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23200.0 | 2022-08-03 00:00:00 UTC | Is Invesco Dynamic Pharmaceuticals ETF (PJP) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-invesco-dynamic-pharmaceuticals-etf-pjp-a-strong-etf-right-now-3 | nan | nan | The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Health Care ETFs 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $331.53 million, this makes it one of the average sized ETFs in the Health Care ETFs. PJP is managed by Invesco. 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.
Cost & Other Expenses
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 PJP are 0.58%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.03%.
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.
PJP's heaviest allocation is in the Healthcare sector, which is about 100% of the portfolio.
When you look at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of the fund's 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
The ETF has lost about -7.44% so far this year and is down about -7.50% in the last one year (as of 08/03/2022). In the past 52-week period, it has traded between $69.08 and $83.54.
The ETF has a beta of 0.71 and standard deviation of 21.77% 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 is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index and the VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index. IShares U.S. Pharmaceuticals ETF has $441.64 million in assets, VanEck Pharmaceutical ETF has $556.52 million. IHE has an expense ratio of 0.42% and PPH charges 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
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Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
Johnson & Johnson (JNJ): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
VanEck Pharmaceutical ETF (PPH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When you look at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of the fund's total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. | When you look at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of the fund's total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports | When you look at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of the fund's total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Health Care ETFs category of the market. | When you look at individual holdings, Eli Lilly & Co (LLY) accounts for about 5.80% of the fund's total assets, followed by Abbvie Inc (ABBV) and Johnson & Johnson (JNJ). AbbVie Inc. (ABBV): Free Stock Analysis Report The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Health Care ETFs category of the market. |
23201.0 | 2022-08-03 00:00:00 UTC | Medicare Drug Pricing Changes Could Be Coming: Time to Ditch Pharma Stocks? | ABBV | https://www.nasdaq.com/articles/medicare-drug-pricing-changes-could-be-coming%3A-time-to-ditch-pharma-stocks | nan | nan | Two types of stocks have performed well overall so far this year as the broader market has tanked. It makes sense that energy stocks would be up, considering the high prices of oil and natural gas. Several big pharmaceutical companies have also beaten the market in 2022 as investors viewed them as safe havens.
However, those particular havens might not be so safe in the not-too-distant future. Major Medicare drug pricing changes could be coming. Is it time to ditch pharma stocks?
Manchin on the hill
The Inflation Reduction Act of 2022 -- a new piece of compromise legislation hammered out by Senate Majority Leader Chuck Schumer of New York and moderate Democratic Sen. Joe Manchin of West Virginia is a smaller successor to President Joe Biden's Build Back Better Act. The legislation still attempts to address a wide variety of issues, including climate change, debt reduction, inflation, and high prescription drug costs. And Manchin's ideas on how to reduce the costs of prescription drugs have been floating around on Capitol Hill for years.
Currently, private health insurers negotiate prices with drugmakers, but the Center for Medicare and Medicaid Services (CMS) is barred from doing so for Medicare. Instead, Medicare pays 106% of the average sales price obtained by those smaller private organizations.
Manchin wants to require the Center for Medicare and Medicaid Services to negotiate prices with biopharmaceutical companies for several especially costly drugs. His plan would also require drugmakers to provide rebates to Medicare if their drug price increases are higher than the inflation rate.
The secretary of Health and Human Services would be responsible for identifying the drugs for which price negotiations would be conducted. Beginning in 2026, 10 of the drugs for which Medicare spends the most would be on the list. In 2027 and 2028, the number would increase to 15. In 2029 and afterward, CMS would negotiate prices for 20 drugs.
Big pharma backlash
As you might expect, big pharmaceutical companies aren't happy about the proposed Medicare drug pricing changes.
Pfizer (NYSE: PFE) CEO Albert Bourla stated in the company's second-quarter conference call, "In reality, it's not a price negotiation because they are forcing their will by implementing a 95% tax, according to previous guidance. That will cost the industry significant [sic] -- we estimate $270 billion over 10 years."
Of the 10 drugs that Medicare Part D spent the most on in 2020, two were marketed by Pfizer: blood thinner Eliquis -- which it co-markets with Bristol Myers Squibb (NYSE: BMY) -- and breast cancer drug Ibrance.
AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market the costliest drug for Medicare Part D in 2020 -- cancer treatment Imbruvica. Unsurprisingly, AbbVie CEO Rick Gonzalez said on his company's Q2 call that the proposed bill "has far more negatives than it has positives in it." He added that "the long-term implications of this bill are pretty significant" for the biopharmaceutical industry.
Merck's (NYSE: MRK) cancer immunotherapy Keytruda was Medicare Part B's costliest drug in 2020. The company's president, Rob Davis, said during its Q2 call that management believes that the ability of Medicare to negotiate drug prices "will be highly chilling on future innovation."
Ditch time?
With pharma executives worried about the potential impact of the Inflation Reduction Act, should investors worry too? Is the best move to avoid pharma stocks? I think any immediate reaction would be premature.
For one thing, the passage of the proposed legislation in its current form isn't a slam dunk. If even one Democrat opposes it in the Senate, it will fail. Even if the bill does pass, there's still a possibility that a future president and Congress could make changes to the law before the Medicare changes take effect in 2026.
Perhaps pharma stocks will be less attractive because of these Medicare drug pricing changes. But I wouldn't bet against them just yet.
10 stocks we like better than Pfizer
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Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. The Motley Fool has positions in and recommends Bristol Myers Squibb and Merck & Co. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market the costliest drug for Medicare Part D in 2020 -- cancer treatment Imbruvica. Unsurprisingly, AbbVie CEO Rick Gonzalez said on his company's Q2 call that the proposed bill "has far more negatives than it has positives in it." See the 10 stocks *Stock Advisor returns as of July 27, 2022 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market the costliest drug for Medicare Part D in 2020 -- cancer treatment Imbruvica. Unsurprisingly, AbbVie CEO Rick Gonzalez said on his company's Q2 call that the proposed bill "has far more negatives than it has positives in it." See the 10 stocks *Stock Advisor returns as of July 27, 2022 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market the costliest drug for Medicare Part D in 2020 -- cancer treatment Imbruvica. Unsurprisingly, AbbVie CEO Rick Gonzalez said on his company's Q2 call that the proposed bill "has far more negatives than it has positives in it." See the 10 stocks *Stock Advisor returns as of July 27, 2022 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market the costliest drug for Medicare Part D in 2020 -- cancer treatment Imbruvica. Unsurprisingly, AbbVie CEO Rick Gonzalez said on his company's Q2 call that the proposed bill "has far more negatives than it has positives in it." See the 10 stocks *Stock Advisor returns as of July 27, 2022 Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. |
23202.0 | 2022-08-03 00:00:00 UTC | 1 Reason to Buy Pfizer Stock After Earnings, and 1 Reason to Sell | ABBV | https://www.nasdaq.com/articles/1-reason-to-buy-pfizer-stock-after-earnings-and-1-reason-to-sell | nan | nan | The year hasn't been kind to equities so far. And although many drugmakers are escaping the sell-off, Pfizer (NYSE: PFE) isn't one of them. The pharma giant is performing more or less on par with the broader market year to date. Thankfully, Pfizer's most recent quarterly update showed some very encouraging signs.
However, there are also reasons to worry about the future of the healthcare company. Let's consider one earnings-related reason Pfizer might be a buy -- and one reason it might not be.
PFE data by YCharts
Reason to buy: The COVID-19 portfolio is performing well
Pfizer has made a fortune over the past couple of years thanks to its coronavirus-related work. The company is still benefiting from these efforts in a big way. During the second quarter, the drugmaker's revenue rose by 53% year over year on an operational basis to $27.7 billion. According to management, Pfizer recorded its largest-ever quarterly sales during this period, and it owed it primarily to its COVID-19 lineup.
Pfizer's sales from its coronavirus vaccine, Comirnaty, came in at $8.8 billion, 20% higher than the year-ago period. The company's coronavirus therapy, Paxlovid, registered $8.1 billion in sales (year-over-year comparisons don't apply here since it earned authorization in December). By themselves, Paxlovid and Comirnaty accounted for well over half of Pfizer's total revenue.
Reason to sell: The rest of Pfizer's lineup isn't that impressive
While Pfizer's coronavirus lineup is currently unstoppable, the rest of the company's portfolio is less impressive. During the second quarter, the drugmaker's non-coronavirus-related revenue grew by a meager 1% year over year. Pfizer's lineup is facing several problems, including headwinds related to Xeljanz, an immunology drug. Xeljanz is part of a class of drugs known as JAK inhibitors.
Last year, Pfizer released data from a post-marketing study that found that Xeljanz was associated with higher rates of cardiovascular events and cancer than TNF inhibitors, a category of medicines that includes AbbVie's Humira.
The results from this study, coupled with the decision by regulators to add a warning related to these risks to Xeljanz's label (and that of other JAK inhibitors), are hindering the medicine's growth. In the second quarter, Xeljanz's sales dropped by 24% year over year to $430 million. Revenue from immunosuppressant Enbrel also dropped by 10% year over year to $257 million, likely due to stiffer competition, a factor that also impacted its sales during the first quarter.
Pfizer does have some solid non-coronavirus-related performers, including Eliquis. During the second quarter, sales of the anticoagulant increased by 23% year over year to $1.7 billion. But overall, the company is barely managing to grow its sales outside of its coronavirus lineup. That could become a problem if sales of its COVID-19 products drop precipitously after this year.
Is Pfizer stock a buy?
In my view, the market is still underestimating Pfizer. First, the company will continue to benefit from Paxlovid and Comirnaty. COVID-19 won't (unfortunately) suddenly disappear out of thin air after this year. Even if the demand for products to prevent or treat the disease decreases, Paxlovid and Comirnaty could continue to contribute meaningfully to Pfizer's top line for a long time.
Second, while the rest of its lineup isn't impressive, that is something pharmaceutical companies sometimes deal with due to increased competition, patent cliffs, or other factors. But drugmakers typically don't have the benefit of growing their sales at the rate at which Pfizer's are increasing when they face such headwinds.
The important thing is whether the company in question can navigate these issues. Having a solid pipeline and plenty of money to pour into research and development help -- and Pfizer has both. The company's cash balance soared as a result of its success in the coronavirus market.
PFE Free Cash Flow data by YCharts
Pfizer has been active in the acquisition realm and plans to continue down that path. That should help strengthen its already solid pipeline, which boasts over 90 clinical trials. Pfizer expects up to 15 new approvals within the next 18 months. Things could go wrong with some of its current programs. But the company has the tools it needs to launch several new potential blockbusters in the next five years. That's why investors should scoop up the company's shares while they are down.
10 stocks we like better than Pfizer
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year, Pfizer released data from a post-marketing study that found that Xeljanz was associated with higher rates of cardiovascular events and cancer than TNF inhibitors, a category of medicines that includes AbbVie's Humira. PFE data by YCharts Reason to buy: The COVID-19 portfolio is performing well Pfizer has made a fortune over the past couple of years thanks to its coronavirus-related work. The results from this study, coupled with the decision by regulators to add a warning related to these risks to Xeljanz's label (and that of other JAK inhibitors), are hindering the medicine's growth. | Last year, Pfizer released data from a post-marketing study that found that Xeljanz was associated with higher rates of cardiovascular events and cancer than TNF inhibitors, a category of medicines that includes AbbVie's Humira. PFE data by YCharts Reason to buy: The COVID-19 portfolio is performing well Pfizer has made a fortune over the past couple of years thanks to its coronavirus-related work. Reason to sell: The rest of Pfizer's lineup isn't that impressive While Pfizer's coronavirus lineup is currently unstoppable, the rest of the company's portfolio is less impressive. | Last year, Pfizer released data from a post-marketing study that found that Xeljanz was associated with higher rates of cardiovascular events and cancer than TNF inhibitors, a category of medicines that includes AbbVie's Humira. PFE data by YCharts Reason to buy: The COVID-19 portfolio is performing well Pfizer has made a fortune over the past couple of years thanks to its coronavirus-related work. Reason to sell: The rest of Pfizer's lineup isn't that impressive While Pfizer's coronavirus lineup is currently unstoppable, the rest of the company's portfolio is less impressive. | Last year, Pfizer released data from a post-marketing study that found that Xeljanz was associated with higher rates of cardiovascular events and cancer than TNF inhibitors, a category of medicines that includes AbbVie's Humira. In the second quarter, Xeljanz's sales dropped by 24% year over year to $430 million. During the second quarter, sales of the anticoagulant increased by 23% year over year to $1.7 billion. |
23203.0 | 2022-08-03 00:00:00 UTC | Allegan Aesthetics Of AbbVie Gets FDA Approval For Juvederm Volux XC For Jawline Treatment | ABBV | https://www.nasdaq.com/articles/allegan-aesthetics-of-abbvie-gets-fda-approval-for-juvederm-volux-xc-for-jawline-treatment | nan | nan | (RTTNews) - AbbVie Co.'s (ABBV) Allergan Aesthetics Wednesday announced FDA approval for its Juvederm Volux XC for improvement of jawline in adults, with moderate to a severe loss of jawline definition.
Juvederm helps in cohesivity and lift capacity to create an improved jawline that appears more defined in real life.
The company noted that in the pivotal clinical study Juvederm was found to effectively improve jawline definition at six months. Participants reported satisfaction using with the appearance of their lower face and jawline through 12 months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Co.'s (ABBV) Allergan Aesthetics Wednesday announced FDA approval for its Juvederm Volux XC for improvement of jawline in adults, with moderate to a severe loss of jawline definition. Juvederm helps in cohesivity and lift capacity to create an improved jawline that appears more defined in real life. The company noted that in the pivotal clinical study Juvederm was found to effectively improve jawline definition at six months. | (RTTNews) - AbbVie Co.'s (ABBV) Allergan Aesthetics Wednesday announced FDA approval for its Juvederm Volux XC for improvement of jawline in adults, with moderate to a severe loss of jawline definition. Juvederm helps in cohesivity and lift capacity to create an improved jawline that appears more defined in real life. The company noted that in the pivotal clinical study Juvederm was found to effectively improve jawline definition at six months. | (RTTNews) - AbbVie Co.'s (ABBV) Allergan Aesthetics Wednesday announced FDA approval for its Juvederm Volux XC for improvement of jawline in adults, with moderate to a severe loss of jawline definition. The company noted that in the pivotal clinical study Juvederm was found to effectively improve jawline definition at six months. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Co.'s (ABBV) Allergan Aesthetics Wednesday announced FDA approval for its Juvederm Volux XC for improvement of jawline in adults, with moderate to a severe loss of jawline definition. Juvederm helps in cohesivity and lift capacity to create an improved jawline that appears more defined in real life. The company noted that in the pivotal clinical study Juvederm was found to effectively improve jawline definition at six months. |
23204.0 | 2022-08-02 00:00:00 UTC | Analysts Anticipate 15% Gains Ahead For MGV | ABBV | https://www.nasdaq.com/articles/analysts-anticipate-15-gains-ahead-for-mgv | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Mega Cap Value ETF (Symbol: MGV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $114.96 per unit.
With MGV trading at a recent price near $100.29 per unit, that means that analysts see 14.63% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Although WFC has traded at a recent price of $43.54/share, the average analyst target is 25.09% higher at $54.46/share. Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. Below is a twelve month price history chart comparing the stock performance of WFC, ABBV, and ABT:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63%
Wells Fargo & Co WFC $43.54 $54.46 25.09%
AbbVie Inc ABBV $140.22 $165.20 17.81%
Abbott Laboratories ABT $109.52 $127.15 16.10%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63% Wells Fargo & Co WFC $43.54 $54.46 25.09% AbbVie Inc ABBV $140.22 $165.20 17.81% Abbott Laboratories ABT $109.52 $127.15 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. | Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63% Wells Fargo & Co WFC $43.54 $54.46 25.09% AbbVie Inc ABBV $140.22 $165.20 17.81% Abbott Laboratories ABT $109.52 $127.15 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Below is a twelve month price history chart comparing the stock performance of WFC, ABBV, and ABT: Below is a summary table of the current analyst target prices discussed above: | Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63% Wells Fargo & Co WFC $43.54 $54.46 25.09% AbbVie Inc ABBV $140.22 $165.20 17.81% Abbott Laboratories ABT $109.52 $127.15 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. |
23205.0 | 2022-08-02 00:00:00 UTC | These Blue-Chip Stocks Seem Attractive at Current Levels | ABBV | https://www.nasdaq.com/articles/these-blue-chip-stocks-seem-attractive-at-current-levels | nan | nan | Despite the strong recovery in the U.S. stock market in July, investors remain wary of sky-high inflation and macro uncertainty. During these challenging times, several investors consider blue-chip stocks to be safer bets. Blue-chip stocks are stocks of large, well-established companies that have a solid track record, and generally offer steadily growing dividends. Using the TipRanks Stock Comparison Tool, we placed AbbVie, 3M, and Microsoft against each other to pick the blue-chip stock that Wall Street analysts find more favorable at current levels.
AbbVie (NYSE: ABBV)
Biopharma company AbbVie recently reported better-than-anticipated adjusted earnings of $3.37 per share (up 11.2% year-over-year) for the second quarter. Revenue increased 4.5% to $14.6 billion but fell short of expectations.
Abbvie’s blockbuster immunology drug Humira is losing its exclusivity in the U.S. next year. Investors are keenly looking for strength in other categories, which can offset the expected decline in Humira’s revenue when the drug faces competition from biosimilars. Humira’s Q2 revenue increased nearly 6% to $5.4 billion, but revenue from AbbVie's hematologic oncology portfolio and aesthetics line fell 9.1% and 4.4%, respectively. Meanwhile, revenue from AbbVie’s neuroscience portfolio surged 14%.
Piper Sandler analyst Christopher Raymond noted that AbbVie missed revenue expectations for the second straight quarter, which doesn’t look good as the company is generally considered a safe haven stock both within the sector and in a recessionary backdrop. However, Raymond thinks that AbbVie should be given benefit of the doubt, as a “look under the hood” indicates a possible revenue reacceleration in the second half of the year.
Based on his investment thesis, Raymond lowered his price target for AbbVie to $155 from $160, but maintained a Buy rating.
With nine Buys, six Holds, and one Sell, the Street has a Moderate Buy consensus rating for AbbVie stock. The average price target of $160.94 implies 14.78% upside potential from current levels.
3M (NYSE: MMM)
Industrial conglomerate 3M’s second-quarter sales declined 3% to $8.7 billion. Adjusted EPS fell nearly 10% to $2.48 but still exceeded analysts’ expectations. The company lowered its full-year guidance due to currency headwinds and macro uncertainty.
3M’s Q2 results were overshadowed by certain key updates that it provided. The company announced its decision to spin off its Health Care business into a standalone company by the end of 2023. 3M intends to retain a 19.9% stake in the new company.
3M also announced that its subsidiary Aearo Technologies, which produces Combat Arms Earplugs, has filed for chapter 11 bankruptcy proceedings to establish a trust with the aim of resolving all legal claims related to the product. 3M stated that while it believes the earplugs are safe and effective when used properly, they face increasing litigation. The company recorded a $1.2 billion pre-tax charge in Q2 in connection with Combat Arms Earplugs litigations.
Citigroup analyst Andrew Kaplowitz increased his price target for 3M stock to $145 from $136, and maintained a Hold rating. The analyst believes that the company’s Q2 results reflect continued execution by the company, despite a tough operating backdrop. Kaplowitz opines that 3M is well placed to fight high inflation through price hikes and cost discipline.
Overall, 3M stock has a Moderate Sell consensus rating based on seven Holds and four Sells. The average price target of $139.36 suggests 2.79% downside potential from current levels.
Microsoft (NASDAQ: MSFT)
Software giant Microsoft’s results for the fourth quarter of FY22 (ended June 30, 2022) lagged the Street’s expectations. Revenue grew 12% to $51.9 billion, while EPS increased 3% to $2.23. Unfavorable foreign exchange movements, lockdowns in China, continued weakness in personal computer market demand, and lower advertising spending hurt the company’s performance.
Revenue from Azure (Microsoft’s cloud computing platform) and other cloud services grew 40% but fell short of expectations. The company’s cloud business is considered to be one of its key growth engines.
However, MSFT stock rose as the company reaffirmed its double-digit revenue and operating income growth outlook for FY23. Microsoft expects its top-line growth to be fueled by continued momentum in its commercial business and efforts to gain market share across its portfolio.
Oppenheimer analyst Timothy Horan stated that while Microsoft is hit by macro challenges, it is gaining market share in information technology. Horan feels that despite an adverse business backdrop, Microsoft's platform is benefiting from rapid digital transformation.
Horan added that Microsoft is taking advantage of the digital transformation trend by “adding security, advertising, communications, CRM [customer relationship management], etc. in a low-cost best-of-suite strategy, well suited for a recession, helped by scale advantages.” The analyst reiterated a Buy rating on Microsoft stock with a price target of $300.
Overall, the stock scores a Strong Buy consensus rating backed by an impressive 29 unanimous Buys. The average price target of $331 for Microsoft stock implies 19.06% upside potential from current levels.
Conclusion
AbbVie stock has outperformed 3M and Microsoft year-to-date and has an attractive forward dividend yield of 4%. That said, Wall Street analysts are very bullish on Microsoft stock and estimate a higher upside potential from current levels compared to the other two stocks.
Analysts covering Microsoft are optimistic about the company’s long-term growth potential, especially in the cloud market. The company’s cloud business has been growing rapidly, with its Intelligent Cloud segment accounting for nearly 38% of the overall FY22 revenue.
As per TipRanks Smart Score System, Microsoft scores an eight out of 10, indicating that the stock could outperform the broader market.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Piper Sandler analyst Christopher Raymond noted that AbbVie missed revenue expectations for the second straight quarter, which doesn’t look good as the company is generally considered a safe haven stock both within the sector and in a recessionary backdrop. Using the TipRanks Stock Comparison Tool, we placed AbbVie, 3M, and Microsoft against each other to pick the blue-chip stock that Wall Street analysts find more favorable at current levels. AbbVie (NYSE: ABBV) Biopharma company AbbVie recently reported better-than-anticipated adjusted earnings of $3.37 per share (up 11.2% year-over-year) for the second quarter. | Using the TipRanks Stock Comparison Tool, we placed AbbVie, 3M, and Microsoft against each other to pick the blue-chip stock that Wall Street analysts find more favorable at current levels. AbbVie (NYSE: ABBV) Biopharma company AbbVie recently reported better-than-anticipated adjusted earnings of $3.37 per share (up 11.2% year-over-year) for the second quarter. Abbvie’s blockbuster immunology drug Humira is losing its exclusivity in the U.S. next year. | Using the TipRanks Stock Comparison Tool, we placed AbbVie, 3M, and Microsoft against each other to pick the blue-chip stock that Wall Street analysts find more favorable at current levels. Piper Sandler analyst Christopher Raymond noted that AbbVie missed revenue expectations for the second straight quarter, which doesn’t look good as the company is generally considered a safe haven stock both within the sector and in a recessionary backdrop. AbbVie (NYSE: ABBV) Biopharma company AbbVie recently reported better-than-anticipated adjusted earnings of $3.37 per share (up 11.2% year-over-year) for the second quarter. | Using the TipRanks Stock Comparison Tool, we placed AbbVie, 3M, and Microsoft against each other to pick the blue-chip stock that Wall Street analysts find more favorable at current levels. AbbVie (NYSE: ABBV) Biopharma company AbbVie recently reported better-than-anticipated adjusted earnings of $3.37 per share (up 11.2% year-over-year) for the second quarter. Abbvie’s blockbuster immunology drug Humira is losing its exclusivity in the U.S. next year. |
23206.0 | 2022-07-31 00:00:00 UTC | If You Invested $25,000 in Abbott Laboratories in 2013, This Is How Much You Would Have Today | ABBV | https://www.nasdaq.com/articles/if-you-invested-%2425000-in-abbott-laboratories-in-2013-this-is-how-much-you-would-have | nan | nan | It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition.
The move has worked out well for AbbVie, which today has a larger market capitalization than Abbott's. But how has it worked out for Abbott, and would its investors have made the right move if they bought $25,000 worth of shares in the company back then?
Abbott has continued to grow and remain diverse
In the years since the deal, Abbott has more than doubled its annual revenue, and COVID-19 testing played a big role:
ABT Revenue (Annual) data by YCharts.
In 2021, Abbott generated $7.7 billion in revenue from its COVID-19 testing products, which accounted for 18% of its $43.1 billion in total sales. The healthcare company has been investing in its different segments and developing new products, which has made the overall business stronger. Here's a quick look at how its reporting units have grown since 2013:
REPORTING SEGMENT 2021 REVENUE 2013 REVENUE % GROWTH
Established pharmaceuticals $4,718 $2,862 65%
Nutritionals $8,294 $6,740 23%
Diagnostics $15,644 $4,545 244%
Medical devices $14,367 $3,012 377%
Figures in millions. Source: Company filings. Table by author.
Diagnostics revenue will likely fall as demand for COVID-19 testing diminishes. However, even in 2019, Abbott reported $7.7 billion from its diagnostics business -- more than double what it reported back in 2013.
What's most impressive is the company's growth in medical devices. In 2013, Abbott had a segment called "vascular" that encompassed all of its devices. Today, the company has a wider variety of devices, with sub-segments including diabetes care, neuromodulation, heart failure, vascular, and others.
Being able to invest in its core business has certainly made Abbott a more diverse and stable company. However, that's not always what investors seek out.
Growth has trumped stability and diversification
On Jan. 2, 2013, after the spinoff, Abbott's stock was trading at around $32. A $25,000 investment would have been enough to buy 781 shares of the business. Today, the value of that investment would be worth more than $85,000.
Investors would have made out well on the investment, but they would have enjoyed even better gains from holding shares of the growth-oriented AbbVie instead; its value has risen by more than 330% since inception, while Abbott's stock price has climbed by 239%. Ultimately, it turned out to be a win-win for both companies, and investors would have made great returns by choosing either stock back then.
Is Abbott still a good buy today?
Abbott recently released its second-quarter results, and all indications are that the company is fine and still finding ways to grow. Sales for the period ended June 30 totaled $11.3 billion, and organically, the business grew at a rate of 14.3% year over year. While diagnostics and COVID-related testing continue to drive its strong numbers, totaling $2.3 billion, its other segments have also been growing. The only exception is the nutritional segment. That's due to recalls of infant formula products, a problem that the company has already addressed.
Although its shares are down 23% this year (worse than the S&P 500, which is down 17%), Abbott remains a good, long-term buy. Its strong fundamentals and diverse product offerings make it a safe option for risk-averse investors for the long haul.
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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 would have made out well on the investment, but they would have enjoyed even better gains from holding shares of the growth-oriented AbbVie instead; its value has risen by more than 330% since inception, while Abbott's stock price has climbed by 239%. It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition. | By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition. It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). The move has worked out well for AbbVie, which today has a larger market capitalization than Abbott's. | By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition. Investors would have made out well on the investment, but they would have enjoyed even better gains from holding shares of the growth-oriented AbbVie instead; its value has risen by more than 330% since inception, while Abbott's stock price has climbed by 239%. It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). | It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition. The move has worked out well for AbbVie, which today has a larger market capitalization than Abbott's. |
23207.0 | 2022-07-31 00:00:00 UTC | 3 Dividend Aristocrats to Buy in August | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-in-august | nan | nan | Track records matter. And when it comes to dividends, there's a group of stocks that have especially impressive track records. These stocks don't just reliably pay dividends; they've consistently increased their dividends for 25 or more years in a row.
I'm referring, of course, to Dividend Aristocrats. Not every member of this elite group is a great pick to buy right now, but some are. Here are three Dividend Aristocrats to buy in August.
1. AbbVie
AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. That makes the big drugmaker both a Dividend Aristocrat and a Dividend King. AbbVie has grown its dividend payout by more than 250% since 2013 with the dividend yield now topping 3.7%.
It isn't just the dividend that has risen tremendously, though. AbbVie's share price has soared more than 120% over the past three years. The stock ranked as the third best-performing Dividend Aristocrat in the first half of 2022.
The main knock against AbbVie is that autoimmune-disease drug Humira faces biosimilar competition in the U.S. beginning next year. This will present a stiff challenge for the company since Humira generated close to 37% of total revenue in 2021.
However, AbbVie has plenty of rising stars in its product lineup. The company should quickly return to growth after the initial hit from Humira's loss of exclusivity. The headwinds are also already largely priced into the stock, with AbbVie's shares trading at only 10.6 times expected earnings.
2. Abbot Laboratories
Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. That's not a coincidence: Until 2013, AbbVie was part of Abbott. Since the separation of the two companies, Abbott has increased its dividend by over 235%.
There are a few distinct differences between the two healthcare companies, though. Abbott's dividend yield is only 1.7%. Its stock performance has also lagged well behind AbbVie's over the past three years and so far in 2022.
However, Abbott's business remains strong. The company commands market-leading positions in every arena in which it operates, including diagnostics, generic medicines, and nutrition. Abbott delivered 14.3% year-over-year organic revenue growth in the second quarter. It also raised earnings guidance for full-year 2022.
Abbott's COVID-19 testing revenue is likely to decline. But the possibility of another coronavirus wave in the fall and winter could boost sales over the near term. The company also has several other growth drivers, notably including its FreeStyle Libre continuous glucose monitors.
3. PepsiCo
PepsiCo (NASDAQ: PEP) belongs to the same club as AbbVie and Abbott, increasing its dividend for 50 consecutive years. Its dividend payout has more than doubled over the past 10 years. Pepsi's yield now stands at nearly 2.7%.
The stock hasn't always outperformed the S&P 500 in recent years. But even though Pepsi's share price is down slightly in 2022, it's handily beating the market. Investors have been drawn to the stability of the company's beverage and snack business.
Pepsi's second-quarter results showed that its business is largely insulated from inflation. That's a huge plus with inflation at 40-year highs. The company continues to deliver strong growth while passing price increases along to customers.
It's possible that Pepsi could lag behind the market after the current downturn ends. However, until that happens, the stock appears to be one of the best Dividend Aristocrats to buy.
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Keith Speights has positions in AbbVie and PepsiCo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The main knock against AbbVie is that autoimmune-disease drug Humira faces biosimilar competition in the U.S. beginning next year. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. AbbVie has grown its dividend payout by more than 250% since 2013 with the dividend yield now topping 3.7%. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. Abbot Laboratories Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. AbbVie has grown its dividend payout by more than 250% since 2013 with the dividend yield now topping 3.7%. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. PepsiCo PepsiCo (NASDAQ: PEP) belongs to the same club as AbbVie and Abbott, increasing its dividend for 50 consecutive years. AbbVie has grown its dividend payout by more than 250% since 2013 with the dividend yield now topping 3.7%. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. AbbVie has grown its dividend payout by more than 250% since 2013 with the dividend yield now topping 3.7%. AbbVie's share price has soared more than 120% over the past three years. |
23208.0 | 2022-07-30 00:00:00 UTC | Earn $300 in Quarterly Retirement Dividends With 3 Easy Steps | ABBV | https://www.nasdaq.com/articles/earn-%24300-in-quarterly-retirement-dividends-with-3-easy-steps | nan | nan | Generating passive income through dividends is particularly important these days, as the stock market has had negative returns for the better part of a year now. But it is perhaps even more important in retirement, as that added income can come in handy. It can certainly give you some spending money to supplement your retirement accounts or Social Security checks.
Here are three steps to earn about $300 per quarter, or $100 per month, in dividend income.
Step 1: Look for high-yielding dividend stocks with consistent earnings
A dividend yield is the percentage of the share price that the company pays out in dividends. The average dividend yield on the S&P 500 is about 1.7% right now. Generally, a yield that is over that is considered pretty good. To determine if the dividend is sustainable, the payout ratio -- the percentage of earnings used to pay the dividend -- should ideally be below 50% in most cases.
Often, the best dividend stocks are those of large, established, blue-chip companies that are among the leaders in their industries. Many of these companies have consistent earnings and a commitment to maintaining or increasing their dividends. A good place to look for these stocks is on the list of Dividend Aristocrats, which are companies that have increased their annual dividend payouts at least 25 years straight. It is not the only source, but certainly a good place to start.
Step 2: Build your portfolio of dividend stocks
So, with these metrics in mind, the next step is to develop a portfolio of stocks that are poised to generate consistent, high-yielding passive income in retirement. For the purpose of this hypothetical, let's draw from the list of Dividend Aristocrats and identify some solid dividend stocks.
One is asset manager T. Rowe Price Group (NASDAQ: TROW), which has a yield of 3.99% and a quarterly dividend payout of $1.20, with a payout ratio of 36%. It has increased its dividend for 36 consecutive years. Another is pharmaceutical company AbbVie (NYSE: ABBV), which has a yield of 3.75% and a quarterly dividend payout of $1.41, with a payout ratio of 42%. AbbVie has increased its dividend for 50 straight years.
Both of these stocks have above average yields, manageable payout ratios, and a long history of supporting their dividends, as well as being established leaders in their industries. It is also worth noting that AbbVie is up 12% year to date (YTD) and has posted an average annual return of 16% over the past 10 years. T. Rowe Price is down 40% YTD, but all asset managers are struggling in this bear market. However, T. Rowe Price has averaged a 7% annual return over the past 10 years and has virtually no debt, making it a reliable dividend payer.
Step 3: Develop a plan
If your idea is to generate passive income in retirement, it is important to come up with a strategy to get there. How much would you need to invest in these stocks to make a decent chunk of income? Let's say you invested $15,000 in both of these stocks. T. Rowe Price trades for about $117 per share, so you could buy roughly 130 shares for just over $15,000. AbbVie trades for about $153 per share, so you could acquire 98 shares for just under $15,000.
For T. Rowe Price, 130 shares at $1.20 per share would generate about $156 per quarter, while for AbbVie, 98 shares at $1.41 per share would earn about $138 per quarter. That calculates out to about $294 per quarter, and $98 per month.
Keep in mind that these stocks will also generate capital appreciation, not just dividend income, so that investment will grow over time. T. Rowe Price has posted an annualized return of 7% over the past 10 years, while AbbVie has posted a 16% average annual return. So, you're not only getting passive income but also solid returns that you can tap into when you need it.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another is pharmaceutical company AbbVie (NYSE: ABBV), which has a yield of 3.75% and a quarterly dividend payout of $1.41, with a payout ratio of 42%. AbbVie has increased its dividend for 50 straight years. It is also worth noting that AbbVie is up 12% year to date (YTD) and has posted an average annual return of 16% over the past 10 years. | T. Rowe Price has posted an annualized return of 7% over the past 10 years, while AbbVie has posted a 16% average annual return. Another is pharmaceutical company AbbVie (NYSE: ABBV), which has a yield of 3.75% and a quarterly dividend payout of $1.41, with a payout ratio of 42%. AbbVie has increased its dividend for 50 straight years. | Another is pharmaceutical company AbbVie (NYSE: ABBV), which has a yield of 3.75% and a quarterly dividend payout of $1.41, with a payout ratio of 42%. AbbVie has increased its dividend for 50 straight years. It is also worth noting that AbbVie is up 12% year to date (YTD) and has posted an average annual return of 16% over the past 10 years. | Another is pharmaceutical company AbbVie (NYSE: ABBV), which has a yield of 3.75% and a quarterly dividend payout of $1.41, with a payout ratio of 42%. AbbVie has increased its dividend for 50 straight years. It is also worth noting that AbbVie is up 12% year to date (YTD) and has posted an average annual return of 16% over the past 10 years. |
23209.0 | 2022-07-30 00:00:00 UTC | 3 Stocks We Think Could Beat the Market in the Second Half of 2022 | ABBV | https://www.nasdaq.com/articles/3-stocks-we-think-could-beat-the-market-in-the-second-half-of-2022 | nan | nan | Every investor wants alpha -- the extra return above what a benchmark index generates. Many stocks don't deliver alpha at all, but some do.
We asked three Motley Fool contributors to identify stocks they think could beat the market in the second half of the year. Here's why they chose AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ).
Ride out the bear market with this big drugmaker
Prosper Junior Bakiny (AbbVie): The year has been good for pharma giant AbbVie, at least so far. The company's shares are performing much better than the S&P 500. AbbVie benefits from the fact that lifesaving medicines are in high demand even during challenging economic periods. Also, the pharma stock was arguably deeply discounted before its recent run of form.
Even after the strong performance it has shown year to date, AbbVie's forward price-to-earnings (P/E) ratio is a modest 10.8 -- which compares favorably to the pharma industry's forward P/E of 13.5 and the S&P 500's 16.95. Meanwhile, AbbVie's business is solid. It continues to record strong revenue and earnings growth. While it will lose patent exclusivity for its blockbuster rheumatoid arthritis medicine Humira next year, sales for AbbVie's newer immunology products -- Skyrizi and Rinvoq -- continue to grow rapidly.
Then there is AbbVie's dividend. The company is part of the group of Dividend Kings with a streak of 50 consecutive years of dividend hikes. AbbVie's 3.74% dividend yield is well above average. Dividend stocks can help smooth out market losses during a downturn. Of course, they can also be excellent sources of passive income.
Marketwide headwinds such as inflation and geopolitical tensions could get worse before they get better. But thanks to its solid lineup, juicy dividend, and reasonable valuation, AbbVie can help investors through these difficult times. The pharma giant should be well positioned to outperform the broader market during the second half of the year and beyond.
Plenty of reasons to be bullish
David Jagielski (AstraZeneca): This year, investors have been gravitating away from risky growth stocks and more toward safer investments. That's why I believe AstraZeneca can beat the market in the second half of the year, just as it already has been doing thus far in 2022.
A key reason investors may load up on the stock in the second half is that this is a safe stock that pays a solid dividend yield of 2.2%. That's better than the S&P's average yield of 1.7%. AstraZeneca is also modestly priced, with shares trading at a forward price-to-earnings multiple of 15. That's an attractive valuation given the company's growth potential.
AstraZeneca has 183 projects in its pipeline. Among its most promising candidates is breast cancer drug Enhertu, which has shown to be effective in treating patients with both high and low levels of HER2 breast cancer. The drug is currently approved for treating high levels of HER2 under certain conditions (e.g., the cancer is metastatic or unresectable). AstraZeneca is seeking to obtain approval to expand its use to low levels as well. If that happens, it could add $2.5 billion to its potential, bringing peak annual revenue up to a possible $6.6 billion.
Yet another reason investors may gravitate to AstraZeneca's stock this year is because of its strong cash flow. Over the past two years, the company has generated just under $6 billion in free cash flow. With so much money coming in, the drugmaker is in an excellent position to invest in its operations and handle any possible headwinds that may come its way. AstraZeneca could have momentum that carries not just through the second half of 2022 but throughout the decade and beyond.
As safe as they come
Keith Speights (Johnson & Johnson): I think that Johnson & Johnson is likely to outperform the market during the second half of 2022 for several of the same reasons that my colleagues gave for AbbVie and AstraZeneca. Although J&J has delivered the level of gains those two stocks have so far this year, it's still handily beating the S&P 500.
My bullish outlook on Johnson & Johnson is mainly based on two factors. First, the U.S. is likely already in a recession or will soon be. Second, J&J's impending spinoff of its consumer health unit will be increasingly attractive to investors.
During recessions, safe-haven stocks typically perform better than most. Johnson & Johnson is about as safe as they come. The company has been in business since 1886. It markets products that customers need. It's a Dividend King with 60 consecutive years of dividend increases. J&J is also very stable from a financial standpoint.
The healthcare giant plans to spin off its consumer business next year. That will leave Johnson & Johnson with two segments -- pharmaceutical and medtech. Both have stronger growth prospects than the consumer unit does.
Jessica Moore, J&J's vice president of investor relations, noted on the company's Q2 conference call that the company is "confident" that its pharmaceutical segment can generate above-market adjusted operational sales growth for the 11th consecutive year in 2022. Its medtech segment should also have easier year-over-year comparisons in Q3 and Q4.
I suspect that investors will pay much closer attention to the relative strengths of these two businesses the closer we get to the consumer health spinoff. The more the focus is on J&J's positives, the more likely the stock will be to beat the market.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While it will lose patent exclusivity for its blockbuster rheumatoid arthritis medicine Humira next year, sales for AbbVie's newer immunology products -- Skyrizi and Rinvoq -- continue to grow rapidly. But thanks to its solid lineup, juicy dividend, and reasonable valuation, AbbVie can help investors through these difficult times. Here's why they chose AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ). | Here's why they chose AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ). Ride out the bear market with this big drugmaker Prosper Junior Bakiny (AbbVie): The year has been good for pharma giant AbbVie, at least so far. AbbVie benefits from the fact that lifesaving medicines are in high demand even during challenging economic periods. | As safe as they come Keith Speights (Johnson & Johnson): I think that Johnson & Johnson is likely to outperform the market during the second half of 2022 for several of the same reasons that my colleagues gave for AbbVie and AstraZeneca. Here's why they chose AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ). Ride out the bear market with this big drugmaker Prosper Junior Bakiny (AbbVie): The year has been good for pharma giant AbbVie, at least so far. | Here's why they chose AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ). Ride out the bear market with this big drugmaker Prosper Junior Bakiny (AbbVie): The year has been good for pharma giant AbbVie, at least so far. AbbVie benefits from the fact that lifesaving medicines are in high demand even during challenging economic periods. |
23210.0 | 2022-07-29 00:00:00 UTC | AbbVie: RINVOQ Approved In EU To Treat Adults With Active Non-Radiographic Axial Spondyloarthritis | ABBV | https://www.nasdaq.com/articles/abbvie%3A-rinvoq-approved-in-eu-to-treat-adults-with-active-non-radiographic-axial | nan | nan | (RTTNews) - AbbVie (ABBV) announced Friday that the European Commission has approved RINVOQ (upadacitinib 15 mg, once daily) as an oral treatment for adults with Active Non-Radiographic Axial Spondyloarthritis or axSpA.
axSpA is a chronic, progressive and disabling inflammatory rheumatic disease that causes joint inflammation, leading to back pain and stiffness.
With this approval, RINVOQ is the first and only Janus Kinase or JAK inhibitor approved to treat patients across the spectrum of axial spondyloarthritis in the European Union.
The approval is for the treatment of active non-radiographic axial spondyloarthritis or nr-axSpA in adult patients with objective signs of inflammation, as indicated by elevated C-reactive protein or CRP and/or magnetic resonance imaging or MRI, who have responded inadequately to nonsteroidal anti-inflammatory drugs or NSAIDs.
The company noted that the approval is supported by data from the Phase 3 SELECT-AXIS 2 pivotal clinical trial in which RINVOQ delivered meaningful disease control with nearly half of nr-axSpA patients achieving ASAS40 at week 14 compared to placebo.
AbbVie previously disclosed topline results from the Phase 3 SELECT-AXIS 2 nr-axSpA clinical trial and the full results have been published in The Lancet.
With the EC Marketing Authorization for nr-axSpA, RINVOQ is approved in all member states of the European Union, as well as Iceland, Liechtenstein, Northern Ireland and Norway.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Commission has approved RINVOQ (upadacitinib 15 mg, once daily) as an oral treatment for adults with Active Non-Radiographic Axial Spondyloarthritis or axSpA. AbbVie previously disclosed topline results from the Phase 3 SELECT-AXIS 2 nr-axSpA clinical trial and the full results have been published in The Lancet. The approval is for the treatment of active non-radiographic axial spondyloarthritis or nr-axSpA in adult patients with objective signs of inflammation, as indicated by elevated C-reactive protein or CRP and/or magnetic resonance imaging or MRI, who have responded inadequately to nonsteroidal anti-inflammatory drugs or NSAIDs. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Commission has approved RINVOQ (upadacitinib 15 mg, once daily) as an oral treatment for adults with Active Non-Radiographic Axial Spondyloarthritis or axSpA. AbbVie previously disclosed topline results from the Phase 3 SELECT-AXIS 2 nr-axSpA clinical trial and the full results have been published in The Lancet. The approval is for the treatment of active non-radiographic axial spondyloarthritis or nr-axSpA in adult patients with objective signs of inflammation, as indicated by elevated C-reactive protein or CRP and/or magnetic resonance imaging or MRI, who have responded inadequately to nonsteroidal anti-inflammatory drugs or NSAIDs. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Commission has approved RINVOQ (upadacitinib 15 mg, once daily) as an oral treatment for adults with Active Non-Radiographic Axial Spondyloarthritis or axSpA. AbbVie previously disclosed topline results from the Phase 3 SELECT-AXIS 2 nr-axSpA clinical trial and the full results have been published in The Lancet. The approval is for the treatment of active non-radiographic axial spondyloarthritis or nr-axSpA in adult patients with objective signs of inflammation, as indicated by elevated C-reactive protein or CRP and/or magnetic resonance imaging or MRI, who have responded inadequately to nonsteroidal anti-inflammatory drugs or NSAIDs. | (RTTNews) - AbbVie (ABBV) announced Friday that the European Commission has approved RINVOQ (upadacitinib 15 mg, once daily) as an oral treatment for adults with Active Non-Radiographic Axial Spondyloarthritis or axSpA. AbbVie previously disclosed topline results from the Phase 3 SELECT-AXIS 2 nr-axSpA clinical trial and the full results have been published in The Lancet. axSpA is a chronic, progressive and disabling inflammatory rheumatic disease that causes joint inflammation, leading to back pain and stiffness. |
23211.0 | 2022-07-29 00:00:00 UTC | ABBV Crosses Below Key Moving Average Level | ABBV | https://www.nasdaq.com/articles/abbv-crosses-below-key-moving-average-level | nan | nan | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $140.72, changing hands as low as $139.82 per share. AbbVie Inc shares are currently trading down about 6.4% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $105.56 per share, with $175.91 as the 52 week high point — that compares with a last trade of $140.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $140.72, changing hands as low as $139.82 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $105.56 per share, with $175.91 as the 52 week high point — that compares with a last trade of $140.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $140.72, changing hands as low as $139.82 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $105.56 per share, with $175.91 as the 52 week high point — that compares with a last trade of $140.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $140.72, changing hands as low as $139.82 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $105.56 per share, with $175.91 as the 52 week high point — that compares with a last trade of $140.16. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $140.72, changing hands as low as $139.82 per share. AbbVie Inc shares are currently trading down about 6.4% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $105.56 per share, with $175.91 as the 52 week high point — that compares with a last trade of $140.16. |
23212.0 | 2022-07-29 00:00:00 UTC | AbbVie (ABBV) Q2 2022 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q2-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q2 2022 Earnings Call
Jul 29, 2022, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and thank you for standing by. Welcome to the AbbVie second quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations.
Liz Shea -- Vice President, Investor Relations
Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Rob Michael, vice chairman and president; Jeff Stewart, executive vice president, chief commercial officer; and Tom Hudson, senior vice president, R&D, and chief scientific officer. Joining us for the Q&A portion of the call are Laura Schumacher, vice chairman, external affairs, chief legal officer, and corporate secretary; Carrie Strom, senior vice president and president of global Allergan Aesthetics; Scott Reents, senior vice president and chief financial officer; Neil Gallagher, vice president and chief medical officer; and Roopal Thakkar, vice president, global regulatory affairs. Before we get started, I'll note that some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.
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These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Thank you, Liz. Good morning, everyone. And thank you for joining us today. I'll briefly comment on our overall performance.
Then Jeff, Tom, and Rob will review our second quarter business highlights, pipeline progress and financial results in more detail. AbbVie delivered another strong quarter with adjusted earnings per share of $3.37, exceeding our expectations. Total net revenues of approximately $14.6 billion was up 6.1% on an operational basis, in line with our expectations. This performance reflects robust double-digit operational sales growth from immunology, where Skyrizi is exceeding our expectations with impressive market share gains in both psoriasis and PSA.
Skyrizi's recent U.S. approval in Crohn's disease will add yet another source of long-term growth. As a result of the strong performance, we've seen in the first half of the year, we are raising our full year guidance for Skyrizi. Rinvoq is also demonstrating strong growth.
RA continues to perform in line with our expectations, following the label update, and we're making very good progress with all of the newly launched indications, including PSA, AS, atopic dermatitis and ulcerative colitis, which collectively represent a significant long-term growth opportunity. Neuroscience is another area with outstanding performance Vraylar, Botox Therapeutic and Ubrelvy and Qulipta each demonstrated double digit sequential sales growth. Pending regulatory approvals for Vraylar in major depressive disorder, Qulipta in chronic migraine and 951 for the treatment of advanced Parkinson's disease represent additional near-term growth opportunities for our neuroscience portfolio. Turning now to aesthetics, Botox Cosmetics once again performed very well with sales up more than 20% on an operational basis.
Demand for toxins remains strong with high teens growth in the U.S., despite inflation dynamics. As expected, Juvederm performance was negatively impacted by COVID-related lockdowns in China, as well as the suspension of our operations in Russia. Additionally, in the U.S., we had a difficult prior-year comparison with a promotional event that we ran last year. We also saw a modest impact in the quarter due to economic pressures.
We continue to expect positive full year growth for Juvederm driven by the lessening COVID impact in China, and two new filler launches in the U.S. which will benefit growth in the second half of the year. In hematological oncology, Imbruvica continues to be unfavorably impacted by a delayed market recovery for new patients starting therapy in CLL and increasing competition. These ongoing dynamics will have an impact on Imbruvica's projected 2022 revenues.
As a result, we will be adjusting our full-year guidance to reflect these impacts. Venclexta to continues to demonstrate robust share performance in both, CLL and AML with sales up double digits on an operational basis. Venclexta also has registrational studies ongoing in additional attractive indication, such as multiple myeloma in the t(11;14) patient population with Phase 3 data forthcoming, as well as high risk MDS. Additionally, we have an exciting and diverse pipeline of promising new therapies to address critical unmet needs in both, blood cancers and solid tumors, which are expected to support the next wave of AbbVie's growth in oncology.
In summary, the diversity of our portfolio, once again allowed us to deliver another strong performance, despite the challenges we see in the CLL market, and increasing Imbruvica competition. Skyrizi and Rinvoq are performing exceptionally well and are on pace to deliver approximately $7.5 billion in combined sales this year. Neuroscience demonstrated balanced double digit growth driven by migraine and Vraylar Baylor, and continued robust Botox cosmetic growth offset some of the U.S. inflationary impact to our filler and body contouring portfolios.
As a result, we are confirming our full year 2022 adjusted earnings per share guidance of $13.78 to $13.98, representing growth of more than 17% at the midpoint. With that, I'll turn the call over to Jeff for additional comments on commercial highlights. Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Thank you, Rick. I'm very pleased with the momentum across our therapeutic portfolio, including the continued progress we're making with new product and recent indication launches. I'll start with our immunology portfolio, which delivered total revenues of $7.2 billion, reflecting growth of 19.2% on an operational basis. Global Humira sales were approximately $5.4 billion, up 6.8% on an operational basis with 9.6% growth in the U.S., partially offset by international performance where revenues were down 7.3% operationally due to biosimilar competition. Skyrizi is performing extremely well, well ahead of our expectations.
Global revenues were more than $1.2 billion, up 33% on a sequential basis. We continue to advance our leadership position in psoriasis where Skyrizi's total prescription share of the U.S. biological market has increased to approximately 26%, driven by an in-play share of new and switching patients that is now approaching 50%. We have also achieved in-play market share leadership in 23 key international markets, including Japan, Germany, France, Canada, and Australia.
Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. In the U.S. dermatology segment, where approximately 30% of patients exhibit both skin and joint involvement, Skyrizi is already achieving an in-play patient share of nearly 20%. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth.
Our recent launch of Skyrizi for Crohn's disease in the U.S. represents the first new biologic approval in six years for an area where there continues to be considerable unmet need. We believe Skyrizi represents a highly effective and differentiated treatment option for Crohn's patients, including the potential to provide meaningful levels of endoscopic improvement with novel and infrequent dosing. Managed care access is expected to ramp strongly for this indication in the coming months.
Turning now to Rinvoq, where we're seeing good momentum across each of the approved indications. Global sales of $592 million were up more than 27% on a sequential basis. Prescriptions in RA remained strong with a total market share of 5.8% in the U.S. and approximately 6% across key international markets.
Rinvoq is now achieving an in-play RA share of approximately 13% in the U.S. In PSA, Rinvoq continues to see nice uptake, especially in the room segment with commercial access now equal to RA. We also recently received FDA approval for ankylosing spondylitis and European approval for non-radiographic Axial SpA, further expanding Rinvoq's potential across rheumatology. In atopic dermatitis, new patient starts are tracking in line with our expectations with Rinvoq's in-play patient share in the mid-teens.
Strong commercial access in AD, which is also now equal to RA and PSA, is expected to considerably increase paid prescription volume in this highly underpenetrated market over the remainder of the year. Lastly, our recent launch of Rinvoq for ulcerative colitis in the U.S. is progressing well. And we recently just received European approval for the same indication.
Commercial access in the U.S. is ramping strongly, and we are seeing encouraging new patient starts. Physician feedback regarding Rinvoq's approved profile in UC has been favorable, especially given the very high rates of remission and endoscopic improvement demonstrated across our UC development program. The addressable patient population for Rinvoq in UC is substantial, with nearly 50% of patients currently on or having used TNF therapy.
Turning now to hematologic oncology, where total revenues were $1.65 billion, down 7.9% on an operational basis. Imbruvica global revenues were approximately $1.1 billion, down 17.1% and below our expectations. The CLO market continues to remain challenging in the U.S. with new patient starts down double digits relative to pre-pandemic levels.
Now, as you may recall, our initial 2022 Imbruvica sales guidance contemplated a partial market recovery, which, unfortunately, we have not yet observed. In fact, the latest data reflects new patient starts in the U.S. were actually down high single digits versus last year. So, based on recent trends, we no longer believe it's prudent to anticipate a meaningful market recovery in CLL over the second half of this year.
Therefore, we will be removing this assumption from our 2022 guidance. In addition, increasing competition from newer therapies, including other BTK inhibitors as well as our own Venclexta also continue to lower Imbruvica's share of new patient starts, especially in frontline CLL. Despite this increasing competitive pressure, Imbruvica continues to be the total market share leader across all lines of therapy in CLL. Venclexta global sales were $505 million, up 21.2% on an operational basis.
In CLL, we continue to see share gains in the U.S. and across all major international markets. We're also seeing continued strong performance in AML. Venclexta is now approved in 80 countries and in many markets is already considered the new standard of care for frontline AML patients who are ineligible for intensive chemotherapy.
As a result, we are seeing ramping market share throughout the countries where we have launched. In neuroscience, revenues were more than $1.6 billion, up 15.2% on an operational basis. Vraylar once again delivered strong growth. Sales of $492 million were up 13.9% on an operational basis, reflecting continued share gains in the U.S.
atypical antipsychotic market. Our launch preparations remain well underway in anticipation of our MDD approval in the fourth quarter. This is a potentially large indication that would represent incremental upside to our current projections for Vraylar. Within migraine, Ubrelvy remains the market-leading oral CGRP treatment for acute migraine with revenue of $185 million, up 34% on a sequential basis.
Qulipta continues to increase its leading new-to-brand share in the U.S. preventative CGRP class when we consider both, paid and bridge volume. We continue to make good progress with expanded commercial access, which will support strong Qulipta sales growth over the remainder of this year. We are also pursuing the commercial approval for Qulipta as a preventative treatment in patients with chronic migraine in the U.S.
as well as a new therapy for Europe, potentially further strengthening our competitive product profile and long-term growth opportunity. Botox Therapeutic is also performing well in chronic migraine as well as its other indications with total sales of $678 million, up 14.5% on an operational basis. So overall, I'm pleased with the commercial execution across the therapeutic business. Our broad portfolio of differentiated therapies and new launches is demonstrating strong revenue growth.
And with that, I'll turn the call over to Tom for additional comments on our R&D programs. Tom?
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Thank you, Jeff. I'll start with immunology where we had several notable pipeline updates in our inflammatory bowel disease programs for both, Skyrizi and Rinvoq. We recently received FDA approval for Skyrizi in Crohn's disease, and we're very pleased with the label which reflects a strong benefit risk profile that Skyrizi demonstrated as an induction and maintenance treatment for this condition. Based on its profile, we believe Skyrizi will be a highly effective and differentiated treatment option for patients with Crohn's disease.
Our regulatory application for Skyrizi in Crohn's disease remains under review in Europe with an approval decision expected near the end of this year. Also in the area of inflammatory bowel disease, we recently received European approval for Rinvoq in ulcerative colitis. And we're excited to bring this new, highly efficacious oral option to patients suffering from this often debilitating disease. In the quarter, we also completed a registrational program for Rinvoq in Crohn's disease, reporting positive top-line results from our Phase 3 maintenance study We recently submitted our regulatory applications for Rinvoq in this indication and expect approval decisions next year.
Once approved for Crohn's disease, Rinvoq will have completed development programs for all the major rheum and gastro indications covered by Humira plus atopic dermatitis. The strength of the data generated in our clinical programs should position Rinvoq as a highly differentiated treatment across this broad indication set and enable Rinvoq to deliver significant value to AbbVie over the long term. And just this morning, we announced that we received European approval for Rinvoq in non-radiographic Axial SpA, which rounds out Rinvoq's label in rheumatology. Moving now to our oncology portfolio, where we continue to make excellent progress across all stages of our pipeline.
At the recent EHA meeting, we presented results from the large B-cell lymphoma expansion cohort in the Phase 2 study evaluating epcoritamab in patients who have received at least two prior lines of therapy. In this study, epcoritamab was well tolerated and drove very deep and durable responses in challenging to treat highly refractory patients with large B-cell lymphoma. We recently discussed these results with regulatory agencies and based on the strength of the data, we intend to submit regulatory applications later this year for accelerated approval of epcoritamab in patients with relapsed/refractory large B-cell lymphoma. We expect approval decisions in 2023.
We continue to make good progress with the indication expansion programs for Venclexta and remain on track to see results from the Phase 3 CANOVA trial in relapsed/refractory multiple myeloma patients with a t(11;14) mutation in the second half of this year. As a reminder, we've seen very promising results in this population in prior clinical studies with Venclexta showing high overall response rates and meaningful trends toward prolonged progression-free survival. The level of efficacy we've seen suggests that t(11;14) patients may be particularly responsive to Venclexta and this agent has the potential to become an important biomarker-driven treatment option in the multiple myeloma market. In neuroscience, following successful completion of our Phase 3 chronic migraine prevention study, we submitted our regulatory application to the FDA for Qulipta in chronic migraine.
Chronic migraine is defined as 15 or more headache days per month with at least eight of those days associated with migraines. This is a debilitating disease that affects nearly 10% of people suffering from migraine, significantly impacting their quality of life. If approved, this would be another differentiating feature for Qulipta as it would be the only oral CGRP approved for prevention in patients with chronic migraine. We also submitted data from our Phase 3 prevention studies in both, chronic and episodic migraine to support regulatory applications in markets outside the U.S.
We expect approval decisions in the U.S. and in Europe in 2023. In the quarter, we submitted our regulatory application in the U.S. for ABBV-951, our novel subcutaneous levodopa/carbidopa delivery system for treatment of advanced Parkinson's disease.
This innovative delivery system has the potential to become a transformative treatment option for patients with advanced Parkinson's disease by providing DUOPA-like efficacy with less invasive nonsurgical administration. We also expect to submit our regulatory application in Europe later this year with approval decisions anticipated in both, the U.S. and Europe in 2023. Now, I'd like to provide a few updates on some earlier-stage programs where we have new data and are advancing programs in development.
In immunology, we recently obtained encouraging data in a Phase 2 study evaluating Rinvoq in systemic lupus, an autoimmune multisystem disease. In our study, Rinvoq demonstrated greater response rates as well as a reduction in flares compared with placebo. We'll see longer-term data in the coming months, which will allow us to make a decision on moving Rinvoq into Phase 3 for lupus. In oncology, where we have a pipeline of promising early stage programs aimed at solid tumors, we are beginning to see very exciting data from several programs.
Our anti-GARP antibody, ABBV-151 is designed to block the immunosuppressive activity of regulatory T cells, which leads to increased T cell effector functions in the tumor microenvironment. This reactivates the immune system against tumors, enhancing the antitumor immune response triggered by a PD-1 inhibitor. In our Phase 1 program, we're combining 151 with a PD-1 checkpoint inhibitor in cancer patients who are refractory to or relapsed after PD-1 as well as evaluating this combination in PD-1 nonresponsive tumors. Based on the preliminary efficacy we've seen in the dose expansion cohorts for multiple solid tumors, including a deepening of responses over time and prolonged durability, we recently declared proof-of-concept for 151.
We plan to advance to Phase 2 in several solid tumors, starting with urothelial cancer. We're also expecting additional data readouts later this year in other solid tumor indications, including colorectal cancer, which may enable further expansion studies in this hard-to-treat cancer type. We will also begin new studies to explore a broader set of solid tumors where GARP is implicated as a critical immunosuppressive pathway, based on tumor tissue analyses. We're also making excellent progress with our next-generation c-Met ABBV-400, where the emerging clinical data is very promising in several solid tumors.
This asset is similar to Teliso-V as c-MET ADC that uses a microtubulin inhibitor payload. Teliso-V received breakthrough therapy designation for the treatment of patients with a subtype of lung cancer with high levels of c-Met overexpression. The toxin warhead for 400 uses a more potent topoisomerase inhibitor payload, which is similar to irinotecan, a chemotherapy that is used in the treatment of colorectal cancer. By targeting c-MET positive tumors with ADCs bearing different warheads we believe we can broaden the range of solid tumors where c-MET therapies can be used.
In our Phase 1 program, we are seeing good responses in patients with advanced colorectal cancer and remain encouraged by these early efficacy signals. So in summary, we've seen tremendous progress across all stages of our pipeline in the first half of the year, and we remain on track for further advancements in the remainder of 2022. So, with that, I'll turn the call over to Rob for additional comments on our second quarter performance and financial outlook. Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Thank you, Tom. AbbVie's second quarter results demonstrate the strength of our diversified portfolio. Momentum from new products and recently launched indications allows us to maintain our earnings outlook despite market dynamics for Imbruvica, higher inflation, and the stronger U.S. dollar.
We reported adjusted earnings per share of $3.37, reflecting growth of 11.2% compared to prior year and $0.11 above our guidance midpoint. These results include a $0.14 unfavorable impact from acquired IPR&D expense. Total net revenues were $14.6 billion, up 6.1% on an operational basis, excluding a 1.6% unfavorable impact from foreign exchange. The adjusted operating margin ratio was 51% of sales, an improvement of 220 basis points versus the prior year.
This includes adjusted gross margin of 84.7% of sales, adjusted R&D investment of 11% of sales, acquired IPR&D expense of 1.8% of sales and adjusted SG&A expense of 20.8% of sales. Net interest expense was $532 million, and the adjusted tax rate was 13.4%. Turning to our financial outlook. We are confirming our full year adjusted earnings per share guidance between $13.78 and $13.98.
This earnings per share guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond the second quarter. We now expect net revenues of approximately $58.9 billion, reflecting growth of 6.5% on an operational basis. At current rates, we expect foreign exchange to have a 1.7% unfavorable impact on full year sales growth. Included in this guidance are the following updated assumptions.
We now expect Skyrizi global sales of approximately $4.8 billion, an increase of $400 million due to strong market share performance. For Imbruvica, we now expect global revenue of approximately $4.7 billion, given the lack of recovery in the CLL market and increasing competition. Moving to the P&L, we now expect adjusted gross margin of 84.7% of sales and continue to forecast an adjusted operating margin ratio of 51.8% of sales. Turning to the third quarter.
We anticipate net revenues of approximately $14.8 billion. At current rates, we expect foreign exchange to have a 2.1% unfavorable impact on sales growth. We expect adjusted earnings per share between $3.55 and $3.59. This guidance does not include acquired IPR&D expense that may be incurred in the quarter.
In closing, we delivered strong performance again this quarter, including meaningful contributions from new products and recently launched indications. Given the momentum of our business as well as our pipeline advancements, we are well-positioned for the long term. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President, Investor Relations
Thanks, Rob. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, we'll take the first question.
Questions & Answers:
Operator
Our first question is Andrew Baum, Citi. Your line is open.
Andrew Baum -- Citi -- Analyst
First question is on the guidance range you've given for anticipated trajectory of Humira in the U.S., presumably you're finishing contracting, both with Medicare and commercial. Could you provide any guidance further on '23 and even '24 [inaudible] contracts? And then second, a pipeline question in relation to your anti-GARP monoclonal, which you've taken a long time to sort of optimize or move forward. I'm just curious whether you're using any molecular markers in order to minimize risk given the failures of other TGF-beta targeted agents, particularly in colorectal using CMS 4 or a subgroup of the total population, or are you putting it in all comers, the suggestion that what's an all comers or is this again informed biomarkers? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Andrew, this is Rick. Thank you for the questions. I'll cover the first one, and then Tom can cover the second one.
So, we are in the process now, as we've indicated before, of negotiating with the managed care organizations and the PBMs to establish our contract position for Humira in 2023. This is a normal time that you would go through that. It is progressing as we would expect. I would say we're midway through that process right now.
I would expect it to conclude near the end of the third quarter, early the fourth quarter. At that point, that's an important part of refining our model for 2023 in particular. And what that will tell us is that the positions that we have formulary status for 2023 in for Humira, and that will help us define clearly the volume aspect of it. And so, that's going well, and that's going to be an important part of us being able to refine that model.
And so, as we get further along in that process, that will give us the ability to be able to potentially refine the model that we have. Now, the one thing that's important to remember in all of this is price is the other key aspect here. And there, we won't know real pricing until the actual event starts to occur. So, we will make assumptions around what that price looks like.
And I think those will be informed assumptions, but they are just that they're assumptions. And so, that's the one piece that will still be somewhat of an unknown until we see the landscape start to play out in 2023. And particularly in midway through 2023 when more biosimilars enter the market. So, as we get more information and we can provide more clarity, we'll certainly try to do that, but I think that's where we are right now.
Tom?
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Thank you. Andrew, I'll try to break down the question in different parts because you're right, there are many TGF-beta assets. This one is unique, GARP. Most of the TGF-beta assets work either antibodies against receptors to be active for TGF-beta or TGF-beta itself that's in circulation on cells.
But GARP blocks the inactive form of TGF-beta before it's released from TGF-beta. And we believe that actually is a differentiated mechanism, also allows that specificity to what's happening in TGF-beta in the tumor as opposed to other systems in the body. At the beginning of this, we thought -- we had already had people that published that they are very good TGF-beta signatures that exist. And I can tell you that GARP signature follows tracks with TGF-beta signatures.
And that's often seen in all solid tumors as susceptive tumors that express these pathways. It's a very common immunosuppressive mechanism. That's why people and us are interested in it. We learned -- initially, from data, we kind of suspected that people who actually had a nice hot tumors but were not responding to PD-1, often had, at least from published work -- actually had a higher TGF-beta signature.
So, we thought that was a reason to mechanism why these patients with hot tumors were not responding. And a lot of our initial clinical strategy there was actually to go after hot tumors where PD-1s had relapsed or refractory. And we thought we could augment the PD-1 checkpoint response by doing this combination. We did not see monotherapy activity, but in combination, we did.
And that's why our first data sets and expansions like I've just discussed in urothelial cancer, this project started earlier, we're seeing data that's suggesting that this is correct that you need to reflect both the pathway of TGF-beta and PD-1, to get a response. And those, again, in multiple tumor types we're seeing these responses and we're moving forward. At the same time, to bring it to colon, we could also see the same signatures of TGF-beta and GARP in cold tumors, but we weren't sure that since they're not IO responsive, whether we'd get a response, we would get a clinical response. So, we did start some investigations.
And yes, we did see some responses in cold tumors. They happen over time, sometimes they appear, the tumors are stable for three months, maybe six months. And then you see these responses appear. They're very durable one year, two year, very unusual.
These are patients with advanced disease that have very poor prognosis in Phase 1 studies. So, we saw some, I would say -- we sometimes say in academic column exceptional responders. And so, we decided to expand. So, those data sets are newer, are happening right now.
I probably will have the data at the end of this year. But yes, we've seen responses to this combination. And to answer your question, so the signatures we're looking at are not the CMS or kind of histology-based signatures on the tumor. It's more signatures of the inflammatory response that we can measure in the tumor, and it has to do with both, inflammatory T cells, which are there for the killing, but also the inhibitory TGF-beta signatures.
And of course, we're going to continue to investigate this. I don't have all the answers for you today, but it certainly has been exciting to see how this program has evolved.
Liz Shea -- Vice President, Investor Relations
Thanks, Andrew.
Operator
Our next question is Terence Flynn with Morgan Stanley.
Terence Flynn -- Morgan Stanley -- Analyst
Maybe two for me. Just wanted to make sure that you are maintaining your 2022 aesthetics guidance of $5.9 billion. Rob, I didn't hear you call it out, so I'm assuming that was a reiteration, just given what you're seeing with Juvederm in the U.S. And then the second question I had relates more of a, I guess, strategic one, Rick.
I know you're still going through the conversations with 2023 for Humira. But, as you think about providing an update to guidance, whether that happens with the 3Q results or with the 4Q results, do you think you'll be able to provide some outlook on 2024 because I think something investors are discussing now is just if the possibility of the impact is more in '24, how we should think about revenue margins in '24 versus '23. So, just wondering strategically how you're thinking about that at this point, not asking for guidance, more just thought process.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So, Terence, I'll take both of those questions, and then Rob can certainly jump in here if he has something he wants to add. We are maintaining the aesthetic guidance as we've indicated. Certainly, we have seen good, strong performance on the toxin side of the business, and we would expect it to continue. As we look at the filler side of the business, as you've noted, it was lighter this quarter than we've seen historically.
And I'd say that was driven by a couple of issues. It was certainly driven by the China- Russia issue outside the U.S. In the U.S., we did have a very successful promotional program that we ran last year. So, it was a tough comparison versus last year.
But I'd also say, we have seen some glimpses of what could be inflationary pressure on that business or it could be pent-up demand for vacations. And Carrie can certainly go through more detail if there's a follow-up question. But I think as we look at the business overall, we're comfortable maintaining the guidance now. We believe that Botox will continue to perform very well.
And obviously, we're doing more things to be able to drive the toxin side of the business. It's at a price point where it should be less sensitive to inflationary pressures. The price point for toxin is about $500, I think, right, Gary? And where fillers are almost twice that or maybe even a little more than twice that. So clearly, from a disposable income standpoint, fillers are more challenging for people than toxins are.
And so that's the rationale behind it. And certainly, as we look at the overall performance of the AbbVie business, we have plenty of opportunities with the diversity of our portfolio to cover any potential shortfall if we ended up having an issue. So, that's why we're comfortable maintaining the guidance. And I think we need to see more time play out here to see exactly where we are from a U.S. inflationary impact.
On the second question, as it relates to an update on '23 and potentially something on '24. I think the way you've described it is accurate. When we have more information, we'll try to provide that. And when we've gotten to a point that certainly by the fourth quarter call, we're going to provide you guidance on what we think will happen in 2023.
But if we can provide something on the third quarter call, I wouldn't be looking for guidance. I think that's not a good expectation. But certainly, potentially a little more clarification on what our contracting status looks like at that point and how that will translate into what we think. And if we can refine the model to a greater degree, we would certainly provide that.
As it relates to 2024, certainly, I'm not going to -- we're not in a position we're going to talk about 2024 right now. And I think that would be a little bit unlikely because not all these contracts will be two-year contracts. And so, you really won't know what your volume position is at that point. And as I said, you won't know what the pricing is going to be, particularly midway through the year.
And so, I think those will be important things to be able to dial in to where the forecast is going. I'd say, overall, we feel good about the contracting position that we're in. And then, I'd say, the other thing is, I know investors really want to try to model this between '23 and '24. I understand why you want to do that.
Certainly, we obviously would like to do that to the greatest degree possible. But, when you step back and you actually look at the performance of AbbVie and how you will value AbbVie and what AbbVie means going forward, it has relatively little to do with Humira, and that shape of that curve between '23 and '24. And certainly, by the end of '24, we should reach a point where we've achieved some level of stability on the tail of Humira. What AbbVie is all about is these other products like Skyrizi and Rinvoq and Vraylar and Ubrelvy, the aesthetics business, Qulipta.
Those are going to be the things that drive it. So, if you want to focus on something and it's what we focus on internally is that underlying growth engine that will emerge on the other side of whatever erosion Humira ends up suffering before it hit some level of stability and tail is those assets and then what comes out of the pipeline. Those are the key things that are going to create that growth between 25% and 30%. And that's the part that we -- I would say, we're obviously managing Humira to the greatest extent we can.
But that's the part that we as a team are focusing on. And I think that's the most important part because that is the AbbVie going forward.
Operator
Our next question is Mohit Bansal with Wells Fargo.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Maybe dwelling a little bit more on the Humira question for Rick and Jeff. So, you said that pricing from the competition will be key unknown for next year. As you get into contracts this year, for the next year, how rigid or flexible these contracts are from the pricing point of view when PBMs realize that the biosimilar is giving an X or Y pricing, or would that be more of a 2024 issue rather than 2023? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Well, let me take a shot at that, and certainly, Jeff is closer to it. So, Jeff, if you want to add anything in, feel free to jump in and add. Typically, when you contract for an asset like Humira, you're contracting for a formulary position. And there aren't volume requirements or other kinds of requirements.
I think it's also -- it would be prudent to assume that biosimilars will be on these contracts, whether it's one or more than one that will coexist with Humira. So, price plays an important role in that because they will coexist. And so, I'd say -- and as that becomes fluid, you would have to make decisions around how you try to deal with that to maintain the kinds of volumes that you want to maintain. And we've said all along, the strategy that we'll have in the U.S.
is similar to the strategy that we had internationally, and that is maintain as much volume as we can at the highest level of profit that we can maintain it at. And that is the logic that we will employ. But that doesn't mean we won't have to be somewhat responsive to prices in the marketplace on Humira. Jeff, anything you'd add?
Jeff Stewart -- Executive Vice President, Commercial Operations
No, I think that's -- Rick, that's a very reasonable way to look at it in terms of how these negotiations are going and how we see '23 playing out. I mean, the real big ones in terms of how we look at it is the two big scenarios are you are likely coexisting with one or more biosimilars or if the negotiations don't go the way that we anticipate that were excluded in favor of biosimilars. And that's basically where price and volume -- in terms of refining our model, for '23. That's the work that we're doing over the summer and then into the fall.
Operator
Next question is Gary Nachman with BMO Capital Markets.
Gary Nachman -- BMO Capital Markets -- Analyst
So, Skyrizi was very strong in the second quarter, and you raised guidance nicely. How much of a benefit are you getting from the psoriatic arthritis indication thus far? What are you expecting Crohn's to contribute this year? How much are those playing into the raised guidance? And are you revisiting the long-term guidance on Skyrizi at this point, given the strong performance? And then just on the hem/onc franchise. Are you keeping the infrastructure intact preparing for new products to contribute? And maybe you could talk about the near-term opportunities you see for products like epcoritamab and navitoclax, how much of those could contribute and potentially offset some of the pressure you've been seeing from Imbruvica? Thanks.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you. It's Jeff. Thanks for the question.
So, your instinct and observation is right. The big dynamic change for Skyrizi here, largely what you're seeing is from the psoriatic arthritis indication. And obviously saw very, very large sequential moves. And let me give you some sense of what we're looking at.
So, we're seeing that we're putting more and more basically headroom into the overall share position, first in psoriatic disease, so that's psoriasis plus PSA. So, we're at 26% in terms of total TRx share and moving very, very nicely up. So, that's being driven by this PSA acceleration. So first, remember that the PSA indication, we were the -- really the last large product that didn't have that indication.
So first, what happens is it starts to interact very positively in the dermatology segment. So, as I mentioned, about 30% of patients both have skin and joint involvement. And so we actually had a lower despite the fact that we had the leading psoriasis share, we had a lower psoriasis share because we weren't covered with the joints with that indication. So, you see an immediate, very rapid acceleration of our overall derm business that I highlighted.
Secondly, strategically important to the performance is that we're able to launch the PSA indication for Skyrizi in rheumatology. So, it starts to work together with the Rinvoq PSA indication, and the rheum segment is three times as large as the derm segment. So, it's a very, very good dynamic in terms of our momentum in two large segments, even before we get to Crohn's. Now, I would say that as we've talked about before, I mean, Skyrizi is a very special product, very unique dosing, very stable, incredible efficacy.
And so, we are encouraged on the early results of Crohn's. It's too early to start to see numbers or etc. But all of that is playing into the raise that Rob talked about.
Rob Michael -- Executive Vice President and Chief Financial Officer
And Gary, this is Rob. Just on the guidance. So, if you recall, earlier in the year, we got asked the question, I said PSA for Skyrizi was going to contribute about $200 million this year. It's probably closer to $400 million now with the guidance range, given the very nice uptick we've seen in PSA.
But part of that guidance raise is also the strong share performance in psoriasis. So, it includes both. In terms of Crohn's, that hasn't changed. We've set approximately $100 million this year as we ramp access for Crohn's.
But obviously, the long-term potential for it is tremendous, and we're very excited about that.
Jeff Stewart -- Executive Vice President, Commercial Operations
And maybe I can also then chime in on the second question. Certainly, that is a -- the new assets are a very important part of our growth story for hem/onc. Certainly, as I mentioned, we're still continuing to ramp around the world with CLL. We have more and more impressive data, particularly in the unfit frontline population.
We have five years of data in the fit population for frontline for Venclexta. We're encouraged with the myeloma data, which is very unique in terms of biomarker driven approach for the (11;14). Navitoclax would be really one of the first new entrants for myelofibrosis, where there's really only been rocks in terms of that market. Epcoritamab, increasingly encouraging data in terms of the simple subcu, very rapid ways to get this medication in later lines and then building into frontline.
So we are very, very encouraged while we see some pressure on Imbruvica, the new indications in base for Venclexta helps to offset that. And then we start to build with those near-term hem assets and super encouraged in terms of what we're seeing in terms of the probability that we can get there.
Operator
Our next question is from Chris Schott J.P. Morgan.
Chris Schott -- J.P. Morgan -- Analyst
First one, I just wanted to come back to dynamics on the U.S. dermal filler market. I guess specifically, can you just quantify how much of the weakness we saw this -- or the decline year over year was due to the promotion events last year versus the impact from the economic pressures that you're seeing? And I guess, in the same context, are you seeing any signs of weakness in the European business? I'm just -- and what I was just trying get your hands around, what type of magnitude of impact you're talking about here in terms of either of its inflation or economic sensitivity to that business. My second question was just thinking about Rinvoq and Skyrizi formulary and pricing dynamics going forward as biosimilar Humira enters the market.
I guess, are you expecting or are you hearing through discussions, any major shifts in the way payers are thinking about those products as we think about pricing coming down and obviously the largest kind of product in the space there.
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Hi. This is Carrie. I'll take your first question around Juvederm. And as Rick said, there was a one-time promotional event that we ran in the U.S.
for Juvederm in Q2 of last year, and it was highly successful, and it increased sales in the sales space, which created the challenging prior-year comparison. So, that was the key driver. But as you noted, there is also this impact -- economic impact that is suggestive of some early changes in consumer behavior. And that really isn't surprising in light of the inflationary pressures that we're seeing on discretionary income.
And as Rick said, the filler market is likely more sensitive to that than toxins for a few reasons. We mentioned the price point. So a price point of closer to $1,000 versus $500 for toxin, also the nature of the filler business is different than toxin from a patient dynamic and treatment dynamic and that there are more -- there's a longer interval between treatments for fillers versus toxin, which is sort of like a more regular treatment paradigm a few times a year. Also, the patient bases are different.
When you think about the toxin patient base and Botox Cosmetic, the majority of the patient base is continuing patients versus more of a reliance on new patient acquisition. And so, those are some of the factors we're thinking about when we think about the deceleration of the filler market in Q2 but while the market has slowed and despite the performance in Q2, we do continue to expect a positive second-half growth for U.S. Juvederm, really weighted more in the fourth quarter as we're going to launch two new fillers in the fourth quarter. And those two new fillers will get us into incremental categories for HA fillers, including jawline and skin quality, which will help to drive some incremental demand at the end of the year.
And in terms of your question around economic impact outside of the U.S., we are watching that very closely, and we really have not seen that yet outside of the U.S.
Jeff Stewart -- Executive Vice President, Commercial Operations
In terms of your second question, again, it's Jeff. Thanks for that. We're -- we don't see some significant pressures on Skyrizi and Rinvoq. Now, we always have discussions with the payers, we look at our contracting strategy.
But I think we fall back on our clinical evidence that we have on these two major assets. I mean, we have four head-to-head trials against other major competitors with Skyrizi, where we have just really growth superiority versus whether it's an IL-17, whether it's Humira, which one day will be biosimilar, STELARA, etc. So just the pure performance there and the momentum, it's clearly a distinguished asset. We're going to be first in terms of Crohn's to start to establish that new area and build the market there.
And I think on Rinvoq to some degree, there's only one other JAK inhibitor that is not going to have the scope of indications and it's Xeljanz. And Xeljanz has been significantly wounded based on the oral surveillance data. So, in terms of our ability to build and protect and grow Skyrizi and Rinvoq into the next stage of development, we're quite confident that we have the assets to be able to do that.
Operator
Our next question is from Steve Scala, Cowen.
Steve Scala -- Cowen and Company -- Analyst
Two questions. First, Rick, in the past, you have laid out four factors that will dictate Humira's trajectory in 2023. The first two were Humira access and biosimilar price, and it's clear it's too early for any news on either of those points. But the second two were competitiveness of biosimilars, which you said in part was interchangeability and also the biosimilar ability to supply the market.
So, those two factors, three and four are things that won't fluctuate and presumably, you have some visibility on that now. So, I'm just wondering if there's anything unusual occurring there. And in discussions, how important is interchangeability with payers. The second question is, and I apologize if I missed it, but are there any updates on the TNF steroid conjugate and is Phase 2 RA data still expected this year? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
All right. Thanks, Steve. This is Rick. I'll cover the first one.
And Roopal can cover the second one. So, you are correct. That is what I described a meeting or two ago as the four variables. I would say, when you think about interchangeability, I think you have to think about it in the backdrop of not just interchangeability, but also what is the profile that is the closest to Humira today? And we can look at all the biosimilars and have -- we have pretty good visibility as to what that profile looks like.
And what I would say is, to get a profile that is interchangeable and is consistent with the current Humira that's predominantly in the marketplace today, that's probably going to occur in the summer of 2023. There should be one or two biosimilars that have a profile that looks like that. And that would make it somewhat easier for an organization to make a switch. So, I think that will play an important variable.
Nothing has changed in the last few months in what that profile looks like. And then obviously, supply is an important aspect that certainly anyone that we're looking at making a significant change in their position with Humira is going to want to make sure that they're going with a company that has the ability to be able to produce at volume, at significant volumes, Humira, and they can do it sustainably. So, there are certain players that I would say clearly have that ability to be able to do it, similar to us. Certainly, no one does it at the scale of us or anywhere close to the scale of us.
But there are also a lot of small players that I think supply is going to be an important aspect and going to somewhat limit the ability to be able to have broad market impact. And so, those are going to be important dynamics as we negotiate with the various managed care organizations. I can tell you that we're talking through those kinds of things with them. Roopal?
Roopal Thakkar -- Vice President, Regulatory Affairs
Yes. Thanks. Yes. So, 154 is our anti-TNF conjugated steroid, as you mentioned, and it's enabled to target delivery of steroid directly to inflammatory cells.
So, we do have that Phase 2 running several hundred patients, and we still anticipate getting read later this year and then further data to follow next year.
Operator
Our next question is Chris Raymond, Piper Sadler.
Chris Raymond -- Piper Sandler -- Analyst
Two questions. Maybe one that's more broad policy and then another one that's maybe a little bit more detailed. So, maybe first for Rick. I know you guys keep pretty close tabs on healthcare policy.
Just on the most recent Senate Democrat drug pricing language in the reconciliation bill. The provisions on the face of it seemed pretty manageable in terms of direct impact from pricing controls, but there's been some concern around this being just the start of something larger in terms of price controls. Any thoughts from you guys on this would be appreciated. And then, maybe a more detailed question on ABBV-951.
I know you guys haven't provided specific guidance on this or on Duodopa, but there seems to be a lot of recognition of 951 among movement disorder KOLs as a real improvement in terms of overcoming reticence around Duodopa. Just how should we be thinking about 951 vis-à-vis Duodopa, if approved? Thanks.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. So, I'll take the first question. I mean, I think if you look at the drug pricing proposal that's out there, it's certainly an important issue for us, and I think it's an important issue for patients. I think if I look at that bill, and I'm assuming that if there were something that were to pass, it would be somewhat consistent with what was in the build back better for the Senate Finance text.
And so far, it looks like that, but obviously evolving a bit here as we go along. And if I look at it in total, what I'd say is there's a couple of positive things in there. Certainly, most notably, the $2,000 cap out-of-pocket costs for patients and the ability to be able to smooth, I think that's an important step in increasing affordability, especially for patients in Medicare Part D. And so, that's something we've been supportive of.
We've been vocal that we think that's an important step forward. What I'd say on balance, this is a bill that has far more negatives than it has positives in it. And I think although it may not be short term that challenging from a financial standpoint, I think the long-term implications of this bill are pretty significant. And they really hinge around this so-called negotiation clause that's in there and how that's being implemented, particularly for small molecules.
And if you're familiar with it, essentially what it says is that CMS or we're assuming it will be CMS, has the ability at a certain point in time to be able to negotiate a price on a set of drugs. And by the time you get there, it will be a big set of drugs that they'll have the ability to be able to negotiate on. And the key issue is this. Essentially, they have full latitude to basically decide whatever price they want the drug to be.
And I wouldn't necessarily call it a negotiation because the only alternative that the manufacturer has is to accept a 95% penalty on their revenues or, in essence, take a 95% discount. So, it's not a negotiation. We should just call it what it is. It's price controls is what they're basically putting in place if the language stays the same.
And ultimately, I think the real challenge is how we invest in this as an industry in innovation. If you take small molecules as an example, I'll walk you through an example that illustrates the point that I'm going to raise here. If you take a small molecule, it says at year nine after the first approval, CMS has the right to be able to negotiate the price on that drug. So, if you take an oncology drug as an example, how do we develop oncology drugs in this industry? And what do the regulatory authorities typically require us to do, to be able to develop an oncology drug.
Well, they typically require you to do and what we typically do is we go to patients who have failed on all the existing therapies, fourth-line patients, fifth-line patients. And we take whatever drug we have and we determine, do we have a positive benefit risk in that patient population. If we find that we do, then we seek approval for that drug in that patient population, so that those patients will get the benefit of that drug. And then, we start to work our way up toward front line.
Those who refractory patients are typically very small populations of patients, right? And you can never get a return on a drug just on that patient population. And then, you work your way up to front line, or second line, or wherever you end up. That process typically takes seven to nine years because of the length of the trials. So essentially, with this, by the time you got to the larger populations, you'd be within a year or two of when CMS could change the price.
But one, it's impossible to figure out what the return is going to be, so how do you invest? Two, it really puts negative pressure on you not to continue to develop new indications. But the most detrimental part of it is to patients who need these drugs or small indications or in later stage. Because you're faced with the dilemma -- and this is a horrible dilemma, right, as a company and for patients. You're faced with a dilemma of do I choose not to seek approval in those late-stage patients, so I don't start the clock and wait until I'm closer to frontline before I start the clock.
That is not the right policy. And I would say, on balance, this bill will have a couple of things that are good for patients that I'm fully supportive of. But unless Congress wants to harm patients and harm innovation in this industry, they need to change that part of it. It doesn't make sense.
It's shortsighted. Now, they can change it in a couple of different ways. They can determine, OK, what is a floor price or a maximum discount by year and then you can calculate the return on investment that you're going to have on the drug or they can at least make it consistent with biologics that are out 13 years. Otherwise, the investment in small molecule oncology drugs or neuroscience drugs, which Medicare patient populations are highly dependent on new innovative drugs in those areas because they're elderly patients, are going to suffer.
And the CBO report that was published back in April of last year clearly pointed that out. So, this isn't something I'm just saying or industry is just saying. And in fact, if anything, I'd say, they probably under call the magnitude of the impact. So, this is an important issue.
We all know the affordability and access for Medicare patients is important. But you don't need to destroy the innovation model in the process in order to provide that. And so, I'm hopeful that we'll see some movement here and some rationality will play out.
Jeff Stewart -- Executive Vice President, Commercial Operations
OK. And to address your 951 -- hi, it's Jeff. Thanks for the question. So, I think some perspective is globally, DUOPA is about $0.5 billion brand.
And certainly, we've said that we believe that 951 could certainly double that up or more. I'll give you the perspective of why we think that way. So, if you look at the advanced Parkinson's patients, about 85% sort of cycle when they stay on these generic orals that become less and less and less effective. And the only thing they can really do, and that's about 15% of the market, the advanced Parkinson market, is they can move to either deep brain stimulation or DUOPA.
But you got to go through a surgical barrier. So, the families and the patients are forced to think if I need to get improvement in my symptoms and my quality of life, I'm forced to basically think about do I get a hole in my head or a hole in my stomach with a gastric surgery. This is going to be a subcu. And so, we see in our market research that at least 40% to 60% of people never want to move toward DBS or DUOPA.
So, we think this is a way where we can start to expand and create a new market segment, in essence, a subcutaneous segment where you don't have to take that risk on the surgery. And like you mentioned in the movement disorder centers, there's a significant amount of experts that are excited about this new option, and we believe that it's going to be a real innovation for patients without having the surgery.
Rob Michael -- Executive Vice President and Chief Financial Officer
And Chris, this is Rob. As Jeff said, I mean, we expect this to be market expanding. At the JPMorgan conference earlier this year, we did give peak revenue guidance for 951 greater than $1 billion. Obviously, DUOPA is $0.5 billion now.
If you're modeling it, obviously, there'll be some level of cannibalization, I'd say, minor level of cannibalization on Duodopa. But when you think about the combination between 951 and Duodopa, obviously, it's going to grow the revenue for the Company and expand the market.
Liz Shea -- Vice President, Investor Relations
Thanks, Chris. Operator, next question, please?
Operator
Thank you. It's Tim Anderson with Wolfe Research.
Tim Anderson -- Wolfe Research -- Analyst
Hi. If I could just go back to the whole '23 versus '24 thing, am I -- I thought that in the past, you guys have said earnings would trough in 2023 and then return to growth in 2024. Is that still the case, or is that off the table? And then, second question goes back to the 154 compound, your antibody drug conjugate. We understand that the timing is still on track, but I just -- it feels like to me there's a distinct lack of enthusiasm toward this program, you don't seem to mention that much or at all really, despite its novelty and despite it being in your most critical franchise of immunology.
So, has the enthusiasm waned over, let's say, the last couple of years?
Rob Michael -- Executive Vice President and Chief Financial Officer
So Tim, this is Rob. On your first question, what we've said -- we've talked about this 45% with a range around that plus or minus 10% and using, obviously, the Europe analog as an example. And in that case, with the steep erosion year one and '23, you would expect then the trough to be in '23 and return to growth in '24. As this plays out, we'll see how that shakes out.
Ultimately, if more of it happens in '24, you obviously have another year of growth for all your growth brands. And so, you have a different floor in that scenario. But most importantly, it's what happens in '25 and beyond. When you look at this company with the growth drivers we have, we'll be delivering high-single-digit growth in '25 and beyond, which is industry-leading.
We'll have the lowest LOE exposure in the industry in the second half of this decade. And so, we're focused on the long term, we feel very good about the prospects of this business. But as it stands now, the most recent direction we've given is expect that first year erosion, so that 45% plus or minus 10%, which then play out to a return to growth in '24. We'll obviously update the market as we see it play out next year.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Maybe I'll take this one. This is Tom Hudson. I'm a clinical immunologist, and I know how we've been using steroids, they can give very profound and deep immunosuppression, decrease inflammation, and that's often used in severe cases when patient shows up. So, we know that the response is very strong, but there are a lot of side effects.
And, when our problem is always weaning, the steroid's out in the clinic. So here, again, the combination of immunomodulator like TNF and steroid have that potential of giving us that deep, deep response very quickly to remove the immunosuppression. And based on the data we've seen preclinically in our Phase 1 studies, we're not seeing those biomarkers or side effects in the bone or brain, a cortisol, or others. So we've already demonstrated that, and we have nice data.
The other -- so that's my enthusiasm. We expect to see deep responses, durable responses with much well better tolerated than steroids. Our program -- and we've shown this also is that we've actually believed in the platform and we're developing steroid ADCs for other targets to target other immune systems -- other immune cells, more specifically around some T cells or some B cells or some fibroblasts. These programs are coming forward.
We think this is a profound platform in immunology to go after different biologies -- in very targeted steroid suppression of different specific immune cell types, and that's going to play out over the next couple of years. So, based on the data we saw, we expanded the platform to other biomarkers getting into other specific immune cell types. Of course, we're quiet because we need to see the data, all -- the study has been fully recruited, actually moved faster than we expected. And the day was randomized.
We're just going to see the data in the fall because it's a blinded study. But the enthusiasm is there. And we're also, of course, seeing that data, and then we have PMR because we also started studies there in Crohn's disease. We'll see that data later, but the more data we have, the more likely we're going to expand this program to other indications where we believe that deep steroid suppression with TNF might actually bring new solutions for patients.
Operator
Our next question is Geoff Meacham, Bank of America. Your line is open.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Great. Thank you so much for the question. Not to belabor the point on Humira, but I wanted to ask you, is the long-term, meaning the four-year kind of trend that we saw this quarter for Humira in Europe, is that still a good proxy for how you guys are thinking about the tail for Humira, just given we're coming up on four years in Europe and we're talking about high single-digit erosion still. So, I wanted to kind of ask you about the tail piece of what you expect in the U.S.
And the second question, just on Rinvoq, I wanted to ask you also on the -- since the FDA labeling change, you just seen any changes with regard to persistent rates or new starts just on your feedback from the field and how docs view the safety of the JAK class. Thank you.
Rob Michael -- Executive Vice President and Chief Financial Officer
Jeff, this is Rob. I'll take your first question. So, the way we've talked about Humira erosion, it's played out in Europe as we saw that steep erosion in year one, more moderate erosion years beyond. In our modeling now, that's probably the best way to think about it is deep erosion year one, more moderate.
You'll have an annualization impact in year two, but more moderate beyond that. And specifically within the Wave 1 countries, when we look at Europe, and the level of revenue we have this year relative to pre-LOE, we still have about 30% of the revenue footprint. So, it gives you a sense of where Europe is after four years. Obviously, as we model the U.S.
out, and it will be more specific in the future, but right now, we're using Europe as an analog.
Jeff Stewart -- Executive Vice President, Commercial Operations
And regarding Rinvoq in terms of perceptions from the field or what we're seeing. It's largely developing as we predicted. So, we do see segments of physicians that are more wary of the JAKs after the label change. However, we anticipated that.
So, we are starting to see a recovery in second line plus in RA as we anticipated. And the new indications because really we'll be the only JAK inhibitor with the four big indications of RA, PSA, AS and then non-radiographic ultimately in the fall. That just builds upon the confidence level of the physician. So, that's what we're feeling from the field.
I'll mention maybe some color on ulcerative colitis. I mentioned that we're encouraged on the ulcerative colitis start. So, we saw in the quarter because we launched in early April. We saw 600 unique gastroenterologists start to write prescriptions, which is quite interesting and good, a positive.
And about half of those customers had never written a JAK inhibitor. So, Xeljanz was approved. And so, we're seeing, obviously, the ability of these customers to understand the overall risk benefit of Rinvoq relative to, let's say, another JAK inhibitor. So I feel that our communication is on track, and we're seeing positive feedback as we build the indications that we've highlighted in the call.
Operator
Our next question is Colin Bristow with UBS.
Colin Bristow -- UBS -- Analyst
Another one on the '23 Humira guidance. Could you just walk us through -- at the point at the end of 3Q, what percentage of contracts or volume will you have confirmed at that point? And then, it sounds like that by the -- by the time you have the full year results, you're still anticipating that there could be a meaningful change. Could you just confirm that's a fair characterization? And then just on ABBV-154, what are you hoping to see with the Phase 2 data that we're going to get at year end? And what's the threshold here that you need to surpass to move forward? Thanks.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Yes. So, if we look at the discussions that we've highlighted and Rick highlighted, I think and they're progressing as we would expect. So typically, they start in the late spring. And look, these are complex negotiations.
They go on for many, many months. In many years, we would have completed the -- at least the large PBM negotiations, which is the vast majority of the volume by that October time frame. In some cases, as you probably know, the payers would publish this information. But very often, not always, the immunology an inflammatory segment, those negotiations can go on longer, and they're very often published as a TBD in what used to be called the exclusionary formulary.
So, we would -- as Rick mentioned, we would have visibility to sort of the status on the volume in that October time frame. That's a reasonable assumption. Again, I don't know for sure, given the complexity of biosimilar negotiation, which has never taken place before. But that's a reasonable way to think about when we'd start to have the visibility to the volume component, as Rick highlighted.
Roopal Thakkar -- Vice President, Regulatory Affairs
Yes. And it's Roopal on the 154 question. Dovetailing on what Tom just walked through, things that we want to see are consistent with how we develop in immunology, certainly raising standard of care. So, the way this was designed was to have that anti-TNF and then that direct delivery to avoid systemic side effects of the steroids.
So, you'd see sort of that one-two punch as Tom was describing and see that depth of response. So, once we see that type of information along with how it looks from a steroid standpoint, metabolic effects, bone effects taken together will give us a great sense of where it could fit before anti-TNFs, even after we're studying patients that have failed anti-TNFs in this Phase 2 study. So, taken together, that will give us a really good sense of where to go. And then remember, we're also going to get data in polymyalgia rheumatic.
It's not an uncommon disease, and these patients are -- many of them are steroid-dependent, 50% or so three years and going and they can't withdraw from steroids and maybe a third can be five plus six years. They're stuck on steroids. So we'll see that data where we're able to prevent them from flaring and to be able to reduce their systemic steroid dose. So, there's multiple facets to this and potentially a number of opportunities and then later on in Crohn's disease as well.
Liz Shea -- Vice President, Investor Relations
Thanks, Colin.
Operator
Our next question is from Chris Shibutani with Goldman Sachs.
Chris Shibutani -- Goldman Sachs -- Analyst
Two questions, if I could. For Skyrizi, if I could just return to this question of how you're thinking about the long-term guidance. I think on Skyrizi, recalling that you said $7.5 billion, consisting of about six from the psoriatic complex. And yet you're almost already approaching something close to $5 billion.
So, can you tell us how you're thinking about how that could factor in any long-term thinking? And then, for epcoritamab, positioning of that treatment in the overall treatment paradigm. How are you thinking about that in relation to, for instance, CAR-T therapy treatment options before, after? Thank you.
Rob Michael -- Executive Vice President and Chief Financial Officer
Chris, this is Rob. I'll take that question. So look, we're very encouraged by Skyrizi's continued strong performance. We remain confident in our ability to achieve or exceed that 2025 guidance.
Now, keep in mind, I mean, the Street also reflects that too. Street is about $400 million higher than that $7.5 billion. That said, we don't intend on frequently updating that guidance. Obviously, we'll provide that guidance update every few years or if there's an event or there's a major disconnect.
So obviously, if the Street was way off, we want to point that out. But overall, we're very encouraged about the uptake for Skyrizi. It's clearly demonstrating its ability to drive long-term growth for AbbVie, and we'll provide an update for long-term guidance at the appropriate time.
Neil Gallagher -- Vice President and Chief Medical Officer
Thanks. And on the epcoritamab question. So I'm not going to go through all of the data points again, we've described them several times in the public domain. What I would remind you of is that we've observed extremely robust efficacy in a heavily pretreated population.
Now it's true to say that 40% of those patients have sailed CAR-Ts, but 60% of those patients didn't sail CAR-T. Therefore, our expectation, our intention, rather, and as we've mentioned earlier on in Tom's prepared remarks, we are anticipating filing for accelerated approval during the second half of this year. And I think that what you can expect is that we believe that the total population, the total relapsed/refractory population, whether or not they sail CAR-Ts should have access to epcoritamab because of the strength of the data overall. In terms of future positioning, we've also discussed in the past our intention of initiating multiple phase -- additional Phase 3, the confirmatory study for the DLBCL application what would be the confirmatory study, the Phase 3 study is ongoing.
That's in the relapsed/refractory setting. And our anticipation is that we will initiate multiple additional Phase 3s, both in DLBCL and other indications over the coming 12 to 18 months.
Jeff Stewart -- Executive Vice President, Commercial Operations
Maybe I could just build on that. Chris, it's Jeff. So, we've started to talk to different types of physicians, whether they're in the CAR-T centers or certainly the community centers. We're increasingly believing that this lymphoma is treated in the community centers.
And so, what we hear, at least at a high level from our research so far is wow, that efficacy is incredibly impressive, even after CAR-T. But where they go is this simple subcu of epcoritamab may be the fastest way to deliver T cells to my patients I'm dealing with. So to build on Neil's point, that data doesn't look like it's niching the drug. In fact, it looks like it's sort of contributing to the idea of like this is a democratized type of medication for the lymphoma.
So, it's very encouraging from our initial work that we're doing with physicians.
Liz Shea -- Vice President, Investor Relations
Thanks, Chris. Operator, we have time for one final question.
Operator
And that question comes from David Risinger with SVB Securities.
David Risinger -- SVB Securities -- Analyst
Yes. Thanks very much, and thanks for all the details on today's call. Rick, I was hoping that you could help us to understand the current M&A landscape, how would you characterize it broadly? And then, if you could also comment more specifically on AbbVie with respect to the transaction opportunity set for AbbVie. Thanks very much.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
I think, if you look at the M&A environment, I think many players are trying to add to their portfolios. I think there's less of an appetite for larger transactions right now in general across the industry. Some of that's probably predicated on the fact that the FTC has been pretty tough in their language around larger kinds of transactions and your ability to be able to get those through. And I think as it relates to us, I mean, we have continued to execute the strategy that we put in place after the Allergan transaction.
Allergan, obviously brought us a tremendous amount of diversity. That transaction has been highly successful and has really changed the look and the shape of AbbVie and it has clearly enhanced our performance, and we've done quite well. Our focus is continuing to look for opportunities to be able to fill out our portfolio in areas that we believe there are opportunities to bring in strategic assets. We're probably working more on earlier-stage assets add to our R&D pipeline.
Epcoritamab is a good example of the kinds of things that we're out looking for and finding, to supplement the overall pipeline. I think that strategy has worked well, and it's a strategy that we'll continue to do going forward.
Liz Shea -- Vice President, Investor Relations
Thanks, David. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Liz Shea -- Vice President, Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Commercial Operations
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Rob Michael -- Executive Vice President and Chief Financial Officer
Andrew Baum -- Citi -- Analyst
Terence Flynn -- Morgan Stanley -- Analyst
Mohit Bansal -- Wells Fargo Securities -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Chris Schott -- J.P. Morgan -- Analyst
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Steve Scala -- Cowen and Company -- Analyst
Roopal Thakkar -- Vice President, Regulatory Affairs
Chris Raymond -- Piper Sandler -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Colin Bristow -- UBS -- Analyst
Chris Shibutani -- Goldman Sachs -- Analyst
Neil Gallagher -- Vice President and Chief Medical Officer
David Risinger -- SVB Securities -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) Q2 2022 Earnings Call Jul 29, 2022, 9:00 a.m. Welcome to the AbbVie second quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President and Chief Financial Officer Andrew Baum -- Citi -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Chris Schott -- J.P. Morgan -- Analyst Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Steve Scala -- Cowen and Company -- Analyst Roopal Thakkar -- Vice President, Regulatory Affairs Chris Raymond -- Piper Sandler -- Analyst Tim Anderson -- Wolfe Research -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Colin Bristow -- UBS -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Neil Gallagher -- Vice President and Chief Medical Officer David Risinger -- SVB Securities -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q2 2022 Earnings Call Jul 29, 2022, 9:00 a.m. Welcome to the AbbVie second quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. | Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President and Chief Financial Officer Andrew Baum -- Citi -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Chris Schott -- J.P. Morgan -- Analyst Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Steve Scala -- Cowen and Company -- Analyst Roopal Thakkar -- Vice President, Regulatory Affairs Chris Raymond -- Piper Sandler -- Analyst Tim Anderson -- Wolfe Research -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Colin Bristow -- UBS -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Neil Gallagher -- Vice President and Chief Medical Officer David Risinger -- SVB Securities -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q2 2022 Earnings Call Jul 29, 2022, 9:00 a.m. Welcome to the AbbVie second quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. | AbbVie (NYSE: ABBV) Q2 2022 Earnings Call Jul 29, 2022, 9:00 a.m. Welcome to the AbbVie second quarter 2022earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. |
23213.0 | 2022-07-29 00:00:00 UTC | AbbVie (ABBV) Q2 Earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q2-earnings-beat-estimates | nan | nan | AbbVie (ABBV) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.31 per share. This compares to earnings of $3.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 1.81%. A quarter ago, it was expected that this drugmaker would post earnings of $3.15 per share when it actually produced earnings of $3.16, delivering a surprise of 0.32%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.58 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $13.96 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AbbVie shares have added about 10.6% since the beginning of the year versus the S&P 500's decline of -14.6%.
What's Next for AbbVie?
While AbbVie has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AbbVie: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.67 on $15.26 billion in revenues for the coming quarter and $13.93 on $59.66 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Eli Lilly (LLY), has yet to report results for the quarter ended June 2022. The results are expected to be released on August 4.
This drugmaker is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of -3.7%. The consensus EPS estimate for the quarter has been revised 3.4% higher over the last 30 days to the current level.
Eli Lilly's revenues are expected to be $6.9 billion, up 2.4% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.31 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.58 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.48%. AbbVie shares have added about 10.6% since the beginning of the year versus the S&P 500's decline of -14.6%. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.58 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.48%. AbbVie (ABBV) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.31 per share. AbbVie shares have added about 10.6% since the beginning of the year versus the S&P 500's decline of -14.6%. | AbbVie (ABBV) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.31 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.58 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.48%. AbbVie shares have added about 10.6% since the beginning of the year versus the S&P 500's decline of -14.6%. | AbbVie (ABBV) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.31 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.58 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.48%. AbbVie shares have added about 10.6% since the beginning of the year versus the S&P 500's decline of -14.6%. |
23214.0 | 2022-07-29 00:00:00 UTC | Why AbbVie Stock Is Tanking Today | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-is-tanking-today | nan | nan | What happened
Shares of the Illinois-based drugmaker AbbVie (NYSE: ABBV) were down by a hefty 5% as of 2:32 p.m. ET Friday afternoon. As a result, the Dividend Aristocrat's market capitalization has slipped by a staggering $13.2 billion today.
Why are investors hitting the exits today? Ahead of the opening bell, AbbVie announced its 2022 second-quarter earnings. With biosimilar competition eroding the sales of its top-selling anti-inflammatory medication, Humira, in Europe, investors were hoping to see its aesthetics and cancer portfolios pick up the slack. Unfortunately, these two key franchises posted unusually weak financial results for the three-month period.
Image source: Getty Images.
So what
Specifically, AbbVie's aesthetics portfolio posted a 4.4% dip in year-over-year sales in Q2 due to the impact of COVID-19 restrictions in China, as well as the suspension of operations in Russia.
On a similar note, the biopharma's blood cancer franchise saw its global revenue sink by an eye-popping 9.1% in the second quarter, relative to the same period a year ago. AbbVie's normally strong cancer unit contracted in the most recent quarter mainly due to a 17.1% drop in net revenue for the all-star blood disorder medication Imbruvica. The drug appears to be losing market share to newer competitors such as AstraZeneca's Calquence.
Now what
Is AbbVie's stock a buy on today's downturn? Over the first half of 2022, the drugmaker's shares were one of the few bright spots in the turbulent pharmaceutical space. AbbVie's stock, for instance, was up by a handsome 10.6% for the year prior to today's dip. Investors flocked to AbbVie earlier this year due to its top-notch dividend yield, strong growth prospects, and elite management team.
As today's earnings report shows, though, even gold-star companies like AbbVie can't entirely escape this rough global environment. Nonetheless, the drugmaker's stock is still a far safer investing vehicle than most of its large-cap biopharma peers. So, if you're looking for a compelling entry point into this Dividend Aristocrat, today's pullback might be your ticket.
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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. | So what Specifically, AbbVie's aesthetics portfolio posted a 4.4% dip in year-over-year sales in Q2 due to the impact of COVID-19 restrictions in China, as well as the suspension of operations in Russia. AbbVie's normally strong cancer unit contracted in the most recent quarter mainly due to a 17.1% drop in net revenue for the all-star blood disorder medication Imbruvica. What happened Shares of the Illinois-based drugmaker AbbVie (NYSE: ABBV) were down by a hefty 5% as of 2:32 p.m. | So what Specifically, AbbVie's aesthetics portfolio posted a 4.4% dip in year-over-year sales in Q2 due to the impact of COVID-19 restrictions in China, as well as the suspension of operations in Russia. What happened Shares of the Illinois-based drugmaker AbbVie (NYSE: ABBV) were down by a hefty 5% as of 2:32 p.m. Ahead of the opening bell, AbbVie announced its 2022 second-quarter earnings. | Now what Is AbbVie's stock a buy on today's downturn? AbbVie's stock, for instance, was up by a handsome 10.6% for the year prior to today's dip. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | Now what Is AbbVie's stock a buy on today's downturn? * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! What happened Shares of the Illinois-based drugmaker AbbVie (NYSE: ABBV) were down by a hefty 5% as of 2:32 p.m. |
23215.0 | 2022-07-29 00:00:00 UTC | AbbVie Confirms FY22 Adj. EPS Outlook - Update | ABBV | https://www.nasdaq.com/articles/abbvie-confirms-fy22-adj.-eps-outlook-update | nan | nan | (RTTNews) - While reporting financial results for the second quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) confirmed its adjusted earnings guidance for the full-year 2022.
For fiscal 2022, AbbVie continues to project adjusted earnings in a range of $13.78 to $13.98, which includes an unfavorable impact of $0.23 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2022.
However, the adjusted earnings guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the second quarter of 2022, as both cannot be reliably forecasted.
On average, 22 analysts polled by Thomson Reuters expect the company to report earnings of $13.91 per share for the year. Analysts' estimates typically exclude special items.
"The momentum of our business, combined with advances across our pipeline continue to support AbbVie's promising long-term outlook," said Richard Gonzalez, chairman and CEO.
For more earnings news, earnings calendar, and earnings for stocks, 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) - While reporting financial results for the second quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) confirmed its adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie continues to project adjusted earnings in a range of $13.78 to $13.98, which includes an unfavorable impact of $0.23 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2022. "The momentum of our business, combined with advances across our pipeline continue to support AbbVie's promising long-term outlook," said Richard Gonzalez, chairman and CEO. | (RTTNews) - While reporting financial results for the second quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) confirmed its adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie continues to project adjusted earnings in a range of $13.78 to $13.98, which includes an unfavorable impact of $0.23 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2022. "The momentum of our business, combined with advances across our pipeline continue to support AbbVie's promising long-term outlook," said Richard Gonzalez, chairman and CEO. | For fiscal 2022, AbbVie continues to project adjusted earnings in a range of $13.78 to $13.98, which includes an unfavorable impact of $0.23 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2022. (RTTNews) - While reporting financial results for the second quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) confirmed its adjusted earnings guidance for the full-year 2022. "The momentum of our business, combined with advances across our pipeline continue to support AbbVie's promising long-term outlook," said Richard Gonzalez, chairman and CEO. | (RTTNews) - While reporting financial results for the second quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) confirmed its adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie continues to project adjusted earnings in a range of $13.78 to $13.98, which includes an unfavorable impact of $0.23 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2022. "The momentum of our business, combined with advances across our pipeline continue to support AbbVie's promising long-term outlook," said Richard Gonzalez, chairman and CEO. |
23216.0 | 2022-07-29 00:00:00 UTC | AbbVie sets aside $2 billion to settle U.S. opioid claims | ABBV | https://www.nasdaq.com/articles/abbvie-sets-aside-%242-billion-to-settle-u.s.-opioid-claims | nan | nan | Compares profit with estimates, adds share movement
July 29 (Reuters) - AbbVie Inc ABBV.N has set aside about $2 billion to resolve thousands of lawsuits against its Allergan unit over the marketing of its opioid products, the company said on Friday.
No final deal has been announced. AbbVie faces more than 3,000 lawsuits from state and local governments around the country over the drug. It has denied wrongdoing.
The company recorded $2.20 billion for litigation in the second quarter, mainly because of a charge tied to a potential settlement of lawsuits involving Allergan's past sales of opioid products. That includes opioid painkiller Kadian.
The charge comes days after Teva Pharmaceutical Industries Ltd TEVA.N announced a $4.35 billion settlement of opioid lawsuits.
Teva acquired Allergan's generic drugs business in 2016, and the companies' settlement efforts are linked. Teva's settlement was contingent on Allergan reaching a nationwide deal.
Despite the charge, AbbVie on Friday reported an adjusted profit of $3.37 per share, beating the $3.31 expected by analysts, according to Refinitiv data. The results were buoyed by strong demand for the company's plaque psoriasis drug Skyrizi and Botox anti-wrinkle injection.
Sales of Skyrizi surged 86% to $1.25 billion, beating market estimates. AbbVie is counting on the drug, as well as rheumatoid arthritis treatment Rinvoq, to make up for the sales hit from the impending loss of patent exclusivity for its blockbuster drug Humira. Rinvoq's sales rose 56.3%.
But weak demand for its cancer drugs Imbruvica and Venclexta weighed on overall sales, which at $14.58 billion were below analysts' expectations of $14.64 billion.
Imbruvica sales of $1.15 billion missed estimates of $1.28 billion.
AbbVie shares fell 1.3% to $147.80 in premarket trading.
(Reporting by Manas Mishra in Bengaluru and Brendan Pierson in New York; Editing by Aditya Soni)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Compares profit with estimates, adds share movement July 29 (Reuters) - AbbVie Inc ABBV.N has set aside about $2 billion to resolve thousands of lawsuits against its Allergan unit over the marketing of its opioid products, the company said on Friday. Despite the charge, AbbVie on Friday reported an adjusted profit of $3.37 per share, beating the $3.31 expected by analysts, according to Refinitiv data. AbbVie faces more than 3,000 lawsuits from state and local governments around the country over the drug. | Despite the charge, AbbVie on Friday reported an adjusted profit of $3.37 per share, beating the $3.31 expected by analysts, according to Refinitiv data. Compares profit with estimates, adds share movement July 29 (Reuters) - AbbVie Inc ABBV.N has set aside about $2 billion to resolve thousands of lawsuits against its Allergan unit over the marketing of its opioid products, the company said on Friday. AbbVie faces more than 3,000 lawsuits from state and local governments around the country over the drug. | Compares profit with estimates, adds share movement July 29 (Reuters) - AbbVie Inc ABBV.N has set aside about $2 billion to resolve thousands of lawsuits against its Allergan unit over the marketing of its opioid products, the company said on Friday. AbbVie faces more than 3,000 lawsuits from state and local governments around the country over the drug. Despite the charge, AbbVie on Friday reported an adjusted profit of $3.37 per share, beating the $3.31 expected by analysts, according to Refinitiv data. | Despite the charge, AbbVie on Friday reported an adjusted profit of $3.37 per share, beating the $3.31 expected by analysts, according to Refinitiv data. Compares profit with estimates, adds share movement July 29 (Reuters) - AbbVie Inc ABBV.N has set aside about $2 billion to resolve thousands of lawsuits against its Allergan unit over the marketing of its opioid products, the company said on Friday. AbbVie faces more than 3,000 lawsuits from state and local governments around the country over the drug. |
23217.0 | 2022-07-29 00:00:00 UTC | AbbVie Q2 22 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q2-22-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on July 29, 2022, to discuss Q2 22 earnings results.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on July 29, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on July 29, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on July 29, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on July 29, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23218.0 | 2022-07-29 00:00:00 UTC | Top Stock Market News For Today July 29, 2022 | ABBV | https://www.nasdaq.com/articles/top-stock-market-news-for-today-july-29-2022 | nan | nan | Stock Market Futures Gain Ahead Of Key Inflation Data
U.S. stock futures are trading higher early Friday morning. In general, this could be due to better-than-expected big tech earnings, and key GDP data released on Thursday. Investors will get earnings data from more notable names in the stock on Friday. Such as Chevron (NYSE: CVX), AbbVie (NYSE: ABBV), Colgate-Palmolive (NYSE: CL), and many others.
The stock market was looking to log its third straight day of gains. This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Additionally, the news adds fuel to a positively-received second quarter U.S. corporate earnings season. Specifically, almost half of the companies already reporting. According to Refinitiv, the S&P 500 has notched in a blended profit growth rate of 7.6%, with 76% exceeding profit estimates. Moving along, as of 6:07 am ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.28%, 0.76%, and 1.20% respectively.
Amazon (AMZN Stock) Jumps After Posting Strong Earnings Beat
Starting us off, let’s look at Amazon.com, Inc. (AMZN). Shares of AMZN stock jumped more than 12% in after-hours trading on Thursday to $137 per share. This comes after the company reported its second quarter of 2022 fiscal earnings.
In the report, Amazon reported earnings per share of $0.10 on revenue of $121.2 billion. Compared with, wall street consensus estimates of $0.15 per share on revenue of $119.5 billion. Furthermore, The company reported upbeat guidance for the third quarter. In detail, it estimates third-quarter revenue of $125.0 billion to $130.0 billion. The current consensus revenue estimate is $127.8 billion.
“Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” stated Andy Jassy, Amazon CEO.
Source: TD Ameritrade TOS
[Read More] Food Stocks To Invest In 2022? 4 In Focus
Shares Of Apple (AMZN Stock) Rally After Reporting Stronger-Than-Expected Third Quarter Earnings
Next, let’s check out consumer tech giant Apple. Shares of AAPL stock rallied over 2% in Thursday’s extended trading session to $161.10 per share. This is contributed to the company reporting better-than-expected third-quarter fiscal earnings.
Diving right in, Apple (AAPL) reported earnings of $1.20 per share on revenue of $83.0 billion. The consensus earnings estimate was $1.14 per share on revenue of $82.4 billion. Furthermore, the company noted on its conference call that it estimates fourth-quarter revenue to be higher than $84.92 billion. This is in comparison with current wall street estimates of $89.92 billion for the quarter.
“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.“
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. | Such as Chevron (NYSE: CVX), AbbVie (NYSE: ABBV), Colgate-Palmolive (NYSE: CL), and many others. In general, this could be due to better-than-expected big tech earnings, and key GDP data released on Thursday. Additionally, the news adds fuel to a positively-received second quarter U.S. corporate earnings season. | Such as Chevron (NYSE: CVX), AbbVie (NYSE: ABBV), Colgate-Palmolive (NYSE: CL), and many others. Stock Market Futures Gain Ahead Of Key Inflation Data U.S. stock futures are trading higher early Friday morning. This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). | Such as Chevron (NYSE: CVX), AbbVie (NYSE: ABBV), Colgate-Palmolive (NYSE: CL), and many others. In the report, Amazon reported earnings per share of $0.10 on revenue of $121.2 billion. 4 In Focus Shares Of Apple (AMZN Stock) Rally After Reporting Stronger-Than-Expected Third Quarter Earnings Next, let’s check out consumer tech giant Apple. | Such as Chevron (NYSE: CVX), AbbVie (NYSE: ABBV), Colgate-Palmolive (NYSE: CL), and many others. This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). In the report, Amazon reported earnings per share of $0.10 on revenue of $121.2 billion. |
23219.0 | 2022-07-29 00:00:00 UTC | AbbVie Q2 Profit Increases, beats estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q2-profit-increases-beats-estimates | nan | nan | (RTTNews) - AbbVie (ABBV) reported a profit for its second quarter that increased from last year and beat the Street estimates.
The company's earnings came in at $924 million, or $0.51 per share. This compares with $766 million, or $0.42 per share, in last year's second quarter.
Excluding items, AbbVie reported adjusted earnings of $3.37 per share for the period.
Analysts on average had expected the company to earn $3.31 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 4.4% to $14.58 billion from $13.96 billion last year.
AbbVie earnings at a glance (GAAP) :
-Earnings (Q2): $924 Mln. vs. $766 Mln. last year. -EPS (Q2): $0.51 vs. $0.42 last year. -Analyst Estimate: $3.31 -Revenue (Q2): $14.58 Bln vs. $13.96 Bln last year.
-Guidance: Full year EPS guidance: $13.78 - $13.98
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) reported a profit for its second quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $3.37 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q2): $924 Mln. | Excluding items, AbbVie reported adjusted earnings of $3.37 per share for the period. (RTTNews) - AbbVie (ABBV) reported a profit for its second quarter that increased from last year and beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q2): $924 Mln. | (RTTNews) - AbbVie (ABBV) reported a profit for its second quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $3.37 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q2): $924 Mln. | Excluding items, AbbVie reported adjusted earnings of $3.37 per share for the period. (RTTNews) - AbbVie (ABBV) reported a profit for its second quarter that increased from last year and beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q2): $924 Mln. |
23220.0 | 2022-07-28 00:00:00 UTC | Noteworthy Thursday Option Activity: RIOT, ABBV, INVH | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-riot-abbv-invh | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Riot Blockchain Inc (Symbol: RIOT), where a total volume of 90,462 contracts has been traded thus far today, a contract volume which is representative of approximately 9.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.1% of RIOT's average daily trading volume over the past month, of 18.4 million shares. Especially high volume was seen for the $7.50 strike call option expiring July 29, 2022, with 13,562 contracts trading so far today, representing approximately 1.4 million underlying shares of RIOT. Below is a chart showing RIOT's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,701 contracts, representing approximately 2.6 million underlying shares or approximately 48.7% of ABBV's average daily trading volume over the past month, of 5.3 million shares. Particularly high volume was seen for the $155 strike call option expiring July 29, 2022, with 9,400 contracts trading so far today, representing approximately 940,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange:
And Invitation Homes Inc (Symbol: INVH) saw options trading volume of 16,696 contracts, representing approximately 1.7 million underlying shares or approximately 47.7% of INVH's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $40 strike call option expiring October 21, 2022, with 8,217 contracts trading so far today, representing approximately 821,700 underlying shares of INVH. Below is a chart showing INVH's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for RIOT options, ABBV options, or INVH 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 $155 strike call option expiring July 29, 2022, with 9,400 contracts trading so far today, representing approximately 940,000 underlying shares of ABBV. Below is a chart showing RIOT's trailing twelve month trading history, with the $7.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,701 contracts, representing approximately 2.6 million underlying shares or approximately 48.7% of ABBV's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And Invitation Homes Inc (Symbol: INVH) saw options trading volume of 16,696 contracts, representing approximately 1.7 million underlying shares or approximately 47.7% of INVH's average daily trading volume over the past month, of 3.5 million shares. | Below is a chart showing RIOT's trailing twelve month trading history, with the $7.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,701 contracts, representing approximately 2.6 million underlying shares or approximately 48.7% of ABBV's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And Invitation Homes Inc (Symbol: INVH) saw options trading volume of 16,696 contracts, representing approximately 1.7 million underlying shares or approximately 47.7% of INVH's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $155 strike call option expiring July 29, 2022, with 9,400 contracts trading so far today, representing approximately 940,000 underlying shares of ABBV. | Below is a chart showing RIOT's trailing twelve month trading history, with the $7.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,701 contracts, representing approximately 2.6 million underlying shares or approximately 48.7% of ABBV's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And Invitation Homes Inc (Symbol: INVH) saw options trading volume of 16,696 contracts, representing approximately 1.7 million underlying shares or approximately 47.7% of INVH's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $155 strike call option expiring July 29, 2022, with 9,400 contracts trading so far today, representing approximately 940,000 underlying shares of ABBV. | Below is a chart showing RIOT's trailing twelve month trading history, with the $7.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,701 contracts, representing approximately 2.6 million underlying shares or approximately 48.7% of ABBV's average daily trading volume over the past month, of 5.3 million shares. Particularly high volume was seen for the $155 strike call option expiring July 29, 2022, with 9,400 contracts trading so far today, representing approximately 940,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And Invitation Homes Inc (Symbol: INVH) saw options trading volume of 16,696 contracts, representing approximately 1.7 million underlying shares or approximately 47.7% of INVH's average daily trading volume over the past month, of 3.5 million shares. |
23221.0 | 2022-07-28 00:00:00 UTC | Here's How Long It Could Realistically Take to Turn $25,000 Into $1 Million | ABBV | https://www.nasdaq.com/articles/heres-how-long-it-could-realistically-take-to-turn-%2425000-into-%241-million | nan | nan | Betting on crypto and meme stocks has made many people rich, but it's also caused significant losses for those who haven't been as lucky. Investing for the long term is safer, and it's much more likely that you'll end up with a big profit in the end. There's no sugar-coating it: It does require patience. And below, I'll show you just how long it may take for an investment of $25,000 to get to $1 million, without having to take risks to score a windfall.
Even a 1-percentage-point difference can have a massive impact on your portfolio
It may seem trivial, but even a difference of a percentage point or two can have a dramatic impact on your investment. If your $25,000 investment averaged an 11% growth rate, it would take 36 years of compounding before it would reach $1 million. At a 13% growth rate, you would hit that mark at the end of year 31. And if you've got a top-performing investment that has been rising by an average of 15%, then it would take 27 years to hit $1 million.
Chart by author.
The key takeaway here is that unless you average a significantly high return of more than 15%, it'll likely take more than 25 years of compounding for a $25,000 investment to get to $1 million. One way to accelerate these gains is by investing more money.
Achieving high growth rates can be difficult over the long term (especially while also keeping your risk low), but one way you can do so is by investing in the healthcare industry.
Healthcare stocks can be ideal options for long-term gains
The S&P 500 has historically returned 10% per year. However, there are many growth stocks that can do better, such as drugmaker Eli Lilly. Over the past five years, it has generated total returns (including dividends) of 345% versus the S&P's 75%. Another top drugmaker, AbbVie, has also achieved impressive total returns of 160% over the same period. These stocks could make for solid long-term investments that have the potential to outperform the markets. They're both growing, profitable businesses in a relatively safe sector.
One of the benefits of investing in healthcare stocks is they can provide more stability given the nature of their business, which is to provide essential products and services for patients. And with the Health Care Select Sector SPDR ETF, you can gain exposure to healthcare stocks within the S&P 500. This includes Eli Lilly, AbbVie, and other top healthcare stocks like Johnson & Johnson and UnitedHealth Group. During the past five years, the Health Care Select Sector SPDR has generated returns comparable to those of the S&P 500.
The S&P serves as a good benchmark for 10% returns. But if you've found a solid growth investment, it's possible to outperform it.
Investing for the long haul gives you better odds of success
It can be mighty tempting to buy up the latest new cryptocurrency and jump on the bandwagon, especially when you see its value rising rapidly. But the danger of following short-term trends and hype is that it can lead to disaster for your portfolio. When you invest for the long term and focus on companies with strong fundamentals, you'll be more likely to earn a great return in the end.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another top drugmaker, AbbVie, has also achieved impressive total returns of 160% over the same period. This includes Eli Lilly, AbbVie, and other top healthcare stocks like Johnson & Johnson and UnitedHealth Group. Betting on crypto and meme stocks has made many people rich, but it's also caused significant losses for those who haven't been as lucky. | This includes Eli Lilly, AbbVie, and other top healthcare stocks like Johnson & Johnson and UnitedHealth Group. Another top drugmaker, AbbVie, has also achieved impressive total returns of 160% over the same period. During the past five years, the Health Care Select Sector SPDR has generated returns comparable to those of the S&P 500. | This includes Eli Lilly, AbbVie, and other top healthcare stocks like Johnson & Johnson and UnitedHealth Group. Another top drugmaker, AbbVie, has also achieved impressive total returns of 160% over the same period. 10 stocks we like better than Health Care SPDR When our award-winning analyst team has a stock tip, it can pay to listen. | Another top drugmaker, AbbVie, has also achieved impressive total returns of 160% over the same period. This includes Eli Lilly, AbbVie, and other top healthcare stocks like Johnson & Johnson and UnitedHealth Group. Achieving high growth rates can be difficult over the long term (especially while also keeping your risk low), but one way you can do so is by investing in the healthcare industry. |
23222.0 | 2022-07-28 00:00:00 UTC | Pfizer (PFE) Q2 Earnings and Revenues Surpass Estimates | ABBV | https://www.nasdaq.com/articles/pfizer-pfe-q2-earnings-and-revenues-surpass-estimates | nan | nan | Pfizer (PFE) came out with quarterly earnings of $2.04 per share, beating the Zacks Consensus Estimate of $1.75 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 16.57%. A quarter ago, it was expected that this drugmaker would post earnings of $1.66 per share when it actually produced earnings of $1.62, delivering a surprise of -2.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Pfizer, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $27.74 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 5.39%. This compares to year-ago revenues of $18.98 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Pfizer shares have lost about 12% since the beginning of the year versus the S&P 500's decline of -15.6%.
What's Next for Pfizer?
While Pfizer has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Pfizer: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.90 on $25.48 billion in revenues for the coming quarter and $6.60 on $104.6 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended June 2022. The results are expected to be released on July 29.
This drugmaker is expected to post quarterly earnings of $3.31 per share in its upcoming report, which represents a year-over-year change of +6.4%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level.
AbbVie's revenues are expected to be $14.65 billion, up 5% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended June 2022. AbbVie's revenues are expected to be $14.65 billion, up 5% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report | Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended June 2022. AbbVie's revenues are expected to be $14.65 billion, up 5% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report | Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended June 2022. AbbVie's revenues are expected to be $14.65 billion, up 5% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report | Another stock from the same industry, AbbVie (ABBV), has yet to report results for the quarter ended June 2022. AbbVie's revenues are expected to be $14.65 billion, up 5% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23223.0 | 2022-07-28 00:00:00 UTC | Pre-Market Earnings Report for July 29, 2022 : XOM, PG, CVX, ABBV, AZN, ENB, CHTR, CL, AON, PSX, IMO, ES | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-july-29-2022-%3A-xom-pg-cvx-abbv-azn-enb-chtr-cl-aon-psx-0 | nan | nan | The following companies are expected to report earnings prior to market open on 07/29/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending June 30, 2022. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.80. This value represents a 245.45% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 1st calendar quarter of 2022 by -8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for XOM is 7.64 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Procter & Gamble Company (PG)is reporting for the quarter ending June 30, 2022. The cleaning company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.23. This value represents a 8.85% increase compared to the same quarter last year. In the past year PG has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 3.91%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PG is 24.98 vs. an industry ratio of 24.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending June 30, 2022. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $5.02. This value represents a 193.57% increase compared to the same quarter last year. The last two quarters CVX had negative earnings surprises; the latest report they missed by -2.33%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVX is 8.26 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 3 analysts that follow the stock is $3.42. This value represents a 9.97% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90.
Astrazeneca PLC (AZN)is reporting for the quarter ending June 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.78. This value represents a 73.33% increase compared to the same quarter last year. AZN missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -14.29%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AZN is 20.58 vs. an industry ratio of 15.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Enbridge Inc (ENB)is reporting for the quarter ending June 30, 2022. The oil (production/pipeline) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.56. This value represents a 1.82% increase compared to the same quarter last year. The last two quarters ENB had negative earnings surprises; the latest report they missed by -1.49%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ENB is 19.06 vs. an industry ratio of 25.30.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending June 30, 2022. The cable tv company's consensus earnings per share forecast from the 13 analysts that follow the stock is $6.92. This value represents a 30.81% increase compared to the same quarter last year. In the past year CHTR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.81%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHTR is 15.83 vs. an industry ratio of 29.10.
Colgate-Palmolive Company (CL)is reporting for the quarter ending June 30, 2022. The cleaning company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.71. This value represents a 11.25% decrease compared to the same quarter last year. In the past year CL has met analyst expectations three times and beat the expectations the other quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CL is 26.08 vs. an industry ratio of 24.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending June 30, 2022. The insurance brokers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.57. This value represents a 12.23% increase compared to the same quarter last year. AON missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.62%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AON is 21.74 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending June 30, 2022. The oil refining company's consensus earnings per share forecast from the 6 analysts that follow the stock is $5.92. This value represents a 700.00% increase compared to the same quarter last year. In the past year PSX has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 15.79%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PSX is 6.10 vs. an industry ratio of 7.80.
Imperial Oil Limited (IMO)is reporting for the quarter ending June 30, 2022. The consensus earnings per share forecast from the 3 analysts that follow the stock is $2.32. IMO reported earnings of $0.41 per share for the same quarter a year ago; representing a a increase of 465.85%.Eversource Energy (ES)is reporting for the quarter ending June 30, 2022. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.84. This value represents a 6.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ES is 20.73 vs. an industry ratio of 11.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. |
23224.0 | 2022-07-28 00:00:00 UTC | Pre-Market Earnings Report for July 29, 2022 : XOM, PG, CVX, ABBV, AZN, ENB, CHTR, CL, AON, PSX, IMO, ES | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-july-29-2022-%3A-xom-pg-cvx-abbv-azn-enb-chtr-cl-aon-psx-imo | nan | nan | The following companies are expected to report earnings prior to market open on 07/29/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending June 30, 2022. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.64. This value represents a 230.91% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 1st calendar quarter of 2022 by -8%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for XOM is 7.64 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Procter & Gamble Company (PG)is reporting for the quarter ending June 30, 2022. The cleaning company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.23. This value represents a 8.85% increase compared to the same quarter last year. In the past year PG has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 3.91%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PG is 24.98 vs. an industry ratio of 24.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending June 30, 2022. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $5.02. This value represents a 193.57% increase compared to the same quarter last year. The last two quarters CVX had negative earnings surprises; the latest report they missed by -2.33%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVX is 8.26 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 3 analysts that follow the stock is $3.42. This value represents a 9.97% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90.
Astrazeneca PLC (AZN)is reporting for the quarter ending June 30, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.78. This value represents a 73.33% increase compared to the same quarter last year. AZN missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -14.29%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AZN is 20.58 vs. an industry ratio of 15.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Enbridge Inc (ENB)is reporting for the quarter ending June 30, 2022. The oil (production/pipeline) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.56. This value represents a 1.82% increase compared to the same quarter last year. The last two quarters ENB had negative earnings surprises; the latest report they missed by -1.49%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ENB is 19.06 vs. an industry ratio of 25.30.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending June 30, 2022. The cable tv company's consensus earnings per share forecast from the 13 analysts that follow the stock is $6.91. This value represents a 30.62% increase compared to the same quarter last year. In the past year CHTR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.81%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHTR is 15.83 vs. an industry ratio of 29.10.
Colgate-Palmolive Company (CL)is reporting for the quarter ending June 30, 2022. The cleaning company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.71. This value represents a 11.25% decrease compared to the same quarter last year. In the past year CL has met analyst expectations three times and beat the expectations the other quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CL is 26.08 vs. an industry ratio of 24.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending June 30, 2022. The insurance brokers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.57. This value represents a 12.23% increase compared to the same quarter last year. AON missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.62%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AON is 21.74 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending June 30, 2022. The oil refining company's consensus earnings per share forecast from the 6 analysts that follow the stock is $5.92. This value represents a 700.00% increase compared to the same quarter last year. In the past year PSX has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 15.79%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PSX is 6.10 vs. an industry ratio of 7.80.
Imperial Oil Limited (IMO)is reporting for the quarter ending June 30, 2022. The consensus earnings per share forecast from the 3 analysts that follow the stock is $2.14. IMO reported earnings of $0.41 per share for the same quarter a year ago; representing a a increase of 421.95%.Eversource Energy (ES)is reporting for the quarter ending June 30, 2022. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.87. This value represents a 10.13% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ES is 20.73 vs. an industry ratio of 11.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 10.77 vs. an industry ratio of 15.90. |
23225.0 | 2022-07-27 00:00:00 UTC | AbbVie's Allergan reaches $2 bln opioid lawsuit settlement - Bloomberg News | ABBV | https://www.nasdaq.com/articles/abbvies-allergan-reaches-%242-bln-opioid-lawsuit-settlement-bloomberg-news | nan | nan | July 27 (Reuters) - AbbVie Inc's ABBV.N unit Allergan has reached an agreement to pay over $2 billion to resolve thousands of lawsuits related to the marketing of its opioid painkiller, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The deal would settle more than 3,000 lawsuits filed by state and local governments, but complete terms of the settlement are still being chalked out, according to the report. Thousands of lawsuits have been filed against drugmakers, distributors and pharmacies over the U.S. opioid crisis.
Israel-based Teva Pharmaceutical Industries TEVA.TA on Tuesday announced a $4.35 billion proposed nationwide settlement of its U.S. opioid lawsuits.
AbbVie did not immediately respond to a Reuters request for a comment.
(Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri)
((Amruta.Khandekar@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. | July 27 (Reuters) - AbbVie Inc's ABBV.N unit Allergan has reached an agreement to pay over $2 billion to resolve thousands of lawsuits related to the marketing of its opioid painkiller, Bloomberg News reported on Wednesday, citing people familiar with the matter. AbbVie did not immediately respond to a Reuters request for a comment. The deal would settle more than 3,000 lawsuits filed by state and local governments, but complete terms of the settlement are still being chalked out, according to the report. | July 27 (Reuters) - AbbVie Inc's ABBV.N unit Allergan has reached an agreement to pay over $2 billion to resolve thousands of lawsuits related to the marketing of its opioid painkiller, Bloomberg News reported on Wednesday, citing people familiar with the matter. AbbVie did not immediately respond to a Reuters request for a comment. The deal would settle more than 3,000 lawsuits filed by state and local governments, but complete terms of the settlement are still being chalked out, according to the report. | July 27 (Reuters) - AbbVie Inc's ABBV.N unit Allergan has reached an agreement to pay over $2 billion to resolve thousands of lawsuits related to the marketing of its opioid painkiller, Bloomberg News reported on Wednesday, citing people familiar with the matter. AbbVie did not immediately respond to a Reuters request for a comment. The deal would settle more than 3,000 lawsuits filed by state and local governments, but complete terms of the settlement are still being chalked out, according to the report. | July 27 (Reuters) - AbbVie Inc's ABBV.N unit Allergan has reached an agreement to pay over $2 billion to resolve thousands of lawsuits related to the marketing of its opioid painkiller, Bloomberg News reported on Wednesday, citing people familiar with the matter. AbbVie did not immediately respond to a Reuters request for a comment. The deal would settle more than 3,000 lawsuits filed by state and local governments, but complete terms of the settlement are still being chalked out, according to the report. |
23226.0 | 2022-07-27 00:00:00 UTC | Noteworthy ETF Outflows: IVE, BMY, T, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-ive-bmy-t-abbv | 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 S&P 500 Value ETF (Symbol: IVE) where we have detected an approximate $218.5 million dollar outflow -- that's a 0.9% decrease week over week (from 169,150,000 to 167,600,000). Among the largest underlying components of IVE, in trading today Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.1%, AT&T Inc (Symbol: T) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average:
Looking at the chart above, IVE's low point in its 52 week range is $132.18 per share, with $160.38 as the 52 week high point — that compares with a last trade of $141.36. 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 IVE, in trading today Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.1%, AT&T Inc (Symbol: T) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $132.18 per share, with $160.38 as the 52 week high point — that compares with a last trade of $141.36. 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 IVE, in trading today Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.1%, AT&T Inc (Symbol: T) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $132.18 per share, with $160.38 as the 52 week high point — that compares with a last trade of $141.36. 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 IVE, in trading today Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.1%, AT&T Inc (Symbol: T) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Value ETF (Symbol: IVE) where we have detected an approximate $218.5 million dollar outflow -- that's a 0.9% decrease week over week (from 169,150,000 to 167,600,000). For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $132.18 per share, with $160.38 as the 52 week high point — that compares with a last trade of $141.36. | Among the largest underlying components of IVE, in trading today Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.1%, AT&T Inc (Symbol: T) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $132.18 per share, with $160.38 as the 52 week high point — that compares with a last trade of $141.36. 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). |
23227.0 | 2022-07-27 00:00:00 UTC | Merck avoided billions in U.S. tax by offshoring Keytruda profits - senator | ABBV | https://www.nasdaq.com/articles/merck-avoided-billions-in-u.s.-tax-by-offshoring-keytruda-profits-senator | nan | nan | By Michael Erman
July 27 (Reuters) - Drugmaker Merck & Co MRK.N avoided billions of dollars of U.S. taxes in recent years on its top-selling cancer drug Keytruda by booking all the profits from the treatment outside of the United States, according to an ongoing investigation by Democrats on the Senate Finance Committee.
The committee's chairman Senator Ron Wyden of Oregon sent a letter to Merck Chief Executive Robert Davis on Wednesday criticizing the drugmaker for refusing to provide all the information the committee has requested. Wyden's office provided a copy of the letter to Reuters.
Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes.
Wyden said in the letter that Merck was able to avoid U.S. taxes on Keytruda - even on sales in the United States - by holding patents in the Netherlands and manufacturing the drug in Ireland.
"Prior to today, we have received two letters from the Senate Finance Committee requesting responses to questions around our tax rate, and in each case, we have cooperated and responded with information that we believe appropriately addressed their inquiries," Merck said in an emailed statement.
AbbVie did not immediately respond to a request for comment.
Cancer immunotherapy Keytruda is one of the world's top-selling drugs. Merck sold around $17.2 billion of it in 2021, with around $9.8 billion of those sales in the United States.
Merck's effective tax rate last year was 11%, Wyden said in his letter, just over half the current U.S. corporate tax rate of 21%.
Wyden said the $22.4 billion of sales it reported in the United States accounted for 46% of Merck's sales in 2021. Still, the company only reported $1.85 billion in pretax income in the United States for the year - less than 15% of its total pretax income.
Earlier this month, an interim report from the committee said that shifting profits overseas by AbbVie Inc resulted in "stunningly low effective tax rates."
In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda.
(Reporting by Michael Erman Editing by Caroline Humer and Mark Potter)
((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. | Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes. AbbVie did not immediately respond to a request for comment. Earlier this month, an interim report from the committee said that shifting profits overseas by AbbVie Inc resulted in "stunningly low effective tax rates." | Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes. AbbVie did not immediately respond to a request for comment. Earlier this month, an interim report from the committee said that shifting profits overseas by AbbVie Inc resulted in "stunningly low effective tax rates." | Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes. AbbVie did not immediately respond to a request for comment. Earlier this month, an interim report from the committee said that shifting profits overseas by AbbVie Inc resulted in "stunningly low effective tax rates." | Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes. AbbVie did not immediately respond to a request for comment. Earlier this month, an interim report from the committee said that shifting profits overseas by AbbVie Inc resulted in "stunningly low effective tax rates." |
23228.0 | 2022-07-27 00:00:00 UTC | AbbVie Submits Regulatory Applications To FDA, EMA For Upadacitinib For Crohn's Disease In Adults | ABBV | https://www.nasdaq.com/articles/abbvie-submits-regulatory-applications-to-fda-ema-for-upadacitinib-for-crohns-disease-in | nan | nan | (RTTNews) - AbbVie (ABBV) Wednesday said it has submitted regulatory applications for a new indication for upadacitinib or RINVOQ, 45 mg, induction dose, and 15 mg and 30 mg, maintenance dose. The submissions are supported by phase 3 clinical trial, two induction studies and one maintenance study.
According to AbbVie, upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response.
The applications to the U.S. Food and Drug Administration or FDA as well as European Medicines Agency or EMA are intended for moderately to severely active Crohn's disease in adult patients.
Crohn's disease is a progressive, chronic and systemic disease that causes inflammation within the gastrointestinal tract, resulting in persistent diarrhea and abdominal pain.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to AbbVie, upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response. (RTTNews) - AbbVie (ABBV) Wednesday said it has submitted regulatory applications for a new indication for upadacitinib or RINVOQ, 45 mg, induction dose, and 15 mg and 30 mg, maintenance dose. The applications to the U.S. Food and Drug Administration or FDA as well as European Medicines Agency or EMA are intended for moderately to severely active Crohn's disease in adult patients. | (RTTNews) - AbbVie (ABBV) Wednesday said it has submitted regulatory applications for a new indication for upadacitinib or RINVOQ, 45 mg, induction dose, and 15 mg and 30 mg, maintenance dose. According to AbbVie, upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response. The submissions are supported by phase 3 clinical trial, two induction studies and one maintenance study. | (RTTNews) - AbbVie (ABBV) Wednesday said it has submitted regulatory applications for a new indication for upadacitinib or RINVOQ, 45 mg, induction dose, and 15 mg and 30 mg, maintenance dose. According to AbbVie, upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response. The applications to the U.S. Food and Drug Administration or FDA as well as European Medicines Agency or EMA are intended for moderately to severely active Crohn's disease in adult patients. | (RTTNews) - AbbVie (ABBV) Wednesday said it has submitted regulatory applications for a new indication for upadacitinib or RINVOQ, 45 mg, induction dose, and 15 mg and 30 mg, maintenance dose. According to AbbVie, upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response. The submissions are supported by phase 3 clinical trial, two induction studies and one maintenance study. |
23229.0 | 2022-07-27 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy if There's a Stock Market Sell-Off | ABBV | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-if-theres-a-stock-market-sell-off-1 | nan | nan | When there's a market sell-off -- like in recent times -- it's a good idea to have a few dividend stocks in your portfolio. Why? Because they'll provide you with steady income even if the market continues to decline. And in better times, you'll appreciate this recurrent income too.
Today, three healthcare players have shown they are committed to paying a dividend. And they've also shown they can beat the market in times of trouble. I'm talking about AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Cardinal Health (NYSE: CAH). They've outperformed the S&P 500 so far this year. Let's take a closer look at each.
1. AbbVie
AbbVie's dividend payments have more than doubled over the past five years. Back in 2017, the annual dividend was $2.56. By the end of this year, the company will have paid investors $5.64 per share. AbbVie has lifted its dividend for the past 50 years, making it a Dividend King. These are S&P 500 companies that have raised their dividend for at least 50 consecutive years.
But you'll want to own AbbVie for more than just its dividend. Revenue from the company's neuroscience and aesthetics portfolios has been climbing in the double-digits. AbbVie sells popular products such as Botox for therapeutic uses like chronic migraine, and it sells Botox as well as the filler Juvederm for aesthetics uses. The neuroscience and aesthetics portfolios each generated more than $1 billion in revenue during the first quarter.
AbbVie is on its way to holding the biggest share of the prescription drug market by 2026, according to Evaluate Pharma. That's a good reason to be optimistic about more revenue gains ahead -- and the share price could easily follow.
2. Johnson & Johnson
Like AbbVie, J&J is also a Dividend King. This big pharma company has lifted its dividend for six consecutive decades. I like the idea of investing in stocks that have a track record of increasing dividends. If the company has held this sort of policy over time, it means lifting dividends is important to it. And that means it's likely to continue along this path. J&J pays a $4.52 annual dividend. The yield is 2.63%, above the average for the pharmaceutical industry.
Another reason to like J&J is its long history of growing revenue and profit. The measures topped $93 billion and $20 billion, respectively, last year. J&J's consumer health, pharmaceutical, and medtech businesses all grew in the most recent quarter. But the pharmaceutical business remains the biggest revenue driver. Pharma revenue climbed 12% in the quarter to more than $13 billion. That's driven by cancer drug Darzalex, immunosuppressant Stelara, and psoriasis treatment Tremfya.
Considering J&J's products today and the nearly 100 candidates in the pharmaceutical pipeline, the company has what it takes to keep generating major revenue over time.
3. Cardinal Health
Cardinal Health is a distributor of pharmaceutical products that also manufactures laboratory products and offers data solutions for healthcare professionals. The company is a Dividend Aristocrat, meaning it has increased its dividend for at least the past 25 years. Today, the company pays an annual dividend of $1.98. Its yield of 3.48% is above the average of the pharmaceutical industry.
Like the other companies I've mentioned, Cardinal Health is a good dividend stock because it promises recurrent income. But it also offers a track record of revenue growth. In the most recent quarter, Cardinal Health's pharmaceuticals revenue climbed 17% to $41 billion.
Still, the company has been facing some challenges: a non-cash goodwill impairment charge in its medical segment, payments as part of a national opioid settlement, and inflationary pressures and supply chain problems. But here's the good news: These look like temporary challenges. And Cardinal Health has the resources and revenue growth to handle them. The company has about $2 billion in cash and more than $30 billion in total current assets.
So, the long-term picture remains bright. For the long-term investor, an investment in Cardinal Health could pay off -- in dividends and share price growth.
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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. | I'm talking about AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Cardinal Health (NYSE: CAH). AbbVie AbbVie's dividend payments have more than doubled over the past five years. AbbVie has lifted its dividend for the past 50 years, making it a Dividend King. | I'm talking about AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Cardinal Health (NYSE: CAH). AbbVie AbbVie's dividend payments have more than doubled over the past five years. AbbVie has lifted its dividend for the past 50 years, making it a Dividend King. | AbbVie has lifted its dividend for the past 50 years, making it a Dividend King. I'm talking about AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Cardinal Health (NYSE: CAH). AbbVie AbbVie's dividend payments have more than doubled over the past five years. | But you'll want to own AbbVie for more than just its dividend. I'm talking about AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Cardinal Health (NYSE: CAH). AbbVie AbbVie's dividend payments have more than doubled over the past five years. |
23230.0 | 2022-07-26 00:00:00 UTC | Teva reaches proposed $4.35 bln settlement of U.S. opioid lawsuits | ABBV | https://www.nasdaq.com/articles/teva-reaches-proposed-%244.35-bln-settlement-of-u.s.-opioid-lawsuits-0 | nan | nan | By Dietrich Knauth and Nate Raymond
July 26 (Reuters) - Teva Pharmaceutical Industries TEVA.TA on Tuesday announced a $4.35 billion proposed nationwide settlement that could resolve thousands of lawsuits over the drugmaker's alleged role in the U.S. opioid epidemic.
The proposal calls for Teva to pay state and local governments up to $3.7 billion in cash over 13 years plus a contribution of $1.2 billion worth of the opioid overdose reversal drug naloxone. Israel-based Teva also will pay approximately $100 million to Native American tribes and pay attorneys fees incurred by the states, local governments and tribes.
Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price.
The settlement's cash portion is higher than Teva's chief executive suggested in May. CEO Kare Schultz told analysts at the time that he expected the company to pay around $2.6 billion in cash and medicine to reach a nationwide settlement.
The proposed settlement comes as Teva's New York traded shares have fallen 11% so far this year under a cloud of uncertainty over an opioid settlement.
Teva, which still has net debt of some $20 billion, had sought a deal featuring less cash and more medicines, but some states and counties were opposed, questioning the value of the medicine, produced far more cheaply than the prices used in the settlement agreements.
Iowa Attorney General Tom Miller, a lead negotiator for the states, called it "another major step in addressing the opioids crisis."
"We expect these funds to make a significant difference in preventing fatal overdoses and treating opioid addiction disorder," Miller said.
Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. Teva acquired Allergan's generic drugs business in 2016.
For the Teva deal to take effect, Allergan must reach its own nationwide opioid settlement, and the two companies must settle a dispute over the amount Allergan owes Teva for claims filed prior to the 2016 sale.
Allergan did not immediately respond to a request for comment.
The Teva settlement will not be finalized unless a sufficient number of state and local governments agree to accept the terms. Teva has already agreed to settlements with West Virginia, Texas, Florida, Rhode Island and Louisiana, and the value of those will be included in the proposed $3.05 billion cash payout.
The state of New York will not participate in the settlement, and continues to seek a judgment against Teva. A New York jury found the company responsible for the state's opioid crisis in December..
U.S. states, cities and counties filed more than 3,000 lawsuits against opioid manufacturers, distributors and pharmacies, accusing them of downplaying their addiction risk and failing to stop pills from being diverted for illegal use.
The U.S. opioid crisis has caused more than 500,000 overdose deaths over the past two decades, including more than 80,000 in 2021 alone, according to government data.
The company's insistence on including drugs as a major component of its opioid settlements has been a sticking point in past negotiations.
Teva in 2019 proposed to settle its nationwide opioid liability for $250 million in cash and $23 billion in contributed medicines that was rejected by state and local governments.
(Additional reporting by Tom Hals in Wilmington, Delaware and Steven Scheer in Tel Aviv; Editing by Chris Reese and Bill Berkrot)
((thomas.hals@thomsonreuters.com; +1 610 544 2712; Reuters Messaging: thomas.hals.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. By Dietrich Knauth and Nate Raymond July 26 (Reuters) - Teva Pharmaceutical Industries TEVA.TA on Tuesday announced a $4.35 billion proposed nationwide settlement that could resolve thousands of lawsuits over the drugmaker's alleged role in the U.S. opioid epidemic. Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. The proposal calls for Teva to pay state and local governments up to $3.7 billion in cash over 13 years plus a contribution of $1.2 billion worth of the opioid overdose reversal drug naloxone. CEO Kare Schultz told analysts at the time that he expected the company to pay around $2.6 billion in cash and medicine to reach a nationwide settlement. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. The proposal calls for Teva to pay state and local governments up to $3.7 billion in cash over 13 years plus a contribution of $1.2 billion worth of the opioid overdose reversal drug naloxone. For the Teva deal to take effect, Allergan must reach its own nationwide opioid settlement, and the two companies must settle a dispute over the amount Allergan owes Teva for claims filed prior to the 2016 sale. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. The proposal calls for Teva to pay state and local governments up to $3.7 billion in cash over 13 years plus a contribution of $1.2 billion worth of the opioid overdose reversal drug naloxone. For the Teva deal to take effect, Allergan must reach its own nationwide opioid settlement, and the two companies must settle a dispute over the amount Allergan owes Teva for claims filed prior to the 2016 sale. |
23231.0 | 2022-07-26 00:00:00 UTC | Teva reaches proposed $4.35 bln settlement of U.S. opioid lawsuits | ABBV | https://www.nasdaq.com/articles/teva-reaches-proposed-%244.35-bln-settlement-of-u.s.-opioid-lawsuits | nan | nan | By Dietrich Knauth and Nate Raymond
July 26 (Reuters) - Teva Pharmaceutical Industries TEVA.TA on Tuesday announced a $4.35 billion proposed nationwide settlement that could resolve thousands of lawsuits over the drugmaker's alleged role in the U.S. opioid epidemic.
The proposal calls for Teva to pay up to $3.7 billion in cash over 13 years and provide a company estimated $1.2 billion worth the opioid overdose reversal drug naloxone.
U.S. states, cities and counties filed more than 3,000 lawsuits against opioid manufacturers, distributors and pharmacies, accusing them of downplaying their addiction risk and failing to stop pills from being diverted for illegal use.
Teva has denied wrongdoing, saying it sold legal medication that was approved for treatment of pain.
Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price. The cash value of the settlement could reach $4.25 billion if state and local governments opt to receive money in lieu of the drugs.
Israel-based Teva also will pay about $100 million to Native American tribes and pay attorneys fees incurred by the states, local governments and tribes.
The settlement's cash portion is higher than Teva's chief executive suggested in May. CEO Kare Schultz told analysts at the time that he expected the company to pay around $2.6 billion in cash and medicine to reach a nationwide settlement.
Still, in a statement Kare said Teva was "pleased to have reached a nationwide agreement in principle."
Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. Teva acquired Allergan's generic drugs business in 2016.
For the Teva deal to take effect, Allergan must reach its own nationwide opioid settlement, and the two companies must settle a dispute over the amount Allergan owes Teva for claims filed prior to the 2016 sale.
Allergan did not respond to a request for comment.
The Teva settlement will not be finalized unless a sufficient number of state and local governments agree to accept the terms.
The proposed settlement comes as Teva's New York traded shares have fallen 11% so far this year under a cloud of uncertainty over an opioid settlement.
Teva, which still has net debt of some $20 billion, had sought a deal featuring less cash and more medicines, but some states and counties were opposed, questioning the value of the medicine, produced far more cheaply than the prices used in the settlement agreements.
Iowa Attorney General Tom Miller, a lead negotiator for the states, called it "another major step in addressing the opioids crisis."
"We expect these funds to make a significant difference in preventing fatal overdoses and treating opioid addiction disorder," Miller said.
Paul Geller, a lawyer representing local governments in the litigation called the agreement, "an important step that, like the prior opioid supply chain settlements, will add to the influx of critical resources needed to abate the public health crisis ravaging our nation."
STILL MUST BE FINALIZED
Teva has already agreed to settlements with West Virginia, Texas, Florida, Rhode Island and Louisiana, and the value of those will be included in the proposed $3.7 billion cash payout.
The state of New York will not participate in the settlement, and continues to seek a judgment against Teva. A New York jury found the company responsible for the state's opioid crisis in December..
The U.S. opioid crisis has caused more than 500,000 overdose deaths over the past two decades, including more than 80,000 in 2021 alone, according to government data.
The company's insistence on including drugs as a major component of its opioid settlements has been a sticking point in past negotiations.
Teva in 2019 proposed to settle its nationwide opioid liability for $250 million in cash and $23 billion in contributed medicines that was rejected by state and local governments.
Teva and Allergan were among the last defendants to reach settlements in opioid trials that concluded recently in West Virginia and San Francisco.
Johnson & Johnson JNJ.N and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - finalized a $26 billion nationwide opioid settlement in February . Purdue Pharma, whose OxyContin painkiller has been widely blamed for kickstarting the opioid crisis, is pursuing a $6 billion settlement in bankruptcy court. .
Teva pushed up reporting its second-quarter results to go along with the settlement announcement on Tuesday.
The company trimmed its 2022 revenue outlook and now expects sales of $15 billion to $15.6 billion. It had forecast $15.4 billion to $16.0 billion. It maintained its forecast for adjusted earnings of $2.40 to $2.60 per share.
(Additional reporting by Tom Hals in Wilmington, Delaware and Steven Scheer in Tel Aviv; Editing by Noeleen Walder and Bill Berkrot)
((thomas.hals@thomsonreuters.com; +1 610 544 2712; Reuters Messaging: thomas.hals.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. By Dietrich Knauth and Nate Raymond July 26 (Reuters) - Teva Pharmaceutical Industries TEVA.TA on Tuesday announced a $4.35 billion proposed nationwide settlement that could resolve thousands of lawsuits over the drugmaker's alleged role in the U.S. opioid epidemic. U.S. states, cities and counties filed more than 3,000 lawsuits against opioid manufacturers, distributors and pharmacies, accusing them of downplaying their addiction risk and failing to stop pills from being diverted for illegal use. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. The proposal calls for Teva to pay up to $3.7 billion in cash over 13 years and provide a company estimated $1.2 billion worth the opioid overdose reversal drug naloxone. Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. The proposal calls for Teva to pay up to $3.7 billion in cash over 13 years and provide a company estimated $1.2 billion worth the opioid overdose reversal drug naloxone. For the Teva deal to take effect, Allergan must reach its own nationwide opioid settlement, and the two companies must settle a dispute over the amount Allergan owes Teva for claims filed prior to the 2016 sale. | Teva's settlement is contingent on separate settlements by AbbVie's ABBV.N Allergan unit. Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price. CEO Kare Schultz told analysts at the time that he expected the company to pay around $2.6 billion in cash and medicine to reach a nationwide settlement. |
23232.0 | 2022-07-26 00:00:00 UTC | AbbVie (ABBV) to Report Q2 Earnings: What's in the Cards? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-to-report-q2-earnings%3A-whats-in-the-cards | nan | nan | AbbVie ABBV will report second-quarter 2022 results on Jul 29, before market open. In the last reported quarter, the company delivered an earnings surprise of 0.32%.
AbbVie’s stock has risen 11% so far this year compared with an increase of 2.8% for the industry.
Image Source: Zacks Investment Research
This large drugmaker’s performance has been pretty impressive, with its earnings beating estimates in three of the trailing four quarters and meeting the same in one. The company has a four-quarter earnings surprise of 1.01%, on average.
Factors to Consider
Strong demand for immunology drugs, aesthetics and cosmetics products is expected to have driven sales in the second quarter of 2022. Moreover, new drug launches in the past few quarters are likely to have brought additional sales during the second quarter. However, currency movements are likely to have hurt sales growth during the second quarter.
Second-quarter earnings are expected between $3.38 and $3.42 per share. ABBV expects adjusted revenues to be around $14.6 billion in the second quarter, indicating year-over-year growth of nearly 5%. The Zacks Consensus Estimate for earnings and revenues stands at $3.28 per share and $14.65 billion, respectively.
In immunology, Humira has been witnessing strong demand trends in the United States. Sales of the drug in the United States are likely to have increased in the second quarter. However, Humira’s international sales are expected to have continued their downward trend due to the impact of biosimilars in Europe. The Zacks Consensus Estimate for Humira stands at $5.27 billion, which includes $630 million from international markets and the rest from the U.S. market alone.
The sales of new immunology drugs, Skyrizi and Rinvoq, reflected strong uptake during the last few quarters. The strong uptake is expected to have continued in the soon-to-be-reported quarter. The label expansions of Rinvoq and Skyrizi to include new patient populations in recent quarters in different countries are likely to have driven the sales of the drugs further during the quarter. In the first half of 2022, Rinvoq received FDA approval for label expansion in atopic dermatitis, ulcerative colitis and ankylosing spondylitis.
In oncology, AbbVie markets Imbruvica in partnership with Johnson & Johnson JNJ and Venclexta in partnership with Roche. Sales of the J&J and Roche-partnered drugs are likely to have been strong in the soon-to-be-reported quarter. However, the lower new patient starts in the chronic lymphocytic leukemia (CLL) indication for both J&J and Roche-partnered drugs — Imbruvica and Venclexta, — due to the COVID-19 pandemic are likely to have hurt sales. J&J on itsearnings call said that the rising pressure in the United States due to new oral competition has been hurting sales of Imbruvica for the past few quarters. The Zacks Consensus Estimate for J&J-partnered drug, Imbruvica and Roche-partnered drug, Venclexta, is pegged at $1.26 billion and $554 million, respectively.
Sales of AbbVie’s aesthetics products, Botox cosmetic and Juverderm, in the first quarter were hurt by the impact of COVID in China and no sales in Russia. AbbVie has suspended its aesthetics business operations in Russia, which is a key market for fillers. This should hurt aesthetics sales somewhat in the to-be reported quarter. Moreover, sales of the neuroscience franchise also showed strong growth in recent quarters. The trend is expected to have continued for both franchises in the soon-to-be-reported quarter. The Zacks Consensus Estimate for aesthetics and neuroscience products stands at $1.52 and $1.71 billion, respectively.
On theearnings call investors’ focus will likely be on AbbVie’s strategies around Humira following its potential loss of exclusivity in the United States, which is expected next year. They are also likely to ask questions about the rising competition for other drugs, including Imbruvica, on theearnings call Investors’ focus will likely be on any update related to the guidance for 2022.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate stand at $3.28 per share.
Zacks Rank: AbbVie currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
AstraZeneca AZN has an Earnings ESP of +1.38% and a Zacks Rank #3.
AstraZeneca’s stock has risen 13.6% this year so far. AstraZeneca topped earnings estimates in two of the last four quarters, missed the mark on one occasion and met the mark on another. AZN has a four-quarter earnings surprise of 1.32%, on average. AstraZeneca is scheduled to release its second-quarter 2022 results on Jul 29.
Bayer BAYRY has an Earnings ESP of +5.26% and a Zacks Rank #3.
Bayer’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 17.71%, on average.
Bayer is scheduled to release its second-quarter 2022 results on Aug 4. The stock is up 11.2% this year so far.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On theearnings call investors’ focus will likely be on AbbVie’s strategies around Humira following its potential loss of exclusivity in the United States, which is expected next year. AbbVie ABBV will report second-quarter 2022 results on Jul 29, before market open. AbbVie’s stock has risen 11% so far this year compared with an increase of 2.8% for the industry. | AbbVie ABBV will report second-quarter 2022 results on Jul 29, before market open. AbbVie’s stock has risen 11% so far this year compared with an increase of 2.8% for the industry. ABBV expects adjusted revenues to be around $14.6 billion in the second quarter, indicating year-over-year growth of nearly 5%. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Stocks to Consider Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around: AstraZeneca AZN has an Earnings ESP of +1.38% and a Zacks Rank #3. AbbVie ABBV will report second-quarter 2022 results on Jul 29, before market open. AbbVie’s stock has risen 11% so far this year compared with an increase of 2.8% for the industry. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Stocks to Consider Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around: AstraZeneca AZN has an Earnings ESP of +1.38% and a Zacks Rank #3. AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV will report second-quarter 2022 results on Jul 29, before market open. |
23233.0 | 2022-07-26 00:00:00 UTC | European Commission Approves AbbVie's Rinvoq To Treat Moderate To Severe Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/european-commission-approves-abbvies-rinvoq-to-treat-moderate-to-severe-ulcerative-colitis | nan | nan | (RTTNews) - The European Commission approved Rinvoq (upadacitinib 45 mg and 15 mg and 30 mg) for the treatment of adult patients with moderately to severely active ulcerative colitis who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent, AbbVie (ABBV) said in a statement on Tuesday.
The approval is based on the results of three Phase 3 studies. In the clinical trials, Rinvoq achieved the primary endpoint of clinical remission (per Adapted Mayo Score) at week 8 in induction studies and week 52 in the maintenance study, and all secondary endpoints, including clinical response and mucosal healing.
The approval represents Rinvoq's fifth therapeutic indication in the European Union.
Rinvoq was already approved in the European Union for the treatment of moderate to severe active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate to severe atopic dermatitis.
Rinvoq is a selective and reversible JAK inhibitor that is being studied in several immune-mediated inflammatory diseases.
Ulcerative colitis is a chronic, immune-mediated inflammatory bowel disease (IBD) that can lead to substantial burden and often disability among patients.
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) - The European Commission approved Rinvoq (upadacitinib 45 mg and 15 mg and 30 mg) for the treatment of adult patients with moderately to severely active ulcerative colitis who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent, AbbVie (ABBV) said in a statement on Tuesday. Rinvoq is a selective and reversible JAK inhibitor that is being studied in several immune-mediated inflammatory diseases. Ulcerative colitis is a chronic, immune-mediated inflammatory bowel disease (IBD) that can lead to substantial burden and often disability among patients. | (RTTNews) - The European Commission approved Rinvoq (upadacitinib 45 mg and 15 mg and 30 mg) for the treatment of adult patients with moderately to severely active ulcerative colitis who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent, AbbVie (ABBV) said in a statement on Tuesday. Rinvoq was already approved in the European Union for the treatment of moderate to severe active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate to severe atopic dermatitis. Rinvoq is a selective and reversible JAK inhibitor that is being studied in several immune-mediated inflammatory diseases. | (RTTNews) - The European Commission approved Rinvoq (upadacitinib 45 mg and 15 mg and 30 mg) for the treatment of adult patients with moderately to severely active ulcerative colitis who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent, AbbVie (ABBV) said in a statement on Tuesday. In the clinical trials, Rinvoq achieved the primary endpoint of clinical remission (per Adapted Mayo Score) at week 8 in induction studies and week 52 in the maintenance study, and all secondary endpoints, including clinical response and mucosal healing. Rinvoq was already approved in the European Union for the treatment of moderate to severe active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate to severe atopic dermatitis. | (RTTNews) - The European Commission approved Rinvoq (upadacitinib 45 mg and 15 mg and 30 mg) for the treatment of adult patients with moderately to severely active ulcerative colitis who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent, AbbVie (ABBV) said in a statement on Tuesday. The approval is based on the results of three Phase 3 studies. In the clinical trials, Rinvoq achieved the primary endpoint of clinical remission (per Adapted Mayo Score) at week 8 in induction studies and week 52 in the maintenance study, and all secondary endpoints, including clinical response and mucosal healing. |
23234.0 | 2022-07-25 00:00:00 UTC | Will Merck Stock Rise After Its Q2 Results? | ABBV | https://www.nasdaq.com/articles/will-merck-stock-rise-after-its-q2-results | nan | nan | Merck (NYSE: MRK) is scheduled to report its Q2 2022 results on Thursday, July 28. We expect the company to have a robust Q2, with revenue falling in-line and earnings expected to be slightly above the consensus estimates, driven by a continued uptick in sales of its key drugs, including Keytruda, Lagevrio, and Gardasil. That said, pandemic-induced lockdowns in China likely weighed on Gardasil sales growth in that region. Although we expect Merck to post an upbeat Q2, we find its stock to have little room for growth, as discussed below. Our interactive dashboard analysis on Merck’s Earnings Preview has additional details.
(1) Revenues expected to be in line with the consensus estimates
Trefis estimates Merck’s Q2 2022 revenues to be $13.9 billion, aligning with the consensus estimate.
The company’s overall revenue growth is likely bolstered by market share gains for Keytruda and Gardasil and its Covid-19 treatment – Lagevrio.
Looking at Q1 2022, Merck reported revenue of $15.9 billion, reflecting a significant 50% y-o-y growth, partly due to a $3.2 billion sales contribution from Lagevrio.
Merck’s top-selling drug – Keytruda – saw its sales rise 23% to $4.8 billion in Q1, while Gardasil sales were up a significant 59% to $1.5 billion.
The company’s animal health business has also been doing well with 4% y-o-y gains in Q1, and the growth trend is likely to continue in the near term, given the rise in pet ownership in the U.S.
Our dashboard on Merck Revenues offers more details on the company’s segments.
(2) EPS expected to be slightly above the consensus estimates
Merck’s Q2 2022 adjusted earnings per share (EPS) is expected to be $1.73 per Trefis analysis, slightly above the consensus estimate of $1.69.
Merck’s adjusted net income of $5.4 billion in Q1 2022 reflected a significant 84% rise from its $2.9 billion figure in the prior-year quarter, led by higher revenues and expansion of operating margins. The company’s SG&A and R&D grew only in mid-single-digits in Q1, compared to a 50% rise in total revenue.
However, inflationary headwinds and supply chain constraints threaten margin expansion in the near term.
For the full year 2022, we expect the adjusted EPS to be higher at $7.42, compared to $6.02 in 2021.
(3) MRK stock has only a little room for growth
We estimate Merck’s Valuation to be $99 per share, which is only 10% above the current market price of $90.
This represents a forward P/E multiple of 13x based on our EPS forecast of $7.42 in 2022 and aligns with the last three-year average of 13x for MRK stock.
Now, if the company reports upbeat results, along with 2022 guidance better than the street estimates, it is likely that the P/E multiple will be revised upward, resulting in higher levels for MRK stock.
While MRK stock looks like it has only a little 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 17% 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 Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return -2% 17% 52%
S&P 500 Return 5% -17% 77%
Trefis Multi-Strategy Portfolio 10% -15% 236%
[1] Month-to-date and year-to-date as of 7/20/2022
[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. | The company’s overall revenue growth is likely bolstered by market share gains for Keytruda and Gardasil and its Covid-19 treatment – Lagevrio. (3) MRK stock has only a little room for growth We estimate Merck’s Valuation to be $99 per share, which is only 10% above the current market price of $90. This represents a forward P/E multiple of 13x based on our EPS forecast of $7.42 in 2022 and aligns with the last three-year average of 13x for MRK stock. | (1) Revenues expected to be in line with the consensus estimates Trefis estimates Merck’s Q2 2022 revenues to be $13.9 billion, aligning with the consensus estimate. Looking at Q1 2022, Merck reported revenue of $15.9 billion, reflecting a significant 50% y-o-y growth, partly due to a $3.2 billion sales contribution from Lagevrio. (2) EPS expected to be slightly above the consensus estimates Merck’s Q2 2022 adjusted earnings per share (EPS) is expected to be $1.73 per Trefis analysis, slightly above the consensus estimate of $1.69. | (1) Revenues expected to be in line with the consensus estimates Trefis estimates Merck’s Q2 2022 revenues to be $13.9 billion, aligning with the consensus estimate. (2) EPS expected to be slightly above the consensus estimates Merck’s Q2 2022 adjusted earnings per share (EPS) is expected to be $1.73 per Trefis analysis, slightly above the consensus estimate of $1.69. Total [2] MRK Return -2% 17% 52% S&P 500 Return 5% -17% 77% Trefis Multi-Strategy Portfolio 10% -15% 236% [1] Month-to-date and year-to-date as of 7/20/2022 [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. | (2) EPS expected to be slightly above the consensus estimates Merck’s Q2 2022 adjusted earnings per share (EPS) is expected to be $1.73 per Trefis analysis, slightly above the consensus estimate of $1.69. (3) MRK stock has only a little room for growth We estimate Merck’s Valuation to be $99 per share, which is only 10% above the current market price of $90. Total [2] MRK Return -2% 17% 52% S&P 500 Return 5% -17% 77% Trefis Multi-Strategy Portfolio 10% -15% 236% [1] Month-to-date and year-to-date as of 7/20/2022 [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. |
23235.0 | 2022-07-25 00:00:00 UTC | 3 Dividend Kings Suited Perfectly for Income Investors | ABBV | https://www.nasdaq.com/articles/3-dividend-kings-suited-perfectly-for-income-investors | nan | nan | Income investing is a widely-deployed strategy within the market. After all, there are few things in life sweeter than getting paid.
Companies that consistently increase their dividend payouts are well-established in nature with successful business operations. In addition, they tend to carry a lower level of risk, undoubtedly a major positive for investors.
The best of the best of these dividend payers are classified into an elite group – Dividend Kings.
Investors are familiar with Dividend Aristocrats, companies that have successfully increased their dividend payout for 25 consecutive years. However, to be ranked as a Dividend King, a company must increase its dividend payout for a whopping 50 consecutive years.
Three companies – Coca-Cola KO, Emerson Electric EMR, and AbbVie Inc. ABBV – are all part of the elite Dividend King group. The chart below shows the year-to-date performance of all three companies.
Image Source: Zacks Investment Research
Let’s look at why these three companies would be excellent bets for any income-focused investor.
AbbVie
AbbVie ABBV is a global research-based biopharmaceutical company that delivers innovative medicines.
AbbVie’s dividend metrics might be the most robust of them all. The company’s annual dividend yields a sizable 3.8%, nowhere near the S&P 500’s annual yield of 1.5%. In addition, the company has a stellar 16% five-year annualized dividend growth rate paired with six dividend increases over the last five years.
AbbVie has just joined the elite Dividend King group – the company has increased its annual dividend for 50 consecutive years.
Image Source: Zacks Investment Research
Furthermore, free cash flow of the company has been consistently increasing, as illustrated in the chart below.
Image Source: Zacks Investment Research
Undoubtedly a major positive, AbbVie has consistently reported bottom-line results above expectations, exceeding the Zacks Consensus EPS Estimate in nine of its previous ten quarterly reports.
Top-line results have also been solid; ABBV has recorded seven top-line beats over its last ten quarters. The chart below illustrates the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Coca-Cola
The Coca-Cola Company KO is an American multinational beverage corporation primarily known for its flagship Coca-Cola drink.
Coca-Cola’s dividend metrics are enough to make any income investor celebrate. KO’s annual dividend yield resides at 2.9%, much higher than the general market’s. In addition, the company has increased its dividend payout five times over the last five years with a solid five-year annualized dividend growth rate of 3.1%.
The company has impressively increased its dividend payout for 59 consecutive years.
Image Source: Zacks Investment Research
In addition to solid dividend metrics, the company’s free cash flow has also been strong – free cash flow grew 28% from FY20 to FY21.
Image Source: Zacks Investment Research
Impressively, Coca-Cola has chained together ten consecutive bottom-line beats.
Quarterly sales results have also been rock-solid; KO has recorded eight top-line beats over its last ten quarters. The chart below illustrates the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Emerson Electric
Emerson Electric EMR is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets.
Emerson is dedicated to rewarding its shareholders; the company has increased its dividend payout for a mind-boggling 64 consecutive years.
EMR’s annual dividend yields 2.5%, well above the S&P 500’s yield. In addition, the company has a sustainable payout ratio sitting at 44% of earnings paired with a five-year annualized dividend growth rate of a modest 1.5%.
Image Source: Zacks Investment Research
Emerson has been the definition of consistency within its quarterly results, exceeding the Zacks Consensus EPS Estimate in nine consecutive quarters.
Quarterly sales results have been impressive as well; over the company’s previous ten quarterly releases, Emerson has posted seven top-line beats.
Image Source: Zacks Investment Research
Bottom Line
When companies consistently increase their dividend payouts, it’s generally a sign of robust financial health and successful business operations.
Becoming a Dividend Aristocrat is challenging enough, let alone becoming a Dividend King. Meeting the parameters to join the elite group speaks volumes about these companies' well-established and thriving nature.
All three companies above have robust dividend metrics and a history of exceeding earnings estimates, making them excellent choices for investors looking to add a reliable income stream.
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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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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. | Three companies – Coca-Cola KO, Emerson Electric EMR, and AbbVie Inc. ABBV – are all part of the elite Dividend King group. AbbVie AbbVie ABBV is a global research-based biopharmaceutical company that delivers innovative medicines. AbbVie’s dividend metrics might be the most robust of them all. | Image Source: Zacks Investment Research Undoubtedly a major positive, AbbVie has consistently reported bottom-line results above expectations, exceeding the Zacks Consensus EPS Estimate in nine of its previous ten quarterly reports. Three companies – Coca-Cola KO, Emerson Electric EMR, and AbbVie Inc. ABBV – are all part of the elite Dividend King group. AbbVie AbbVie ABBV is a global research-based biopharmaceutical company that delivers innovative medicines. | AbbVie has just joined the elite Dividend King group – the company has increased its annual dividend for 50 consecutive years. Image Source: Zacks Investment Research Undoubtedly a major positive, AbbVie has consistently reported bottom-line results above expectations, exceeding the Zacks Consensus EPS Estimate in nine of its previous ten quarterly reports. Three companies – Coca-Cola KO, Emerson Electric EMR, and AbbVie Inc. ABBV – are all part of the elite Dividend King group. | Three companies – Coca-Cola KO, Emerson Electric EMR, and AbbVie Inc. ABBV – are all part of the elite Dividend King group. AbbVie has just joined the elite Dividend King group – the company has increased its annual dividend for 50 consecutive years. Image Source: Zacks Investment Research Undoubtedly a major positive, AbbVie has consistently reported bottom-line results above expectations, exceeding the Zacks Consensus EPS Estimate in nine of its previous ten quarterly reports. |
23236.0 | 2022-07-25 00:00:00 UTC | Here is What to Know Beyond Why AbbVie Inc. (ABBV) is a Trending Stock | ABBV | https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-abbvie-inc.-abbv-is-a-trending-stock-0 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drugmaker have returned -2.5%, compared to the Zacks S&P 500 composite's +5.6% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
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 $3.28 per share, indicating a change of +5.5% 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 $13.88 points to a change of +9.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $11.84 indicates a change of -14.7% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AbbVie, the consensus sales estimate for the current quarter of $14.65 billion indicates a year-over-year change of +5%. For the current and next fiscal years, $59.61 billion and $55.99 billion estimates indicate +6.1% and -6.1% changes, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.54 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $3.16 for the same period compares with $2.95 a year ago.
Compared to the Zacks Consensus Estimate of $13.55 billion, the reported revenues represent a surprise of -0.09%. The EPS surprise was +0.32%.
Over the last four quarters, AbbVie surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2.7%. | For the next fiscal year, the consensus earnings estimate of $11.84 indicates a change of -14.7% from what AbbVie is expected to report a year ago. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2.7%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2.7%. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2.7%. |
23237.0 | 2022-07-25 00:00:00 UTC | The Zacks Analyst Blog Highlights J&J, Novartis, GSK, Merck and AbbVie | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-jj-novartis-gsk-merck-and-abbvie | nan | nan | For Immediate Release
Chicago, IL – July 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: J&J JNJ, Novartis NVS, GSK plc GSK, Merck MRK and AbbVie ABBV.
Here are highlights from Friday’s Analyst Blog:
Pharma Stock Roundup: Early Q2 Earnings Are In
This week, J&J set in motion the second-quarter earnings season for the drug and biotech sector with an earnings and sales beat. Novartis reported mixed results. GSK plc completed the separation of its Consumer Healthcare segment into a new company, Haleon. Merck's head and neck cancer study on Keytruda failed while AbbVie filed a regulatory application in Europe seeking approval for its migraine candidate atogepant.
Recap of the Week's Most Important Stories
J&J Beats on Q2 Earnings & Sales, Lowers View: J&J reported better-than-expected second-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit continued to do well. Its COVID-19 vaccine sales improved in the second quarter after a lower-than-expected contribution in the first quarter. Sales in the MedTech segment continued to improve. However, sales were partly hurt by COVID-related restrictions in countries like China and labor and supply constraints.
However, J&J slightly lowered its sales and profit outlook for the year due to expected currency headwinds amid a strengthening U.S. dollar.
Novartis' Mixed Q2: Novartis' second-quarter results were mixed. It missed estimates for revenues while beating the same for earnings. Sales in Innovative Medicines rose 5% at constant currency driven by the strong growth of Entresto Cosentyx, Kisqali and Zolgensma. Sales in the Sandoz division also rose 5% as the business continued to improve from COVID impacts and returned to normal. The company maintained its guidance for sales and core operating income to grow in the mid-single-digit range in 2022.
GSK Completes Demerger of Consumer Unit: GSK completed the demerger of its Consumer Healthcare (CHC) segment into a standalone company. The independent Consumer Healthcare company has been named Haleon. Shares of Haleon have already been listed on the London Stock Exchange (LSE), which started trading on Jul 18. It is expected that American Depositary Shares. representing shares of Haleon plc, will start trading with the ticker symbol "HLN" on the NYSE in a regular way from Jul 22.
GSK also completed its share consolidation following the demerger. GSK has issued four new ordinary shares of 31.25 pence each for every five existing ordinary shares of 25 pence each. With regard to ADS issued by GSK, four new ADSs will be issued for every five existing ADSs of GSK trading on the NYSE.
AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. The application is supported by data from two pivotal phase III studies, ADVANCE and PROGRESS, which evaluated atogepant in adult patients with episodic and chronic migraine.
Atogepant is already approved in the United States as Qulipta for the preventive treatment of episodic migraine since last September. Last month, AbbVie filed for the label expansion of Qulipta in the United States as a preventive treatment for chronic migraine. However, atogepant is not yet approved for any indication in Europe.
AbbVie announced a strategic alliance with eye care solutions company, iSTAR Medical to further develop and commercialize the latter's most advanced product, MINIject, a minimally invasive glaucoma surgical device for patients with glaucoma. For the deal, AbbVie will make a $60 million upfront payment to iSTAR Medical. MINIject is already approved and launched in Europe, while in the United States, a U.S. Premarket Approval study (STAR-V) has been filed to allow commercialization.
Merck's Head and Neck Cancer Study on Keytruda Fails: Merck's phase III study evaluating Keytruda for unresected locally advanced head and neck squamous cell carcinoma (HNSCC) failed to meet its primary endpoint of event-free survival (EFS). The final analysis of the study showed that there was an improvement in EFS in patients treated with the Keytruda plus concurrent chemoradiation therapy (CRT) compared to the placebo plus CRT.
However, the data failed to meet statistical significance. Keytruda is presently approved for certain later stages of HNSCC in the United States, Europe and some other countries. The KEYNOTE-412 study was evaluating Keytruda in earlier stages of HNSCC.
The NYSE ARCA Pharmaceutical Index rose 0.4% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
In the last five trading sessions, Novartis rose the most (4%) while Merck declined the most (4%).
In the past six months, Lilly rose the most (36%) while Roche declined the most (12.3%).
(See the last pharma stock roundup here: MRK Buys Cancer Drug Rights, SNY Dupixent Kids Study Succeeds)
What's Next in the Pharma World?
Keep a tab on Q2 earnings of Pfizer, Merck, Sanofi, AstraZeneca and others and regular pipeline and regulatory updates next week.
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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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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GSK plc (GSK): Free Stock Analysis Report
Novartis AG (NVS): 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. | Merck's head and neck cancer study on Keytruda failed while AbbVie filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. Stocks recently featured in the blog include: J&J JNJ, Novartis NVS, GSK plc GSK, Merck MRK and AbbVie ABBV. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. | Stocks recently featured in the blog include: J&J JNJ, Novartis NVS, GSK plc GSK, Merck MRK and AbbVie ABBV. Merck's head and neck cancer study on Keytruda failed while AbbVie filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. | Stocks recently featured in the blog include: J&J JNJ, Novartis NVS, GSK plc GSK, Merck MRK and AbbVie ABBV. Merck's head and neck cancer study on Keytruda failed while AbbVie filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. | Stocks recently featured in the blog include: J&J JNJ, Novartis NVS, GSK plc GSK, Merck MRK and AbbVie ABBV. Merck's head and neck cancer study on Keytruda failed while AbbVie filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. |
23238.0 | 2022-07-24 00:00:00 UTC | 7 Value Stocks Trading at a Massive Discount Right Now | ABBV | https://www.nasdaq.com/articles/7-value-stocks-trading-at-a-massive-discount-right-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Value stocks have underperformed growth stocks over the past decade or so. This is due to the cheap financing available to hyper-growth businesses. Moreover, investors employed a risk-on approach towards stock picking. However, the tables have turned this year, with investors looking to find the best value stocks trading at a discount.
Inflation remains at a 40-year high, while the Federal Reserve has tightened it’s monetary which has compelled investors to rotate out of growth stocks. The inflated valuations of several of the most popular growth stocks have forced investors to take shelter in businesses with attractive fundamentals and lower share prices.
7 Best Reddit Stocks to Buy Now
Hence, investors must hunt for the top value stocks trading at discounts with massive upside potential.
EXPE Expedia $Expedia
ABBV AbbVie $148.55
TGT Target $159.2
LEG Leggett & Platt $39.1
BCS Barclays $7.68
URI United Rentals $280
DHI D.R. Horton $77.6
Expedia (EXPE)
Source: NYC Russ / Shutterstock.com
Online-travel booking giant Expedia (NASDAQ:EXPE) recently reported its first-quarter results, reflecting a business recovery. Its first-quarter revenues came in at $2.25 billion, an 81% improvement from the prior-year period and ahead of Wall Street estimates of $2.23 billion.
It has its work cut out to catch up to pre-pandemic levels, but the gradual recovery in its results suggests it could reach that goal within a couple of years.
Looking ahead, the momentum is likely to increase significantly as international travel restrictions ease out. Nevertheless, the impact of the coronavirus, inflation, and geopolitical tensions are likely to weigh on company results.
Its CEO Peter Kern believes that the “pent-up demand that’s out there for travel seems to be outweighing anything the market can throw at it.” With the investor skepticism surrounding EXPE, the stock trades at multi-year lows, creating an attractive entry point for long-term investors.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is a leading global pharmaceutical company that commercializes and develops some of the biggest moneymakers in the industry.
Its arthritis medicine in Humira has been its cash cow, but with its patent expiration, investors are concerned over its future. However, it has one of the deepest portfolios in the industry, generating revenues in excess of $56.1 billion last year, which is close to a 100% bump compared to five years prior.
With Humira’s patent expiry horizon, ABBV has shed a fair bit of its value of late. Nevertheless, combined sales of its two leading immunology drugs, Skyrizi and Rinvoq, are likely to surpass sales of Humira.
7 Cheap Stocks That Are Trading at a Discount
Moreover, it’s also winning big with its neuroscience and aesthetics portfolios. In its recently released quarterly report, sales from its neuroscience and aesthetics department were double-digit from the prior year. Another major positive for the business is that it comes with a healthy dividend, yielding over 3.69%.
Target (TGT)
Source: Robert Gregory Griffeth / Shutterstock.com
Target (NYSE:TGT) was one of the most successful retailers during the pandemic, with a 19.3% increase in comparable sales in 2020. The company capitalized on the shift in consumer shopping habits during the pandemic.
Comparable sales rose almost 13% in fiscal 2021, which boosted total sales by a whopping $28 billion. The rampant growth in the company’s top line made it significantly more efficient, reducing operating expenses as a percentage of sales.
The adverse market conditions have severely impacted recent results at this time. Discretionary spending is down, but over the long run, the results are likely to improve over time. More encouraging for Target is that it announced a massive dividend hike of 20% to $1.08 beginning in September. The boost takes forward yields past the 3.10% mark.
Leggett & Platt (LEG)
Source: Casimiro PT / Shutterstock.com
Leggett & Platt (NYSE:LEG) is a consumer durable goods giant with a proven track record of rewarding its shareholders. It has grown its dividend payouts by an incredible 51 years, making it a dividend king and aristocrat.
A lot of it has to do with its consistent performance over the past several years, delivering single-digit across multiple revenue and profitability metrics. Its performances have plenty to do with the diversity of its product base, which covers furniture, bedding, textile, and other related products.
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Barring the third quarter of 2021, it has consistently beaten analyst estimates across its top and bottom lines since the fourth quarter of 2020. The company plans to continue investing for the future, but not at the expense of its dividend payouts and share repurchases. It boasts an investment-grade balance sheet with over $1 billion in its credit facility.
Barclays (BCS)
Source: chrisdorney / Shutterstock.com
Barclays (NYSE:BCS) operates a diversified business model that includes its investment wing and a consumer banking wing catering to the U.K. and U.S. markets.
Such as arrangement puts it in a position to weather the challenging macro-environment at this time.
The investment side should benefit immensely from the heightened volatility. Moreover, the current volatility in fixed income should be a blast for larger investment banks. Additionally, the interest rate hike should benefit the consumer side. Its first-quarter report showed that just a 25 basis points increase could result in £525 million to the bottom line.
Moreover, it is targeting a 10% return on tangible equity for the year, which puts it in an incredible position amongst investors.
United Rentals (URI)
Source: Casimiro PT / Shutterstock.com
United Rentals (NYSE:URI) is the largest equipment rental business with an incredible history of outperformance in a highly fragmented sector. It’s been one of the biggest wealth compounders in its sector, generating over 630% in returns in the past decade.
Year-to-date gains have been in the negative, while its management forecasts record demand due to the long-term tailwinds and growing government infrastructure spending. Its management expects a 16% jump in sales in fiscal 2021.
Moreover, it has done remarkably well to improve its financial flexibility. It paid over $2.5 billion in debt in the past year, significantly decreasing its financial leverage. Operating cash flows are up by a staggering margin, averaging in at 18% over the past five years.
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Having said all that, URI stock remains one of the best value plays at this time.
D.R. Horton (DHI)
Source: Casimiro PT / Shutterstock.com
D.R. Horton (NYSE:DHI) is one of the most prolific homebuilders operating in over 98 markets in the U.S.
It boasts an incredible track record of growing its EBITDA and revenues by double-digit margins over the past several years.
Nevertheless, its stock has taken a beating of late, and it now trades at just 0.74 times forward sales. However, the market conditions are robust despite rising mortgage rates.
During the second quarter, DHI revealed that it had 33,900 homes in its backlog and roughly 59,800 in its inventory. Revenues during the quarter shot up 22% to $7.5 billion, up from $6.2 billion in the same quarter last year.
Average sales prices came in at $378,200, up a healthy 21% from the prior-year period. As we advance, the firm expects revenues to fall in the $35.1 billion to $36.1 billion range, up significantly from consensus estimates of $35.33 billion.
On the date of publication, Muslim Farooque 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 Value Stocks Trading at a Massive Discount Right 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. | EXPE Expedia $Expedia ABBV AbbVie $148.55 TGT Target $159.2 LEG Leggett & Platt $39.1 BCS Barclays $7.68 URI United Rentals $280 DHI D.R. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading global pharmaceutical company that commercializes and develops some of the biggest moneymakers in the industry. With Humira’s patent expiry horizon, ABBV has shed a fair bit of its value of late. | EXPE Expedia $Expedia ABBV AbbVie $148.55 TGT Target $159.2 LEG Leggett & Platt $39.1 BCS Barclays $7.68 URI United Rentals $280 DHI D.R. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading global pharmaceutical company that commercializes and develops some of the biggest moneymakers in the industry. With Humira’s patent expiry horizon, ABBV has shed a fair bit of its value of late. | EXPE Expedia $Expedia ABBV AbbVie $148.55 TGT Target $159.2 LEG Leggett & Platt $39.1 BCS Barclays $7.68 URI United Rentals $280 DHI D.R. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading global pharmaceutical company that commercializes and develops some of the biggest moneymakers in the industry. With Humira’s patent expiry horizon, ABBV has shed a fair bit of its value of late. | EXPE Expedia $Expedia ABBV AbbVie $148.55 TGT Target $159.2 LEG Leggett & Platt $39.1 BCS Barclays $7.68 URI United Rentals $280 DHI D.R. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading global pharmaceutical company that commercializes and develops some of the biggest moneymakers in the industry. With Humira’s patent expiry horizon, ABBV has shed a fair bit of its value of late. |
23239.0 | 2022-07-22 00:00:00 UTC | Pharma Stock Roundup: JNJ, NVS Q2 Earnings, GSK Consumer Unit Spin-Off | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-jnj-nvs-q2-earnings-gsk-consumer-unit-spin-off | nan | nan | This week, J&J JNJ set in motion the second-quarter earnings season for the drug and biotech sector with an earnings and sales beat. Novartis NVS reported mixed results. GSK plc GSK completed the separation of its Consumer Healthcare (CHC) segment into a new company, Haleon. Merck’s (MRK) head and neck cancer study on Keytruda failed while AbbVie ABBV filed a regulatory application in Europe seeking approval for its migraine candidate atogepant.
Recap of the Week’s Most Important Stories
J&J Beats on Q2 Earnings & Sales, Lowers View: J&J reported better-than-expected second-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit continued to do well. Its COVID-19 vaccine sales improved in the second quarter after a lower-than-expected contribution in the first quarter. Sales in the MedTech segment continued to improve. However, sales were partly hurt by COVID-related restrictions in countries like China and labor and supply constraints.
However, J&J slightly lowered its sales and profit outlook for the year due to expected currency headwinds amid a strengthening U.S. dollar.
Novartis’ Mixed Q2: Novartis’ second-quarter results were mixed. It missed estimates for revenues while beating the same for earnings. Sales in Innovative Medicines rose 5% at constant currency driven by the strong growth of Entresto Cosentyx, Kisqali and Zolgensma. Sales in the Sandoz division also rose 5% as the business continued to improve from COVID impacts and returned to normal. The company maintained its guidance for sales and core operating income to grow in the mid-single-digit range in 2022.
GSK Completes Demerger of Consumer Unit: GSK completed the demerger of its Consumer Healthcare (CHC) segment into a standalone company. The independent Consumer Healthcare company has been named Haleon. Shares of Haleon have already been listed on the London Stock Exchange (LSE), which started trading on Jul 18. It is expected that American Depositary Shares. representing shares of Haleon plc, will start trading with the ticker symbol “HLN” on the NYSE in a regular way from Jul 22.
GSK also completed its share consolidation following the demerger. GSK has issued four new ordinary shares of 31.25 pence each for every five existing ordinary shares of 25 pence each. With regard to ADS issued by GSK, four new ADSs will be issued for every five existing ADSs of GSK trading on the NYSE.
AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. The application is supported by data from two pivotal phase III studies, ADVANCE and PROGRESS, which evaluated atogepant in adult patients with episodic and chronic migraine.
Atogepant is already approved in the United States as Qulipta for the preventive treatment of episodic migraine since last September. Last month, AbbVie filed for the label expansion of Qulipta in the United States as a preventive treatment for chronic migraine. However, atogepant is not yet approved for any indication in Europe.
AbbVie announced a strategic alliance with eye care solutions company, iSTAR Medical to further develop and commercialize the latter’s most advanced product, MINIject, a minimally invasive glaucoma surgical device for patients with glaucoma. For the deal, AbbVie will make a $60 million upfront payment to iSTAR Medical. MINIject is already approved and launched in Europe, while in the United States, a U.S. Premarket Approval study (STAR-V) has been filed to allow commercialization.
Merck’s Head and Neck Cancer Study on Keytruda Fails: Merck’s phase III study evaluating Keytruda for unresected locally advanced head and neck squamous cell carcinoma (HNSCC) failed to meet its primary endpoint of event-free survival (EFS). The final analysis of the study showed that there was an improvement in EFS in patients treated with the Keytruda plus concurrent chemoradiation therapy (CRT) compared to the placebo plus CRT. However, the data failed to meet statistical significance. Keytruda is presently approved for certain later stages of HNSCC in the United States, Europe and some other countries. The KEYNOTE-412 study was evaluating Keytruda in earlier stages of HNSCC.
The NYSE ARCA Pharmaceutical Index rose 0.4% 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, Novartis rose the most (4%) while Merck declined the most (4%).
In the past six months, Lilly rose the most (36%) while Roche declined the most (12.3%).
(See the last pharma stock roundup here: MRK Buys Cancer Drug Rights, SNY Dupixent Kids Study Succeeds)
What's Next in the Pharma World?
Keep a tab on Q2 earnings of Pfizer, Merck, Sanofi, AstraZeneca and others and regular pipeline and regulatory updates next week.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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. | Merck’s (MRK) head and neck cancer study on Keytruda failed while AbbVie ABBV filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. Last month, AbbVie filed for the label expansion of Qulipta in the United States as a preventive treatment for chronic migraine. | Merck’s (MRK) head and neck cancer study on Keytruda failed while AbbVie ABBV filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. Last month, AbbVie filed for the label expansion of Qulipta in the United States as a preventive treatment for chronic migraine. | Merck’s (MRK) head and neck cancer study on Keytruda failed while AbbVie ABBV filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. Last month, AbbVie filed for the label expansion of Qulipta in the United States as a preventive treatment for chronic migraine. | Merck’s (MRK) head and neck cancer study on Keytruda failed while AbbVie ABBV filed a regulatory application in Europe seeking approval for its migraine candidate atogepant. AbbVie Seeks Approval for Migraine Candidate in Europe: AbbVie submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) seeking approval of its CGRP receptor antagonist, atogepant for the prophylaxis treatment of migraine. Last month, AbbVie filed for the label expansion of Qulipta in the United States as a preventive treatment for chronic migraine. |
23240.0 | 2022-07-22 00:00:00 UTC | Zacks Value Investor Highlights: Merck, Maravai LifeSciences, Sensus Healthcare, PetIQ and AbbVie | ABBV | https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-merck-maravai-lifesciences-sensus-healthcare-petiq-and | nan | nan | For Immediate Release
Chicago, IL – July 22, 2022 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1956032/5-cheap-healthcare-stocks-in-2022
5 Cheap Healthcare Stocks in 2022
Welcome to Episode #290 of the Value Investor Podcast.
(0:45) - Are There Value Stocks In The Healthcare Sector?
(6:00) - Tracey’s Top Stock Picks
(19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV
Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
There's plenty of value stocks in 2022 and they aren't all in energy or the banks.
Healthcare stocks got a big boost during the first year of the pandemic as investors rushed to buy diagnostic and vaccine companies. But that trade was quickly over as investors rotated into the large cap growth stocks.
But now, in the summer of 2022, healthcare stocks have been ignored and are cheap.
Screening for Top Cheap Healthcare Stocks
Tracey ran a basic screen using the Zacks Medical sector, a forward P/E under 15, a stock price above $5 a share, and a top Zacks Rank of #1 (Strong Buy) or #2 (Buy).
The top Zacks Ranks should give stocks that have rising earnings estimates which is key in this economic environment where companies have been cutting guidance.
This screen returned 16 stocks.
5 Cheap Healthcare Stocks in 2022
1. Merck (MRK)
Merck is one of the large global pharmaceutical companies. Shares are down 17.1% in 2022, even though earnings are expected to rise 21.6% in 2022.
Merck shares are cheap, with a forward P/E of 12.6. It's a Zacks Rank #1 (Strong Buy).
Investors also get a dividend yielding 2.9%.
Should Merck be on your short list?
2. Maravai LifeSciences (MRVI)
Maravai LifeSciences enables the development of drug therapies, diagnostics and novel vaccines for customers in biopharma, vaccines, diagnostics and cell and gene therapy. It's a mid-cap company with a market cap of $6.9 billion.
In the first quarter, Maravai LifeSciences had record quarterly revenue, up 65% year-over-year.
But shares are down 35.8% year-to-date. After the sell-off, Maravai LifeSciences shares are cheap with a forward P/E of 14.5 as earnings are expected to rise 15.6% in 2022.
It is a Zacks Rank #2 (Buy).
Is Maravai LifeSciences on sale?
3. Sensus Healthcare (SRTS)
Sensus Healthcare is a small cap medical device company with a market cap of $169.7 million. It makes a non-surgical treatment, called Superficial Radiation Therapy, for non-melanoma skin cancer.
First quarter revenue was up 237% to $10.3 million.
Shares are up 41% year-to-date but Sensus Healthcare is still cheap with a forward P/E of 6.7. Earnings are expected to rise 512% this year.
Sensus Healthcare is a Zacks Rank #2 (Buy) stock.
Should value investors be looking at the small caps like Sensus Healthcare for long-term buying opportunities?
4. PetIQ (PETQ)
PetIQ is a leading pet medication and wellness company. Not all healthcare opportunities are on the human side.
Shares have fallen 23.4% year-to-date and are down 51% over the last year. They were recently at 5-year lows.
PetIQ is cheap, at a forward P/E of 14.4. But is it cheap enough? Sales are expected to rise just 5.5% in 2022.
Should investors be waiting on the sidelines on PetIQ?
5. AbbVie (ABBV)
AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm.
AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7.
Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%.
Is AbbVie a place to hide out in 2022 during the market volatility?
What Else Do You Need to Know About Cheap Healthcare Stocks?
Tune into this week's podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in her personal portfolio.]
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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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.
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
Merck & Co., Inc. (MRK): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
PetIQ, Inc. (PETQ): Free Stock Analysis Report
Sensus Healthcare, Inc. (SRTS): Free Stock Analysis Report
Maravai LifeSciences Holdings, Inc. (MRVI): 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. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie (ABBV) AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie (ABBV) AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie (ABBV) AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie (ABBV) AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. |
23241.0 | 2022-07-22 00:00:00 UTC | Could AbbVie Stock Help You Retire a Millionaire? | ABBV | https://www.nasdaq.com/articles/could-abbvie-stock-help-you-retire-a-millionaire-0 | nan | nan | Finding a good group of stocks to invest in for the long haul can be part of a sound strategy in getting your portfolio to be worth $1 million. The more you invest, the easier it'll be to reach that target. One way to maximize your odds for success is by investing in stocks that are both growing and pay dividends.
One potential option is drugmaker AbbVie (NYSE: ABBV). Below, I'll look at whether it can be a key part of that strategy.
The company boasts a promising pipeline
Having a strong pipeline is critical for a company's growth to continue in the long haul. Patents run out, and businesses need to plan how to cover for inevitable declines in revenue as more competition enters the market. AbbVie is facing that situation today as its hugely successful rheumatoid arthritis drug Humira will lose patent protection next year.
However, with the help of AbbVie's pipeline, the company can help find ways to make up for those declines. It currently has close to two dozen phase 3 trials ongoing focused on multiple therapeutic areas, including oncology, immunology, neuroscience, aesthetics, and eye care. It also bolstered its business when it acquired Botox maker Allergan in 2020 for $63 billion. Not only did that add new products into the mix, but it also meant new growth opportunities for AbbVie.
Two of AbbVie's most promising products, Rinvoq and Skyrizi, are already generating strong numbers today and are still undergoing trials for more indications. Through the first three months of 2022, their sales totaled $1.4 billion and rose by 60% year over year. By comparison, Humira's revenue was $4.7 billion and declined by 3%. Management stated on a previousearnings callthat the two drugs combined would reach higher peak annual revenue than Humira achieved.
Its dividend can help further accelerate returns
Another feature that makes AbbVie attractive is its dividend. It yields 3.8%, which is far better than the S&P 500 average of 1.7%. The company has also been increasing its dividend payments. From quarterly payments of $0.64 back in 2017, the dividend has more than doubled to $2.20.
It would take an investment of roughly $26,500 into AbbVie for you to collect $1,000 in dividend income each year. And if it would take another five years for that dividend to double, then you could be generating $2,000 each year. There are no guarantees when it comes to dividends, but as AbbVie is a Dividend King, it has a strong track record, and as long as the business continues generating strong results, those rate hikes are likely to continue.
There's certainly no cause for concern today: AbbVie reported more than $22 billion in free cash flow over the trailing 12 months (versus dividend payments of $9.5 billion). The business looks to be in fine shape, and that's not likely to change anytime soon.
Can an investment in AbbVie earn you $1 million?
Given the company's growth potential and high-yielding dividends, there's definitely a path for an investment in AbbVie to significantly rise in value over the years. Over the past decade, AbbVie's total returns (including dividends) have totaled 538% -- far higher than the S&P 500's returns of just 227%. It wouldn't be surprising for that trend to continue, as AbbVie has a bright future ahead and is generating tons of cash flow that can help it pursue more growth opportunities if it needs to do so to strengthen its pipeline.
The key question is how much investors would need to invest in the stock to get to $1 million. If the stock were to average a return of 10% (which is about the S&P average) for the next 25 years, a $93,000 investment would be needed to get to $1 million during that time frame. However, that may be too much exposure to one stock, and you may want to spread an investment that size across multiple growth stocks to balance your risk.
But the conclusion remains the same: AbbVie can help you get to the $1 million mark by retirement.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is facing that situation today as its hugely successful rheumatoid arthritis drug Humira will lose patent protection next year. It wouldn't be surprising for that trend to continue, as AbbVie has a bright future ahead and is generating tons of cash flow that can help it pursue more growth opportunities if it needs to do so to strengthen its pipeline. One potential option is drugmaker AbbVie (NYSE: ABBV). | There's certainly no cause for concern today: AbbVie reported more than $22 billion in free cash flow over the trailing 12 months (versus dividend payments of $9.5 billion). Over the past decade, AbbVie's total returns (including dividends) have totaled 538% -- far higher than the S&P 500's returns of just 227%. One potential option is drugmaker AbbVie (NYSE: ABBV). | There are no guarantees when it comes to dividends, but as AbbVie is a Dividend King, it has a strong track record, and as long as the business continues generating strong results, those rate hikes are likely to continue. Given the company's growth potential and high-yielding dividends, there's definitely a path for an investment in AbbVie to significantly rise in value over the years. One potential option is drugmaker AbbVie (NYSE: ABBV). | One potential option is drugmaker AbbVie (NYSE: ABBV). AbbVie is facing that situation today as its hugely successful rheumatoid arthritis drug Humira will lose patent protection next year. However, with the help of AbbVie's pipeline, the company can help find ways to make up for those declines. |
23242.0 | 2022-07-21 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-4 | nan | nan | AbbVie (ABBV) closed at $147.75 in the latest trading session, marking a +0.04% move from the prior day. The stock lagged the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.31%.
Coming into today, shares of the drugmaker had gained 0.09% in the past month. In that same time, the Medical sector gained 7.32%, while the S&P 500 gained 7.91%.
AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. In that report, analysts expect AbbVie to post earnings of $3.28 per share. This would mark year-over-year growth of 5.47%. Our most recent consensus estimate is calling for quarterly revenue of $14.65 billion, up 4.97% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.88 per share and revenue of $59.61 billion. These results would represent year-over-year changes of +9.29% and +6.08%, respectively.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 10.64. This represents a discount compared to its industry's average Forward P/E of 12.25.
Investors should also note that ABBV has a PEG ratio of 4.2 right now. 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 2.11 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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 at $147.75 in the latest trading session, marking a +0.04% move from the prior day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.88 per share and revenue of $59.61 billion. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.88 per share and revenue of $59.61 billion. AbbVie (ABBV) closed at $147.75 in the latest trading session, marking a +0.04% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.88 per share and revenue of $59.61 billion. AbbVie (ABBV) closed at $147.75 in the latest trading session, marking a +0.04% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie (ABBV) closed at $147.75 in the latest trading session, marking a +0.04% move from the prior day. AbbVie will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. |
23243.0 | 2022-07-21 00:00:00 UTC | 5 Cheap Healthcare Stocks in 2022 | ABBV | https://www.nasdaq.com/articles/5-cheap-healthcare-stocks-in-2022 | nan | nan | (0:45) - Are There Value Stocks In The Healthcare Sector?
(6:00) - Tracey’s Top Stock Picks
(19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV
Podcast@Zacks.com
Welcome to Episode #290 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
There’s plenty of value stocks in 2022 and they aren’t all in energy or the banks.
Healthcare stocks got a big boost during the first year of the pandemic as investors rushed to buy diagnostic and vaccine companies. But that trade was quickly over as investors rotated into the large cap growth stocks.
But now, in the summer of 2022, healthcare stocks have been ignored and are cheap.
Screening for Top Cheap Healthcare Stocks
Tracey ran a basic screen using the Zacks Medical sector, a forward P/E under 15, a stock price above $5 a share, and a top Zacks Rank of #1 (Strong Buy) or #2 (Buy).
The top Zacks Ranks should give stocks that have rising earnings estimates which is key in this economic environment where companies have been cutting guidance.
This screen returned 16 stocks.
5 Cheap Healthcare Stocks in 2022
1. Merck MRK
Merck is one of the large global pharmaceutical companies. Shares are down 17.1% in 2022, even though earnings are expected to rise 21.6% in 2022.
Merck shares are cheap, with a forward P/E of 12.6. It’s a Zacks Rank #1 (Strong Buy).
Investors also get a dividend yielding 2.9%.
Should Merck be on your short list?
2. Maravai LifeSciences MRVI
Maravai LifeSciences enables the development of drug therapies, diagnostics and novel vaccines for customers in biopharma, vaccines, diagnostics and cell and gene therapy. It’s a mid-cap company with a market cap of $6.9 billion.
In the first quarter, Maravai LifeSciences had record quarterly revenue, up 65% year-over-year.
But shares are down 35.8% year-to-date. After the sell-off, Maravai LifeSciences shares are cheap with a forward P/E of 14.5 as earnings are expected to rise 15.6% in 2022.
It’s is a Zacks Rank #2 (Buy).
Is Maravai LifeSciences on sale?
3. Sensus Healthcare SRTS
Sensus Healthcare is a small cap medical device company with a market cap of $169.7 million. It makes a non-surgical treatment, called Superficial Radiation Therapy, for non-melanoma skin cancer.
First quarter revenue was up 237% to $10.3 million.
Shares are up 41% year-to-date but Sensus Healthcare is still cheap with a forward P/E of 6.7. Earnings are expected to rise 512% this year.
Sensus Healthcare is a Zacks Rank #2 (Buy) stock.
Should value investors be looking at the small caps like Sensus Healthcare for long-term buying opportunities?
4. PetIQ PETQ
PetIQ is a leading pet medication and wellness company. Not all healthcare opportunities are on the human side.
Shares have fallen 23.4% year-to-date and are down 51% over the last year. They were recently at 5-year lows.
PetIQ is cheap, at a forward P/E of 14.4. But is it cheap enough? Sales are expected to rise just 5.5% in 2022.
Should investors be waiting on the sidelines on PetIQ?
5. AbbVie ABBV
AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm.
AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7.
Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%.
Is AbbVie a place to hide out in 2022 during the market volatility?
What Else Do You Need to Know About Cheap Healthcare Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in her personal portfolio.]
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
PetIQ, Inc. (PETQ): Free Stock Analysis Report
Sensus Healthcare, Inc. (SRTS): Free Stock Analysis Report
Maravai LifeSciences Holdings, Inc. (MRVI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Welcome to Episode #290 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Welcome to Episode #290 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Welcome to Episode #290 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. | (6:00) - Tracey’s Top Stock Picks (19:50) - Episode Roundup: MRK, MRVI, SRTS, PETQ, ABBV Podcast@Zacks.com Welcome to Episode #290 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large cap pharmaceutical company that owns Humira and popular aesthetic drugs Botox and Juvederm. AbbVie shares are up about 10% year-to-date but are still cheap, with a forward P/E of 10.7. Dividend investors are big fans of AbbVie, as it pays an attractive dividend yielding 3.8%. |
23244.0 | 2022-07-21 00:00:00 UTC | Healthcare ETFs in Focus Ahead of Q2 Earnings | ABBV | https://www.nasdaq.com/articles/healthcare-etfs-in-focus-ahead-of-q2-earnings | nan | nan | The healthcare sector has gained some momentum lately on investors’ rush to safety in a volatile stock market. The sector is non-cyclical in nature, which in turn, is providing a cushion to the portfolio. Additionally, recession fears have raised the appeal for defensive bets.
As such, the ultra-popular ETFs, Health Care Select Sector SPDR Fund XLV, Vanguard Health Care ETF VHT, iShares U.S. Healthcare ETF IYH and Fidelity MSCI Health Care Index ETF FHLC are up around 9% each over the past month.
The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV, Bristol Myers Squibb BMY and Eli Liily LLY that dominate returns. These firms are lined up to report their earnings in the next two weeks. All these stocks collectively account for 27.2% share in XLV, 26.7% in IYH, 24.3% in VHT and 23.2% in FHLC (see: all the Healthcare ETFs here).
Let’s dig deeper into the earnings picture of these companies, which will drive the performance of the above-mentioned funds in the coming days:
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Surprise Prediction for These Stocks
Pfizer has a Zacks Rank #2 and an Earnings ESP of -1.63%. The stock witnessed a positive earnings estimate revision of a penny for the to-be-reported quarter over the past seven days. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. Pfizer delivered an earnings surprise of 14.76%, on average, in the past four quarters and has a VGM Score of A. Pfizer is scheduled to report earnings on Jul 28, before the opening bell.
Merck is expected to report results on Jul 28 before market open. It has a Zacks Rank #2 and an Earnings ESP of +7.18%. The stock witnessed a positive earnings estimate revision of nine cents over the past 30 days for the to-be-reported quarter. Additionally, Merck delivered an average beat of 13.42% in the last four quarters. Merck has a VGM Score of B.
Amgen carries a Zacks Rank #3 and has an Earnings ESP of -1.85%. It witnessed a positive earnings estimate revision of a penny over the past seven days for the quarter to be reported. The earnings surprise track over the past four quarters is strong, with the beat being 5.68%, on average. The stock has a VGM Score of A. Amgen will report earnings on Aug 4 (read: 5 ETFs Riding High on the Biotech Comeback5 ETFs Riding High on the Biotech Comeback).
AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.45%. It saw a negative earnings estimate revision of nine cents over the past 30 days for the to-be-reported quarter and delivered an earnings surprise of 1.01%, on average, in the last four quarters. The stock has a VGM Score of A. The company is scheduled to report on Jul 29 before the opening bell.
Bristol-Myers will likely report earnings on Jul 27 before the opening bell. It has a Zacks Rank #3 and an Earnings ESP of -4.21%. The stock delivered an earnings surprise of 2.36%, on average, over the past four quarters, but saw negative earnings estimate revision of 2 cents for the to-be-reported quarter over the past seven days. It has a VGM Score of A.
Eli Lilly is expected to release earnings on Aug 4 before market open. It has a Zacks Rank #3 and an Earnings ESP of -4.19%. The stock saw a negative earnings estimate revision of three cents over the seven days for the to-be-reported quarter. Eli Lilly’s earnings surprise is 2.26%, on average, over the last four quarters. Eli Lilly has a VGM Score of A (read: Tap Q2 Earnings Growth With Sector ETFs).
Summing Up
The healthcare sector is expected to witness modest earnings growth of 1.5% in the second quarter. In particular, FHLC has a Zacks ETF Rank #2 while the remaining three have a Zacks ETF Rank #1.
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Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
iShares U.S. Healthcare ETF (IYH): ETF Research Reports
Vanguard Health Care ETF (VHT): ETF Research Reports
Fidelity MSCI Health Care Index ETF (FHLC): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV, Bristol Myers Squibb BMY and Eli Liily LLY that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.45%. AbbVie Inc. (ABBV): Free Stock Analysis Report | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV, Bristol Myers Squibb BMY and Eli Liily LLY that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.45%. AbbVie Inc. (ABBV): Free Stock Analysis Report | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV, Bristol Myers Squibb BMY and Eli Liily LLY that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.45%. AbbVie Inc. (ABBV): Free Stock Analysis Report | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV, Bristol Myers Squibb BMY and Eli Liily LLY that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.45%. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23245.0 | 2022-07-21 00:00:00 UTC | 3 Steps You'll Regret Not Taking During This Bear Market | ABBV | https://www.nasdaq.com/articles/3-steps-youll-regret-not-taking-during-this-bear-market | nan | nan | If your portfolio is teetering amid a turbulent bear market -- as pretty much everyone's is at the moment -- you need a plan to come out ahead, and you need to act on it. Fruitful investments made today could have the benefit of a very long run-up once the bear market subsides, and mistakes made out of fear could have consequences for a long time, too.
With those consequences in mind, let's look at three quick steps you can take to make the best out of the market as it is right now.
1. Build on your high-confidence positions
The first thing to do when the market gets rough is to use it as an opportunity to gobble up shares of companies in your portfolio you think will continue to appreciate in value for a long time, even if their stock price is falling in the short term.
Think about a business like Pfizer (NYSE: PFE), which has seen its shares fall by 11% so far this year despite widespread successes with hit products like Comirnaty, its coronavirus vaccine, and Paxlovid, its antiviral pill for COVID. If you have a position in it and the recent drop scares you off from adding more, you're missing out on a sale -- assuming that you actually believe it'll eventually recover.
So, especially for an investment like Pfizer, which is steadily growing its sales and net income, it makes more sense to be buying shares than sitting on the sidelines. The real trick is to keep investing even when high-confidence picks get rocked.
And as long as your investing thesis is still as valid as when you started buying the shares, you'll be getting the biggest discounts when things look like they're crashing the hardest. Just be aware that you might need to wait a few years before your spending starts to pay off with outsized returns.
2. Set up a dividend reinvestment plan
Another great action to take to weather the bear market is to enable a dividend reinvestment plan (DRIP) for your dividend-paying stocks. Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example:
ABBV data by YCharts
As the chart shows, the price returns from AbbVie shares are nowhere near the total return that's possible by retaining and reinvesting each of its quarterly dividend payments. When you reinvest your dividends instead of accepting them in cash and spending them elsewhere, your position compounds in value much faster.
And when share prices dip during a bear market, the stock's dividend yield increases accordingly, meaning that if you aren't reinvesting your dividends at that moment, you're missing out on securing some higher-yield shares for the remaining years of your long hold.
Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there's a bear market, recession, or other economic issues. That means if you don't set your shares to reinvest their dividends now, then by the time the bear market is over, you might have missed out on quite a bit of compounding at a very attractive rate. And it would be a shame to lose out on this bonus that's there for the taking.
3. Talk yourself out of panic selling (or buying)
Perhaps the most important step to take during a bear market or market crash is to take a deep breath and talk yourself out of selling your shares in a panic. (It's also helpful to avoid frantically buying the dip on stocks you aren't fully confident in but seem priced like a bargain.) Selling your shares locks in whatever losses you've sustained, regardless of whether there is a valid business reason for the underlying company to experience additional headwinds.
In the current market, it's true that there are quite a few economic headwinds making things difficult, but it's also true that buying high and selling low is a losing strategy. Eventually, the market will recover, and when it does, the stock you're itching to sell could easily come back with a vengeance. Therefore, when you get tempted to pull the plug on some of your investments, you'll regret not stepping back, especially if you don't have a need for the money you invested anytime soon.
When I get tempted to sell due to market chaos, I find that it's often helpful to simply close my browser tab displaying my portfolio and take a walk outside.
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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. | Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example: ABBV data by YCharts As the chart shows, the price returns from AbbVie shares are nowhere near the total return that's possible by retaining and reinvesting each of its quarterly dividend payments. Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there's a bear market, recession, or other economic issues. Build on your high-confidence positions The first thing to do when the market gets rough is to use it as an opportunity to gobble up shares of companies in your portfolio you think will continue to appreciate in value for a long time, even if their stock price is falling in the short term. | Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example: ABBV data by YCharts As the chart shows, the price returns from AbbVie shares are nowhere near the total return that's possible by retaining and reinvesting each of its quarterly dividend payments. Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there's a bear market, recession, or other economic issues. And when share prices dip during a bear market, the stock's dividend yield increases accordingly, meaning that if you aren't reinvesting your dividends at that moment, you're missing out on securing some higher-yield shares for the remaining years of your long hold. | Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example: ABBV data by YCharts As the chart shows, the price returns from AbbVie shares are nowhere near the total return that's possible by retaining and reinvesting each of its quarterly dividend payments. Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there's a bear market, recession, or other economic issues. Set up a dividend reinvestment plan Another great action to take to weather the bear market is to enable a dividend reinvestment plan (DRIP) for your dividend-paying stocks. | Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example: ABBV data by YCharts As the chart shows, the price returns from AbbVie shares are nowhere near the total return that's possible by retaining and reinvesting each of its quarterly dividend payments. Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there's a bear market, recession, or other economic issues. And as long as your investing thesis is still as valid as when you started buying the shares, you'll be getting the biggest discounts when things look like they're crashing the hardest. |
23246.0 | 2022-07-20 00:00:00 UTC | Pre-Market Most Active for Jul 20, 2022 : SDIG, APLD, TQQQ, SQQQ, SNTI, QQQ, CCL, ABT, NIO, ABBV, NCLH, F | ABBV | https://www.nasdaq.com/articles/pre-market-most-active-for-jul-20-2022-%3A-sdig-apld-tqqq-sqqq-snti-qqq-ccl-abt-nio-abbv | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -17.24 to 12,232.18. The total Pre-Market volume is currently 57,213,766 shares traded.
The following are the most active stocks for the pre-market session:
Stronghold Digital Mining, Inc. (SDIG) is +0.58 at $2.72, with 8,872,950 shares traded. As reported by Zacks, the current mean recommendation for SDIG is in the "strong buy range".
Applied Blockchain, Inc. (APLD) is +0.25 at $2.37, with 6,203,316 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.05 at $28.41, with 4,447,790 shares traded. This represents a 33.26% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.1 at $48.25, with 3,346,782 shares traded. This represents a 71.4% increase from its 52 Week Low.
Senti Biosciences, Inc. (SNTI) is +0.28 at $2.05, with 2,451,540 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is -0.5 at $297.80, with 1,178,276 shares traded. This represents a 10.59% increase from its 52 Week Low.
Carnival Corporation (CCL) is +0.03 at $10.39, with 635,338 shares traded. CCL's current last sale is 74.21% of the target price of $14.
Abbott Laboratories (ABT) is -2.89 at $107.04, with 597,069 shares traded. Smarter Analyst Reports: Abbott Rewards Shareholders; Shares Record New All-Time High
NIO Inc. (NIO) is -0.2312 at $19.97, with 508,803 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
AbbVie Inc. (ABBV) is -0.24 at $149.50, with 443,571 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range".
Norwegian Cruise Line Holdings Ltd. (NCLH) is -0.02 at $12.83, with 428,426 shares traded. NCLH's current last sale is 64.15% of the target price of $20.
Ford Motor Company (F) is unchanged at $12.59, with 404,166 shares traded.F is scheduled to provide an earnings report on 7/27/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.43 per share, which represents a 13 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV) is -0.24 at $149.50, with 443,571 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". Smarter Analyst Reports: Abbott Rewards Shareholders; Shares Record New All-Time High | As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". AbbVie Inc. (ABBV) is -0.24 at $149.50, with 443,571 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range". | AbbVie Inc. (ABBV) is -0.24 at $149.50, with 443,571 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". The total Pre-Market volume is currently 57,213,766 shares traded. | AbbVie Inc. (ABBV) is -0.24 at $149.50, with 443,571 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". As reported by Zacks, the current mean recommendation for SDIG is in the "strong buy range". |
23247.0 | 2022-07-20 00:00:00 UTC | AbbVie To Collaborate With ISTAR Medical; To Pay $60 Mln To Further Develop MINIject | ABBV | https://www.nasdaq.com/articles/abbvie-to-collaborate-with-istar-medical-to-pay-%2460-mln-to-further-develop-miniject | nan | nan | (RTTNews) - AbbVie (ABBV) on Wednesday said it signed an alliance with iSTAR Medical SA, a Belgian medtech firm, to further develop and commercialize iSTAR's MINIject, a minimally invasive glaucoma surgical device.
As per the agreement, iSTAR will receive a $60 million in non-dilutive upfront payment. iSTAR will continue to develop and commercialize MINIject until completion of the STAR-V clinical research, a premarket approval study to enable commercialization of the device in the U.S.
In addition, AbbVie will hold the exclusive right to acquire iSTAR and lead subsequent global development and commercialization of the MINIject device.
If AbbVie exercises the right to buy iSTAR, the shareholders of the medtech company would also be eligible to receive extra contingent payments of up to $475 million as a closing payment.
The latest financing will boost the continued development and commercialization of MINIject, including ongoing clinical studies and further enhancements to the technology, among others.
The collaboration is also an opportunity to expand AbbVie's eye care business, building on its glaucoma portfolio which includes drops, sustained release implants, and stent offerings.
In 2021, MINIject obtained Conformité Européenne (CE) marking approval to commercialize it in European countries and launched commercially in select European countries in early 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition, AbbVie will hold the exclusive right to acquire iSTAR and lead subsequent global development and commercialization of the MINIject device. The collaboration is also an opportunity to expand AbbVie's eye care business, building on its glaucoma portfolio which includes drops, sustained release implants, and stent offerings. (RTTNews) - AbbVie (ABBV) on Wednesday said it signed an alliance with iSTAR Medical SA, a Belgian medtech firm, to further develop and commercialize iSTAR's MINIject, a minimally invasive glaucoma surgical device. | (RTTNews) - AbbVie (ABBV) on Wednesday said it signed an alliance with iSTAR Medical SA, a Belgian medtech firm, to further develop and commercialize iSTAR's MINIject, a minimally invasive glaucoma surgical device. In addition, AbbVie will hold the exclusive right to acquire iSTAR and lead subsequent global development and commercialization of the MINIject device. If AbbVie exercises the right to buy iSTAR, the shareholders of the medtech company would also be eligible to receive extra contingent payments of up to $475 million as a closing payment. | (RTTNews) - AbbVie (ABBV) on Wednesday said it signed an alliance with iSTAR Medical SA, a Belgian medtech firm, to further develop and commercialize iSTAR's MINIject, a minimally invasive glaucoma surgical device. In addition, AbbVie will hold the exclusive right to acquire iSTAR and lead subsequent global development and commercialization of the MINIject device. If AbbVie exercises the right to buy iSTAR, the shareholders of the medtech company would also be eligible to receive extra contingent payments of up to $475 million as a closing payment. | (RTTNews) - AbbVie (ABBV) on Wednesday said it signed an alliance with iSTAR Medical SA, a Belgian medtech firm, to further develop and commercialize iSTAR's MINIject, a minimally invasive glaucoma surgical device. In addition, AbbVie will hold the exclusive right to acquire iSTAR and lead subsequent global development and commercialization of the MINIject device. If AbbVie exercises the right to buy iSTAR, the shareholders of the medtech company would also be eligible to receive extra contingent payments of up to $475 million as a closing payment. |
23248.0 | 2022-07-20 00:00:00 UTC | 7 Best Income Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/7-best-income-stocks-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While rational traders participate in the equities market to see solid returns on their investments, the present paradigm encourages everyone to consider the best income stocks to buy now. Of course, no one is going to complain about robust capital gains; That is, until tax season. But the inflationary crisis we’re in drives more emphasis on passive income than ever before.
As of this writing, the annual inflation rate for the U.S. is 8.6% for the 12 months ended May 2022, the largest annual increase since December 1981. Naturally, consumers mostly feel the heat when they pump gasoline into their cars or buy groceries for their family. To mitigate this sticker shock, the best income stocks to buy may help.
7 Best Small-Cap Growth Stocks to Buy Now
Another factor to consider during this period is inflation’s impact on real earnings. Because prices of goods and core utilities are rising, you’re basically receiving a pay cut or hidden tax. Obviously, such a circumstance can be incredibly frustrating, though it cynically adds to the bullish case for the best income stocks to buy now.
Ticker Company Price
CVX Chevron $144.61
ABBV AbbVie $149.74
IBM IBM $130.88
ENB Enbridge $43.15
ADC Agree Realty $76.26
LTC LTC Properties $39.74
SCCO Southern Copper $49.08
Income Stocks to Buy: Chevron (CVX)
Source: Jeff Whyte / Shutterstock.com
Though hydrocarbon-related companies have been unpopular for a very long time, the dirty little secret is that they’re relevant and necessary. As I’ve mentioned several times before, fossil fuels are difficult to quit because of their high energy density. Essentially, for just a gallon of gas, you can move an SUV down the freeway for 20 or 30 miles.
You’re just not going to find that kind of density from electric vehicles, which is one of the most powerful (albeit cynical) arguments bolstering Chevron (NYSE:CVX). One of the big oil giants, Chevron will likely never court the public’s sympathies. Setting that issue aside, though, the company is extraordinarily relevant, especially because Russia’s reckless war in Ukraine has effectively shelved much of the world’s energy supplies.
As The Economist pointed out recently, international policymakers have warned that the Ukraine crisis could last for years. Such a scenario presents myriad questions about societal and economic stability. However, it’s unavoidable that it keeps the lights on at Chevron and then some, making it one of the most effective among the best income stocks to buy.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
While the vast majority of the global public is ready to put the coronavirus nightmare behind it, Nature.com reported on a concerning new phenomenon. While Covid-19 vaccines are due for an upgrade, “emerging variants and fickle immune reactions mean it’s not clear what new jabs should look like.”
Nevertheless, after two years of lockdowns and various mitigation mandates, the fear of Covid-19 has been fading. Instead, concepts like retail revenge or revenge travel have taken over public sentiment, which suits AbbVie (NYSE:ABBV) just fine. As a pharmaceutical giant that now owns the Botox neurotoxin, AbbVie is an underappreciated investment for the return to normal.
Back during the worst of the pandemic, the nation experienced what a Washington Post op-ed referred to as our pajama moment. Those days are now gone, with powerful voices in business demanding that their workers return to the office. In other words, the emphasis is now back to looking good, which may help lift Botox sales.
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In turn, ABBV stock is one of the best income stocks to buy now — featuring a forward yield of 3.7%.
Income Stocks to Buy: IBM (IBM)
Source: shutterstock.com/LCV
Amid the tight competition in the technology sphere, IBM (NYSE:IBM) often times gets overlooked. It’s not necessarily fair considering that the company has been making significant inroads with cloud computing, cybersecurity, artificial intelligence and other groundbreaking innovations. Still, it’s tough to shed a less-than-favorable reputation.
However, IBM is so far getting the last laugh. On a year-to-date (or YTD) basis, shares are down 2%, which isn’t exactly riveting stuff. But when stacked up against popular tech plays — many of which are hemorrhaging sizable double-digit figures — IBM might as well be shooting to the moon. Indeed, since December of last year, Big Blue has been quietly making a comeback.
Long-term investors may want to consider IBM simply on the basis that it has its hands in several relevant technologies. Adding in its passive income potential is a sweet bonus, particularly with its forward yield of 5.1%. Sometimes, slow and steady wins the race for the best income stocks to buy.
Enbridge (ENB)
Source: JHVEPhoto / Shutterstock.com
While myriad oil and natural gas companies may qualify for the best income stocks to buy now, one of the challenges for companies tied to the upstream business model — or the exploration and initial production of fossil fuels — is that energy pricing can be volatile. For a little bit more stability, you may want to consider midstream operators like Enbridge (NYSE:ENB).
Midstream firms specialize in activities such as processing, storage, transportation and marketing of hydrocarbon products. The beauty about Enbridge is that the company owns and operates the largest network of oil and gas pipelines in North America, making it an ingrained component of the transportation sector and more broadly, national security.
7 Dividend Stocks Trading at a Huge Discount Right Now
What really makes ENB stock stand out as one of the best income stocks to buy is its generous payout. Featuring a forward yield of 6.2%, Enbridge can help cushion some of the shock associated with inflation. In addition, data on vehicle miles traveled suggests that the company has significant upside ahead.
Income Stocks to Buy: Agree Realty (ADC)
Source: Pavel Kapysh / Shutterstock.com
Among the largest real estate investment trusts (REITs), Agree Realty (NYSE:ADC) is particularly attractive for its relevance. While the consumer economy is undoubtedly hurting from the soaring inflation rate, Agree Realty invests in properties net leased to some of the biggest names in commerce such as Walmart (NYSE:WMT) and Home Depot (NYSE:HD).
Put another way, while many analysts expect a recession of some sort, few are calling for a devastating depression that would result in unprecedented cuts to spending. The likely scenario is that consumers will focus more on essential goods, which should benefit Agree Realty.
Another factor that bolsters the case of ADC stock being one of the best income stocks to buy now is that it distributes passive income on a monthly basis. As you know, the frequency of life — mortgage/rent payments, internet service contracts, utility bills — is monthly. Therefore, Agree Realty helps you get the funds you need when you need them the most.
LTC Properties (LTC)
Source: Vitalii Vodolazskyi / Shutterstock
If you’re seeking a diversified portfolio of the best income stocks to buy, LTC Properties (NYSE:LTC) is well worth consideration. For one thing, this REIT also offers monthly payouts, enabling you to align your passive income with the bills that you pay. Furthermore, this payout frequency enables faster compounding, providing a critical tool to combat inflation.
Beyond this administrative point, though, LTC Properties is attractive for its core business. The REIT specializes in senior housing and healthcare, primarily through sale-leasebacks, mortgage financing, joint-ventures, construction financing and structured finance solutions. LTC’s portfolio is roughly divided in half between senior housing and skilled nursing properties.
As myriad publications have mentioned, baby boomers are retiring in large numbers, with this pace of retirement accelerating. The unique factors of the Covid-19 crisis have also led to workers older than 55 representing the majority of participants of the Great Resignation.
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Basically, over the next several years, demand for senior care should rise exponentially. Therefore, LTC stock appears a solid long-term bet among the best income stocks to buy.
Income Stocks to Buy: Southern Copper (SCCO)
Source: viewimage / Shutterstock
With the rise of meme stocks and cryptocurrencies, it’s apparent that quite a few people have the speculation bug in their bones. Well, I’m the type of person that likes to give the audience what they want. So, if you want to dial up the risk-reward factor for the best income stocks to buy now, you may want to have a look at Southern Copper (NYSE:SCCO).
To be clear, copper prices are slipping badly, largely on global recession fears. With inflation reducing real earnings, consumers are naturally going to reduce their expenditures, first avoiding the discretionary purchases and later much of the lower-priority essentials. Eventually, such cuts are going to impact copper demand, which isn’t great for SCCO stock.
At the same time, copper is critical for the industries and technologies of tomorrow, most notably electric vehicles (or EVs). Moreover, with the electrification of transportation being a vital component of the broader strategy to reduce foreign oil dependencies, SCCO stock might be worth consideration.
Oh yeah, the company features a forward yield of 10%.
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.
The post 7 Best Income 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. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com While the vast majority of the global public is ready to put the coronavirus nightmare behind it, Nature.com reported on a concerning new phenomenon. Ticker Company Price CVX Chevron $144.61 ABBV AbbVie $149.74 Instead, concepts like retail revenge or revenge travel have taken over public sentiment, which suits AbbVie (NYSE:ABBV) just fine. | Ticker Company Price CVX Chevron $144.61 ABBV AbbVie $149.74 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com While the vast majority of the global public is ready to put the coronavirus nightmare behind it, Nature.com reported on a concerning new phenomenon. Instead, concepts like retail revenge or revenge travel have taken over public sentiment, which suits AbbVie (NYSE:ABBV) just fine. | The 7 Best Stocks to Buy on a Dip in July In turn, ABBV stock is one of the best income stocks to buy now — featuring a forward yield of 3.7%. Ticker Company Price CVX Chevron $144.61 ABBV AbbVie $149.74 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com While the vast majority of the global public is ready to put the coronavirus nightmare behind it, Nature.com reported on a concerning new phenomenon. | Ticker Company Price CVX Chevron $144.61 ABBV AbbVie $149.74 The 7 Best Stocks to Buy on a Dip in July In turn, ABBV stock is one of the best income stocks to buy now — featuring a forward yield of 3.7%. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com While the vast majority of the global public is ready to put the coronavirus nightmare behind it, Nature.com reported on a concerning new phenomenon. |
23249.0 | 2022-07-20 00:00:00 UTC | 3 High Yield Dividend Stocks To Watch Today | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-watch-today | nan | nan | Here Are 3 Top High-Yield Dividend Stocks To Check Out Right Now
As talks of a recession continue, investors could be looking to turn to high-yield dividend stocks in the stock market today. As major indices performed poorly in the first half of the year, some investors may be searching for more conservative investments for their portfolios. Now, no one likes a bear market, but they provide investors who are looking for passive income with potential opportunities.
Comparable to bonds, if a stock price declines dividend yields increase. This means investing in the best high-yield dividend stocks could offer investors an opportunity to add a defensive sentiment to their portfolios. These companies usually have shown long-term growth, with stable returns. Dividend stocks also provide relief to investors looking to protect their portfolios as we may head into a recession.
Dividend stocks may not be immune to the downturn in the stock market. Investing in more established companies is considered an inflation hedge. Broad-based sell-offs in the market potentially create more opportunities to buy quality stocks at a discount. With that being said, here are some top dividend stocks to watch in the stock market this week.
Best High-Yield Dividend Stocks To Watch Now
Big Lots (NYSE: BIG)
Altria Group (NYSE: MO)
AbbVie Inc. (NYSE: ABBV)
Big Lots
First, up on the list, we will be taking a look at home essentials retailer, Big Lots Inc. Headquartered in Columbus, Ohio Big Lots has grown to become one of America’s leading home discount retailers and a Fortune 500 company. The company operates 1,440 stores nationwide, and online through its best-in-class eCommerce platform. BIG offers an extensive variety of products including furniture, seasonal, soft home, food, consumables, and hard home. Due to Big Lots’ broad retail offerings, BIG stock could be a potential play for retail investors in light of an economic downturn. Shares of BIG stock have already more than tripled in value since its pandemic era low. The company currently has a 5.32% dividend yield.
Big Lots reported its Q1 2022 results back on May 27th, 2022. In those earnings, they reported a net loss of $11.1 million, or $0.39 per share, for the first quarter of fiscal 2022 ended April 30, 2022. This is in line with the company’s guidance, provided on March 3, 2022, of $1.10 to $1.20 net income per diluted share. Net income for the first quarter of fiscal 2021 was $94.6 million, or $2.62 per diluted share.
“Our business has grown significantly over the past two years as we benefitted not only from home-related spending but from the positive growth fueled by our Operation North Star initiatives. We have greatly improved our customer shopping experience, evidenced by an all-time high Net Promoter Score of 85% in Q1. E-commerce remains a standout, and now accounts for over 7% of our sales, with same-day deliveries growing 20% over last year,” stated CEO Bruce Thorn.
Moving along, Big Lots continues to adapt its business strategy to shifting market dynamics. This is evident in its wide selection of e-commerce services. This includes its buy online pick up in-store, curbside pickup, and same-day delivery solutions to name a few. With all this in mind, would you consider adding BIG stock to your watchlist this week?
Source: TD Ameritrade TOS
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Altria Group
Next on our list is Altria Group, Inc. They are one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. Most notably, its subsidiary Philip Morris USA Inc. is one of the most profitable U.S. cigarette manufacturers. Along with John Middleton Co. a leading cigar manufacturer. Aside from the company having a leading portfolio of tobacco products in the U.S. market, it is been working on transitioning to a smoke-free future. The company is achieving this through its initiative Moving Beyond Smoking strategy by 2030. The company has a strong dividend yield of 8.75% and cash flows from its core business.
Recently, the company received news that the U.S. Food and Drug Administration (FDA) has temporarily suspended its ban on Juul’s e-cigarette products. Altria currently has a 35% stake in Juul. The news will permit the company to keep its products on the market as they look to appeal the FDA’s ban. The ban was first issued on June 23 to ban Juul sales. The next day, a federal appeals court temporarily blocked the government ban. The ban was part of an effort by the FDA to bring scientific scrutiny to the vaping industry after years of regulatory delays. Juul reported that it has already submitted enough information and data to address all related concerns.
The company announced it will host a live audio webcast to report its 2022 second-quarter and first-half business results. This will take place Thursday, July 28th, 2022, at 9:00 am EST. Year-to-date the price of MO stock has fallen over 11% to $42.38. With such strong cash flow and dividend yield, investors might be looking to add shares of MO stock at a discount. As such, will you be adding MO stock to your watchlist of dividend stocks to watch in thestock market today
Source: TD Ameritrade TOS
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AbbVie Inc.
AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT) back in 2013. Following that, the company has increased its payout by more than 250%. The company discovers, develops, and commercializes advanced therapies. Today, it has about 50,000 employees working all around the globe to help patients. On Wednesday, the company announced an exciting piece of news.
In it, they announced a strategic transaction to develop and commercialize iSTAR Medical’s MINIject device to help treat glaucoma. The terms of the agreement state, that iSTAR Medical will receive a $60 million investment from AbbVie. AbbVie will now hold the exclusive rights to acquire iSTAR Medical. “As a leading company in eye care with a commitment to a broad and diverse portfolio from the front to the back of the eye, along with our global footprint and infrastructure in glaucoma, we are well-positioned to support bringing this MIGS offering to patients and glaucoma specialists through this strategic alliance,” stated Michael Robinson, M.D, Vice President, Global Therapeutic Area Head of Eye Care, AbbVie. He continued, “This alliance with iSTAR Medical is an important step as we continue to be an innovator in glaucoma by maximizing the value of interventional approaches throughout the treatment paradigm.“
The company seems to be firing on all cylinders and has a current annual dividend yield of 3.80%. Shares of ABBV stock are up over 4% year-to-date. With that being said, is ABBV stock worth adding to your watchlist right now?
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 High-Yield Dividend Stocks To Watch Now Big Lots (NYSE: BIG) Altria Group (NYSE: MO) AbbVie Inc. (NYSE: ABBV) Big Lots First, up on the list, we will be taking a look at home essentials retailer, Big Lots Inc. Headquartered in Columbus, Ohio Big Lots has grown to become one of America’s leading home discount retailers and a Fortune 500 company. 4 Lithium Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT) back in 2013. The terms of the agreement state, that iSTAR Medical will receive a $60 million investment from AbbVie. | Best High-Yield Dividend Stocks To Watch Now Big Lots (NYSE: BIG) Altria Group (NYSE: MO) AbbVie Inc. (NYSE: ABBV) Big Lots First, up on the list, we will be taking a look at home essentials retailer, Big Lots Inc. Headquartered in Columbus, Ohio Big Lots has grown to become one of America’s leading home discount retailers and a Fortune 500 company. 4 Lithium Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT) back in 2013. The terms of the agreement state, that iSTAR Medical will receive a $60 million investment from AbbVie. | Best High-Yield Dividend Stocks To Watch Now Big Lots (NYSE: BIG) Altria Group (NYSE: MO) AbbVie Inc. (NYSE: ABBV) Big Lots First, up on the list, we will be taking a look at home essentials retailer, Big Lots Inc. Headquartered in Columbus, Ohio Big Lots has grown to become one of America’s leading home discount retailers and a Fortune 500 company. 4 Lithium Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT) back in 2013. The terms of the agreement state, that iSTAR Medical will receive a $60 million investment from AbbVie. | Best High-Yield Dividend Stocks To Watch Now Big Lots (NYSE: BIG) Altria Group (NYSE: MO) AbbVie Inc. (NYSE: ABBV) Big Lots First, up on the list, we will be taking a look at home essentials retailer, Big Lots Inc. Headquartered in Columbus, Ohio Big Lots has grown to become one of America’s leading home discount retailers and a Fortune 500 company. 4 Lithium Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT) back in 2013. The terms of the agreement state, that iSTAR Medical will receive a $60 million investment from AbbVie. |
23250.0 | 2022-07-20 00:00:00 UTC | Biogen (BIIB) Beats on Q2 Earnings & Sales, Ups 2022 Guidance | ABBV | https://www.nasdaq.com/articles/biogen-biib-beats-on-q2-earnings-sales-ups-2022-guidance | nan | nan | Biogen BIIB reported second-quarter 2022 earnings per share (EPS) of $5.25, which significantly beat the Zacks Consensus Estimate of $4.10. In the year-ago quarter, Biogen had recorded earnings of $5.25 per share.
Sales came in at $2.59 billion, down 7% on a reported basis (5% on a constant currency basis) from the year-ago quarter, hurt by lower sales of Tecfidera and Spinraza. Sales, however, beat the Zacks Consensus Estimate of $2.47 billion.
Product sales in the quarter were $2.05 billion, down 8.1% year over year. Royalties on sales of Roche’s RHHBY Ocrevus were $291.9 million in the quarter, up 13.6% year over year. Revenues from Biogen’s share of Roche’s drugs, Rituxan and Gazyva declined 21% from the year-ago period to $144.0 million due to biosimilar competition for Rituxan. Other revenues declined 1% in the quarter to $97.9 million.
Multiple Sclerosis Revenues
Biogen’s MS revenues were $1.72 billion in the reporter quarter, including Ocrevus royalties, which declined 4% on a reported basis and 3% on a constant currency basis year over year.
Tecfidera sales declined 18.4% to $397.9 million in the quarter as multiple generic products have been launched in the United States. U.S. Tecfidera revenues declined 32.3% to $120.7 million. Outside U.S. revenues decreased 10.4% to $277.2 million, hurt by pricing pressure.
Biogen expects the entry of generics in European markets to hurt the drug’s international sales going forward. However, Biogen said it is difficult to predict when generics will be launched.
New drug Vumerity recorded $136.8 million in sales, up 50.5% year over year.
Total Fumarates (Tecfidera + Vumerity) revenues were $534.7 million in the quarter, down 7.1% year over year.
Tysabri sales declined 1.5% year over year to $516.2 million.
Combined interferon revenues (Avonex and Plegridy) in the quarter were $350.2 million, down 12.5% year over year.
Other Products
Sales of spinal muscular atrophy (SMA) drug Spinraza declined 14% (11% on a constant currency basis) year over year to $431.1 million due to a decrease in demand as a result of increased competition.
In the quarter, biosimilars revenues decreased 4% year over year (3% in constant currency) to $194 million.
Aduhelm, approved in June 2021, recorded sales of $0.1 million in the second quarter, compared with $2.8 million in the previous quarter. In April 2022, The Centers for Medicare & Medicaid Services (“CMS”) released its final National Coverage Determination (NCD) decision for the class of anti-amyloid antibodies approved by the FDA like Aduhelm. Per the final NCD decision, Medicare said it will cover FDA-approved drugs like Aduhelm only for patients enrolled in CMS-approved studies. The final NCD decision basically denied all Medicare beneficiaries access to Aduhelm, which will reduce future demand for Aduhelm to a minimal level. As a result of the NCD decision, Biogen said it will substantially wind down commercial operations for Aduhelm, retaining only minimal resources to manage patients’ access programs.
Research and development (R&D) expenses were $529 million, down 9.6% year over year. Selling, general and administrative (SG&A) expenses declined 10.2% year over year to $570 million.
2022 Guidance Increased
The company raised its previously issued total revenues as well as earnings guidance for 2022.
Total revenues are expected in the range of $9.9 to $10.1 billion in 2022, up from $9.7-$10.0 billion expected previously. The company expects continued erosion of Tecfidera’s sales in the United States. The guidance also assumes significant erosion of Rituxan in the United States due to biosimilar competition.
Adjusted earnings are expected in the range of $15.25 to $16.75, up from the prior expectation of $14.25-$16.00.
Adjusted R&D expense is expected in the range of $2.2 billion to $2.3 billion, the same as previous expectations. Adjusted SG&A is expected to be between $2.3 billion and $2.4 billion, unchanged from the previous expectations.
The adjusted tax rate is expected to be between 15.5% and 16.5%.
Our Take
Biogen beat estimates on both counts. The company also raised its financial guidance for 2022. However, shares declined 1.4% in pre-market trading.
Biogen’s stock has declined 8.2% this year so far compared with a decrease of 22.3% for the industry.
Image Source: Zacks Investment Research
A better-than-expected sales performance and cost savings prompted the guidance increase. Following the failure of Aduhelm, Biogen announced a set of near-term operational priorities to drive renewed growth and value creation over time. The initiatives are resulting in significant cost savings.
Biogen is facing multiple challenges at present like generic erosion of Tecfidera, competitive pressure for Spinraza, a declining profit share from Rituxan in the United States and Aduhelm’s failure. However, potential new product launches such as lecanemab, zuranolone and additional biosimilars can help revive growth.
In July, the FDA accepted Biogen and partner Eisai’s biologics license application (“BLA”), seeking accelerated approval for its anti-amyloid beta protofibril antibody candidate lecanemab to treat early Alzheimer’s disease. With the FDA granting priority review to the BLA, a decision is expected on Jan 6, 2023. With regard to zuranolone, Biogen and partner Sage Therapeutics have initiated the rolling submission of a new drug application (NDA) to the FDA for zuranolone for the potential treatment of major depressive disorder. The NDA submission is expected to be completed in the second half of 2022.
In biosimilars, Biogen launched Byooviz, the first biosimilar referencing Roche’s Lucentis, in the United States in the second quarter. Biogen expects it to be a meaningful top-line contributor from 2023.
Zacks Rank & Stocks to Consider
Biogen has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen Inc. Price, Consensus and EPS Surprise
Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote
Some better-ranked large drugmakers are Merck MRK and AbbVie ABBV. While Merck sports a Zacks Rank of 1, AbbVie has a Zacks Rank of 2 (Buy).
Merck’s stock has risen 20.5% this year so far. Earnings estimates for 2022 have gone up from $7.19 per share to $7.31 per share, while that for 2023 have increased from $7.12 per share to $7.15 per share over the past 90 days.
Merck topped earnings estimates in three of the last four quarters. Merck has a four-quarter earnings surprise of 13.42%, on average.
AbbVie stock is up 10.6% this year so far. Earnings estimates for 2023 have gone up from $11.81 per share to $11.86 per share over the past 60 days.
Earnings of AbbVie beat estimates in three of the last four quarters and were in line on one occasion, the average surprise being 1.01%.
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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. | Biogen Inc. Price, Consensus and EPS Surprise Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote Some better-ranked large drugmakers are Merck MRK and AbbVie ABBV. While Merck sports a Zacks Rank of 1, AbbVie has a Zacks Rank of 2 (Buy). AbbVie stock is up 10.6% this year so far. | Biogen Inc. Price, Consensus and EPS Surprise Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote Some better-ranked large drugmakers are Merck MRK and AbbVie ABBV. While Merck sports a Zacks Rank of 1, AbbVie has a Zacks Rank of 2 (Buy). AbbVie stock is up 10.6% this year so far. | Biogen Inc. Price, Consensus and EPS Surprise Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote Some better-ranked large drugmakers are Merck MRK and AbbVie ABBV. While Merck sports a Zacks Rank of 1, AbbVie has a Zacks Rank of 2 (Buy). AbbVie stock is up 10.6% this year so far. | AbbVie stock is up 10.6% this year so far. Biogen Inc. Price, Consensus and EPS Surprise Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote Some better-ranked large drugmakers are Merck MRK and AbbVie ABBV. While Merck sports a Zacks Rank of 1, AbbVie has a Zacks Rank of 2 (Buy). |
23251.0 | 2022-07-19 00:00:00 UTC | 3 Dividend Growth Stocks You Can Buy Now and Hold Forever | ABBV | https://www.nasdaq.com/articles/3-dividend-growth-stocks-you-can-buy-now-and-hold-forever | nan | nan | Are you worried about inflation eating into your savings? Perhaps you're nervous that the Federal Reserve's plan to fight inflation with rising interest rates will lead to a recession.
At times like these, it can seem like there aren't any good options to invest in, but this isn't the case. Plenty of well-established businesses have operated successfully through economic downturns that make recent conditions seem like a walk in the park.
These three leading healthcare businesses have long histories of making dividend payments and raising their payouts at least once every year. Investors who buy them now can expect steadily rising payments into and throughout their retirement years.
Abbott Laboratories
Shares of Abbott Laboratories (NYSE: ABT) have fallen more than 20% from the peak they reached in January. Throughout 2021, soaring sales of its COVID-19 tests pushed the stock higher, but now, demand for those diagnostics has fallen, and so has the stock. At the current share price, its dividend yields 1.7%, but that yield could rise sharply in the years ahead.
In addition to its industry-leading diagnostics business, Abbott Laboratories has a medical devices arm that markets a variety of products, including continuous blood glucose monitors (CGMs) that are increasingly popular among people with diabetes and the physicians who treat them.
Abbott's latest FDA-approved CGM, the Freestyle Libre 3, is significantly smaller than competing devices. It also has built a strong lead in the U.S. market because its nearest competitor, the G7 from Dexcom, still hasn't received clearance from the FDA.
Abbott Laboratories has made consistent dividend payments since 1924, and it's been 50 years since it went more than a year without raising its payout at least once. Given the company's strong commitment to its shareholders and its capacity for raising its payouts, holding on to this stock for the long run could add lots of extra cash to your brokerage account.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is another well-diversified healthcare company with a legendary dividend program. In April, the company raised its payout for the 60th year in a row.
Its collection of healthcare businesses has allowed J&J to reliably grow its bottom line, but not quickly enough to please everybody. This is why it will spin off its consumer goods segment into a separate company in 2023. The business that remains will be able to focus on the rapidly expanding markets for innovative medical devices and new drugs.
At recent prices, shares of J&J offer a 2.5% yield, and investors can expect the combined dividends after next year's spinoff to provide the same value or at least a little bit more. Over the past year, the company used just 57% of its free cash flow from operations to make dividend payments. This means the company can comfortably raise its payout and invest in its future at the same time.
AbbVie
AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. Since then, it's been able to raise its payout by more than 250% with help from blockbuster drug sales.
AbbVie's lead product, Humira, was the world's top-selling drug in 2020, and second only to Pfizer's COVID-19 vaccine in 2021. In 2023, Humira will begin losing ground to competition from several biosimilar versions the FDA has already approved.
This is a great dividend growth stock to buy now because AbbVie has expertly invested its Humira profits into cash-generating machines that will more than offset those pending sales declines. For example, in 2019, the company launched Rinvoq for arthritis and Skyrizi for psoriasis. These drugs are already on pace to generate a combined $6 billion in sales this year, and AbbVie thinks they'll reach a combined $15 billion by 2025.
Despite more than tripling its annual payout since 2013, AbbVie only needed 43% of its free cash flow from operations to meet its dividend commitments over the past year. As such, the drugmaker has plenty of room to boost its payout in the years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This is a great dividend growth stock to buy now because AbbVie has expertly invested its Humira profits into cash-generating machines that will more than offset those pending sales declines. AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. AbbVie's lead product, Humira, was the world's top-selling drug in 2020, and second only to Pfizer's COVID-19 vaccine in 2021. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. AbbVie's lead product, Humira, was the world's top-selling drug in 2020, and second only to Pfizer's COVID-19 vaccine in 2021. This is a great dividend growth stock to buy now because AbbVie has expertly invested its Humira profits into cash-generating machines that will more than offset those pending sales declines. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. AbbVie's lead product, Humira, was the world's top-selling drug in 2020, and second only to Pfizer's COVID-19 vaccine in 2021. This is a great dividend growth stock to buy now because AbbVie has expertly invested its Humira profits into cash-generating machines that will more than offset those pending sales declines. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company that was spun off from Abbott Laboratories in 2013. AbbVie's lead product, Humira, was the world's top-selling drug in 2020, and second only to Pfizer's COVID-19 vaccine in 2021. This is a great dividend growth stock to buy now because AbbVie has expertly invested its Humira profits into cash-generating machines that will more than offset those pending sales declines. |
23252.0 | 2022-07-19 00:00:00 UTC | IVW, LLY, TMO, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/ivw-lly-tmo-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 iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $86.7 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 466,050,000 to 467,450,000). Among the largest underlying components of IVW, in trading today Eli Lilly (Symbol: LLY) is up about 1.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.85. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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 IVW, in trading today Eli Lilly (Symbol: LLY) is up about 1.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.85. 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 IVW, in trading today Eli Lilly (Symbol: LLY) is up about 1.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.85. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of IVW, in trading today Eli Lilly (Symbol: LLY) is up about 1.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $86.7 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 466,050,000 to 467,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.85. | Among the largest underlying components of IVW, in trading today Eli Lilly (Symbol: LLY) is up about 1.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $86.7 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 466,050,000 to 467,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.85. |
23253.0 | 2022-07-19 00:00:00 UTC | J&J (JNJ) Beats on Q2 Earnings & Sales, Lowers 2022 Guidance | ABBV | https://www.nasdaq.com/articles/jj-jnj-beats-on-q2-earnings-sales-lowers-2022-guidance | nan | nan | Johnson & Johnson’s JNJ second-quarter 2022 earnings came in at $2.59 per share, which beat the Zacks Consensus Estimate of $2.57. Earnings increased 4.4% from the year-ago period.
Adjusted earnings exclude intangible amortization and some other special items. Including these items, J&J reported second-quarter earnings of $1.80 per share, down 23.4% from the year-ago quarter.
Sales of this drug and consumer products giant came in at $24.02 billion, which marginally beat the Zacks Consensus Estimate of $23.91 billion. Sales rose 3% from the year-ago quarter, reflecting an operational increase of 8% and a negative currency impact of 5%.
Organically, excluding the impact of acquisitions and divestitures, sales rose 8.1% on an operational basis compared with a 7.9% increase seen in the previous quarter.
Second-quarter sales in the domestic market rose 2.3% to $12.2 billion. International sales rose 3.8% on a reported basis to $11.8 billion, reflecting an operational increase of 13.9% and a negative currency impact of 10.1%. Excluding the impact of all acquisitions and divestitures, on an adjusted operational basis, international sales rose 14.2% in the quarter.
Segment Details
Pharmaceutical segment sales rose 6.7% year over year to $13.3 billion, reflecting 12.3% operational growth and 5.6% negative currency impact. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales rose 12.4%.
The year-over-year sales increase was led by higher penetration and new indications across key products, such as Darzalex and Stelara. Other core products like Invega Sustenna and relatively newer drugs, Erleada and Tremfya contributed significantly to sales growth. Also, contributing to growth was sales of J&J’s single-dose COVID-19 vaccine. The sales growth was, however, dampened by lower sales of key medicine, Imbruvica and generic/biosimilar competition to drugs like Zytiga and Remicade.
Darzalex sales rose 38.6% year over year to $1.99 billion in the quarter. Stelara sales grew 14.3% to $2.6 billion in the quarter.
Imbruvica sales declined 13.1% to $970 million. Rising competitive pressure in the United States due to new oral competition has been hurting sales of Imbruvica since the past few quarters.
PAH revenues of $843 million declined 3.1% year over year. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 2.9% to $1.05 billion in the quarter. Simponi/Simponi Aria sales declined 3% to $566 million while Prezista sales decreased 7.9% to $464 million.
Xarelto sales rose 7.1% in the quarter to $609 million while sales of Invokana/Invokamet declined 24.9% to $120 million.
Among the newer medicines, Erleada generated sales of $450 million in the quarter, up 49.5% year over year. Tremfya recorded sales of $597 million in the quarter, up 24.4% year over year.
Zytiga sales declined 10.3% to $505 million in the quarter due to generic competition. Sales of Remicade were down 27.2% in the quarter to $647 million.
J&J’s single-dose COVID-19 vaccine generated sales of $544 million in the second quarter compared with $457 million in the first quarter. International sales accounted for most of the COVID-19 vaccine sales. Please note that J&J is selling its vaccine on a not-for-profit basis.
The MedTech segment sales came in at $6.9 billion, down 1.1% from the year-ago period, as an operational increase of 3.4% was offset by a negative currency movement of 4.5%.
Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales rose 3.4%.
The Consumer segment recorded revenues of $3.81 billion in the reported quarter, down 1.3% year over year, reflecting a 2.3% operational increase and a 3.6% negative currency impact.
Excluding the impact of acquisitions and divestitures, adjusted operational sales rose 2.9% worldwide. External supply constraints (due to raw material availability and labor shortages) and inflationary pressure have been hurting sales in J&J’s Consumer segment since the past couple of quarters.
2022 Outlook
J&J lowered its earnings and sales expectations for 2022 mainly due to a greater-than-expected negative impact from currency movements.
J&J expects to generate revenues in the range of $93.3 billion to $94.3 billion, lower than $94.8 billion to $95.8 billion guided previously. This guidance excludes any revenues from J&J’s COVID-19 vaccine. Revenue growth is expected in the range of 2.1% – 3.1%, lower than 3.8% – 4.8% expected previously.
Excluding the COVID-19 vaccine, operational constant-currency sales are expected to increase in the range of 6.5%-7.5%, the same as previous expectations.
The adjusted earnings per share guidance was lowered from a range of $10.15-$10.35 per share to $10.00-$10.10.
The earnings range indicates an increase of 2.1%-3.1%, lower than 3.6%-5.6% expected previously. On an operational, constant-currency basis, adjusted earnings per share are expected to increase 8.7% – 9.7% versus the prior expectation of 8.2%-10.2%.
Our Take
J&J reported better-than-expected second-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit sales continued to do well. However, sales in the MedTech segment were partly hurt by COVID-related restrictions in several countries. Its COVID-19 vaccine sales improved in the second quarter after a lower-than-expected contribution in the first quarter. In April, J&J suspended the previously issued sales guidance for its COVID-19 vaccine due to global surplus supply and demand uncertainty.
However, J&J slightly lowered its sales and profit outlook for the year due to expected currency headwinds amid a strengthening U.S. dollar.
J&J’s shares were up 1% in pre-market trading. This year so far, J&J’s shares have risen 1.8% compared with the industry’s 5.7% growth.
Image Source: Zacks Investment Research
J&J plans to separate its Consumer Health segment into a new publicly-traded company, leaving behind a new J&J with its Pharmaceuticals and MedTech units. The separation is expected to be executed in 2023.
Zacks Rank and Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Johnson & Johnson Price, Consensus and EPS Surprise
Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote
Some better-ranked stocks from the same space include Merck MRK, Bayer BAYRY and AbbVie ABBV. While Bayer sports a Zacks Rank of 1, Merck and AbbVie have a Zacks Rank of 2 (Buy).
Merck’s stock has risen 20.4% this year so far. Earnings estimates for 2022 have gone up from $7.19 per share to $7.31 per share, while that for 2023 have increased from $7.12 per share to $7.15 per share over the past 90 days.
Merck topped earnings estimates in three of the last four quarters. Merck has a four-quarter earnings surprise of 13.42%, on average.
Bayer’s stock has risen 4.7% this year so far. Earnings estimates for 2023 have gone up from $2.13 per share to $2.17 per share over the past 90 days.
Earnings of Bayer beat estimates in each of the last four quarters, the average surprise being 17.71%.
AbbVie stock is up 10.4% this year so far. Earnings estimates for 2023 have gone up from $11.81 per share to $11.86 per share over the past 60 days.
Earnings of AbbVie beat estimates in three of the last four quarters and were in line on one occasion, the average surprise being 1.01%.
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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. | Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote Some better-ranked stocks from the same space include Merck MRK, Bayer BAYRY and AbbVie ABBV. While Bayer sports a Zacks Rank of 1, Merck and AbbVie have a Zacks Rank of 2 (Buy). AbbVie stock is up 10.4% this year so far. | Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote Some better-ranked stocks from the same space include Merck MRK, Bayer BAYRY and AbbVie ABBV. While Bayer sports a Zacks Rank of 1, Merck and AbbVie have a Zacks Rank of 2 (Buy). AbbVie stock is up 10.4% this year so far. | Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote Some better-ranked stocks from the same space include Merck MRK, Bayer BAYRY and AbbVie ABBV. While Bayer sports a Zacks Rank of 1, Merck and AbbVie have a Zacks Rank of 2 (Buy). AbbVie stock is up 10.4% this year so far. | Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote Some better-ranked stocks from the same space include Merck MRK, Bayer BAYRY and AbbVie ABBV. While Bayer sports a Zacks Rank of 1, Merck and AbbVie have a Zacks Rank of 2 (Buy). AbbVie stock is up 10.4% this year so far. |
23254.0 | 2022-07-18 00:00:00 UTC | $192 Price Target Makes AbbVie Stock a Notable Healthcare Pick | ABBV | https://www.nasdaq.com/articles/%24192-price-target-makes-abbvie-stock-a-notable-healthcare-pick | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Illinois-headquartered pharmaceutical firm AbbVie (NYSE:ABBV) never ceases to innovate in the healthcare market. A big-bank analyst just raised his price target on ABBV stock and AbbVie’s diversified product portfolio enhances the company’s value to both patients and shareholders.
Inflation is running hot and equities traders are worried about what the Federal Reserve will do next. Amid such an uncertain environment, investors should stick to high-conviction holdings. Pick out the best and filter out the rest. AbbVie is certainly among the best pharmaceutical companies on the market.
As we’ll discover, AbbVie is making strides in advancing a crucially important spinal-condition treatment in the E.U. At the same time, AbbVie has plenty of other products to bulk up the company’s highly diversified portfolio.
Ticker Company Price
ABBV AbbVie Inc. $150.54
What’s Happening With ABBV Stock?
ABBV stock has been in a holding pattern lately. Buyers attempted to break the stock above $175 in April, but pulled it back. Since then, it has been range-bound. That’s not unusual during the low-volume summertime weeks. Perhaps the buyers will be motivated to make a move on Jul. 29 when AbbVie reports its second-quarter 2022 earnings data.
7 Best Long-Term Dividend Stocks to Buy Right Now
It is fine to wait for that day to pass before making a decision on ABBV stock. However, you don’t have to wait if you have a long-term investment time frame. After all, AbbVie pays a nice 3.67% forward annual dividend yield, so a buy-and-hold position has its benefits.
Furthermore, AbbVie’s trailing 12-month price-to-earnings ratio is quite reasonable at 21.6. In other words, there’s something here to entice both income-focused and value-seeking investors.
Indeed, there could be an upside re-rating on the horizon. Analysts at Morgan Stanley (NYSE:MS) seem to think so, as they’ve assigned an “overweight” rating and a lofty $192 price target on ABBV stock.
Morgan Stanley analyst Terence Flynn acknowledged that AbbVie could face competition now that the company has lost exclusivity in the U.S. with rheumatoid arthritis drug Humira. However, AbbVie is diversifying away from Humira and shouldn’t be entirely reliant on it.
Immunology drugs Skyrizi and Rinvoq will help AbbVie in its efforts to maintain a broad array of products. Additionally, AbbVie’s Allergan business could build an aesthetics franchise, thereby providing even more product-portfolio diversification.
On top of all that, AbbVie’s axial spondyloarthritis treatment, upadacitinib/Rinvoq, was just recommended for approval in the E.U. by the European Medicines Agency’s Committee for Medicinal Products for Human Use. Axial spondyloarthritis is, according to AbbVie, a “chronic inflammatory disease that affects the spine, causing back pain, limited mobility, and structural damage.”
A decision on RINVOQ by the European Commission is expected in the current quarter. So, it shouldn’t be too long before AbbVie’s investors might have a major regulatory win to get excited about.
What You Can Do Now
There is no shortage of reasons to invest in AbbVie now. The company pays a healthy dividend and ABBV stock is trading at a very reasonable valuation.
Moreover, AbbVie is diversifying its product offerings beyond the blockbuster drug Humira. Rinvoq, in particular, looks promising in the E.U. Investors can, therefore, choose to purchase AbbVie shares today or wait until the company’s upcoming earnings report has been released.
AbbVie currently scores an “A” rating on my Portfolio Grader.
On the date of publication, Louis Navellier had a long position in ABBV. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The 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.
The post $192 Price Target Makes AbbVie Stock a Notable Healthcare Pick 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. | A big-bank analyst just raised his price target on ABBV stock and AbbVie’s diversified product portfolio enhances the company’s value to both patients and shareholders. Morgan Stanley analyst Terence Flynn acknowledged that AbbVie could face competition now that the company has lost exclusivity in the U.S. with rheumatoid arthritis drug Humira. Axial spondyloarthritis is, according to AbbVie, a “chronic inflammatory disease that affects the spine, causing back pain, limited mobility, and structural damage.” A decision on RINVOQ by the European Commission is expected in the current quarter. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois-headquartered pharmaceutical firm AbbVie (NYSE:ABBV) never ceases to innovate in the healthcare market. A big-bank analyst just raised his price target on ABBV stock and AbbVie’s diversified product portfolio enhances the company’s value to both patients and shareholders. The post $192 Price Target Makes AbbVie Stock a Notable Healthcare Pick appeared first on InvestorPlace. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois-headquartered pharmaceutical firm AbbVie (NYSE:ABBV) never ceases to innovate in the healthcare market. A big-bank analyst just raised his price target on ABBV stock and AbbVie’s diversified product portfolio enhances the company’s value to both patients and shareholders. Ticker Company Price ABBV AbbVie Inc. $150.54 What’s Happening With ABBV Stock? | Ticker Company Price ABBV AbbVie Inc. $150.54 What’s Happening With ABBV Stock? ABBV stock has been in a holding pattern lately. The company pays a healthy dividend and ABBV stock is trading at a very reasonable valuation. |
23255.0 | 2022-07-18 00:00:00 UTC | AbbVie (ABBV) Seeks EU Nod for Atogepant to Prevent Migraine | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-seeks-eu-nod-for-atogepant-to-prevent-migraine | nan | nan | AbbVie, Inc. ABBV announced that it has submitted a marketing authorization application (“MAA”) to the European Medicines Agency (EMA), seeking approval for its CGRP receptor antagonist, atogepant, for prophylaxis treatment of migraine.
The MAA seeks approval for atogepant in adult patients who have at least four migraine days per month. The application is supported by data from two pivotal phase III studies, ADVANCE and PROGRESS. While the ADVANCE study evaluated atogepant in patients with episodic migraine, the PROGRESS study evaluated the drug in patients with chronic migraine. In both the studies, participants administered atogepant achieved the primary endpoint of statistically significant reduction in mean monthly migraine days compared to placebo, across the 12-week treatment period.
If the MAA is approved, atogepant will be the first daily CGRP receptor antagonist to be approved in Europe for the prophylaxis treatment of migraine in adults. The grant of approval to atogepant will also make AbbVie the only company to offer two treatments for chronic migraine. The other treatment, which is being marketed by ABBV for chronic migraine is Botox, one of its blockbuster medicines approved for therapeutic as well as cosmetic uses.
In the year so far, AbbVie’s stock price has increased 13.5% compared with the industry’s 5.8% rise.
Image Source: Zacks Investment Research
Atogepant is already approved by the FDA for the preventive treatment of episodic migraine since last September. The drug is being marketed under the trade name, Qulipta. Last month, AbbVie filed a supplemental new drug application, seeking approval for Qulipta, as a preventive treatment for chronic migraine.
Prior to the MAA approval by the European Commission (EC), the same shall also be reviewed by the Committee for Medicinal Products for Human Use (“CHMP”), which shall also issue a recommendation on the same.
If approved, atogepant will face stiff competition from Vydura, another CGRP receptor antagonist marketed by Biohaven Pharmaceutical BHVN, in partnership with Pfizer PFE, in Europe for the preventive treatment of migraine as well as a treatment of acute migraine. This approval was received earlier this April. Pfizer has exclusive rights to market the drug outside the United States. The drug is also approved for similar indications in the United States and is marketed under the trade name Nurtec ODT.
In the first quarter of 2022, Biohaven Pharmaceuticals generated $123.6 million in sales from Nurtec, up 182% year over year. Biohaven is also evaluating Nurtec in a phase II study in patients with trigeminal neuralgia, a chronic pain condition.
In May, Biohaven also announced that it has entered into a definitive agreement with Pfizer, wherein the latter will acquire the former for an aggregate equity value of $11.6 billion. Pfizer and Biohaven expect to complete this transaction by early 2023.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Another Stock to Consider
AbbVie currently carries a Zacks Rank #2 (Buy). Merck MRK, carrying a Zacks Rank #2, at present, is another stock worth considering in the same sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Merck’s 2022 earnings have increased from $7.28 to $7.31 in the past 60 days. Shares of MRK have risen 23.9% in the year-to-date period.
Earnings of Merck beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 13.4%. In the last reported quarter, MRK delivered an earnings surprise of 18.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Inc. ABBV announced that it has submitted a marketing authorization application (“MAA”) to the European Medicines Agency (EMA), seeking approval for its CGRP receptor antagonist, atogepant, for prophylaxis treatment of migraine. The grant of approval to atogepant will also make AbbVie the only company to offer two treatments for chronic migraine. The other treatment, which is being marketed by ABBV for chronic migraine is Botox, one of its blockbuster medicines approved for therapeutic as well as cosmetic uses. | AbbVie, Inc. ABBV announced that it has submitted a marketing authorization application (“MAA”) to the European Medicines Agency (EMA), seeking approval for its CGRP receptor antagonist, atogepant, for prophylaxis treatment of migraine. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Another Stock to Consider AbbVie currently carries a Zacks Rank #2 (Buy). The grant of approval to atogepant will also make AbbVie the only company to offer two treatments for chronic migraine. | AbbVie, Inc. ABBV announced that it has submitted a marketing authorization application (“MAA”) to the European Medicines Agency (EMA), seeking approval for its CGRP receptor antagonist, atogepant, for prophylaxis treatment of migraine. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Another Stock to Consider AbbVie currently carries a Zacks Rank #2 (Buy). The grant of approval to atogepant will also make AbbVie the only company to offer two treatments for chronic migraine. | Last month, AbbVie filed a supplemental new drug application, seeking approval for Qulipta, as a preventive treatment for chronic migraine. AbbVie, Inc. ABBV announced that it has submitted a marketing authorization application (“MAA”) to the European Medicines Agency (EMA), seeking approval for its CGRP receptor antagonist, atogepant, for prophylaxis treatment of migraine. The grant of approval to atogepant will also make AbbVie the only company to offer two treatments for chronic migraine. |
23256.0 | 2022-07-18 00:00:00 UTC | AbbVie: EMA's CHMP To Review Marketing Authorization Application For Migraine Drug Atogepant | ABBV | https://www.nasdaq.com/articles/abbvie%3A-emas-chmp-to-review-marketing-authorization-application-for-migraine-drug | nan | nan | (RTTNews) - AbbVie (ABBV) announced it has submitted a marketing authorization application or MAA to the European Medicines Agency for atogepant for the prophylaxis of migraine in adult patients who have at least four migraine days per month.
The Committee for Medicinal Products for Human Use or CHMP will review the atogepant MAA, and will issue an opinion that will be valid for all member states of the European Union, as well as Iceland, Lichtenstein, Northern Ireland and Norway.
The submission is based on two pivotal Phase 3 ADVANCE and PROGRESS studies evaluating the safety, efficacy, and tolerability of atogepant in adult patients with episodic and chronic migraine.
Migraine is a complex neurological disease, and is highly prevalent, affecting more than 1 billion people worldwide.
If approved, atogepant would be the first daily oral calcitonin gene-related peptide or CGRP receptor antagonist for the prophylaxis of migraine for adult patients in Europe. And, AbbVie would become the only company with a portfolio of medicines to offer two treatments for chronic migraine, one oral and one injectable
In both, the Phase 3 PROGRESS and Phase 3 ADVANCE studies, all doses were well tolerated, and the overall safety profiles were consistent with safety findings observed in previous studies for the prophylaxis of episodic migraine and chronic migraine populations. The most common adverse events were constipation and nausea.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced it has submitted a marketing authorization application or MAA to the European Medicines Agency for atogepant for the prophylaxis of migraine in adult patients who have at least four migraine days per month. And, AbbVie would become the only company with a portfolio of medicines to offer two treatments for chronic migraine, one oral and one injectable In both, the Phase 3 PROGRESS and Phase 3 ADVANCE studies, all doses were well tolerated, and the overall safety profiles were consistent with safety findings observed in previous studies for the prophylaxis of episodic migraine and chronic migraine populations. The Committee for Medicinal Products for Human Use or CHMP will review the atogepant MAA, and will issue an opinion that will be valid for all member states of the European Union, as well as Iceland, Lichtenstein, Northern Ireland and Norway. | (RTTNews) - AbbVie (ABBV) announced it has submitted a marketing authorization application or MAA to the European Medicines Agency for atogepant for the prophylaxis of migraine in adult patients who have at least four migraine days per month. And, AbbVie would become the only company with a portfolio of medicines to offer two treatments for chronic migraine, one oral and one injectable In both, the Phase 3 PROGRESS and Phase 3 ADVANCE studies, all doses were well tolerated, and the overall safety profiles were consistent with safety findings observed in previous studies for the prophylaxis of episodic migraine and chronic migraine populations. The submission is based on two pivotal Phase 3 ADVANCE and PROGRESS studies evaluating the safety, efficacy, and tolerability of atogepant in adult patients with episodic and chronic migraine. | (RTTNews) - AbbVie (ABBV) announced it has submitted a marketing authorization application or MAA to the European Medicines Agency for atogepant for the prophylaxis of migraine in adult patients who have at least four migraine days per month. And, AbbVie would become the only company with a portfolio of medicines to offer two treatments for chronic migraine, one oral and one injectable In both, the Phase 3 PROGRESS and Phase 3 ADVANCE studies, all doses were well tolerated, and the overall safety profiles were consistent with safety findings observed in previous studies for the prophylaxis of episodic migraine and chronic migraine populations. The submission is based on two pivotal Phase 3 ADVANCE and PROGRESS studies evaluating the safety, efficacy, and tolerability of atogepant in adult patients with episodic and chronic migraine. | (RTTNews) - AbbVie (ABBV) announced it has submitted a marketing authorization application or MAA to the European Medicines Agency for atogepant for the prophylaxis of migraine in adult patients who have at least four migraine days per month. And, AbbVie would become the only company with a portfolio of medicines to offer two treatments for chronic migraine, one oral and one injectable In both, the Phase 3 PROGRESS and Phase 3 ADVANCE studies, all doses were well tolerated, and the overall safety profiles were consistent with safety findings observed in previous studies for the prophylaxis of episodic migraine and chronic migraine populations. The Committee for Medicinal Products for Human Use or CHMP will review the atogepant MAA, and will issue an opinion that will be valid for all member states of the European Union, as well as Iceland, Lichtenstein, Northern Ireland and Norway. |
23257.0 | 2022-07-17 00:00:00 UTC | Best Stocks for 2022: After Two Quarters, Who Holds The Lead? | ABBV | https://www.nasdaq.com/articles/best-stocks-for-2022%3A-after-two-quarters-who-holds-the-lead | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
At the end of each year, InvestorPlace invites its analysts and writers to take a stab at picking one stock they think will do better than the rest during the next year. Nine analysts chose stocks this year, and our readers chose their favorite in an open poll.
Of course, it’s impossible to talk about how everyone’s choices are stacking up without first addressing the elephant in the room, which is that very few stocks are actually doing well this year. The fact that any of our analysts managed to pick a stock that’s gone up in price this year is commendable.
We’ve passed the halfway point of 2022, and multiple major indexes have slipped into bear market territory, with the S&P 500 now down 20% and the Nasdaq down 28%.
There have been plenty of headwinds for the market, from Russia’s invasion of Ukraine to the Federal Reserve raising interest rates, and it has had cascading effects for everyone, not just those buying stocks. From gas prices to rent prices, it seems nothing is immune — except, perhaps, for the Costco (NASDAQ:COST) hot dog, thank goodness.
The 7 Best Tech Dividend Stocks to Buy Right Now
Let’s take a look at the 10 stocks and how they’re doing so far.
ABBV Abbvie $153.62
ARHS Arhaus $4.95
DRRSF Arianne Phosphate $0.32
BMY Bristol-Myers Squibb $75.65
EPR EPR Properties $49.21
KLIC Kulicke and Soffa $45.43
NVDA Nvidia $157.62
POSAF POSaBit Systems $0.51
ROKU Roku $85.77
SAH Sonic Automotive $36.58
Best Stocks for 2022: AbbVie (ABBV)
AbbVie (NYSE:ABBV), chosen by Bob Ciura, is our second best performer this year with a gain of 11%. It’s an impressive result in a year that has seen many powerhouse companies plummet, but what might be even more impressive is its dividend.
ABBV stock is a Dividend King, which means it has raised its dividend every year for the past 50 years. There aren’t many Dividend Kings out there — 44 right now — and it comes with the tacit assurance that the stock will continue to support investors with a dividend for years to come.
AbbVie has continued to grow its portfolio of drugs both through R&D investments and acquisitions of other companies. It will lose its patent protection for Humira soon, but that’s no reason to doubt its future potential.
Arhaus (ARHS)
Source: Africa Studio / Shutterstock.com
Arhaus (NASDAQ:ARHS), chosen by Luke Lango, is the worst performing stock of the bunch so far, having lost 65% of its price. As Luke explains, it all comes down to the big problems facing the economy as a whole. “Rising mortgage rates have caused the housing market to come to a screeching halt,” he explains, which means people aren’t exactly in the mood to buy new furniture.
However, Luke Lango still stands behind ARHS stock as a valuable investment, and says that we should expect a rebound. The company is expected to grow earnings by 23% next quarter and 25% over the next two years. And he expects that a drop in mortgage rates this year will help stabilize the housing market.
The 7 Best Stocks to Buy on a Dip in July
He offers an impressive prediction for the next two years: “Over the next two years, shares of Arhaus could rise by 4 times.” The company is expected to earn a dollar per share in 2024, which means a $20 price for the stock is very feasible.
Best Stocks for 2022: Arianne Phosphate (DRRSF)
Source: Shutterstock
Arianne Phosphate (OTCMKTS:DRRSF), chosen by Joanna Makris, is a phosphate company that is “well-positioned to make a comeback in the second half of the year.” With a loss of 9% so far this year, it’s certainly not the worst investment you could have made this year, and there’s reason to believe it could do great moving forward.
As Joanna Makris explains, “last month, Arianne announced positive independent test results, which confirm its high-purity phosphate concentrate can be used in the production of technical grade phosphoric acid used in the production of batteries.”
The company recently appointed Michael Gentile as an advisor, “a prominent strategic investor in the small- and medium-capitalization mining sector.” He bought 4 million shares of the company’s stock, which is the sort of move that indicates he really believes in the company’s future. There’s plenty of reasons an insider might sell stock, but buying it usually means just one thing: They think it’s headed higher.
Bristol-Myers Squibb (BMY)
Source: Piotr Swat / Shutterstock.com
Bristol-Myers Squibb (NYSE:BMY), chosen by Sure Dividend’s Ben Reynolds, is the best performer so far at a stunning 19% gain so far this year. And that’s on top of having a solid dividend.
Some investors are worried about BMY’s future; after all, the company’s patent for Revlimid is ending soon. But that misses the bigger picture; BMY stock is about more than just one medicine, and it expects to continue growing at a steady, consistent rate for the next several years.
7 Safe Dividends Stocks to Buy in July
We’ll be watching BMY stock closely throughout the rest of the year to see whether it can keep its place at the top of the pack.
Best Stocks for 2022: EPR Properties (EPR)
Source: Shutterstock
EPR Properties (NYSE:EPR), chosen by Charles Sizemore, has managed to stay basically level so far this year. We noted its price at the very beginning of the year as $47.49, and right now it’s at $47.56. That’s not bad in a year that has seen plenty of stocks falter.
EPR Properties is an entertainment real estate investment trust (REIT), which means that it owns properties occupied by everything from movie theaters to ski resorts. Needless to say, we spent a whole lot less time at those venues for most of 2020 and 2021, and many people are eager to make up for lost time and enjoy the things they missed doing at the height of the pandemic.
REITs are a good, safe investment for anyone looking for a strong dividend, and EPR offers its dividend on a monthly basis. That means it can be a source of consistent, reliable income, and at a yield of 7% annually, it’s hard to beat.
Kulicke and Soffa (KLIC)
Source: Shutterstock
Kulicke and Soffa (NASDAQ:KLIC), chosen by Louis Navellier, has seen a decline of 28% so far this year. A supplier for semiconductor manufacturing parts, the company has been adversely affected by all the economic realities that have hurt the broader tech field.
However, Louis Navellier isn’t counting KLIC stock out yet. Despite its decline in price, Kulicke and Soffa did extraordinarily well on both the top and bottom lines in their Q1 2022 results: “Kulicke and Soffa generated $384.28 million in revenues during 2022’s first quarter, exceeding the analysts’ consensus estimate by 1.13% … This result beat not only Wall Street’s estimate of $1.47 per share, but also the year-earlier quarter’s earnings result of $1.26 per share.”
The 7 Best Stocks to Buy on a Dip in July
Navellier argues that KLIC stock is a great opportunity to buy a solid stock at a great price. Kulicke and Soffa isn’t exactly a household name, but they’re worth your attention.
Best Stocks for 2022: Nvidia (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA), chosen by our readers, was one of the best performing stocks in 2020 and 2021. 2022 hasn’t been great for NVDA stock, though, and it’s down 48%. InvestorPlace Web Editor Nick Clarkson explains the things that have gone wrong.
First of all, the supply chain issues affecting just about everyone have hit Nvidia hard. People are clamoring for its graphics cards, but all the demand in the world means nothing without supply to meet it, and Nvidia just hasn’t been able to produce new chips fast enough. On top of that, recent offerings including the GTX 1630 graphics card have been poorly received by consumers, and an attempted acquisition of Arm fell through, sending it down 14% in a month.
Despite that, though, Nick Clarkson points toward things that could help the company recover its losses in the second half of the year. In particular, it reported an astounding 46% year-over-year gain in revenue in its most recent earnings report. It’s also developing technology that will be critical for metaverse applications, which many believe is the next big thing in tech.
POSaBit Systems (POSAF)
Source: Jetacom Autofocus / Shutterstock.com
POSaBit Systems (OTCMKTS:POSAF), chosen by Tom Yeung, is an interesting play on the increasing mainstream prominence of cannabis. You see, most financial institutions can’t touch the stuff; the federal government places restrictions on non-cash transactions involving marijuana. But POSAF stock, which is down 63% this year, sidesteps most of those problems.
With a 52-week high of $2.12, it’s certainly seen better days, but don’t count it out yet. It has continued to do what it does well, and it’s really in a league of its own. Companies like Visa (NYSE:V) and PayPal (NASDAQ:PYPL) simply can’t compete. However, the fact is, consumers are spending less on marijuana products than they have in the past.
6 Cathie Wood Stocks to Buy on the Dip
But Tom Yeung is still optimistic about the company and says it could be the top penny stock of 2022. A lot of penny stocks end up going to zero, sure, but the ones that succeed have the potential to be truly explosive.
Best Stocks for 2022: Roku (ROKU)
Source: Shutterstock
Roku (NASDAQ:ROKU), chosen by Bret Kenwell, is the second-worst performing stock out of the bunch, down 64% since the beginning of the year. But Bret Kenwell points out a few bits of good news that might help Roku out.
Analysts expect Roku’s revenue to grow 34% this year and 30% in 2023. Meanwhile, it has continued to see strong performance in its average revenue per user growth, and total streaming hours, platform revenue, and active accounts have all seen improvement.
Bret Kenwell points to an 85% peak-to-trough decline for the stock and asks an important question: “At one point is the market discounting all of the company’s hurdles and potential hurdles in the future?” Eventually, a turnaround for Roku is plausible, and he points toward $77 as the place to watch (while acknowledging that it could drop even further).
Sonic Automotive (SAH)
Source: OlegRi / Shutterstock.com
Sonic Automotive (NYSE:SAH), chosen by Josh Enomoto, is down 29% this year so far. Sonic is in the used cars business. Everything from the chip shortage to gas prices has affected sales of used cars, but Josh believes another catalyst will move SAH stock higher: the return to the office:
“While the Covid-19 crisis threw certain paradigms for a loop, the fact of the matter is that per Statista’s Global Consumer Survey, 76% of American commuters use their own car to move between home and work. At some point, businesses like Sonic Automotive may return to full relevancy.
“With Elon Musk recently making noise about wanting his workers back in the office, the clock may be ticking on work-from-home privileges.”
It’s definitely an interesting argument, and it’s not the only good news for SAH stock. Josh Enomoto points to the company’s impressive financial metrics, which are far better than the sector as a whole.
Avril Ayers is a web editor for InvestorPlace.com. On the date of publication, they did not hold any position (either directly or indirectly) in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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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 $153.62 ARHS Arhaus $4.95 DRRSF Arianne Phosphate $0.32 BMY Bristol-Myers Squibb $75.65 EPR EPR Properties $49.21 KLIC Kulicke and Soffa $45.43 NVDA Nvidia $157.62 POSAF POSaBit Systems $0.51 ROKU Roku $85.77 SAH Sonic Automotive $36.58 Best Stocks for 2022: AbbVie (ABBV) AbbVie (NYSE:ABBV), chosen by Bob Ciura, is our second best performer this year with a gain of 11%. ABBV stock is a Dividend King, which means it has raised its dividend every year for the past 50 years. AbbVie has continued to grow its portfolio of drugs both through R&D investments and acquisitions of other companies. | ABBV Abbvie $153.62 ARHS Arhaus $4.95 DRRSF Arianne Phosphate $0.32 BMY Bristol-Myers Squibb $75.65 EPR EPR Properties $49.21 KLIC Kulicke and Soffa $45.43 NVDA Nvidia $157.62 POSAF POSaBit Systems $0.51 ROKU Roku $85.77 SAH Sonic Automotive $36.58 Best Stocks for 2022: AbbVie (ABBV) AbbVie (NYSE:ABBV), chosen by Bob Ciura, is our second best performer this year with a gain of 11%. ABBV stock is a Dividend King, which means it has raised its dividend every year for the past 50 years. AbbVie has continued to grow its portfolio of drugs both through R&D investments and acquisitions of other companies. | ABBV Abbvie $153.62 ARHS Arhaus $4.95 DRRSF Arianne Phosphate $0.32 BMY Bristol-Myers Squibb $75.65 EPR EPR Properties $49.21 KLIC Kulicke and Soffa $45.43 NVDA Nvidia $157.62 POSAF POSaBit Systems $0.51 ROKU Roku $85.77 SAH Sonic Automotive $36.58 Best Stocks for 2022: AbbVie (ABBV) AbbVie (NYSE:ABBV), chosen by Bob Ciura, is our second best performer this year with a gain of 11%. ABBV stock is a Dividend King, which means it has raised its dividend every year for the past 50 years. AbbVie has continued to grow its portfolio of drugs both through R&D investments and acquisitions of other companies. | ABBV Abbvie $153.62 ARHS Arhaus $4.95 DRRSF Arianne Phosphate $0.32 BMY Bristol-Myers Squibb $75.65 EPR EPR Properties $49.21 KLIC Kulicke and Soffa $45.43 NVDA Nvidia $157.62 POSAF POSaBit Systems $0.51 ROKU Roku $85.77 SAH Sonic Automotive $36.58 Best Stocks for 2022: AbbVie (ABBV) AbbVie (NYSE:ABBV), chosen by Bob Ciura, is our second best performer this year with a gain of 11%. ABBV stock is a Dividend King, which means it has raised its dividend every year for the past 50 years. AbbVie has continued to grow its portfolio of drugs both through R&D investments and acquisitions of other companies. |
23258.0 | 2022-07-17 00:00:00 UTC | Is InMode a Good Stock to Buy Now? | ABBV | https://www.nasdaq.com/articles/is-inmode-a-good-stock-to-buy-now | nan | nan | In 2021, it seemed as if medical technology stocks could do no wrong. Shares of cosmetic sculpting device manufacturer InMode (NASDAQ: INMD) more than doubled as enthusiasm for all things new and medically related reached a fever pitch.
Shares of InMode have tanked 72% since they hit an all-time high last November. High inflation, rising interest rates, and fear of a recession are putting markets under enormous pressure, and it looks as if this stock has been taken down a few pegs too far.
Reasons to buy InMode now
InMode markets minimally invasive cosmetic sculpting devices that employ a proprietary radio-frequency (RF) technology. Cosmetic skin treatment providers the world over are beating a path to InMode's doors, and this may be a larger market than most investors realize.
Botox from AbbVie (NYSE: ABBV) isn't the same as treatment with one of InMode's devices, but it's a good indicator for the overall minimally invasive cosmetic alteration space. Cosmetic Botox sales finished the first quarter on an annualized run rate of $2.6 billion.
Recently, InMode shared preliminary figures from the second quarter that show strong uptake despite a great deal of economic uncertainty. The company expects second-quarter sales to come in at around $113 million which is 30% more than the company reported in 2021 and a whopping 268% gain over the same period in 2020.
InMode sales aren't soaring because the company's giving its equipment away. This well-run company produces a strong profit. This year, adjusted income from operations is expected to come in at around $201 million, or around 48% of this year's total revenue estimate.
You might expect a strongly profitable business that will most likely double in size over the next few years to trade at a premium valuation, but it isn't. You can scoop up shares of InMode now for just 13.9 times earnings. For comparison, the average stock in the benchmark S&P 500 index trades at 20.6 times earnings.
Reasons to remain cautious
While InMode is technically a healthcare stock, sales of cosmetic sculpting devices probably aren't as resilient as sales of medical devices that Medicare, Medicaid, and private insurers regularly purchase for people whose lives depend on them. Sales of InMode's products have continued their strong upward climb in the first half of 2022, but there are no guarantees that demand will remain strong if macroeconomic conditions worsen.
InMode operates a razor-and-blades business model with skin contouring equipment that uses consumable needles that treatment centers must buy from InMode. This is a tried and true strategy, but revenue from consumables and services accounted for just 16% of total revenue in the first quarter. With capital equipment sales responsible for more than four-fifths of total revenue, InMode's cash flows might not be as predictable as cautious investors want them to be.
A buy now?
According to the Bureau of Labor Statistics, consumer prices rocketed 9.1% in June. One of the best ways to combat soaring inflation is by investing in companies with pricing power.
Options for minimally invasive skin toning and tightening services are extremely limited. With a patent-protected system only InMode can sell, this company has a level of pricing power that most others can only dream of. This advantage plus an attractive valuation make InMode a great stock to buy now and hold for the long run.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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. | Botox from AbbVie (NYSE: ABBV) isn't the same as treatment with one of InMode's devices, but it's a good indicator for the overall minimally invasive cosmetic alteration space. Shares of cosmetic sculpting device manufacturer InMode (NASDAQ: INMD) more than doubled as enthusiasm for all things new and medically related reached a fever pitch. High inflation, rising interest rates, and fear of a recession are putting markets under enormous pressure, and it looks as if this stock has been taken down a few pegs too far. | Botox from AbbVie (NYSE: ABBV) isn't the same as treatment with one of InMode's devices, but it's a good indicator for the overall minimally invasive cosmetic alteration space. Shares of cosmetic sculpting device manufacturer InMode (NASDAQ: INMD) more than doubled as enthusiasm for all things new and medically related reached a fever pitch. Reasons to buy InMode now InMode markets minimally invasive cosmetic sculpting devices that employ a proprietary radio-frequency (RF) technology. | Botox from AbbVie (NYSE: ABBV) isn't the same as treatment with one of InMode's devices, but it's a good indicator for the overall minimally invasive cosmetic alteration space. Reasons to buy InMode now InMode markets minimally invasive cosmetic sculpting devices that employ a proprietary radio-frequency (RF) technology. Reasons to remain cautious While InMode is technically a healthcare stock, sales of cosmetic sculpting devices probably aren't as resilient as sales of medical devices that Medicare, Medicaid, and private insurers regularly purchase for people whose lives depend on them. | Botox from AbbVie (NYSE: ABBV) isn't the same as treatment with one of InMode's devices, but it's a good indicator for the overall minimally invasive cosmetic alteration space. Reasons to buy InMode now InMode markets minimally invasive cosmetic sculpting devices that employ a proprietary radio-frequency (RF) technology. That's right -- they think these 10 stocks are even better buys. |
23259.0 | 2022-07-17 00:00:00 UTC | 3 Dividend Growth Stocks to Buy in July | ABBV | https://www.nasdaq.com/articles/3-dividend-growth-stocks-to-buy-in-july | nan | nan | What's better than stocks with a strong dividend? That's an easy question. The answer: Stocks with a strong dividend and share price that have excellent prospects to grow.
We asked three Motley Fool contributors to identify dividend growth stocks that are great picks to buy in July. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ).
A Dividend King to buy on the dip
David Jagielski (Abbott Laboratories): If you're looking for a dividend growth stock to buy and hold, you shouldn't overlook a company's track record. This is where Abbott Laboratories shines. The company has been paying dividends for nearly a century, with its initial payments going back to 1924. And for the past 50 years, it has also been consistently increasing its dividends, making it a Dividend King.
Abbott's dividend yield of 1.8% is a little higher than the S&P 500 average. But investors could easily be collecting more on their initial investment by just buying and holding the stock. In five years, Abbott has increased its dividend payments by 77%, averaging a compounded annual growth rate of 12%.
Its most recent rate hike was a 4.4% bump. If the company were to continue to grow its dividend at that rate, it would take approximately 16 years for the stock's payouts to double. Abbott has plenty of room to continue growing its dividend. In each of the past four years, its free cash flow has been $4.5 billion or higher -- its annual dividend payments currently cost Abbott $3.2 billion.
The company generates revenue from four segments: Diagnostics, medical devices, pharmaceuticals, and nutrition. All of those business units delivered growth of at least 8% last year. This diversification makes Abbott a resilient business to invest in.
Abbott's shares are down more than 22% this year, performing only slightly worse than the S&P 500. But historically, Abbott has been a low-volatility investment that provides investors with stability. The healthcare stock recently hit a new 52-week low and could be a solid buy on the dip.
Keeping it in the family
Keith Speights (AbbVie): I agree with David's optimism about Abbott. My pick sort of keeps it in the family. AbbVie was part of Abbott until 2013. Thanks to this history, it also ranks as a Dividend King.
AbbVie and Abbott have been neck-and-neck in boosting their dividends since the spin-off. However, AbbVie holds a small advantage with a cumulative 252% dividend increase during the period. But its dividend yield of more than 3.7% is a lot juicier than Abbott's yield.
In addition, AbbVie has easily beaten its parent company based on stock performance. Over the past five years, its shares have soared 120%. AbbVie hasn't slowed down this year. It was one of the top three best Dividend Aristocrats (S&P 500 members with at least 25 consecutive years of dividend increases) in the first half of 2022.
I think that AbbVie will be able to continue increasing its dividend for a long time to come. And I also expect that the pharma stock will be able to deliver market-beating gains over the long run.
Granted, AbbVie faces the loss of U.S. exclusivity for Humira next year. That's especially problematic because Humira is the company's top-selling drug right now. However, AbbVie has long planned for this scenario. It already has two successors to Humira on the market that could together surpass Humira's peak annual sales level within a few years.
Importantly, the anticipated sales decline for Humira is already largely baked into AbbVie's share price. The stock trades at less than 11 times expected earnings despite its big gains this year. AbbVie still looks like a dividend growth stock that can make investors richer over the next decade and beyond.
There's no ceiling in sight for this dividend
Prosper Junior Bakiny (Johnson & Johnson): Dividends are great. Who doesn't enjoy getting some passive income? However, some dividend stocks are better than others. Consider pharma giant Johnson & Johnson. Although some companies decreased or suspended their payouts in 2020 following the pandemic-caused recession, J&J did not. The healthcare giant has raised its payouts by nearly 35% over the past five years.
Zooming out helps give even more perspective. Johnson & Johnson is a member of the (very) exclusive group of Dividend Kings. It has increased its payouts for 60 consecutive years. Johnson & Johnson's business is rock solid. Multiple blockbuster products, a solid pipeline, a strong balance sheet, and several potential long-term tailwinds are some reasons why the drugmaker could be an excellent long-term play.
One area in which Johnson & Johnson is well-positioned to rise in prominence is the robotic-assisted surgery (RAS) market, thanks to its device, Ottava. The RAS space is heating up. Robotic surgeries still make up only a tiny percentage of total procedures worldwide. However, they help perform minimally invasive surgeries that offer important benefits compared to traditional open surgeries, including faster recovery time for patients.
The world's aging population will also be a driver for Johnson & Johnson's business. People need more medical care, including innovative life-saving therapies and surgeries, as they age. While Johnson & Johnson will spin off its consumer health unit next year, its two remaining segments -- which generate stronger sales growth -- are capable of helping it deliver robust financial results regularly.
With a solid business backing it, Johnson & Johnson's dividend is safe and should continue growing. The company's cash payout ratio of 56.55% is reasonable. Its dividend yield of 2.53% is above-average. The stock should be poised for faster growth after the 2023 spin-off of J&J's consumer health unit. Income-seeking investors can't go wrong with this drugmaker, in my view.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Keeping it in the family Keith Speights (AbbVie): I agree with David's optimism about Abbott. AbbVie was part of Abbott until 2013. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Keeping it in the family Keith Speights (AbbVie): I agree with David's optimism about Abbott. AbbVie was part of Abbott until 2013. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Keeping it in the family Keith Speights (AbbVie): I agree with David's optimism about Abbott. AbbVie was part of Abbott until 2013. | I think that AbbVie will be able to continue increasing its dividend for a long time to come. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Keeping it in the family Keith Speights (AbbVie): I agree with David's optimism about Abbott. |
23260.0 | 2022-07-16 00:00:00 UTC | Want to Get Richer? 5 Best Stocks to Buy Now and Hold Forever | ABBV | https://www.nasdaq.com/articles/want-to-get-richer-5-best-stocks-to-buy-now-and-hold-forever-0 | nan | nan | Healthcare is a massive industry; worldwide healthcare spending exceeded $8 trillion yearly in 2020 and 2021. Such an essential and lucrative field is fertile ground for great stocks.
You don't need to swing for a home run; hitting consistent base hits can get the job done. In other words, building wealth can be as easy as buying these five quality healthcare stocks and holding them long-term.
1. The dividend king of healthcare stocks
Johnson & Johnson (NYSE: JNJ) is arguably the top blue chip stock in the healthcare industry. The company's a massive conglomerate that makes consumer products, pharmaceutical drugs, and medical devices, generating more than $94 billion in annual sales worldwide.
JNJ Revenue (TTM) data by YCharts.
Johnson & Johnson's top and bottom lines have steadily grown larger for decades. The company's a Dividend King, famous for a resilient dividend that it's paid and raised for 60 consecutive years. It's one of two companies with an AAA credit rating from S&P, a distinction the U.S. government cannot even claim. The company will soon spin off its consumer products business, a potential shareholder bonus.
2. An insurance giant
UnitedHealth Group (NYSE: UNH) is one of the world's largest healthcare companies. It's a two-headed business consisting of UnitedHealthcare, which offers health insurance, and Optum, a healthcare solutions segment that provides pharmacy, services, and care access to patients. The company generated a trailing-12-months revenue of a whopping $295 billion.
UNH Revenue (TTM) data by YCharts.
The company's grown its revenue by an annual average of 11% and earnings-per-share by 14% over the past decade. Healthcare spending typically increases over time, and UnitedHealth should keep benefiting. The company's also becoming a solid dividend stock with 13 consecutive raises and enough share repurchases to lower the share count by 9% over the past 10 years.
3. A pharmaceutical leader
AbbVie (NYSE: ABBV) was spun off from the fourth stock on this list in 2013 and has become one of the world's largest pharmaceutical companies. It sells a variety of drugs and owns the Botox brand, but it's most famous for Humira, the world's second best-selling drug. The company generated sales totaling more than $56 billion over the past 12 months.
ABBV Revenue (TTM) data by YCharts.
Pharmaceutical companies protect their products with patents, but they eventually expire, and competitors flood the market with cheaper generic versions. Humira's protection expires next year, but AbbVie's made acquisitions and developed its pipeline to drive long-term growth. It's also an outstanding dividend stock that offers a 3.5% dividend yield.
4. The reliable conglomerate
Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and diagnostic tools, and markets generic drugs outside the United States. After spinning off AbbVie in 2013, Abbott's built a business around cardiovascular conditions and diabetes. In all, Abbott reported $44 billion in sales over the last 12 months.
ABT Revenue (TTM) data by YCharts.
Abbott's business has thrived after restructuring; revenue has grown by an average of 15% annually over the past five years, while EPS has increased by 37% per year. Abbott's annual free cash flow has grown to $8 billion, which helped fund a 1.7% dividend and share repurchases that total $4 billion over the past year.
5. The COVID-19 vaccine company
Pfizer (NYSE: PFE) is up there with AbbVie as one of the world's pharmaceutical giants. Pfizer's one of the industry's oldest players, evolving over the years through acquisitions and mergers. You can see below how the business has surged to more than $92 billion in revenue for the last four quarters, largely thanks to its development of a COVID-19 vaccine. The vaccine accounted for 65% of revenue in the company's 2022 first quarter.
PFE Revenue (TTM) data by YCharts.
Pfizer's surge in growth probably won't last forever; demand could eventually fall for the COVID-19 vaccine if the virus goes away. However, you can see that the surge in growth has created billions in additional free cash flow for the company. Investors could see management turn that extra cash into shareholder value over the coming years through pipeline development, future acquisitions, or more share repurchases and dividends. Shareholders already get a dividend yielding 3%, making Pfizer a solid stock for passive income.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A pharmaceutical leader AbbVie (NYSE: ABBV) was spun off from the fourth stock on this list in 2013 and has become one of the world's largest pharmaceutical companies. ABBV Revenue (TTM) data by YCharts. Humira's protection expires next year, but AbbVie's made acquisitions and developed its pipeline to drive long-term growth. | A pharmaceutical leader AbbVie (NYSE: ABBV) was spun off from the fourth stock on this list in 2013 and has become one of the world's largest pharmaceutical companies. ABBV Revenue (TTM) data by YCharts. Humira's protection expires next year, but AbbVie's made acquisitions and developed its pipeline to drive long-term growth. | A pharmaceutical leader AbbVie (NYSE: ABBV) was spun off from the fourth stock on this list in 2013 and has become one of the world's largest pharmaceutical companies. ABBV Revenue (TTM) data by YCharts. Humira's protection expires next year, but AbbVie's made acquisitions and developed its pipeline to drive long-term growth. | A pharmaceutical leader AbbVie (NYSE: ABBV) was spun off from the fourth stock on this list in 2013 and has become one of the world's largest pharmaceutical companies. ABBV Revenue (TTM) data by YCharts. Humira's protection expires next year, but AbbVie's made acquisitions and developed its pipeline to drive long-term growth. |
23261.0 | 2022-07-15 00:00:00 UTC | This Stock Is Down By 13% This Year: Here's Why It's a Buy | ABBV | https://www.nasdaq.com/articles/this-stock-is-down-by-13-this-year%3A-heres-why-its-a-buy | nan | nan | It's been a mixed year for pharma giant Pfizer (NYSE: PFE). While the company's coronavirus-related portfolio continues to hit it out of the park, its shares have dropped by 13% since the beginning of the year. True, that's better than the performance of the S&P 500, but Pfizer is severely lagging similarly sized pharma giants, including AbbVie, Eli Lilly, and Johnson & Johnson, among others. The good news is that there are excellent reasons to get in on this top drugmaker at current levels. Here's why Pfizer looks like a buy right now.
PFE data by YCharts.
Planning for the future
Pfizer's detractors may point to the fact that its non-coronavirus lineup isn't performing well. In the first quarter, the company's revenue jumped by an impressive 82% year over year to $25.7 billion. That's more than half the company's 2020 revenue of $41.9 billion. However, excluding its coronavirus products, revenue increased by a meager 2% year over year in the first period.
Since it is difficult to predict how demand for COVID-19 vaccines and therapies will shape up after this year, the rest of Pfizer's lineup may need to pick things up starting next year to keep its top line moving in the right direction, and that is by no means guaranteed. This reasoning may partly explain Pfizer's relatively weak performance on the stock market year to date. Still, it is unlikely that Pfizer's coronavirus-related revenue will suddenly drop to zero.
COVID-19 is probably here to stay. According to some predictions, we could see a new wave of cases in the fall and winter.
The disease could become endemic, too, requiring people, especially those who are the most at risk, to get shots regularly, just as so many people do when it comes to the flu. Comirnaty and Paxlovid -- Pfizer's vaccine and therapy against the disease, respectively -- will continue to contribute to the company's top line. Even a fraction of their current sales would allow Pfizer to continue growing its revenue at a good clip compared to its pre-pandemic years.
True, sales might drop compared to 2021 and 2022 -- two highly abnormal years due to the state of emergency in which we found ourselves. But in the long run, Pfizer's top line would eventually settle on an upward trajectory, especially as it earns additional indications for its existing products and launches new ones on the market.
Thanks to its success in the coronavirus area, Pfizer's cash balance increased substantially, allowing it much more flexibility to prepare for the future. The company's free cash flow increased by 190% in the past three years to $31.8 billion. Pfizer is planning to be active in acquisitions, and it has already started making key moves in this department. Pfizer currently has 90 ongoing clinical trials divided more or less equally across all three stages.
A modest 25% success rate with its current phase 3 programs would yield seven approvals within the next two years (or so). Pfizer's pipeline will expand as it makes more acquisitions, which will only enhance its overall prospects.
More reasons to buy
After dropping along with much of the broader market this year, Pfizer's shares look attractive. The company's current forward price-to-earnings (P/E) ratio stands at just 7.7, while its price-to-earnings-growth (PEG) is at 0.087. The pharmaceutical industry's forward P/E is 13.7, while a PEG under 1 is considered good. In addition, Pfizer is an excellent stock for income-oriented investors.
The company offers a dividend yield of 3% -- much higher than the S&P 500's yield of 1.7%. With a low cash payout ratio of 27.7%, Pfizer isn't done rewarding shareholders with dividend increases, something it is accustomed to doing. The drugmaker has raised its payouts by 25% in the past five years.
Pfizer has a lot to offer between its low valuation and solid pipeline, a vast lineup that can perform well despite some investors' fears, and a juicy dividend. It's worth it to look beyond the current state of the market and hold onto this pharma stock for a while.
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Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Eli Lilly and Company. 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. | True, that's better than the performance of the S&P 500, but Pfizer is severely lagging similarly sized pharma giants, including AbbVie, Eli Lilly, and Johnson & Johnson, among others. Even a fraction of their current sales would allow Pfizer to continue growing its revenue at a good clip compared to its pre-pandemic years. But in the long run, Pfizer's top line would eventually settle on an upward trajectory, especially as it earns additional indications for its existing products and launches new ones on the market. | True, that's better than the performance of the S&P 500, but Pfizer is severely lagging similarly sized pharma giants, including AbbVie, Eli Lilly, and Johnson & Johnson, among others. With a low cash payout ratio of 27.7%, Pfizer isn't done rewarding shareholders with dividend increases, something it is accustomed to doing. The Motley Fool has positions in and recommends Eli Lilly and Company. | True, that's better than the performance of the S&P 500, but Pfizer is severely lagging similarly sized pharma giants, including AbbVie, Eli Lilly, and Johnson & Johnson, among others. Since it is difficult to predict how demand for COVID-19 vaccines and therapies will shape up after this year, the rest of Pfizer's lineup may need to pick things up starting next year to keep its top line moving in the right direction, and that is by no means guaranteed. This reasoning may partly explain Pfizer's relatively weak performance on the stock market year to date. | True, that's better than the performance of the S&P 500, but Pfizer is severely lagging similarly sized pharma giants, including AbbVie, Eli Lilly, and Johnson & Johnson, among others. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! |
23262.0 | 2022-07-15 00:00:00 UTC | Zacks Investment Ideas feature highlights: Dollar Tree, AbbVie and Sysco | ABBV | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-dollar-tree-abbvie-and-sysco | nan | nan | For Immediate Release
Chicago, IL – July 15, 2022 – Today, Zacks Investment Ideas feature highlights Dollar Tree, Inc. DLTR, AbbVie ABBV and Sysco Corp. SYY.
3 Recession-Proof Stocks Up 10% in 2022 to Buy Right Now
Inflation showed no signs of cooling in June, with prices up 9.1% from a year ago to top estimates. Costs were up nearly across the board and are essentially washing away Americans' wage gains. U.S. consumers are already feeling historically beaten down as they watch gas prices and grocery bills surge, and their sentiment is unlikely to improve until prices drop.
The Fed is focused almost exclusively on the stable price side of its dual mandate. The hotter-than-projected CPI print, coupled with the strong June jobs report increases the likelihood that the Fed will raise rates by at least another 75 basis points at its next FOMC meeting on July 26 and 27—its last meeting until September 20-21.
Jay Powell and Co. admittedly stuck to their transitory stance for too long and now they are completely committed to doing all they can to bring prices down and prevent 40-year high inflation from becoming entrenched in the U.S. economy.
Even if the U.S. is headed for a recession, or already in one (depending on who you ask), it doesn't mean we are in for an abrupt, lockdown-style demand evaporation. Life goes on and spending continues, just not to the same extent as it did during the post-covid boom.
Recessions and economic ebbs and flows are part of life, and they impact some industries and sectors more.
Today, we dive into three stocks that are poised to beat inflation and rise above any possible recession. All three names appear worth buying for the second half of 2022 and might be up for consideration as buy-and-hold stocks.
Dollar Tree, Inc.
Dollar Tree operates over 15,500 stores across much of the U.S. and Canada. The discount retailer late last year raised its prices for the first time in history from $1 to $1.25, and it completed its new pricing rollout a few months ahead of schedule. The higher prices allow Dollar Tree to sell a wider range of merchandise, while maintaining some of the lowest prices in retail, fighting back against inflation, and improving margins.
Dollar Tree owns Family Dollar (purchased in 2015) which offers a wider range of price points, and DLTR's separate "$3 and $5 plus assortment" in Dollar Tree stores have performed well. DLTR operates smaller format stores compared to Target and Walmart and it has expanded aggressively.
Dollar Tree steadily grew its revenue for decades and it's poised to thrive as more Americans look to save money. DLTR upped its guidance last quarter in the face of economic downturn fears, with its positive EPS revisions helping it land a Zacks Rank #1 (Strong Buy). Zacks estimates call for its revenue to climb 6.7% in 2022 and another 6% in FY23 to $29.76 billion to help lift its adjusted earnings by 41% and 16%, respectively.
DLTR has blown away Walmart and Target over the last 15 years and outpaced its rival Dollar General (DG), soaring 1,200% vs. 975% for DG. This included a nearly 70% run in the past 12 months vs. the market's -13% downturn and the broader Zacks Retail Sector's -31% fall.
DLTR sits around 5% below its April records at around $166 per share. Plus, it trades at a 24% discount to its own decade-long median and offers 15% value compared to its industry's current levels at 19X forward earnings.
Dollar Tree is committed to long-term expansion within a segment of the retail sector that's never going out of style during economic booms or busts. The firm's growth initiatives are supported by a solid balance sheet. And its $1.25 price point is set to boost its earnings and revenue growth over the long haul.
AbbVie
Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons.
AbbVie is a pharmaceutical giant that's more diversified than ever and far less exposed to Humira's growth, through its $63 billion purchase of Allergan in 2020. The deal came as Humira biosimilars hurt sales of one of the world's top-selling drugs. AbbVie now owns Botox and other popular drugs, within a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond.
AbbVie's revenue soared 38% in FY20 and 23% in fiscal 2021, driven by the acquisition. ABBV's adjusted earnings also jumped 20% last year. Zacks estimates call for its adjusted FY22 earnings to pop another 10.2% on 6.1% higher sales that would see it pull in roughly $60 billion. Its revenue and EPS are expected to slip on a YoY basis in FY23 as its Allergan-boosted growth normalizes and it faces tough-to-compete against periods.
AbbVie's earnings outlook has held up rather well recently, and its FY23 consensus EPS estimate is up slightly to help it grab a Zacks Rank #2 (Buy). The firm's Large Cap Pharmaceuticals industry sits in the top 33% of 250 Zacks industries and ABBV lands an overall "A" VGM grade. And eight of the 15 brokerage recommendations Zacks has are "Strong Buys," alongside one "Buy," and five "Holds."
AbbVie's dividend yield comes in at 3.7% to crush its highly-ranked industry's 2.5% average, as well as Johnson & Johnson's 2.8% and Merck's 2.9%. ABBV is committed to boosting its dividend payout, with the quarterly rate up 250% since its inception in 2013. Crucially, AbbVie's impressive and industry-topping yield isn't bolstered by a falling stock price.
ABBV has outpaced the market and more than doubled its industry since it began trading in early 2013, up 335%. The stock has climbed 50% in the last two years and 28% in the trailing 12 months vs. Large Cap Pharma's 16%. AbbVie stock is up 11% in 2022, and it's slipped to potentially more attractive price points off its April peaks.
ABBV trades at $150 per share which provides 10% upside to its current Zacks consensus price target. Investors will also love the pharmaceutical stock's valuation. ABBV trades at a roughly 20% discount to its industry, despite its outperformance, at 11.9X forward 12-month earnings. And the stock sits near its historic median and 30% below its own highs.
Sysco Corp.
Sysco is a wholesale food and food products giant with clients across restaurants, healthcare, education, hotels, and nearly the entire away-from-home meal market. SYY's product categories on the food side include meat & poultry, seafood, produce, dairy, bakery & desserts, pantry staples, and beyond. Sysco also sells paper goods, equipment, supplies, and more. And it operates a services unit that ranges from training materials and recipe ideas to cost-based analysis.
Sysco's food-away-from-home market is almost indestructible and as close to recession-proof as possible. The only time its revenue declined at any point in the past 25 years was a tiny 1.8% dip in fiscal 2009 and slightly larger pullbacks during covid when many of its clients abruptly closed their doors for extended periods.
SYY's FY21 (ended on July 3, 2021) sales slipped 3%. But it's bouncing back as people return to their normal lives. Sysco's Q3 FY22 sales climbed 43% YoY and were up 15% from the pre-covid period in 2019. Sysco raised its guidance in the face of inflation, with it able to pass on higher costs and steer clients to less-impacted segments. Sysco's upward earnings revisions help it capture a Zacks Rank #1 (Strong Buy), and eight of the 11 brokerage recommendations Zacks has are "Strong Buys."
Zacks estimates call for Sysco's FY22 revenue to surge 32.5% to $68 billion to blow away its pre-covid total in 2019 of $60 billion. Its revenue is set to jump another 8.4% in FY23 to $74 billion. At the bottom end of the income statement, its adjusted earnings are expected to climb 124% and 34%, respectively.
In terms of performance, Sysco has climbed roughly 200% during the past decade to match the S&P 500 and destroy its highly-ranked industry's 45%. This run includes a 55% jump in the last two years and a 10% climb in 2022 vs. its industry's -3% drop. SYY currently sits 5% below its April highs. On the valuation side, it's trading at its decade-long median at 19.7X forward 12-month earnings and nearly in line with its industry.
Sysco's standing as a Dividend Aristocrat cements its stability through good economic times and bad. The select group of around 65 stocks includes S&P 500 companies that have both paid and raised dividends for at least 25 straight years. SYY's dividend yield comes in at 2.3% right now to blow away its industry's average and the S&P 500's 1.6%.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Dollar Tree, Inc. (DLTR): Free Stock Analysis Report
Sysco Corporation (SYY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | For Immediate Release Chicago, IL – July 15, 2022 – Today, Zacks Investment Ideas feature highlights Dollar Tree, Inc. DLTR, AbbVie ABBV and Sysco Corp. SYY. AbbVie Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. AbbVie is a pharmaceutical giant that's more diversified than ever and far less exposed to Humira's growth, through its $63 billion purchase of Allergan in 2020. | For Immediate Release Chicago, IL – July 15, 2022 – Today, Zacks Investment Ideas feature highlights Dollar Tree, Inc. DLTR, AbbVie ABBV and Sysco Corp. SYY. The firm's Large Cap Pharmaceuticals industry sits in the top 33% of 250 Zacks industries and ABBV lands an overall "A" VGM grade. AbbVie Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. | For Immediate Release Chicago, IL – July 15, 2022 – Today, Zacks Investment Ideas feature highlights Dollar Tree, Inc. DLTR, AbbVie ABBV and Sysco Corp. SYY. AbbVie Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. AbbVie is a pharmaceutical giant that's more diversified than ever and far less exposed to Humira's growth, through its $63 billion purchase of Allergan in 2020. | AbbVie Inc. (ABBV): Free Stock Analysis Report For Immediate Release Chicago, IL – July 15, 2022 – Today, Zacks Investment Ideas feature highlights Dollar Tree, Inc. DLTR, AbbVie ABBV and Sysco Corp. SYY. AbbVie Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. |
23263.0 | 2022-07-14 00:00:00 UTC | 3 Recession-Proof Stocks Up 10% in 2022 to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-recession-proof-stocks-up-10-in-2022-to-buy-right-now | nan | nan | Inflation showed no signs of cooling in June, with prices up 9.1% from a year ago to top estimates. Costs were up nearly across the board and are essentially washing away Americans’ wage gains. U.S. consumers are already feeling historically beaten down as they watch gas prices and grocery bills surge, and their sentiment is unlikely to improve until prices drop.
The Fed is focused almost exclusively on the stable price side of its dual mandate. The hotter-than-projected CPI print, coupled with the strong June jobs report increases the likelihood that the Fed will raise rates by at least another 75 basis points at its next FOMC meeting on July 26 and 27—its last meeting until September 20-21.
Jay Powell and Co. admittedly stuck to their transitory stance for too long and now they are completely committed to doing all they can to bring prices down and prevent 40-year high inflation from becoming entrenched in the U.S. economy.
Even if the U.S. is headed for a recession, or already in one (depending on who you ask), it doesn’t mean we are in for an abrupt, lockdown-style demand evaporation. Life goes on and spending continues, just not to the same extent as it did during the post-covid boom.
Recessions and economic ebbs and flows are part of life, and they impact some industries and sectors more.
Today, we dive into three stocks that are poised to beat inflation and rise above any possible recession. All three names appear worth buying for the second half of 2022 and might be up for consideration as buy-and-hold stocks.
Dollar Tree, Inc. DLTR
Dollar Tree operates over 15,500 stores across much of the U.S. and Canada. The discount retailer late last year raised its prices for the first time in history from $1 to $1.25, and it completed its new pricing rollout a few months ahead of schedule. The higher prices allow Dollar Tree to sell a wider range of merchandise, while maintaining some of the lowest prices in retail, fighting back against inflation, and improving margins.
Dollar Tree owns Family Dollar (purchased in 2015) which offers a wider range of price points, and DLTR’s separate “$3 and $5 plus assortment” in Dollar Tree stores have performed well. DLTR operates smaller format stores compared to Target TGT and Walmart WMT and it has expanded aggressively.
Dollar Tree steadily grew its revenue for decades and it’s poised to thrive as more Americans look to save money. DLTR upped its guidance last quarter in the face of economic downturn fears, with its positive EPS revisions helping it land a Zacks Rank #1 (Strong Buy). Zacks estimates call for its revenue to climb 6.7% in 2022 and another 6% in FY23 to $29.76 billion to help lift its adjusted earnings by 41% and 16%, respectively.
Image Source: Zacks Investment Research
DLTR has blown away Walmart and Target over the last 15 years and outpaced its rival Dollar General DG, soaring 1,200% vs. 975% for DG. This included a nearly 70% run in the past 12 months vs. the market’s -13% downturn and the broader Zacks Retail Sector’s -31% fall.
DLTR sits around 5% below its April records at around $166 per share. Plus, it trades at a 24% discount to its own decade-long median and offers 15% value compared to its industry’s current levels at 19X forward earnings.
Dollar Tree is committed to long-term expansion within a segment of the retail sector that’s never going out of style during economic booms or busts. The firm’s growth initiatives are supported by a solid balance sheet. And its $1.25 price point is set to boost its earnings and revenue growth over the long haul.
AbbVie ABBV
Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons.
AbbVie is a pharmaceutical giant that’s more diversified than ever and far less exposed to Humira’s growth, through its $63 billion purchase of Allergan in 2020. The deal came as Humira biosimilars hurt sales of one of the world’s top-selling drugs. AbbVie now owns Botox and other popular drugs, within a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond.
AbbVie’s revenue soared 38% in FY20 and 23% in fiscal 2021, driven by the acquisition. ABBV’s adjusted earnings also jumped 20% last year. Zacks estimates call for its adjusted FY22 earnings to pop another 10.2% on 6.1% higher sales that would see it pull in roughly $60 billion. Its revenue and EPS are expected to slip on a YoY basis in FY23 as its Allergan-boosted growth normalizes and it faces tough-to-compete against periods.
AbbVie’s earnings outlook has held up rather well recently, and its FY23 consensus EPS estimate is up slightly to help it grab a Zacks Rank #2 (Buy). The firm’s Large Cap Pharmaceuticals industry sits in the top 33% of 250 Zacks industries and ABBV lands an overall “A” VGM grade. And eight of the 15 brokerage recommendations Zacks has are “Strong Buys,” alongside one “Buy,” and five “Holds.”
Image Source: Zacks Investment Research
AbbVie’s dividend yield comes in at 3.7% to crush its highly-ranked industry’s 2.5% average, as well as Johnson & Johnson’s 2.8% and Merck’s 2.9%. ABBV is committed to boosting its dividend payout, with the quarterly rate up 250% since its inception in 2013. Crucially, AbbVie’s impressive and industry-topping yield isn’t bolstered by a falling stock price.
ABBV has outpaced the market and more than doubled its industry since it began trading in early 2013, up 335%. The stock has climbed 50% in the last two years and 28% in the trailing 12 months vs. Large Cap Pharma’s 16%. AbbVie stock is up 11% in 2022, and it’s slipped to potentially more attractive price points off its April peaks.
ABBV trades at $150 per share which provides 10% upside to its current Zacks consensus price target. Investors will also love the pharmaceutical stock’s valuation. ABBV trades at a roughly 20% discount to its industry, despite its outperformance, at 11.9X forward 12-month earnings. And the stock sits near its historic median and 30% below its own highs.
Sysco Corporation SYY
Sysco is a wholesale food and food products giant with clients across restaurants, healthcare, education, hotels, and nearly the entire away-from-home meal market. SYY’s product categories on the food side include meat & poultry, seafood, produce, dairy, bakery & desserts, pantry staples, and beyond. Sysco also sells paper goods, equipment, supplies, and more. And it operates a services unit that ranges from training materials and recipe ideas to cost-based analysis.
Sysco’s food-away-from-home market is almost indestructible and as close to recession-proof as possible. The only time its revenue declined at any point in the past 25 years was a tiny 1.8% dip in fiscal 2009 and slightly larger pullbacks during covid when many of its clients abruptly closed their doors for extended periods.
SYY’s FY21 (ended on July 3, 2021) sales slipped 3%. But it’s bouncing back as people return to their normal lives. Sysco’s Q3 FY22 sales climbed 43% YoY and were up 15% from the pre-covid period in 2019. Sysco raised its guidance in the face of inflation, with it able to pass on higher costs and steer clients to less-impacted segments. Sysco’s upward earnings revisions help it capture a Zacks Rank #1 (Strong Buy), and eight of the 11 brokerage recommendations Zacks has are “Strong Buys.”
Image Source: Zacks Investment Research
Zacks estimates call for Sysco’s FY22 revenue to surge 32.5% to $68 billion to blow away its pre-covid total in 2019 of $60 billion. Its revenue is set to jump another 8.4% in FY23 to $74 billion. At the bottom end of the income statement, its adjusted earnings are expected to climb 124% and 34%, respectively.
In terms of performance, Sysco has climbed roughly 200% during the past decade to match the S&P 500 and destroy its highly-ranked industry’s 45%. This run includes a 55% jump in the last two years and a 10% climb in 2022 vs. its industry’s -3% drop. SYY currently sits 5% below its April highs. On the valuation side, it’s trading at its decade-long median at 19.7X forward 12-month earnings and nearly in line with its industry.
Sysco’s standing as a Dividend Aristocrat cements its stability through good economic times and bad. The select group of around 65 stocks includes S&P 500 companies that have both paid and raised dividends for at least 25 straight years. SYY’s dividend yield comes in at 2.3% right now to blow away its industry’s average and the S&P 500’s 1.6%.
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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Target Corporation (TGT): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Dollar General Corporation (DG): Free Stock Analysis Report
Dollar Tree, Inc. (DLTR): Free Stock Analysis Report
Sysco Corporation (SYY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
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 Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. AbbVie is a pharmaceutical giant that’s more diversified than ever and far less exposed to Humira’s growth, through its $63 billion purchase of Allergan in 2020. AbbVie now owns Botox and other popular drugs, within a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. | AbbVie ABBV Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. AbbVie is a pharmaceutical giant that’s more diversified than ever and far less exposed to Humira’s growth, through its $63 billion purchase of Allergan in 2020. AbbVie now owns Botox and other popular drugs, within a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. | AbbVie ABBV Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. AbbVie is a pharmaceutical giant that’s more diversified than ever and far less exposed to Humira’s growth, through its $63 billion purchase of Allergan in 2020. AbbVie now owns Botox and other popular drugs, within a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. | The firm’s Large Cap Pharmaceuticals industry sits in the top 33% of 250 Zacks industries and ABBV lands an overall “A” VGM grade. AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV Discount retail is a somewhat recession-proof space, as is the wider healthcare field, for obvious reasons. |
23264.0 | 2022-07-14 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-1 | 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 $2.90 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.50%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 23.10% of the portfolio. Consumer Staples and Telecom round out the top three.
Looking at individual holdings, At&t Inc. (T) accounts for about 9.26% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX).
The top 10 holdings account for about 58.89% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has lost about -1.24% so far this year and it's up approximately 9.57% in the last one year (as of 07/14/2022). In the past 52-week period, it has traded between $32.62 and $39.18.
The ETF has a beta of 0.87 and standard deviation of 24.29% 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 $50.56 billion in assets, Vanguard Value ETF has $92.75 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
AT&T Inc. (T): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
The 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, At&t Inc. (T) accounts for about 9.26% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). 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, At&t Inc. (T) accounts for about 9.26% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). 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, At&t Inc. (T) accounts for about 9.26% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). 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, At&t Inc. (T) accounts for about 9.26% of total assets, followed by Abbvie Inc. (ABBV) and Chevron Corporation (CVX). 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. |
23265.0 | 2022-07-14 00:00:00 UTC | 3 Inflation-Resistant Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-inflation-resistant-stocks-you-can-buy-right-now | nan | nan | The last time inflation was this high, the IBM personal computer was less than one year old, and Dallas and The Jeffersons ranked among the most watched TV shows.
While the stock market was down back in early 1982, there were still some businesses that handled inflation pretty well. The same is true today. Here are three inflation-resistant stocks you can buy right now.
1. AbbVie
AbbVie (NYSE: ABBV) already ranks as one of the largest drugmakers in the world. Market researcher EvaluatePharma projects that it could become the biggest pharma company based on prescription drug sales by 2028.
As you might expect, the use of prescription drugs isn't nearly as sensitive to inflation as most other products. AbbVie is able to pass higher costs along to payers relatively easily.
While the overall stock market has floundered so far this year, AbbVie's shares have soared. Investors have been attracted to its business stability, low valuation (its forward price-to-earnings multiple is under 11), and great dividend. The company is a Dividend King with 50 consecutive years of dividend increases. Its dividend currently yields 3.7%.
The only fly in the ointment for AbbVie is that its top-selling drug Humira loses U.S. exclusivity next year. Although this will make a dent in the company's revenue and earnings temporarily, AbbVie should rebound quickly thanks to its strong product lineup and pipeline programs.
2. Brookfield Renewable
Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) operates hydroelectric, solar, wind, and storage facilities that have a combined capacity of 21 gigawatts. Its renewable energy facilities are spread across North America, South America, Europe, and Asia.
The company views "inflation as a tailwind." Around 70% of Brookfield Renewable's contracts have automatic inflation escalators. The renewable energy provider's exposure to rising labor costs is relatively limited. And the company's energy sources -- sun, wind, and water -- are free.
Many countries and large corporations have established ambitious goals to reduce carbon emissions over the next few decades. These efforts will almost certainly drive increased demand for renewable energy. Brookfield Renewable is poised to meet these needs with a development pipeline capacity of 69 gigawatts -- more than triple its current capacity.
This clear path to sustained growth isn't the only major plus for Brookfield Renewable. The company also offers an attractive distribution that yields close to 3.6%. Brookfield Renewable expects to increase its distribution between 5% and 9% per year.
3. Markel
Markel's (NYSE: MKL) core business is providing specialty insurance for customers who typically can't obtain coverage through traditional insurance policies. This business generates significant cash flow, some of which Markel uses to invest in other companies.
Warren Buffett once wrote that the businesses that are most adaptable to high inflation do two things. First, they can easily increase prices without losing significant market share or volume. Second, they can increase business volume significantly without investing a lot of capital. Markel checks off both boxes.
Unsurprisingly, Buffett's Berkshire Hathaway initiated a position in Markel earlier this year. But it's probably not just Markel's inflation resistance that was so appealing to Buffett and his team. The company's long-term growth prospects are strong.
Markel's specialty insurance business should continue to flourish thanks to its solid underwriting process. Its Markel Ventures companies, which include a variety of businesses, are well-positioned for growth. Markel's investment portfolio should also perform well over the long run.
10 stocks we like better than AbbVie
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Keith Speights has positions in AbbVie, Berkshire Hathaway (B shares), Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares), Brookfield Renewable Corporation Inc., and Markel. The Motley Fool 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. | Although this will make a dent in the company's revenue and earnings temporarily, AbbVie should rebound quickly thanks to its strong product lineup and pipeline programs. AbbVie AbbVie (NYSE: ABBV) already ranks as one of the largest drugmakers in the world. AbbVie is able to pass higher costs along to payers relatively easily. | See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keith Speights has positions in AbbVie, Berkshire Hathaway (B shares), Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie AbbVie (NYSE: ABBV) already ranks as one of the largest drugmakers in the world. AbbVie is able to pass higher costs along to payers relatively easily. | See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keith Speights has positions in AbbVie, Berkshire Hathaway (B shares), Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie AbbVie (NYSE: ABBV) already ranks as one of the largest drugmakers in the world. AbbVie is able to pass higher costs along to payers relatively easily. | While the overall stock market has floundered so far this year, AbbVie's shares have soared. AbbVie AbbVie (NYSE: ABBV) already ranks as one of the largest drugmakers in the world. AbbVie is able to pass higher costs along to payers relatively easily. |
23266.0 | 2022-07-14 00:00:00 UTC | 2 Top Biotech Stocks Defying the Bear Market | ABBV | https://www.nasdaq.com/articles/2-top-biotech-stocks-defying-the-bear-market | nan | nan | Uncertainty over elevated inflation, future interest rate hikes, and a potential recession has weighed heavily on financial markets in 2022. In fact, the S&P 500 index has dipped 19% year to date.
But some sectors have fared far better to this point -- even as the markets have plunged. Since prescription drugs are needed in all economic environments, pharma stocks have unsurprisingly trounced the broader markets. AbbVie (NYSE: ABBV) and Bristol-Myers Squibb (NYSE: BMY) are two of the biggest and best pharma companies in the world that income investors should consider buying. Here's why.
Image source: Getty Images.
1. AbbVie
Chicago-based AbbVie owns the top-selling drug in the world, called Humira. The problem is that it will lose its patent in the U.S. next year; yet the company should have a strong enough pipeline to quickly bounce back, and investors appear to be optimistic.
That's because AbbVie has nearly 60 compounds in its pipeline across therapy areas like oncology, immunology, and neuroscience. The company has also secured approvals from the U.S. Food and Drug Administration in recent months that could be blockbusters like Skyrizi for psoriatic arthritis and Rinvoq for eczema.
Shares of AbbVie have gained 13% year to date. Yet the stock still appears to be attractively priced for long-term investors. AbbVie's forward price-to-earnings (P/E) ratio stands at about 11, which isn't a steep valuation for a stock that is a member of the Dividend Kings. And if that wasn't convincing enough, AbbVie's trailing 12-month price-to-free-cash-flow ratio of 12.4 is a bit lower than its 10-year median of 12.9.
AbbVie's 3.7% dividend yield puts the S&P 500's 1.6% yield to shame. And with its dividend payout ratio currently standing at 40%, the dividend should be able to grow at a mid-single-digit clip annually for the foreseeable future. This makes AbbVie a good pick for both immediate and future income.
2. Bristol-Myers Squibb
Like AbbVie, Bristol-Myers Squibb also has top-selling drugs facing patent expiration this decade. This includes cancer drugs Revlimid and Opdivo, as well as the anti-coagulant co-owned with Pfizer called Eliquis. These three drugs together contribute to approximately two-thirds of Bristol-Myers' revenue.
But with more than 50 compounds in its pipeline currently under development, the company should have enough firepower to overcome this challenge over the long run. This explains why analysts are forecasting that Bristol-Myers will deliver 4.5% annual earnings growth over the next five years.
Meanwhile, the stock rewards investors with a 2.9% dividend yield, which is nearly double the S&P 500's 1.6%. And that amount should have plenty of room to grow in the years ahead since the dividend payout ratio currently stands at just 29%. As a result, I believe that dividend growth will slightly exceed earnings growth over the medium term.
The stock also sports an attractive valuation with a forward P/E ratio of 10. This is well below the pharmaceutical industry's average of 13.5. Bristol-Myers isn't just cheap compared to its peers; the stock's trailing price-to-sales ratio of 3.6 is meaningfully lower than its 10-year median of 4.2.
Bristol-Myers Squibb's stock has surged 22% higher year to date. Yes, like AbbVie, Bristol-Myers still looks like a steal for both income and value investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) and Bristol-Myers Squibb (NYSE: BMY) are two of the biggest and best pharma companies in the world that income investors should consider buying. AbbVie Chicago-based AbbVie owns the top-selling drug in the world, called Humira. That's because AbbVie has nearly 60 compounds in its pipeline across therapy areas like oncology, immunology, and neuroscience. | Bristol-Myers Squibb Like AbbVie, Bristol-Myers Squibb also has top-selling drugs facing patent expiration this decade. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. AbbVie (NYSE: ABBV) and Bristol-Myers Squibb (NYSE: BMY) are two of the biggest and best pharma companies in the world that income investors should consider buying. | AbbVie's forward price-to-earnings (P/E) ratio stands at about 11, which isn't a steep valuation for a stock that is a member of the Dividend Kings. Bristol-Myers Squibb Like AbbVie, Bristol-Myers Squibb also has top-selling drugs facing patent expiration this decade. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Kody Kester has positions in AbbVie, Bristol Myers Squibb, and Pfizer. | Bristol-Myers Squibb Like AbbVie, Bristol-Myers Squibb also has top-selling drugs facing patent expiration this decade. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! AbbVie (NYSE: ABBV) and Bristol-Myers Squibb (NYSE: BMY) are two of the biggest and best pharma companies in the world that income investors should consider buying. |
23267.0 | 2022-07-14 00:00:00 UTC | Here's How You Can Earn 10% of Your Investment Back in Dividends | ABBV | https://www.nasdaq.com/articles/heres-how-you-can-earn-10-of-your-investment-back-in-dividends | nan | nan | Do you want to collect 10% of your investment back in dividends? There are stocks that yield that much right now, but there's often a significant risk with seeking out those types of investments. Generally, stocks with such high yields either have unsustainable payout ratios or their shares have been crashing heavily, perhaps because their underlying business is in trouble.
That's why if your goal is to lock in a 10% yield right now, it could be a risky strategy. A safer approach is to invest in dividend growth stocks. Over time, their increases will accumulate, and your recurring dividend income will rise.
A top dividend growth stock to consider
When investing in a dividend stock, it's important to look at one that has been increasing its payouts over time. That doesn't necessarily guarantee that it will continue to make dividend hikes in the future, but it's a great indication that the company's management is willing to do so. Plus, it also suggests the business' fundamentals are strong enough to support such moves.
A dividend growth stock that could make earning 10% back in dividends a reality is healthcare company and top drugmaker AbbVie (NYSE: ABBV). Today, it pays a yield of 3.7%. That's not bad, and at that rate, you would need to invest just over $27,000 to be earning $1,000 in annual dividend income.
But over the years, AbbVie has been increasing its payouts. Its current quarterly dividend payment is $1.41, which is 8.5% higher than the $1.30 it was paying a year earlier. And compared to five years earlier, when it was paying $0.64 every quarter, the dividend has risen by 120%, averaging a compound annual growth rate (CAGR) of 17%.
This tells investors that the company's recent round of increases has been slower than it was in the past. That can be common as businesses expand and choose to deploy more cash on growth objectives rather than dividends. And with the drugmaker's top-selling drug, Humira, facing patent expiration next year, AbbVie definitely has plenty of incentive to work on strengthening its business however it can before that happens. That could mean a slower dividend growth rate in the future, which, in turn, will impact how quickly your dividend income rises.
How long would it take for the dividend to be 10% of your investment?
The key to forecasting how long it will take for your dividend income to grow to the desired goal is estimating the dividend growth rate. If you're earning $37 on every $1,000 invested in the company today (i.e., a 3.7% yield), then a 10% dividend would be $100. That means the dividend would need to increase by 170% from where it is now.
At the five-year CAGR of 17% that AbbVie's dividend has been averaging, it would take more than six years of increases to get to that level. A more conservative estimate would be using 8.5%, the rate of its most recent increase. Under that assumption, you're looking at around 12 years of growth for $37 in dividend income to turn into $100. And if you wanted to be even more conservative and assume AbbVie slows its rate hikes further, to say an average of 5%, then the number of years you may need to wait is 20.
It can be difficult to estimate the growth rate, especially when you're looking at such a long time frame. The longer the period, the less likely it is that a high growth rate will be sustainable. But the conclusion remains the same: Buying and holding shares of a top dividend growth stock can be a way to significantly increase your recurring income from the stock and a way to collect 10% or more of your initial investment back through dividends.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And with the drugmaker's top-selling drug, Humira, facing patent expiration next year, AbbVie definitely has plenty of incentive to work on strengthening its business however it can before that happens. A dividend growth stock that could make earning 10% back in dividends a reality is healthcare company and top drugmaker AbbVie (NYSE: ABBV). But over the years, AbbVie has been increasing its payouts. | A dividend growth stock that could make earning 10% back in dividends a reality is healthcare company and top drugmaker AbbVie (NYSE: ABBV). But over the years, AbbVie has been increasing its payouts. And with the drugmaker's top-selling drug, Humira, facing patent expiration next year, AbbVie definitely has plenty of incentive to work on strengthening its business however it can before that happens. | A dividend growth stock that could make earning 10% back in dividends a reality is healthcare company and top drugmaker AbbVie (NYSE: ABBV). But over the years, AbbVie has been increasing its payouts. And with the drugmaker's top-selling drug, Humira, facing patent expiration next year, AbbVie definitely has plenty of incentive to work on strengthening its business however it can before that happens. | But over the years, AbbVie has been increasing its payouts. A dividend growth stock that could make earning 10% back in dividends a reality is healthcare company and top drugmaker AbbVie (NYSE: ABBV). And with the drugmaker's top-selling drug, Humira, facing patent expiration next year, AbbVie definitely has plenty of incentive to work on strengthening its business however it can before that happens. |
23268.0 | 2022-07-13 00:00:00 UTC | Noteworthy Wednesday Option Activity: ABBV, C, QCOM | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-abbv-c-qcom | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 32,846 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.8% of ABBV's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $140 strike call option expiring July 15, 2022, with 4,515 contracts trading so far today, representing approximately 451,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange:
Citigroup Inc (Symbol: C) options are showing a volume of 108,674 contracts thus far today. That number of contracts represents approximately 10.9 million underlying shares, working out to a sizeable 50.6% of C's average daily trading volume over the past month, of 21.5 million shares. Especially high volume was seen for the $45 strike put option expiring July 15, 2022, with 18,121 contracts trading so far today, representing approximately 1.8 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $45 strike highlighted in orange:
And Qualcomm Inc (Symbol: QCOM) options are showing a volume of 42,709 contracts thus far today. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 42.1% of QCOM's average daily trading volume over the past month, of 10.1 million shares. Especially high volume was seen for the $140 strike call option expiring July 15, 2022, with 3,415 contracts trading so far today, representing approximately 341,500 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for ABBV options, C options, or QCOM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $140 strike call option expiring July 15, 2022, with 4,515 contracts trading so far today, representing approximately 451,500 underlying shares of ABBV. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 32,846 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.8% of ABBV's average daily trading volume over the past month, of 6.3 million shares. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 32,846 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.8% of ABBV's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $140 strike call option expiring July 15, 2022, with 4,515 contracts trading so far today, representing approximately 451,500 underlying shares of ABBV. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 32,846 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.8% of ABBV's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $140 strike call option expiring July 15, 2022, with 4,515 contracts trading so far today, representing approximately 451,500 underlying shares of ABBV. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 32,846 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.8% of ABBV's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $140 strike call option expiring July 15, 2022, with 4,515 contracts trading so far today, representing approximately 451,500 underlying shares of ABBV. |
23269.0 | 2022-07-13 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-1 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Optimum Investment Advisors Existing +60 -$169
America First Investment Advisors LLC Existing UNCH -$4
Shelter Mutual Insurance Co Existing UNCH -$516
WBH Advisory Inc. Existing UNCH -$31
First Heartland Consultants Inc. Existing -214 -$277
Resonant Capital Advisors LLC Existing +429 -$41
One Plus One Wealth Management LLC Existing -200 -$70
Diversified Trust Co Existing +7,044 +$758
RGT Wealth Advisors LLC Existing -126 -$40
First Affirmative Financial Network Existing +110 -$3
Red Door Wealth Management LLC Existing +403 +$1
RVW Wealth LLC Existing -20 -$58
Sumitomo Mitsui DS Asset Management Company Ltd Existing -11,751 -$3,060
Aggregate Change: -4,265 -$3,510
In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 5 having decreased their positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 06/30/2022 reporting period (out of the 346 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 191,337 shares in the aggregate, from 6,597,837 up to 6,789,174 for a share count increase of approximately 2.90%. The overall top three funds holding ABBV on 06/30/2022 were:
» FUND SHARES OF ABBV HELD
1. Hamlin Capital Management LLC 947,180
2. DnB Asset Management AS 395,184
3. State of Alaska Department of Revenue 327,482
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 20 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 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 20 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. Existing -214 -$277 Resonant Capital Advisors LLC Existing +429 -$41 One Plus One Wealth Management LLC Existing -200 -$70 Diversified Trust Co Existing +7,044 +$758 RGT Wealth Advisors LLC Existing -126 -$40 First Affirmative Financial Network Existing +110 -$3 Red Door Wealth Management LLC Existing +403 +$1 RVW Wealth LLC Existing -20 -$58 Sumitomo Mitsui DS Asset Management Company Ltd Existing -11,751 -$3,060 Aggregate Change: -4,265 -$3,510 In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 5 having decreased their positions. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | Existing -214 -$277 Resonant Capital Advisors LLC Existing +429 -$41 One Plus One Wealth Management LLC Existing -200 -$70 Diversified Trust Co Existing +7,044 +$758 RGT Wealth Advisors LLC Existing -126 -$40 First Affirmative Financial Network Existing +110 -$3 Red Door Wealth Management LLC Existing +403 +$1 RVW Wealth LLC Existing -20 -$58 Sumitomo Mitsui DS Asset Management Company Ltd Existing -11,751 -$3,060 Aggregate Change: -4,265 -$3,510 In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 5 having decreased their positions. 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. State of Alaska Department of Revenue 327,482 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 20 most recent 13F filings for the 06/30/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. Existing -214 -$277 Resonant Capital Advisors LLC Existing +429 -$41 One Plus One Wealth Management LLC Existing -200 -$70 Diversified Trust Co Existing +7,044 +$758 RGT Wealth Advisors LLC Existing -126 -$40 First Affirmative Financial Network Existing +110 -$3 Red Door Wealth Management LLC Existing +403 +$1 RVW Wealth LLC Existing -20 -$58 Sumitomo Mitsui DS Asset Management Company Ltd Existing -11,751 -$3,060 Aggregate Change: -4,265 -$3,510 In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 03/31/2022 to 06/30/2022, with 5 having decreased their positions. State of Alaska Department of Revenue 327,482 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. |
23270.0 | 2022-07-13 00:00:00 UTC | Better Dividend Stock: AbbVie or Johnson & Johnson? | ABBV | https://www.nasdaq.com/articles/better-dividend-stock%3A-abbvie-or-johnson-johnson | nan | nan | The pharmaceutical industry is chock-full of companies that offer attractive dividends. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) especially stand out. They're two of the largest drugmakers in the world with a long lineup of successful products.
But which is the better dividend stock? Here's how AbbVie and Johnson & Johnson stack up against each other.
The case for AbbVie
Probably the first thing most investors look at with a dividend stock is the yield. You'll like what you see with AbbVie on this front. Its dividend yield currently stands at nearly 3.7%.
That yield would be even higher if AbbVie's shares had not performed so well recently. The stock jumped 26% in 2021 and is up by a double-digit percentage so far this year while the overall market has tumbled.
AbbVie has also been remarkably consistent in growing its dividend. It's a Dividend King with 50 consecutive years of dividend increases. Since spinning off from Abbott Labs in 2013, the company has boosted its dividend payout by more than 250%.
The main knock against AbbVie is that it faces the U.S. loss of exclusivity (LOE) for Humira next year. Humira ranks by far as the company's top-selling drug. However, this LOE shouldn't impact AbbVie's dividend at all. The drugmaker fully expects to return to growth in 2024 that should accelerate through the rest of the decade.
The case for Johnson & Johnson
Johnson & Johnson has long been a favorite for income investors. Its dividend yield tops 2.5%. But the main reason investors like J&J is that it's viewed as an ultra-safe dividend stock.
Like AbbVie, Johnson & Johnson is a Dividend King. However, its track record is even more impressive with a 60-year streak of dividend hikes. No other healthcare company has increased its dividend for as many consecutive years as J&J has.
Johnson & Johnson has its own major change on the way in 2023. The company plans to spin off its consumer healthcare business. This transaction will leave J&J with its faster-growing pharmaceutical and medical device segments.
What about the dividend? No worries. J&J has publicly stated its dividend will remain "at least at the same level" as before the spin-off.
Better dividend stock
AbbVie seems likely to continue offering a higher yield. However, it's likely that the company's dividend increases will be smaller over the next few years than in the past due to the Humira LOE.
On the other hand, it's hard to beat Johnson & Johnson's dividend when it comes to dependability. For that matter, it's hard to beat J&J as a business on that front. The company first opened its doors in 1886. It's survived and thrived through depressions, recessions, world wars, and other global crises.
I suspect that Johnson & Johnson will deliver stronger growth over the next three years as AbbVie deals with the effects of declining sales for Humira. Over the next decade and beyond, though, it could be a different story.
Several of J&J's products will also lose exclusivity over the next few years. Key U.S. patents for autoimmune-disease drug Stelara, which accounted for 9.7% of total revenue in 2021, expire in 2023. U.S. patents for J&J's second-largest franchise, cancer drug Darzalex, expire in 2029.
Income investors wouldn't go wrong with picking either of these stocks. But AbbVie already has two successors to Humira on the market (Rinvoq and Skyrizi) that should generate combined greater peak sales than Humira did. My view is that AbbVie gets the slight nod because of this and its higher dividend yield.
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Keith Speights has positions in AbbVie. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The main knock against AbbVie is that it faces the U.S. loss of exclusivity (LOE) for Humira next year. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) especially stand out. Here's how AbbVie and Johnson & Johnson stack up against each other. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) especially stand out. Here's how AbbVie and Johnson & Johnson stack up against each other. The case for AbbVie Probably the first thing most investors look at with a dividend stock is the yield. | The case for AbbVie Probably the first thing most investors look at with a dividend stock is the yield. Like AbbVie, Johnson & Johnson is a Dividend King. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) especially stand out. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) especially stand out. Here's how AbbVie and Johnson & Johnson stack up against each other. The case for AbbVie Probably the first thing most investors look at with a dividend stock is the yield. |
23271.0 | 2022-07-12 00:00:00 UTC | Ex-Dividend Reminder: Cracker Barrel Old Country Store, DTE Energy and AbbVie | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-cracker-barrel-old-country-store-dte-energy-and-abbvie | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/22, Cracker Barrel Old Country Store Inc (Symbol: CBRL), DTE Energy Co (Symbol: DTP), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Cracker Barrel Old Country Store Inc will pay its quarterly dividend of $1.30 on 8/5/22, DTE Energy Co will pay its quarterly dividend of $0.7812 on 8/1/22, and AbbVie Inc will pay its quarterly dividend of $1.41 on 8/15/22. As a percentage of CBRL's recent stock price of $88.84, this dividend works out to approximately 1.46%, so look for shares of Cracker Barrel Old Country Store Inc to trade 1.46% lower — all else being equal — when CBRL shares open for trading on 7/14/22. Similarly, investors should look for DTP to open 1.52% lower in price and for ABBV to open 0.92% lower, all else being equal.
Below are dividend history charts for CBRL, DTP, and ABBV, showing historical dividends prior to the most recent ones declared.
Cracker Barrel Old Country Store Inc (Symbol: CBRL):
DTE Energy Co (Symbol: DTP):
AbbVie Inc (Symbol: ABBV):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 5.85% for Cracker Barrel Old Country Store Inc, 6.08% for DTE Energy Co, and 3.66% for AbbVie Inc.
Free Report: Top 7%+ Dividends (paid monthly)
In Tuesday trading, Cracker Barrel Old Country Store Inc shares are currently up about 0.6%, DTE Energy Co shares are up about 0.2%, and AbbVie Inc shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 5.85% for Cracker Barrel Old Country Store Inc, 6.08% for DTE Energy Co, and 3.66% for AbbVie Inc. Free Report: Top 7%+ Dividends (paid monthly) In Tuesday trading, Cracker Barrel Old Country Store Inc shares are currently up about 0.6%, DTE Energy Co shares are up about 0.2%, and AbbVie Inc shares are up about 0.5% on the day. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/22, Cracker Barrel Old Country Store Inc (Symbol: CBRL), DTE Energy Co (Symbol: DTP), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Cracker Barrel Old Country Store Inc will pay its quarterly dividend of $1.30 on 8/5/22, DTE Energy Co will pay its quarterly dividend of $0.7812 on 8/1/22, and AbbVie Inc will pay its quarterly dividend of $1.41 on 8/15/22. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/22, Cracker Barrel Old Country Store Inc (Symbol: CBRL), DTE Energy Co (Symbol: DTP), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Cracker Barrel Old Country Store Inc will pay its quarterly dividend of $1.30 on 8/5/22, DTE Energy Co will pay its quarterly dividend of $0.7812 on 8/1/22, and AbbVie Inc will pay its quarterly dividend of $1.41 on 8/15/22. Cracker Barrel Old Country Store Inc (Symbol: CBRL): DTE Energy Co (Symbol: DTP): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/22, Cracker Barrel Old Country Store Inc (Symbol: CBRL), DTE Energy Co (Symbol: DTP), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Cracker Barrel Old Country Store Inc will pay its quarterly dividend of $1.30 on 8/5/22, DTE Energy Co will pay its quarterly dividend of $0.7812 on 8/1/22, and AbbVie Inc will pay its quarterly dividend of $1.41 on 8/15/22. If they do continue, the current estimated yields on annualized basis would be 5.85% for Cracker Barrel Old Country Store Inc, 6.08% for DTE Energy Co, and 3.66% for AbbVie Inc. Free Report: Top 7%+ Dividends (paid monthly) In Tuesday trading, Cracker Barrel Old Country Store Inc shares are currently up about 0.6%, DTE Energy Co shares are up about 0.2%, and AbbVie Inc shares are up about 0.5% on the day. | Cracker Barrel Old Country Store Inc (Symbol: CBRL): DTE Energy Co (Symbol: DTP): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. If they do continue, the current estimated yields on annualized basis would be 5.85% for Cracker Barrel Old Country Store Inc, 6.08% for DTE Energy Co, and 3.66% for AbbVie Inc. Free Report: Top 7%+ Dividends (paid monthly) In Tuesday trading, Cracker Barrel Old Country Store Inc shares are currently up about 0.6%, DTE Energy Co shares are up about 0.2%, and AbbVie Inc shares are up about 0.5% on the day. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/22, Cracker Barrel Old Country Store Inc (Symbol: CBRL), DTE Energy Co (Symbol: DTP), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. |
23272.0 | 2022-07-12 00:00:00 UTC | San Francisco reaches $54 million opioid settlement with Teva and Allergan | ABBV | https://www.nasdaq.com/articles/san-francisco-reaches-%2454-million-opioid-settlement-with-teva-and-allergan-0 | nan | nan | By Dietrich Knauth
July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced.
Under the deal, the companies will pay a combined $34 million in cash, and Teva will contribute a $20 million supply of the overdose-reversal drug Narcan. Teva's settlement also resolves the city's claims against drug distributor Anda Inc, which is owned by Teva.
The settlement was reached before closing arguments in a trial that kicked off on April 25. San Francisco will proceed with closing arguments on Tuesday against retail pharmacy chain Walgreens WBA.O, the last remaining defendant in the case.
Walgreens has denied wrongdoing.
(Reporting by Deitrich Knauth and Brendan Pierson in New York Editing by Philippa Fletcher and Mark Potter)
((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dietrich Knauth July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. San Francisco will proceed with closing arguments on Tuesday against retail pharmacy chain Walgreens WBA.O, the last remaining defendant in the case. (Reporting by Deitrich Knauth and Brendan Pierson in New York Editing by Philippa Fletcher and Mark Potter) ((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dietrich Knauth July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. Teva's settlement also resolves the city's claims against drug distributor Anda Inc, which is owned by Teva. The settlement was reached before closing arguments in a trial that kicked off on April 25. | By Dietrich Knauth July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. Teva's settlement also resolves the city's claims against drug distributor Anda Inc, which is owned by Teva. San Francisco will proceed with closing arguments on Tuesday against retail pharmacy chain Walgreens WBA.O, the last remaining defendant in the case. | By Dietrich Knauth July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. Teva's settlement also resolves the city's claims against drug distributor Anda Inc, which is owned by Teva. San Francisco will proceed with closing arguments on Tuesday against retail pharmacy chain Walgreens WBA.O, the last remaining defendant in the case. |
23273.0 | 2022-07-12 00:00:00 UTC | What's Happening With Merck Stock? | ABBV | https://www.nasdaq.com/articles/whats-happening-with-merck-stock | nan | nan | Merck stock (NYSE: MRK) has seen a 21% rise YTD, significantly outperforming its peers and the broader markets, with Johnson & Johnson stock up 4%, Pfizer stock down 6%, AbbVie stock up 12%, and the S&P500 index down 19%. There are a couple of factors aiding Merck’s stock growth. Firstly, the company’s Q1 performance was solid and well above the consensus estimates. Its top-selling drug Keytruda garnered $4.8 billion in sales, reflecting a 23% rise y-o-y. Sales of its Covid antiviral pill – Molnupiravir – co-developed with Ridgeback Therapeutics saw sales of $3.2 billion. The company also raised its full-year outlook, boosting investor confidence.
However, Merck is more in the limelight for its possible acquisition of 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.
Although Merck appears to have strong prospects, it faces headwinds from the current weakness in broader markets. The S&P500 has now entered near bear market territory with rising concerns of slowing economic growth given the high inflation, Fed action, and supply chain disruptions. These factors may impact MRK stock performance, as well.
Furthermore, we find MRK stock to have only a little room for growth and estimate Merck’s valuation to be $99 per share, reflecting only a 6% upside from its current market price of $93, implying that investors are likely to be better off waiting for a dip in MRK stock for better gains in the long-term. At its current levels, MRK stock is trading at 13x forward adjusted earnings, in line with the last three-year average of 13x, making the stock fairly valued. Our estimate doesn’t consider the recent developments around the Seagen acquisition. That said, if this deal goes through at a reasonable price, it is likely that MRK stock may see higher levels. The price being discussed for Seagen is reportedly above $200 a share For more information on Merck’s business model and revenue trends, check out our dashboard on Merck’s Revenue: How MRK Makes Money.
While MRK stock looks fairly valued, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities 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 21% 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 Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return 2% 21% 57%
S&P 500 Return 3% -18% 74%
Trefis Multi-Strategy Portfolio 7% -18% 223%
[1] Month-to-date and year-to-date as of 7/8/2022
[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. | Merck stock (NYSE: MRK) has seen a 21% rise YTD, significantly outperforming its peers and the broader markets, with Johnson & Johnson stock up 4%, Pfizer stock down 6%, AbbVie stock up 12%, and the S&P500 index down 19%. 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. | Merck stock (NYSE: MRK) has seen a 21% rise YTD, significantly outperforming its peers and the broader markets, with Johnson & Johnson stock up 4%, Pfizer stock down 6%, AbbVie stock up 12%, and the S&P500 index down 19%. At its current levels, MRK stock is trading at 13x forward adjusted earnings, in line with the last three-year average of 13x, making the stock fairly valued. Total [2] MRK Return 2% 21% 57% S&P 500 Return 3% -18% 74% Trefis Multi-Strategy Portfolio 7% -18% 223% [1] Month-to-date and year-to-date as of 7/8/2022 [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. | Merck stock (NYSE: MRK) has seen a 21% rise YTD, significantly outperforming its peers and the broader markets, with Johnson & Johnson stock up 4%, Pfizer stock down 6%, AbbVie stock up 12%, and the S&P500 index down 19%. Furthermore, we find MRK stock to have only a little room for growth and estimate Merck’s valuation to be $99 per share, reflecting only a 6% upside from its current market price of $93, implying that investors are likely to be better off waiting for a dip in MRK stock for better gains in the long-term. Total [2] MRK Return 2% 21% 57% S&P 500 Return 3% -18% 74% Trefis Multi-Strategy Portfolio 7% -18% 223% [1] Month-to-date and year-to-date as of 7/8/2022 [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. | Merck stock (NYSE: MRK) has seen a 21% rise YTD, significantly outperforming its peers and the broader markets, with Johnson & Johnson stock up 4%, Pfizer stock down 6%, AbbVie stock up 12%, and the S&P500 index down 19%. However, Merck is more in the limelight for its possible acquisition of Seagen Inc. in a deal value that could exceed $40 billion. These factors may impact MRK stock performance, as well. |
23274.0 | 2022-07-12 00:00:00 UTC | San Francisco reaches $54 million opioid settlement with Teva and Allergan | ABBV | https://www.nasdaq.com/articles/san-francisco-reaches-%2454-million-opioid-settlement-with-teva-and-allergan | nan | nan | July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced.
(Reporting by Brendan Pierson in New York; editing by Philippa Fletcher)
((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. (Reporting by Brendan Pierson in New York; editing by Philippa Fletcher) ((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. (Reporting by Brendan Pierson in New York; editing by Philippa Fletcher) ((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. (Reporting by Brendan Pierson in New York; editing by Philippa Fletcher) ((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 12 (Reuters) - Teva Pharmaceutical Industries Inc TEVA.TA and AbbVie's ABBV.N Allergan business unit reached a $58 million opioid settlement with the city of San Francisco over claims that they fueled an opioid epidemic in the city, San Francisco City Attorney David Chiu announced. (Reporting by Brendan Pierson in New York; editing by Philippa Fletcher) ((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk); 646-306-0235 (cell);)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23275.0 | 2022-07-11 00:00:00 UTC | Notable ETF Inflow Detected - IVW, LLY, TMO, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-ivw-lly-tmo-abbv | 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $158.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 463,550,000 to 466,050,000). Among the largest underlying components of IVW, in trading today Eli Lilly (Symbol: LLY) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.40. 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 IVW, in trading today Eli Lilly (Symbol: LLY) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.40. 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 IVW, in trading today Eli Lilly (Symbol: LLY) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.40. 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 IVW, in trading today Eli Lilly (Symbol: LLY) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $158.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 463,550,000 to 466,050,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.40. | Among the largest underlying components of IVW, in trading today Eli Lilly (Symbol: LLY) is trading flat, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $158.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 463,550,000 to 466,050,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $57.62 per share, with $85.09 as the 52 week high point — that compares with a last trade of $62.40. |
23276.0 | 2022-07-11 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-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 +6.7%, compared to the Zacks S&P 500 composite's -5.1% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.3%. 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.
AbbVie is expected to post earnings of $3.41 per share for the current quarter, representing a year-over-year change of +9.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $14 points to a change of +10.2% from the prior year. Over the last 30 days, this estimate has changed -1.4%.
For the next fiscal year, the consensus earnings estimate of $11.86 indicates a change of -15.3% from what AbbVie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $14.66 billion for the current quarter points to a year-over-year change of +5%. The $59.63 billion and $55.98 billion estimates for the current and next fiscal years indicate changes of +6.1% and -6.1%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.54 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $3.16 for the same period compares with $2.95 a year ago.
Compared to the Zacks Consensus Estimate of $13.55 billion, the reported revenues represent a surprise of -0.09%. The EPS surprise was +0.32%.
Over the last four quarters, AbbVie surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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 #4 does suggest that it may underperform 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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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 gained 0.3%. | For the next fiscal year, the consensus earnings estimate of $11.86 indicates a change of -15.3% from what AbbVie is expected to report a year ago. Last Reported Results and Surprise History AbbVie reported revenues of $13.54 billion in the last reported quarter, representing a year-over-year change of +4.1%. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.3%. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.3%. |
23277.0 | 2022-07-10 00:00:00 UTC | What's Driving AbbVie Stock Higher? | ABBV | https://www.nasdaq.com/articles/whats-driving-abbvie-stock-higher | nan | nan | AbbVie stock (NYSE: ABBV) has seen a 14% rise YTD, marking a significant outperformance compared to some of its peers and the broader markets, with Johnson & Johnson stock rising 4%, Pfizer stock down 9%, and the S&P 500 index falling 20. Looking at the longer term, ABBV stock is up a solid 74% from levels seen in late 2019. This growth was driven by: 1. AbbVie’s revenue, which grew 71% to $57 billion over the last twelve months, compared to $33 billion in 2019, 2. the company’s P/S ratio, which rose 3% to 4.8x trailing revenues, from 4.7x in 2019, partly offset by 3. a 20% rise in its total shares outstanding to 1.8 billion currently. This means the company’s revenue per share rose 42% to $31.84 now, compared to $22.37 in 2019. Our interactive dashboard, Why AbbVie Stock Moved, has more details.
AbbVie’s revenue growth has been buoyed by its Allergan acquisition in 2020. AbbVie is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered a whopping $20.7 billion in 2021 sales, reflecting a 4% y-o-y growth. Now, Humira’s biosimilar has already hit the European markets, weighing on the company’s international sales. The biosimilars are expected to enter the U.S. next year, and this will likely weigh on Humira sales over the coming years.
That said, Humira is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis are gaining market share. For perspective, these two products garnered $9.3 billion in 2021, reflecting a 94% y-o-y growth. Their combined peak sales estimate is over $15 billion. Furthermore, AbbVie has a great pipeline with over a dozen drugs in late-stage clinical trials, including some of the potential blockbuster drugs, such as ABBV-951, used for treating Parkinson’s disease. Overall, investors are looking forward to ABBV stock beyond just a Humira play with steady sales growth in the long run, which has boded well for its stock.
While the company has solid prospects, it faces headwinds from the current weakness in broader markets. The S&P500 has now entered the bear market territory with rising concerns of slowing economic growth given the high inflation, Fed action, and supply chain disruptions.
While ABBV stock has seen a 14% rise this year, it is helpful to see how AbbVie’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Xylem vs. Merck.
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 Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABBV Return 1% 14% 146%
S&P 500 Return 1% -20% 71%
Trefis Multi-Strategy Portfolio 5% -23% 208%
[1] Month-to-date and year-to-date as of 7/6/2022
[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. | AbbVie stock (NYSE: ABBV) has seen a 14% rise YTD, marking a significant outperformance compared to some of its peers and the broader markets, with Johnson & Johnson stock rising 4%, Pfizer stock down 9%, and the S&P 500 index falling 20. Looking at the longer term, ABBV stock is up a solid 74% from levels seen in late 2019. AbbVie’s revenue, which grew 71% to $57 billion over the last twelve months, compared to $33 billion in 2019, 2. the company’s P/S ratio, which rose 3% to 4.8x trailing revenues, from 4.7x in 2019, partly offset by 3. a 20% rise in its total shares outstanding to 1.8 billion currently. | AbbVie stock (NYSE: ABBV) has seen a 14% rise YTD, marking a significant outperformance compared to some of its peers and the broader markets, with Johnson & Johnson stock rising 4%, Pfizer stock down 9%, and the S&P 500 index falling 20. Total [2] ABBV Return 1% 14% 146% S&P 500 Return 1% -20% 71% Trefis Multi-Strategy Portfolio 5% -23% 208% [1] Month-to-date and year-to-date as of 7/6/2022 [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. Looking at the longer term, ABBV stock is up a solid 74% from levels seen in late 2019. | AbbVie stock (NYSE: ABBV) has seen a 14% rise YTD, marking a significant outperformance compared to some of its peers and the broader markets, with Johnson & Johnson stock rising 4%, Pfizer stock down 9%, and the S&P 500 index falling 20. AbbVie’s revenue, which grew 71% to $57 billion over the last twelve months, compared to $33 billion in 2019, 2. the company’s P/S ratio, which rose 3% to 4.8x trailing revenues, from 4.7x in 2019, partly offset by 3. a 20% rise in its total shares outstanding to 1.8 billion currently. Total [2] ABBV Return 1% 14% 146% S&P 500 Return 1% -20% 71% Trefis Multi-Strategy Portfolio 5% -23% 208% [1] Month-to-date and year-to-date as of 7/6/2022 [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. | AbbVie stock (NYSE: ABBV) has seen a 14% rise YTD, marking a significant outperformance compared to some of its peers and the broader markets, with Johnson & Johnson stock rising 4%, Pfizer stock down 9%, and the S&P 500 index falling 20. Total [2] ABBV Return 1% 14% 146% S&P 500 Return 1% -20% 71% Trefis Multi-Strategy Portfolio 5% -23% 208% [1] Month-to-date and year-to-date as of 7/6/2022 [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. Looking at the longer term, ABBV stock is up a solid 74% from levels seen in late 2019. |
23278.0 | 2022-07-10 00:00:00 UTC | How to Earn $10,000 a Year in Passive Retirement Income | ABBV | https://www.nasdaq.com/articles/how-to-earn-%2410000-a-year-in-passive-retirement-income | nan | nan | Most people would probably agree that it's pretty sweet to see cash trickle into your account every quarter, especially if you didn't need to sell your labor to make it happen. As it turns out, generating passive income in retirement is a lot easier than it sounds, assuming you invest in the right high-quality dividend stocks.
But what are the things to look for in a potential passive income investment, and which companies are likely to fit the bill for many years to come? Let's dive in and take a look.
Picking the right stocks for your income strategy
The first order of business is picking a stock that pays dividends and will continue to pay them at the same (or higher) rate for the foreseeable future. In this vein, shares of a major healthcare stock like AbbVie (NYSE: ABBV) are quite attractive for passive-income investors because such companies tend to have a history of consistently distributing dividends and of hiking their payouts repeatedly over long periods.
Furthermore, investors can bet on AbbVie continuing to do both of those things as its business model of developing and commercializing pharmaceuticals is one that's proven to be both lucrative and viable in a variety of economic conditions. Over the last decade, its trailing-12-month (TTM) net income rose by 275.9%, reaching nearly $12.5 billion, whereas its TTM revenue grew by 216.2% to hit more than $56.7 billion. Importantly, over the last five years, the company's quarterly dividend grew with a compound annual growth rate (CAGR) of around 17.1%. Even if it hits a few setbacks with getting its products approved for sale, its drug-development pipeline is so massive that it's hard to imagine AbbVie running out of opportunities for near-term growth.
There's one other important consideration which retirement-income investors need to know about picking income stocks. Especially if you're going to be counting on the dividend income to survive, you can't put all your eggs in one passive-income basket even if it's into a solid stock. You'll need to diversify your investment across several different companies, so if disaster strikes one of your core holdings, you won't suffer as much if a company needs to cut its dividend to survive. Aside from AbbVie, Gilead Sciences (NASDAQ: GILD) and GSK (NYSE: GSK) are two other drug developers which feature similar business models and dividend yields, though their dividend hikes aren't as favorable, so their future payouts probably won't be as lucrative. Just remember, the larger and more varied your pool of income sources becomes, the safer your final income stream will ultimately be.
Here's how much you'll need to invest
At the moment, AbbVie's forward annual dividend is $5.64 per share, which at its current price means its forward dividend yield is near 3.7%. So, you'd need to invest more than $269,541 to get $10,000 per year in gross passive income, which is an unrealistically large amount to have on hand for most people, and an unadvisable sum to drop into any one stock while saving for retirement. To get around this constraint, you could invest gradually over a long period between now and when you plan to retire while also reinvesting your past dividends to take advantage of compounding over time.
If we assume that dividend hikes enable the yield to remain in roughly the same range as it's in right now over the next 25 years, you'd only need to invest a more manageable sum of around $9,800 per year into AbbVie or (preferably) a basket of stocks with similar yields to get to the same dividend income after that. If the company's dividend continues to grow as rapidly as it has in recent history, it's also concievable that investing an even smaller amount annually could accomplish the same result. Alternatively, you can always choose to wait longer before stopping your dividend reinvestment plan, which will mean that you have a larger number of shares to subsequently yield cash.
In closing, building a source of passive income in your portfolio isn't cheap, nor is it something you can do without a little bit of research into the appropriate investments. Still, it's hard to argue with the benefit of getting money every quarter for doing very little.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this vein, shares of a major healthcare stock like AbbVie (NYSE: ABBV) are quite attractive for passive-income investors because such companies tend to have a history of consistently distributing dividends and of hiking their payouts repeatedly over long periods. Furthermore, investors can bet on AbbVie continuing to do both of those things as its business model of developing and commercializing pharmaceuticals is one that's proven to be both lucrative and viable in a variety of economic conditions. Even if it hits a few setbacks with getting its products approved for sale, its drug-development pipeline is so massive that it's hard to imagine AbbVie running out of opportunities for near-term growth. | Aside from AbbVie, Gilead Sciences (NASDAQ: GILD) and GSK (NYSE: GSK) are two other drug developers which feature similar business models and dividend yields, though their dividend hikes aren't as favorable, so their future payouts probably won't be as lucrative. In this vein, shares of a major healthcare stock like AbbVie (NYSE: ABBV) are quite attractive for passive-income investors because such companies tend to have a history of consistently distributing dividends and of hiking their payouts repeatedly over long periods. Furthermore, investors can bet on AbbVie continuing to do both of those things as its business model of developing and commercializing pharmaceuticals is one that's proven to be both lucrative and viable in a variety of economic conditions. | Aside from AbbVie, Gilead Sciences (NASDAQ: GILD) and GSK (NYSE: GSK) are two other drug developers which feature similar business models and dividend yields, though their dividend hikes aren't as favorable, so their future payouts probably won't be as lucrative. If we assume that dividend hikes enable the yield to remain in roughly the same range as it's in right now over the next 25 years, you'd only need to invest a more manageable sum of around $9,800 per year into AbbVie or (preferably) a basket of stocks with similar yields to get to the same dividend income after that. In this vein, shares of a major healthcare stock like AbbVie (NYSE: ABBV) are quite attractive for passive-income investors because such companies tend to have a history of consistently distributing dividends and of hiking their payouts repeatedly over long periods. | If we assume that dividend hikes enable the yield to remain in roughly the same range as it's in right now over the next 25 years, you'd only need to invest a more manageable sum of around $9,800 per year into AbbVie or (preferably) a basket of stocks with similar yields to get to the same dividend income after that. In this vein, shares of a major healthcare stock like AbbVie (NYSE: ABBV) are quite attractive for passive-income investors because such companies tend to have a history of consistently distributing dividends and of hiking their payouts repeatedly over long periods. Furthermore, investors can bet on AbbVie continuing to do both of those things as its business model of developing and commercializing pharmaceuticals is one that's proven to be both lucrative and viable in a variety of economic conditions. |
23279.0 | 2022-07-10 00:00:00 UTC | 3 Unstoppable Dividend Stocks to Buy and Never Sell | ABBV | https://www.nasdaq.com/articles/3-unstoppable-dividend-stocks-to-buy-and-never-sell | nan | nan | Unfortunately, "set and forget" isn't a strategy you can use with many stocks. Too many things can change over the years that can make a once-attractive stock an albatross on your portfolio.
There are exceptions, though. Some of them even offer solid dividends that boost your total returns significantly over time. Here are three unstoppable dividend stocks to buy and never sell.
1. Brookfield Renewable
My Motley Fool colleagues Jason Hall and Travis Hoium recently referred to Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) as "a foundational stock for the future of energy." That's a lofty accolade -- and one that's well deserved.
Brookfield Renewable operates hydroelectric, wind, solar, and storage facilities that, combined, generate around 21 gigawatts of power. The company has increased its distribution by a compound annual growth rate of 6% since 2013. Its distribution currently yields more than 3.5%.
Increasing the adoption of renewable energy is critical for reducing carbon emissions. Switching to solar and wind also makes financial sense. These two clean energy sources are already more cost-effective than energy production using coal or gas. Their value propositions will be even more attractive in the future.
Brookfield Renewable is poised to benefit from these tailwinds. The company's development pipeline capacity totals nearly 69 gigawatts, with another 21 gigawatts expected to come online by 2030. Average annual total returns in the ballpark of 15% should be easily attainable for this unstoppable stock.
2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) arguably ranks as one of the safest dividend stocks on the planet. It's a Dividend King with an impressive track record of 60 consecutive years of dividend increases. J&J's dividend yield currently tops 2.5%.
The company has been in business since 1886.This longevity shows that Johnson & Johnson can adapt to changing market environments. The healthcare sector of today is very different than it was a century ago, but J&J remains one of the leaders.
One example of how Johnson & Johnson continues to evolve is the pending spin-off of its consumer health business. J&J plans to spin off the unit as a separate publicly traded entity in 2023, keeping the pharmaceutical and medical device segments as part of the core company.
As a result of this move, Johnson & Johnson should be in a position to deliver stronger growth than it has in recent years. The company will retain several products with fast-growing sales, including cancer drug Darzalex and autoimmune-disease drug Tremfya.
3. AbbVie
Several of the same arguments for Johnson & Johnson also apply to AbbVie (NYSE: ABBV). Like J&J, AbbVie is a Dividend King -- albeit just barely, with a 50-year streak of dividend increases. The drugmaker's dividend yield of 3.7% looks especially attractive.
AbbVie has trounced the overall market so far in 2022. That's not surprising. The big pharma stock has also beaten the S&P 500 over the past three-year, five-year, and 10-year periods.
The main reason behind AbbVie's strong performance is that the company continues to grow through acquisitions and internal innovation. As a case in point, AbbVie's top-selling drug Humira loses U.S. patent exclusivity next year. But the company already has two successors to Humira quickly racking up sales, Rinvoq and Skyrizi. It has also reduced its dependence on Humira through the 2020 acquisition of Allergan.
AbbVie has clearly demonstrated that it can survive and thrive in the midst of the rapidly changing biopharmaceutical market. Even though the company will inevitably face patent expirations for key products in the future, its commitment to research and business development should make AbbVie a winner for a long time to come.
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Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. The Motley Fool has positions in and recommends Brookfield Renewable Corporation Inc. The Motley Fool recommends 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. | Even though the company will inevitably face patent expirations for key products in the future, its commitment to research and business development should make AbbVie a winner for a long time to come. AbbVie Several of the same arguments for Johnson & Johnson also apply to AbbVie (NYSE: ABBV). Like J&J, AbbVie is a Dividend King -- albeit just barely, with a 50-year streak of dividend increases. | See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie Several of the same arguments for Johnson & Johnson also apply to AbbVie (NYSE: ABBV). Like J&J, AbbVie is a Dividend King -- albeit just barely, with a 50-year streak of dividend increases. | See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie Several of the same arguments for Johnson & Johnson also apply to AbbVie (NYSE: ABBV). Like J&J, AbbVie is a Dividend King -- albeit just barely, with a 50-year streak of dividend increases. | AbbVie Several of the same arguments for Johnson & Johnson also apply to AbbVie (NYSE: ABBV). Like J&J, AbbVie is a Dividend King -- albeit just barely, with a 50-year streak of dividend increases. AbbVie has trounced the overall market so far in 2022. |
23280.0 | 2022-07-10 00:00:00 UTC | 2 Surefire Dividend Stocks I'd Buy Now and Hold for at Least a Decade | ABBV | https://www.nasdaq.com/articles/2-surefire-dividend-stocks-id-buy-now-and-hold-for-at-least-a-decade | nan | nan | It's hard to watch the value of your portfolio decline in a bear market. The pain is so acute right now that dividend-paying stocks tied to businesses with reliable cash flows have a hard time finding buyers at sensible prices.
Times like these are when the world's most successful investors do the most shopping. The market may have found a bottom already, or we could be in for a lot more pain.
Luckily, we have good reasons to expect many more years of strong cash flows from these dividend-paying businesses. Here's how they can boost your returns if you just give them some time.
1. Digital Realty Trust
Investors seeking reliable dividends want to get their hands on some shares of Digital Realty Trust (NYSE: DLR). This is a real estate investment trust (REIT) that owns heaps of data centers, which are essentially rooms full of powerful computers and air conditioning units to keep them from overheating.
REITs are a great option for investors who want to generate a lot of passive income because they legally avoid taxation as long as they distribute nearly all of their profits to investors as dividends.
Digital Realty is a particularly good REIT to buy now since businesses all over the world are in the middle of an unstoppable shift away from in-house infrastructure and toward services that reside in the cloud. This is why analysts at Allied Market Research predict the data center industry will almost triple from $187 billion in 2020 to $517 billion in 2030.
In the first quarter of 2022 alone, Digital Realty Trust signed new leases on a little over 1 million square feet of property at rates that would make landlords in Manhattan blush. Annual rental rates on the new leases work out to around $155 per square foot.
At recent prices, shares of Digital Realty Trust offer a 3.8% yield, and investors can look forward to a rising payout. Reliable cash flows from lessees locked into long-term contracts allowed the company to raise its dividend payout 67% over the past 10 years.
We already know that this REIT has the means to raise its payout further. Funds from operations came in at $6.47 per share over the past year -- more than enough to meet an annual dividend obligation that is currently set at $4.88 per share.
2. AbbVie
AbbVie (NYSE: ABBV) offers a healthy dividend yield of 3.7% right now, slightly less than Digital Realty Trust -- but probably not for very long.
This biopharmaceutical company has increased its dividend by more than 250% since spinning off from Abbott Laboratories in 2013. The reason for the split was concern about the impending loss of market exclusivity for Humira, a blockbuster injection for treating arthritis and psoriasis that racked up more than $20 billion in sales last year.
Next year, Humira sales will begin to tank as a slew of biosimilars that have already been approved by the FDA enter the U.S. market. This is a great stock to buy now because the investments AbbVie has made with Humira could allow it to continue raising its dividend at a hair-raising pace for another decade.
In 2020, AbbVie acquired Allergan and its Botox franchise for about $63 billion. There are already other companies marketing drugs very similar to Botox, but none of them have AbbVie's enormous resources to develop and market them. Without significant competition anywhere in sight, the $4.7 billion in sales Botox racked up last year will probably keep climbing for at least another decade.
While Botox climbs steadily, a pair of drugs AbbVie launched in 2019 could offset Humira losses on their own. Rinvoq, a treatment for arthritis, is already on pace to exceed $2 billion in sales this year. Sales of Skyrizi, a psoriasis treatment, are climbing even faster.
AbbVie finished the first quarter on pace to reach $4 billion in sales this year. With a proven ability to reinvest profits from one blockbuster drug into the development of new ones, dividend investors can look forward to heaps of passive income from this stock.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) offers a healthy dividend yield of 3.7% right now, slightly less than Digital Realty Trust -- but probably not for very long. This is a great stock to buy now because the investments AbbVie has made with Humira could allow it to continue raising its dividend at a hair-raising pace for another decade. In 2020, AbbVie acquired Allergan and its Botox franchise for about $63 billion. | AbbVie AbbVie (NYSE: ABBV) offers a healthy dividend yield of 3.7% right now, slightly less than Digital Realty Trust -- but probably not for very long. This is a great stock to buy now because the investments AbbVie has made with Humira could allow it to continue raising its dividend at a hair-raising pace for another decade. In 2020, AbbVie acquired Allergan and its Botox franchise for about $63 billion. | AbbVie AbbVie (NYSE: ABBV) offers a healthy dividend yield of 3.7% right now, slightly less than Digital Realty Trust -- but probably not for very long. This is a great stock to buy now because the investments AbbVie has made with Humira could allow it to continue raising its dividend at a hair-raising pace for another decade. In 2020, AbbVie acquired Allergan and its Botox franchise for about $63 billion. | AbbVie AbbVie (NYSE: ABBV) offers a healthy dividend yield of 3.7% right now, slightly less than Digital Realty Trust -- but probably not for very long. This is a great stock to buy now because the investments AbbVie has made with Humira could allow it to continue raising its dividend at a hair-raising pace for another decade. In 2020, AbbVie acquired Allergan and its Botox franchise for about $63 billion. |
23281.0 | 2022-07-09 00:00:00 UTC | This Company Could Ease the Pain in a Bear Market | ABBV | https://www.nasdaq.com/articles/this-company-could-ease-the-pain-in-a-bear-market | nan | nan | Biotechnology company Vertex Pharmaceuticals (NASDAQ: VRTX) carved a name for itself in cystic fibrosis but has been slow to diversify into other diseases. That finally looks about to change as the company is on the verge of entering several new markets and dramatically expanding its total addressable patient population.
Vertex sets high bar in cystic fibrosis
Vertex is the undisputed leader in the cystic fibrosis field, offering a suite of four treatments, including top-selling megablockbuster drug Trikafta. With patent protection extending to 2037 and no other competitors in the market, Trikafta enjoys an enviable economic moat.
Potential competitor AbbVie gifted Vertex several more years of market dominance when it decided to scrap its phase 2 trial of a combination drug because it did not meet pre-determined criteria at the interim analysis. Instead, it will replace one of the active components and initiate a new Phase 2 trial next year. At the moment, Vertex's own next-generation, combination drug -- now in Phase 3 trials -- looks to become Trikafta's primary competitor.
Vertex's existing cystic fibrosis products have already been rapidly adopted by the U.S. market, but there is still plenty of room for growth. The company is looking to expand the label to treat younger children, and developing a new mRNA treatment for a subset of patients whose condition isn't addressed by Trikafta. All told, management estimates that 83,000 patients suffer from cystic fibrosis across the US, Europe, Australia, and Canada, and at least 30,000 of those remain untreated.
Poised to treat new diseases
As dominant as Vertex's position looks in cystic fibrosis, several new pipeline candidates are even more exciting. Blood disorder treatment Exa-Cel is closest to fruition, and Vertex claims that its gene-editing treatment has the potential to "functionally cure" 31 patients with sickle cell disease in its study. Approval for this indication would be a major prize, as 25,000 people in the U.S. and Europe suffer from severe sickle cell disease, and theglobal marketis expected to grow 19% annually to be worth $7.7 billion by 2027.
Trials in beta thalassemia are also underway although this market is smaller with only 7,000 people in the US and Europe. Vertex could capture 60% of net sales from these two markets, sharing the rest with partner CRISPR Therapeutics.
Meanwhile, pipeline candidate VX-147 is in a phase 3 trial targeting a genetic kidney disease caused by two mutations in the APOL-1 gene. The disease affects 100,000 in the U.S. and Europe, which is about 20% larger than the cystic fibrosis market, and this is another underserved market. The company initiated its pivotal clinical trial last March, and it may seek an accelerated approval from regulators if the 48-week interim analysis looks promising.
The largest-volume market, by far, in Vertex's sights is non-opioid pain medication VX-548. The CDC estimates there are over 75,000 overdose deaths in the U.S. annually from opioids, and VX-548 has the potential to be a safer pain-management option that removes the threat of addiction.
Management states that the U.S. market alone has more than 1.5 billion treatment days annually for acute pain, which calculates out to more than four million doses of pain medication administered each day. Following phase 2 results in March, Vertex plans to advance to pivotal trials later this year.
On the cusp of major growth
Even as a single-disease company, Vertex achieved positive cash flow of $2.6 billion in 2021. Revenue for the year was $7.6 billion, and management expects this number to grow to about $8.5 billion in 2022.
But Vertex's total addressable market of 83,000 in 2022 for cystic fibrosis may jump to over 215,000 in 2023 if the company gains approval for beta-thalassemia, sickle cell disease, and kidney disease. The company does face competition in blood disorders from Bluebird Bio's gene therapy program, with the FDA likely to approve its beti-cel for beta thalassemia by August, as well as several treatments already on the market, but these diseases still need more effective therapies.
At its current price-to-earning ratio of 31, Vertex is pricier than other large biotech companies such as Gilead, Regeneron, or Moderna. But the company offers higher near-term growth prospects and diversified technology that includes small molecule, mRNA, and gene-editing treatments. For investors interested in gene-editing stocks, its partnership with CRISPR Therapeutics offers exposure at far lower risk. And for investors seeking a major biotech player, Vertex starts to look like a truly solid, long-term investment as it finally branches into new diseases.
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Natalie Forbes has positions in Bristol Myers Squibb. The Motley Fool has positions in and recommends Bristol Myers Squibb, CRISPR Therapeutics, Gilead Sciences, and Vertex Pharmaceuticals. The Motley Fool recommends Bluebird Bio 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. | Potential competitor AbbVie gifted Vertex several more years of market dominance when it decided to scrap its phase 2 trial of a combination drug because it did not meet pre-determined criteria at the interim analysis. The company is looking to expand the label to treat younger children, and developing a new mRNA treatment for a subset of patients whose condition isn't addressed by Trikafta. Approval for this indication would be a major prize, as 25,000 people in the U.S. and Europe suffer from severe sickle cell disease, and theglobal marketis expected to grow 19% annually to be worth $7.7 billion by 2027. | Potential competitor AbbVie gifted Vertex several more years of market dominance when it decided to scrap its phase 2 trial of a combination drug because it did not meet pre-determined criteria at the interim analysis. The company does face competition in blood disorders from Bluebird Bio's gene therapy program, with the FDA likely to approve its beti-cel for beta thalassemia by August, as well as several treatments already on the market, but these diseases still need more effective therapies. The Motley Fool has positions in and recommends Bristol Myers Squibb, CRISPR Therapeutics, Gilead Sciences, and Vertex Pharmaceuticals. | Potential competitor AbbVie gifted Vertex several more years of market dominance when it decided to scrap its phase 2 trial of a combination drug because it did not meet pre-determined criteria at the interim analysis. Vertex sets high bar in cystic fibrosis Vertex is the undisputed leader in the cystic fibrosis field, offering a suite of four treatments, including top-selling megablockbuster drug Trikafta. But Vertex's total addressable market of 83,000 in 2022 for cystic fibrosis may jump to over 215,000 in 2023 if the company gains approval for beta-thalassemia, sickle cell disease, and kidney disease. | Potential competitor AbbVie gifted Vertex several more years of market dominance when it decided to scrap its phase 2 trial of a combination drug because it did not meet pre-determined criteria at the interim analysis. Vertex sets high bar in cystic fibrosis Vertex is the undisputed leader in the cystic fibrosis field, offering a suite of four treatments, including top-selling megablockbuster drug Trikafta. Approval for this indication would be a major prize, as 25,000 people in the U.S. and Europe suffer from severe sickle cell disease, and theglobal marketis expected to grow 19% annually to be worth $7.7 billion by 2027. |
23282.0 | 2022-07-08 00:00:00 UTC | Chinook (KDNY) Stock Rallies 24.2% in 3 Months: Here's Why | ABBV | https://www.nasdaq.com/articles/chinook-kdny-stock-rallies-24.2-in-3-months%3A-heres-why | nan | nan | Shares of Chinook Therapeutics KDNY have risen 24.2% in the past three months against the industry’s 5% decline.
Image Source: Zacks Investment Research
Berkley, CA-based Chinook is focused on developing precision medicines, targeting kidney diseases. With no marketable drugs in its portfolio, the company is entirely dependent on its pipeline development for growth.
The lead candidate in Chinook’s pipeline is atrasentan, a potent and selective endothelin A (ETA) receptor antagonist, which is being evaluated in a late-stage ALIGN study for IgA nephropathy (IgAN) as well as a mid-stage basket study (AFFINITY) for proteinuric glomerular diseases.
The second candidate in KDNY’s pipeline is BION-1301, a monoclonal antibody, which has been designed to block APRIL, a soluble factor believed to be responsible for causing IgA nephropathy (IgAN). The candidate is being evaluated in a phase I/II study in patients with IgAN.
One of the main reasons for this rise in stock price is management’s announcement of updated results from the phase I/II study evaluating BION-1301 in IgAN earlier this May. Data from one of the cohorts of the study showed that treatment with BION-1301 exhibited durable proteinuria reductions in IgAN patients within three months of treatment initiation.
All the eight study participants administered with BION-1301 showed a 48.8% proteinuria reduction after three to six months of treatment. In fact, a 70.9% proteinuria reduction was seen in six patients following one year of treatment, while the remaining two patients achieved a 69.1% proteinuria reduction after 1.5 years of treatment.
Treatment with BION-1301 also demonstrated durable and sustained reductions in Gd-IgA1, IgA, IgM and IgG levels. Data from another cohort of this study is expected later this year. Based on these results, Chinook plans to design a phase III study, which will evaluate BION-1301 in IgAN patients. This study is expected to start in 2023.
Currently, there are a few treatment options available for treating IgAN. Even the use of steroids is considered in treating high-risk IgAN patients. Successful development of BION-1301 in IgAN will cater to the unmet needs of this population. In fact, the above results from the phase I/II study prove the efficacy of treatment with BION-1301 in IgAN.
Earlier this week, KDNY announced that the European Commission granted orphan drug designation to BION-1301 for the treatment of primary IgAN.
With regard to atrasentan, KDNY plans to report top-line data from the ALIGN study next year. This data will be used by the company to seek approval for atrasentan in IgAN under the accelerated pathway.
Chinook Therapeutics believes that atrasentan, which is in phase III development for IgAN, has the potential to provide benefits in multiple chronic kidney diseases by reducing proteinuria and having direct anti-inflammatory and anti-fibrotic effects to preserve kidney function.
Atrasentan was originally developed by AbbVie ABBV. The candidate was in-licensed by Chinook in December 2019 as part of a license agreement with ABBV. Per the terms of agreement, AbbVie is eligible to receive milestone payments of $135 million in aggregate. In addition, ABBV will also be eligible to receive royalty payments on worldwide sales if the drug is successfully developed and launched.
Apart from the above two candidates, Chinook also has a third candidate in its pipeline, CHK-336, which is an LDHA inhibitor for the treatment of primary hyperoxaluria (PH), secondary hyperoxaluria and idiopathic kidney stone formation. In April, KDNY initiated an early-stage study evaluating this candidate in healthy volunteers. Data from the same is expected in first-half 2023.
Chinook Therapeutics, Inc. Price
Chinook Therapeutics, Inc. price | Chinook Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Chinook Therapeutics currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked stocks in the overall healthcare sector are Novo Nordisk NVO and Sesen Bio SESN. While Sesen Bio sports a Zacks Rank #1 (Strong Buy), Novo Nordisk carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Sesen Bio’s 2022 bottom line have declined from a loss of 46 cents to 44 cents in the past 60 days. The share price of Sesen Bio has risen 14.4% in the year-to-date period.
Earnings of Sesen Bio beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 69.9%. In the last reported quarter, Sesen Bio delivered an earnings surprise of 100%.
Estimates for Novo Nordisk’s 2022 bottom line have increased from $3.42 to $3.52 in the past 60 days. Estimates for 2023 have increased from $3.96 to $4.24 in the past 60 days. Share prices of Novo Nordisk have declined 1.8% in the year-to-date period.
Earnings of Novo Nordisk beat estimates in each of the last four quarters, the average surprise being 7.6%. In the last reported quarter, Novo Nordisk delivered an earnings surprise of 10.6%.
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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. | Atrasentan was originally developed by AbbVie ABBV. The candidate was in-licensed by Chinook in December 2019 as part of a license agreement with ABBV. Per the terms of agreement, AbbVie is eligible to receive milestone payments of $135 million in aggregate. | Atrasentan was originally developed by AbbVie ABBV. The candidate was in-licensed by Chinook in December 2019 as part of a license agreement with ABBV. Per the terms of agreement, AbbVie is eligible to receive milestone payments of $135 million in aggregate. | Atrasentan was originally developed by AbbVie ABBV. The candidate was in-licensed by Chinook in December 2019 as part of a license agreement with ABBV. Per the terms of agreement, AbbVie is eligible to receive milestone payments of $135 million in aggregate. | Atrasentan was originally developed by AbbVie ABBV. The candidate was in-licensed by Chinook in December 2019 as part of a license agreement with ABBV. Per the terms of agreement, AbbVie is eligible to receive milestone payments of $135 million in aggregate. |
23283.0 | 2022-07-08 00:00:00 UTC | Want to Beat the Bear Market? Try These 2 Stocks | ABBV | https://www.nasdaq.com/articles/want-to-beat-the-bear-market-try-these-2-stocks | nan | nan | The bear market has sent plenty of great companies into the doldrums. Most of us know that just by looking at our portfolios. And that's OK. We're in this for the long term. Once economic pressures ease, our favorite companies have a great chance of rebounding -- and gaining over time.
Meanwhile, it's always a good idea to pick up a stock that has resisted the general negative market move. Two drugmakers have done just that. Vertex Pharmaceuticals (NASDAQ: VRTX) and AbbVie (NYSE: ABBV) are both gaining so far this year -- even as the S&P 500 declines. They've climbed 32% and 12%, respectively. The S&P 500 has lost 19%. It's impossible to predict whether this trend will continue. But we can say these two companies have what it takes to keep going strong. Let's find out more.
1. Vertex
Vertex is already bringing in billions of dollars in revenue and profit from its cystic fibrosis (CF) business. The company's top drug, Trikafta, has the ability to treat 90% of CF patients. But it hasn't reached that full population yet. That means there's room for even more growth for this blockbuster.
Meanwhile, Vertex is working on a CF candidate that may be even better than Trikafta. That potential product is in phase 3 trials right now. The company is also developing a treatment for the 10% of patients who can't be helped by Vertex's current CF products. It's partnered with Moderna on this program, and the companies hope to launch clinical trials in the second half.
But what's really sparked investors' interest is Vertex's progress on a program outside of its CF specialty. Vertex and partner CRISPR Therapeutics plan on requesting regulatory approval for their gene-editing treatment for blood disorders by the end of the year. This could be a game-changing product for two reasons. First, treatment options for beta thalassemia and sickle cell disease are limited. And second, the Vertex candidate is a one-time curative treatment.
All this means Vertex may bring in blockbuster revenue -- and profit -- well into the future.
2. AbbVie
AbbVie is on its way to dominating the prescription drug market. The company is expected to hold the biggest share of this market by 2026, according to Evaluate Pharma. This is even as AbbVie's biggest blockbuster -- Humira -- prepares to face biosimilar competition in the U.S. next year. The immunology drug already saw a 22% drop in revenue internationally in the first quarter as competition there heats up.
Still, AbbVie predicts its other immunology drugs, Skyrizi and Rinvoq, together will surpass Humira's peak sales. AbbVie also owns strong neuroscience and aesthetics portfolios. Net revenue climbed 19% and 20%, respectively, in the first quarter. Botox as a therapeutic and bipolar disorder drug Vraylar led gains in neuroscience. Botox as an anti-wrinkle treatment and the Juvederm dermal filler collection led increases in aesthetics.
AbbVie's pipeline is another reason to like this pharmaceutical company. The pipeline includes dozens of candidates in a wide range of treatment areas -- from oncology to eye care. And about 19 candidates are in phase 3. This means new products might be on the horizon.
So, yes, the bad news is that Humira sales are on the decline. But AbbVie has plenty of other products to keep revenue and profit growing over the long term. And that's great news for investors.
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Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends 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. | Vertex Pharmaceuticals (NASDAQ: VRTX) and AbbVie (NYSE: ABBV) are both gaining so far this year -- even as the S&P 500 declines. AbbVie AbbVie is on its way to dominating the prescription drug market. This is even as AbbVie's biggest blockbuster -- Humira -- prepares to face biosimilar competition in the U.S. next year. | This is even as AbbVie's biggest blockbuster -- Humira -- prepares to face biosimilar competition in the U.S. next year. Vertex Pharmaceuticals (NASDAQ: VRTX) and AbbVie (NYSE: ABBV) are both gaining so far this year -- even as the S&P 500 declines. AbbVie AbbVie is on its way to dominating the prescription drug market. | Vertex Pharmaceuticals (NASDAQ: VRTX) and AbbVie (NYSE: ABBV) are both gaining so far this year -- even as the S&P 500 declines. AbbVie AbbVie is on its way to dominating the prescription drug market. This is even as AbbVie's biggest blockbuster -- Humira -- prepares to face biosimilar competition in the U.S. next year. | This is even as AbbVie's biggest blockbuster -- Humira -- prepares to face biosimilar competition in the U.S. next year. But AbbVie has plenty of other products to keep revenue and profit growing over the long term. Vertex Pharmaceuticals (NASDAQ: VRTX) and AbbVie (NYSE: ABBV) are both gaining so far this year -- even as the S&P 500 declines. |
23284.0 | 2022-07-07 00:00:00 UTC | Health Care Sector Update for 07/07/2022: CTMX,ABBV,SRNE,KALV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-07-07-2022%3A-ctmxabbvsrnekalv | nan | nan | Health care stocks still were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.3%.
The Nasdaq Biotechnology index was climbing 1.9% in recent trade.
In company news, CytomX Therapeutics (CTMX) dropped nearly 40% to a record low of $1.19 after Thursday saying it was scrapping work on its praluzatamab ravtansine drug candidate following mixed results from a mid-stage trial for the prospective treatment for breast cancer. The underwhelming study data also prompted downgrades of CytomX by analysts at Wedbush and Jefferies.
AbbVie (ABBV) slid 0.5% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Analysts, on average, have been looking for a $14.00 per share adjusted profit for the drugmaker this year, according to Capital IQ.
To the upside, Sorrento Therapeutics (SRNE) added 4.5% after saying its Scilex Holding subsidiary has signed a term sheet to buy privately held medical technology company Ancora Medical.
KalVista Pharmaceuticals (KALV) rose over 10% after the early-stage drugmaker Thursday reported a loss of $0.98 per share for its fiscal Q4 compared with a $0.65 per share loss during the same quarter last year but still topping the Capital IQ consensus call expecting a $1.09 per share net loss.
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) slid 0.5% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. In company news, CytomX Therapeutics (CTMX) dropped nearly 40% to a record low of $1.19 after Thursday saying it was scrapping work on its praluzatamab ravtansine drug candidate following mixed results from a mid-stage trial for the prospective treatment for breast cancer. Analysts, on average, have been looking for a $14.00 per share adjusted profit for the drugmaker this year, according to Capital IQ. | AbbVie (ABBV) slid 0.5% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Health care stocks still were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.3%. In company news, CytomX Therapeutics (CTMX) dropped nearly 40% to a record low of $1.19 after Thursday saying it was scrapping work on its praluzatamab ravtansine drug candidate following mixed results from a mid-stage trial for the prospective treatment for breast cancer. | AbbVie (ABBV) slid 0.5% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Health care stocks still were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.3%. KalVista Pharmaceuticals (KALV) rose over 10% after the early-stage drugmaker Thursday reported a loss of $0.98 per share for its fiscal Q4 compared with a $0.65 per share loss during the same quarter last year but still topping the Capital IQ consensus call expecting a $1.09 per share net loss. | AbbVie (ABBV) slid 0.5% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Health care stocks still were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.3%. The Nasdaq Biotechnology index was climbing 1.9% in recent trade. |
23285.0 | 2022-07-07 00:00:00 UTC | Senate Finance report says AbbVie shifted profit overseas to cut taxes | ABBV | https://www.nasdaq.com/articles/senate-finance-report-says-abbvie-shifted-profit-overseas-to-cut-taxes | nan | nan | By Michael Erman
July 7 (Reuters) - Drugmaker AbbVie Inc ABBV.O generates most of its sales in the United States, while shifting most of its profits overseas in order to avoid U.S. taxes, an interim report from the Senate Finance Committee said on Thursday.
According to the Democratic staff report, more than 75% of Illinois-based AbbVie's sales were made in the United States, while just 1% of its income was reported in its home country for tax purposes.
This has been a long term trend for the company. In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda.
The Senate Finance Committee report said that the profit shifting has resulted in "stunningly low effective tax rates" for the drugmaker in recent years: 8.7% in 2018, 8.6% in 2019 and 11.2% in 2020. The current U.S. corporate tax rate is 21%.
The report suggested reforms to the U.S. tax code to remedy the issue, including increasing taxes on certain income earned abroad and fixing loopholes that encourage offshoring.
AbbVie did not respond to a request for comment.
(Reporting by Michael Erman Editing by Bill Berkrot)
((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. | By Michael Erman July 7 (Reuters) - Drugmaker AbbVie Inc ABBV.O generates most of its sales in the United States, while shifting most of its profits overseas in order to avoid U.S. taxes, an interim report from the Senate Finance Committee said on Thursday. In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda. According to the Democratic staff report, more than 75% of Illinois-based AbbVie's sales were made in the United States, while just 1% of its income was reported in its home country for tax purposes. | By Michael Erman July 7 (Reuters) - Drugmaker AbbVie Inc ABBV.O generates most of its sales in the United States, while shifting most of its profits overseas in order to avoid U.S. taxes, an interim report from the Senate Finance Committee said on Thursday. In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda. According to the Democratic staff report, more than 75% of Illinois-based AbbVie's sales were made in the United States, while just 1% of its income was reported in its home country for tax purposes. | By Michael Erman July 7 (Reuters) - Drugmaker AbbVie Inc ABBV.O generates most of its sales in the United States, while shifting most of its profits overseas in order to avoid U.S. taxes, an interim report from the Senate Finance Committee said on Thursday. According to the Democratic staff report, more than 75% of Illinois-based AbbVie's sales were made in the United States, while just 1% of its income was reported in its home country for tax purposes. In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda. | By Michael Erman July 7 (Reuters) - Drugmaker AbbVie Inc ABBV.O generates most of its sales in the United States, while shifting most of its profits overseas in order to avoid U.S. taxes, an interim report from the Senate Finance Committee said on Thursday. According to the Democratic staff report, more than 75% of Illinois-based AbbVie's sales were made in the United States, while just 1% of its income was reported in its home country for tax purposes. In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda. |
23286.0 | 2022-07-07 00:00:00 UTC | Health Care Sector Update for 07/07/2022: KALV, SRNE, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-07-07-2022%3A-kalv-srne-abbv | nan | nan | Health care stocks were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.1%.
The Nasdaq Biotechnology index, however, was climbing 2.4% in recent trade.
In company news, KalVista Pharmaceuticals (KALV) rose over 12% after the early-stage drugmaker Thursday reported a loss of $0.98 per share for its fiscal Q4 compared with a $0.65 per share loss during the same quarter last year but still topping the Capital IQ consensus call expecting a $1.09 per share net loss.
Sorrento Therapeutics (SRNE) added 5.3% after saying its Scilex Holding subsidiary has signed a term sheet to buy privately-held medical technology company Ancora Medical.
AbbVie (ABBV) slid 0.4% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Analysts, on average, have been looking for a $14.00 per share adjusted profit for the drugmaker this year, according to Capital IQ.
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) slid 0.4% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. In company news, KalVista Pharmaceuticals (KALV) rose over 12% after the early-stage drugmaker Thursday reported a loss of $0.98 per share for its fiscal Q4 compared with a $0.65 per share loss during the same quarter last year but still topping the Capital IQ consensus call expecting a $1.09 per share net loss. Analysts, on average, have been looking for a $14.00 per share adjusted profit for the drugmaker this year, according to Capital IQ. | AbbVie (ABBV) slid 0.4% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Health care stocks were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.1%. In company news, KalVista Pharmaceuticals (KALV) rose over 12% after the early-stage drugmaker Thursday reported a loss of $0.98 per share for its fiscal Q4 compared with a $0.65 per share loss during the same quarter last year but still topping the Capital IQ consensus call expecting a $1.09 per share net loss. | AbbVie (ABBV) slid 0.4% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Health care stocks were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.1%. In company news, KalVista Pharmaceuticals (KALV) rose over 12% after the early-stage drugmaker Thursday reported a loss of $0.98 per share for its fiscal Q4 compared with a $0.65 per share loss during the same quarter last year but still topping the Capital IQ consensus call expecting a $1.09 per share net loss. | AbbVie (ABBV) slid 0.4% on Thursday after overnight paring its FY22 profit forecast by $0.14 per share on both sides of its prior outlook to a new range of $13.78 to $13.98 per share, excluding one-time items, to account for a $269 million pre-tax expense for acquired in-process research and development and milestone payments. Health care stocks were narrowly higher this afternoon, with the NYSE Health Care Index rising 0.2% and the SPDR Health Care Select Sector ETF (XLV) up 0.1%. The Nasdaq Biotechnology index, however, was climbing 2.4% in recent trade. |
23287.0 | 2022-07-07 00:00:00 UTC | Best Stocks for 2022: AbbVie Is a Recession-Resistant Dividend King | ABBV | https://www.nasdaq.com/articles/best-stocks-for-2022%3A-abbvie-is-a-recession-resistant-dividend-king | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: This column is part of InvestorPlace.com’s Best Stocks for 2022 contest. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock.
The stock market recently entered bear market territory. Although the S&P 500 index has regained some ground lately, there is a possibility of further declines. Inflation continues to roar, and in response the Federal Reserve is aggressively raising interest rates.
In addition, the ongoing war between Russia and Ukraine has caused oil prices to spike. Putting it all together, and the U.S. economy could be on the verge of recession.
When stock prices decline, investors can buffer their portfolios by holding high-quality dividend stocks. This is why I continue to recommend investors consider pharmaceutical giant AbbVie (NYSE:ABBV). AbbVie continues to generate strong growth even in a difficult economic backdrop due to its high-quality product portfolio.
AbbVie stock also has a high dividend yield, with regular dividend increases — AbbVie is one of just 65 Dividend Aristocrats, and one of just 44 Dividend Kings.
ABBV AbbVie $153.15
ABBV Stock First Quarter Earnings
In the first quarter of 2022, AbbVie generated revenue of $13.5 billion, representing 4% year-over-year growth. Adjusted diluted earnings-per-share of $3.16 increased 9.3%. AbbVie’s earnings-per-share beat the consensus analyst estimate by 2 cents.
AbbVie’s growth is led by newer products such as Skyrizi and Rinvoq, which generated first-quarter operational revenue growth of 65.6% and 57.3%, respectively. Revenue from the immunology portfolio was $6.141 billion, an increase of 8% year-over-year.
AbbVie also has an emerging aesthetics portfolio, which it obtained from the massive $63 billion acquisition of Allergan. AbbVie’s global aesthetics portfolio generated revenue growth of 22.5% for the first quarter, and global Botox cosmetic revenue increased 36.6%.
The company lowered guidance for the full year, now expecting to earn $13.92 – $14.12 on a per-share basis for 2022. Still, this would represent strong profitability and growth for the full year, while leaving plenty of room for continued dividend increases. At the midpoint of guidance, AbbVie’s earnings-per-share would increase 10% from 2021.
The Future of ABBV Stock
ABBV stock does have one lingering area of concern, which is the impending expiration of patent protection for its flagship drug Humira. This was once the best-selling drug in the world, but Humira lost patent exclusivity in Europe and is set to lose exclusivity in the U.S. in 2023. As a result, generic competition will surely cause Humira sales to decline.
Indeed, AbbVie expects its annual revenue to decline next year as a result. However, the company expects to return to growth in 2024 and beyond, due to a mix of organic investments in R&D as well as growth through acquisitions. For example, AbbVie expects combined annual revenue of Skyrizi and Rinvoq to surpass $15 billion by 2025.
ABBV stock has a secure dividend payout. Its expected payout ratio for 2022 is just 40%. The company has increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT).
AbbVie is a high-growth dividend stock. The company increased its dividend by 8.5% this year. Looking back further, the company has increased its dividend by over 250% since the 2013 spin-off from Abbott. AbbVie shares currently yield 3.7%, which is more than double the average dividend yield of the S&P 500.
I expect AbbVie to grow earnings per share by 2.5% per year over the next five years. This growth should be sustained even if a recession occurs. The U.S. healthcare industry, and especially the drug industry, is not very cyclical. People require healthcare treatment whether the economy is strong or not, so it is highly likely that AbbVie will continue to perform well during recessions. Therefore, AbbVie is a recession-resistant dividend growth stock.
On the date of publication, Bob Ciura was LONG ABBV stock. He did not have (either directly or indirectly) any positions in the other 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 Best Stocks for 2022: AbbVie Is a Recession-Resistant Dividend King 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. | AbbVie continues to generate strong growth even in a difficult economic backdrop due to its high-quality product portfolio. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock. This is why I continue to recommend investors consider pharmaceutical giant AbbVie (NYSE:ABBV). | ABBV AbbVie $153.15 ABBV Stock First Quarter Earnings In the first quarter of 2022, AbbVie generated revenue of $13.5 billion, representing 4% year-over-year growth. AbbVie’s global aesthetics portfolio generated revenue growth of 22.5% for the first quarter, and global Botox cosmetic revenue increased 36.6%. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock. | AbbVie stock also has a high dividend yield, with regular dividend increases — AbbVie is one of just 65 Dividend Aristocrats, and one of just 44 Dividend Kings. ABBV AbbVie $153.15 ABBV Stock First Quarter Earnings In the first quarter of 2022, AbbVie generated revenue of $13.5 billion, representing 4% year-over-year growth. Therefore, AbbVie is a recession-resistant dividend growth stock. | Indeed, AbbVie expects its annual revenue to decline next year as a result. ABBV stock has a secure dividend payout. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock. |
23288.0 | 2022-07-06 00:00:00 UTC | These 5 Top Stocks Are Set to Outperform in a Recession | ABBV | https://www.nasdaq.com/articles/these-5-top-stocks-are-set-to-outperform-in-a-recession | nan | nan | The Federal Reserve is grappling with elevated inflation by taking a hawkish stance and raising interest rates. The threat of a recession is real, and many consider it inevitable. This is the bad news. The good news is that some stocks perform well no matter what, others perform better historically during economic difficulty, and others go on sale.
You may be wondering, why invest at all during a downturn? Studies show that staying invested produces much greater returns than trying to time the market. It turns out that missing just a few of the largest "up" days crushes long-term profits. And those rallies often come when we least expect them. The best move for long-term investors is to have a disciplined strategy and stay the course.
Recessions come about for various reasons, and each has unique aspects -- including today's economic slowdown. But no matter the cause, they generally result in stocks falling in price. Yes, it's nearly impossible to predict an exact market bottom, but a dollar-cost averaging strategy can reduce risk. There are several tried-and-true methods to take advantage of this market drop:
Look for companies with recession-proof income that pay significant dividends, like prescription drugmaker AbbVie (NYSE: ABBV) and cell tower REIT American Tower (NYSE: AMT)
Find a company that benefits from sky-high inflation and has a history of outperformance during downturns, like auto parts supplier AutoZone (NYSE: AZO).
Sprinkle in solid growth companies whose stock has fallen out of favor, yet for which the secular bull case remains intact. Intuitive Surgical (NASDAQ: ISRG) and Palo Alto Networks (NASDAQ: PANW) are terrific examples.
Let's find out a bit more about these five stocks that can outperform in a recession.
Sleep well at night with dividends
The prescription drug market is highly recession-proof. These products are primarily necessities, not luxuries. AbbVie is a leading developer, manufacturer, and marketer of pharmaceuticals that is best known for its Humira franchise.
Humira will soon face competition from biosimilars -- biologic products approved because they're highly similar to existing medicines (but not generic forms of the existing med) -- but AbbVie has developed a tremendous portfolio. It produced over $56 billion in 2021 revenue with $35.5 billion in non-Humira sales.
The loss of some Humira revenue will be challenging, but the company has guided for over $15 billion in annual sales from its new drugs Rinvoq and Skyrizi by 2025, which should help fill the gap. The stock yields around 3.5% and has outperformed the S&P 500 this year by more than 30%, as shown below.
ABBV data by YCharts
American Tower is one of the world's largest real estate investment trusts (REITs) with 221,000 communication sites globally. A REIT enjoys certain tax advantages provided it returns 90% of its taxable income to shareholders as dividends.
Like AbbVie, American Tower provides a product critical to daily life -- in this case, communications towers leased out to various radio and cellular services. Global data usage will likely continue climbing for a long time.
American Tower grew adjusted funds from operations (AFFO) per share at a compound annual growth rate (CAGR) of 13.8% over the past decade while its dividend rose at an even higher 21.5% CAGR during that time.
AMT FFO Per Share (TTM) data by YCharts
The dividend currently yields around 2%. This is a terrific stock to buy and tuck away.
AutoZone outperforms during economic struggles
The prices of used and new vehicles have skyrocketed, and a detailed look at the reasons partially explains why. The bottom line is that supply-and-demand forces conspired to push prices out of the reach of many Americans. These folks need their current vehicles to last longer, and AutoZone's parts for DIYers and professionals are in demand.
Same-store sales increased 2.6% year over year last quarter, on top of a 28.9% increase the year before. Management needs to manage rising costs but is confident the company will outperform in an economic downturn, as it has historically.
AZO data by YCharts
As shown above, the company massively outperformed the market during the Great Recession and is gearing up for a repeat performance.
Sprinkle in some beaten-down growth stocks
Growth stocks have taken an absolute beating in 2022. Many posted terrific results and have favorable secular prospects. Nibbling at these now could be a smart move for long-term investors.
Robot-assisted surgery is gaining widespread adoption from reputable practitioners, including the Mayo Clinic. Surgical systems enable doctors to perform procedures using minimally invasive techniques. This reduces complications and recovery times, among other benefits. Intuitive Surgical is the dominant industry leader, with over 6,900 of its da Vinci surgical systems installed.
Intuitive is not the average growth stock. Let's count the ways:
It is highly profitable. The company posted operating and net income margins of 27% and 25%, respectively, last quarter.
It has an arsenal of cash and investments on hand. $8.4 billion, a whopping 12% of the current market cap, was on hand at the end of the last quarter.
It has a wide moat. Intense regulations and high development and switching costs make the barriers to entry mountainous for competitors. This is evidenced by Intuitive's near-80% market share.
Intuitive is trading at its lowest price-to-earnings ratio since the pandemic, possibly making this a terrific time for long-term investors to get greedy.
Cybersecurity is important to many CEOs. Cyberthreats and security needs are flourishing, and so is Palo Alto Networks. This network, cloud, and endpoint security company posted $1.4 billion in sales last quarter with a $6.9 billion backlog, an increase of 29% and 40% year over year, respectively.
The company values growth over profits now, so investors shouldn't expect earnings calculated according to generally accepted accounting principles (GAAP) yet. Palo Alto reports impressive cash from operations, $390 million last quarter, and non-GAAP (adjusted) profits, which foreshadow its future potential. Palo Alto stock trades more than 20% off its 52-week highs.
Continuing to invest in the face of market turmoil is tough, but the numbers don't lie. Investing for the long haul in solid companies is the way to go.
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Bradley Guichard has positions in AbbVie, American Tower, Intuitive Surgical, and Palo Alto Networks and has the following options: short July 2022 $155 calls on AbbVie. The Motley Fool has positions in and recommends American Tower, Intuitive Surgical, and Palo Alto Networks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV data by YCharts American Tower is one of the world's largest real estate investment trusts (REITs) with 221,000 communication sites globally. There are several tried-and-true methods to take advantage of this market drop: Look for companies with recession-proof income that pay significant dividends, like prescription drugmaker AbbVie (NYSE: ABBV) and cell tower REIT American Tower (NYSE: AMT) Find a company that benefits from sky-high inflation and has a history of outperformance during downturns, like auto parts supplier AutoZone (NYSE: AZO). AbbVie is a leading developer, manufacturer, and marketer of pharmaceuticals that is best known for its Humira franchise. | There are several tried-and-true methods to take advantage of this market drop: Look for companies with recession-proof income that pay significant dividends, like prescription drugmaker AbbVie (NYSE: ABBV) and cell tower REIT American Tower (NYSE: AMT) Find a company that benefits from sky-high inflation and has a history of outperformance during downturns, like auto parts supplier AutoZone (NYSE: AZO). See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bradley Guichard has positions in AbbVie, American Tower, Intuitive Surgical, and Palo Alto Networks and has the following options: short July 2022 $155 calls on AbbVie. AbbVie is a leading developer, manufacturer, and marketer of pharmaceuticals that is best known for its Humira franchise. | There are several tried-and-true methods to take advantage of this market drop: Look for companies with recession-proof income that pay significant dividends, like prescription drugmaker AbbVie (NYSE: ABBV) and cell tower REIT American Tower (NYSE: AMT) Find a company that benefits from sky-high inflation and has a history of outperformance during downturns, like auto parts supplier AutoZone (NYSE: AZO). See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bradley Guichard has positions in AbbVie, American Tower, Intuitive Surgical, and Palo Alto Networks and has the following options: short July 2022 $155 calls on AbbVie. AbbVie is a leading developer, manufacturer, and marketer of pharmaceuticals that is best known for its Humira franchise. | There are several tried-and-true methods to take advantage of this market drop: Look for companies with recession-proof income that pay significant dividends, like prescription drugmaker AbbVie (NYSE: ABBV) and cell tower REIT American Tower (NYSE: AMT) Find a company that benefits from sky-high inflation and has a history of outperformance during downturns, like auto parts supplier AutoZone (NYSE: AZO). AbbVie is a leading developer, manufacturer, and marketer of pharmaceuticals that is best known for its Humira franchise. Humira will soon face competition from biosimilars -- biologic products approved because they're highly similar to existing medicines (but not generic forms of the existing med) -- but AbbVie has developed a tremendous portfolio. |
23289.0 | 2022-07-05 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-3 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $153.93, marking a +0.08% move from the previous day. The stock lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.49%.
Coming into today, shares of the drugmaker had gained 4.96% in the past month. In that same time, the Medical sector lost 1.13%, while the S&P 500 lost 6.79%.
AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. This would mark year-over-year growth of 10.29%. Our most recent consensus estimate is calling for quarterly revenue of $14.66 billion, up 5% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $14.02 per share and revenue of $59.63 billion. These results would represent year-over-year changes of +10.39% and +6.11%, respectively.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. AbbVie is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 10.97. This valuation marks a discount compared to its industry's average Forward P/E of 13.23.
Also, we should mention that ABBV has a PEG ratio of 4.33. 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. ABBV's industry had an average PEG ratio of 2 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $153.93, marking a +0.08% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | In the latest trading session, AbbVie (ABBV) closed at $153.93, marking a +0.08% move from the previous day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $14.02 per share and revenue of $59.63 billion. AbbVie will be looking to display strength as it nears its next earnings release. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $14.02 per share and revenue of $59.63 billion. In the latest trading session, AbbVie (ABBV) closed at $153.93, marking a +0.08% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. | In that report, analysts expect AbbVie to post earnings of $3.43 per share. In the latest trading session, AbbVie (ABBV) closed at $153.93, marking a +0.08% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. |
23290.0 | 2022-07-05 00:00:00 UTC | Is First Trust Health Care AlphaDEX ETF (FXH) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-first-trust-health-care-alphadex-etf-fxh-a-strong-etf-right-now-2 | nan | nan | Making its debut on 05/08/2007, smart beta exchange traded fund First Trust Health Care AlphaDEX ETF (FXH) provides investors broad exposure to the Health Care ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $1.42 billion, this makes it one of the larger ETFs in the Health Care ETFs. FXH is managed by First Trust Advisors. FXH, before fees and expenses, seeks to match the performance of the StrataQuant Health Care Index.
The StrataQuant Health Care Index employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index.
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.
Annual operating expenses for FXH are 0.61%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 100% of the portfolio, the fund has heaviest allocation to the Healthcare sector.
Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN).
The top 10 holdings account for about 21.91% of total assets under management.
Performance and Risk
The ETF has lost about -14.38% and is down about -11.61% so far this year and in the past one year (as of 07/05/2022), respectively. FXH has traded between $97.16 and $128.11 during this last 52-week period.
The fund has a beta of 0.84 and standard deviation of 23.41% for the trailing three-year period, which makes FXH a medium risk choice in this particular space. With about 86 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Health Care AlphaDEX ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Health Care ETF (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $15.64 billion in assets, Health Care Select Sector SPDR ETF has $37.69 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
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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, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. | Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report Vanguard Health Care ETF (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. | Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report Making its debut on 05/08/2007, smart beta exchange traded fund First Trust Health Care AlphaDEX ETF (FXH) provides investors broad exposure to the Health Care ETFs category of the market. | Taking into account individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report Making its debut on 05/08/2007, smart beta exchange traded fund First Trust Health Care AlphaDEX ETF (FXH) provides investors broad exposure to the Health Care ETFs category of the market. |
23291.0 | 2022-07-05 00:00:00 UTC | This Blockbuster Drug from AbbVie Is Closer to Another Major Indication | ABBV | https://www.nasdaq.com/articles/this-blockbuster-drug-from-abbvie-is-closer-to-another-major-indication | nan | nan | The European Medicine Agency's Committee for Medicinal Products for Human Use (CHMP) recently adopted a positive opinion that recommended the approval of AbbVie's (NYSE: ABBV) Rinvoq for what would be its fifth indication in that market. This would be to treat patients with moderate-to-severe ulcerative colitis who had an inadequate response to conventional therapies or biologic agents.
A decision for Rinvoq as a treatment for moderate-to-severe ulcerative colitis patients from the European Commission is expected in the third quarter of this year. But what could that mean for the pharma stock AbbVie's sales? Let's check out the results from Rinvoq's phase 3 clinical trials and the European Union ulcerative colitis market to answer this question.
An impactful treatment option
Ulcerative colitis is a form of inflammatory bowel disease (IBD) that causes chronic inflammation and damage to the gastrointestinal (GI) tract. This differs from the other form of IBD called Crohn's disease in at least one major way: Ulcerative colitis is limited to the rectum and large intestine, whereas Crohn's disease can affect any part of the GI tract.
Ulcerative colitis impedes the ability of the digestive tract to properly process food/waste and absorb water. This results in symptoms such as weight loss, fatigue, and loss of appetite. The long-term complications of ulcerative colitis that isn't adequately treated include osteoporosis and anemia.
But there is a silver lining for patients who are experiencing moderate-to-severe cases of ulcerative colitis. The sheer size of the ulcerative colitis market has enticed many pharmaceutical companies to devote resources toward developing more treatments to improve outcomes for patients.
Rinvoq is a drug that has proven itself to be effective at assisting ulcerative colitis patients in treating their condition. What's the data behind my argument?
Patients in Rinvoq's phase 3 clinical trials with moderate-to-severe ulcerative colitis were randomized to either the treatment group of 15 milligrams (mg) or 30 mg once each day or the placebo group. Those patients assigned to the treatment group fared much better than those in the placebo group at achieving clinical remission -- characterized by few or no symptoms of ulcerative colitis.
The 42% and 52% clinical remission rates at week 52 of the treatment group far exceeded the 12% in the placebo group that also achieved clinical remission at week 52.
Image source: Getty Images.
A slight sales boost
Rinvoq looks like it could be a potent treatment option for moderate-to-severe ulcerative colitis patients. So, how much could an indication in the European Union bring in for AbbVie?
It's estimated that there are 3 million patients living with IBD in the European Union. Assuming the split between Crohn's disease and ulcerative colitis is similar to the United States, this implies that there are 1.4 million patients with ulcerative colitis in the European Union. If 21% to 22% of these patients have moderate-to-severe disease severity as is the case in the United States, this would be a patient pool of 298,000.
Anti-tumor necrosis factor (TNF) agents like AbbVie's Humira are the first-line treatment for patients with ulcerative colitis. But 60% to 70% of patients treated with anti-TNF agents don't improve or experience a relapse in their condition during the first year on anti-TNF agents. This creates a potentially eligible patient pool of 194,000 for Rinvoq.
Factoring in a 6% patient share, this is equivalent to nearly 12,000 patients. The annual list price for Rinvoq is $68,000 in the United States. Since drugs are approximately 50% cheaper in the European Union, I will use an annual list price of $34,000. Considering patient financial assistance programs and the bargaining power of health insurers to drive down the cost of treatments, I'll plug in an annual net price per patient of $25,000.
This works out to $300 million in annual sales potential for a moderate-to-severe ulcerative colitis indication in the European Union. Against the $59.6 billion in sales that analysts are expecting in 2022, the indication would provide a 0.5% bump in AbbVie's sales. Along with the $400 million annual sales potential of Rinvoq's ulcerative colitis indication in the United States, these approvals add up over time.
A safe, high-yielding dividend stock
AbbVie appears to be an interesting stock for income investors. This is because the Dividend King yields 3.7%, which is more than double the S&P 500 index's 1.6% dividend yield. And with a dividend payout ratio set to be around 40% in 2022, investors can rest assured that the stock will deliver many more years of dividend hikes moving forward.
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Kody Kester has positions in AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The European Medicine Agency's Committee for Medicinal Products for Human Use (CHMP) recently adopted a positive opinion that recommended the approval of AbbVie's (NYSE: ABBV) Rinvoq for what would be its fifth indication in that market. But what could that mean for the pharma stock AbbVie's sales? So, how much could an indication in the European Union bring in for AbbVie? | The European Medicine Agency's Committee for Medicinal Products for Human Use (CHMP) recently adopted a positive opinion that recommended the approval of AbbVie's (NYSE: ABBV) Rinvoq for what would be its fifth indication in that market. But what could that mean for the pharma stock AbbVie's sales? So, how much could an indication in the European Union bring in for AbbVie? | The European Medicine Agency's Committee for Medicinal Products for Human Use (CHMP) recently adopted a positive opinion that recommended the approval of AbbVie's (NYSE: ABBV) Rinvoq for what would be its fifth indication in that market. But what could that mean for the pharma stock AbbVie's sales? So, how much could an indication in the European Union bring in for AbbVie? | The European Medicine Agency's Committee for Medicinal Products for Human Use (CHMP) recently adopted a positive opinion that recommended the approval of AbbVie's (NYSE: ABBV) Rinvoq for what would be its fifth indication in that market. But what could that mean for the pharma stock AbbVie's sales? So, how much could an indication in the European Union bring in for AbbVie? |
23292.0 | 2022-07-03 00:00:00 UTC | 2 First-Rate ETFs for Stock Dividends | ABBV | https://www.nasdaq.com/articles/2-first-rate-etfs-for-stock-dividends | nan | nan | Exchange-traded funds (ETFs) designed to generate dividend income have become more popular in this market cycle as investors seek investments that can balance out the losses in their portfolios. Dividend-focused ETFs can provide income if you decide to take the distributions, but they can also boost the total return of the ETF when they are reinvested.
An added benefit of income-focused ETFs right now is that they are typically generating higher returns than other types of equity investments, mainly because they invest in large, stable companies that are able to weather the volatility better than most. These two ETFs share that dual benefit of generating solid dividend income and producing market-beating returns.
Image source: Getty Images.
iShares Core High Dividend ETF
The iShares Core High Dividend ETF (NYSEMKT: HDV) tracks an index comprising high-yield dividend stocks -- the Morningstar Dividend Yield Focus Index. It contains stocks that generate high yields while also meeting screens for company quality and financial health. The portfolio consists of 75 stocks, most of them large-cap value names.
The three largest holdings are ExxonMobil (7.1%), Johnson & Johnson (6.7%), and Verizon (6.0%). About 23.6% of the portfolio is in healthcare-sector stocks, while 18.4% is in energy, and 16.6% is in consumer staples.
The ETF has a 12-month trailing yield of 3.12% and recently paid out a distribution of $0.57 in June. Over the past 12 months, it has paid out $3.15 per share in dividends. As for returns, it is essentially flat year to date and up roughly 5% over the past year, outperforming the S&P 500 in both instances. And June was a rough month, bringing down the fund's return.
Through May 31, it boasted a five-year annualized total return of 9.2% and a 10-year annualized return of 10.6%. It also has a low 0.08% expense ratio.
Pacer Global Cash Cows Dividend ETF
The Pacer Global Cash Cows Dividend ETF (NYSEMKT: GCOW) tracks an index called the Pacer Global Cash Cows High Dividend 100 Index. The index is comprised of stocks that meet two screens overlying the FTSE Developed Large-Cap Index, which includes 1,000 stocks.
First, it screens for the companies with the highest free cash yields. Free cash flow is the cash a company has after covering its operating expenses and capital expenditures. The higher its free cash flow, the better off a company is to pay a consistent dividend. Then, from those companies, it screens for the ones with the highest dividend yields.
The index, and thus the ETF, consists of the 100 stocks that best meet these screens, weighted by their dividend yields. Currently, the three largest holdings in the portfolio are AbbVie (2.3%), GlaxoSmithKline (2.2%), and AT&T (2.2%). The largest sector is materials at 19.5%, followed by healthcare at 17.6% and energy at 17.5%.
It has a 12-month trailing yield of 4.38% and paid out a distribution of $0.29 in June. Over the past 12 months, it has paid out $1.45 per share in dividends. The share price is down about 2% year to date and is down about the same over the past 12 months. But as of May 31, it had a five-year annualized return of 7.7%. The expense ratio is slightly higher than the iShares ETF at 0.60%.
These are two of the best-performing broad-market dividend ETFs out there. Given their focus on stable companies with an abundance of cash, they should be able to navigate any choppy seas ahead.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends GlaxoSmithKline, Johnson & Johnson, and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Currently, the three largest holdings in the portfolio are AbbVie (2.3%), GlaxoSmithKline (2.2%), and AT&T (2.2%). Exchange-traded funds (ETFs) designed to generate dividend income have become more popular in this market cycle as investors seek investments that can balance out the losses in their portfolios. These two ETFs share that dual benefit of generating solid dividend income and producing market-beating returns. | Currently, the three largest holdings in the portfolio are AbbVie (2.3%), GlaxoSmithKline (2.2%), and AT&T (2.2%). iShares Core High Dividend ETF The iShares Core High Dividend ETF (NYSEMKT: HDV) tracks an index comprising high-yield dividend stocks -- the Morningstar Dividend Yield Focus Index. Pacer Global Cash Cows Dividend ETF The Pacer Global Cash Cows Dividend ETF (NYSEMKT: GCOW) tracks an index called the Pacer Global Cash Cows High Dividend 100 Index. | Currently, the three largest holdings in the portfolio are AbbVie (2.3%), GlaxoSmithKline (2.2%), and AT&T (2.2%). iShares Core High Dividend ETF The iShares Core High Dividend ETF (NYSEMKT: HDV) tracks an index comprising high-yield dividend stocks -- the Morningstar Dividend Yield Focus Index. Pacer Global Cash Cows Dividend ETF The Pacer Global Cash Cows Dividend ETF (NYSEMKT: GCOW) tracks an index called the Pacer Global Cash Cows High Dividend 100 Index. | Currently, the three largest holdings in the portfolio are AbbVie (2.3%), GlaxoSmithKline (2.2%), and AT&T (2.2%). iShares Core High Dividend ETF The iShares Core High Dividend ETF (NYSEMKT: HDV) tracks an index comprising high-yield dividend stocks -- the Morningstar Dividend Yield Focus Index. And June was a rough month, bringing down the fund's return. |
23293.0 | 2022-07-02 00:00:00 UTC | 3 Stocks You Can Buy and Hold for Decades | ABBV | https://www.nasdaq.com/articles/3-stocks-you-can-buy-and-hold-for-decades | nan | nan | Three little words can make you a lot of money over the long term: Buy and hold. However, the catch is that you must find the right stocks for those three words to work most effectively.
We asked three Motley Fool contributors which stocks you can buy and hold for decades. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Vertex Pharmaceuticals (NASDAQ: VRTX).
Defying the market downturn
Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie is currently defying gravity. The company's shares are up by 13% year to date, while the S&P 500 is down by roughly 20%. Even better, AbbVie has outperformed the broader market in the past three, five, and 10 years.
Can the company maintain this momentum in the decades to come? While no one can predict the details of such a distant future, AbbVie has what any drugmaker needs to perform well over the long term.
It all starts with the company's lineup and pipeline. AbbVie boasts multiple blockbuster products, including its blockbuster immunology medicine Humira. While Humira will face biosimilar competition beginning next year, the company is betting that immunosuppressants Skyrizi and Rinvoq can pick up the slack.
But AbbVie's lineup isn't limited to its immunology portfolio. The company is well diversified across multiple therapeutic areas, including oncology, neuroscience, aesthetics, and eye care.
AbbVie's pipeline is also diversified, with close to 70 ongoing clinical trials. Having a solid pipeline is critical for pharmaceutical companies because, eventually, they all deal with losing patent exclusivity for their key products.
AbbVie has shown that it can successfully navigate patent cliffs. It handled the loss of exclusivity of Humira in Europe in 2018 -- and the impending biosimilar competition in the U.S. -- by launching brand new drugs and completing the key strategic acquisition of Allergan in 2020.
The company's dividend is one more reason to consider buying the stock. AbbVie's yield of 3.66% is well above average. The big drugmaker has grown its dividend payout by 120% over the past five years. It's also a Dividend King, with 50 consecutive years of dividend increases.
Overall, AbbVie looks like a solid business to hold through the current bear market and beyond.
Plenty of cash to fund growth
David Jagielski (Bristol Myers Squibb): If you're planning to hold a stock for decades, you'd probably like to see strong financials, plenty of growth potential, and a dividend payment wouldn't hurt, either. Bristol Myers Squibb (BMS) offers investors all of that. That's why it's a safe investment that anyone can justify putting in their portfolios.
The company has made multiple acquisitions over the years to expand its operations. BMS recently announced plans to acquire Turning Point Therapeutics for $4.1 billion. Of key importance in the deal is acquiring repotrectinib, a lung cancer drug that BMS expects could obtain approval in the U.S. as early as next year.
It made a much larger $13.1 billion acquisition of MyoKardia in 2020, a company that makes medicine to treat cardiovascular diseases. Heart drug mavacamten (Camzyos) was key to that deal, with analysts pegging its peak annual sales at $2 billion by 2026.
Last year, BMS reported a profit of $7 billion on revenue of more than $46 billion. Whether it develops its own products or just grows via acquisitions, the company has plenty of options. And that's because the company generates tons of cash that it can use on acquisitions. Over the past two years combined, Bristol Myers Squibb's operating cash flow totaled more than $30 billion.
During that time, it also spent $7.8 billion on share buybacks and another $8.5 billion on its dividend, which yields around 2.7% annually. Last year, the company raised its dividend by 10.2%, marking the 13th straight year that it has raised its payouts.
Bristol Myers Squibb has an ample cash stockpile and the potential to keep growing over the long haul. That's why this is a stock that you can hold for not just decades but forever.
The best biotech stock on the market
Keith Speights (Vertex Pharmaceuticals): I view Vertex Pharmaceuticals as the best biotech stock on the market right now. And the reasons why make the stock one that investors can buy and hold for decades.
Vertex commands a monopoly in treating the underlying cause of cystic fibrosis (CF). Monopolies don't always last forever, of course, especially in the biopharmaceutical industry. However, the patents for Vertex's top CF drug don't expire until 2037. The company's nearest rivals have programs in phase 2 testing. Even if clinical studies go well, they're years away from even having a chance at competing against Vertex.
In the meantime, Vertex has plenty of room to grow in the CF market. Its current therapies are used by a little over half of CF patients. The company only needs to secure additional reimbursement deals and label expansions to include younger age groups to boost the number of patients significantly.
But what really makes Vertex a great long-term pick is its pipeline. The big biotech hopes to file for regulatory approvals later this year (along with its partner, CRISPR Therapeutics ) for exa-cel. The gene-editing therapy holds the potential to effectively cure sickle cell disease and transfusion-dependent beta-thalassemia.
Vertex is also evaluating another late-stage candidate, VX-147, in treating APOL1-mediated kidney disease. This indication could present a bigger market opportunity for the company than CF. Yet another program should soon advance into late-stage testing. Vertex has high hopes for its non-opioid acute pain drug VX-548.
In addition, Vertex has a promising early-stage program that could pave the way for curing type 1 diabetes. The company also has a growing cash stockpile of $8.2 billion to use in bolstering its pipeline.
I agree with Prosper and David that AbbVie and Bristol Myers Squibb are great stocks to buy and hold for decades. However, I think that Vertex could deliver even bigger gains over the long run.
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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 Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Bristol Myers Squibb, CRISPR Therapeutics, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Vertex Pharmaceuticals (NASDAQ: VRTX). Defying the market downturn Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie is currently defying gravity. Even better, AbbVie has outperformed the broader market in the past three, five, and 10 years. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Vertex Pharmaceuticals (NASDAQ: VRTX). AbbVie boasts multiple blockbuster products, including its blockbuster immunology medicine Humira. Defying the market downturn Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie is currently defying gravity. | I agree with Prosper and David that AbbVie and Bristol Myers Squibb are great stocks to buy and hold for decades. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Vertex Pharmaceuticals (NASDAQ: VRTX). Defying the market downturn Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie is currently defying gravity. | Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Vertex Pharmaceuticals (NASDAQ: VRTX). Defying the market downturn Prosper Junior Bakiny (AbbVie): Pharma giant AbbVie is currently defying gravity. Even better, AbbVie has outperformed the broader market in the past three, five, and 10 years. |
23294.0 | 2022-07-01 00:00:00 UTC | Amgen's Beating the Market -- Here's Why It's a Buy Now | ABBV | https://www.nasdaq.com/articles/amgens-beating-the-market-heres-why-its-a-buy-now | nan | nan | Amgen (NASDAQ: AMGN) is the world's largest biotechnology company by revenue, focusing on using living cells to create a robust product portfolio of biologic medicines to treat serious diseases in several areas -- among them, cardiovascular, oncology, and neuroscience. In 2022, the company's stock has returned over 9% year to date, outperforming the S&P 500's loss of 20%.
A strong first half of the year amid a bear market is a great reason for investors to be interested in the company's stock. But what might truly excite investors is what could be ahead for Amgen in 2023 and beyond.
Dividend increases can provide years of passive income
For starters, Amgen has proven a steady dividend payer. While it's still early days, the biotech is steadily moving toward Dividend Aristocrat status, boasting 11 consecutive years of increasing annual dividends. The current annual payout is $7.76 per share, providing a dividend yield of 3.25% -- and based on the company's growth strategy, investors should see increases to the dividend.
In fact, Amgen's pattern for the past four years has been to increase its dividend by 10% a year. In February, the company outlined its growth strategy, which includes paying out an average of 60% of non-GAAP (adjusted) income to investors through 2030. To do that, it's aiming for mid-single-digit compound annual revenue growth and high-single-digit to low-double-digit income growth.
The company's consistent growth goes beyond its dividends. Over the past 11 years, the company's stock has provided investors with an average annual gain of 15%, with only one-year period in which the stock price went down -- June 2020 to June 2021. Of course, that was when COVID-19 brought on one of the toughest challenges that healthcare companies have ever faced. Between the share price gain and reinvested dividends, a $10,000 investment over the past 10 years would be worth over $30,000 today.
Amgen is ready to grab its share of a $20 billion market
Revenue and dividend growth could improve still further for Amgen in 2023 and beyond. Biosimilar drugs that offer cost-effective alternatives to original top-brand treatments are increasing in use. This market is expected to grow at a massive 40% annualized rate over the next seven years -- from $9.5 billion in 2022 to over $100 billion by 2029.
One of the top drugs up for patent expiration in 2023 is AbbVie's Humira. Under a settlement reached in 2017 between AbbVie and Amgen, Amgen has had to sit on its already FDA-approved potential biosimilar blockbuster, Amjevita, for the U.S. market. But come Jan. 31, the doors will open to Amgen, which should help the company grab a portion of the $20 billion in peak annual sales that AbbVie has enjoyed from Humira.
U.S. competition for Amgen won't be light. AbbVie reached settlements with a total of eight companies with biosimilars that are seeking to grab a share of the Humira sales. But with Amjevita already FDA-approved and available in many countries, it should have a leg up on competition right out of the gate. Amjevita produced sales of $439 billion outside the U.S. in 2021. That number is expected to get a boost of $1 billion by the end of 2023 as a result of the U.S. market opportunity.
Amgen is also acting on a plan that doesn't rely on just one major biosimilar entry. The company's product pipeline includes three biosimilars in late-stage clinical trials being developed to compete with leading drugs in the areas of psoriasis, rare blood diseases, and macular degeneration. Amgen expects to receive updated trial data later this year, with expectations to double its biosimilar revenue from 2021 to 2030, taking it from over $2 billion to over $4 billion annually.
Investors looking to ride out the remainder of the bear market while preparing for a recovery should look to Amgen to boost their portfolio potential. Increasing dividends, a robust pipeline, and a solid growth strategy should be enough to keep the share price moving in the right direction.
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Jeff Little has no position in any of the stocks mentioned. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But come Jan. 31, the doors will open to Amgen, which should help the company grab a portion of the $20 billion in peak annual sales that AbbVie has enjoyed from Humira. One of the top drugs up for patent expiration in 2023 is AbbVie's Humira. Under a settlement reached in 2017 between AbbVie and Amgen, Amgen has had to sit on its already FDA-approved potential biosimilar blockbuster, Amjevita, for the U.S. market. | One of the top drugs up for patent expiration in 2023 is AbbVie's Humira. Under a settlement reached in 2017 between AbbVie and Amgen, Amgen has had to sit on its already FDA-approved potential biosimilar blockbuster, Amjevita, for the U.S. market. But come Jan. 31, the doors will open to Amgen, which should help the company grab a portion of the $20 billion in peak annual sales that AbbVie has enjoyed from Humira. | One of the top drugs up for patent expiration in 2023 is AbbVie's Humira. Under a settlement reached in 2017 between AbbVie and Amgen, Amgen has had to sit on its already FDA-approved potential biosimilar blockbuster, Amjevita, for the U.S. market. But come Jan. 31, the doors will open to Amgen, which should help the company grab a portion of the $20 billion in peak annual sales that AbbVie has enjoyed from Humira. | One of the top drugs up for patent expiration in 2023 is AbbVie's Humira. Under a settlement reached in 2017 between AbbVie and Amgen, Amgen has had to sit on its already FDA-approved potential biosimilar blockbuster, Amjevita, for the U.S. market. But come Jan. 31, the doors will open to Amgen, which should help the company grab a portion of the $20 billion in peak annual sales that AbbVie has enjoyed from Humira. |
23295.0 | 2022-07-01 00:00:00 UTC | The 3 Best Dividend Aristocrat Stocks in the First Half of 2022: Are They Buys Now? | ABBV | https://www.nasdaq.com/articles/the-3-best-dividend-aristocrat-stocks-in-the-first-half-of-2022%3A-are-they-buys-now | nan | nan | Dividend stocks aren't always known for generating sizzling gains. However, investors have flocked to some dividend payers this year as the overall market has tumbled.
Some of the biggest winners are among the elite group of S&P 500 members that have increased their dividends for at least 25 consecutive years. Here are the three best Dividend Aristocrat stocks in the first half of 2022.
1. ExxonMobil
ExxonMobil (NYSE: XOM) ranked as the hands-down biggest winner among Dividend Aristocrats in the first six months of the year. The energy giant has increased its dividend for 39 consecutive years. Its shares skyrocketed more than 40% in the first half of 2022.
That impressive gain is actually a lot lower than it might have been. At its peak in early June, ExxonMobil stock was up more than 70%. There's one key reason for this strong performance: high oil prices.
However, predictions that oil prices could fall have caused many energy stocks, including ExxonMobil, to pull back in recent weeks. Several factors have contributed to expectations of lower prices, including OPEC's decision to boost oil production and the Federal Reserve's interest rate hikes, which could cool down the economy.
2. Chevron
It will probably come as no surprise that another Dividend Aristocrat from the energy sector has delivered big gains so far this year as well. Chevron (NYSE: CVX) has increased its dividend for 35 years in a row. The stock is up close to 25% year to date.
The same tailwinds that have driven ExxonMobil's tremendous performance have also worked to Chevron's benefit. In particular, the Russian invasion of Ukraine and the lead-up to the military conflict spurred an influx of investments in Chevron and other energy stocks.
Like ExxonMobil's, though, Chevron's share price is now well below its high mark set a few weeks ago. At one point, Chevron stock had soared 54% year to date. The same concerns about falling oil prices that caused ExxonMobil's pullback also resulted in Chevron's shares declining.
3. AbbVie
Two sectors have performed the best so far this year: energy and healthcare. We already have a couple of energy stocks as the top Dividend Aristocrats of 2022. The third-place spot belongs to a healthcare stock: AbbVie (NYSE: ABBV). This big drugmaker has increased its dividend for 50 consecutive years. And its shares have jumped around 12% year to date.
AbbVie's strong dividend yield of nearly 3.7% has no doubt attracted some investors. The stock's low valuation (shares currently trade at less than 11 times expected earnings) could also be a draw.
Probably the biggest reason for AbbVie's market-beating performance this year, though, is that the company has chalked up several regulatory wins for its drugs in recent months. Rinvoq picked up U.S. approvals for treating active ankylosing spondylitis and ulcerative colitis, and Skyrizi won U.S. approval for treating Crohn's disease.
Are they buys now?
I think that all three of these high-flying Dividend Aristocrat stocks are still good picks to buy now. My view is that the energy and healthcare sectors are the two best sectors to invest in under the current market dynamics. ExxonMobil, Chevron, and AbbVie stand out as solid choices in those areas.
ExxonMobil and Chevron are the top leaders in the oil and gas industry. While fuel prices might moderate somewhat, I expect that they will remain high. In particular, my expectation is that the European Union's move to ban more than two-thirds of Russian oil by the end of the year will help both of these stocks.
AbbVie faces the loss of U.S. exclusivity for its top-selling drug, Humira, in 2023. However, the company's success in winning new approved indications for Rinvoq and Skyrizi bodes well for its future prospects. I think that Humira's upcoming loss of exclusivity is already largely baked into AbbVie's share price. This is still a good stock to buy, in my view, especially for income-seeking investors.
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Keith Speights has positions in AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Probably the biggest reason for AbbVie's market-beating performance this year, though, is that the company has chalked up several regulatory wins for its drugs in recent months. AbbVie Two sectors have performed the best so far this year: energy and healthcare. The third-place spot belongs to a healthcare stock: AbbVie (NYSE: ABBV). | AbbVie Two sectors have performed the best so far this year: energy and healthcare. The third-place spot belongs to a healthcare stock: AbbVie (NYSE: ABBV). AbbVie's strong dividend yield of nearly 3.7% has no doubt attracted some investors. | 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keith Speights has positions in AbbVie. AbbVie Two sectors have performed the best so far this year: energy and healthcare. | AbbVie Two sectors have performed the best so far this year: energy and healthcare. The third-place spot belongs to a healthcare stock: AbbVie (NYSE: ABBV). AbbVie's strong dividend yield of nearly 3.7% has no doubt attracted some investors. |
23296.0 | 2022-06-30 00:00:00 UTC | SPLG, BRK.B, ABBV, BAC: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/splg-brk.b-abbv-bac%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $205.8 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 281,900,000 to 286,500,000). Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.9%, AbbVie Inc (Symbol: ABBV) is off about 1%, and Bank of America Corp (Symbol: BAC) is lower by about 3.1%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $42.78 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.90. 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 SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.9%, AbbVie Inc (Symbol: ABBV) is off about 1%, and Bank of America Corp (Symbol: BAC) is lower by about 3.1%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $42.78 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.90. 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 SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.9%, AbbVie Inc (Symbol: ABBV) is off about 1%, and Bank of America Corp (Symbol: BAC) is lower by about 3.1%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $42.78 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.90. 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 SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.9%, AbbVie Inc (Symbol: ABBV) is off about 1%, and Bank of America Corp (Symbol: BAC) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $205.8 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 281,900,000 to 286,500,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $42.78 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.90. | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.9%, AbbVie Inc (Symbol: ABBV) is off about 1%, and Bank of America Corp (Symbol: BAC) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $205.8 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 281,900,000 to 286,500,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $42.78 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.90. |
23297.0 | 2022-06-30 00:00:00 UTC | 2 of the Safest Stocks to Buy in a Recession | ABBV | https://www.nasdaq.com/articles/2-of-the-safest-stocks-to-buy-in-a-recession | nan | nan | What's next for the U.S. economy? It's hard to even wager a guess. Soaring oil prices caused by Russia's invasion of Ukraine at the tail end of a global pandemic present an especially unpredictable economic environment.
In uncertain times like these, it helps to own stocks that you can rely on to produce strong cash flows. With products many of us can't live without, these two giants of the healthcare sector have a proven ability to withstand economic downturns. Here's why they're still some of the most recession-proof stocks you can buy now.
1. AbbVie
Shares of AbbVie (NYSE: ABBV) are up by about 13% this year, which is a lot better than the benchmark S&P 500 index, which has lost 20% over the same period. With lots of high-margin revenue from top-selling drugs, there's a good chance that AbbVie stock will remain a safe haven even if the U.S. economy plunges into a deep recession.
The top-selling drug for AbbVie is Humira. Last year, U.S. sales of this anti-inflammatory injection for the treatment of rheumatoid arthritis and psoriasis reached a whopping $17.3 billion.
At least six biosimilar versions of Humira have already been approved by the FDA, and they will begin heavily pressuring U.S. Humira sales in 2023. This isn't going to stop AbbVie from growing, though. In years past, the company plowed Humira profits into the development of new drugs that will offset losses to incoming competition.
This is a great stock to buy and hold now because its post-Humira exclusivity strategy is working. First-quarter sales of Skyrizi, a new psoriasis drug, soared 64% year over year to $940 million. Sales of Rinvoq, a new arthritis drug, rose 54% year over year to $465 million. AbbVie's largest Humira-offsetting investment, Botox, is also well positioned to drive growth indefinitely.
Right now, you can pick up shares of AbbVie for just 10.9 times the company's earnings forecast for 2022. A relatively low multiple limits your downside risk, and so does a dividend that currently offers a 3.7% yield. With Rinvoq, Skyrizi, and Botox to drive earnings growth, investors can look forward to years of dividend raises ahead.
2. Abbott Laboratories
AbbVie spun off from Abbott Laboratories (NYSE: ABT) in 2013 as a way to shield the parent company from the incoming competition for Humira. If you're looking for a reliable dividend, you'll be hard pressed to beat this healthcare stock. Abbott Laboratories recently declared its 394th consecutive quarterly dividend, and it's been 50 years since the company went more than a year without raising the payout at least once. At recent prices, the shares offer a 1.8% yield.
Abbott Laboratories is a healthcare conglomerate, and diagnostics is its largest operating segment. In early 2020, Abbott Laboratories rapidly developed some COVID-19 tests that still command a leading share of the market. In the first quarter, the company reported a whopping $3.3 billion in global COVID-19 testing-related sales.
Abbott expects COVID test sales to decline in the second half of 2022, but that won't stop this diversified conglomerate's bottom line from expanding. One of Abbott's largest growth drivers in the years ahead will be its continuous glucose monitoring device, the Freestyle Libre 3. The FDA cleared it for use in May, so we could see it contribute significantly to total revenue in the second half of 2022.
Abbott's stock price has fallen around 24% this year, and at the moment, you can scoop up shares for just 22.8 times the company's earnings expectation for 2022. The average stock in the S&P 500 index trades at around 20.4 times trailing earnings, and Abbott is growing much faster than average. Despite declining COVID test revenue, first-quarter sales grew 17.5% year over year once adjusted to account for a stronger dollar.
People put off buying cars, clothes, and vacation homes during a recession, but blood glucose monitors are a must-have, regardless of your financial situation. So it's not hard to imagine Abbott's diversified healthcare business growing at a double-digit percentage all the way through a possible recession.
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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 lots of high-margin revenue from top-selling drugs, there's a good chance that AbbVie stock will remain a safe haven even if the U.S. economy plunges into a deep recession. AbbVie Shares of AbbVie (NYSE: ABBV) are up by about 13% this year, which is a lot better than the benchmark S&P 500 index, which has lost 20% over the same period. The top-selling drug for AbbVie is Humira. | AbbVie Shares of AbbVie (NYSE: ABBV) are up by about 13% this year, which is a lot better than the benchmark S&P 500 index, which has lost 20% over the same period. With lots of high-margin revenue from top-selling drugs, there's a good chance that AbbVie stock will remain a safe haven even if the U.S. economy plunges into a deep recession. The top-selling drug for AbbVie is Humira. | AbbVie Shares of AbbVie (NYSE: ABBV) are up by about 13% this year, which is a lot better than the benchmark S&P 500 index, which has lost 20% over the same period. With lots of high-margin revenue from top-selling drugs, there's a good chance that AbbVie stock will remain a safe haven even if the U.S. economy plunges into a deep recession. The top-selling drug for AbbVie is Humira. | This isn't going to stop AbbVie from growing, though. AbbVie Shares of AbbVie (NYSE: ABBV) are up by about 13% this year, which is a lot better than the benchmark S&P 500 index, which has lost 20% over the same period. With lots of high-margin revenue from top-selling drugs, there's a good chance that AbbVie stock will remain a safe haven even if the U.S. economy plunges into a deep recession. |
23298.0 | 2022-06-29 00:00:00 UTC | The Best Stocks to Invest $5,000 in Right Now | ABBV | https://www.nasdaq.com/articles/the-best-stocks-to-invest-%245000-in-right-now-0 | nan | nan | It's nearly impossible to come up with a "best stock to invest in" list that everyone will agree on. That's partly because the stock market brings together people with different goals, investing styles, and income levels. However, beating the market is a pretty good goal.
Let's look at two stocks worth investing $5,000 in right now for investors who want to score market-beating returns in the long run: AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG).
ABBV data by YCharts
1. AbbVie
Shares of AbbVie have easily outperformed the market this year, but the company remains reasonably valued. The drugmaker's forward price-to-earnings (P/E) ratio currently stands at 10.9, which compares favorably to the average of 13.5 for the pharmaceutical industry. At these levels, AbbVie is an outstanding stock to buy considering the strength of its underlying business. The company boasts a lineup of blockbuster medicines, including immunology drugs Humira, Rinvoq, and Skyrizi, and cancer treatments Venclexta and Imbruvica.
True, sales of Humira are still dropping abroad due to biosimilar competition, and generics for this medicine will likely enter the U.S. market next year. But even so, Humira will continue to contribute to AbbVie's top line for at least a couple of years, and the company's other immunology drugs, Rinvoq and Skyrizi, will pick up the slack. Other products in AbbVie's arsenal include its Botox franchise.
All of these can help drive top-line growth for AbbVie even after Humira loses patent protection in the U.S. That's not to mention the dozens of ongoing clinical trials AbbVie is running, at least some of which should lead to brand-new approvals or label expansions.
The company's revenue increased by 4.1% year over year in the first quarter to $13.5 billion. And adjusted net earnings for the quarter increased by 9.3% year over year to $3.16 per share.
One more reason to consider investing in AbbVie's stock is the dividend. AbbVie is part of the exclusive group of Dividend Kings -- having raised its payouts for 50 years when including its time under the wing of medical devices giant Abbott Laboratories. AbbVie's current dividend yield of 4.08% is nearly three times as high as the average S&P 500's yield of 1.37%.
There are likely many more years of dividend increases ahead for this drugmaker and its shareholders. While it's hard to know how the rest of the year will unfold -- AbbVie's shares could drop for various reasons -- those playing the long game don't have to worry too much about the next six months.
AbbVie is a solid pharma stock to buy and hold for a while.
2. Intuitive Surgical
Intuitive Surgical hasn't performed nearly as well as AbbVie this year. Shares of the medical devices company have been southbound for the better part of the past six months. The marketwide issues, including economic and geopolitical tensions, are likely weighing on the company.
Intuitive's rich valuation metrics aren't helping either. Even after the recent slump, its forward P/E is 42.3. That's much higher than the healthcare sector's average of 15.9. Even so, Intuitive Surgical is now about as cheap as it has been in the past three years.
ISRG PE Ratio (Forward) data by YCharts
That's good news for patient investors since the company will likely justify its valuation in the long run. Intuitive Surgical remains a leader in the robotic-assisted surgery (RAS) market thanks to its Da Vinci surgical system. The company held an impressive 80% share of this space in 2020. But traditional open surgeries remain more popular than the minimally invasive procedures that RAS devices allow physicians to perform.
That means there is still a massive runway of growth for Intuitive Surgical, especially considering minimally invasive surgeries come with such perks as less bleeding, fewer incisions, and faster recovery times for patients. The bears might point to the mounting competition in the RAS field from such companies as Medtronic, Johnson & Johnson, and Stryker.
Although Intuitive Surgical's peers will almost certainly make headway in the industry in the coming years, in my view there is more than enough room for these companies to coexist. That's especially true given certain demographic trends, such as the world's aging population. According to the World Health Organization, people 60 and older will make up 22% of the world's population by 2050, compared to just 12% in 2015.
This will increase the need for various medical services since seniors tend to consume these services at a higher rate than the rest of the population. Intuitive Surgical is a great stock to buy to ride this long-term trend.
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Prosper Junior Bakiny has positions in Intuitive Surgical and Johnson & Johnson. The Motley Fool has positions in and recommends Intuitive Surgical. 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. | Let's look at two stocks worth investing $5,000 in right now for investors who want to score market-beating returns in the long run: AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). AbbVie is part of the exclusive group of Dividend Kings -- having raised its payouts for 50 years when including its time under the wing of medical devices giant Abbott Laboratories. ABBV data by YCharts 1. | Let's look at two stocks worth investing $5,000 in right now for investors who want to score market-beating returns in the long run: AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). Intuitive Surgical Intuitive Surgical hasn't performed nearly as well as AbbVie this year. ABBV data by YCharts 1. | Let's look at two stocks worth investing $5,000 in right now for investors who want to score market-beating returns in the long run: AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). AbbVie Shares of AbbVie have easily outperformed the market this year, but the company remains reasonably valued. Intuitive Surgical Intuitive Surgical hasn't performed nearly as well as AbbVie this year. | One more reason to consider investing in AbbVie's stock is the dividend. Intuitive Surgical Intuitive Surgical hasn't performed nearly as well as AbbVie this year. Let's look at two stocks worth investing $5,000 in right now for investors who want to score market-beating returns in the long run: AbbVie (NYSE: ABBV) and Intuitive Surgical (NASDAQ: ISRG). |
23299.0 | 2022-06-29 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-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.
Shares of this drugmaker have returned +3.5% over the past month versus the Zacks S&P 500 composite's -8% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.43 per share, indicating a change of +10.3% 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 $14.02 points to a change of +10.4% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $11.86 indicates a change of -15.4% 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 #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $14.66 billion for the current quarter points to a year-over-year change of +5%. The $59.63 billion and $55.98 billion estimates for the current and next fiscal years indicate changes of +6.1% and -6.1%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $13.54 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $3.16 for the same period compares with $2.95 a year ago.
Compared to the Zacks Consensus Estimate of $13.55 billion, the reported revenues represent a surprise of -0.09%. The EPS surprise was +0.32%.
Over the last four quarters, AbbVie surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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 #4 does suggest that it may underperform the broader market in the near term.
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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. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.4% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $13.54 billion in the last reported quarter, representing a year-over-year change of +4.1%. 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 2.4% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #4 (Sell). 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 2.4% over this period. | For the next fiscal year, the consensus earnings estimate of $11.86 indicates a change of -15.4% from what AbbVie is expected to report a year ago. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.4% over this period. |
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