie is well-prepared. | See the 10 stocks *Stock Advisor returns as of August 17, 2022 Kody Kester has positions in AbbVie, Altria Group, and Genuine Parts Company. AbbVie Few items are as important to sustaining life than prescription medications, which is what makes AbbVie (NYSE: ABBV) about as recession-proof as a Dividend King could possibly be. Even though Humira's sales will drop quickly after its patent expires in 2023, AbbVie is well-prepared. |
23168.0 | 2022-08-23 00:00:00 UTC | 7 Top-Rated Large-Cap Stocks to Buy and Hold | ABBV | https://www.nasdaq.com/articles/7-top-rated-large-cap-stocks-to-buy-and-hold-0 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Top-rated large-cap stocks can offer a bit of security in volatile times.
After the relief rally earlier this month, stocks may be in for another bout of weakness. Uncertainties like inflation, rising interest rates and a potential recession have still yet to be fully absorbed by the market. That may be a discouraging prospect for anyone looking for short-term opportunities.
But if you invest in top-rated large-cap stocks with a long time horizon, further market volatility may work in your favor. Just as a bull market typically pushes both high-quality and low-quality stocks to higher prices, the opposite is true for a market downturn.
While pushing down more speculative plays to prices more reflective of their fundamentals, the market can also push top-rated large-cap stocks to very favorable price points for “buy and hold” investors.
That’s the case here with the seven top-rated large-cap stocks listed below. Each one earns either an “A” or “B” rating in my Portfolio Grader. Consider entering/add to positions in them, as choppy waters remain for the market.
ABBV AbbVie $140.34
ELV Elevance Health $507.00
GD General Dynamics $234.49
KO Coca-Cola $64.20
TSLA Tesla $869.74
UNH UnitedHealth Group $544.57
XOM ExxonMobil $94.01
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
As a major pharmaceutical company, AbbVie (NYSE:ABBV) is a great recession-resistant stock to include in any portfolio. A downturn could dampen demand for many sectors, yet people need healthcare, even in a recession.
That said, I can see why there may be some reservations about buying ABBV stock today. Between losing exclusivity for its Humira rheumatoid arthritis drug and news of it paying more than $2 billion to resolve opioid litigation, it may seem as if it has too many headwinds right now.
However, one can argue that these past issues are more than priced in, given the stock’s current low valuation (forward earnings multiple of 10.2x).
Furthermore, as it diversifies its product portfolio, it may have a path to substantially higher prices. Along with this, AbbVie pays out a nice dividend (3.9% forward yield), with its payout growing by double-digits annually over the past five years.
This stock earns a “B” rating in my Portfolio Grader.
Elevance Health (ELV)
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Formerly known as Anthem, Elevance Health (NYSE:ELV) is the largest for-profit company providing health insurance under the Blue Cross Blue Shield brand. All and all, it’s one of the top-rated large-cap stocks to make a long-term holding.
Although it’s still moving higher, as the market pulls back, ELV stock trades at a favorable valuation (17.5x earnings). It can easily sustain this earnings multiple, as it’s expected to continue growing its earnings per share (EPS) by around 12.8% next year, and by about 13.6% in 2024.
Elevance could continue to climb, in tandem with increased EPS. Its current forward yield of 1.02% may seem tiny, yet in time, it could grow to become mighty. Its low payout ratio (19.31%) leaves ample room for dividend growth. The company has raised its payout by an average of 13.14% over the past five years.
This stock earns an “A” rating in my Portfolio Grader.
General Dynamics (GD)
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Like healthcare, defense is another sector that can hold up well during challenging economic conditions. General Dynamics (NYSE:GD) is a large, high-quality name in the space.
The company provides a wide range of hardware for the U.S. Military, from mortar munitions all the way down to nuclear-powered submarines.
Up by around 16.5% year-to-date, investors have already bought this defense stock as a defensive play. Geopolitical tensions have also played a big role in keeping GD stock in the green in 2022, while markets overall remain deeply in the red.
Even so, the ship hasn’t sailed when it comes to buying it. Alongside a sustainable valuation, General Dynamics also pays a 2.09% dividend. With 27 years of consecutive annual dividend growth, it’s firmly in the “dividend aristocrats” category. For both steady long-term price appreciation and yield, consider it a buy. Whether now, or on any weakness.
This stock earns a “B” rating in my Portfolio Grader.
Coca-Cola (KO)
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When you think of blue-chip large-cap stocks, Coca-Cola (NYSE:KO) is certainly a name that first springs to mind. The venerable beverage company has been in business since 1886, has paid dividends since going public 100 years ago and has grown its dividend (current forward yield of 2.7%) 59 years in a row.
If you are a conservative investor, looking for steady returns, largely through dividends, you can’t go wrong adding a name like KO stock to your portfolio. Having said that, you may have concerns about its current valuation. Shares today trade for around 26.5x estimated 2022 earnings.
But while its valuation could impact future upside, its current multiple can be viewed as reasonable. Given its high quality, a premium valuation is befitting. Even if you decide to skip it now, keep it on your watchlist. Another market pullback could enable you to pick it up on sale.
This stock earns a “B” rating in my Portfolio Grader.
Tesla (TSLA)
Source: Grisha Bruev / Shutterstock.com
After looking at several large-cap stocks best described as “blue chip” or defensive, let’s look at one of the top-rated large-cap stocks still in the high-growth fast lane.
At first, Tesla (NASDAQ:TSLA) may not seem like a great stock to own during market volatility. After all, hasn’t the bear market knocked down growth/tech plays like this electric vehicle (EV) maker?
Yes. TSLA stock has dropped around 25.8% since January. Yet while shares could keep struggling in the near term, that’s not to say the same will happen over the long term. Recession or not, the EV revolution isn’t going away.
In fact, recent changes to EV tax credits could boost demand from middle-class buyers. Add in the potential for global sales to re-accelerate, and its long-term growth prospects remain strong. As continued growth could help sustain (and grow) Tesla’s stock price, buying now (while growth remains out of favor) could be a profitable move.
This stock earns a “B” rating in my Portfolio Grader.
UnitedHealth Group (UNH)
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This list of top-rated large-cap stocks may seem healthcare-heavy, but again this underscores how this is a great sector for long-term investors to focus on. UnitedHealth Group (NYSE:UNH) is the largest health insurance company in the United States.
With its consistent revenue and earnings growth, it is no surprise UNH stock has been a winner. Whether in the recent past (up 181.5% since 2017), or on a longer timeframe (more than 9x gain over the past decade). With a market cap above $500 billion, it may take far more than a decade for shares to soar another 9x.
Still, as a leader in its industry, poised to continue growing at an above-average pace, investors buying today stand to be more than satisfied by future returns. Paying up for quality now (shares trade for 25.1x earnings) could prove worth it.
This stock earns an “A” rating in my Portfolio Grader.
ExxonMobil (XOM)
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With crude oil’s retreat back below $100 per barrel, the party may seem over for energy stocks like ExxonMobil (NYSE:XOM). Recently, shares in the integrated oil and gas firm have fallen back in line with oil’s slide.
Nevertheless, don’t view this as a sign that post-comeback, it’s middling returns from here for XOM stock. The U.S. Energy Information Administration (or EIA) still calls for crude oil to remain at or near current price levels (around $89 per barrel) through 2023.
Also, as I argued back in June, there are other factors in play that could move the needle for ExxonMobil shares. The company’s cost-cutting plans will give EPS a boost. Its aggressive repurchase of shares will also help to boost EPS, and in turn, its stock price. With a 3.74% forward dividend yield to boot, it’s still a great name to make a long-term position.
This stock earns an “A” rating in my Portfolio Grader.
On the date of publication, Louis Navellier had a long position in ABBV, GD, and UNH. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV AbbVie $140.34 ELV Elevance Health $507.00 GD General Dynamics $234.49 KO Coca-Cola $64.20 TSLA Tesla $869.74 UNH UnitedHealth Group $544.57 XOM ExxonMobil $94.01 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As a major pharmaceutical company, AbbVie (NYSE:ABBV) is a great recession-resistant stock to include in any portfolio. That said, I can see why there may be some reservations about buying ABBV stock today. Along with this, AbbVie pays out a nice dividend (3.9% forward yield), with its payout growing by double-digits annually over the past five years. | ABBV AbbVie $140.34 ELV Elevance Health $507.00 GD General Dynamics $234.49 KO Coca-Cola $64.20 TSLA Tesla $869.74 UNH UnitedHealth Group $544.57 XOM ExxonMobil $94.01 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As a major pharmaceutical company, AbbVie (NYSE:ABBV) is a great recession-resistant stock to include in any portfolio. That said, I can see why there may be some reservations about buying ABBV stock today. Along with this, AbbVie pays out a nice dividend (3.9% forward yield), with its payout growing by double-digits annually over the past five years. | ABBV AbbVie $140.34 ELV Elevance Health $507.00 GD General Dynamics $234.49 KO Coca-Cola $64.20 TSLA Tesla $869.74 UNH UnitedHealth Group $544.57 XOM ExxonMobil $94.01 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As a major pharmaceutical company, AbbVie (NYSE:ABBV) is a great recession-resistant stock to include in any portfolio. That said, I can see why there may be some reservations about buying ABBV stock today. Along with this, AbbVie pays out a nice dividend (3.9% forward yield), with its payout growing by double-digits annually over the past five years. | ABBV AbbVie $140.34 ELV Elevance Health $507.00 GD General Dynamics $234.49 KO Coca-Cola $64.20 TSLA Tesla $869.74 UNH UnitedHealth Group $544.57 XOM ExxonMobil $94.01 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As a major pharmaceutical company, AbbVie (NYSE:ABBV) is a great recession-resistant stock to include in any portfolio. That said, I can see why there may be some reservations about buying ABBV stock today. Along with this, AbbVie pays out a nice dividend (3.9% forward yield), with its payout growing by double-digits annually over the past five years. |
23169.0 | 2022-08-22 00:00:00 UTC | The 7 Best Bargain Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/the-7-best-bargain-stocks-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Given the unique circumstances associated with the Covid-19 pandemic, investors may want to take a step back from the crowd and consider the best bargain stocks to buy now. To be sure, several equity-based opportunities printed much red ink this year, presenting cheap prospects to consider. However, a difference exists between a company being cheap rather than facilitating a true discount.
For this list of best bargain stocks to buy now, I used Gurufocus to screen for fundamentally deflated businesses. At the same time, these companies present relevant risk-reward profiles. Either they feature compelling operations that will eventually regain traction and/or they bring to the table significant value. As well, these ideas cover various industries, hopefully providing something for everyone.
Finally, I ranked (based on my opinion) the best bargain stocks to buy now according to their reliability matrix. In other words, as you go down the list, the fundamental risks will likely increase. Still, you may accrue greater rewards.
So, without any more delay, below are the best bargain stocks to buy now.
Best Bargain Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
One of the more popular pharmaceutical companies, AbbVie (NYSE:ABBV) generated headlines prior to the Covid-19 pandemic with its acquisitiveness. Specifically, the company declared in 2019 that it would acquire Allergan for $63 billion. In turn, the transaction would assign control to AbbVie for the highly profitable wrinkle treatment Botox.
Why is AbbVie’s Allergan acquisition significant? Fundamentally, the grand work-from-home experiment caused people to relax their physical presentability. However, as mitigation protocols fade and social activities resume, emphasis on appearances accelerated.
Don’t just take my word for it. The American Society of Plastic Surgeons stated that: “During the pandemic, 11% of women surveyed indicated they are more interested in cosmetic plastic surgery or non-surgical procedures now than before COVID-19, and the figure is even higher among women who have already had surgery or a procedure – 24%, respectively.”
Better yet, ABBV is one of the best bargain stocks to buy thanks to its solid financial profile. Per Gurufocus, AbbVie commands excellent growth and profitability metrics relative to its underlying industry.
Toyota (TM)
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Let’s all repeat the mantra that seemingly everybody loves to repeat. Ready? One, two, three: electric vehicles are the future! And therefore, by logical deduction, EV firms should constitute most of your ideas for the best bargain stocks to buy now.
Here’s the issue, actually two issues. First, broader EV integration requires public infrastructure. Please keep in mind that about 63% of all housing units have garages or carports. That leaves quite a few people who don’t have such access.
Second, EVs represent crazy-expensive purchases. This year, the average EV transaction shot up to nearly $63,000. Folks, unless the future also involves consumers making a ton of money, EVs will endure an uphill battle.
But that segues to Toyota (NYSE:TM). An excellent hedge among the best bargain stocks to buy now, Toyota seeks to advance EV innovations like solid-state batteries. However, it’s also a combustion-car powerhouse, building personal vehicles for just about any budget.
Better yet, Toyota features solid metrics in financial stability, growth and profitability.
Best Bargain Stocks: BP (BP)
Source: Shutterstock
Here’s a piece of factual news that will undoubtedly pique curiosity. According to Bloomberg in Jan. 2022 (thus, before Russia’s invasion of Ukraine), the International Energy Agency (IEA) was trying to figure out where 200 million barrels of oil went. Essentially, the gap between key inventory reports suggests an “underreporting of demand or over-reporting production.”
A little more than a month after the report, Russian President Vladimir Putin inexplicably thought it was a good idea to invade a neighboring country. It goes to show that black swan events can, at any time, disrupt critical energy flows.
That’s a major reason why investors should consider BP (NYSE:BP). While the go-green ideological narrative doesn’t bode well for hydrocarbons, the reality is that we’re still dependent on them. Further, with indications suggesting that the crisis in eastern Europe will worsen before it improves, oil supplies remain threatened. Cynically, this dynamic boosts BP.
But why I really like BP is that it’s one of the best bargain stocks to buy now. The company features a forward price-earnings ratio of 4 times, that’s below the industry median of 7.3.
Medtronic (MDT)
Source: JHVEPhoto / Shutterstock.com
Moving onto the more speculative side of the best bargain stocks to buy now, Medtronic (NYSE:MDT) brings to the table several medical advancements. Arguably, though, the company recently generated much attention for its diabetes-related arm. For instance, Medtronic’s InPen system provides an intelligent solution to patients, providing the right insulin dose and removing guesswork variability.
While not attempting to sound callous, the medical device manufacturer also enjoys a large total addressable market. According to Grand View Research, the global diabetes devices market size may command a valuation of $28.84 billion by the end of this year. By 2030, the segment may see annual revenues of $54.16 billion.
As far as the best bargain stocks to buy now are concerned, MDT also fits this bill nicely. Specifically, the company features decent strengths in its balance sheet. As well, the company commands strong profitability metrics. One highlight is its net margin of 15.9%, much higher than the 1.19% industry median.
Finally, Medtronic features a forward PE of 16.8 times, below the industry median of 26 times. Gurufocus pegs MDT as modestly undervalued.
Best Bargain Stocks: Playa Hotels & Resorts (PLYA)
Source: Shutterstock
What made the Covid-19 crisis so difficult for everyone involved was the disruption of socialization. Forced to shelter in place, many people lost ties to their favorite activities and each other. Therefore, during the roughly two years of mitigation protocols, demand for vacations and experience-based services brewed.
I suppose the technical term is pent-up demand. A common term for this phenomenon is “revenge travel.” Whatever you want to call it, the concept may work out for Playa Hotels & Resorts (NASDAQ:PLYA).
If you have a strong conviction that revenge travel will continue, Playa Hotels offers a compelling opportunity. Featuring luxury oceanfront resorts in Mexico and the Caribbean, the company provides an excellent medium for rest and relaxation.
Moreover, Gurufocus considers Playa modestly undervalued, making it one of the best bargain stocks to buy now. The company features a forward PE of 11.8 times, well below the industry median of 19.57 times. Plus, Playa commands robust operating and net margins.
Still, investors will need confidence in the revenge travel phenomenon. However, it helps that Playa caters to a more affluent consumer base. As well, Mexico and the Caribbean are closer destinations to Americans than say Europe or Asia.
FleetCor Technologies (FLT)
Source: rafapress / Shutterstock.com
If you believe that a broader return to the office will materialize, FleetCor Technologies (NYSE:FLT) may be one of the best bargain stocks to buy now. The company provides fuel cards and workforce payment products and services. Specifically, it helps automate, secure, digitize, and control both back and front office payments.
This occurs via e-payables solutions, facilitating payments to suppliers (both domestic and abroad). As well, FleetCor specializes in payment cards for employee purchases on the go.
Now, one of the fundamental reasons for FleetCor’s slowdown in the market — it’s down about 9% over the trailing year — is the mass work-from-home experiment. As such, normal business travel routines suffered. Even now, the New York Times reports that business travel volumes haven’t rebounded to their former pace.
However, that could very well change. If it does, FLT could swing much higher from current levels. According to Gurufocus, FleetCor represents a significantly undervalued business. Notably, the company commands excellent long-term growth and profitability metrics. In addition, its forward PE is 15 times, far below the industry median of 26.3 times.
Best Bargain Stocks: Mitek Systems (MITK)
Source: Shutterstock
Another significantly undervalued company per Gurufocus is Mitek Systems (NASDAQ:MITK). The company combines the best of financial technology (fintech) solutions with access identity management and other security-based solutions. On paper, Mitek is a software company that specializes in digital identity verification and mobile capture using artificial intelligence algorithms.
Essentially, it allows people to deposit checks via their mobile phones and open bank accounts from mobile devices. While Mitek offers compelling innovations, the narrative depends on the normalization of society. Specifically, the company can enjoy the full breadth of demand realization once workers return to the office.
This scenario may be a highly probable reality. Apparently, word leaked that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) executives threatened workers to shape up or ship out. The tech giant might not be the only one with such sentiment, especially as recessionary pressures build.
Because the company operates in limbo due to the unusual dynamics of the new normal, MITK is undervalued. Specifically, its forward PE ratio of just under 15 times is below the industry median of 26.3 times. As well, the company features strong long-term growth metrics.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post The 7 Best Bargain 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. | Best Bargain Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com One of the more popular pharmaceutical companies, AbbVie (NYSE:ABBV) generated headlines prior to the Covid-19 pandemic with its acquisitiveness. In turn, the transaction would assign control to AbbVie for the highly profitable wrinkle treatment Botox. Why is AbbVie’s Allergan acquisition significant? | Best Bargain Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com One of the more popular pharmaceutical companies, AbbVie (NYSE:ABBV) generated headlines prior to the Covid-19 pandemic with its acquisitiveness. In turn, the transaction would assign control to AbbVie for the highly profitable wrinkle treatment Botox. Why is AbbVie’s Allergan acquisition significant? | Best Bargain Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com One of the more popular pharmaceutical companies, AbbVie (NYSE:ABBV) generated headlines prior to the Covid-19 pandemic with its acquisitiveness. In turn, the transaction would assign control to AbbVie for the highly profitable wrinkle treatment Botox. Why is AbbVie’s Allergan acquisition significant? | Best Bargain Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com One of the more popular pharmaceutical companies, AbbVie (NYSE:ABBV) generated headlines prior to the Covid-19 pandemic with its acquisitiveness. In turn, the transaction would assign control to AbbVie for the highly profitable wrinkle treatment Botox. Why is AbbVie’s Allergan acquisition significant? |
23170.0 | 2022-08-22 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 | nan | nan | It's been a terrible, horrible, no good, awful past seven months on Wall Street. Most companies are feeling the effects of macroeconomic headwinds such as inflation and supply chain issues, and few are managing to perform well on the market.
Thankfully, there are some companies in the black for the year. Two companies in this group are AbbVie (NYSE: ABBV) and Jazz Pharmaceuticals (NASDAQ: JAZZ). Both of these healthcare stocks also present attractive prospects. Let's consider why they are worth buying today.
ABBV data by YCharts
1. AbbVie
AbbVie is a stable, blue-chip company that can deliver consistent revenue, profits, and growing dividends. Let's unpack that a little more. First, like its peers in the pharmaceutical industry, AbbVie sells products that consumers can hardly do without. The last thing the average patient wants to do is economize on life-saving medicines. That's why AbbVie can record decent revenue and profits even amid challenging economic conditions.
In the second quarter, AbbVie's revenue increased by 4.5% year-over-year (YOY) to $14.6 billion. The company's adjusted earnings per share (EPS) jumped by 11.2% YoY to $3.37. AbbVie's portfolio includes many products that are growing at a good clip. Immunology drugs Skyrizi and Rinvoq are among the most promising. Skyrizi's second-quarter revenue increased by 85.9% YOY to $1.3 billion.
Rinvoq's revenue came in at $592 million, 56.3% higher than the prior-year quarter. Rinvoq and Skyrizi are well on their way to replacing AbbVie's crown jewel, immunosuppressant Humira, which may start facing generic competition in the U.S. sometime next year.
In the meantime, Humira posted sales of $5.4 billion in the quarter -- 5.8% higher than the year-ago period -- despite the continued pressure of generic competition in Europe. Cancer drug Venclexta, Botox Cosmetics, and Botox Therapeutics are some of AbbVie's other franchises that are performing decently. And, of course, AbbVie boasts dozens of programs in development that should help it maintain a solid lineup and deal with patent cliffs as needed.
What about the dividend? AbbVie spun off from its former parent company, Abbott Laboratories, in 2013. Factoring in the time it spent under the name of Abbott, AbbVie is a Dividend King, having raised its payouts for 50 consecutive years. AbbVie currently offers an above-average yield of 3.96% and a modest cash payout ratio of 43.5%.
In short, AbbVie can offer both growth and income. That partly explains why it has outperformed the market this year, and it's also why it is worth stashing in your portfolio for years.
2. Jazz Pharmaceuticals
Jazz Pharmaceuticals has successfully expanded and diversified its lineup of drugs in the past couple of years, which has helped it improve its prospects. The company's portfolio now features cannabidiol-based rare epilepsy treatment Epidiolex, which it inherited through an acquisition. Jazz has also scored critical regulatory wins relatively recently.
These include daytime sleepiness associated with idiopathic hypersomnia and narcolepsy treatment Xywav, which first earned the green light in mid-2020. That may not seem that recent, but Xywav could continue to grow its sales for a while without the danger of generic competition. Jazz's revenue jumped by 24% YOY in the second quarter to $932.9 million. Adjusted EPS increased by 10.3% YOY to $4.30.
Xyrem, a treatment for daytime sleepiness in narcolepsy patients and Jazz's longtime best-selling drug, still generates more sales than any other. But other products are making headway.
Xyrem's revenue for the second quarter came in at $269.4 million, 19% lower than the year-ago period. But that was because patients are taking Xywav instead. Sales of Xywav soared by 89% YOY during the quarter, clocking in at $235 million. Epidiolex added $175.3 million in revenue, representing a YOY increase of 60%. Cancer drugs Zepzelca and Rylaze, also part of Jazz's new product portfolio, contributed meaningfully as well.
Jazz Pharmaceuticals can continue growing its revenue and earnings thanks to its expanded lineup of drugs. The company boasts more than a dozen pipeline programs, and will likely add indications to some of its existing products and earn approvals for brand new ones. The biotech is in a solid position to continue improving its financial results and delivering solid returns to its shareholders.
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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. | Rinvoq and Skyrizi are well on their way to replacing AbbVie's crown jewel, immunosuppressant Humira, which may start facing generic competition in the U.S. sometime next year. And, of course, AbbVie boasts dozens of programs in development that should help it maintain a solid lineup and deal with patent cliffs as needed. Two companies in this group are AbbVie (NYSE: ABBV) and Jazz Pharmaceuticals (NASDAQ: JAZZ). | Two companies in this group are AbbVie (NYSE: ABBV) and Jazz Pharmaceuticals (NASDAQ: JAZZ). ABBV data by YCharts 1. AbbVie AbbVie is a stable, blue-chip company that can deliver consistent revenue, profits, and growing dividends. | Two companies in this group are AbbVie (NYSE: ABBV) and Jazz Pharmaceuticals (NASDAQ: JAZZ). AbbVie AbbVie is a stable, blue-chip company that can deliver consistent revenue, profits, and growing dividends. In the second quarter, AbbVie's revenue increased by 4.5% year-over-year (YOY) to $14.6 billion. | Two companies in this group are AbbVie (NYSE: ABBV) and Jazz Pharmaceuticals (NASDAQ: JAZZ). AbbVie AbbVie is a stable, blue-chip company that can deliver consistent revenue, profits, and growing dividends. AbbVie's portfolio includes many products that are growing at a good clip. |
23171.0 | 2022-08-22 00:00:00 UTC | FOCUS-Hiring and data: how the U.S. will set up new Medicare drug price talks | ABBV | https://www.nasdaq.com/articles/focus-hiring-and-data%3A-how-the-u.s.-will-set-up-new-medicare-drug-price-talks | nan | nan | By Ahmed Aboulenein
WASHINGTON, Aug 22 (Reuters) - The U.S. government will soon begin hiring experts and collecting the data needed to launch direct negotiations over prescription drug prices for older and disabled people, a top Biden administration official told Reuters.
President Joe Biden last week signed into law the Inflation Reduction Act, introducing new policies to tackle climate change, taxes and the rising cost of medicines.
The Act will for the first time allow the federal Medicare health plan for people age 65 or older and the disabled to negotiate prices on up to 20 drugs a year. It also sets limits on drug price increases for Medicare and caps out-of-pocket costs for those enrolled in the program.
The move represents a rare legislative defeat for the powerful pharmaceutical industry and sets a precedent for curbing drug prices in the world's most lucrative market for medicines.
"We definitely are looking to increase our expertise," Chiquita Brooks-LaSure, administrator of the Centers for Medicare and Medicaid Services, said in an interview. "This has been a long time coming, for the federal government and Medicare to have this authority."
Brooks-LaSure said she plans to create a new team tasked with negotiating drug prices within the Center for Medicare. CMS says it expects to start hiring for over 100 positions beginning this fall.
"We are really looking for clinical expertise ... as well as people who have experience negotiating," said Brooks-LaSure, whose agency has regulatory oversight of nearly all healthcare providers in the United States and control of federal health programs covering 170 million people, including 64 million enrolled in Medicare.
"One of the first things is for us to choose which drugs to negotiate. We have 10, and that is something that we'll be announcing next fall, so around a year from now," she said.
CMS will need to collect data from pharmaceutical manufacturers, health insurers and pharmacy benefit managers (PBMs) to identify those first 10 drugs that will be subject to negotiations, a list that will rise to 20 by 2029, she said.
DATA COLLECTION
The government will choose from 50 "high spend" drugs based on Medicare utilization and cost that have only one supplier. Healthcare analysts have said that list could include Bristol-Myers Squibb Co's BMY.N top-selling cancer drug Revlimid, AbbVie Inc's ABBV.N rheumatoid arthritis drug Humira, and blood thinner pill Xarelto which is sold by Johnson & Johnson JNJ.N in the United States.
But full drug price information is often obscured in the U.S. market. Drugmakers, who fought tooth and nail to prevent the new law from passing, say they often provide substantial rebates and discounts to health plans that are not passed on to consumers. Health plans argue that drugmakers are responsible for setting, and raising, the price of their medicines.
The pharmaceutical industry's powerful trade association, Pharmaceutical Research and Manufacturers of America (PhRMA), declined to comment on how its members might contribute information to CMS or if any of them had been approached.
Officials representing the largest three PBMs - who help negotiate drug prices for health plans – did not respond to requests for comment.
AHIP, the health insurance industry's largest trade group, and its members "stand ready to assist" the government "on this or other implementation issues for new policies," spokesperson David Allen said.
MOVING FAST
Health policy experts say CMS needs to hire from the outside because it does not currently have the capacity to negotiate drug prices. To have an impact, the agency will need to move quickly, because the law requires it to start negotiating in 2023, with the new prices taking effect in 2026.
"The idea of negotiating drug prices has been talked about for quite a while, but this legislation came together very fast. So the federal government is going to have to move quickly to put in place an infrastructure here," said Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation.
Brooks-LaSure said she would cast a wide net and is looking to hire experienced public and private-sector negotiators as well as drug-pricing experts.
"We are absolutely looking to hire from within our friends in the administration as well people outside, and folks will start to see postings on our CMS website," she said. "So whether it's the VA, whether it's from the outside world, from the commercial market, welcome."
While the Department of Veteran Affairs (VA), which covers healthcare for more than 9 million people, negotiates drug prices, it does so on a much smaller scale than Medicare would be expected to.
Brooks-LaSure acknowledged the difference and said, "there will be some new uniquely CMS approaches" to negotiations.
CMS should also look to groups like the Institute for Clinical and Economic Review (ICER), an influential Boston-based nonprofit that researches drug prices, said Andy Slavitt, a former CMS chief under President Barack Obama.
"These are challenging negotiations where people are forced to eat the dog food they don't want to eat," Slavitt said.
COLUMN-Landmark U.S. healthcare bill sets stage for lower Medicare prescription drug costs
(Reporting by Ahmed Aboulenein in Washington Editing by Michele Gershberg and Matthew Lewis)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Healthcare analysts have said that list could include Bristol-Myers Squibb Co's BMY.N top-selling cancer drug Revlimid, AbbVie Inc's ABBV.N rheumatoid arthritis drug Humira, and blood thinner pill Xarelto which is sold by Johnson & Johnson JNJ.N in the United States. President Joe Biden last week signed into law the Inflation Reduction Act, introducing new policies to tackle climate change, taxes and the rising cost of medicines. CMS will need to collect data from pharmaceutical manufacturers, health insurers and pharmacy benefit managers (PBMs) to identify those first 10 drugs that will be subject to negotiations, a list that will rise to 20 by 2029, she said. | Healthcare analysts have said that list could include Bristol-Myers Squibb Co's BMY.N top-selling cancer drug Revlimid, AbbVie Inc's ABBV.N rheumatoid arthritis drug Humira, and blood thinner pill Xarelto which is sold by Johnson & Johnson JNJ.N in the United States. By Ahmed Aboulenein WASHINGTON, Aug 22 (Reuters) - The U.S. government will soon begin hiring experts and collecting the data needed to launch direct negotiations over prescription drug prices for older and disabled people, a top Biden administration official told Reuters. The Act will for the first time allow the federal Medicare health plan for people age 65 or older and the disabled to negotiate prices on up to 20 drugs a year. | Healthcare analysts have said that list could include Bristol-Myers Squibb Co's BMY.N top-selling cancer drug Revlimid, AbbVie Inc's ABBV.N rheumatoid arthritis drug Humira, and blood thinner pill Xarelto which is sold by Johnson & Johnson JNJ.N in the United States. By Ahmed Aboulenein WASHINGTON, Aug 22 (Reuters) - The U.S. government will soon begin hiring experts and collecting the data needed to launch direct negotiations over prescription drug prices for older and disabled people, a top Biden administration official told Reuters. The Act will for the first time allow the federal Medicare health plan for people age 65 or older and the disabled to negotiate prices on up to 20 drugs a year. | Healthcare analysts have said that list could include Bristol-Myers Squibb Co's BMY.N top-selling cancer drug Revlimid, AbbVie Inc's ABBV.N rheumatoid arthritis drug Humira, and blood thinner pill Xarelto which is sold by Johnson & Johnson JNJ.N in the United States. By Ahmed Aboulenein WASHINGTON, Aug 22 (Reuters) - The U.S. government will soon begin hiring experts and collecting the data needed to launch direct negotiations over prescription drug prices for older and disabled people, a top Biden administration official told Reuters. The move represents a rare legislative defeat for the powerful pharmaceutical industry and sets a precedent for curbing drug prices in the world's most lucrative market for medicines. |
23172.0 | 2022-08-22 00:00:00 UTC | Five-Star Financial Blogger Zvi Bar is Bullish on These 2 Stocks | ABBV | https://www.nasdaq.com/articles/five-star-financial-blogger-zvi-bar-is-bullish-on-these-2-stocks | nan | nan | In our “Expert Spotlight” piece today, the TipRanks Expert Center brings top picks from notable financial blogger, Zvi Bar. Zvi Bar provides advisory services to companies, trusts, and individuals, including consulting expert services regarding retirement and estate planning. Moreover, he is a practicing lawyer in the state of New York specializing in cash management, Bitcoin, and Trust Protector services.
Amid uncertain times for the capital markets, simplicity can be an effective tool to separate the wheat from the chaff. Financial bloggers are adept at this as they convey complex market movements in simple terms for investors. Zvi Bar is one such blogger who has been doing this with much success, as can be gauged from his track record.
Bar’s Standing Among TipRanks Experts
According to the TipRanks Star Ranking System, Zvi Bar ranks #25 out of 13,619 bloggers in the TipRanks universe and #99 among 21,639 overall experts, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers, and individual investors.
Bar’s success rate in picking stocks stands at 72%, whereas his average return per rating is an impressive 16.50%.
The analyst’s average returns relative to the S&P 500 and the benchmark sector stand at 4.50% and 3.90%, respectively.
Among Bar’s picks, 98.23% are Buys and 1.77% have a Sell rating.
Notably, according to TipRanks, Bar’s most profitable pick has been Riot Blockchain (RIOT) between November 9, 2020, to November 9, 2021, generating an impressive return of 490.2%.
Now, let’s look at a couple of his top picks.
Bar Remains Optimistic About Disney
Founded in 1923, the media behemoth Disney has been a bellwether in the entertainment industry for decades. The company’s interests lie in fields ranging from animation to streaming platforms, from movie productions to theme parks. Presently, the company commands a market cap of $218.83 billion.
The company posted strong numbers in its latest results for the third quarter, as both revenue and earnings surpassed Street expectations. While revenues of $21.5 billion witnessed year-over-year growth of 26%, earnings per share (EPS) for the quarter came in at $1.09, growing 36.3% from the previous year.
Notably, Bar remains bullish about the stock. The blogger opines that the company’s revival in its Parks & Experiences business along with its continued rise in net subscribers gives it a strong footing to grow in the future.
Meanwhile, the blogger enjoys a success rate of 67% and an average profit of 24.97% on the stock.
Overall, 87% of bloggers on TipRanks are bullish on Disney, compared to the sector average of 69%.
AbbVie Gets Endorsement from Bar
Originating as a spin-off of Abbott Laboratories, AbbVie is a biopharmaceutical company established in 2013. The company is focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health, and gastroenterology. The company’s market cap stands at a mammoth $250.8 billion.
The company posted strong results for the second quarter, with both revenue and earnings rising from the prior year. Net revenues of $14.58 billion represent year-over-year growth of 4.5%. EPS for the quarter stood at $3.37, up 11.2% from the previous year.
Notably, Bar retains his confidence in the stock. He reckons that AbbVie’s high dividend yield of 3.9% and regular share repurchases make it an attractive choice for investors. Further, the company’s robust domestic cash flows and increased market strength of its Humira drug are expected to support its share price.
Meanwhile, the blogger enjoys a success rate of 75% and an average profit of 20.67% on the stock.
Overall, 91% of bloggers on TipRanks are bullish on AbbVie, compared to the sector average of 69%.
Final Thoughts
Zvi Bar’s top picks cover a media conglomerate and a pharmaceutical major, two industries expected to have an impressive growth trajectory going forward. Along with this, Bar’s stellar track record in picking stocks that have risen considerably provides investors with an option to ponder over his picks.
Read full 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 Gets Endorsement from Bar Originating as a spin-off of Abbott Laboratories, AbbVie is a biopharmaceutical company established in 2013. He reckons that AbbVie’s high dividend yield of 3.9% and regular share repurchases make it an attractive choice for investors. Overall, 91% of bloggers on TipRanks are bullish on AbbVie, compared to the sector average of 69%. | AbbVie Gets Endorsement from Bar Originating as a spin-off of Abbott Laboratories, AbbVie is a biopharmaceutical company established in 2013. He reckons that AbbVie’s high dividend yield of 3.9% and regular share repurchases make it an attractive choice for investors. Overall, 91% of bloggers on TipRanks are bullish on AbbVie, compared to the sector average of 69%. | AbbVie Gets Endorsement from Bar Originating as a spin-off of Abbott Laboratories, AbbVie is a biopharmaceutical company established in 2013. He reckons that AbbVie’s high dividend yield of 3.9% and regular share repurchases make it an attractive choice for investors. Overall, 91% of bloggers on TipRanks are bullish on AbbVie, compared to the sector average of 69%. | AbbVie Gets Endorsement from Bar Originating as a spin-off of Abbott Laboratories, AbbVie is a biopharmaceutical company established in 2013. He reckons that AbbVie’s high dividend yield of 3.9% and regular share repurchases make it an attractive choice for investors. Overall, 91% of bloggers on TipRanks are bullish on AbbVie, compared to the sector average of 69%. |
23173.0 | 2022-08-21 00:00:00 UTC | Which Growth Stock Is a Better Buy Right Now -- AbbVie or InMode? | ABBV | https://www.nasdaq.com/articles/which-growth-stock-is-a-better-buy-right-now-abbvie-or-inmode | nan | nan | The popularity of cosmetic procedures is unquestionably on the rise. Yet two major players in the space have seen their stocks struggle this year.
Major pharmaceutical AbbVie (NYSE: ABBV) is plagued by concerns about the impending patent cliff on its top-selling drug. At the same time, healthcare equipment provider InMode (NASDAQ: INMD) has been punished by Wall Street's current skepticism about growth stocks. This could be a good time to consider one of these highly profitable companies as a long-term addition to your portfolio.
The case for AbbVie
AbbVie keeps a wary eye on the calendar, with immunology megablockbuster Humira facing fierce biosimilar competition starting next year. Before COVID-19 therapies came along, Humira was the industry's top drug by sales, generating $21 billion in 2021. Despite a thicket of patents extending protection out to early 2034, the company has inked at least eight settlements allowing biosimilars. Sales are likely to fall off quickly once cheaper options enter the market in January.
The question is whether AbbVie can maintain its revenue when Humira loses patent protection. The company has managed to put together a strong portfolio of products across neuroscience, immunology, and oncology, shrinking Humira's share of earnings from 61% in 2018 to 37% in the second quarter of 2022. Management hopes that Skyrizi and Rinvoq will capture over $15 billion of combined sales by 2025, enough to replace Humira's sales.
AbbVie's aesthetics segment makes up a smaller portion of the portfolio, bringing in 9% of the company's $14.6 billion total second-quarter revenue. This segment is a recent addition to AbbVie after its 2020 acquisition of Allergan, which included facial injectables Botox and Juvederm. Despite a lackluster performance in the second quarter, which management attributed to poor international Juvederm sales caused by lockdowns in China and suspended sales to Russia, theglobal marketfor Botox is expected to grow by around 13% annually through 2028.
Botox is the leading minimally invasive cosmetic therapy in the U.S., and the number of annual injections has skyrocketed 700% in the past twenty years. While Botox is still primarily used by women over 40, interest among men and younger women is increasing. The "baby Botox" approach, injecting a lower number of units to soften facial expression rather than fully freezing movement, is increasingly being adopted as a preventative measure aimed at slowing down the aging process.
From AbbVie's perspective, Botox is likely to remain a long-term cash cow. Allergan opted to protect the formulation by keeping it a trade secret, rather than patenting its composition. Although AbbVie faces competition from other companies, Botox continues to capture the lion's share of the market with about 70% share. Only Jeuveau, a competing neurotoxin from Evolus (NASDAQ: EOLS), offers the same gold-standard molecular size, and no competitors so far have been able to undercut Botox on price. With expanding access, more accepting consumer attitudes, and repeat injections needed every three to four months, the treatment is building an ever-growing market of avid users.
The case for InMode
On the other end of the healthcare industry spectrum, InMode is a high-growth company focused exclusively on providing medical equipment for minimally invasive cosmetic procedures. The company's proprietary radiofrequency technology encompasses outpatient procedures for skin rejuvenation, contouring, wrinkle reduction, liposuction and skin tightening, hair removal, and muscle toning.
Energy-based cosmetic treatments are becoming increasingly popular, with theglobal marketexpected to grow by 10% annually through 2028. Growth is even higher within InMode's U.S. anchor market, where the number of skin-tightening and fat-reduction procedures using energy-based technology more than doubled from 2020 to 2021.
With a market cap of around $2.7 billion and historical five-year revenue growing 70% per year, InMode is still very much within its early high-growth stage. Analysts expect revenue to grow by 15% to 20% annually in the next two years.
Despite a challenging environment of inflation and supply chain disruptions, InMode maintained an extraordinarily high margin above 80% and increased second-quarter sales by 30% year over year. The company increased its installed base by 20% over the first half of the year to around 14,000 units. InMode is also expanding its footprint internationally, and now about half of its total installed base is located outside of the U.S.
Which is the best choice for you?
With price-to-earnings ratios of 20 for AbbVie and 17 for InMode, both stocks are now trading at valuations near the lower end of the healthcare industry. Both companies are very profitable and should see favorable macro tailwinds from an aging population and booming interest in noninvasive aesthetic procedures.
AbbVie is a Dividend Aristocrat now offering a 4% yield. The company's heavy reliance on a single drug creates shorter-term risk, but AbbVie has been diversifying its pharmaceutical and aesthetic offerings to shore up its long-term outlook. Still, as a mature company, it's unlikely to achieve the same type of growth trajectory as smaller InMode.
InMode is better for investors who can stomach some risk, while AbbVie is better for those seeking a more recession-proof option that generates some income.
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Natalie Forbes has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Evolus and InMode. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's heavy reliance on a single drug creates shorter-term risk, but AbbVie has been diversifying its pharmaceutical and aesthetic offerings to shore up its long-term outlook. Major pharmaceutical AbbVie (NYSE: ABBV) is plagued by concerns about the impending patent cliff on its top-selling drug. The case for AbbVie AbbVie keeps a wary eye on the calendar, with immunology megablockbuster Humira facing fierce biosimilar competition starting next year. | AbbVie's aesthetics segment makes up a smaller portion of the portfolio, bringing in 9% of the company's $14.6 billion total second-quarter revenue. Major pharmaceutical AbbVie (NYSE: ABBV) is plagued by concerns about the impending patent cliff on its top-selling drug. The case for AbbVie AbbVie keeps a wary eye on the calendar, with immunology megablockbuster Humira facing fierce biosimilar competition starting next year. | The case for AbbVie AbbVie keeps a wary eye on the calendar, with immunology megablockbuster Humira facing fierce biosimilar competition starting next year. Although AbbVie faces competition from other companies, Botox continues to capture the lion's share of the market with about 70% share. Major pharmaceutical AbbVie (NYSE: ABBV) is plagued by concerns about the impending patent cliff on its top-selling drug. | Major pharmaceutical AbbVie (NYSE: ABBV) is plagued by concerns about the impending patent cliff on its top-selling drug. The case for AbbVie AbbVie keeps a wary eye on the calendar, with immunology megablockbuster Humira facing fierce biosimilar competition starting next year. The question is whether AbbVie can maintain its revenue when Humira loses patent protection. |
23174.0 | 2022-08-20 00:00:00 UTC | Bolster Your Social Security Benefits With These 2 Passive Income Stocks | ABBV | https://www.nasdaq.com/articles/bolster-your-social-security-benefits-with-these-2-passive-income-stocks | nan | nan | When you're investing to boost your Social Security income in retirement, it makes the most sense to invest in companies that are capable of performing consistently and paying out for years and years, so that you don't need to worry about managing your positions. In this vein, fast growth is less important than being able to keep paying out dividends regardless of how good or bad the economy is doing.
But you'll probably want to pick a few businesses that pay a large enough dividend to make an appreciable difference to your life given the amount of money that you can invest, so low-yield stocks might not be a great fit. Let's look at a pair of passive income stocks that have the stability and decent yields you'll need to bolster your retirement benefits without putting too much at risk.
1. Viatris
Viatris (NASDAQ: VTRS) makes a cornucopia of generic medicines like Zoloft, Xanax, Lipitor, and Viagra. Because people need their medications for many years on end, it generates relatively stable revenue over time, and in 2021 it brought in more than $17.8 billion in revenue.
Plus, it's constantly working to commercialize generic versions of drugs that are newly off-patent, and by 2026 it'll likely have around nine new products in play. This should ensure that its top line keeps growing through the end of the decade and beyond -- and it'll also pave the way for its dividend to grow.
At the moment, its forward dividend yield of 4.3% is quite attractive, and its payment is likely to keep rising alongside its cash flow. Investors should also expect its share repurchasing program to continue, driving up their returns in the process. But it's important to recognize that Viatris is still a company that's finding its footing in the world.
As it's originally a spinoff of Pfizer, the company is still realizing cost synergies and reducing redundancies from the separation, which could make for $1 billion in savings by 2023. Aside from that, the current macroeconomic situation isn't doing Viatris any favors, especially in emerging markets, where its quarterly net sales dropped by 10% year over year in Q2.
Nonetheless, its recent growing pains and economic struggles are unlikely to stick around forever, and both contribute to its high dividend yield at the moment. So it's attractive time to buy for the purpose of its passive income potential.
2. AbbVie
AbbVie (NYSE: ABBV) develops new medicines for applications in immunology, neurology, cancer, and aesthetics, and it's also a dividend stock par excellence. Thanks to sales of its drugs, it brought in nearly $56.2 billion in revenue last year, and from 2013 to 2021, its diluted and adjusted earnings per share (EPS) rose at a compound annual growth rate of 19%, which is quite good.
Next year, the company plans to commercialize eight of its medicines while advancing many more through clinical trials and submitting a handful of data packages to regulators for consideration. And all of the above is more or less AbbVie's long-term norm, so it's a fairly stable business despite the ongoing need to develop new drugs and go through the expensive clinical trial process.
At the moment, its forward dividend yield is near 4%. Dividend growth is a priority for management, and its payout has risen by 120% in the past five years thanks to annual hikes. What's more, its yield may soon rise further, depending on what happens in 2023, when its arthritis medicine Humira will lose its patent protection.
Given that Humira was responsible for more than $5.3 billion in Q2 alone, losing some of its contribution to competition from generics is going to hurt AbbVie's share price. That'll be (temporarily) painful for shareholders, but it'll also present an opportunity to buy shares at a higher yield and lower price than would be available otherwise.
Management expects the company to return to growth thanks to newly commercialized medicines coming online by 2025 -- and people who bought shares for the passive income potential in 2022 and 2023 will be the biggest beneficiaries when it does. Though there is a risk that revenue growth takes longer to return than what management hopes, so long as AbbVie keeps making new medicines -- and it will -- it'll eventually recover.
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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) develops new medicines for applications in immunology, neurology, cancer, and aesthetics, and it's also a dividend stock par excellence. And all of the above is more or less AbbVie's long-term norm, so it's a fairly stable business despite the ongoing need to develop new drugs and go through the expensive clinical trial process. Given that Humira was responsible for more than $5.3 billion in Q2 alone, losing some of its contribution to competition from generics is going to hurt AbbVie's share price. | AbbVie AbbVie (NYSE: ABBV) develops new medicines for applications in immunology, neurology, cancer, and aesthetics, and it's also a dividend stock par excellence. And all of the above is more or less AbbVie's long-term norm, so it's a fairly stable business despite the ongoing need to develop new drugs and go through the expensive clinical trial process. Given that Humira was responsible for more than $5.3 billion in Q2 alone, losing some of its contribution to competition from generics is going to hurt AbbVie's share price. | AbbVie AbbVie (NYSE: ABBV) develops new medicines for applications in immunology, neurology, cancer, and aesthetics, and it's also a dividend stock par excellence. And all of the above is more or less AbbVie's long-term norm, so it's a fairly stable business despite the ongoing need to develop new drugs and go through the expensive clinical trial process. Given that Humira was responsible for more than $5.3 billion in Q2 alone, losing some of its contribution to competition from generics is going to hurt AbbVie's share price. | AbbVie AbbVie (NYSE: ABBV) develops new medicines for applications in immunology, neurology, cancer, and aesthetics, and it's also a dividend stock par excellence. And all of the above is more or less AbbVie's long-term norm, so it's a fairly stable business despite the ongoing need to develop new drugs and go through the expensive clinical trial process. Given that Humira was responsible for more than $5.3 billion in Q2 alone, losing some of its contribution to competition from generics is going to hurt AbbVie's share price. |
23175.0 | 2022-08-19 00:00:00 UTC | Friday's ETF with Unusual Volume: DVOL | ABBV | https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-dvol | nan | nan | The First Trust Dorsey Wright Momentum & Low Volatility ETF is seeing unusually high volume in afternoon trading Friday, with over 197,000 shares traded versus three month average volume of about 26,000. Shares of DVOL were off about 0.2% on the day.
Components of that ETF with the highest volume on Friday were Procter & Gamble, trading up about 0.5% with over 2.8 million shares changing hands so far this session, and Abbvie, up about 1.4% on volume of over 2.0 million shares. Proshares Ultra Semiconductors is lagging other components of the First Trust Dorsey Wright Momentum & Low Volatility ETF Friday, trading lower by about 5.6%.
VIDEO: Friday's ETF with Unusual Volume: DVOL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF with the highest volume on Friday were Procter & Gamble, trading up about 0.5% with over 2.8 million shares changing hands so far this session, and Abbvie, up about 1.4% on volume of over 2.0 million shares. The First Trust Dorsey Wright Momentum & Low Volatility ETF is seeing unusually high volume in afternoon trading Friday, with over 197,000 shares traded versus three month average volume of about 26,000. Proshares Ultra Semiconductors is lagging other components of the First Trust Dorsey Wright Momentum & Low Volatility ETF Friday, trading lower by about 5.6%. | Components of that ETF with the highest volume on Friday were Procter & Gamble, trading up about 0.5% with over 2.8 million shares changing hands so far this session, and Abbvie, up about 1.4% on volume of over 2.0 million shares. The First Trust Dorsey Wright Momentum & Low Volatility ETF is seeing unusually high volume in afternoon trading Friday, with over 197,000 shares traded versus three month average volume of about 26,000. Proshares Ultra Semiconductors is lagging other components of the First Trust Dorsey Wright Momentum & Low Volatility ETF Friday, trading lower by about 5.6%. | Components of that ETF with the highest volume on Friday were Procter & Gamble, trading up about 0.5% with over 2.8 million shares changing hands so far this session, and Abbvie, up about 1.4% on volume of over 2.0 million shares. The First Trust Dorsey Wright Momentum & Low Volatility ETF is seeing unusually high volume in afternoon trading Friday, with over 197,000 shares traded versus three month average volume of about 26,000. VIDEO: Friday's ETF with Unusual Volume: DVOL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF with the highest volume on Friday were Procter & Gamble, trading up about 0.5% with over 2.8 million shares changing hands so far this session, and Abbvie, up about 1.4% on volume of over 2.0 million shares. The First Trust Dorsey Wright Momentum & Low Volatility ETF is seeing unusually high volume in afternoon trading Friday, with over 197,000 shares traded versus three month average volume of about 26,000. Shares of DVOL were off about 0.2% on the day. |
23176.0 | 2022-08-19 00:00:00 UTC | Curis (CRIS) Lymphoma Study's Clinical Hold Lifted, Shares Gain | ABBV | https://www.nasdaq.com/articles/curis-cris-lymphoma-studys-clinical-hold-lifted-shares-gain | nan | nan | Curis CRIS shares were up 20% during market hours on Aug 18, after the company announced that the FDA has lifted the partial clinical hold on phase I/II TakeAim lymphoma study evaluating emavusertib (CA-4948) in patients with B-cell malignancies.
The open-label, dose-escalating phase I/II study is evaluating emavusertib, an orally available IRAK4 kinase inhibitor, for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ / AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib)in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL).
With the lifting of the clinical hold, Curis is working with clinical sites to resume enrollment of new patients in this study in the third quarter of 2022. Curis expects to release clinical data from the study in 2023.
AbbVie markets Imbruvica in partnership with J&J. Imbruvica is currently approved for treating various hematologic cancers.
The FDA Division of Hematologic Malignancies 2 (DHM2) placed a partial clinical hold on the TakeAim Lymphoma study on Apr 11, 2022. As a result, enrollment of new patients was also stopped in the study.
With the imposition of the partial clinical hold, the FDA had requested additional safety, efficacy and other data on emavusertib, including data related to rhabdomyolysis and the likely recommended phase II dose for emavusertib.
After reviewing the comprehensive data package submitted by Curis on the emavusertib lymphoma study, the FDA’s DHM2 has now lifted the partial hold, which resulted in a surge in the stock’s price.
The lifting of the partial clinical hold follows an agreement of the company with the FDA regarding the former’s strategy for the identification and management of rhabdomyolysis. Per FDA instructions, Curis will also have to enroll at least nine additional patients in the lymphoma study of emavusertib at a 200mg dose level, in combination with Imbruvica (ibrutinib).
Additionally, Curis is also discussing optimal dosage and the development path of emavusertib in the TakeAim Lymphoma study with DHM2.
Curis stock is down 73.6% in the year-to-date period compared to the industry’s decline of 19.5%.
Image Source: Zacks Investment Research
Emavusertib was also being evaluated in a separate open label, single-arm dose escalating and expansion phase I/II TakeAim Leukemia study for the treatment of acute myeloid leukemia (AML), and high-risk myelodysplastic syndromes (MDS).
The study was also put on hold by the FDA Division of Hematologic Malignancies 1 (DHM1) on Apr 4, 2022, following the death of a patient with R/R AML.
Investors must note that though FDA has lifted the partial hold on the TakeAim Lymphoma study, the partial hold on TakeAim Leukemia Study still continues. Concurrently, patient enrollment in the TakeAim leukemia study is also on hold.
Curis currently has no marketed drugs in its portfolio. The development of emavusertib, along with other pipeline candidates, which include CI-8993 (for the treatment of R/R solid tumors), Fimepinostat (for diffuse large B-cell lymphoma), CA-170 (for mesothelioma) and CA-327 (a pre-IND oncology drug candidate) remains a key focus for the company.
Curis, Inc. Price
Curis, Inc. price | Curis, Inc. Quote
Zacks Rank and a Key Pick
Currently, Curis holds a Zacks Rank #3 (Hold).
A better stock in the same sector is Immunovant IMVT, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Immunovant’s loss per share estimates for 2022 have narrowed from $1.66 to $1.64 in the past 30 days. The same for 2023 has narrowed from $1.94 to $1.75 in the same time frame.
Earnings of Immunovant missed estimates in three of the trailing four quarters and beat the same on the remaining one occasion. The average negative earnings surprise for IMVT is 8.97%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The open-label, dose-escalating phase I/II study is evaluating emavusertib, an orally available IRAK4 kinase inhibitor, for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ / AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib)in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie Inc. (ABBV): Free Stock Analysis Report | The open-label, dose-escalating phase I/II study is evaluating emavusertib, an orally available IRAK4 kinase inhibitor, for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ / AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib)in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie Inc. (ABBV): Free Stock Analysis Report | The open-label, dose-escalating phase I/II study is evaluating emavusertib, an orally available IRAK4 kinase inhibitor, for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ / AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib)in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie Inc. (ABBV): Free Stock Analysis Report | The open-label, dose-escalating phase I/II study is evaluating emavusertib, an orally available IRAK4 kinase inhibitor, for treating patients with B-cell malignancies, both as a monotherapy and in combination with Johnson & Johnson JNJ / AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib)in patients with relapsed or refractory (R/R) hematologic malignancies, such as non-Hodgkin lymphomas (NHL). AbbVie markets Imbruvica in partnership with J&J. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23177.0 | 2022-08-18 00:00:00 UTC | Top Analyst Reports for JPMorgan Chase, AbbVie & Abbott | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-jpmorgan-chase-abbvie-abbott | nan | nan | Thursday, August 18, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
JPMorgan Chase shares have declined -18.3% over the past year against the Zacks Banks - Major Regional industry’s decline of -8.8%. The company’s capital markets business and higher mortgage rates are likely to make fee income growth challenging due to the uncertain macroeconomic environment. Moreover, steadily rising operating expenses remain a key near-term headwind. Notably, given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks.
However, higher interest rates and growth in loan demand are expected to result in a robust improvement in net interest income (NII). Opening new branches, strategic buyouts/investments and global expansion and digitization initiatives are likely to keep aiding the top line.
(You can read the full research report on JPMorgan Chase here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
(You can read the full research report on AbbVie here >>>)
Abbott shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -44.5%. The company’s total worldwide Nutrition and Pediatric Nutrition sales continued to be hampered due to the negative repercussions of a voluntary recall of certain powder formulae produced at one of Abbott's U.S. plants. Decline in organic sales in the Neuromodulation and Vascular businesses in the second quarter also raise worries.
Offsetting these negatives, Abbott continues to enjoy robust organic sales growth across core operating segments, barring Nutrition, as reflected in its latest quarterly release. The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. The Zacks analyst are particularly upbeat about the receipt of FDA clearance for the company’s FreeStyle Libre 3 system in May 2022
(You can read the full research report on Abbott here >>>)
Other noteworthy reports we are featuring today include Linde plc (LIN), Intuit Inc. (INTU), and Caterpillar Inc. (CAT).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay
Featured Reports
Linde (LIN) Benefits from Advanced Gas Processing Solutions
The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Yet, higher costs of sales are concerning.
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.
America Movil (AMX) Benefits from Increasing Subscriber Base
Per the Zacks analyst, America Movil's performance is gaining from increased broadband client base However, stiff competition and the firm's high leverage remain concerns.
Acquisitions & Cost-Cutting Initiatives Aid MetLife (MET)
Per the Zacks analyst, several acquisitions and partnerships bolster the capabilities and global presence of MetLife. Efforts to control costs are driving its margins.
Infrastructure Investment & Clean Assets Aid PPL (PPL)
Per the Zacks analyst, PPL Corporation's investment of $12 billion through 2026, will strengthen its infrastructure and assist it to efficiently serve customers, which will boost its profitability.
Robust Digital Ordering Aid Domino's (DPZ), High Costs Ail
Per the Zacks analyst, a solid digital ordering system and higher global retail sales bode well for Domino's. However, staffing challenges, supply chain problems and inflationary pressures hurts.
Revenue Rise Ups Trane Technologies (TT) Despite Low Liquidity
The Zacks analyst is positive about Trane Technologies' (TT) growth objectives, aiming to increase its revenue streams from parts, services, used equipment and rentals. Low current ratio is a bane.
New Upgrades
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Cenovus (CVE) to Gain From Alberta Tucker Asset Divestment
The Zacks Analyst is upbeat about Cenovus' divestment of the Tucker thermal asset in Alberta, which is likely to help reduce the debt burden and raise shareholder returns.
Strength in the End Market to Drive Applied Industrial (AIT)
Per the Zacks analyst, solid demand across the technology, metals, refining, chemicals and automation end markets are likely to drive Applied Industrial's top-line performance in the quarters ahead.
New Downgrades
Soft Comps Performance to Hurt Children's Place (PLCE) Sales
Per the Zacks analyst, persistent of soft comps performance may hurt Children's Place sales. The company expects a low-double-digit decline in comps in both the third quarter as well as fiscal year.
Weakening Memory Chip Demand to Hurt Micron's (MU) Sales
Per the Zacks Analyst, weakening consumer spending on personal computers and smartphones is expected to negatively impact demand for Micron's memory chips in the near term.
News Corporation's (NWSA) Subscription Unit Remains Soft
Per Zacks analyst, News Corporation is seeing a soft Subscription Video Services segment for a while. Lower revenues from residential broadcast product and currency headwinds hurt the unit's revenues.
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JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Linde plc (LIN): 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. | (You can read the full research report on JPMorgan Chase here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). | Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. (You can read the full research report on JPMorgan Chase here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. | (You can read the full research report on AbbVie here >>>) Abbott shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -44.5%. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). | Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). (You can read the full research report on JPMorgan Chase here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. |
23178.0 | 2022-08-18 00:00:00 UTC | I-Mab (IMAB) Down After Partner AbbVie Revises Partnership Deal | ABBV | https://www.nasdaq.com/articles/i-mab-imab-down-after-partner-abbvie-revises-partnership-deal | nan | nan | Shares of I-Mab IMAB were down 14.3% on Aug 17 after management disclosed in an SEC filing that the company’s partner AbbVie ABBV has decided to discontinue a phase Ib study evaluating lemzoparlimab, its anti-CD47 antibody, in myelodysplastic syndrome (MDS) and acute myelocytic leukemia (AML) indications.
Though the reason for AbbVie arriving at this decision was not revealed, it was not based on any safety concerns.
Alongside the above announcement, I-Mab also disclosed that it had amended the terms of its partnership deal with AbbVie. The original deal, inked in September 2020, relates to the development and commercialization of I-Mab’s lemzoparlimab targeting multiple types of cancer.
Originally, I-Mab was eligible to receive $1.74 billion in potential milestone payments from AbbVie for lemzoparlimab. Following the amendment, I-Mab will now be eligible to receive up to $1.295 billion in potential milestone payments for new anti-CD47 antibodies which are currently undergoing development. The terms of the deal with regard to other licensed products still remain the same. I-Mab will continue to hold the exclusive right to develop and commercialize the new CD47 antibody therapies in Greater China.
This revision in the deal has not only led to a decline in milestone payments by more than $400 million to I-Mab but also delayed the receipt of the potential milestone payments. In fact, I-Mab will now have to dedicate time and resources to developing a new candidate to meet AbbVie’s standards to earn these payments.
Shares of IMAB were most likely down due to the reduction in potential milestone payments receivable from AbbVie coupled with the discontinuation of the early-stage study on lemzoparlimab. The stock has plunged 85.6% in the year so far compared with the industry’s 17.7% fall.
Image Source: Zacks Investment Research
I-Mab continues to evaluate lemzoparlimab in clinical studies. Per management, the candidate has demonstrated a good safety profile in early-stage and mid-stage clinical studies. The company intends to move lemzoparlimab into late-stage development to treat MDS in China using its cash resources, which it deems sufficient to support all its ongoing and planned clinical studies.
IMab Sponsored ADR Price
IMab Sponsored ADR price | IMab Sponsored ADR Quote
Zacks Rank & Stocks to Consider
I-Mab currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stock in the overall healthcare sector include Morphic MORF and Sesen Bio SESN, each of which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for Morphic’s 2022 loss per share have narrowed from $3.47 to $1.75. Loss estimates for 2023 have narrowed from $3.96 to $3.77 during the same period. Shares of Morphic have lost 34.7% in the year-to-date period.
Earnings of Morphic beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 48.29%, on average. In the last reported quarter, MORF delivered an earnings surprise of 183.95%.
Estimates for Sesen Bio’s 2022 bottom line have narrowed from a loss of 44 cents to 43 cents in the past 30 days. Loss estimates for 2023 have narrowed from 35 cents to 1 cent during the same period. Share prices of Sesen Bio have fallen 15.6% in the year-to-date period.
Earnings of Sesen Bio beat estimates in each of the last four quarters, the average surprise being 89.49%. In the last reported quarter, Sesen Bio delivered an earnings surprise of 61.54%.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
SESEN BIO, INC. (SESN): Free Stock Analysis Report
Morphic Holding, Inc. (MORF): Free Stock Analysis Report
IMab Sponsored ADR (IMAB): 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. | Shares of I-Mab IMAB were down 14.3% on Aug 17 after management disclosed in an SEC filing that the company’s partner AbbVie ABBV has decided to discontinue a phase Ib study evaluating lemzoparlimab, its anti-CD47 antibody, in myelodysplastic syndrome (MDS) and acute myelocytic leukemia (AML) indications. Though the reason for AbbVie arriving at this decision was not revealed, it was not based on any safety concerns. Alongside the above announcement, I-Mab also disclosed that it had amended the terms of its partnership deal with AbbVie. | Shares of I-Mab IMAB were down 14.3% on Aug 17 after management disclosed in an SEC filing that the company’s partner AbbVie ABBV has decided to discontinue a phase Ib study evaluating lemzoparlimab, its anti-CD47 antibody, in myelodysplastic syndrome (MDS) and acute myelocytic leukemia (AML) indications. Though the reason for AbbVie arriving at this decision was not revealed, it was not based on any safety concerns. Alongside the above announcement, I-Mab also disclosed that it had amended the terms of its partnership deal with AbbVie. | Shares of I-Mab IMAB were down 14.3% on Aug 17 after management disclosed in an SEC filing that the company’s partner AbbVie ABBV has decided to discontinue a phase Ib study evaluating lemzoparlimab, its anti-CD47 antibody, in myelodysplastic syndrome (MDS) and acute myelocytic leukemia (AML) indications. Though the reason for AbbVie arriving at this decision was not revealed, it was not based on any safety concerns. Alongside the above announcement, I-Mab also disclosed that it had amended the terms of its partnership deal with AbbVie. | Shares of I-Mab IMAB were down 14.3% on Aug 17 after management disclosed in an SEC filing that the company’s partner AbbVie ABBV has decided to discontinue a phase Ib study evaluating lemzoparlimab, its anti-CD47 antibody, in myelodysplastic syndrome (MDS) and acute myelocytic leukemia (AML) indications. Though the reason for AbbVie arriving at this decision was not revealed, it was not based on any safety concerns. Alongside the above announcement, I-Mab also disclosed that it had amended the terms of its partnership deal with AbbVie. |
23179.0 | 2022-08-18 00:00:00 UTC | 3 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/3-top-dividend-kings-to-buy-for-the-long-haul-2 | nan | nan | If you're hunting for stocks that you can expect to keep hiking their dividends year after year, look no further than the Dividend Kings. Every member of this elite group has a history of raising dividend payments year after year without interruption for at least 50 years, and many of the businesses are eager to do the same for the next 50 years.
Investing in one of those companies is a fair bet that you'll get the advantage of those hikes for the long haul, so let's examine three of the juicier royals that are ripe for buying today.
1. Becton, Dickinson
Becton, Dickinson (NYSE: BDX) makes the healthcare goods that the world's clinics, laboratories, and operating rooms need, like sterile dressings, diagnostic tests, and test tubes. And it's getting into cloud-based software for pharmacies and research groups, too.
With more than $20 billion in trailing-12-month (TTM) revenue, it's also one of the biggest businesses on the planet, which should go a long way to convince investors that it'll be sticking around for the foreseeable future.
While it isn't a rapidly growing company -- diluted earnings per share (EPS) increased 13.2% year over year in its fiscal third quarter -- that shouldn't matter much for long-term investors. In the last 10 years, its dividend has increased by 93.3%, and there's likely more on the way, given its proven ability to expand, albeit ploddingly, into global biomedical markets.
In other words, slow growth isn't a problem if it's relatively consistent and has few pullbacks over time, like with BD. Its customers aren't about to reduce their orders for evergreen medical supplies, and given the expansion of the global population over time, it's reasonable to expect that BD will face slowly rising demand in the future, just like it did in the past.
2. Abbott Laboratories
Much like BD, Abbott Laboratories (NYSE: ABT) produces diagnostic tests and surgical goods, but it also makes medical devices like pacemakers and medical nutrition products like baby formula. Most of its products exhibit consistent levels of demand over time, which generates steady cash flows regardless of economic headwinds.
And it has the distinction of paying its dividend for 394 consecutive quarters, growing it by more than 77.3% in the last five years. To accomplish that, it has innovated in response to opportunity, often quite quickly.
For example, its coronavirus diagnostic tests brought in $2.3 billion in revenue in the second quarter of this year alone, accounting for a significant portion of its quarterly haul of $11.3 billion. That's a couple of billion dollars in sales roughly every three months that it wasn't making a mere three years ago, before the pandemic.
And it won't be the last time the company successfully chases an emerging market while simultaneously maintaining and expanding its revenue from existing products. Medical devices are likely to be its biggest growth segment, as the margins are even more attractive than with diagnostics.
3. AbbVie
AbbVie (NYSE: ABBV) is a pharmaceutical company that develops and sells medicines, and it's a spin-off of Abbott Laboratories. Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. So it goes big on squeezing as much money as it can out of its drugs by investigating them for new indications once they're approved for sale.
As a result, in the first quarter of this year, it was waiting on regulators to weigh in on a grand total of four different programs, all of which were based on its existing medicines. Plus, it has dozens of programs in late-stage clinical trials, with even more working their way through the earlier parts of the process. And consistent success with commercializing its drugs is why its annual revenue rose by nearly 100% in the last five years.
It'll need to keep up the good work if it wants to continue hiking its dividend, which investors have been pleased to see expand by 120.3% since around this time in late 2018.
And this Dividend King isn't without risks. Management expects to expand its top line at a compound annual rate in the low single digits from 2025 through 2030 after weak growth in 2023 and 2024 stemming from the exclusivity expiration of one of its biggest-selling drugs, Humira. For long-term investors, that period of slow growth just might be a great time to buy AbbVie's shares should they become priced at a discount.
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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. | Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that develops and sells medicines, and it's a spin-off of Abbott Laboratories. For long-term investors, that period of slow growth just might be a great time to buy AbbVie's shares should they become priced at a discount. | AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that develops and sells medicines, and it's a spin-off of Abbott Laboratories. Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. For long-term investors, that period of slow growth just might be a great time to buy AbbVie's shares should they become priced at a discount. | AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that develops and sells medicines, and it's a spin-off of Abbott Laboratories. Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. For long-term investors, that period of slow growth just might be a great time to buy AbbVie's shares should they become priced at a discount. | AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that develops and sells medicines, and it's a spin-off of Abbott Laboratories. Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. For long-term investors, that period of slow growth just might be a great time to buy AbbVie's shares should they become priced at a discount. |
23180.0 | 2022-08-18 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 | 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 Aug 19, 2022 $75.00 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 Top 38% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while four have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.67 per share to $3.59 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 Top 38% of our Zacks Industry Rank. | AbbVie Inc. (ABBV): Free Stock Analysis Report 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? | 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? | 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? |
23181.0 | 2022-08-18 00:00:00 UTC | AbbVie (ABBV) Outperforms Industry This Year So Far: Here's Why | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outperforms-industry-this-year-so-far%3A-heres-why | nan | nan | AbbVie ABBV stock has risen 4.4% this year so far compared with an increase of 0.5% for the industry.
Image Source: Zacks Investment Research
AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has already lost patent protection in Europe and is due to face biosimilar competition in the United States in 2023. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica, which it markets in partnership with J&J JNJ. Its newest immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib) position it well for long-term growth.
Humira continues to witness strong demand trends in the United States despite new mechanisms of action and competition from indirect biosimilars. Currently approved for several indications, Humira sales have increased consistently, backed by robust demand trends.
Among AbbVie’s other immunology medicines, Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. The drugs generated sales of $2.19 billion and $1.06 billion in the first half of 2022, rising 77.9% and 59.2%, respectively, year over year. Both Skyrizi and Rinvoq were approved for active psoriatic arthritis in 2021/early 2022. Rinvoq was approved for atopic dermatitis, ulcerative colitis and ankylosing spondylitis and Skyrizi for Crohn’s disease in the first half of 2022. With approvals for such new indications, sales of these drugs could be higher in 2023/2024 and have the potential to replace Humira when generics are launched in the United States in 2023.
In fact, on the second-quarter conference call, AbbVie raised the full-year guidance for Skyrizi, following a strong sales performance in the first half of 2022. Skyrizi and Rinvoq are expected to generate combined sales of $7.5 billion in 2022 and more than $15 billion by 2025
Meanwhile, new migraine drugs, Ubrelvy and Qulipta, represent a $1 billion-plus peak sales opportunity each.
In its oncology franchise, the strong growth of Venclexta sales is making up for lower U.S. sales of J&J-partnered Imbruvica. U.S. sales of AbbVie/J&J’s Imbruvica are being hurt by lower new patient starts in CLL due to delayed recovery from the pandemic and increasing competition from newer therapies.
AbbVie markets Venclexta/Venclyxto in partnership with Roche RHHBY. AbbVie and Roche jointly commercialize Venclexta in the United States while AbbVie markets it outside the country.
Strong share performance across all approved indications is boosting sales of Venclexta/Venclyxto. AbbVie expects to file a regulatory application seeking approval of Venclexta in relapsed/refractory multiple myeloma in 2023 and in myelodysplastic syndrome or MDS in 2024.
Robust demand for Botox Cosmetic and Juvederm is boosting sales of AbbVie’s aesthetics franchise. Though Juvederm’s sales declined 15.7% in the second quarter due to the impact of COVID in China as well as the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers, AbbVie expects sales to improve in the second half, gaining from lessening COVID impact and two new filler launches in the United States
AbbVie also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Several data readouts are expected in 2022, which could be catalysts for the stock.
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the biotech sector is Alkermes ALKS which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alkermes’ estimates for 2022 have narrowed from a loss of 16 cents to earnings of 20 cents over the past 30 days. Earnings estimates for 2023 have gone up from 32 cents to 50 cents over the same time frame. Shares of Alkermes have risen 10.1% this year so far.
Earnings of Alkermes beat estimates in all the last four quarters, delivering a surprise of 325.48%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has already lost patent protection in Europe and is due to face biosimilar competition in the United States in 2023. U.S. sales of AbbVie/J&J’s Imbruvica are being hurt by lower new patient starts in CLL due to delayed recovery from the pandemic and increasing competition from newer therapies. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV stock has risen 4.4% this year so far compared with an increase of 0.5% for the industry. Image Source: Zacks Investment Research AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | Though Juvederm’s sales declined 15.7% in the second quarter due to the impact of COVID in China as well as the suspension of AbbVie’s aesthetics business operations in Russia, a key market for fillers, AbbVie expects sales to improve in the second half, gaining from lessening COVID impact and two new filler launches in the United States AbbVie also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc. (ABBV): Free Stock Analysis Report | Among AbbVie’s other immunology medicines, Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. AbbVie and Roche jointly commercialize Venclexta in the United States while AbbVie markets it outside the country. AbbVie ABBV stock has risen 4.4% this year so far compared with an increase of 0.5% for the industry. |
23182.0 | 2022-08-17 00:00:00 UTC | Those who invested in AbbVie (NYSE:ABBV) three years ago are up 148% | ABBV | https://www.nasdaq.com/articles/those-who-invested-in-abbvie-nyse%3Aabbv-three-years-ago-are-up-148 | nan | nan | The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the AbbVie Inc. (NYSE:ABBV) share price has flown 115% in the last three years. That sort of return is as solid as granite. In the last week the share price is up 1.6%.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
AbbVie was able to grow its EPS at 37% per year over three years, sending the share price higher. This EPS growth is higher than the 29% average annual increase in the share price. Therefore, it seems the market has moderated its expectations for growth, somewhat.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NYSE:ABBV Earnings Per Share Growth August 17th 2022
It is of course excellent to see how AbbVie has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of AbbVie, it has a TSR of 148% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
A Different Perspective
It's nice to see that AbbVie shareholders have received a total shareholder return of 24% over the last year. Of course, that includes the dividend. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that AbbVie is showing 1 warning sign in our investment analysis , you should know about...
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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. | NYSE:ABBV Earnings Per Share Growth August 17th 2022 It is of course excellent to see how AbbVie has grown profits over the years, but the future is more important for shareholders. To wit, the AbbVie Inc. (NYSE:ABBV) share price has flown 115% in the last three years. AbbVie was able to grow its EPS at 37% per year over three years, sending the share price higher. | To wit, the AbbVie Inc. (NYSE:ABBV) share price has flown 115% in the last three years. AbbVie was able to grow its EPS at 37% per year over three years, sending the share price higher. NYSE:ABBV Earnings Per Share Growth August 17th 2022 It is of course excellent to see how AbbVie has grown profits over the years, but the future is more important for shareholders. | To wit, the AbbVie Inc. (NYSE:ABBV) share price has flown 115% in the last three years. AbbVie was able to grow its EPS at 37% per year over three years, sending the share price higher. NYSE:ABBV Earnings Per Share Growth August 17th 2022 It is of course excellent to see how AbbVie has grown profits over the years, but the future is more important for shareholders. | To wit, the AbbVie Inc. (NYSE:ABBV) share price has flown 115% in the last three years. AbbVie was able to grow its EPS at 37% per year over three years, sending the share price higher. NYSE:ABBV Earnings Per Share Growth August 17th 2022 It is of course excellent to see how AbbVie has grown profits over the years, but the future is more important for shareholders. |
23183.0 | 2022-08-16 00:00:00 UTC | Roche's (RHHBY) sBLA For Polivy Combo Accepted by FDA | ABBV | https://www.nasdaq.com/articles/roches-rhhby-sbla-for-polivy-combo-accepted-by-fda | nan | nan | Roche RHHBY announced that the FDA accepted its supplemental biologics license application (sBLA). The application seeks approval for its lymphoma drug Polivy (polatuzumab vedotin) in combination with Rituxan (rituximab) plus cyclophosphamide, doxorubicin and prednisone (R-CHP) for treating adult patients with previously untreated diffuse large B-cell lymphoma (DLBCL). A decision by the FDA is expected by Apr 2, 2023.
The sBLA for Polivy combination is based on data from the pivotal phase III POLARIX study. The Polivy-R-CHP combination exhibited a significant improvement in progression-free survival (PFS) against the current standard care of Rituxan plus cyclophosphamide, doxorubicin, vincristine and prednisone (R-CHOP).
Polivy is a first-in-class anti-CD79b antibody-drug conjugate (ADC) developed by Roche using Seagen’s SGEN AFDC technology.
Seagen is entitled to receive royalties on the worldwide net sales of Polivy.
DLBCL is a type of non-Hodgkin lymphoma (“NHL”) and is aggressive in nature.
In May 2022, Roche received approval from the European Commission (EC) for using Polivy in combination with R-CHP to treat previously untreated DLBCL. The EC also converted Polivy’s conditional marketing authorization in the EU, to full approval, for the treatment of adult patients with relapsed or refractory (R/R) DLBCL, who are not candidates for a hematopoietic stem cell transplant.
Presently, Polivy is also being evaluated for the treatment of several types of NHL.
Roche shares have declined 16.9% in the year-to-date period against the industry’s return of 2.2%.
Image Source: Zacks Investment Research
Roche has a solid and broad oncology portfolio, and approval of additional drugs or label expansion of existing drugs will further bolster it. It has also expanded its oncology portfolio to hematology and immunology.
Recently, in July, Roche’s BLA for Lunsumio, seeking to treat adult patients with R/R follicular lymphoma (FL) who have received at least two prior systemic therapies, was accepted by the FDA.
Roche’s hematology portfolio comprises of approved drugs like MabThera/Rituxan, Gazyva, Hemlibra (for hemophilia A with factor VIII inhibitors) and Venclexta (for acute myeloid leukemia in adults), being developed in collaboration with AbbVie ABBV.
Venclexta is jointly commercialized by Genetech, a subsidiary of Roche and AbbVie in the United States and commercialized outside the states by AbbVie.
Roche performed well in the first half of 2022, driven by robust demand for its diagnostics base business and new drugs to treat hemophilia, cancer and neurological disorders.
However, the earnings outlook indicated that sales in 2022 would decline year over year due to reduced demand for its COVID-19 medicines and diagnostics.
Roche Holding AG Price
Roche Holding AG price | Roche Holding AG Quote
Zacks Rank and A Stock to Consider
Currently, Roche has a Zacks Rank #3 (Hold).
A better-ranked stock in the overall medical sector is Aerie Pharmaceuticals AERI, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Aeries’ loss estimates for 2022 have narrowed down from $2.01 per share to $1.83 over the past 30 days. Shares of AERI have returned 67.2% year to date. Earnings of Aeries miss estimates in three of the last four quarters, while beating the same in one. AERI delivered an earnings surprise of 70.27%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roche’s hematology portfolio comprises of approved drugs like MabThera/Rituxan, Gazyva, Hemlibra (for hemophilia A with factor VIII inhibitors) and Venclexta (for acute myeloid leukemia in adults), being developed in collaboration with AbbVie ABBV. Venclexta is jointly commercialized by Genetech, a subsidiary of Roche and AbbVie in the United States and commercialized outside the states by AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report | Roche’s hematology portfolio comprises of approved drugs like MabThera/Rituxan, Gazyva, Hemlibra (for hemophilia A with factor VIII inhibitors) and Venclexta (for acute myeloid leukemia in adults), being developed in collaboration with AbbVie ABBV. Venclexta is jointly commercialized by Genetech, a subsidiary of Roche and AbbVie in the United States and commercialized outside the states by AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report | Roche’s hematology portfolio comprises of approved drugs like MabThera/Rituxan, Gazyva, Hemlibra (for hemophilia A with factor VIII inhibitors) and Venclexta (for acute myeloid leukemia in adults), being developed in collaboration with AbbVie ABBV. Venclexta is jointly commercialized by Genetech, a subsidiary of Roche and AbbVie in the United States and commercialized outside the states by AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report | Roche’s hematology portfolio comprises of approved drugs like MabThera/Rituxan, Gazyva, Hemlibra (for hemophilia A with factor VIII inhibitors) and Venclexta (for acute myeloid leukemia in adults), being developed in collaboration with AbbVie ABBV. Venclexta is jointly commercialized by Genetech, a subsidiary of Roche and AbbVie in the United States and commercialized outside the states by AbbVie. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23184.0 | 2022-08-12 00:00:00 UTC | Noteworthy Friday Option Activity: SGEN, ABBV, BAC | ABBV | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-sgen-abbv-bac | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Seagen Inc (Symbol: SGEN), where a total of 6,124 contracts have traded so far, representing approximately 612,400 underlying shares. That amounts to about 68.8% of SGEN's average daily trading volume over the past month of 889,690 shares. Particularly high volume was seen for the $180 strike call option expiring August 19, 2022, with 1,284 contracts trading so far today, representing approximately 128,400 underlying shares of SGEN. Below is a chart showing SGEN's trailing twelve month trading history, with the $180 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 37,584 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 63.5% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $143 strike call option expiring August 12, 2022, with 14,789 contracts trading so far today, representing approximately 1.5 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $143 strike highlighted in orange:
And Bank of America Corp (Symbol: BAC) saw options trading volume of 246,107 contracts, representing approximately 24.6 million underlying shares or approximately 61.2% of BAC's average daily trading volume over the past month, of 40.2 million shares. Particularly high volume was seen for the $36 strike put option expiring August 12, 2022, with 19,373 contracts trading so far today, representing approximately 1.9 million underlying shares of BAC. Below is a chart showing BAC's trailing twelve month trading history, with the $36 strike highlighted in orange:
For the various different available expirations for SGEN options, ABBV options, or BAC 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. | Particularly high volume was seen for the $143 strike call option expiring August 12, 2022, with 14,789 contracts trading so far today, representing approximately 1.5 million underlying shares of ABBV. Below is a chart showing SGEN's trailing twelve month trading history, with the $180 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 37,584 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 63.5% of ABBV's average daily trading volume over the past month, of 5.9 million shares. | Below is a chart showing SGEN's trailing twelve month trading history, with the $180 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 37,584 contracts thus far today. Particularly high volume was seen for the $143 strike call option expiring August 12, 2022, with 14,789 contracts trading so far today, representing approximately 1.5 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $143 strike highlighted in orange: And Bank of America Corp (Symbol: BAC) saw options trading volume of 246,107 contracts, representing approximately 24.6 million underlying shares or approximately 61.2% of BAC's average daily trading volume over the past month, of 40.2 million shares. | Particularly high volume was seen for the $143 strike call option expiring August 12, 2022, with 14,789 contracts trading so far today, representing approximately 1.5 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $143 strike highlighted in orange: And Bank of America Corp (Symbol: BAC) saw options trading volume of 246,107 contracts, representing approximately 24.6 million underlying shares or approximately 61.2% of BAC's average daily trading volume over the past month, of 40.2 million shares. Below is a chart showing SGEN's trailing twelve month trading history, with the $180 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 37,584 contracts thus far today. | Below is a chart showing ABBV's trailing twelve month trading history, with the $143 strike highlighted in orange: And Bank of America Corp (Symbol: BAC) saw options trading volume of 246,107 contracts, representing approximately 24.6 million underlying shares or approximately 61.2% of BAC's average daily trading volume over the past month, of 40.2 million shares. Below is a chart showing BAC's trailing twelve month trading history, with the $36 strike highlighted in orange: For the various different available expirations for SGEN options, ABBV options, or BAC options, visit StockOptionsChannel.com. Below is a chart showing SGEN's trailing twelve month trading history, with the $180 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 37,584 contracts thus far today. |
23185.0 | 2022-08-12 00:00:00 UTC | Notable ETF Outflow Detected - HDV, ABBV, IBM, PXD | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-hdv-abbv-ibm-pxd | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $119.7 million dollar outflow -- that's a 0.9% decrease week over week (from 121,400,000 to 120,250,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.9%, International Business Machines Corp (Symbol: IBM) is up about 0.1%, and Pioneer Natural Resources Co (Symbol: PXD) is up by about 0.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $104.12. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.9%, International Business Machines Corp (Symbol: IBM) is up about 0.1%, and Pioneer Natural Resources Co (Symbol: PXD) is up by about 0.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $104.12. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.9%, International Business Machines Corp (Symbol: IBM) is up about 0.1%, and Pioneer Natural Resources Co (Symbol: PXD) is up by about 0.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $104.12. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.9%, International Business Machines Corp (Symbol: IBM) is up about 0.1%, and Pioneer Natural Resources Co (Symbol: PXD) is up 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 iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $119.7 million dollar outflow -- that's a 0.9% decrease week over week (from 121,400,000 to 120,250,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $104.12. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.9%, International Business Machines Corp (Symbol: IBM) is up about 0.1%, and Pioneer Natural Resources Co (Symbol: PXD) is up 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 iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $119.7 million dollar outflow -- that's a 0.9% decrease week over week (from 121,400,000 to 120,250,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $104.12. |
23186.0 | 2022-08-12 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-2 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 66 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 27 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Korea Investment CORP Existing +136,988 +$8,456
Keeley Teton Advisors LLC Existing UNCH -$73
Prudential PLC Existing +26,714 +$3,374
Public Sector Pension Investment Board Existing +2,720 -$9,637
MayTech Global Investments LLC Existing UNCH -$4
Beck Capital Management LLC Existing -1,464 -$494
Capital Advisory Group Advisory Services LLC Existing -45 -$86
BBR Partners LLC Existing -500 -$570
Lcnb Corp Existing +569 +$22
Kiwi Wealth Investments Limited Partnership Existing -5,580 -$1,419
Main Street Research LLC Existing +76 -$90
BNP Paribas Arbitrage SA Existing -323,790 -$85,268
Pacific Center for Financial Services Existing +1,063 +$150
Financial Partners Group Inc Existing +6 -$11
Grant Street Asset Management Inc. Existing +1,148 +$154
DRW Securities LLC Existing -5,756 -$956
Wimmer Associates 1 LLC Existing -167 -$181
HCR Wealth Advisors Existing -284 -$203
Financial Advocates Investment Management Existing +3,166 +$217
Corient Capital Partners LLC Existing +191 -$829
Birchcreek Wealth Management LLC Existing +528 +$67
ELCO Management Co. LLC Existing -130 -$185
Bluestem Financial Advisors LLC NEW +10,690 +$2
Dorsey & Whitney Trust CO LLC Existing +293 -$167
Greenleaf Trust Existing +13,604 +$1,591
Rathbones Group PLC Existing -557 -$991
CreativeOne Wealth LLC Existing +8,439 +$1,126
Aggregate Change: -132,078 -$86,005
In terms of shares owned, we count 14 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 10 having decreased their positions and 1 new position.
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 06/30/2022 reporting period (out of the 4,046 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 03/31/2022 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds increased their holdings by 1,507,035 shares in the aggregate, from 302,603,619 up to 304,110,654 for a share count increase of approximately 0.50%. The overall top three funds holding ABBV on 06/30/2022 were:
» FUND SHARES OF ABBV HELD
1. JPMorgan Chase & Co. 56,110,635
2. Franklin Resources Inc. 12,821,735
3. UBS Group AG 9,752,330
4-10 Find out the full Top 10 Hedge Funds Holding ABBV »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV).
10 S&P 500 Components Hedge Funds Are Buying »
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 66 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 27 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 66 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 27 of these funds. Existing +1,148 +$154 DRW Securities LLC Existing -5,756 -$956 Wimmer Associates 1 LLC Existing -167 -$181 HCR Wealth Advisors Existing -284 -$203 Financial Advocates Investment Management Existing +3,166 +$217 Corient Capital Partners LLC Existing +191 -$829 Birchcreek Wealth Management LLC Existing +528 +$67 ELCO Management Co. LLC Existing -130 -$185 Bluestem Financial Advisors LLC NEW +10,690 +$2 Dorsey & Whitney Trust CO LLC Existing +293 -$167 Greenleaf Trust Existing +13,604 +$1,591 Rathbones Group PLC Existing -557 -$991 CreativeOne Wealth LLC Existing +8,439 +$1,126 Aggregate Change: -132,078 -$86,005 In terms of shares owned, we count 14 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 10 having decreased their positions and 1 new position. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | Existing +1,148 +$154 DRW Securities LLC Existing -5,756 -$956 Wimmer Associates 1 LLC Existing -167 -$181 HCR Wealth Advisors Existing -284 -$203 Financial Advocates Investment Management Existing +3,166 +$217 Corient Capital Partners LLC Existing +191 -$829 Birchcreek Wealth Management LLC Existing +528 +$67 ELCO Management Co. LLC Existing -130 -$185 Bluestem Financial Advisors LLC NEW +10,690 +$2 Dorsey & Whitney Trust CO LLC Existing +293 -$167 Greenleaf Trust Existing +13,604 +$1,591 Rathbones Group PLC Existing -557 -$991 CreativeOne Wealth LLC Existing +8,439 +$1,126 Aggregate Change: -132,078 -$86,005 In terms of shares owned, we count 14 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 10 having decreased their positions and 1 new position. UBS Group AG 9,752,330 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 66 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 27 of these funds. | At Holdings Channel, we have reviewed the latest batch of the 66 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 27 of these funds. UBS Group AG 9,752,330 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: |
23187.0 | 2022-08-11 00:00:00 UTC | Senate Finance Committee looks at Amgen taxes, widening drugmaker probe | ABBV | https://www.nasdaq.com/articles/senate-finance-committee-looks-at-amgen-taxes-widening-drugmaker-probe | nan | nan | By Michael Erman
NEW YORK, Aug 11 (Reuters) - The U.S. Senate Finance Committee is widening its investigation into the tax practices of U.S. drugmakers to include Amgen Inc AMGN.O, according to a letter sent on Thursday by the committee's chairman, Senator Ron Wyden.
Amgen is already in the crosshairs of the U.S. Internal Revenue Service over its tax practices, particularly how it allocates profits between the U.S. and Puerto Rico.
The IRS is after more than $10 billion in back taxes and penalties the California-based biotech firm, although Amgen has said it believes the proposed adjustments and penalties are without merit.
Wyden, a Democrat from Oregon, and his committee have been looking into how the tax law passed by Republicans in 2017 has benefited large U.S. drugmakers like Amgen, Merck and AbbVie, and whether those companies have been exploiting foreign subsidiaries to avoid taxes.
He sent a letter to Amgen Chief Executive Robert Bradway on Thursday asking what methods the company has used in order to pay an average effective tax rate of around 12 percent over the past 4 years. Wyden's office provided a copy of the letter to Reuters.
"We can confirm that Amgen received a letter from Chairman Wyden regarding the company’s tax practices. We are reviewing the information requests contained in the letter and will respond,” Amgen said in a statement.
Last year, Amgen generated 70% of its sales in the United States yet reported just 28% of its pretax income in the country, according to Wyden.
The Wyden letter also focuses on Amgen's operations in Puerto Rico. Senator Wyden asked the company to provide to the committee financial documents, as well as other financial information, by the end of the month.
He also asked the company to provide any tax agreements it may have signed with Puerto Rican authorities, particularly agreements that might provide the company with a tax rate of 0% in Puerto Rico.
(Reporting by Michael Erman Editing by Alistair Bell)
((michael.erman@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Wyden, a Democrat from Oregon, and his committee have been looking into how the tax law passed by Republicans in 2017 has benefited large U.S. drugmakers like Amgen, Merck and AbbVie, and whether those companies have been exploiting foreign subsidiaries to avoid taxes. Amgen is already in the crosshairs of the U.S. Internal Revenue Service over its tax practices, particularly how it allocates profits between the U.S. and Puerto Rico. He sent a letter to Amgen Chief Executive Robert Bradway on Thursday asking what methods the company has used in order to pay an average effective tax rate of around 12 percent over the past 4 years. | Wyden, a Democrat from Oregon, and his committee have been looking into how the tax law passed by Republicans in 2017 has benefited large U.S. drugmakers like Amgen, Merck and AbbVie, and whether those companies have been exploiting foreign subsidiaries to avoid taxes. "We can confirm that Amgen received a letter from Chairman Wyden regarding the company’s tax practices. Senator Wyden asked the company to provide to the committee financial documents, as well as other financial information, by the end of the month. | Wyden, a Democrat from Oregon, and his committee have been looking into how the tax law passed by Republicans in 2017 has benefited large U.S. drugmakers like Amgen, Merck and AbbVie, and whether those companies have been exploiting foreign subsidiaries to avoid taxes. By Michael Erman NEW YORK, Aug 11 (Reuters) - The U.S. Senate Finance Committee is widening its investigation into the tax practices of U.S. drugmakers to include Amgen Inc AMGN.O, according to a letter sent on Thursday by the committee's chairman, Senator Ron Wyden. He also asked the company to provide any tax agreements it may have signed with Puerto Rican authorities, particularly agreements that might provide the company with a tax rate of 0% in Puerto Rico. | Wyden, a Democrat from Oregon, and his committee have been looking into how the tax law passed by Republicans in 2017 has benefited large U.S. drugmakers like Amgen, Merck and AbbVie, and whether those companies have been exploiting foreign subsidiaries to avoid taxes. By Michael Erman NEW YORK, Aug 11 (Reuters) - The U.S. Senate Finance Committee is widening its investigation into the tax practices of U.S. drugmakers to include Amgen Inc AMGN.O, according to a letter sent on Thursday by the committee's chairman, Senator Ron Wyden. The IRS is after more than $10 billion in back taxes and penalties the California-based biotech firm, although Amgen has said it believes the proposed adjustments and penalties are without merit. |
23188.0 | 2022-08-11 00:00:00 UTC | September 30th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/september-30th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the September 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new September 30th 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 $3.70. 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 $136.30 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $141.63/share today.
Because the $140.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.64% return on the cash commitment, or 19.29% 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 $3.20. If an investor was to purchase shares of ABBV stock at the current price level of $141.63/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 4.64% if the stock gets called away at the September 30th 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 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.26% boost of extra return to the investor, or 16.49% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $141.63) 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 become available today, for the September 30th 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. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the September 30th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $140.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $3.20. 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 become available today, for the September 30th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new September 30th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $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 become available today, for the September 30th expiration. |
23189.0 | 2022-08-09 00:00:00 UTC | Few U.S. patients with hepatitis C get timely treatment, CDC says | ABBV | https://www.nasdaq.com/articles/few-u.s.-patients-with-hepatitis-c-get-timely-treatment-cdc-says | nan | nan | By Mrinalika Roy
Aug 9 (Reuters) - Few U.S. adults diagnosed with hepatitis C virus infections receive timely treatment with antiviral drugs, the U.S. Centers for Disease Control and Prevention said on Tuesday.
The drugs cure hepatitis C in more than 95% of patients, but a study of more than 47,000 adults diagnosed in 2019 or 2020 found that only one-third of those with private insurance and one-quarter of Medicaid and Medicare recipients got one of these drugs within a year, according to a report in the CDC's Vital Signs.
Treatment rates were lowest among patients in state-administered health plans, with only 23% of Medicaid recipients and 28% of Medicare recipients receiving the drugs within a year of diagnosis, the study showed. That rate was only 35% among patients with private insurance.
Lower odds of treatment were also seen in states with Medicaid restrictions and in non-white patients.
"Everyone with hepatitis C should have access to lifesaving treatment, regardless of race, ethnicity, age or insurance status... This is critical to stop preventable deaths and prevent new infections," said CDC Acting Principal Deputy Director Debra Houry.
The hepatitis C causes liver inflammation, with results ranging from mild illness to chronic, lifelong liver scarring that can lead to cirrhosis, cancer and the need for liver transplantation.
In 2016, an estimated 2.4 million people in the United States were living with chronic hepatitis C infection, according to CDC data.
Hepatitis C is a lucrative market for drugmakers. Several big pharma names including Gilead GILD.O, Bristol Myers SquibbBMY.N, and Abbvie ABBV.N have antiviral drugs in the market with prices ranging from $24,000 to $95,000 for a 12-week course.
The CDC recommends a number of steps to ensure patients receive cost-effective and timely treatments including expanding the number of primary care providers treating hepatitis C and increasing screening for the infection.
"We estimate about 40% of people with hepatitis C in the U.S. are unaware of their infection - testing is the first step to accessing curative treatment," said Carolyn Wester, director of the CDC's Division of Viral Hepatitis.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Nancy Lapid and Lisa Shumaker)
((mrinalika.roy@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Several big pharma names including Gilead GILD.O, Bristol Myers SquibbBMY.N, and Abbvie ABBV.N have antiviral drugs in the market with prices ranging from $24,000 to $95,000 for a 12-week course. By Mrinalika Roy Aug 9 (Reuters) - Few U.S. adults diagnosed with hepatitis C virus infections receive timely treatment with antiviral drugs, the U.S. Centers for Disease Control and Prevention said on Tuesday. In 2016, an estimated 2.4 million people in the United States were living with chronic hepatitis C infection, according to CDC data. | Several big pharma names including Gilead GILD.O, Bristol Myers SquibbBMY.N, and Abbvie ABBV.N have antiviral drugs in the market with prices ranging from $24,000 to $95,000 for a 12-week course. By Mrinalika Roy Aug 9 (Reuters) - Few U.S. adults diagnosed with hepatitis C virus infections receive timely treatment with antiviral drugs, the U.S. Centers for Disease Control and Prevention said on Tuesday. Treatment rates were lowest among patients in state-administered health plans, with only 23% of Medicaid recipients and 28% of Medicare recipients receiving the drugs within a year of diagnosis, the study showed. | Several big pharma names including Gilead GILD.O, Bristol Myers SquibbBMY.N, and Abbvie ABBV.N have antiviral drugs in the market with prices ranging from $24,000 to $95,000 for a 12-week course. The drugs cure hepatitis C in more than 95% of patients, but a study of more than 47,000 adults diagnosed in 2019 or 2020 found that only one-third of those with private insurance and one-quarter of Medicaid and Medicare recipients got one of these drugs within a year, according to a report in the CDC's Vital Signs. The CDC recommends a number of steps to ensure patients receive cost-effective and timely treatments including expanding the number of primary care providers treating hepatitis C and increasing screening for the infection. | Several big pharma names including Gilead GILD.O, Bristol Myers SquibbBMY.N, and Abbvie ABBV.N have antiviral drugs in the market with prices ranging from $24,000 to $95,000 for a 12-week course. The drugs cure hepatitis C in more than 95% of patients, but a study of more than 47,000 adults diagnosed in 2019 or 2020 found that only one-third of those with private insurance and one-quarter of Medicaid and Medicare recipients got one of these drugs within a year, according to a report in the CDC's Vital Signs. That rate was only 35% among patients with private insurance. |
23190.0 | 2022-08-09 00:00:00 UTC | Reata (RETA) Q2 Earnings Miss, Revenues Down Y/Y, Stock Down | ABBV | https://www.nasdaq.com/articles/reata-reta-q2-earnings-miss-revenues-down-y-y-stock-down | nan | nan | Reata Pharmaceuticals, Inc. RETA reported a loss of $2.02 per share in second-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.90.
However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.36 per share, wider than the loss of $1.32 per share recorded in the year-ago period.
Total revenues, comprising collaboration revenues, were $0.76 million, down 6.1% year over year. Revenues missed the Zacks Consensus Estimate of $3 million.
Reata shares were down 32.6% on Monday at market close after it announced its second-quarter earnings and provided updates on its pipeline programs. Shares of Reata have declined 8.7% year to date compared with the industry’s decrease of 17.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Adjusted research and development expenses were down 5.2% year over year to $33 million. Adjusted general and administrative expenses were $17.6 million, up 25.7% from the year-ago period.
The company had cash and cash equivalents and marketable securities of $481.5 million as of Jun 30, 2022, compared with $532 million as of Mar 31, 2022. The company expects its cash resources to fund operations through 2024-end.
Pipeline Update
Reata has developed its lead pipeline candidates — bardoxolone methyl (bardoxolone) and omaveloxolone — for rare forms of chronic kidney disease (“CKD”) and neurological diseases, respectively. Reata reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019.
The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie.
Reata has developed omaveloxolone as a potential treatment for Friedreich’s ataxia (“FA”).
The FDA accepted its new drug application (NDA) for omaveloxolone for priority review in May.The NDA is seeking approval for the candidate as a treatment for patients with FA.
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. After which, the company submitted additional data from the long-term MOXIe extension study from the March 22 data that contained new, later time points and increased numbers of patients at later time points than the prior analysis.
The company also provided 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. The data exhibited that mFARS progression in patients treated with omaveloxolone was 55% slower compared with untreated patients in FA-XOMS 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.
A decision from the FDA on the potential approval of omaveloxolone is expected by Nov 30, 2022. Reata has started commercial preparation to support the launch of omaveloxolone as a FA therapy in early 2023.
The company plans to file a regulatory application seeking approval for omaveloxolone as a treatment for FA patients in Europe in the fourth quarter of 2022.
Reata is evaluating bardoxolone for treating autosomal dominant polycystic kidney disease (ADPKD) in a late-stage study, FALCON. The company is currently enrolling patients in the phase III study. Based on the result of the data from the FALCON study, Reata will submit a regulatory filing with the FDA.
Reata filed a new drug application seeking approval ofbardoxolone as a treatment for patients with CKD caused by Alport syndrome in 2021. However, the FDA issued a complete response letter in February 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 Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Reata Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Reata Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Reata currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Novavax NVAX and Sesen Bio SESN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Novavax’s earnings estimates for 2022 have remained steady at $27.23 over the past 30 days. Shares of NVAX have declined 59.9% year to date. Earnings of Novavax missed estimates in all of the last four quarters. NVAX delivered a negative earnings surprise of 184.49%, on average.
Sesen Bio’s loss estimates for 2022 have remained steady at 44 cents per share over the past 30 days. Shares of SESN have declined 10.5% year to date. Earnings of Sesen Bio beat estimates in three of the last four quarters and missed the mark on one occasion. SESN delivered an earnings surprise of 69.94%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Reata reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. | Reata reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. | Reata reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. | Reata reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. |
23191.0 | 2022-08-08 00:00:00 UTC | Should You Buy Merck Stock After An Upbeat Q2? | ABBV | https://www.nasdaq.com/articles/should-you-buy-merck-stock-after-an-upbeat-q2 | nan | nan | Merck stock (NYSE: MRK) reported its Q2 results last week, with revenue and earnings comfortably above ours and the street estimates. However, MRK stock has seen a fall of around 4% in a week, with rising concerns over the drug pricing bill. After the recent fall, we believe MRK stock has some more room for growth and may see higher levels, as discussed below.
Merck’s revenue of $14.6 billion in Q2 was up 28% y-o-y, and its EPS of $1.87 reflected a significant 3x growth. This compares with our estimates of $13.9 billion and $1.73, respectively. The revenue growth was led by higher sales of its blockbuster drug – Keytruda (up 26% to $5.3 billion) – and Gardasil (up 36% to $1.7 billion).
Given the upbeat results, the company raised its revenue guidance for the full-year 2022 to be in the range of $57.5 and $58.5 billion, including headwinds from the strengthening dollar. It also narrowed the earnings guidance to now be in the range of $7.25 and $7.35 on a per share and adjusted basis.
Overall, Merck’s Q2 results were solid, with market share gains for its key drugs. A decline in its diabetes portfolio was anticipated given it lost market exclusivity in China and will lose that for Europe next month. Merck is eyeing inorganic growth to expand its pipeline. It is reportedly in talks to acquire Seagen Inc. in a deal value that could exceed $40 billion. This acquisition, if successful, subject to regulatory approvals, will likely be looked at as a positive for Merck, enhancing its cancer drugs portfolio. Seagen’s key products are Padcev, Tukysa, and Adcetris, each a potential blockbuster drug that can help Merck post more robust revenue growth.
Given the recently announced results and outlook, we have updated our model and revised our estimates. We expect full-year 2022 revenue to be $58.0 billion, within the company’s provided range, but earnings to be $7.38, marginally higher than its estimates.
We estimate Merck’s valuation of $102 per share, reflecting a 15% upside from its current market price near $88, implying that investors may be better off using the recent dip to enter MRK stock for gains in the long run.
Our valuation is based on a forward P/E ratio of under 14x based on our earnings forecast of $7.38 on a per-share basis for full-year 2022. At its current levels, MRK stock is trading at under 12x its forward earnings, compared to the last three-year average of 13x, implying some more room for growth. We have allocated a slightly higher earnings multiple for Merck (compared to the levels seen in recent years) due to an expected rise in earnings over the coming years as its key drugs continue to gain market share.
While MRK stock looks like it has more room for growth, 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 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 Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return -2% 14% 49%
S&P 500 Return 1% -13% 86%
Trefis Multi-Strategy Portfolio 4% -10% 253%
[1] Month-to-date and year-to-date as of 8/4/2022
[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. | Seagen’s key products are Padcev, Tukysa, and Adcetris, each a potential blockbuster drug that can help Merck post more robust revenue growth. We estimate Merck’s valuation of $102 per share, reflecting a 15% upside from its current market price near $88, implying that investors may be better off using the recent dip to enter MRK stock for gains in the long run. At its current levels, MRK stock is trading at under 12x its forward earnings, compared to the last three-year average of 13x, implying some more room for growth. | At its current levels, MRK stock is trading at under 12x its forward earnings, compared to the last three-year average of 13x, implying some more room for growth. We have allocated a slightly higher earnings multiple for Merck (compared to the levels seen in recent years) due to an expected rise in earnings over the coming years as its key drugs continue to gain market share. Total [2] MRK Return -2% 14% 49% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 4% -10% 253% [1] Month-to-date and year-to-date as of 8/4/2022 [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 of $102 per share, reflecting a 15% upside from its current market price near $88, implying that investors may be better off using the recent dip to enter MRK stock for gains in the long run. We have allocated a slightly higher earnings multiple for Merck (compared to the levels seen in recent years) due to an expected rise in earnings over the coming years as its key drugs continue to gain market share. Total [2] MRK Return -2% 14% 49% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 4% -10% 253% [1] Month-to-date and year-to-date as of 8/4/2022 [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. | This compares with our estimates of $13.9 billion and $1.73, respectively. We expect full-year 2022 revenue to be $58.0 billion, within the company’s provided range, but earnings to be $7.38, marginally higher than its estimates. We have allocated a slightly higher earnings multiple for Merck (compared to the levels seen in recent years) due to an expected rise in earnings over the coming years as its key drugs continue to gain market share. |
23192.0 | 2022-08-07 00:00:00 UTC | 3 Unstoppable Stocks That Don't Care About the Bear Market | ABBV | https://www.nasdaq.com/articles/3-unstoppable-stocks-that-dont-care-about-the-bear-market | nan | nan | Whether it's thanks to a winning business model or timely good news, some companies are taking the bear market in stride, and some are even crushing it.
In particular, there are three big pharma stocks that are rising higher amid the market's decline. If you're interested in building some all-weather growth into your portfolio, they might be right up your alley, so here's a quick rundown of each.
1. AstraZeneca
Compared to the broader market's slump of around 5% in the last 12 months, AstraZeneca's (NASDAQ: AZN) stock has climbed 19%, making it a robust outperformer, to say the least. The company's success during the bear market is simply a matter of the strength of its drug development pipeline; with 184 projects in clinical trials and late-preclinical testing, it's among the largest in the world. In the last month alone, it bagged no fewer than three regulatory OKs in the E.U. and one in the U.S., and it also has 17 late-stage programs for new molecular entities. That means AstraZeneca has a very solid chance of commercializing a handful of new medicines for which there is no prior approval for any indication, likely making a lot of money in the process.
And having so many drugs on deck for approval is basically the company's normal state of being, which is part of the reason why its trailing-12-month revenue rose by 82.4% over the last three years to surpass $44 billion. Furthermore, because its pipeline enables it to churn out new drugs on such a large scale on a long-term basis, AstraZeneca's cash flows are reliable enough to pay a dividend, which also helps to stabilize its share price during downturns. Right now, its forward dividend yield is 2.2%. Though there isn't a reason to think that its dividend will rise on a yearly basis, its rapid free cash flow growth indicates that it also isn't in any danger of getting cut.
2. AbbVie
Much like AstraZeneca, AbbVie (NYSE: ABBV) boasts a massive development pipeline that commonly has four or more programs awaiting rulings from regulators and dozens of late-stage programs in progress at the same time. For instance, this year it could get up to nine approvals for expanded indications of its existing medicines, and in 2023 it expects to nab as many as eight new approvals while also submitting the paperwork for an additional nine projects. The result of such an intense research and development (R&D) tempo is an ever-increasing pile of earnings; over the last five years, the pharma's trailing-12-month (TTM) net income climbed by just over 90%.
AbbVie's performance during the bear market has been similarly strong, with the total return of its shares increasing by 6% in comparison to the market's decline of 13% this year so far. But while it might not need to worry about the market downturn, it does have a potential challenge developing. Humira, its drug for psoriatic arthritis and a slew of other conditions, is facing sharply rising competition from biosimilars in international markets, and sales are under heavy pressure. Given that the medicine was responsible for bringing in more than $17.3 billion during 2021 out of AbbVie's net revenue of $56.1 billion, if its plans to replace the falling revenue with sales from new programs falters, the next couple of years could actually end up being more difficult for investors than the bear market has been.
3. Bristol Myers Squibb
Bristol Myers Squibb's (NYSE: BMY) stock is up by 15% this year even though its pipeline isn't as jam-packed with looming approvals as AbbVie or AstraZeneca. Nonetheless, the business is growing faster than the other two, with its TTM revenue increasing by 95% over the last three years. And this year, it's still expecting six new approvals, with at least two more to come in 2023 and 2024. Beyond those catalysts, Bristol Myers is also looking to make bolt-on acquisitions to shore up its pipeline while continuing to hike its dividend, buy back its shares, and reduce its debt load of $10 billion maturing through 2024.
All of the above will help it to keep performing strongly during the bear market and beyond, especially if it can pick up a few of its smaller competitors in the precision oncology segment, as management clearly desires. Investors might want to be cautious about investing in Bristol Myers right this second, though; in its Q2 earnings update, management slashed its 2022 guidance, calling for a maximum of $3.01 in earnings per share (EPS) compared to the prior estimate's ceiling of $3.22.
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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 Much like AstraZeneca, AbbVie (NYSE: ABBV) boasts a massive development pipeline that commonly has four or more programs awaiting rulings from regulators and dozens of late-stage programs in progress at the same time. AbbVie's performance during the bear market has been similarly strong, with the total return of its shares increasing by 6% in comparison to the market's decline of 13% this year so far. Given that the medicine was responsible for bringing in more than $17.3 billion during 2021 out of AbbVie's net revenue of $56.1 billion, if its plans to replace the falling revenue with sales from new programs falters, the next couple of years could actually end up being more difficult for investors than the bear market has been. | Bristol Myers Squibb Bristol Myers Squibb's (NYSE: BMY) stock is up by 15% this year even though its pipeline isn't as jam-packed with looming approvals as AbbVie or AstraZeneca. AbbVie Much like AstraZeneca, AbbVie (NYSE: ABBV) boasts a massive development pipeline that commonly has four or more programs awaiting rulings from regulators and dozens of late-stage programs in progress at the same time. AbbVie's performance during the bear market has been similarly strong, with the total return of its shares increasing by 6% in comparison to the market's decline of 13% this year so far. | Given that the medicine was responsible for bringing in more than $17.3 billion during 2021 out of AbbVie's net revenue of $56.1 billion, if its plans to replace the falling revenue with sales from new programs falters, the next couple of years could actually end up being more difficult for investors than the bear market has been. Bristol Myers Squibb Bristol Myers Squibb's (NYSE: BMY) stock is up by 15% this year even though its pipeline isn't as jam-packed with looming approvals as AbbVie or AstraZeneca. AbbVie Much like AstraZeneca, AbbVie (NYSE: ABBV) boasts a massive development pipeline that commonly has four or more programs awaiting rulings from regulators and dozens of late-stage programs in progress at the same time. | AbbVie's performance during the bear market has been similarly strong, with the total return of its shares increasing by 6% in comparison to the market's decline of 13% this year so far. Bristol Myers Squibb Bristol Myers Squibb's (NYSE: BMY) stock is up by 15% this year even though its pipeline isn't as jam-packed with looming approvals as AbbVie or AstraZeneca. AbbVie Much like AstraZeneca, AbbVie (NYSE: ABBV) boasts a massive development pipeline that commonly has four or more programs awaiting rulings from regulators and dozens of late-stage programs in progress at the same time. |
23193.0 | 2022-08-06 00:00:00 UTC | 3 Unstoppable Dividend Stocks to Buy in August | ABBV | https://www.nasdaq.com/articles/3-unstoppable-dividend-stocks-to-buy-in-august | nan | nan | Some dividend stocks are better than others. The differentiator is how strong the underlying businesses are that make the dividends possible.
We asked three Motley Fool contributors to pick unstoppable dividend stocks to buy in August. Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Pfizer (NYSE: PFE).
Winning over the long term
Keith Speights (AbbVie): If you only focused on the short term, you might turn up your nose at AbbVie. The big drugmaker posted a disappointing second-quarter update last week, causing its shares to tank. AbbVie also faces biosimilar competition in the U.S. for its top-selling drug, Humira, beginning next year.
However, limiting your horizon only to AbbVie's near-term prospects is quite literally short-sighted. That's especially the case if you're looking for solid income.
AbbVie ranks as a Dividend King, with 50 consecutive years of dividend increases under its belt. Its dividend yield currently tops 4% -- a level that almost any investor would love. The company has also increased its dividend by more than 250% since spinning off from Abbott Labs in 2013.
The dividend program shouldn't skip a beat even with Humira likely to experience a steep sales decline next year. AbbVie has other products that are poised to take up the slack, notably including autoimmune-disease drugs Rinvoq and Skyrizi.
It's possible that Medicare pricing changes in a proposed bill making its way through the U.S. Congress could negatively impact AbbVie and other big drugmakers. However, AbbVie is quite adept at adjusting as needed. My view is that the company will truly be unstoppable over the long run.
A temporary slowdown
Prosper Junior Bakiny (Bristol Myers Squibb): Distributing money as dividends and pouring funds into research and development efforts has paid off for Bristol Myers Squibb (BMS) and its shareholders. Investors have benefited from a 31.71% increase in payouts over the past three years, even amid the challenging coronavirus-related economic period we traversed. With a modest cash payout ratio of 31.4%, BMS' dividends haven't hit the ceiling yet.
The company's business should continue to generate the money necessary to sustain its payouts despite recent headwinds. BMS is dealing with the loss of patent exclusivity for oncology medicine Revlimid, one of its most important products. But other therapies are picking up the slack. Sales for cancer drug Opdivo continue to grow as it earns label expansions. Blood thinner Eliquis also continues to enjoy positive momentum.
Most notably, BMS' research and development efforts are bearing fruit, with several new approvals already in the past year and a half and more on the way. The drugmaker's new product portfolio includes cancer medicines Opdualag and Breyanzi, along with Camzyos, which treats a heart-related disorder. There is more where that came from, too. BMS expects $10 billion to $13 billion in revenue from its lineup of newer drugs by 2025.
Admittedly, the drugmaker's 2% year over year revenue growth to $11.9 billion in Q2 doesn't look impressive. But BMS is just entering a new cycle, with brand-new products that will drive top-line growth to higher levels. And, of course, the pharma giant will continue with its capital allocation strategy, developing new innovative therapies and rewarding shareholders through dividend increases. That's why it's a good pick for income-seeking investors.
Huge profits to fund acquisitions and dividend growth
David Jagielski (Pfizer): One of the dividend stocks I'm most confident about right now is Pfizer. The COVID-19 vaccine maker is rolling in the dough. It has been generating enough cash to pursue acquisitions, buy back shares, and still pay a dividend. And Pfizer's dividend yield of 3.2% is twice that of the S&P 500 average of 1.6%.
The drugmaker released its latest earnings numbers last month. Second-quarter diluted earnings per share of $1.73 grew by an incredible 77% year over year. To put that into perspective, consider that Pfizer pays $1.60 per share in dividends over the course of a full year. It made enough in profit to cover the entire year of dividends during just a single quarter.
The level of profit that Pfizer is generating today may not remain this high, especially if COVID-related revenue starts to decline. The company expects half of its top line in 2022 to come from its COVID-19 vaccine and pill. However, Pfizer has been acquiring multiple businesses in the past year that can help accelerate its growth in the future (including ReViral, Arena Pharmaceuticals, and Trillium Therapeutics).
Pfizer's business looks unstoppable given the growth potential it has. Its dividend is likely to keep rising as a result of this growth. Even with a slowdown in revenue, there could still be plenty of room for the company to not just pay but also boost its dividend payments.
What I like about Pfizer's approach is that it hasn't been aggressive with respect to dividend increases, giving itself plenty of breathing room and avoiding a situation where the company's payout is high and potentially burdensome. That being said, the payout has still risen by 25% over the past five years, averaging a compound annual growth rate of 4.6%.
If you're a long-term investor who values dividends, I think Pfizer is one of the best stocks you can buy right now.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. 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. | Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Pfizer (NYSE: PFE). Winning over the long term Keith Speights (AbbVie): If you only focused on the short term, you might turn up your nose at AbbVie. AbbVie also faces biosimilar competition in the U.S. for its top-selling drug, Humira, beginning next year. | Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Pfizer (NYSE: PFE). Winning over the long term Keith Speights (AbbVie): If you only focused on the short term, you might turn up your nose at AbbVie. AbbVie also faces biosimilar competition in the U.S. for its top-selling drug, Humira, beginning next year. | AbbVie ranks as a Dividend King, with 50 consecutive years of dividend increases under its belt. Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Pfizer (NYSE: PFE). Winning over the long term Keith Speights (AbbVie): If you only focused on the short term, you might turn up your nose at AbbVie. | Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Pfizer (NYSE: PFE). Winning over the long term Keith Speights (AbbVie): If you only focused on the short term, you might turn up your nose at AbbVie. AbbVie also faces biosimilar competition in the U.S. for its top-selling drug, Humira, beginning next year. |
23194.0 | 2022-08-05 00:00:00 UTC | 3 Reasons Why AbbVie Stock Could Be Approaching a Make or Break Moment | ABBV | https://www.nasdaq.com/articles/3-reasons-why-abbvie-stock-could-be-approaching-a-make-or-break-moment | nan | nan | After the market's tepid reception to AbbVie's (NYSE: ABBV) latest earnings report on July 29, the drugmaker appears to face a fork in the road ahead. Down one path is the potential decline of market share for its most profitable medicine and a further drop in the stock price. The other potential path is far sunnier with the company seeing success in shoring up its pipeline via new medicines, paving the way for slow but accelerating growth ahead.
So which way will AbbVie's fortunes go? The answer depends on three issues creating the fork in the road in the first place.
1. Its new aesthetics segment just stumbled
The first reason AbbVie is approaching a critical point is that one of its engines of growth is sputtering -- more or less right out of the gate. In mid-2020, the company acquired Allergan, picking up a handful of aesthetic therapies like the popular dermal fillers Botox and Juvederm.
AbbVie's entire aesthetics segment is fairly modest, worth only $1.3 billion compared with the company's total revenue of about $14.5 billion, and AbbVie needs all the growth it can get. Sales of Allergan's medicines have helped AbbVie continue to grow its top line even as revenue from its biggest moneymaker, the psoriatic arthritis drug Humira, has started to taper due to competition from generics in international markets. And tapering in the domestic market could start as soon as next year, compressing profit margins further.
Per AbbVie's Q2 earnings update, sales from aesthetics therapies dipped by 4.4% year-over-year on a reported basis as a result of Juvederm, which saw its revenue crash by 19.5% to $344 million. Management blames the sharp drop on pandemic-related disruptions in the Chinese market, and also the cessation of aesthetic sales to Russia.
While these reasons are beyond AbbVie's control, that's of no comfort to shareholders. China's fight against the coronavirus probably won't likely end anytime soon, nor will sanctions on Russia, so investors should expect the aesthetics segment to continue struggling. And that'll make top-line growth increasingly challenging over the next couple of years if Humira income recedes faster than anticipated.
2. Humira sales are holding up, but it could be temporary
If Humira's pace of decline levels off in international markets, that should give more time for sales of the drug's intended replacements, Rinvoq and Skyrizi, to scale up. The good news for AbbVie shareholders is that total revenue from Humira rose by 5.8% to reach more than $5.3 billion in Q2 even as biosimilar medicines gobble up market share outside the U.S.
Internationally, Humira sales fell by 13.8% year-over-year in the quarter, which is actually a slower pace of retreat compared to the contraction of 22.6% in Q1.But if the drug's losses accelerate, it might offset the expected growth from Skyrizi and Rinvoq, which as a pair are slated to make around $7.5 billion this year. And if that results in top-line shrinkage, it'll be quite damaging to the stock.
3. Revenue from Skyrizi and Rinvoq is ramping up rapidly
The final reason why AbbVie is approaching a make or break point is that its strategy of using the newer drugs Rinvoq and Skyrizi to replace Humira appears to be working quite well so far. By 2025, management expects the two drugs to make more than $15 billion annually, meaning that they'll outpace Humira at its peak.
AbbView believes Skyrizi and Rinvoq will be up to the task of replacing Humira's contribution to AbbVie's total revenue. In Q2, Skyrizi sales grew by 85.9% year-over-year and Rinvoq sales by 56.3%, and as a pair they brought in more than $1.8 billion. It won't take too many more quarters like that for the duo to catch up to where Humira is today.
That's an obvious point in favor of AbbVie stock in the medium term as well as long term. Of course, if biosimilars of Humira end up being effective enough to crimp international demand for the drug's replacements, the situation will be a lot less favorable -- but there's no evidence to suggest that'll happen as of yet.
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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. | After the market's tepid reception to AbbVie's (NYSE: ABBV) latest earnings report on July 29, the drugmaker appears to face a fork in the road ahead. Sales of Allergan's medicines have helped AbbVie continue to grow its top line even as revenue from its biggest moneymaker, the psoriatic arthritis drug Humira, has started to taper due to competition from generics in international markets. So which way will AbbVie's fortunes go? | Per AbbVie's Q2 earnings update, sales from aesthetics therapies dipped by 4.4% year-over-year on a reported basis as a result of Juvederm, which saw its revenue crash by 19.5% to $344 million. Revenue from Skyrizi and Rinvoq is ramping up rapidly The final reason why AbbVie is approaching a make or break point is that its strategy of using the newer drugs Rinvoq and Skyrizi to replace Humira appears to be working quite well so far. After the market's tepid reception to AbbVie's (NYSE: ABBV) latest earnings report on July 29, the drugmaker appears to face a fork in the road ahead. | AbbVie's entire aesthetics segment is fairly modest, worth only $1.3 billion compared with the company's total revenue of about $14.5 billion, and AbbVie needs all the growth it can get. Revenue from Skyrizi and Rinvoq is ramping up rapidly The final reason why AbbVie is approaching a make or break point is that its strategy of using the newer drugs Rinvoq and Skyrizi to replace Humira appears to be working quite well so far. After the market's tepid reception to AbbVie's (NYSE: ABBV) latest earnings report on July 29, the drugmaker appears to face a fork in the road ahead. | After the market's tepid reception to AbbVie's (NYSE: ABBV) latest earnings report on July 29, the drugmaker appears to face a fork in the road ahead. So which way will AbbVie's fortunes go? Its new aesthetics segment just stumbled The first reason AbbVie is approaching a critical point is that one of its engines of growth is sputtering -- more or less right out of the gate. |
23195.0 | 2022-08-05 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-0 | 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 -8.6%, compared to the Zacks S&P 500 composite's +8.7% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 4.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
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 $3.59 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.90 points to a change of +9.5% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% 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
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 $14.98 billion indicates a year-over-year change of +4.5%. For the current and next fiscal years, $59.23 billion and $55.92 billion estimates indicate +5.4% and -5.6% 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
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has 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 lost 4.5%. | 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 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 lost 4.5%. | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 4.5%. For the current quarter, AbbVie is expected to post earnings of $3.59 per share, indicating a change of +7.8% from the year-ago quarter. | For the next fiscal year, the consensus earnings estimate of $11.80 indicates a change of -15.1% from what AbbVie is expected to report a year ago. 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 lost 4.5%. |
23196.0 | 2022-08-05 00:00:00 UTC | Ironwood (IRWD) Q2 Earnings Miss, Keeps 2022 Sales Guidance | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-q2-earnings-miss-keeps-2022-sales-guidance | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported second-quarter 2022 adjusted earnings of 21 cents per share, missing the Zacks Consensus Estimate of 31 cents. The company had reported adjusted earnings of 34 cents per share in the year-ago quarter.
Total revenues of $97.2 million missed the Zacks Consensus Estimate of $99 million. Revenues were down 6.5% year over year.
Shares of Ironwood were down 1.83% after-hours on Aug 4, following lower-than-expected earnings. The company’s shares have declined 1.6% so far this year compared to the industry’s decrease of 19.5%.
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 $248.35 million in the United States, down 4.2% 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 $94.5 million in the second quarter, down 6% year over year.
Per data provided by IQVIA, the prescription volume for Linzess capsules in the second quarter increased about 9% year over year. The prescription volume growth was driven by strong demand for Linzess, partially offset by the lower net price of the drug and inventory channel fluctuations.
The company recorded $2.7 million in royalties and other revenues compared with $3.7million in the year-ago period.
We note that 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 11.4% year over year to $30.1 million during the second quarter. Research & development expenses declined 5.8% year over year to $11.5 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 Update
Ironwood is progressing with the development of its linaclotide clinical program for pediatric patients. The data readout from a late-stage study evaluating linaclotide in functional constipation patients aged 6 to 17 years is expected in the second half of 2022.
Ironwood’s two early-stage studies are evaluating 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 #5 (Strong Sell).
A better-ranked stock in the same sector is Ionis Pharmaceuticals IONS, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ionis’ loss estimates for 2022 have widened from $2.40 to $2.44 in the past 30 days. Shares of Ionis have returned 42.2% year to date. Earnings of IONS beat estimates in two of the last four quarters and missed the mark on the other two occasions. VRCA delivered an earnings surprise of 24.35%, 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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Ionis Pharmaceuticals, Inc. (IONS): 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. | 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 $248.35 million in the United States, down 4.2% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | 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 $248.35 million in the United States, down 4.2% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | 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 $248.35 million in the United States, down 4.2% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | 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 $248.35 million in the United States, down 4.2% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23197.0 | 2022-08-04 00:00:00 UTC | Notable ETF Outflow Detected - AOR, ABBV, COST, ACN | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-aor-abbv-cost-acn | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Growth Allocation ETF (Symbol: AOR) where we have detected an approximate $77.5 million dollar outflow -- that's a 3.9% decrease week over week (from 40,000,000 to 38,450,000). Among the largest underlying components of AOR, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.2%, Costco Wholesale Corp (Symbol: COST) is off about 0.4%, and Accenture plc (Symbol: ACN) is lower by about 0.2%. For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average:
Looking at the chart above, AOR's low point in its 52 week range is $46.78 per share, with $57.819 as the 52 week high point — that compares with a last trade of $50.08. 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 AOR, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.2%, Costco Wholesale Corp (Symbol: COST) is off about 0.4%, and Accenture plc (Symbol: ACN) is lower by about 0.2%. For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $46.78 per share, with $57.819 as the 52 week high point — that compares with a last trade of $50.08. 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 AOR, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.2%, Costco Wholesale Corp (Symbol: COST) is off about 0.4%, and Accenture plc (Symbol: ACN) is lower by about 0.2%. For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $46.78 per share, with $57.819 as the 52 week high point — that compares with a last trade of $50.08. 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 AOR, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.2%, Costco Wholesale Corp (Symbol: COST) is off about 0.4%, and Accenture plc (Symbol: ACN) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Growth Allocation ETF (Symbol: AOR) where we have detected an approximate $77.5 million dollar outflow -- that's a 3.9% decrease week over week (from 40,000,000 to 38,450,000). For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $46.78 per share, with $57.819 as the 52 week high point — that compares with a last trade of $50.08. | Among the largest underlying components of AOR, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.2%, Costco Wholesale Corp (Symbol: COST) is off about 0.4%, and Accenture plc (Symbol: ACN) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Growth Allocation ETF (Symbol: AOR) where we have detected an approximate $77.5 million dollar outflow -- that's a 3.9% decrease week over week (from 40,000,000 to 38,450,000). For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $46.78 per share, with $57.819 as the 52 week high point — that compares with a last trade of $50.08. |
23198.0 | 2022-08-03 00:00:00 UTC | 7 Cheap Biotech Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/7-cheap-biotech-stocks-to-buy-now-0 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Biopharmaceutical companies have been struggling since 2021 and that narrative isn’t immediately changing. However, not every firm deserves this fate. In fact, investors can find great opportunities with “cheap” biotech stocks to buy now.
There are many reasons for investor pessimism that could soon ease. For instance, drug innovation has stagnated in 2022. Companies also haven’t been able to announce as many positive clinical readouts to build confidence. These both could change in a jiffy if a few positive regulatory decisions start to trickle in. Specifically, updates on Alzheimer’s treatments and those for non-alcoholic steatohepatitis (NASH) are in demand.
Investors should also realize that many biotech stocks have been held down by factors outside of their control. Higher interest rates and persistently high inflation have been weighing on the entire market.
Importantly, the pharma industry is recession-proof and is filled with defensive stocks.
For investors looking to capitalize on a potential second-half recovery, here are some cheap biotech stocks to buy.
ACET Adicet Bio $17.50
ISEE IVERIC bio $11.45
KDNY Chinook Therapeutics $19.26
RCKT Rocket Pharmaceuticals $14.50
PLRX Pliant Therapeutics $17.30
KURA Kura Oncology $15.08
CRBU Caribou Biosciences $8.56
Adicet Bio (ACET)
Source: CI Photos / Shutterstock.com
Adicet Bio (NASDAQ:ACET) is a clinical-stage biotech company developing allogeneic gamma and delta T-cell therapies for cancer. The most advanced candidate in the pipeline is a Phase 1 asset called ADI-001. This investigational therapy is being evaluated for non-Hodgkin’s lymphoma. The company expects ADI-001 to potentially advance to a pivotal program in the first half of 2023.
Adicet Bio is developing a second candidate, ADI-002, in collaboration with Regeneron (NASDAQ:REGN) for hepatocellular carcinoma – the most common type of primary liver cancer. Its pipeline is also flush with several preclinical assets. Underlining vibrant R&D activity, the company said it expects to file one new investigational new drug (IND) application every 12-18 months.
At the end of the March quarter, the company had cash and cash equivalents of $277.9 million.
Near-term milestones on the horizon include:
Zeroing in on the recommended dose for the Phase 2 study of ADI-001.
Discussion with the FDA and European regulators regarding trial designs of two pivotal studies of ADI-001 and a potential path to support a biological license application.
Preclinical pipeline update.
Initiation of at least one potentially pivotal study of ADI-001.
IVERIC bio (ISEE)
Source: Shutterstock
IVERIC bio (NASDAQ:ISEE) is a New Jersey-based company developing treatments for retinal diseases. Its lead candidate Zimura is being developed for two indications, namely geographic atrophy and autosomal recessive Stargardt disease. It is in the advanced stage of development (Phase 3 stage) for the former indication.
A pre-clinical therapeutic candidate named IC-500 is also in clinical trials. The company is also testing out a handful of gene therapy candidates in preclinical and research stages for various kinds of retinal disorders.
The company expects its year-end cash and cash equivalents to be at $260 million to $270 million.
IVERIC bio is gearing up to report topline data from the second Phase 3 study of Zimura in September. The company is confident of reporting positive data. Pravin Dugel, president of IVERIC bio, hinted at making the treatment available to patients as quickly as possible.
Apellis Pharma (NASDAQ:APLS) has a similar drug in its pipeline for the same indication and its regulatory application has been accepted for review, with a PDUFA goal date of Nov. 26, 2023. IVERIC bio, however, could have an edge, as Apellis submitted mixed late-stage data.
Chinook Therapeutics (KDNY)
Source: motorolka / Shutterstock.com
Seattle-based Chinook Therapeutics (NASDAQ:KDNY) develops precision medicines for rare kidney diseases. Atrasentan is the company’s most advanced pipeline asset. It is currently being tested in a Phase 3 registrational trial for IgA nephropathy (IgAN) and a Phase 2 basket trial for primary glomerular diseases.
Additionally, BION-1301 is in mid-stage development for IgAN, and CHK-336 is in early-stage development for hyperoxaluria.
Chinook’s investigational therapies cater to diseases where there are large unmet needs. Citing third-party estimates, the company said annual U.S. healthcare costs driven by kidney diseases stand at over $130 billion.
The company is due to release the following data in the second half of 2022:
Additional Phase 2 data from the AFFINITY trial of Atrasentan in glomerular diseases
Data from Cohort 2 of Phase 1/2 study of BION-1301 in IgAN
Chinook had $440 million in pro forma cash as of March 31, 2022.
Rocket Pharma (RCKT)
Source: Hernan E. Schmidt / Shutterstock.com
Cranbury, New Jersey-based Rocket Pharma (NASDAQ:RCKT) is a late-stage clinical biotech developing gene therapies for rare childhood disorders with high unmet needs. Its clinical program consists of lentiviral vector (LLV)-based therapy for treating Fanconi anemia (FA), leukocyte adhesion deficiency-I (LAD-1), and pyruvate kinase deficiency (PKD).
It is also developing a AAV-based gene therapy for Danon disease, a pediatric heart failure condition. At least two of its candidates are in pivotal Phase 2 trials, suggesting they are inching closer to securing regulatory approvals.
The company has multiple readouts scheduled for the remainder of the year, including:
Topline data from Phase 2 FA study (Q3’22)
Pediatric cohort data from the Danon disease study (Q3’22)
Initiation of pivotal activities for the Phase 2 Danone disease study (Q4’22)
Preliminary Phase 1 data from the PKD study (Q4’22)
Initiation of pivotal activities for the Phase 2 PKD study (Q4’22)
Pliant Therapeutics (PLRX)
Source: Gorodenkoff / Shutterstock.com
Pliant Therapeutics (NASDAQ:PLRX) stock has defied the market-wide downturn seen since the start of the year. The stock is up nearly 30% year to date (YTD). The outperformance is primarily due to positive mid-stage data for its chronic idiopathic pulmonary fibrosis treatment PLN-74809 released earlier in July. The same candidate is also being developed for primary sclerosing cholangitis.
Along with Novartis (NYSE:NVS), Pliant Therapeutics is testing a Phase 1 asset for NASH-associated liver fibrosis. Its pre-clinical pipeline includes candidates against cancers and muscular dystrophies. The company plans IND submissions for these indications by year-end 2022.
Pliant Therapeutics boasts a strong financial position and has stated that operations are funded into mid-2024.
Following the early July jump, the stock is currently in overbought territory. Nevertheless, analysts are optimistic that the stock can gain further. The average price target for Pliant Therapeutics stock is $42.88, suggesting over 145% upside from current levels, according to TipRanks.
Kura Oncology (KURA)
Source: Photographee.eu / Shutterstock.com
Kura Oncology (NASDAQ:KURA) is a clinical-stage precision oncology company. Its pipeline consists of Ziftomenib, a Phase 1 asset it is testing for acute myeloid leukemia, and Tipifarnib, which it is testing for head and neck squamous cell carcinoma (HNSCC).
The company has a catalyst-rich second half. Key catalytic events for the period include:
Identification of the recommended dose for the Phase 2 study of Ziftomenib (Q3)
Topline data from the Phase 1 study of Ziftomenib (Q3)
Starting of two separate combo trials of Tipifarnib, one in HNSCC and another in lung cancer (Q3)
Submission of IND application for KO-2806 (Q4)
At the end of the first quarter, the company had cash, cash equivalents and investments of $480 million, providing it with runway through 2024.
Caribou Biosciences (CRBU)
Source: rafapress / Shutterstock.com
Caribou Biosciences (NASDAQ:CRBU) is a clinical-stage genome-editing specialist.
Genomic editing is a group of technologies that allow changing the DNA of an individual by adding, removing, or otherwise altering genetic material at a particular location. CRISPR-Cas9 is the most commonly used approach for this.
The company has a proprietary genome-editing platform, chRDNA, that enables superior precision to develop cell therapies. Its pipeline consists of off-the-shelf CAR-T and CAR-NK cell therapies for the treatment of hematologic malignancies and solid tumors.
One of the company’s candidates, CB-010, is in Phase 1 clinical trials. It has an ongoing collaboration with AbbVie (NYSE:ABBV) for two CAR-T programs. The agreement between the companies also vests AbbVie with the option of adding two more programs.
Analysts’ average price target for Caribou is $27.80, suggesting over 200% upside from current levels.
On the date of publication, Shanthi Rexaline 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.
The post 7 Cheap Biotech 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. | It has an ongoing collaboration with AbbVie (NYSE:ABBV) for two CAR-T programs. The agreement between the companies also vests AbbVie with the option of adding two more programs. Apellis Pharma (NASDAQ:APLS) has a similar drug in its pipeline for the same indication and its regulatory application has been accepted for review, with a PDUFA goal date of Nov. 26, 2023. | It has an ongoing collaboration with AbbVie (NYSE:ABBV) for two CAR-T programs. The agreement between the companies also vests AbbVie with the option of adding two more programs. ACET Adicet Bio $17.50 ISEE IVERIC bio $11.45 KDNY Chinook Therapeutics $19.26 RCKT Rocket Pharmaceuticals $14.50 PLRX Pliant Therapeutics $17.30 KURA Kura Oncology $15.08 CRBU Caribou Biosciences $8.56 Adicet Bio (ACET) Source: CI Photos / Shutterstock.com Adicet Bio (NASDAQ:ACET) is a clinical-stage biotech company developing allogeneic gamma and delta T-cell therapies for cancer. | It has an ongoing collaboration with AbbVie (NYSE:ABBV) for two CAR-T programs. The agreement between the companies also vests AbbVie with the option of adding two more programs. ACET Adicet Bio $17.50 ISEE IVERIC bio $11.45 KDNY Chinook Therapeutics $19.26 RCKT Rocket Pharmaceuticals $14.50 PLRX Pliant Therapeutics $17.30 KURA Kura Oncology $15.08 CRBU Caribou Biosciences $8.56 Adicet Bio (ACET) Source: CI Photos / Shutterstock.com Adicet Bio (NASDAQ:ACET) is a clinical-stage biotech company developing allogeneic gamma and delta T-cell therapies for cancer. | It has an ongoing collaboration with AbbVie (NYSE:ABBV) for two CAR-T programs. The agreement between the companies also vests AbbVie with the option of adding two more programs. ACET Adicet Bio $17.50 ISEE IVERIC bio $11.45 KDNY Chinook Therapeutics $19.26 RCKT Rocket Pharmaceuticals $14.50 PLRX Pliant Therapeutics $17.30 KURA Kura Oncology $15.08 CRBU Caribou Biosciences $8.56 Adicet Bio (ACET) Source: CI Photos / Shutterstock.com Adicet Bio (NASDAQ:ACET) is a clinical-stage biotech company developing allogeneic gamma and delta T-cell therapies for cancer. |
23199.0 | 2022-08-03 00:00:00 UTC | Famed "Big Short" Investor Loves This Multibillion-Dollar Company -- Should You? | ABBV | https://www.nasdaq.com/articles/famed-big-short-investor-loves-this-multibillion-dollar-company-should-you | nan | nan | Michael Burry rose to fame by calling the 2008 housing bubble, as documented in the hit movie The Big Short. More recently, he reentered the spotlight by buying into Gamestop before it became a meme stock. Taking a hard turn from such dramatic holdings, pharmaceutical stalwart Bristol Myers Squibb (NYSE: BMY) is now one of Burry's Scion Asset Management's top holdings. Let's look into a few reasons why the famed investor might be holding and one big reason why it might not be for you.
Two future blockbusters already approved
While $10-billion blockbuster Eliquis will likely anchor sales for the next few years, the company has multiple drugs in which it sees multibillion-dollar potential. And this vision may be starting to come to fruition as sales of its new product category are up 38% sequentially for the quarter, to $482 million.
One of these hopeful new compounds, cancer-fighting Opdualag, is a combination of Bristol's hit drug Opdivo and another monoclonal antibody. Opdualag has come out hot, generating $58 million in its first full quarter on the market. With the initiation of several late-stage trials for Opdualag in large markets such as colorectal and lung cancer, it is clear that the pharma giant is hoping the combination therapy picks up where blockbuster Opdivo will leave off in 2028 when its patent is set to expire.
The other approved therapy that has the company excited is Camzyos. The drug was cleared by the FDA in April for a condition called hypertrophic cardiomyopathy, where portions of the heart become abnormally enlarged, making it difficult for blood to flow out of the heart. Studies have shown meaningful improvements in symptoms, functional status, and quality of life by reducing the obstruction of blood flow from the heart when taking Camzyos.
Obtained through the MyoKardia buyout in October 2020, its initial market is a small one. With only an estimated 35,000 patients across the European Union, U.S., and Japan, the real prize is the heart failure market. A phase 2 study on a subset of heart failure patients is set to report results in April 2023, a market of just over 2 million patients in the U.S. alone. If those results are positive, the addressable market for Camzyos will skyrocket overnight.
More billion-dollar dreams
Burry's healthcare company of choice also has high hopes for its drug, deucravacitinib, targeting auto-immune diseases such as psoriasis and lupus. The company believes it has superior efficacy to current oral standards of care in moderate to severe psoriasis. With strong data in hand for its first potential indication, Bristol is aiming for FDA approval in September 2022. Investors can expect a steady stream of data for the investigational compound in other auto-immune diseases such as lupus, psoriatic arthritis, and Crohn's disease in the next three years. If results are positive, management could easily be sitting on yet another multibillion-dollar drug.
With Eliquis being wildly successful, it would make sense that Bristol would go to the anti-coagulant market again. The phase 2 investigational drug milvexian is being evaluated to take over both the anti-platelet market -- think Plavix and its $7 billion in revenue for 2011 -- as well as the oral anti-coagulant market dominated by Eliquis, namely atrial fibrillation, and blood clots. Management believes this to be at least a $5 billion opportunity -- not a bad encore.
Why investors should reconsider
Unfortunately for shareholders, Bristol has struggled to track the market over any meaningful amount of time. Even after accounting for dividend reinvesting, the pharma giant has returned only 178% versus 262% for the S&P 500 since August 2012. That trend holds even if you go back 25 years, with Bristol trailing 368% versus 563% for the index. This amounts to just over a paltry 6%, including reinvested dividends for the pharmaceutical giant. Even over the last five years, Bristol still lags the market by 53% versus 81%.
Despite the pain of the markets recently, Bristol might be experiencing its own issues -- a patent cliff. Blockbuster Revlimid, which generated $12.8 billion in fiscal year 2021, is beginning to see sales erode, with revenue expected to contract to the $9 billion to $9.5 billion range this year. Then there is Eliquis and Opdivo. With $10.76 billion and $7.52 billion, respectively, in revenue in FY 2021, both of these cash cows are tentatively set to come off-patent in 2028.
Revlimid, Eliquis, and Opdivo combined for roughly two-thirds of the company's revenue in 2021. Losses that large put a lot of pressure on its pipeline, which likely means Bristol has its eyes open to potential acquisitions that can immediately contribute to the bottom line. And while Bristol had $13.2 billion in cash at the end of Q2, it is competing with other cash-rich heavyweights that have publicly stated their aspirations for M&A activity.
Perhaps most importantly, Bristol still looks expensive to its peers, with a 25.6 price-to-earnings (P/E) ratio. Compare this to other healthcare behemoths AbbVie, Abbott, and Amgen, all of which have lower P/E ratios and have beaten the S&P over both the last 10 and 25 years, including dividends. While Bristol has a promising pipeline, it has a history of lagging the market, not to mention its upcoming patent cliffs. Investors may want to think twice before following the legendary Burry into this historically underperforming pharmaceutical company.
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Patrick Bafuma has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Compare this to other healthcare behemoths AbbVie, Abbott, and Amgen, all of which have lower P/E ratios and have beaten the S&P over both the last 10 and 25 years, including dividends. With the initiation of several late-stage trials for Opdualag in large markets such as colorectal and lung cancer, it is clear that the pharma giant is hoping the combination therapy picks up where blockbuster Opdivo will leave off in 2028 when its patent is set to expire. Studies have shown meaningful improvements in symptoms, functional status, and quality of life by reducing the obstruction of blood flow from the heart when taking Camzyos. | Compare this to other healthcare behemoths AbbVie, Abbott, and Amgen, all of which have lower P/E ratios and have beaten the S&P over both the last 10 and 25 years, including dividends. One of these hopeful new compounds, cancer-fighting Opdualag, is a combination of Bristol's hit drug Opdivo and another monoclonal antibody. A phase 2 study on a subset of heart failure patients is set to report results in April 2023, a market of just over 2 million patients in the U.S. alone. | Compare this to other healthcare behemoths AbbVie, Abbott, and Amgen, all of which have lower P/E ratios and have beaten the S&P over both the last 10 and 25 years, including dividends. The phase 2 investigational drug milvexian is being evaluated to take over both the anti-platelet market -- think Plavix and its $7 billion in revenue for 2011 -- as well as the oral anti-coagulant market dominated by Eliquis, namely atrial fibrillation, and blood clots. Even over the last five years, Bristol still lags the market by 53% versus 81%. | Compare this to other healthcare behemoths AbbVie, Abbott, and Amgen, all of which have lower P/E ratios and have beaten the S&P over both the last 10 and 25 years, including dividends. A phase 2 study on a subset of heart failure patients is set to report results in April 2023, a market of just over 2 million patients in the U.S. alone. Blockbuster Revlimid, which generated $12.8 billion in fiscal year 2021, is beginning to see sales erode, with revenue expected to contract to the $9 billion to $9.5 billion range this year. |
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