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23300.0 | 2022-06-29 00:00:00 UTC | Should You Invest in the First Trust Health Care AlphaDEX ETF (FXH)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-first-trust-health-care-alphadex-etf-fxh-2 | nan | nan | Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the First Trust Health Care AlphaDEX ETF (FXH), a passively managed exchange traded fund launched on 05/08/2007.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.38 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. FXH seeks to match the performance of the StrataQuant Health Care Index before fees and expenses.
The StrataQuant Health Care Index employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.61%, making it on par with most peer products in the space.
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.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of 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 -15.49% and is down about -11.85% so far this year and in the past one year (as of 06/29/2022), respectively. FXH has traded between $97.16 and $128.11 during this last 52-week period.
The ETF has a beta of 0.86 and standard deviation of 23.39% for the trailing three-year period, making it a medium risk choice in the space. With about 86 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Health Care AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FXH is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $15.39 billion in assets, Health Care Select Sector SPDR ETF has $37.49 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.
Bottom Line
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First Trust Health Care AlphaDEX ETF (FXH): ETF Research Reports
Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Universal Health Services, Inc. (UHS): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
Vanguard Health Care ETF (VHT): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report It has amassed assets over $1.38 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of 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. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of 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. | Looking at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report You should consider the First Trust Health Care AlphaDEX ETF (FXH), a passively managed exchange traded fund launched on 05/08/2007. |
23301.0 | 2022-06-28 00:00:00 UTC | 2 Buffett Stocks That Outperformed the S&P During the Great Recession | ABBV | https://www.nasdaq.com/articles/2-buffett-stocks-that-outperformed-the-sp-during-the-great-recession | nan | nan | There are two things that Teva Pharmaceutical Industries (NYSE: TEVA) and Amazon (NASDAQ: AMZN) have in common. They've both been investments that Warren Buffett's Berkshire Hathaway held in its portfolio (Amazon is a current holding while Teva was recently sold) , and they both outperformed the S&P 500 during the Great Recession, which began nearly 15 years ago. While the index fell by 38% during that time, the healthcare company climbed 10% in value, and the tech giant's 8% decline was modest by comparison.
If a recession does take place over the next year, could these stocks again prove to be good options to invest in? Let's see.
1. Teva Pharmaceutical
Teva provides patients with generic medications that are much cheaper than brand-name drugs. As patents expire on drugs, that paves the way for companies like Teva to bring cheaper products to market.
One example is AbbVie's rheumatoid arthritis medicine, Humira, which faces patent expiration next year. Teva has a biosimilar product, adalimumab, which could be one of many competitors to enter the market in 2023. And while competition from other generic drugmakers is fierce, Teva's adjusted gross margins have steadily been above 50% over the past few years.
But it hasn't been a smooth ride for the stock. While Teva outperformed the markets 15 years ago, that hasn't been the case of late. Teva has lost 77% of its value in the past five years (while the S&P 500 is up 60% during that time frame). In 2017, the healthcare company recorded a mammoth goodwill impairment charge of $17 billion due to a more challenging U.S. generics market (i.e., its pricing power wasn't nearly as strong).
Plus, the company has been involved in opioid lawsuits, and for the period ended March 31, it incurred $1.1 billion in legal settlements and loss contingencies that resulted in a net loss of $952 million for the quarter on sales of $3.7 billion. And there could more legal expenses related to opioid claims as these recent expenses are only based on updated estimates on how much the company may need to pay out. Teva also notes that it "is frequently subject to litigation."
What that all means is that Teva is a riskier stock today than it was during the Great Recession. Although it has outperformed the markets in 2022 (with a 3% decline versus an 18% drop in the S&P 500), given its legal challenges and lack of consistent profitability, it's not a stock worth taking a chance on right now.
2. Amazon
It may be a surprise that Amazon did as well as it did during the Great Recession given that an economic downturn results in less disposable income and spending. However, with Amazon still in the early stages of its growth back then, the business was likely just doing too well for investors to be all that bearish on it.
In 2007, the company's net sales of $14.8 billion grew by 39%. And in a span of just three years, its top line had more than doubled.
Today, however, it's a much different story. Amazon is a beast that over the trailing 12 months brought in $478 billion in sales. Although it's continuing to expand, it is much further along in its growth than it was 15 years ago. Amazon faces challenges today stemming from expanding too aggressively during the pandemic and potentially overestimating demand, which recently resulted in its first quarterly loss since 2015.
Although the stock looks absurdly cheap over the long haul, in a recession, shares of Amazon could face significant pressure this time around. There are already cracks showing in its valuation with the tech stock declining 30% year to date. And even with the drop, its valuation remains elevated at close to 60 times earnings.
There's still some good value in the stock today, but investors shouldn't expect safety with the tech giant during a recession. If you can stomach what could be a rough year or two for the stock, then it could make for a solid investment to just buy and hold.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One example is AbbVie's rheumatoid arthritis medicine, Humira, which faces patent expiration next year. They've both been investments that Warren Buffett's Berkshire Hathaway held in its portfolio (Amazon is a current holding while Teva was recently sold) , and they both outperformed the S&P 500 during the Great Recession, which began nearly 15 years ago. In 2017, the healthcare company recorded a mammoth goodwill impairment charge of $17 billion due to a more challenging U.S. generics market (i.e., its pricing power wasn't nearly as strong). | One example is AbbVie's rheumatoid arthritis medicine, Humira, which faces patent expiration next year. While Teva outperformed the markets 15 years ago, that hasn't been the case of late. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway (B shares). | One example is AbbVie's rheumatoid arthritis medicine, Humira, which faces patent expiration next year. They've both been investments that Warren Buffett's Berkshire Hathaway held in its portfolio (Amazon is a current holding while Teva was recently sold) , and they both outperformed the S&P 500 during the Great Recession, which began nearly 15 years ago. *Stock Advisor returns as of June 2, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | One example is AbbVie's rheumatoid arthritis medicine, Humira, which faces patent expiration next year. While Teva outperformed the markets 15 years ago, that hasn't been the case of late. There's still some good value in the stock today, but investors shouldn't expect safety with the tech giant during a recession. |
23302.0 | 2022-06-27 00:00:00 UTC | AbbVie: Europe's CHMP Recommends To Approve Upadacitinib To Treat Active Nr-axSpA Patients | ABBV | https://www.nasdaq.com/articles/abbvie%3A-europes-chmp-recommends-to-approve-upadacitinib-to-treat-active-nr-axspa-patients | nan | nan | (RTTNews) - AbbVie (ABBV) announced Monday that the European Medicines Agency's Committee for Medicinal Products for Human Use or CHMP recommended the approval of upadacitinib (RINVOQ) for the treatment of adults with active non-radiographic axial spondyloarthritis or nr-axSpA.
The European Union decision is expected in the third quarter of 2022.
The CHMP positive opinion is based on results from the Phase 3 SELECT-AXIS 2 study showing upadacitinib (RINVOQ 15 mg, once daily) met the primary endpoint of ASAS40 response at week 14 versus placebo.
The recommendation is for the treatment of active 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.
nr-axSpA is part of the axial spondyloarthritis or axSpA spectrum and causes inflammation in the spine, leading to back pain and stiffness.
The CHMP positive opinion is a scientific recommendation for marketing authorization to the European Commission, which will review it and issue a Commission decision that will be valid in all member states of the EU, as well as Iceland, Liechtenstein, Northern Ireland and Norway.
Upadacitinib is currently approved for use in the EU in patients with moderate to severe active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate to severe atopic dermatitis.
The use of upadacitinib in nr-axSpA is not approved in the U.S. or EU. Its efficacy and safety remain under review.
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 Monday that the European Medicines Agency's Committee for Medicinal Products for Human Use or CHMP recommended the approval of upadacitinib (RINVOQ) for the treatment of adults with active non-radiographic axial spondyloarthritis or nr-axSpA. The CHMP positive opinion is based on results from the Phase 3 SELECT-AXIS 2 study showing upadacitinib (RINVOQ 15 mg, once daily) met the primary endpoint of ASAS40 response at week 14 versus placebo. The recommendation is for the treatment of active 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 Monday that the European Medicines Agency's Committee for Medicinal Products for Human Use or CHMP recommended the approval of upadacitinib (RINVOQ) for the treatment of adults with active non-radiographic axial spondyloarthritis or nr-axSpA. The CHMP positive opinion is a scientific recommendation for marketing authorization to the European Commission, which will review it and issue a Commission decision that will be valid in all member states of the EU, as well as Iceland, Liechtenstein, Northern Ireland and Norway. Upadacitinib is currently approved for use in the EU in patients with moderate to severe active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate to severe atopic dermatitis. | (RTTNews) - AbbVie (ABBV) announced Monday that the European Medicines Agency's Committee for Medicinal Products for Human Use or CHMP recommended the approval of upadacitinib (RINVOQ) for the treatment of adults with active non-radiographic axial spondyloarthritis or nr-axSpA. The CHMP positive opinion is a scientific recommendation for marketing authorization to the European Commission, which will review it and issue a Commission decision that will be valid in all member states of the EU, as well as Iceland, Liechtenstein, Northern Ireland and Norway. Upadacitinib is currently approved for use in the EU in patients with moderate to severe active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate to severe atopic dermatitis. | (RTTNews) - AbbVie (ABBV) announced Monday that the European Medicines Agency's Committee for Medicinal Products for Human Use or CHMP recommended the approval of upadacitinib (RINVOQ) for the treatment of adults with active non-radiographic axial spondyloarthritis or nr-axSpA. The European Union decision is expected in the third quarter of 2022. The use of upadacitinib in nr-axSpA is not approved in the U.S. or EU. |
23303.0 | 2022-06-27 00:00:00 UTC | AbbVie's (ABBV) Rinvoq Gets CHMP Nod for New Indication | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-rinvoq-gets-chmp-nod-for-new-indication | nan | nan | AbbVie Inc. ABBV announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) has rendered a positive opinion on, and recommended granting approval to its JAK inhibitor drug — Rinvoq (upadacitinib) — for yet another new indication.
The committee recommended approval of once-daily Rinvoq (15 mg) for the treatment of adult patients with active non-radiographic axial spondyloarthritis (nr-axSpA) who have objective signs of inflammation as indicated by elevated C-reactive protein and/or magnetic resonance imaging, having responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs).
The CHMP’s opinion will now be reviewed by the European Commission ("EC"), with decision from the same expected in the third quarter of 2022.
The latest positive CHMP opinion for Rinvoq was based on data from the phase III SELECT-AXIS 2 study, which met the primary endpoint of ASAS40 response versus placebo at week 14.
Axial spondyloarthritis is a chronic inflammatory disease that affects the spine and consists of two sub-groups — ankylosing spondylitis (“AS”) and nr-axSpA. Rinvoq is already approved in Europe for the AS indication.
Shares of AbbVie have rallied 12.5% so far this year compared with industry’s increase of 5.9%.
Image Source: Zacks Investment Research
Other than the AS indication, Rinvoq is also approved in the EU for several indications — rheumatoid arthritis, active psoriatic arthritis (PsA) and atopic dermatitis. Last month, the CHMP recommended approval of Rinvoq for the treatment of adult patients with moderately to severely active ulcerative colitis (“UC”). A decision from the EC is also expected in the third quarter of 2022.
A potential approval for the UC and nr-axSpA indication will expand the therapeutic indication for Rinvoq in the EU, thereby enabling the drug to treat a broader patient population and drive sales higher in the days ahead.
Rinvoq is currently under review in the United States for treating adult patients with active nr-axSpA. The FDA approved Rinvoq for treating adults with active AS in April 2022.
Rinvoq, along with another blockbuster drug, Skyrizi, remains critical for ABBV to gradually lower its dependence on blockbuster medicine, Humira. Sales of Humira are declining due to biosimilars eroding its yearly international sales. Biosimilars of Humira are expected to be launched in the United States in 2023.
AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the healthcare sector are United Therapeutics Corporation UTHR, Novo Nordisk A/S NVO and Precision BioSciences, Inc. DTIL. While UTHR sports a Zacks Rank #1 (Strong Buy), NVO and DTIL both hold a Zacks Rank #2 (Buy) presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Therapeutics’ earnings has been revised 22.4% upward for 2022 and 14% upward for 2023. The stock has rallied 10.6% year to date.
Earnings of United Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion. UTHR delivered an earnings surprise of 15.34%, on average.
Novo Nordisk’s earnings have been revised 3.9% upward for 2022 and 6.3% upward for 2023. The stock has inched up 0.1% year to date.
Earnings of Novo Nordisk have surpassed estimates in each of the trailing four quarters. NVO delivered an earnings surprise of 7.56%, on average.
Precision BioSciences’ loss per share estimates narrowed 26.2% for 2022 and 42.5% for 2023 in the past 60 days.
Earnings of Precision BioSciences have surpassed estimates in each of the trailing four quarters. DTIL delivered an earnings surprise of 76.15%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ABBV announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) has rendered a positive opinion on, and recommended granting approval to its JAK inhibitor drug — Rinvoq (upadacitinib) — for yet another new indication. Shares of AbbVie have rallied 12.5% so far this year compared with industry’s increase of 5.9%. Rinvoq, along with another blockbuster drug, Skyrizi, remains critical for ABBV to gradually lower its dependence on blockbuster medicine, Humira. | AbbVie Inc. ABBV announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) has rendered a positive opinion on, and recommended granting approval to its JAK inhibitor drug — Rinvoq (upadacitinib) — for yet another new indication. Shares of AbbVie have rallied 12.5% so far this year compared with industry’s increase of 5.9%. Rinvoq, along with another blockbuster drug, Skyrizi, remains critical for ABBV to gradually lower its dependence on blockbuster medicine, Humira. | Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #4 (Sell). AbbVie Inc. ABBV announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) has rendered a positive opinion on, and recommended granting approval to its JAK inhibitor drug — Rinvoq (upadacitinib) — for yet another new indication. Shares of AbbVie have rallied 12.5% so far this year compared with industry’s increase of 5.9%. | AbbVie Inc. ABBV announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) has rendered a positive opinion on, and recommended granting approval to its JAK inhibitor drug — Rinvoq (upadacitinib) — for yet another new indication. Shares of AbbVie have rallied 12.5% so far this year compared with industry’s increase of 5.9%. Rinvoq, along with another blockbuster drug, Skyrizi, remains critical for ABBV to gradually lower its dependence on blockbuster medicine, Humira. |
23304.0 | 2022-06-27 00:00:00 UTC | AbbVie (ABBV) Gains As Market Dips: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-as-market-dips%3A-what-you-should-know-2 | nan | nan | AbbVie (ABBV) closed at $153.14 in the latest trading session, marking a +0.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the drugmaker had gained 1.56% in the past month. In that same time, the Medical sector lost 0.32%, while the S&P 500 lost 0.62%.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $3.43, up 10.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.66 billion, up 5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.02 per share and revenue of $59.63 billion, which would represent changes of +10.39% and +6.11%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. AbbVie is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 10.87. This valuation marks a discount compared to its industry's average Forward P/E of 13.38.
Also, we should mention that ABBV has a PEG ratio of 4.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.09 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $153.14 in the latest trading session, marking a +0.53% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed at $153.14 in the latest trading session, marking a +0.53% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed at $153.14 in the latest trading session, marking a +0.53% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed at $153.14 in the latest trading session, marking a +0.53% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Investors should also note any recent changes to analyst estimates for AbbVie. |
23305.0 | 2022-06-27 00:00:00 UTC | Is AbbVie About To Get A New Blockbuster Drug? | ABBV | https://www.nasdaq.com/articles/is-abbvie-about-to-get-a-new-blockbuster-drug | nan | nan | Last month, AbbVie (NYSE: ABBV) submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for the compound ABBV-951 to treat motor fluctuations in patients with advanced Parkinson's disease.
The pharma company expects to make more submissions to other regulatory authorities in the months ahead for the experimental treatment. Thus, it's worth asking the following question: What will the global sales potential of the drug be if approved by the FDA and other agencies? Let's dig into the Parkinson's disease market to find out.
An encouraging treatment for a challenging condition
Parkinson's disease is a progressive and chronic neurological disorder with symptoms including tremors, muscle rigidity, slow movement, and balance difficulty. The motor symptoms result from the loss of dopamine-producing brain cells, according to AbbVie.
Advanced Parkinson's disease can lead to involuntary movements, which makes a patient's daily activities more difficult. AbbVie says an estimated 50% of Parkinson's disease patients progress to advanced disease within two years of diagnosis, and 80% to 100% of patients reach that stage after 10 years.
The prognosis of Parkinson's disease is characterized by two states: 'off' and 'on'. Patients in an 'off' state have experienced a recurrence of their symptoms like tremor and stiffness. Patients in an 'on' state have achieved control over their symptoms with their treatment. The goal for healthcare providers and their patients is to improve quality of life and slow down the progression of Parkinson's disease.
Patients with advanced Parkinson's disease were randomized into two groups for AbbVie's phase 3 clinical trial that evaluated the efficacy of the drug in controlling motor fluctuations. One group received the experimental drug under the skin and also got oral placebo capsules for the standard of care medicines (carbidopa and levodopa). And the control group received oral capsules containing immediate-release carbidopa and levodopa and an under-the-skin delivery of a placebo ABBV-951 substance.
Though specific data from the phase 3 clinical trials hasn't yet been released, AbbVie noted that the group receiving ABBV-951 and oral placebo capsules for carbidopa and levodopa fared significantly better. This was measured by the amount of 'on' time that each group achieved. These initial results suggest that ABBV-951 could be a game-changing treatment for patients with advanced Parkinson's disease.
Image source: Getty Images.
Billion-dollar annual sales potential
With more than 10 million people living with Parkinson's disease, the already massive market is increasing. Analysts expect the global Parkinson's disease market will grow 8.1% annually, from $4.5 billion in 2018 to $8.4 billion by 2026.
Management teams tend to look through the prism of rose-colored glasses when making forecasts. But this doesn't appear to be the case with AbbVie. The company anticipates that ABBV-951 will achieve $1 billion in peak annual sales potential, making it a blockbuster drug. This implies that ABBV-951 will capture approximately 12% of the global Parkinson's disease market, which seems reasonable for the drug's efficacy and a company with AbbVie's marketing capabilities.
For context, this would represent a respectable 1.7% sales bump over the $59.6 billion in sales that AbbVie is expected to haul in during 2022.
AbbVie is a blue-chip bargain
Aside from ABBV-951, AbbVie has nearly five dozen other compounds in development for a variety of indications as of April. Even with its mainstay medicine Humira losing exclusivity in the U.S. next year, this should help grow AbbVie's revenue and earnings over the long haul.
And at a forward price-to-earnings (P/E) ratio of 10.7, the stock is moderately cheaper than the pharmaceutical industry average of 12.7. All told, AbbVie could be a great stock to buy and hold forever.
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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. | Patients with advanced Parkinson's disease were randomized into two groups for AbbVie's phase 3 clinical trial that evaluated the efficacy of the drug in controlling motor fluctuations. Though specific data from the phase 3 clinical trials hasn't yet been released, AbbVie noted that the group receiving ABBV-951 and oral placebo capsules for carbidopa and levodopa fared significantly better. Last month, AbbVie (NYSE: ABBV) submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for the compound ABBV-951 to treat motor fluctuations in patients with advanced Parkinson's disease. | Patients with advanced Parkinson's disease were randomized into two groups for AbbVie's phase 3 clinical trial that evaluated the efficacy of the drug in controlling motor fluctuations. Though specific data from the phase 3 clinical trials hasn't yet been released, AbbVie noted that the group receiving ABBV-951 and oral placebo capsules for carbidopa and levodopa fared significantly better. Last month, AbbVie (NYSE: ABBV) submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for the compound ABBV-951 to treat motor fluctuations in patients with advanced Parkinson's disease. | Last month, AbbVie (NYSE: ABBV) submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for the compound ABBV-951 to treat motor fluctuations in patients with advanced Parkinson's disease. AbbVie says an estimated 50% of Parkinson's disease patients progress to advanced disease within two years of diagnosis, and 80% to 100% of patients reach that stage after 10 years. Patients with advanced Parkinson's disease were randomized into two groups for AbbVie's phase 3 clinical trial that evaluated the efficacy of the drug in controlling motor fluctuations. | AbbVie says an estimated 50% of Parkinson's disease patients progress to advanced disease within two years of diagnosis, and 80% to 100% of patients reach that stage after 10 years. The company anticipates that ABBV-951 will achieve $1 billion in peak annual sales potential, making it a blockbuster drug. Last month, AbbVie (NYSE: ABBV) submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for the compound ABBV-951 to treat motor fluctuations in patients with advanced Parkinson's disease. |
23306.0 | 2022-06-27 00:00:00 UTC | 5 Best Dividend Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/5-best-dividend-stocks-to-buy-now | nan | nan | In this video, I will be talking about five dividend-paying companies that you might want to add to your portfolio. Dividend stocks can provide stability during rough times like today. Intel (NASDAQ: INTC) is currently the only one in my portfolio, but I might add more in these coming months.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of June 24, 2022. The video was published on June 26, 2022.
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Neil Rozenbaum has positions in Intel. The Motley Fool has positions in and recommends Intel, Qualcomm, and Starbucks. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $47.50 calls on Coca-Cola, short January 2023 $57.50 puts on Intel, and short July 2022 $85 calls on Starbucks. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the full insights, do watch the video, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel. | After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Neil Rozenbaum has positions in Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $47.50 calls on Coca-Cola, short January 2023 $57.50 puts on Intel, and short July 2022 $85 calls on Starbucks. | 10 stocks we like better than Intel 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 Neil Rozenbaum has positions in Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $47.50 calls on Coca-Cola, short January 2023 $57.50 puts on Intel, and short July 2022 $85 calls on Starbucks. | The video was published on June 26, 2022. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Neil Rozenbaum has positions in Intel. The Motley Fool has positions in and recommends Intel, Qualcomm, and Starbucks. |
23307.0 | 2022-06-26 00:00:00 UTC | 4 Top Dividend Stocks To Watch Amid Recession Concerns | ABBV | https://www.nasdaq.com/articles/4-top-dividend-stocks-to-watch-amid-recession-concerns | nan | nan | Check Out These Dividend Stocks For Your Late June Watchlist
As the stock market appears to be attempting a recovery, there remains plenty of uncertainty. Thus, dividend stocks could be on the minds of investors. For one, companies that can pay dividends to their shareholders are often those with a track record of profitability. Many of them are likely to continue paying dividends for the foreseeable future. What’s more, some of these companies with a long history of bumping their annual dividend can also offer investors some peace of mind. When a firm manages to increase its dividends even through a pandemic, a war, or a recession, it says a lot about the company’s financial standing and commitment to its shareholders.
A prime example of a dividend stock would be AbbVie (NYSE: ABBV). The pharmaceutical company’s board of directors on Thursday declared a quarterly cash dividend of $1.41 per share. Since the company’s establishment in 2013, AbbVie has raised its dividend by more than 250%. As it stands, ABBV stock now yields a 3.8% annual dividend yield. However, it is also worth mentioning that not all dividend stocks are great investments. With that in mind, here’s a list of top dividend stocks you might want to watch in the stock market right now.
Dividend Stocks To Watch In The Stock Market Today
Darden Restaurants Inc. (NYSE: DRI)
Merck & Co. Inc. (NYSE: MRK)
FedEx Corporation (NYSE: FDX)
The J.M. Smucker Company (NYSE: SJM)
Darden Restaurants
The first dividend stock we have today is Darden Restaurants. The company is a multi-brand restaurant operator that owns two fine dining chains, Eddie V’s and The Capital Grille. Not only that, as Darden also owns six casual dining restaurant chains. These would include Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House, and Cheddar’s Scratch Kitchen. For a sense of scale, the company has over 1,800 restaurant locations and more than 175,000 employees, making it one of the world’s largest full-service restaurant companies. Currently, Darden boasts an annual dividend yield of 3.8%.
On Thursday, the company posted its financials for its fiscal 2022 fourth quarter which beat Wall Street estimates on revenue and earnings. Diving in, Darden posted a revenue of $2.6 billion, increasing by 14.2% and exceeding estimates of $2.54 billion. Darden owes this to an 11.7% increase in blended same-restaurant sales and sales from 33 net new restaurants. As for its profits, Darden reported earnings of $2.24 per share, topping the consensus estimate of $2.21 per share. Additionally, the company also declared a quarterly dividend of $1.21 per share, a 10% jump from its previous quarter. All things considered, would you be interested in buying DRI stock?
Source: TD Ameritrade TOS
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Merck
Next up, we have Merck, a multinational pharmaceutical company. It has been a leader in the industry for over 130 years and has brought many life-saving medicines and vaccines to millions of people. It also continues to be at the forefront of research to prevent and treat diseases that threaten both people and animals. This would include cancer, infectious diseases, and emerging animal diseases. Over the past year, MRK stock has risen by about 20%. Besides, Merck offers an annual dividend yield of 3% and in late May, it declared a quarterly dividend of $0.69.
Earlier this week, the Wall Street Journal reported that Merck may be eyeing the acquisition of biotech firm Seagen (NASDAQ: SGEN), citing people familiar with the matter. And now, it would seem that talks have picked up the pace and the companies are scheduled to meet to discuss matters over. In any case, this acquisition could make a lot of sense for Merck as it would beef up its cancer-drug portfolio considerably. If the deal were to happen, it would be one of the largest takeovers of the year, given Seagen’s market value of approximately $28 billion. However, it was also cautioned that the deal may be tricky to pull off due to potential regulatory challenges. As the story unfolds, will you be keeping an eye on MRK stock?
Source: TD Ameritrade TOS
FedEx
FedEx is a multinational conglomerate that focuses on e-commerce, transportation, and services. In brief, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively, and innovating digitally under the respected FedEx brand. It also strives to achieve carbon-neutral operations by 2040. As it stands, FedEx now offers an annual dividend yield of 2.0%. On June 14, the company increased its quarterly dividend by 53.3% to $1.15.
On Thursday, FedEx reported its fourth-quarter financials for fiscal 2022. For starters, FedEx brought in a revenue of $24.4 billion, up from $22.6 billion in 2021. Moving on, it posted a quarterly net income of $1.8 billion, or $6.87 a share. To point out, this represents an increase from 2021’s net income of $1.36 billion or $5.01 per share. Looking ahead, CEO Raj Subramaniam added, “Our foundational investments have set the stage for a strong fiscal 2023. As we move forward, our focus will be on revenue quality and lowering our cost to serve. I am honored to lead our dedicated global team who enable FedEx to lead the industry from a position of strength.” Given the positive sentiment, does FDX stock have a spot on your watchlist?
Source: TD Ameritrade TOS
[Read More] Best Social Media Stocks To Buy Now? 4 To Watch This Week
J.M. Smucker
Finally, we have The J.M. Smucker Company, also known simply as Smucker. The company’s business units can be segmented into consumer foods, pet foods, and coffee. Its flagship brand, Smucker’s, produces fruit preserves, peanut butter, syrups, and more. Besides its namesake brand, the company also has other food and coffee brands such as Jif, Knott’s Berry Farm, Folgers, and more under its brand portfolio. Earlier this month, the company posted its financial results for the fourth quarter of its 2022 fiscal year ending April 30, 2022.
Jumping right in, the company reported net sales of $2.03 billion for the quarter. Compared to the same period last year, this is an increase of $113.6 million or 6%. The company saw its U.S. retail pet food and retail coffee sales rise by 6% and 11% respectively. As for its earnings, Smucker brought in a net income of $202.1 million, a commendable increase of 37% from a year ago. Accordingly, its adjusted earnings per share were $2.23, up by 18% year-over-year. In the same report, the company also provided its fiscal year 2023 outlook. Namely, it expects net sales to grow by 3.5% to 4.5%. With this solid quarter in the books, should you add SJM stock to your portfolio?
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. | A prime example of a dividend stock would be AbbVie (NYSE: ABBV). Since the company’s establishment in 2013, AbbVie has raised its dividend by more than 250%. As it stands, ABBV stock now yields a 3.8% annual dividend yield. | A prime example of a dividend stock would be AbbVie (NYSE: ABBV). Since the company’s establishment in 2013, AbbVie has raised its dividend by more than 250%. As it stands, ABBV stock now yields a 3.8% annual dividend yield. | A prime example of a dividend stock would be AbbVie (NYSE: ABBV). Since the company’s establishment in 2013, AbbVie has raised its dividend by more than 250%. As it stands, ABBV stock now yields a 3.8% annual dividend yield. | A prime example of a dividend stock would be AbbVie (NYSE: ABBV). Since the company’s establishment in 2013, AbbVie has raised its dividend by more than 250%. As it stands, ABBV stock now yields a 3.8% annual dividend yield. |
23308.0 | 2022-06-26 00:00:00 UTC | 3 Top Dividend Stocks for Generating Passive Income | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-for-generating-passive-income | nan | nan | You can work for money. But you can also have your money work for you. One great way to make passive income is to invest in dividend stocks.
We asked three Motley Fool contributors to identify top dividend stocks for generating passive income. Here's why they selected AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Merck (NYSE: MRK).
Let this Dividend King serve you
Keith Speights (AbbVie): Only the most elite dividend stocks become Dividend Kings. AbbVie ranks as a member of this exclusive club with 50 consecutive years of dividend increases.
Stocks belonging to dividend royalty don't always pay the most attractive dividend yields. However, AbbVie is an exception. Its dividend yield currently tops 3.7%.
Even better, the company has delivered solid gains for shareholders. In 2021, the stock soared 26%. So far this year, AbbVie is trouncing the market with its shares up around 12%.
As icing on the cake, the stock is also a bargain. Its shares trade at a little over 10 times expected earnings.
Sure, AbbVie faces some challenges in the near future. Humira, the company's top-selling drug, loses U.S. patent exclusivity in 2023. This will make a big dent in AbbVie's revenue: Humira contributed around 37% of total sales last year.
The good news is that AbbVie expects to quickly return to growth. It already has two newer successors to Humira with Rinvoq and Skyrizi. AbbVie's acquisition of Allergan in 2020 also added several growth drivers to its lineup, notably including the Botox franchise and antipsychotic drug Vraylar.
Few stocks offer the combination of dividends, growth, and value that AbbVie does. The stock appears to be a great candidate for investors seeking to generate passive income.
A safe and growing dividend
David Jagielski (Gilead Sciences): If you're an income investor, you often have to choose between whether you want a safe dividend, a high payout, or a growing yield. That's not the case with Gilead Sciences. The big biotech, which generates the bulk of its revenue through HIV treatments, just might be the ideal passive income investment to own right now.
Due to the bear market, Gilead stock is down around 15% this year. However, it's still outperforming the overall market. As a result of Gilead's decline, though, its dividend yield has risen to nearly 4.7%.
Gilead's payout ratio is a bit high at around 80%. But on a cash flow basis, the dividend is sound. During the first three months of the year, it generated $1.6 billion in free cash flow. It spent $945 million on dividend payments and still had sufficient room to buy back $352 million in common stock. The company has also been consistently increasing its dividend payments since 2016, with its most recent hike a year-over-year increase of 2.8%.
Gilead has posted a profit in each of the past five years, performing well even during the pandemic. Although total revenue rose just 3% in the first quarter of 2022 to $6.6 billion, the company's oncology sales increased by 60% year over year while top-selling HIV drug Biktarvy delivered 18% growth.
Don't look for jaw-dropping growth from Gilead in the near future. However, it just might be one of the safest dividend stocks around.
A solid dividend pick at a reasonable price
Prosper Junior Bakiny (Merck): The stock market still faces heightened volatility and geopolitical issues. Things could get worse if, as some analysts have predicted, an economic recession is on its way. In this environment, strong dividend-paying stocks can help investors smooth out market losses and generate some much-needed income on the side. But why pick a pharmaceutical giant like Merck?
For one, the company's business is solid. Merck develops pharmaceutical products for humans and animals and is a leader in both fields. Its lineup most notably features Keytruda, a cancer drug that continues to earn new indications even after notching more than two dozen regulatory wins. Other key products for the company include HPV vaccines Gardasil and Gardasil 9.
Merck boasts 29 programs in its late-stage pipeline alone. Assuming a modest 25% success rate, the company should be able to earn at least seven regulatory approvals from its current late-stage pipeline. Of course, the company has many more programs in phase 1 and phase 2 clinical trials. Merck's ability to get new products on the markets (and earn label expansions for existing drugs) is a key reason it can continue to perform well.
Further, most patients will keep taking lifesaving drugs even during tough economic times. These factors make Merck an excellent stock to consider buying in the current environment.
For those willing to hold onto the company's shares, their patience will pay dividends -- literally. Merck currently offers a yield of around 3% -- much higher than the S&P 500's average of 1.38%. With a payout ratio of close to 50%, Merck still has plenty of room for dividend increases.
Lastly, the company's current forward price-to-earnings is 12, compared to the industry's average of 13.5. At the current valuation, this fast-growing dividend stock appears to be a smart pick.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's acquisition of Allergan in 2020 also added several growth drivers to its lineup, notably including the Botox franchise and antipsychotic drug Vraylar. Here's why they selected AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Merck (NYSE: MRK). Let this Dividend King serve you Keith Speights (AbbVie): Only the most elite dividend stocks become Dividend Kings. | Here's why they selected AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Merck (NYSE: MRK). Let this Dividend King serve you Keith Speights (AbbVie): Only the most elite dividend stocks become Dividend Kings. AbbVie ranks as a member of this exclusive club with 50 consecutive years of dividend increases. | Let this Dividend King serve you Keith Speights (AbbVie): Only the most elite dividend stocks become Dividend Kings. Here's why they selected AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Merck (NYSE: MRK). AbbVie ranks as a member of this exclusive club with 50 consecutive years of dividend increases. | Here's why they selected AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Merck (NYSE: MRK). Let this Dividend King serve you Keith Speights (AbbVie): Only the most elite dividend stocks become Dividend Kings. AbbVie ranks as a member of this exclusive club with 50 consecutive years of dividend increases. |
23309.0 | 2022-06-24 00:00:00 UTC | Daily Dividend Report: ABBV,EIX,DTE,BFS,BKSC | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-abbveixdtebfsbksc | nan | nan | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. The cash dividend is payable August 15, 2022, to stockholders of record at the close of business on July 15, 2022. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
The Board of Directors of Edison International yesterday declared a quarterly common stock dividend of $0.70 per share, payable on July 31, 2022, to shareholders of record on July 5, 2022.
The DTE Energy Board of Directors declared a $0.885 per share dividend on its common stock payable Oct. 15, 2022 to shareholders of record at the close of business Sept. 19, 2022. This continues DTE Energy's consistent dividend history, having issued a cash dividend for more than 100 years.
Saul Centers has declared a quarterly dividend of $0.59 per share on its common stock, to be paid on July 29, 2022, to holders of record on July 15, 2022. The common dividend represents a $0.02 per share, 3.51%, increase over the amount paid in the previous quarter and a $0.04 per share, 7.27%, increase over the amount paid in the prior year's comparable quarter.
Today, the Board of Directors of Bank of South Carolina, the parent company for The Bank of South Carolina, declared a quarterly cash dividend of $0.17 per share to shareholders of record July 5, 2022, payable July 29, 2022. This represents the 131st quarterly cash dividend paid to shareholders.
VIDEO: Daily Dividend Report: ABBV,EIX,DTE,BFS,BKSC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. |
23310.0 | 2022-06-23 00:00:00 UTC | Got $1,000? Buy These 2 Ultra-High-Yield Dividend Stocks on the Dip | ABBV | https://www.nasdaq.com/articles/got-%241000-buy-these-2-ultra-high-yield-dividend-stocks-on-the-dip | nan | nan | Sometimes a stock falls to levels so low, it almost doesn't matter what an investor's budget is -- they have to buy at least a few shares to take advantage of the situation. With the market's retreat lately, a great many stocks are at, or teasing, their recent low-water marks.
This presents some nearly irresistible opportunities for investors, particularly if they like high-yielding dividends. As prices go down, yields go up, and that dynamic has made both Target (NYSE: TGT) and AbbVie (NYSE: ABBV) excellent choices for bargain-hunters searching for quality companies with yields well above the current 1.7% average of S&P 500 index stocks.
1. Target
For quite some time, Target was the retail stock that could do no wrong. The company repeatedly posted revenue growth and strong profitability, even through the pandemic, and there was little indication of serious trouble. That all came to a crashing halt with its first-quarter 2022 results. The company missed badly on the bottom line due largely to ballooning inflation and inventory issues.
Neither of these difficulties will melt away quickly, but at the same time, we know they're not going to linger forever.
The aggressive discounting Target has been doing to clear its excess inventory will continue to dampen its profit margins, but eventually, the company will get inventory back to its typical, more reasonable, levels. Inflation might prove to be a more stubborn headwind. However, let's keep in mind that Russia's apparently unsustainable war in Ukraine and the (hopefully fading) pandemic were two big drivers of the ongoing supply chain disruptions that are fueling that inflation.
With an improving macroeconomic situation at its back, Target should return to delivering the envy-of-the-retail-sector profit margins that drew investors to its stock in recent years. At the moment, though, its forward P/E has shriveled to barely above 16, a very low number considering how effectively management cranked profitability higher in preceding quarters.
Earlier this month, to help maintain its Dividend King status, Target raised its payout by 20% -- a gutsy move given the crushing disappointment of its Q1 earnings.
Management is smart and careful, and I don't think they'd pull such a lever simply to keep shareholders on board, or to keep the renown conferred with Dividend King status. I feel they're confident the company's fundamentals will rebound. As they do, folks piling into the stock at current share prices will enjoy a 3.1% dividend yield. They should also have the pleasure of seeing that depressed stock rise again.
2. AbbVie
Another Dividend King with a tarnished crown is pharmaceutical sector giant AbbVie. The company currently has the distinction of being the entity behind the world's best-selling drug: Humira.
The big catch with Humira, though, is that its patent protection expires next year, so the Mississippi River-sized revenue stream that it has historically produced will thin out quickly as it starts competing with biosimilars.
Yet AbbVie is far more than just one product. Two of its more recently approved drugs -- Skyrizi and Rinboq, developed as replacements for Humira -- together brought in over $4.5 billion in sales last year. That amounted to growth of more than 80% over the 2020 figure. Smart acquisitions, like that of Botox maker Allergan in 2020, have also beefed up its portfolio.
So the AbbVie growth train keeps barreling along. Thanks to those blockbusters and the acquisitions, its revenue nearly doubled from 2017 to 2021, landing at over $56 billion. Net profit, meanwhile, more than doubled over that stretch to almost $11.5 billion.
Like the best high-potential drug developers, AbbVie has a pipeline that is wide and deep. The company has a dizzying number of programs covering a range of maladies. Oncology is a particular strength, and the company is active in other high-interest areas such as immunology, neuroscience, and virology.
With the erosion of its share price -- more due to general market gloominess than anything else -- AbbVie is now a high-yield superstar in the healthcare sector. Its quarterly payout of $1.41 amounts to a yield of over 4%, trouncing even the bluest of the blue chip stocks in other industries.
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*Stock Advisor returns as of June 2, 2022
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As prices go down, yields go up, and that dynamic has made both Target (NYSE: TGT) and AbbVie (NYSE: ABBV) excellent choices for bargain-hunters searching for quality companies with yields well above the current 1.7% average of S&P 500 index stocks. AbbVie Another Dividend King with a tarnished crown is pharmaceutical sector giant AbbVie. Yet AbbVie is far more than just one product. | As prices go down, yields go up, and that dynamic has made both Target (NYSE: TGT) and AbbVie (NYSE: ABBV) excellent choices for bargain-hunters searching for quality companies with yields well above the current 1.7% average of S&P 500 index stocks. AbbVie Another Dividend King with a tarnished crown is pharmaceutical sector giant AbbVie. Yet AbbVie is far more than just one product. | As prices go down, yields go up, and that dynamic has made both Target (NYSE: TGT) and AbbVie (NYSE: ABBV) excellent choices for bargain-hunters searching for quality companies with yields well above the current 1.7% average of S&P 500 index stocks. AbbVie Another Dividend King with a tarnished crown is pharmaceutical sector giant AbbVie. Yet AbbVie is far more than just one product. | AbbVie Another Dividend King with a tarnished crown is pharmaceutical sector giant AbbVie. As prices go down, yields go up, and that dynamic has made both Target (NYSE: TGT) and AbbVie (NYSE: ABBV) excellent choices for bargain-hunters searching for quality companies with yields well above the current 1.7% average of S&P 500 index stocks. Yet AbbVie is far more than just one product. |
23311.0 | 2022-06-22 00:00:00 UTC | Noteworthy Wednesday Option Activity: SPLK, C, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-splk-c-abbv | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Splunk Inc (Symbol: SPLK), where a total volume of 10,501 contracts has been traded thus far today, a contract volume which is representative of approximately 1.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.9% of SPLK's average daily trading volume over the past month, of 2.3 million shares. Especially high volume was seen for the $65 strike put option expiring July 01, 2022, with 1,200 contracts trading so far today, representing approximately 120,000 underlying shares of SPLK. Below is a chart showing SPLK's trailing twelve month trading history, with the $65 strike highlighted in orange:
Citigroup Inc (Symbol: C) saw options trading volume of 103,163 contracts, representing approximately 10.3 million underlying shares or approximately 44.7% of C's average daily trading volume over the past month, of 23.1 million shares. Particularly high volume was seen for the $47 strike put option expiring July 15, 2022, with 8,406 contracts trading so far today, representing approximately 840,600 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $47 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,693 contracts, representing approximately 2.9 million underlying shares or approximately 44.7% of ABBV's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $160 strike call option expiring August 19, 2022, with 1,454 contracts trading so far today, representing approximately 145,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange:
For the various different available expirations for SPLK options, C options, or ABBV 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 $160 strike call option expiring August 19, 2022, with 1,454 contracts trading so far today, representing approximately 145,400 underlying shares of ABBV. Particularly high volume was seen for the $47 strike put option expiring July 15, 2022, with 8,406 contracts trading so far today, representing approximately 840,600 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $47 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,693 contracts, representing approximately 2.9 million underlying shares or approximately 44.7% of ABBV's average daily trading volume over the past month, of 6.4 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for SPLK options, C options, or ABBV options, visit StockOptionsChannel.com. | Particularly high volume was seen for the $47 strike put option expiring July 15, 2022, with 8,406 contracts trading so far today, representing approximately 840,600 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $47 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,693 contracts, representing approximately 2.9 million underlying shares or approximately 44.7% of ABBV's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $160 strike call option expiring August 19, 2022, with 1,454 contracts trading so far today, representing approximately 145,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for SPLK options, C options, or ABBV options, visit StockOptionsChannel.com. | Particularly high volume was seen for the $47 strike put option expiring July 15, 2022, with 8,406 contracts trading so far today, representing approximately 840,600 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $47 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,693 contracts, representing approximately 2.9 million underlying shares or approximately 44.7% of ABBV's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $160 strike call option expiring August 19, 2022, with 1,454 contracts trading so far today, representing approximately 145,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for SPLK options, C options, or ABBV options, visit StockOptionsChannel.com. | Particularly high volume was seen for the $47 strike put option expiring July 15, 2022, with 8,406 contracts trading so far today, representing approximately 840,600 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $47 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,693 contracts, representing approximately 2.9 million underlying shares or approximately 44.7% of ABBV's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $160 strike call option expiring August 19, 2022, with 1,454 contracts trading so far today, representing approximately 145,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for SPLK options, C options, or ABBV options, visit StockOptionsChannel.com. |
23312.0 | 2022-06-22 00:00:00 UTC | What Stocks To Invest In Today? 3 Pharmaceutical Stocks To Watch | ABBV | https://www.nasdaq.com/articles/what-stocks-to-invest-in-today-3-pharmaceutical-stocks-to-watch | nan | nan | 3 Pharmaceutical Stocks For Your Watchlist Right Now
For investors wondering what are the best stocks to invest in today, pharmaceutical stocks would be an interesting play. On the whole, this part of the stock market is home to companies of varying sizes and specializations. The likes of which serve to aid people across the globe experiencing various illnesses and diseases. Pair this with the current uncertainty in markets and it would not be too surprising to see investors considering pharmaceutical stocks today.
Take Ikena Oncology (NASDAQ: IKNA) for instance. All in all, the company just announced today that the Food and Drug Administration (FDA) has granted a Fast Track designation for IK-930. This designation is to accelerate the development and review of drugs targeted for serious conditions with unmet medical needs. In particular, the IK-930 is a novel TEAD inhibitor which targets the HIPPO signaling pathway, in patients with unresectable NF2-deficient malignant pleural mesothelioma (MPM). In essence, MPM is a rare type of cancer that resides in the lungs and chest cavity.
At the same time, relatively larger firms like BioMarin Pharmaceutical (NASDAQ: BMRN) are also making headlines. As of yesterday, the Ministry of Health, Labor and Welfare of Japan is granting approval for the registration of BioMarin’s Voxzogo treatment. In brief, Voxzogo is a modified C-type natriuretic peptide that directly targets the underlying pathophysiology of achondroplasia. Furthermore, Voxzogo will be used for injection to treat achondroplasia in children of all ages. If all this has you keen on pharmaceutical stocks, here are three more to watch in the stock market today.
Pharmaceutical Stocks To Watch Today
AbbVie Inc. (NYSE: ABBV)
ANI Pharmaceuticals Inc. (NASDAQ: ANIP)
Merck & Co. Inc. (NYSE: MRK)
AbbVie Inc.
AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT). Accordingly, the company discovers, develops, and commercializes advanced therapies that continue to improve the quality of life and save millions of lives. Today, it has about 50,000 employees working all around the globe to help patients. On Tuesday, the company announced an exciting piece of news.
Diving in, it announced that it has submitted a supplemental New Drug Application (sNDA) for atogepant to the FDA. Atogepant supports the preventive treatment of chronic migraine in adults. If approved, atogepant would be the first gepant (oral calcitonin gene-related peptide receptor antagonist) for the broad indication of the preventive treatment of migraine, including episodic and chronic. “Having one oral medication to treat both episodic and chronic migraine would be an important advancement for health care providers and patients,” said Michael Gold, M.D., therapeutic area head, neuroscience development, AbbVie. “This sNDA approval would also diversify AbbVie’s migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine. No two migraine patients are alike, so having multiple treatment options with unique mechanisms of action is critical.”
The company seems to be firing on all cylinders, as it had received FDA approval for Risankizumab-rzaa last week. It is the first and only specific interleukin-23 (IL-23) inhibitor for the treatment of adults with moderately to severely active Crohn’s disease. In two induction and one maintenance clinical trial, Risankizumab-rzaa demonstrates significant improvements in endoscopic response. All things considered, is ABBV stock worth watching right now?
Source: TD Ameritrade TOS
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ANI Pharmaceuticals Inc.
Next, we have ANI Pharmaceuticals, a diversified biotech company that serves patients by developing and manufacturing high-quality branded and generic prescription pharmaceutical products. It also focuses on delivering sustainable growth by building on its successful Purified Controphin Gel franchise. The company has a fully automated solid dose packaging line that offers a complete assembly from bottle unscrambling to bundling.
Getting into today’s news, ANI stock could be in focus following the company’s latest FDA nod. Namely, ANI’s Clorazepate Dipotassium tablets now have FDA approval for the Abbreviated New Drug Application (ANDA). With an ANDA, the company can now manufacture and market the treatment. According to CEO Nikhil Lalwani, this serves to strengthen ANI’s base business. Overall, Lalwani also says, “The imminent launch and commercialization of Clorazepate Dipotassium Tablets is another example of our ongoing commitment to ensuring that patients in need have access to important therapeutics.”
On June 21, 2022, the company announced a collaboration with Veeva Systems (NYSE: VEEV) to define and operationalize data-driven commercial strategies for ANI’s new rare disease business unit. Through this collaboration, ANI will have a stronger digital foundation that supports its patient-centric approach to commercialization. With that being said, is ANI stock a top pharmaceutical stock to consider investing in?
Source: TD Ameritrade TOS
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Merck & Co. Inc.
Last but not least, we have the global biopharmaceutical company, Merck. In short, the company offers health solutions through its prescription medicines, vaccines, biological therapies, and animal health products. In particular, the company’s two key operating segments are Pharmaceutical and Animal Health. All in all, the Merck’s Pharmaceutical segment includes human health pharmaceuticals and vaccine products. Meanwhile, the Animal Health segment creates, manufactures, and sells a variety of veterinary pharmaceutical and vaccination products.
Today, Merck has announced that the FDA has approved an expanded indication for Vaxneuvance. Also known as the Pneumococcal 15-valent Conjugate Vaccine, it is used for the prevention of pneumococcal disease in infants and children aged 6 weeks to 17 years. This FDA approval was based on data from seven randomized, double-blind clinical studies. In essence, a four-dose pediatric series of Vaxneuvance was found to be non-inferior to the 13-valent pneumococcal conjugate vaccine.
Yesterday, Merck and AstraZeneca (NASDAQ: AZN) announced that the results of the Phase 3 PROpel trial have been published in NEJM Evidence. In conclusion, the trial results showed that Lynparza in combination with abiraterone plus prednisone significantly improved radiographic progression-free survival (rPFS). This is compared to the abiraterone plus prednisone, the standard of care, as a first-line treatment for patients with metastatic castration-resistant prostate cancer (mCRPC) with or without HRR gene mutations. Considering the positive outlook, would MRK stock be worth adding to your watchlist?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “Having one oral medication to treat both episodic and chronic migraine would be an important advancement for health care providers and patients,” said Michael Gold, M.D., therapeutic area head, neuroscience development, AbbVie. Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) ANI Pharmaceuticals Inc. (NASDAQ: ANIP) Merck & Co. Inc. (NYSE: MRK) AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT). “This sNDA approval would also diversify AbbVie’s migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine. | Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) ANI Pharmaceuticals Inc. (NASDAQ: ANIP) Merck & Co. Inc. (NYSE: MRK) AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT). “This sNDA approval would also diversify AbbVie’s migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine. “Having one oral medication to treat both episodic and chronic migraine would be an important advancement for health care providers and patients,” said Michael Gold, M.D., therapeutic area head, neuroscience development, AbbVie. | Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) ANI Pharmaceuticals Inc. (NASDAQ: ANIP) Merck & Co. Inc. (NYSE: MRK) AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT). “Having one oral medication to treat both episodic and chronic migraine would be an important advancement for health care providers and patients,” said Michael Gold, M.D., therapeutic area head, neuroscience development, AbbVie. “This sNDA approval would also diversify AbbVie’s migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine. | Pharmaceutical Stocks To Watch Today AbbVie Inc. (NYSE: ABBV) ANI Pharmaceuticals Inc. (NASDAQ: ANIP) Merck & Co. Inc. (NYSE: MRK) AbbVie Inc. AbbVie is a biopharmaceutical company that was a spin-off from Abbott Laboratories (NYSE: ABT). “Having one oral medication to treat both episodic and chronic migraine would be an important advancement for health care providers and patients,” said Michael Gold, M.D., therapeutic area head, neuroscience development, AbbVie. “This sNDA approval would also diversify AbbVie’s migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine. |
23313.0 | 2022-06-22 00:00:00 UTC | HDV, ABBV, PM, BMY: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/hdv-abbv-pm-bmy%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $184.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 124,600,000 to 126,450,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Philip Morris International Inc (Symbol: PM) is off about 1.8%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.6%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $99.43. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Philip Morris International Inc (Symbol: PM) is off about 1.8%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.6%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $99.43. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Philip Morris International Inc (Symbol: PM) is off about 1.8%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.6%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $99.43. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Philip Morris International Inc (Symbol: PM) is off about 1.8%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $184.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 124,600,000 to 126,450,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $99.43. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Philip Morris International Inc (Symbol: PM) is off about 1.8%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $184.8 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 124,600,000 to 126,450,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $99.43. |
23314.0 | 2022-06-22 00:00:00 UTC | AbbVie (ABBV) Files Qulipta sNDA for Chronic Migraine Prevention | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-files-qulipta-snda-for-chronic-migraine-prevention | nan | nan | AbbVie ABBV submitted a supplemental new drug application (sNDA) with the FDA, seeking approval for the expanded use of its newly approved CGRP receptor antagonist, Qulipta (atogepant), for the prevention of chronic migraine.
Qulipta was approved for the preventive treatment of episodic migraine in adults in September last year. With the latest approval for chronic migraine prevention, Qulipta becomes the only CGRP receptor antagonist approved for the broad preventive treatment of migraine indication.
AbbVie’s stock has risen 5.9% this year so far against a decrease of 2.6% for the industry.
Image Source: Zacks Investment Research
The sNDA for the chronic migraine prevention indication was based on data from the pivotal phase III PROGRESS study, which met its primary endpoint of a statistically significant reduction from baseline in mean monthly migraine days, compared to placebo, for all doses evaluated across a 12-week treatment period. In addition, the PROGRESS study showed that both doses (60 mg once daily and 30 mg twice daily) of Qulipta resulted in statistically significant improvements in all six secondary endpoints.
Qulipta generated sales of $11 million in the first quarter of 2022. AbbVie now offers two preventive medicines for chronic migraine, Qulipta and its blockbuster medicine, Botox. Botox is approved for both therapeutic as well as cosmetic use. AbbVie’s other oral CGRP medicine, Ubrelvy, is approved for the treatment of acute migraine.
The migraine market is heavily crowded with several anti-CGRP drugs available like Amgen’s AMGN Aimovig, Lilly’s Emgality and Teva’s TEVA Ajovy.
Teva’s Ajovy is a subcutaneous injection approved for the preventive treatment of migraine. Ajovy recorded total sales of $72 million in the first quarter of 2022 and Teva expects the drug to generate approximately $400 million in revenues in 2022.
Amgen’s Aimovig is a subcutaneous injection, also approved as a preventive treatment of migraine. Amgen generated revenues of $101 million from Aimovig in the first quarter, up 53% year over year.
A key competitor to Quilipta is Biohaven Pharmaceutical’s BHVN oral CGRP antagonist, Nurtec ODT, which is approved for the preventive treatment of episodic migraine as well as a treatment of acute migraine.
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.
Zacks Rank and Stocks to Consider
AbbVie currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
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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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Amgen Inc. (AMGN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV submitted a supplemental new drug application (sNDA) with the FDA, seeking approval for the expanded use of its newly approved CGRP receptor antagonist, Qulipta (atogepant), for the prevention of chronic migraine. AbbVie’s stock has risen 5.9% this year so far against a decrease of 2.6% for the industry. AbbVie now offers two preventive medicines for chronic migraine, Qulipta and its blockbuster medicine, Botox. | AbbVie ABBV submitted a supplemental new drug application (sNDA) with the FDA, seeking approval for the expanded use of its newly approved CGRP receptor antagonist, Qulipta (atogepant), for the prevention of chronic migraine. AbbVie’s stock has risen 5.9% this year so far against a decrease of 2.6% for the industry. AbbVie now offers two preventive medicines for chronic migraine, Qulipta and its blockbuster medicine, Botox. | AbbVie ABBV submitted a supplemental new drug application (sNDA) with the FDA, seeking approval for the expanded use of its newly approved CGRP receptor antagonist, Qulipta (atogepant), for the prevention of chronic migraine. AbbVie’s stock has risen 5.9% this year so far against a decrease of 2.6% for the industry. AbbVie now offers two preventive medicines for chronic migraine, Qulipta and its blockbuster medicine, Botox. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV submitted a supplemental new drug application (sNDA) with the FDA, seeking approval for the expanded use of its newly approved CGRP receptor antagonist, Qulipta (atogepant), for the prevention of chronic migraine. AbbVie’s stock has risen 5.9% this year so far against a decrease of 2.6% for the industry. |
23315.0 | 2022-06-22 00:00:00 UTC | Better Buy: Dividend Stocks or Growth Stocks? | ABBV | https://www.nasdaq.com/articles/better-buy%3A-dividend-stocks-or-growth-stocks | nan | nan | With the market moving to a risk-off environment, the question of whether to buy dividend stocks or growth stocks is top of mind for investors.
The answer lies in understanding your own personal investor profile. While some may argue dividend-paying stocks are a safer place to put your money as multiples condense, many growth stocks have fallen to very attractive prices. Ultimately, it is a question of overall risk tolerance and investment timeframe.
Image source: Getty Images.
The importance of understanding business life cycles
Before answering this question for yourself, it's important to understand that nearly all publicly traded companies fall into one of three business cycles: raising capital, self-funding, and returning capital.
Companies that are in the raising capital stage are highly dependent on new injections of cash for operations, either from secondary offerings (offering additional shares) or taking on new debt. These companies are very early in their life cycles and are high-risk, especially in a rising interest rate environment.
Once a company becomes consistently profitable, it is in the self-funding stage. This is a sign of a healthy business, and these companies can often continue to grow self-sufficiently for many years. The risk is lower than that of a company in the previous stage.
Finally, mature businesses will often elect to return capital to investors in the form of dividends or stock buy backs. This typically occurs when the business is generating very healthy profits, but has reached the pinnacle of its growth.
The argument for dividend stocks
As explained above, companies that offer dividends are mature, steady businesses. The overall risk profile for these investments is much lower because it's less likely that businesses in this stage will go bankrupt. As you would expect, the lower risk means lower upside.
Building your portfolio around dividend paying stocks is a great strategy for investors nearing retirement because your portfolio becomes a source of passive income. The inherently lower risk of these stocks also makes sense to older investors as they look to preserve their capital as opposed to significantly grow it.
Some examples of strong dividend-paying businesses include:
Coca Cola (NYSE: KO) -- pays a dividend of 2.96%
AbbVie (NYSE: ABBV) -- pays a dividend of 4.08%
In addition to the dividends, both of these stocks are slightly up in 2022, in a year where the S&P 500 is down over 20%.
An important term that dividend investors need to know is "dividend aristocrat." This describes a company that has consistently raised its dividend payout for 25 years or more. This is an indication of a very strong business, and both the stocks mentioned above are in this esteemed company.
After hearing all this, you might be ready to move your entire portfolio into dividend stocks. But there are serious risks; namely, investing in a stock simply because it has a very high dividend yield. A high yield (over 5%) should be viewed as a red flag, as struggling companies will often offer jaw-dropping payouts to attract investors.
But perhaps the most important risk is investing solely in dividend stocks when you have a very long investment time horizon. Once again, this is a personal decision based on your own risk appetite -- but as a young investor, your goal should be to grow your portfolio, not protect it.
The argument for growth stocks
It's no secret the market has been brutal this year for growth investors. This is the price of admission for aiming for outsized returns over the long run.
For investors who are still decades away from retirement, growth stocks offer significantly higher upside than dividend stocks. This is because instead of returning cash flows to investors, these companies are investing aggressively back into their businesses to grow their products and services or enter new markets.
Some examples include:
The Trade Desk (NASDAQ: TTD), which has seen its stock rise over 1,400% over the last six years
Tesla (NASDAQ: TSLA), which as appreciated nearly 1,500% since 2016
The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG), by comparison, has risen 200% over the same period.
The risks of growth stocks are apparent. The Trade Desk is down 48% year-to-date, and Tesla has fallen 45%.
Growth investing requires emotional and psychological fortitude, but as you can see by the six-year returns that, over the long run, high-quality growth companies outperform.
Because these stocks are highly volatile and run a greater risk of going bankrupt, diversification is incredibly important.
Know your risk tolerance and invest accordingly
The best decision is the one that suits your investor profile. The two main factors in determining your investor profile are your time horizon and tolerance for risk.
Unless your risk appetite is extremely high, you're probably best off allocating a percentage of your portfolio to both growth and dividend payers. Remember, your ideal portfolio is the one that lets you sleep like a baby at night.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some examples of strong dividend-paying businesses include: Coca Cola (NYSE: KO) -- pays a dividend of 2.96% AbbVie (NYSE: ABBV) -- pays a dividend of 4.08% In addition to the dividends, both of these stocks are slightly up in 2022, in a year where the S&P 500 is down over 20%. Finally, mature businesses will often elect to return capital to investors in the form of dividends or stock buy backs. The inherently lower risk of these stocks also makes sense to older investors as they look to preserve their capital as opposed to significantly grow it. | Some examples of strong dividend-paying businesses include: Coca Cola (NYSE: KO) -- pays a dividend of 2.96% AbbVie (NYSE: ABBV) -- pays a dividend of 4.08% In addition to the dividends, both of these stocks are slightly up in 2022, in a year where the S&P 500 is down over 20%. The importance of understanding business life cycles Before answering this question for yourself, it's important to understand that nearly all publicly traded companies fall into one of three business cycles: raising capital, self-funding, and returning capital. For investors who are still decades away from retirement, growth stocks offer significantly higher upside than dividend stocks. | Some examples of strong dividend-paying businesses include: Coca Cola (NYSE: KO) -- pays a dividend of 2.96% AbbVie (NYSE: ABBV) -- pays a dividend of 4.08% In addition to the dividends, both of these stocks are slightly up in 2022, in a year where the S&P 500 is down over 20%. With the market moving to a risk-off environment, the question of whether to buy dividend stocks or growth stocks is top of mind for investors. For investors who are still decades away from retirement, growth stocks offer significantly higher upside than dividend stocks. | Some examples of strong dividend-paying businesses include: Coca Cola (NYSE: KO) -- pays a dividend of 2.96% AbbVie (NYSE: ABBV) -- pays a dividend of 4.08% In addition to the dividends, both of these stocks are slightly up in 2022, in a year where the S&P 500 is down over 20%. With the market moving to a risk-off environment, the question of whether to buy dividend stocks or growth stocks is top of mind for investors. The overall risk profile for these investments is much lower because it's less likely that businesses in this stage will go bankrupt. |
23316.0 | 2022-06-22 00:00:00 UTC | AbbVie: Health Canada Approves Label Extension For MAVIRET To Include Use In Paediatric Patients | ABBV | https://www.nasdaq.com/articles/abbvie%3A-health-canada-approves-label-extension-for-maviret-to-include-use-in-paediatric | nan | nan | (RTTNews) - AbbVie (ABBV) announced Health Canada has approved a change in the marketing authorization for MAVIRET to include its use for the treatment in paediatric patients 3 to 12 years old, weighing at least 12kg to less than 45kg. It is now approved as an 8-week, pan-genotypic treatment for treatment-naïve, chronic HCV patients, without cirrhosis or with compensated cirrhosis in adults and children aged 3 years and older.
The company said the label extension is supported by data from the phase 2/3, non-randomized, open-label, multicenter DORA part 2 study evaluating the safety and efficacy of weight-based dosing of glecaprevir/pibrentasvir granules for 8, 12 or 16 weeks in 80 children aged 3 years to less than 12 years with chronic HCV infection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced Health Canada has approved a change in the marketing authorization for MAVIRET to include its use for the treatment in paediatric patients 3 to 12 years old, weighing at least 12kg to less than 45kg. It is now approved as an 8-week, pan-genotypic treatment for treatment-naïve, chronic HCV patients, without cirrhosis or with compensated cirrhosis in adults and children aged 3 years and older. The company said the label extension is supported by data from the phase 2/3, non-randomized, open-label, multicenter DORA part 2 study evaluating the safety and efficacy of weight-based dosing of glecaprevir/pibrentasvir granules for 8, 12 or 16 weeks in 80 children aged 3 years to less than 12 years with chronic HCV infection. | (RTTNews) - AbbVie (ABBV) announced Health Canada has approved a change in the marketing authorization for MAVIRET to include its use for the treatment in paediatric patients 3 to 12 years old, weighing at least 12kg to less than 45kg. It is now approved as an 8-week, pan-genotypic treatment for treatment-naïve, chronic HCV patients, without cirrhosis or with compensated cirrhosis in adults and children aged 3 years and older. The company said the label extension is supported by data from the phase 2/3, non-randomized, open-label, multicenter DORA part 2 study evaluating the safety and efficacy of weight-based dosing of glecaprevir/pibrentasvir granules for 8, 12 or 16 weeks in 80 children aged 3 years to less than 12 years with chronic HCV infection. | (RTTNews) - AbbVie (ABBV) announced Health Canada has approved a change in the marketing authorization for MAVIRET to include its use for the treatment in paediatric patients 3 to 12 years old, weighing at least 12kg to less than 45kg. It is now approved as an 8-week, pan-genotypic treatment for treatment-naïve, chronic HCV patients, without cirrhosis or with compensated cirrhosis in adults and children aged 3 years and older. The company said the label extension is supported by data from the phase 2/3, non-randomized, open-label, multicenter DORA part 2 study evaluating the safety and efficacy of weight-based dosing of glecaprevir/pibrentasvir granules for 8, 12 or 16 weeks in 80 children aged 3 years to less than 12 years with chronic HCV infection. | (RTTNews) - AbbVie (ABBV) announced Health Canada has approved a change in the marketing authorization for MAVIRET to include its use for the treatment in paediatric patients 3 to 12 years old, weighing at least 12kg to less than 45kg. It is now approved as an 8-week, pan-genotypic treatment for treatment-naïve, chronic HCV patients, without cirrhosis or with compensated cirrhosis in adults and children aged 3 years and older. The company said the label extension is supported by data from the phase 2/3, non-randomized, open-label, multicenter DORA part 2 study evaluating the safety and efficacy of weight-based dosing of glecaprevir/pibrentasvir granules for 8, 12 or 16 weeks in 80 children aged 3 years to less than 12 years with chronic HCV infection. |
23317.0 | 2022-06-21 00:00:00 UTC | AbbVie Files SNDA For Atogepant For Label Expansion | ABBV | https://www.nasdaq.com/articles/abbvie-files-snda-for-atogepant-for-label-expansion | nan | nan | (RTTNews) - AbbVie (ABBV) announced it has submitted a supplemental New Drug Application for atogepant to the FDA to support the preventive treatment of chronic migraine in adults. The company noted that the submission is based on pivotal phase 3 PROGRESS chronic migraine study evaluating atogepant in adult patients that met primary endpoint.
Michael Gold, therapeutic area head, neuroscience development, AbbVie, said: "This sNDA approval would also diversify AbbVie's migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine."
Atogepant is marketed as QULIPTATM in the U.S. and is approved to treat adults with episodic migraine.
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 supplemental New Drug Application for atogepant to the FDA to support the preventive treatment of chronic migraine in adults. Michael Gold, therapeutic area head, neuroscience development, AbbVie, said: "This sNDA approval would also diversify AbbVie's migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine." The company noted that the submission is based on pivotal phase 3 PROGRESS chronic migraine study evaluating atogepant in adult patients that met primary endpoint. | (RTTNews) - AbbVie (ABBV) announced it has submitted a supplemental New Drug Application for atogepant to the FDA to support the preventive treatment of chronic migraine in adults. Michael Gold, therapeutic area head, neuroscience development, AbbVie, said: "This sNDA approval would also diversify AbbVie's migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine." The company noted that the submission is based on pivotal phase 3 PROGRESS chronic migraine study evaluating atogepant in adult patients that met primary endpoint. | (RTTNews) - AbbVie (ABBV) announced it has submitted a supplemental New Drug Application for atogepant to the FDA to support the preventive treatment of chronic migraine in adults. Michael Gold, therapeutic area head, neuroscience development, AbbVie, said: "This sNDA approval would also diversify AbbVie's migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine." 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 supplemental New Drug Application for atogepant to the FDA to support the preventive treatment of chronic migraine in adults. Michael Gold, therapeutic area head, neuroscience development, AbbVie, said: "This sNDA approval would also diversify AbbVie's migraine portfolio and make it the only company to offer two approved preventive treatments for those living with chronic migraine." The company noted that the submission is based on pivotal phase 3 PROGRESS chronic migraine study evaluating atogepant in adult patients that met primary endpoint. |
23318.0 | 2022-06-20 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-3 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $138.28, moving -0.63% from the previous trading session. This change lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.
Coming into today, shares of the drugmaker had lost 8.43% in the past month. In that same time, the Medical sector lost 5.2%, while the S&P 500 lost 10.02%.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.43 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.02 per share and revenue of $59.63 billion. These totals would mark changes of +10.39% and +6.11%, respectively, from last year.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. AbbVie is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 9.87. This valuation marks a discount compared to its industry's average Forward P/E of 12.48.
Investors should also note that ABBV has a PEG ratio of 3.89 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABBV's industry had an average PEG ratio of 2.05 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $138.28, moving -0.63% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | AbbVie (ABBV) closed the most recent trading day at $138.28, moving -0.63% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | AbbVie (ABBV) closed the most recent trading day at $138.28, moving -0.63% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | AbbVie (ABBV) closed the most recent trading day at $138.28, moving -0.63% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.43 per share. |
23319.0 | 2022-06-20 00:00:00 UTC | AbbVie's (ABBV) Skyrizi Gets FDA Nod for Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-skyrizi-gets-fda-nod-for-crohns-disease | nan | nan | AbbVie ABBV announced that the FDA has approved its drug Skyrizi (risankizumab) for its third indication, moderately to severely active Crohn’s disease (“CD”).
Skyrizi can now be used as a 600mg intravenous induction at week 0, week 4, and week 8, followed by 360 mg self-administered by subcutaneous injection with an on-body injector at week 12, and every 8 weeks thereafter.
AbbVie’s stock has risen 2.1% this year so far against a decrease of 2.6% for the industry.
Image Source: Zacks Investment Research
In September last year, the FDA delayed its decision on Skyrizi for the CD indication by three months as it needed time to review the additional information filed by AbbVie, including information about the on-body injector. Skyrizi’s approval for the CD indication was supported by data from two phase III induction studies — ADVANCE, MOTIVATE, and one maintenance study — FORTIFY. In the studies, Skyrizi demonstrated significant improvements in both the co-primary endpoints of endoscopic response and clinical remission as both an induction and maintenance therapy.
Skyrizi, an interleukin-23 (IL-23) inhibitor, is presently approved to treat moderate-to-severe plaque psoriasis and active psoriatic arthritis while being evaluated in phase III studies for psoriasis, ulcerative colitis and psoriatic arthritis. Skyrizi is under review in Europe for the CD indication.
AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim, with AbbVie leading the global development and commercialization of Skyrizi.
Skyrizi recorded sales of $940 million in the first quarter of 2022, up 65.6% year over year on an operational basis. Skyrizi and AbbVie’s another newer inflammatory drug, Rinvoq have demonstrated differentiated clinical profiles versus AbbVie’s blockbuster medicine, Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021. Both Skyrizi and Rinvoq were approved for active psoriatic arthritis in 2021/early 2022. Rinvoq was approved for atopic dermatitis, ulcerative colitis and ankylosing spondylitis in the first half of 2022. With such new indications, sales of these drugs could be higher and have the potential to replace Humira when generics are launched in the United States in 2023. AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
Zacks Rank and Stocks to Consider
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked biotech stocks are Sesen Bio SESN, Alkermes ALKS and BELLUS Health BLU. While Alkermes and Sesen Bio have a Zacks Rank of 1, BELLUS Health has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sesen Bio’s2022 loss has declined from 33 cents to 32 cents per share in the past 60 days. Shares of SESN have risen 8.2% in the past three months.
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%.
The Zacks Consensus Estimate for Alkermes’ 2022 loss per share has narrowed from 14 cents to 3 cents in the past 60 days. Shares of ALKS have risen 8.3% in the past three months.
Earnings of Alkermes beat estimates in each of the last four quarters, the average being 350.5%.
The Zacks Consensus Estimate for BELLUS Health’s 2022 loss per share has narrowed from 87 cents to 76 cents while that for 2023 has gone down from $1.11 per share to 98 cents per share in the past 60 days. Shares of BLU have risen 23.1% in the past three months.
BELLUS Health delivered a four-quarter average negative earnings surprise of 2.68%.
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Alkermes plc (ALKS): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
SESEN BIO, INC. (SESN): Free Stock Analysis Report
Bellus Health Inc. (BLU): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV announced that the FDA has approved its drug Skyrizi (risankizumab) for its third indication, moderately to severely active Crohn’s disease (“CD”). AbbVie’s stock has risen 2.1% this year so far against a decrease of 2.6% for the industry. Image Source: Zacks Investment Research In September last year, the FDA delayed its decision on Skyrizi for the CD indication by three months as it needed time to review the additional information filed by AbbVie, including information about the on-body injector. | AbbVie ABBV announced that the FDA has approved its drug Skyrizi (risankizumab) for its third indication, moderately to severely active Crohn’s disease (“CD”). AbbVie’s stock has risen 2.1% this year so far against a decrease of 2.6% for the industry. Image Source: Zacks Investment Research In September last year, the FDA delayed its decision on Skyrizi for the CD indication by three months as it needed time to review the additional information filed by AbbVie, including information about the on-body injector. | Zacks Rank and Stocks to Consider AbbVie currently has a Zacks Rank #3 (Hold). AbbVie ABBV announced that the FDA has approved its drug Skyrizi (risankizumab) for its third indication, moderately to severely active Crohn’s disease (“CD”). AbbVie’s stock has risen 2.1% this year so far against a decrease of 2.6% for the industry. | AbbVie ABBV announced that the FDA has approved its drug Skyrizi (risankizumab) for its third indication, moderately to severely active Crohn’s disease (“CD”). AbbVie’s stock has risen 2.1% this year so far against a decrease of 2.6% for the industry. Image Source: Zacks Investment Research In September last year, the FDA delayed its decision on Skyrizi for the CD indication by three months as it needed time to review the additional information filed by AbbVie, including information about the on-body injector. |
23320.0 | 2022-06-20 00:00:00 UTC | Finally, a Reasonable Price For This Healthcare Blue Chip | ABBV | https://www.nasdaq.com/articles/finally-a-reasonable-price-for-this-healthcare-blue-chip | nan | nan | The investor community holds high regard for healthcare conglomerate Abbott Laboratories (NYSE: ABT). Shares rarely come cheap, typically commanding a higher valuation than the S&P 500.
However today Abbott Labs is trading nearly 30% below its high, thanks to recent volatility on Wall Street.
The stock has crushed the market over the past five years, and the current dip may give investors a chance to do it again over the next five. Here is why Abbott Labs is a fantastic buy today.
COVID-19 carrying growth in the near term
Abbott Labs is a healthcare company that designs and sells various products, including consumer products, generic drugs, medical devices, lab equipment, and supplies. The business generated more than $44 billion in revenue over the past four quarters.
Abbott's revenue has grown by an average of 15% annually over the past five years, while earnings-per-share (EPS) has averaged 33%. The company has a significant presence in diabetes, where its non-invasive glucose monitoring product, the FreeStyle Libre, grew sales 20% year over year in the first quarter of 2022 to $1 billion. It also has a substantial medical device segment, selling a range of cardiovascular products like pacemakers and pumps.
The company built a device that can rapidly diagnose COVID-19, which has helped carry growth throughout the pandemic. Its rapid test system made $3.5 billion worldwide in Q1 2022, a 57% increase over the prior year. Abbott's total revenue grew by 13.8% year over year in Q1; COVID-19 rapid test sales could eventually fade, but Abbott's a diverse company that grows in many ways.
A profitable business giving cash to investors
Healthcare has changed so much over time, so Abbott's dividend track record might best speak for its long-term success. The company is a Dividend King with 50 consecutive years of dividend increases.
That means passive income for investors; the stock's dividend yield is currently 1.8%, which likely beats putting money into a savings account. You can see below how steadily Abbott has grown over these decades, except for a massive spin-off in 2013 to form AbbVie from its pharmaceutical segment.
ABT Revenue (TTM) data by YCharts.
Abbott is very profitable, turning about $0.20 of each revenue dollar into free cash flow, which are cash profits that management can use to pay a dividend, repurchase its stock, or save on the balance sheet.
The stock is on sale
Remember I said that the stock rarely comes cheap? Investors should celebrate the occasional sale. Looking at valuation through the price-to-earnings ratio (P/E), Abbott Labs has commanded a median P/E of 31 over the past decade. The S&P 500's historical average P/E is 15, so investors have been willing to pay a hefty premium to own shares.
Management is guiding non-GAAP (adjusted) EPS of $4.70 for 2022, pricing the stock at a P/E ratio of just under 22. Think of it as a sale where you can buy the stock at a 30% discount.
This isn't the case every time; a stock that declines due to bad fundamentals, like slowing growth or a damaged balance sheet, can be a trap that investors occasionally fall into. However, Abbott's continued growth and healthy profitability show that the stock's decline is likely more opportunity than a mirage.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You can see below how steadily Abbott has grown over these decades, except for a massive spin-off in 2013 to form AbbVie from its pharmaceutical segment. A profitable business giving cash to investors Healthcare has changed so much over time, so Abbott's dividend track record might best speak for its long-term success. That means passive income for investors; the stock's dividend yield is currently 1.8%, which likely beats putting money into a savings account. | You can see below how steadily Abbott has grown over these decades, except for a massive spin-off in 2013 to form AbbVie from its pharmaceutical segment. COVID-19 carrying growth in the near term Abbott Labs is a healthcare company that designs and sells various products, including consumer products, generic drugs, medical devices, lab equipment, and supplies. Abbott's total revenue grew by 13.8% year over year in Q1; COVID-19 rapid test sales could eventually fade, but Abbott's a diverse company that grows in many ways. | You can see below how steadily Abbott has grown over these decades, except for a massive spin-off in 2013 to form AbbVie from its pharmaceutical segment. Abbott's total revenue grew by 13.8% year over year in Q1; COVID-19 rapid test sales could eventually fade, but Abbott's a diverse company that grows in many ways. Abbott is very profitable, turning about $0.20 of each revenue dollar into free cash flow, which are cash profits that management can use to pay a dividend, repurchase its stock, or save on the balance sheet. | You can see below how steadily Abbott has grown over these decades, except for a massive spin-off in 2013 to form AbbVie from its pharmaceutical segment. COVID-19 carrying growth in the near term Abbott Labs is a healthcare company that designs and sells various products, including consumer products, generic drugs, medical devices, lab equipment, and supplies. Abbott's revenue has grown by an average of 15% annually over the past five years, while earnings-per-share (EPS) has averaged 33%. |
23321.0 | 2022-06-19 00:00:00 UTC | Want to Retire Early? These 5 Ultra-High-Yield Dividend Stocks Can Help | ABBV | https://www.nasdaq.com/articles/want-to-retire-early-these-5-ultra-high-yield-dividend-stocks-can-help | nan | nan | Retirement doesn't necessarily have to wait until you are in your 60s; working becomes optional as soon as your passive income covers your living expenses.
Buying dividend stocks, which make so much money that they give a chunk of their profits on a regular basis to shareholders, can eventually build a waterfall of cash that can set you financially free.
So if you're looking to retire as soon as possible, consider these ultra-high-yield dividend stocks with solid financials to support their hefty payouts.
1. AT&T: The telecom giant
Dividend yield: 5.7%
AT&T (NYSE: T) is one of only a few wireless carriers in the United States. Its network supports roughly 67.5 million customers, who pay their monthly bills like clockwork because smartphones have become a vital part of everyday life for most of them. The company generates more than $160 billion in annual revenue and uses some of that to pay out a quarterly dividend of $0.278 per share that currently yields a whopping 5.7%.
T Revenue (TTM) data by YCharts.
You'll see in the above chart how AT&T recently reduced the dividend, a result of AT&T's fresh spinoff of its entertainment assets to form Warner Bros. Discovery. The lower payout also lowers the dividend payout ratio to roughly 40% of free cash flow per management's estimates. That frees up some cash for AT&T to get its debt levels under control as well as giving it the wherewithal to continue raising the dividend going forward. This gives investors plenty of reason to expect those dividend checks to keep coming.
2. Altria: The tobacco king
Dividend yield: 7.9%
Altria Group (NYSE: MO) is the largest tobacco company in the United States. Its history goes back more than 100 years as owner of the best-selling Marlboro brand of cigarettes (at least in the U.S.). It's well known that fewer people are smoking than in previous generations. Still, Altria has used its robust pricing power for decades to offset declining cigarette volumes with price increases. That continued profit allows it to consistently grow its dividend to the point where it qualifies as a Dividend King with 52 consecutive annual dividend increases.
MO Revenue (TTM) data by YCharts
Altria spun off its international business as Philip Morris International (the owner of the Marlboro brand outside the U.S.) in 2008, which you can see in the above chart. Still, the company has done fine since then, steadily growing its operating profits at a mid-single-digit pace over the past 10 years. Investors can enjoy a whopping 7.9% dividend yield covered by Altria's 78% dividend payout ratio.
3. Enbridge: An oil and gas pipeline stalwart
Dividend yield: 6.2%
Enbridge (NYSE: ENB) is one of the largest energy companies in North America. Its primary business is pipelines, which carry oil and natural gas from Canada to the Gulf Coast. Pipelines are like toll operators on a highway; they get paid for the traffic or materials that pass through their pipes, in Enbridge's case. This has made Enbridge more stable than most oil companies because it's not as dependent on oil and gas prices to profit.
ENB Revenue (TTM) data by YCharts.
Enbridge's business does nearly $40 billion in annual revenue, and the company has paid and raised its dividend in each of the past 26 years. Investors can enjoy a 6.2% yield at the current share price; the payout consumes under 60% of Enbridge's distributable cash flow, making the dividend (and its continued growth) sustainable.
4. AbbVie: Pharmaceutical leader
Dividend yield: 4%
AbbVie (NYSE: ABBV) is a pharmaceutical company that was born when it split from Abbott Laboratories in 2013. However, you can see how quickly the business has grown in nearly a decade, thanks to massive sales from its blockbuster drug Humira, which generated more than $20 billion in 2021. Shareholders have enjoyed a 4% dividend yield, while management has raised the payout by an average of 17% annually over the past five years.
ABBV Revenue (TTM) data by YCharts.
AbbVie's exclusive rights to Humira in the U.S. expire next year, which will likely cause revenue growth to slow as competitors flood the market. AbbVie has moved to develop and acquire assets that could help replace lost business. The dividend payout ratio is just 43% of cash flow, so the dividend should be able to endure some short-term turbulence if there is any.
5. Realty Income: The monthly dividend company
Dividend yield: 4.5%
Realty Income (NYSE: O) is a real estate investment trust (REIT), a specific business structure that invests in real estate and shares its cash profits with shareholders as dividends. Realty Income specializes in retail properties; it's a net-lease REIT, owning the building and charging its tenants for rent, and letting the tenants handle the taxes, insurance, and maintenance.
O Revenue (TTM) data by YCharts
Realty Income's tenants are businesses that tend to operate discount services, making them recession-proof and reliable tenants. Realty Income's properties generate steady cash flow, so much so that it pays shareholders a monthly dividend instead of the quarterly payout that's more common among U.S. companies. It even refers to itself as The Monthly Dividend Company. A Dividend Aristocrat with 28 years of consecutive annual dividend raises, investors can take Realty Income's 4.5% yield to the bank.
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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: Pharmaceutical leader Dividend yield: 4% AbbVie (NYSE: ABBV) is a pharmaceutical company that was born when it split from Abbott Laboratories in 2013. ABBV Revenue (TTM) data by YCharts. AbbVie's exclusive rights to Humira in the U.S. expire next year, which will likely cause revenue growth to slow as competitors flood the market. | AbbVie: Pharmaceutical leader Dividend yield: 4% AbbVie (NYSE: ABBV) is a pharmaceutical company that was born when it split from Abbott Laboratories in 2013. ABBV Revenue (TTM) data by YCharts. AbbVie's exclusive rights to Humira in the U.S. expire next year, which will likely cause revenue growth to slow as competitors flood the market. | AbbVie: Pharmaceutical leader Dividend yield: 4% AbbVie (NYSE: ABBV) is a pharmaceutical company that was born when it split from Abbott Laboratories in 2013. ABBV Revenue (TTM) data by YCharts. AbbVie's exclusive rights to Humira in the U.S. expire next year, which will likely cause revenue growth to slow as competitors flood the market. | AbbVie: Pharmaceutical leader Dividend yield: 4% AbbVie (NYSE: ABBV) is a pharmaceutical company that was born when it split from Abbott Laboratories in 2013. ABBV Revenue (TTM) data by YCharts. AbbVie's exclusive rights to Humira in the U.S. expire next year, which will likely cause revenue growth to slow as competitors flood the market. |
23322.0 | 2022-06-18 00:00:00 UTC | 3 Dividend Stocks to Double Up on Right Now | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-double-up-on-right-now | nan | nan | With the market tumbling and dividend yields rising, now is a great time to be loading up on great, cash-yielding stocks. If you can find the right businesses to invest in today, you stand to gain a considerable amount on your purchase in the long run, when the current turbulence is just a distant memory.
In this vein, there are three stocks that are particularly attractive at the moment thanks to their evergreen business models, strong financial performance, and perpetually rising dividend payouts. All three of these stocks have outperformed the market in the last 12 months, and they also have a history of hiking their dividends over time, including recently.
And to sweeten the pot even more, one of the trio even distributes special dividends once in a while, so let's take a look at each in detail.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) makes everything from baby formula to coronavirus tests and even medical devices, and it's one of the most reliable companies around when it comes to paying out dividends.
Its forward dividend yield is nearly 1.8%, but more importantly, Abbott has raised its dividend every year without fail for the last 50 years, making it a member of the elite Dividend King club of stocks. Its massive and diverse catalog of products means that its base of revenue is nearly impermeable to sharp drops, and it's also a consistent grower over time.
In the last five years, Abbott's quarterly net income exploded by 764%, and management is always looking for new growth opportunities. What's more, it's making steady progress to reduce its debt load over time, which only solidifies its long-term appeal.
2. AbbVie
As a spinoff of Abbott Labs, AbbVie (NYSE: ABBV) is dedicated to developing and commercializing new prescription medicines. It's also a Dividend King, and its forward yield is currently nearly 4.1%, which is worlds above the market's average yield of around 1.7%.
Part of the reason its yield is so high is that revenue from its best-selling drug Humira is starting to ebb as a result of competition from generics, which might be keeping its share price depressed. But the company has a pair of replacement drugs that it thinks should be able to make up for the revenue it expects to lose, so its future is still bright.
And it isn't as though AbbVie is struggling despite falling income from Humira; its quarterly revenue is up by more than 49% over the last three years, and its quarterly free cash flow (FCF) has gained 195% in the same period. Beyond that, its pipeline of drugs in development is among the largest in the world, and it's not uncommon for the company to have multiple regulatory submissions waiting for action from regulators at once.
Even if one of its candidates fails to make it to commercialization, many more will be in line for their chance at bat, and that's just one more reason it's a company with a lot of staying power in the long term.
3. Costco
In case you aren't familiar, Costco Wholesale (NASDAQ: COST) is a discount warehouse that sells everything from groceries to gasoline, and it's also the world's third-largest retailer.
Its forward dividend yield of close to 0.8% isn't about to make anyone rich, but management consistently increases its payout while also issuing special dividends from time to time. Over the last 10 years, Costco issued four special dividends while also growing its yearly dividend by more than 277%, which is quite a feat.
To accomplish that, Costco simply executed its business model at a larger and larger scale over time. It collects membership fees from people, and then sells them vast quantities of household products at a low price and a narrow margin. Each year, 92.3% of people who buy memberships choose to renew their subscription, which yielded the company trailing 12-month (TTM) revenue of more than $4.1 billion. But even that sum pales in comparison to its total TTM sales of more than $217.5 billion.
With so many consumers flocking to Costco and spending so much, it's hard to see how shareholders will come up short.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie As a spinoff of Abbott Labs, AbbVie (NYSE: ABBV) is dedicated to developing and commercializing new prescription medicines. And it isn't as though AbbVie is struggling despite falling income from Humira; its quarterly revenue is up by more than 49% over the last three years, and its quarterly free cash flow (FCF) has gained 195% in the same period. If you can find the right businesses to invest in today, you stand to gain a considerable amount on your purchase in the long run, when the current turbulence is just a distant memory. | AbbVie As a spinoff of Abbott Labs, AbbVie (NYSE: ABBV) is dedicated to developing and commercializing new prescription medicines. And it isn't as though AbbVie is struggling despite falling income from Humira; its quarterly revenue is up by more than 49% over the last three years, and its quarterly free cash flow (FCF) has gained 195% in the same period. With the market tumbling and dividend yields rising, now is a great time to be loading up on great, cash-yielding stocks. | AbbVie As a spinoff of Abbott Labs, AbbVie (NYSE: ABBV) is dedicated to developing and commercializing new prescription medicines. And it isn't as though AbbVie is struggling despite falling income from Humira; its quarterly revenue is up by more than 49% over the last three years, and its quarterly free cash flow (FCF) has gained 195% in the same period. Its forward dividend yield is nearly 1.8%, but more importantly, Abbott has raised its dividend every year without fail for the last 50 years, making it a member of the elite Dividend King club of stocks. | AbbVie As a spinoff of Abbott Labs, AbbVie (NYSE: ABBV) is dedicated to developing and commercializing new prescription medicines. And it isn't as though AbbVie is struggling despite falling income from Humira; its quarterly revenue is up by more than 49% over the last three years, and its quarterly free cash flow (FCF) has gained 195% in the same period. Its forward dividend yield of close to 0.8% isn't about to make anyone rich, but management consistently increases its payout while also issuing special dividends from time to time. |
23323.0 | 2022-06-17 00:00:00 UTC | First Week of February 2023 Options Trading For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/first-week-of-february-2023-options-trading-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2023 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 245 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2023 contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $11.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $123.95 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $138.01/share today.
Because the $135.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.19% return on the cash commitment, or 12.19% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $10.20. If an investor was to purchase shares of ABBV stock at the current price level of $138.01/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.83% if the stock gets called away at the February 2023 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.39% boost of extra return to the investor, or 11.01% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 36%, while the implied volatility in the call contract example is 26%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $138.01) to be 21%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2023 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2023 contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $135.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $10.20. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2023 expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2023 contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2023 expiration. |
23324.0 | 2022-06-17 00:00:00 UTC | 5 Stocks Warren Buffett Has Aggressively Sold Since 2022 Began | ABBV | https://www.nasdaq.com/articles/5-stocks-warren-buffett-has-aggressively-sold-since-2022-began | nan | nan | When Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett speaks, Wall Street and investors wisely pay close attention. That's because the Oracle of Omaha has delivered an aggregate return on the company's Class A shares (BRK.A) of 3,641,613% during his 57 years at the helm (through Dec. 31, 2021).
While riding Buffett's coattails has been a moneymaking strategy for decades, it's equally important to take note of the stocks that the world's most successful investor and his investing team are selling or avoiding. Thus far in 2022, Warren Buffett has overseen the aggressive selling of the following five stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Wells Fargo: Sold all shares
This year marks the end of an era for Warren Buffett and Berkshire Hathaway. During the first quarter, Berkshire's final 675,054 shares of money-center bank Wells Fargo (NYSE: WFC) were sold. It's the first time since 1989 that Wells Fargo isn't a continuous holding in Berkshire's portfolio.
Although bank stocks are Buffett's favorite industry to invest in, Wells Fargo broke a cardinal rule when it violated the trust of its customers. In 2016 and 2017, Wells Fargo admitted that approximately 3.5 million unauthorized accounts were opened at the branch level between 2009 and 2016. This admission caused a short-term carousel among the company's executives, and ultimately led to a whopper settlement of $3 billion with U.S. regulators. Because it can be difficult for a company to rebuild its reputation, Buffett headed for the exit.
Interestingly, though, Wells Fargo has performed fairly well over the past two years. This is a bank that has a rich history of attracting a more affluent clientele. People with higher incomes are less likely to be shaken off their proverbial foundations by economic contractions, and that's helped Wells Fargo deliver some of the highest return on assets among money-center banks.
In other words, Buffett might eventually regret selling his company's remaining stake in Wells Fargo.
Bristol Myers Squibb: Sold all shares
A second well-known company that was given the heave-ho since the year began is pharmaceutical stock Bristol Myers Squibb (NYSE: BMY). All 5,202,674 shares that Berkshire held at the end of 2021 were disposed of during the first quarter.
Berkshire Hathaway piled into a number of high-profile drugmakers more than a year ago, likely with the intent of capitalizing on their COVID-19 research, as well as benefiting from their high dividends and relatively steady operating cash flow. However, Bristol Myers Squibb never became a major player in the COVID-19 treatment space. Worse yet, blockbuster cancer drug Revlimid has begun experiencing modest revenue erosion from generic competition. These latter two factors are my best guesses as to why Bristol Myers Squibb was given the boot.
But when looked at with a broad lens, Bristol Myers is an inexpensive cash cow that still seems to have room to the upside. Oral anticoagulant Eliquis, which was developed in cooperation with Pfizer, has surpassed Revlimid in full-year sales. And cancer immunotherapy Opdivo has a real chance to leapfrog $10 billion in annual sales, thanks to label-expansion opportunities.
At only 9 times Wall Street's forecast earnings for 2023, Bristol Myers Squibb offers a reasonable risk-versus-reward profile for patient investors.
Image source: Getty Images.
AbbVie: Sold all shares
Bristol Myers isn't the only big drugmaker dumped by Warren Buffett's company this year. AbbVie (NYSE: ABBV), which was initially purchased by Berkshire Hathaway in 2020, was completely sold. Buffett and his investing team jettisoned all 3,033,561 shares held at the end of 2021.
The basis for selling all shares of AbbVie likely mirrored the reasoning for ditching Bristol Myers Squibb. Although AbbVie provided stability during uncertain times for investors, the company never became a big player in the COVID-19 landscape. Furthermore, its lead drug, anti-inflammatory therapy Humira, is also beginning to face biosimilar competition in international markets. While Humira sales in the U.S. rose 2.2% in the most recent quarter, international sales plunged 22.6% from the prior-year period.
Despite AbbVie remaining inexpensive at 12 times Wall Street's forecast earnings for 2023, Buffett's exit in this instance might make sense. Humira accounted for 35% of global net revenue in the first quarter, and biosimilar competition will eventually eat into its sales in the U.S. as well. Even though AbbVie acquired Allergan in 2020 to diversify its sales and product development pipeline, it's difficult to envision AbbVie's bottom line not taking a big hit in the coming years due to a reduction in Humira sales.
Royalty Pharma: Reduced by 82%
Keeping with the theme somewhat, Berkshire Hathaway's stake in Royalty Pharma (NASDAQ: RPRX) has been greatly reduced since the year began. A total of 7,151,896 shares were sold, leaving just shy of 1.5 million shares still in the portfolio of Buffett's company.
Royalty Pharma, which generates royalty payments from the net sales of more than 35 approved drugs, was only initially added to Berkshire's portfolio during the third quarter of 2021. Paring down this stake by 82% somewhere between six and nine months later potentially signals that this was a move made by one of Buffett's investing lieutenants, Todd Combs or Ted Weschler. Rarely does Warren Buffett hold a position for only a few months.
As for the reason Berkshire Hathaway dumped 82% of its position in Royalty Pharma, I'd opine it has to do with upcoming losses of exclusivity that are expected to hit the company's royalty stream. For example, Humira is one of the more than 35 therapies Royalty Pharma generates revenue from. With a slew of Humira biosimilars set to launch in the U.S. next year, we may be witnessing a near-term royalty revenue peak for the company.
Verizon Communications: Reduced by 99%
The fifth and final stock Warren Buffett has aggressively sold in 2022, and arguably the most surprising of all, is telecom behemoth Verizon Communications (NYSE: VZ). The Oracle of Omaha's company sold 157,444,464 shares of Verizon in the first quarter. As of the end of March, only 1,380,111 shares remain.
What's so odd about this sale is that Verizon was a top-10 holding for Berkshire Hathaway for only about a year. To reiterate, Warren Buffett typically buys great companies that he intends to hold for long periods. To see Berkshire Hathaway diving in and out of stocks in short time frames is....odd.
If there's an impetus to this large sale, it could be historically high inflation. When the price for goods and services rapidly rises, it tends to hurt the lowest decile of earners the most. Even though wireless access and smartphones have effectively become basic necessities over the past decade, inflation is curbing the spending capacity of consumers. Not surprisingly, Verizon cautioned Wall Street to expect full-year profits to come in at the lower end of its previously issued forecast in its first-quarter earnings release.
The silver lining with Verizon is that there are rarely surprises. Wireless churn rates tend not to rise much during economic contractions, and shares of Verizon are reasonably de-risked at just 9 times Wall Street's forecast earnings in 2022 and 2023. Tack on a 5% dividend yield and you have a boring, yet potentially profitable, place for conservative investors to put their money to work.
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Wells Fargo. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie: Sold all shares Bristol Myers isn't the only big drugmaker dumped by Warren Buffett's company this year. AbbVie (NYSE: ABBV), which was initially purchased by Berkshire Hathaway in 2020, was completely sold. The basis for selling all shares of AbbVie likely mirrored the reasoning for ditching Bristol Myers Squibb. | AbbVie: Sold all shares Bristol Myers isn't the only big drugmaker dumped by Warren Buffett's company this year. AbbVie (NYSE: ABBV), which was initially purchased by Berkshire Hathaway in 2020, was completely sold. The basis for selling all shares of AbbVie likely mirrored the reasoning for ditching Bristol Myers Squibb. | AbbVie: Sold all shares Bristol Myers isn't the only big drugmaker dumped by Warren Buffett's company this year. AbbVie (NYSE: ABBV), which was initially purchased by Berkshire Hathaway in 2020, was completely sold. The basis for selling all shares of AbbVie likely mirrored the reasoning for ditching Bristol Myers Squibb. | AbbVie: Sold all shares Bristol Myers isn't the only big drugmaker dumped by Warren Buffett's company this year. AbbVie (NYSE: ABBV), which was initially purchased by Berkshire Hathaway in 2020, was completely sold. The basis for selling all shares of AbbVie likely mirrored the reasoning for ditching Bristol Myers Squibb. |
23325.0 | 2022-06-16 00:00:00 UTC | AbbVie Inc. (ABBV) is Attracting Investor Attention: Here is What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-attracting-investor-attention%3A-here-is-what-you-should-know | nan | nan | AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugmaker have returned -9.4% over the past month versus the Zacks S&P 500 composite's -5.6% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +10.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
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 -0.3%.
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 changed +109.7%.
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
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 $14.66 billion indicates a year-over-year change of +5%. For the current and next fiscal years, $59.63 billion and $55.98 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.7% 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) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.7% over this period. | 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) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.7% 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) has been one of the most searched-for stocks on Zacks.com lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.7% over this period. |
23326.0 | 2022-06-15 00:00:00 UTC | Is There A Better Pick Over Merck Stock In Animal Health Space? | ABBV | https://www.nasdaq.com/articles/is-there-a-better-pick-over-merck-stock-in-animal-health-space | nan | nan | We think that Zoetis stock (NYSE: ZTS) currently is a better pick compared to its peer Merck stock (NYSE: MRK), despite Zoetis being the more expensive of the two, trading at 9x trailing revenues, compared to just 4x for Merck. This valuation gap can be attributed to Zoetis’ better profitability.
If we look at stock returns, Merck’s 16% growth is much better than the -14% return for Zoetis stock over the last twelve months. This marks an outperformance with an -8% change in the broader S&P 500 index. While both the companies are likely to see stock price growth, Zoetis is expected to outperform.
There is more to the comparison, and in the sections below, we discuss why we believe that ZTS stock will offer better returns than MRK stock in the next three years. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Merck vs. Zoetis: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Zoetis’ Revenue Growth Was Stronger In Recent Years
Both companies posted sales growth over the last twelve months. Still, Merck’s revenue growth of 29% is higher than 12% for Zoetis.
However, if we look at a longer time frame, Merck’s sales grew at an average growth rate of 5.3% to $48.7 billion in 2021, compared to $42.3 billion in 2018, while that of Zoetis grew at 10.2% to $7.8 billion in 2021, compared to $5.8 billion in 2018.
Zoetis is an animal health company that benefited from an increased animal adoption in the U.S., aiding its sales of parasiticide products for companion animals over the recent years.
Merck is a diversified pharmaceutical company, with the animal health business accounting for over 12% of its total sales.
Merck, over the recent quarters, has benefited from label expansion of Keytruda and a rebound in demand for vaccines, primarily Gardasil, after a fall in 2020, due to the impact of the pandemic.
Looking at the company’s animal health business, the sales rose 29% to nearly $6.0 billion in 2021, compared to $4.6 billion in 2018.
Our Merck Revenue and Zoetis Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Zoetis’ revenue is expected to grow faster than Merck’s over the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 1.6% for Merck, compared to a 7.2% CAGR for Zoetis, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies negatively impacted by Covid and for companies not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed in the three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Zoetis Is More Profitable
Zoetis’ operating margin of 35% over the last twelve-month period is better than 29% for Merck.
This compares with 32% and 19% figures seen in 2019, before the pandemic, respectively.
Merck’s free cash flow margin of 31% is better than 27% for Zoetis.
Our Merck Operating Income and Zoetis Operating Income dashboards have more details.
Looking at financial risk, Zoetis’ 15% debt as a percentage of equity is marginally higher than 14% for Merck, while its 23% cash as a percentage of assets is much higher than just 9% for the latter, implying that Merck has a slightly better debt position and Zoetis has more cash cushion.
3. The Net of It All
We see that Zoetis has demonstrated better revenue growth over the recent years, is more profitable, and has more cash cushion. On the other hand, Merck has a slightly better debt position and is trading at a lower valuation than Zoetis.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Zoetis is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Merck and Zoetis over the next three years and points to an expected return of 19% for Zoetis over this period vs. a 10% expected return for Merck stock, implying that investors are better off buying ZTS over MRK, based on Trefis Machine Learning analysis – Merck vs. Zoetis – which also provides more details on how we arrive at these numbers.
While ZTS stock may outperform MRK, 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 Electronic Arts vs. Emergent Biosolutions.
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 Jun 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return -7% 12% 45%
ZTS Return -9% -36% 190%
S&P 500 Return -3% -16% 78%
Trefis Multi-Strategy Portfolio -4% -23% 204%
[1] Month-to-date and year-to-date as of 6/13/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Merck vs. Zoetis: Which Stock Is A Better Bet? Merck, over the recent quarters, has benefited from label expansion of Keytruda and a rebound in demand for vaccines, primarily Gardasil, after a fall in 2020, due to the impact of the pandemic. Beyond the recovery point, we apply the average annual growth observed in the three years before Covid to simulate a return to normal conditions. | It points to a CAGR of 1.6% for Merck, compared to a 7.2% CAGR for Zoetis, based on Trefis Machine Learning analysis. The table below summarizes our revenue and return expectations for Merck and Zoetis over the next three years and points to an expected return of 19% for Zoetis over this period vs. a 10% expected return for Merck stock, implying that investors are better off buying ZTS over MRK, based on Trefis Machine Learning analysis – Merck vs. Zoetis – which also provides more details on how we arrive at these numbers. Total [2] MRK Return -7% 12% 45% ZTS Return -9% -36% 190% S&P 500 Return -3% -16% 78% Trefis Multi-Strategy Portfolio -4% -23% 204% [1] Month-to-date and year-to-date as of 6/13/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We think that Zoetis stock (NYSE: ZTS) currently is a better pick compared to its peer Merck stock (NYSE: MRK), despite Zoetis being the more expensive of the two, trading at 9x trailing revenues, compared to just 4x for Merck. If we look at stock returns, Merck’s 16% growth is much better than the -14% return for Zoetis stock over the last twelve months. The table below summarizes our revenue and return expectations for Merck and Zoetis over the next three years and points to an expected return of 19% for Zoetis over this period vs. a 10% expected return for Merck stock, implying that investors are better off buying ZTS over MRK, based on Trefis Machine Learning analysis – Merck vs. Zoetis – which also provides more details on how we arrive at these numbers. | While both the companies are likely to see stock price growth, Zoetis is expected to outperform. Our Merck Revenue and Zoetis Revenue dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for Merck and Zoetis over the next three years and points to an expected return of 19% for Zoetis over this period vs. a 10% expected return for Merck stock, implying that investors are better off buying ZTS over MRK, based on Trefis Machine Learning analysis – Merck vs. Zoetis – which also provides more details on how we arrive at these numbers. |
23327.0 | 2022-06-14 00:00:00 UTC | AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-dips-more-than-broader-markets%3A-what-you-should-know | nan | nan | AbbVie (ABBV) closed the most recent trading day at $137.62, moving -1.29% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the drugmaker had lost 10.32% in the past month. In that same time, the Medical sector lost 2.15%, while the S&P 500 lost 6.69%.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. This would mark year-over-year growth of 10.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.66 billion, up 5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.02 per share and revenue of $59.63 billion. These totals would mark changes of +10.39% and +6.11%, respectively, from last year.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. AbbVie is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 9.95. This valuation marks a discount compared to its industry's average Forward P/E of 12.73.
Meanwhile, ABBV's PEG ratio is currently 3.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $137.62, moving -1.29% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | AbbVie (ABBV) closed the most recent trading day at $137.62, moving -1.29% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | AbbVie (ABBV) closed the most recent trading day at $137.62, moving -1.29% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. | AbbVie (ABBV) closed the most recent trading day at $137.62, moving -1.29% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. |
23328.0 | 2022-06-14 00:00:00 UTC | Notable ETF Inflow Detected - HDV, ABBV, PM, BMY | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-hdv-abbv-pm-bmy | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $349.3 million dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 121,150,000 to 124,600,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Philip Morris International Inc (Symbol: PM) is up about 0.6%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 1.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.22. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Philip Morris International Inc (Symbol: PM) is up about 0.6%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 1.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.22. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Philip Morris International Inc (Symbol: PM) is up about 0.6%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 1.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.22. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Philip Morris International Inc (Symbol: PM) is up about 0.6%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $349.3 million dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 121,150,000 to 124,600,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.22. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Philip Morris International Inc (Symbol: PM) is up about 0.6%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $349.3 million dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 121,150,000 to 124,600,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $93.48 per share, with $110.91 as the 52 week high point — that compares with a last trade of $101.22. |
23329.0 | 2022-06-14 00:00:00 UTC | Lilly (LLY), Incyte's Olumiant Gets FDA Nod for Alopecia Areata | ABBV | https://www.nasdaq.com/articles/lilly-lly-incytes-olumiant-gets-fda-nod-for-alopecia-areata | nan | nan | Eli Lilly LLY and partner Incyte INCY announced that the FDA has granted approval to their oral JAK inhibitor, Olumiant (baricitinib) for treating adults with severe alopecia areata (“AA”). This autoimmune disorder results in non-scarring hair loss.
Until now there were no FDA-approved systemic treatments for AA. Systemic treatments are treatments that target the entire body and not any specific area. Olumiant is the first-ever FDA-approved systemic treatment for alopecia areata patients. Olumiant will now be available for adults with AA as a 4-mg, 2-mg and 1-mg once-daily tablet.
Lilly’s shares have risen 5.5% this year so far compared with the industry’s increase of 1%.
Image Source: Zacks Investment Research
Olumiant’s approval for AA was based on data from two phase III studies, BRAVE-AA1 and BRAVE-AA2, which showed that Olumiant significantly improved hair re-growth. Across the two studies, 17-22% of patients taking Olumiant 2-mg/day and 32-35% of those taking Olumiant 4-mg/day achieved 80% or more scalp hair coverage, compared to 3-5% taking placebo, at 36 weeks. Patients with significant eyebrow and eyelash hair loss taking Olumiant 4-mg daily also witnessed improvements in eyebrow and eyelash coverage at 36 weeks
Last month, the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) recommended approval of Olumiant (baricitinib) for AA. A decision from the European Commission is expected in the coming months.
Besides AA, Olumiant is approved to treat rheumatoid arthritis (RA) and COVID-19 in certain hospitalized adults requiring various degrees of oxygen support. Olumiant is also approved in Europe and Japan for atopic dermatitis while it is under review in the United States for the same indication.
The drug generated sales of $255.6 million for Lilly in the first quarter of 2022, up 32% on a year-over-year basis.
Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz.
AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched in the United States next year.
Rinvoq registered sales of $465 million in the first quarter, up 57.3% year over year.
Pfizer’s Xeljanz is approved for RA, psoriatic arthritis, ulcerative colitis and ankylosing spondylitis. Xeljanz sales declined 29% to $372 million in the first quarter.
However, neither Rinvoq nor Xeljanz are approved to treat AA.
Lilly currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Pfizer Inc. (PFE): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Incyte Corporation (INCY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched in the United States next year. Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. | AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched in the United States next year. | Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched in the United States next year. | Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched in the United States next year. |
23330.0 | 2022-06-14 00:00:00 UTC | The Zacks Analyst Blog Highlights Berkshire Hathaway, AbbVie, TotalEnergies, Linde and AT&T | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-berkshire-hathaway-abbvie-totalenergies-linde-and-att | nan | nan | For Immediate Release
Chicago, IL – June 14, 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: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, TotalEnergies SE TTE, Linde plc LIN and AT&T Inc. T.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Berkshire Hathaway, AbVie and TotalEnergies
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc., and TotalEnergies SE. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Berkshire Hathaway shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+1.1% vs. -3.3%). The company is one of the largest property and casualty insurance companies measured by premium volume. Berkshire's inorganic growth story remains impressive with strategic acquisitions.
A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company's financial flexibility. Continued insurance business growth fuels increase in float, drives earnings and generates maximum return on equity.
The non-insurance businesses are delivering improved results with increased revenues over the past few years. A sturdy capital level provides further impetus. However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of Berkshire. Huge capital expenditure remains a headwind for the company.
(You an read the full research report on Berkshire Hathaway here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). The Zacks analyst believes that the company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta.
It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential.
Allergan's acquisition has diversified AbbVie's revenue base into new therapeutic areas, enhancing its long-term growth potential. However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales. AbbVie's shares have outperformed the industry this year so far.
(You an read the full research report on AbbVie here >>>)
TotalEnergies shares have gained +44.3% over the past year against the Zacks Oil and Gas - Refining and Marketing industry's gain of +19.0%. The Zacks analyst believes that the company is gaining from new startups, increase in commodity prices, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon producing regions.
TTE streamlines its portfolio through acquisitions, partnerships and divestitures. TTE is making regular investments to expand renewable operation and aims to achieve net-zero emission by 2050.
TTE has enough liquidity to meet debt obligations. However, TTE's profitability is likely to have been impacted by natural decline in the oil and natural gas fields. TTE remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TTE has operations in some politically-troubled regions and the ongoing Russia and Ukraine conflict might affect profitability.
(You an read the full research report on TotalEnergies here >>>)
Other noteworthy reports we are featuring today include Linde plc and AT&T Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (You an read the full research report on Berkshire Hathaway here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). Stocks recently featured in the blog include: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, TotalEnergies SE TTE, Linde plc LIN and AT&T Inc. T. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Berkshire Hathaway, AbVie and TotalEnergies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc., and TotalEnergies SE. | Stocks recently featured in the blog include: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, TotalEnergies SE TTE, Linde plc LIN and AT&T Inc. T. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Berkshire Hathaway, AbVie and TotalEnergies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc., and TotalEnergies SE. (You an read the full research report on Berkshire Hathaway here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). | Stocks recently featured in the blog include: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, TotalEnergies SE TTE, Linde plc LIN and AT&T Inc. T. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Berkshire Hathaway, AbVie and TotalEnergies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc., and TotalEnergies SE. (You an read the full research report on Berkshire Hathaway here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). | (You an read the full research report on AbbVie here >>>) TotalEnergies shares have gained +44.3% over the past year against the Zacks Oil and Gas - Refining and Marketing industry's gain of +19.0%. Stocks recently featured in the blog include: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, TotalEnergies SE TTE, Linde plc LIN and AT&T Inc. T. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Berkshire Hathaway, AbVie and TotalEnergies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc., and TotalEnergies SE. |
23331.0 | 2022-06-13 00:00:00 UTC | Consistent Clinical Results Indicate Upside for AbbVie Stock | ABBV | https://www.nasdaq.com/articles/consistent-clinical-results-indicate-upside-for-abbvie-stock | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Illinois-headquartered AbbVie (NYSE:ABBV) is famous among pharmaceutical businesses for its diversified portfolio of medical treatments and solutions. ABBV stock is an outstanding deal at the current share price as AbbVie continues to develop industry-leading formulations through clinical trials.
Some folks might hesitate to buy pharmaceutical stocks because clinical trials involve risk. That’s undeniable, but AbbVie is among the best in the business and there are multiple reasons to choose this company over the competitors.
After delving into the company’s financials, investors should concur that AbbVie is a relatively low-risk pharmaceutical business to hold a stake in. Besides, there’s a window of opportunity here as AbbVie shares are reasonably valued and might return to their prior peak price this year.
Ticker Company Price
ABBV AbbVie Inc. $141.34
What’s Happening with ABBV Stock?
Frankly, there’s a lot to like about ABBV stock right now. For one thing, the stock recently hit its all-time high of $175.91, but then backed down. Consequently, investors have a chance to get in at a favorable price point.
7 Great Dividend Stocks Under $25
Plus, value hunters should be glad to know that AbbVie’s trailing 12-month price-to-earnings ratio is 21.67. This is quite reasonable and indicates that the stock is a good bargain. Bear in mind that bargains don’t last forever on Wall Street.
For income-focused investors, AbbVie offers a forward annual dividend yield of 3.94%. So, you can reinvest your dividend distributions into more ABBV stock shares, thereby leveraging the magic of compounding.
Furthermore, AbbVie’s financials suggest that the company should have no difficulty continuing to pay out its dividends. In its most recently reported quarterly results, AbbVie announced a 26% year-over-year increase in GAAP earnings per share. In terms of net revenue, AbbVie showed a respectable 4.1% year-over-year improvement.
Powerful Pipeline
Financials are important, but when it comes to pharmaceutical companies, a promising clinical pipeline is essential. Fortunately, AbbVie is demonstrating again and again that the company excels in this area.
Here’s a sampling of what AbbVie has achieved in just the past month:
May 20: Submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for foscarbidopa/foslevodopa (ABBV-951) to treat motor fluctuations in patients with advanced Parkinson’s disease.
May 23: Presented positive data from a Phase 3 trial of cariprazine (VRAYLAR) for the adjunctive treatment of major depressive disorder in patients with an inadequate response to ongoing antidepressant therapy.
May 27: Results from Phase 3 induction and maintenance programs evaluating Upadacitinib (RINVOQ) for ulcerative colitis were published in The Lancet.
June 1: Revealed positive results from Phase 3 trials of Upadacitinib (RINVOQ) in patients with axial spondyloarthritis.
What You Can Do With ABBV Stock
All in all, there’s no reason why ABBV stock shouldn’t revisit its all-time high price this year. Even if this doesn’t happen, you can collect and reinvest the dividends to potentially enhance your returns.
Moreover, AbbVie’s clinical pipeline is robust and the company is advancing its treatments through rigorous testing. Thus, investors can buy and hold shares of AbbVie with confidence. After all, they’ll have a stake in a top-tier, innovation-driven pharmaceutical giant.
AbbVie currently scores an “A” 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 Consistent Clinical Results Indicate Upside for AbbVie Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV stock is an outstanding deal at the current share price as AbbVie continues to develop industry-leading formulations through clinical trials. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois-headquartered AbbVie (NYSE:ABBV) is famous among pharmaceutical businesses for its diversified portfolio of medical treatments and solutions. That’s undeniable, but AbbVie is among the best in the business and there are multiple reasons to choose this company over the competitors. | Ticker Company Price ABBV AbbVie Inc. $141.34 What’s Happening with ABBV Stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois-headquartered AbbVie (NYSE:ABBV) is famous among pharmaceutical businesses for its diversified portfolio of medical treatments and solutions. ABBV stock is an outstanding deal at the current share price as AbbVie continues to develop industry-leading formulations through clinical trials. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois-headquartered AbbVie (NYSE:ABBV) is famous among pharmaceutical businesses for its diversified portfolio of medical treatments and solutions. ABBV stock is an outstanding deal at the current share price as AbbVie continues to develop industry-leading formulations through clinical trials. Ticker Company Price ABBV AbbVie Inc. $141.34 What’s Happening with ABBV Stock? | After delving into the company’s financials, investors should concur that AbbVie is a relatively low-risk pharmaceutical business to hold a stake in. Ticker Company Price ABBV AbbVie Inc. $141.34 What’s Happening with ABBV Stock? What You Can Do With ABBV Stock All in all, there’s no reason why ABBV stock shouldn’t revisit its all-time high price this year. |
23332.0 | 2022-06-13 00:00:00 UTC | Should You Invest in the VanEck Pharmaceutical ETF (PPH)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-vaneck-pharmaceutical-etf-pph-1 | nan | nan | If you're interested in broad exposure to the Healthcare - Pharma segment of the equity market, look no further than the VanEck Pharmaceutical ETF (PPH), a passively managed exchange traded fund launched on 12/20/2011.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $487.51 million, making it one of the larger ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PPH seeks to match the performance of the MVIS US Listed Pharmaceutical 25 Index before fees and expenses.
The MVIS US Listed Pharmaceutical 25 Index tracks the overall performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well a production, marketing and sales of pharmaceuticals.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.77%.
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.
Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 5.93% of total assets, followed by Bristol-Myers Squibb Co (BMY) and Mckesson Corp (MCK).
The top 10 holdings account for about 52.71% of total assets under management.
Performance and Risk
The ETF has lost about -0.88% and is up roughly 2.82% so far this year and in the past one year (as of 06/13/2022), respectively. PPH has traded between $71.36 and $83.96 during this last 52-week period.
The ETF has a beta of 0.79 and standard deviation of 20.37% for the trailing three-year period, making it a medium risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Pharmaceutical 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, PPH is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco Dynamic Pharmaceuticals ETF (PJP) tracks Dynamic Pharmaceutical Intellidex Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. Invesco Dynamic Pharmaceuticals ETF has $297.56 million in assets, iShares U.S. Pharmaceuticals ETF has $418.48 million. PJP has an expense ratio of 0.58% and IHE charges 0.42%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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VanEck Pharmaceutical ETF (PPH): ETF Research Reports
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
McKesson Corporation (MCK): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
iShares U.S. Pharmaceuticals ETF (IHE): 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, Abbvie Inc (ABBV) accounts for about 5.93% of total assets, followed by Bristol-Myers Squibb Co (BMY) and Mckesson Corp (MCK). AbbVie Inc. (ABBV): Free Stock Analysis Report If you're interested in broad exposure to the Healthcare - Pharma segment of the equity market, look no further than the VanEck Pharmaceutical ETF (PPH), a passively managed exchange traded fund launched on 12/20/2011. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 5.93% of total assets, followed by Bristol-Myers Squibb Co (BMY) and Mckesson Corp (MCK). AbbVie Inc. (ABBV): Free Stock Analysis Report Invesco Dynamic Pharmaceuticals ETF (PJP) tracks Dynamic Pharmaceutical Intellidex Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 5.93% of total assets, followed by Bristol-Myers Squibb Co (BMY) and Mckesson Corp (MCK). AbbVie Inc. (ABBV): Free Stock Analysis Report Invesco Dynamic Pharmaceuticals ETF (PJP) tracks Dynamic Pharmaceutical Intellidex Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. | AbbVie Inc. (ABBV): Free Stock Analysis Report Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 5.93% of total assets, followed by Bristol-Myers Squibb Co (BMY) and Mckesson Corp (MCK). If you're interested in broad exposure to the Healthcare - Pharma segment of the equity market, look no further than the VanEck Pharmaceutical ETF (PPH), a passively managed exchange traded fund launched on 12/20/2011. |
23333.0 | 2022-06-13 00:00:00 UTC | Top Analyst Reports for Berkshire Hathaway, AbbVie & TotalEnergies | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-berkshire-hathaway-abbvie-totalenergies | nan | nan | Monday, June 13, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. (ABBV), and TotalEnergies SE (TTE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Berkshire Hathaway shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+1.1% vs. -3.3%). The company is one of the largest property and casualty insurance companies measured by premium volume. Berkshire's inorganic growth story remains impressive with strategic acquisitions. A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company's financial flexibility. Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity.
The non-insurance businesses are delivering improved results with increased revenues over the past few years. A sturdy capital level provides further impetus. However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of Berkshire. Huge capital expenditure remains a headwind for the company.
(You an read the full research report on Berkshire Hathaway here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). The Zacks analyst believes that the company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. Skyrizi and Rinvoq are going strong bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential.
Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential. However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. AbbVie’s shares have outperformed the industry this year so far.
(You an read the full research report on AbbVie here >>>)
TotalEnergies shares have gained +44.3% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +19.0%. The Zacks analyst believes that the company is gaining from new startups, increase in commodity prices, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon producing regions. TTE streamlines its portfolio through acquisitions, partnerships and divestitures. TTE is making regular investments to expand renewable operation and aims to achieve net-zero emission by 2050.
TTE has enough liquidity to meet debt obligations. However, TTE’s profitability is likely to have been impacted by natural decline in the oil and natural gas fields. TTE remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TTE has operations in some politically-troubled regions and the ongoing Russia and Ukraine conflict might affect profitability.
(You an read the full research report on TotalEnergies here >>>)
Other noteworthy reports we are featuring today include Linde plc (LIN), NextEra Energy, Inc. (NEE), and AT&T Inc. (T).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Berkshire (BRK.B) Continues to Gain From Insurance Business
AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Featured Reports
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. However, rising cost of sales concerns the Zacks analyst.
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Per the Zacks analyst, NextEra's planned capital investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
AT&T (T) to Gain from Increasing Subscriber Base & 5G Boom
Per the Zacks analyst, AT&T's performance is gaining from growing subscriber base. Continued investments to deliver 5G capabilities for new use cases for its subscriber base bodes well.
Freight Demand Aids Canadian National (CNI), Low Volumes Ail
Per the Zacks analyst, Canadian National's top line is benefiting from strong freight demand and high freight rates. However, supply chain disruptions are hurting the company's volumes.
Network Software Business Aids Roper (ROP), High Debt Hurts
Per the Zacks analyst, strength across Roper's network software and medical product businesses will lend momentum to the company. However, the company's high debt level remains concerning.
Investment in Brands Portfolio to Power Brown-Forman (BF.B)
Per the Zacks analyst, Brown-Forman focuses on investing in the diversification of brand portfolio. Brand investments include expanding the Jack Daniel's the fast-growing spirits.
Solid Comps & Expansion Efforts Aid Restaurant Brands (QSR)
Per the Zacks analyst, Restaurant Brands' solid expansion efforts, various sales building strategies and robust comps is likely to benefit Restaurant Brands.
New Upgrades
PetroChina (PTR) to Benefit from Natural Gas Business
The Zacks analyst believes that PetroChina's natural gas business offers lucrative growth prospects in the coming years as China moves from coal to the cleaner fuel for environmental reasons.n
Innovations Aid Integra (IART), Global Busienss Broadens
Per the Zacks analyst, Integra's innovations and strategic market expansion efforts globally, are helping it offset the impact of the high inflation and supply disruptions.
Oasis (OAS) to Gain from Combination with Whiting Petroleum
The Zacks analyst likes Oasis Petroleum's impending 'merger of equals' with Whiting Petroleum that is expected to create a leading Williston Basin operator with top tier assets.
New Downgrades
Interest Rates Hike, Regulations Ail PPL Corporation (PPL)
Per the Zacks analyst PPL Corp.'s project cost will increase with the rise in interest rates, adherence to the stringent regulation will increase expenses and impact financial performance.
Russia, Currency Headwinds to Hurt Autodesk's (ADSK) Sales
Per the Zacks analyst, the halt of business in Russia along with unfavorable currency exchange rates are anticipated to negatively impact Autodesk's revenues in the near-term.
Dependence on Fee Income to Hamper BNY Mellon (BK) Profits
Per the Zacks analyst, BNY Mellon's higher dependence on fee-based revenues is worrisome on given the current bearish markets, slowdown in capital market activities and recessionary fears.
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NextEra Energy, Inc. (NEE): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Linde plc (LIN): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Berkshire (BRK.B) Continues to Gain From Insurance Business AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE) Featured Reports Linde's (LIN) Contracts With Minimum Volume Requirements Aid Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. (ABBV), and TotalEnergies SE (TTE). (You an read the full research report on Berkshire Hathaway here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). | Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. (ABBV), and TotalEnergies SE (TTE). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Berkshire (BRK.B) Continues to Gain From Insurance Business AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE) Featured Reports Linde's (LIN) Contracts With Minimum Volume Requirements Aid Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. (You an read the full research report on Berkshire Hathaway here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). | (You an read the full research report on AbbVie here >>>) TotalEnergies shares have gained +44.3% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +19.0%. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Berkshire (BRK.B) Continues to Gain From Insurance Business AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE) Featured Reports Linde's (LIN) Contracts With Minimum Volume Requirements Aid Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. (ABBV), and TotalEnergies SE (TTE). | (You an read the full research report on AbbVie here >>>) TotalEnergies shares have gained +44.3% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +19.0%. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. (ABBV), and TotalEnergies SE (TTE). (You an read the full research report on Berkshire Hathaway here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +15.8%). |
23334.0 | 2022-06-13 00:00:00 UTC | AbbVie Enters Oversold Territory | ABBV | https://www.nasdaq.com/articles/abbvie-enters-oversold-territory | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV entered into oversold territory, changing hands as low as $140.1218 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of AbbVie Inc, the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABBV's recent annualized dividend of 5.64/share (currently paid in quarterly installments) works out to an annual yield of 3.94% based upon the recent $143.20 share price.
A bullish investor could look at ABBV's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABBV's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV entered into oversold territory, changing hands as low as $140.1218 per share. | In the case of AbbVie Inc, the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.4. Indeed, ABBV's recent annualized dividend of 5.64/share (currently paid in quarterly installments) works out to an annual yield of 3.94% based upon the recent $143.20 share price. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of AbbVie Inc, the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.4. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV entered into oversold territory, changing hands as low as $140.1218 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV entered into oversold territory, changing hands as low as $140.1218 per share. |
23335.0 | 2022-06-12 00:00:00 UTC | Top Biotech Stocks To Invest In Today? 3 To Watch This Week | ABBV | https://www.nasdaq.com/articles/top-biotech-stocks-to-invest-in-today-3-to-watch-this-week | nan | nan | Are These The Best Biotech Stocks To Buy Right Now?
Even with inflation data coming in hotter-than-expected, investors would likely be looking for the most active stocks today. Should this be the case, biotech stocks would make for a viable option in the stock market now. For the most part, this would be the case as the industry continues to churn out new developmental pipeline updates. The likes of which can act as catalysts for the top biotech stocks around. For one thing, companies gaining momentum from regulatory updates could draw attention as markets react to the latest inflation figures.
For those unaware, the Bureau of Labor Statistics’ Consumer Price Index (CPI) reading for May has been released this past week. According to the report, the CPI for May is up by 8.6% year-over-year. This would be above consensus economist estimates of an 8.3% increase. Not to mention, it would also be the biggest jump in this key inflationary measure since 1981. With inflation at a 40-year high, more adventurous investors could be considering the headline-making names in the biotech space now.
Take Bluebird bio (NASDAQ: BLUE) for example. Just last week, the company received a positive update on its gene therapy, eli-cel. According to Bluebird, the U.S. Food and Drug Administration’s (FDA) advisory committee unanimously endorsed the treatment for use in early active cerebral adrenoleukodystrophy. At the same time, coronavirus vaccine makers such as Moderna (NASDAQ: MRNA) are also hard at work. Earlier this week, the company revealed that its updated booster shot produces stronger responses against the Omicron variant of the virus. With all that in mind, here are three more biotech stocks to note in the stock market today.
Biotech Stocks To Buy [Or Sell] This Month
Pfizer Inc. (NYSE: PFE)
AbbVie Inc. (NYSE: ABBV)
Novavax Inc. (NASDAQ: NVAX)
Pfizer Inc.
Pfizer is a biotech company that continues to bring life-saving therapies, medicines, and vaccines to the masses. With over 170 years of experience in the industry, it advances wellness and treatments for some of the most challenging diseases in today’s society. This includes its coronavirus vaccine with over 2 billion doses shipped across the globe.
On Thursday, the company announced that it has completed the acquisition of ReViral. ReViral is a private clinical-stage biopharmaceutical company. It focuses on discovering and commercializing novel antiviral therapeutics that target respiratory syncytial virus (RSV). Accordingly, ReViral brings to Pfizer a portfolio of promising therapeutic candidates, including sisunatovir, an orally administered inhibitor designed to block fusion of the RSV virus to the host cell. Sisunatovir has fast-track designation by the U.S. FDA. It has significantly reduced viral load in a phase 2 RSV human challenge study in healthy adults. The treatment is also currently in phase 2 clinical development in infants.
Also, Pfizer recently announced that it plans to invest $120 million to produce its Paxlovid oral treatment for the coronavirus. In brief, the investment will expand on the production of active pharmaceutical ingredients (API) and registered starting materials. These are used in the manufacturing of nirmatrelvir, which makes up one component of Paxlovid. The investment will help expand the facility at Kalamazoo, Michigan. Given all of this, is PFE stock worth investing in right now?
Source: TD Ameritrade TOS
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AbbVie Inc.
Following that, we have AbbVie, a health care company that discovers and develops innovative medicines that help solve serious health issues that plague the world today. It has an impressive portfolio of therapeutics across several key fields like oncology and immunology. The company has been firing on all cylinders lately with multiple announcements of positive findings in the last few months.
Notably, this would include positive results from its Phase 3 SELECT-AXIS 2 Trials of Upadacitinib. Diving in, it demonstrated significantly greater improvements in signs and symptoms, pain, function, and health-related quality of life when compared to a placebo at week 14. Furthermore, safety data were consistent with the known safety profile of upadacitinib, with no new risks observed. “The new data observed from SELECT-AXIS 2 reinforce the potential of upadacitinib for patients across the spectrum of axial spondyloarthritis disease,” said Neil Gallagher, M.D., Ph.D., vice president, development, chief medical officer, AbbVie. “At AbbVie, the needs of patients drive us to continue to innovate new ways to change the treatment landscape. We are encouraged by these positive data, which we hope will lead to the availability of a new treatment option for patients with nr-axSpA.”
Last week, it also announced new data from Cohort 3 of its Phase 2 REFINE study of investigational navitoclax. Navitoclax is used for patients with myelofibrosis (MF), a rare and difficult to treat blood cancer. The data is supportive of early intervention in MF to achieve improved clinical outcomes in spleen volume reduction, symptoms score, and bone marrow fibrosis. With all this in mind, is ABBV stock a buy in your opinion?
Source: TD Ameritrade TOS
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Novavax Inc.
Another notable player in the biotech space now would be Novavax. Overall, the biotech company specializes in developing vaccines to treat infectious diseases. As it stands, the company’s portfolio consists of vaccines for Ebola, influenza, and respiratory syncytial virus among other emerging infectious illnesses. Also worth noting, the company is actively working on a coronavirus vaccine. Thanks to the latest developments on this front, NVAX stock could be worth looking out for.
In detail, Novavax received the green light from the FDA’s advisory panel regarding the use of its coronavirus vaccine in adults. Following a 21 to 0 vote, the FDA is now recommending the company’s shot for Emergency Use Authorization (EUA). This would make Novavax the fourth company to receive this regulatory feat. Moreover, it is also the first protein-based coronavirus vaccine available in the U.S.
All in all, CEO Stanley Erck notes that the advisory panel’s positive comments showcase the strength in Novavax’s clinical data. On top of that, the also argues that it highlights the importance of protein-based coronavirus vaccine development. With this being a more conventional means of vaccine development, health officials could be appealing to the unvaccinated population now. After taking all this into consideration, will you be adding NVAX stock to your portfolio anytime soon?
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. | “The new data observed from SELECT-AXIS 2 reinforce the potential of upadacitinib for patients across the spectrum of axial spondyloarthritis disease,” said Neil Gallagher, M.D., Ph.D., vice president, development, chief medical officer, AbbVie. Biotech Stocks To Buy [Or Sell] This Month Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Pfizer Inc. Pfizer is a biotech company that continues to bring life-saving therapies, medicines, and vaccines to the masses. 4 Metaverse Stocks To Watch AbbVie Inc. | Biotech Stocks To Buy [Or Sell] This Month Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Pfizer Inc. Pfizer is a biotech company that continues to bring life-saving therapies, medicines, and vaccines to the masses. 4 Metaverse Stocks To Watch AbbVie Inc. Following that, we have AbbVie, a health care company that discovers and develops innovative medicines that help solve serious health issues that plague the world today. | Biotech Stocks To Buy [Or Sell] This Month Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Pfizer Inc. Pfizer is a biotech company that continues to bring life-saving therapies, medicines, and vaccines to the masses. 4 Metaverse Stocks To Watch AbbVie Inc. Following that, we have AbbVie, a health care company that discovers and develops innovative medicines that help solve serious health issues that plague the world today. | Biotech Stocks To Buy [Or Sell] This Month Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Pfizer Inc. Pfizer is a biotech company that continues to bring life-saving therapies, medicines, and vaccines to the masses. 4 Metaverse Stocks To Watch AbbVie Inc. Following that, we have AbbVie, a health care company that discovers and develops innovative medicines that help solve serious health issues that plague the world today. |
23336.0 | 2022-06-11 00:00:00 UTC | AbbVie : Phase 2 Trial Of Epcoritamab Shows Clinically Meaningful Efficacy In Large B-cell Lymphoma | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-phase-2-trial-of-epcoritamab-shows-clinically-meaningful-efficacy-in-large-b-cell | nan | nan | (RTTNews) - AbbVie (ABBV) said results from phase 2 trial of investigational epcoritamab (DuoBody-CD3xCD20) in patients with Relapsed/Refractory Large B-cell Lymphoma showed clinically meaningful efficacy.
In the study, the nvestigational subcutaneous bispecific antibody epcoritamab demonstrated efficacy with durable responses in patients who had previously received at least two prior lines of anti-lymphoma therapy including chimeric antigen receptor (CAR) T-cell therapy.
The study cohort, which included 157 relapsed/refractory LBCL patients, previously treated with a median of three lines of prior therapy, demonstrated an overall response rate (ORR) of 63 percent and a complete response rate of 39 percent.
The safety profile of epcoritamab was consistent with previous findings.
Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. The companies remain committed to evaluating epcoritamab as a monotherapy, and in combination, across lines of therapy for a variety of hematologic malignancies, including an ongoing phase 3, open-label, randomized trial evaluating epcoritamab as a monotherapy in patients with relapsed/refractory diffuse large B-cell lymphoma, AbbVie said in a statement.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said results from phase 2 trial of investigational epcoritamab (DuoBody-CD3xCD20) in patients with Relapsed/Refractory Large B-cell Lymphoma showed clinically meaningful efficacy. The companies remain committed to evaluating epcoritamab as a monotherapy, and in combination, across lines of therapy for a variety of hematologic malignancies, including an ongoing phase 3, open-label, randomized trial evaluating epcoritamab as a monotherapy in patients with relapsed/refractory diffuse large B-cell lymphoma, AbbVie said in a statement. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. | (RTTNews) - AbbVie (ABBV) said results from phase 2 trial of investigational epcoritamab (DuoBody-CD3xCD20) in patients with Relapsed/Refractory Large B-cell Lymphoma showed clinically meaningful efficacy. The companies remain committed to evaluating epcoritamab as a monotherapy, and in combination, across lines of therapy for a variety of hematologic malignancies, including an ongoing phase 3, open-label, randomized trial evaluating epcoritamab as a monotherapy in patients with relapsed/refractory diffuse large B-cell lymphoma, AbbVie said in a statement. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. | The companies remain committed to evaluating epcoritamab as a monotherapy, and in combination, across lines of therapy for a variety of hematologic malignancies, including an ongoing phase 3, open-label, randomized trial evaluating epcoritamab as a monotherapy in patients with relapsed/refractory diffuse large B-cell lymphoma, AbbVie said in a statement. (RTTNews) - AbbVie (ABBV) said results from phase 2 trial of investigational epcoritamab (DuoBody-CD3xCD20) in patients with Relapsed/Refractory Large B-cell Lymphoma showed clinically meaningful efficacy. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. | (RTTNews) - AbbVie (ABBV) said results from phase 2 trial of investigational epcoritamab (DuoBody-CD3xCD20) in patients with Relapsed/Refractory Large B-cell Lymphoma showed clinically meaningful efficacy. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. The companies remain committed to evaluating epcoritamab as a monotherapy, and in combination, across lines of therapy for a variety of hematologic malignancies, including an ongoing phase 3, open-label, randomized trial evaluating epcoritamab as a monotherapy in patients with relapsed/refractory diffuse large B-cell lymphoma, AbbVie said in a statement. |
23337.0 | 2022-06-11 00:00:00 UTC | 2 Best Biotech Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-best-biotech-stocks-to-buy-right-now | nan | nan | The launch of quality healthcare services and products over the past several decades has had an overwhelmingly positive impact on society. That's because these goods and services can prevent or treat many chronic medical conditions, which has resulted in an improved quality of life for many patients.
Here are two established pharma stocks whose products have played important roles in the lives of millions of patients around the world. Let's dig into why each stock appears to currently be a buy for dividend investors.
Image source: Getty Images.
1. Amgen
Amgen's (NASDAQ: AMGN) $131.5 billion market capitalization comfortably makes it a large-cap stock. Unsurprisingly, the company enjoys both a stacked drug portfolio and a deep pipeline of drugs.
Amgen's portfolio included 28 drugs in the first quarter of 2022. And nine of these drugs are on track to generate at least $1 billion in revenue for the year. Six of these nine drugs recorded revenue growth in the first quarter. This was led by double-digit growth from the cholesterol-lowering drug Repatha, osteoporosis drug Prolia, and multiple myeloma drug Kyprolis.
This explains how Amgen's revenue grew 5.7% year over year in the first quarter to $6.2 billion. And aside from the company's current drug portfolio, Amgen has 38 compounds in different stages of clinical trials. These compounds are spread across such therapeutic areas as oncology, inflammation, and bone. That's why analysts believe Amgen will generate 7.1% annual earnings growth through the next five years.
And Amgen's market-beating 3.2% dividend yield appears to be sustainable. This is because the stock's dividend payout ratio will be 44.5% in 2022, which gives Amgen the flexibility to grow its dividend in line with its earnings. This should lead to high-single-digit annual dividend growth over the medium term, which makes the stock an attractive mix of both current and future income.
Amgen isn't one of the most compelling values out there. But at a forward price-to-earnings (P/E) ratio of 14.1, the stock is trading at a similar valuation to the 13.4 forward P/E ratio of its pharmaceutical peers. That's why Amgen looks like a buy for dividend growth investors at the current $246 share price.
2. Merck
Merck's (NYSE: MRK) $224.5 billion market cap comfortably makes it a mega-cap stock. This isn't shocking considering that the company's product Keytruda is the top-selling cancer drug in the world -- and the second-highest-grossing drug in the world behind immunology drug Humira. And when AbbVie's U.S. patent for Humira expires in 2023, Keytruda will likely claim its spot as the overall best-selling drug in the world.
But what many investors overlook is that Merck is much more than the $4.8 billion in revenue that Keytruda produced in the first quarter of 2022. The company's COVID-19 antiviral treatment Lagevrio recorded $3.2 billion in revenue during the quarter. And Merck's human papilloma virus vaccine Gardasil logged $1.5 billion in revenue in the first quarter, which was a double-digit growth rate over the prior year. Finally, Merck's animal health segment posted $1.5 billion in revenue during the quarter. This was a 4.5% year-over-year growth rate.
And with a late-stage pipeline of 106 projects, Merck boasts a diversified drug portfolio of tomorrow. This is why analysts are projecting 11.6% annual earnings growth for the next five years.
The company's 3.1% dividend yield also seems to be safe. That's because the stock's dividend payout ratio will be 37.6% in 2022. This should allow for healthy dividend growth moving forward.
Merck looks like a downright bargain in the pharmaceutical industry. The stock's forward P/E ratio of 12.1 is moderately lower than the industry average of 13.4. Merck's quality and valuation make it a dividend stock that you can buy now and forget.
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Kody Kester has positions in AbbVie, Amgen, and Merck & Co. 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. | And when AbbVie's U.S. patent for Humira expires in 2023, Keytruda will likely claim its spot as the overall best-selling drug in the world. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Kody Kester has positions in AbbVie, Amgen, and Merck & Co. That's because these goods and services can prevent or treat many chronic medical conditions, which has resulted in an improved quality of life for many patients. | And when AbbVie's U.S. patent for Humira expires in 2023, Keytruda will likely claim its spot as the overall best-selling drug in the world. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Kody Kester has positions in AbbVie, Amgen, and Merck & Co. Amgen Amgen's (NASDAQ: AMGN) $131.5 billion market capitalization comfortably makes it a large-cap stock. | See the 10 stocks *Stock Advisor returns as of June 2, 2022 Kody Kester has positions in AbbVie, Amgen, and Merck & Co. And when AbbVie's U.S. patent for Humira expires in 2023, Keytruda will likely claim its spot as the overall best-selling drug in the world. Amgen Amgen's (NASDAQ: AMGN) $131.5 billion market capitalization comfortably makes it a large-cap stock. | And when AbbVie's U.S. patent for Humira expires in 2023, Keytruda will likely claim its spot as the overall best-selling drug in the world. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Kody Kester has positions in AbbVie, Amgen, and Merck & Co. This is because the stock's dividend payout ratio will be 44.5% in 2022, which gives Amgen the flexibility to grow its dividend in line with its earnings. |
23338.0 | 2022-06-10 00:00:00 UTC | AbbVie : Data Shows Venclyxto/Venclexta Combination Sustained PFS In Chronic Lymphocytic Leukemia | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-data-shows-venclyxto-venclexta-combination-sustained-pfs-in-chronic-lymphocytic | nan | nan | (RTTNews) - AbbVie (ABBV) announced five-year follow-up results from the phase 3 CLL14 trial, finding that more than 60 percent of patients with previously untreated chronic lymphocytic leukemia or CLL who had received one-year fixed-duration combination treatment of Venclyxto/Venclexta (venetoclax) plus obinutuzumab (Gazyva) continued to show longer progression-free survival and higher rates of undetectable minimal residual disease or MRD after four years off treatment.
Data showed that after more than five years of median follow-up, progression-free survival remained significantly superior among patients treated with the Venclyxto/Venclexta and obinutuzumab combination compared to the chlorambucil and obinutuzumab chemotherapy regimen. At five years after randomization, the estimated PFS rate after one-year fixed-duration treatment was 62.6 percent for the Venclyxto/Venclexta-based combination compared to 27.0 percent for the chlorambucil combination.
Venclyxto/Venclexta is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S.
The estimated overall survival rate was 81.9 percent in the Venclyxto/Venclexta-based combination and 77.0 percent in the chlorambucil combination group at five years after randomization.
No new safety signals were observed in the five-year follow-up analysis. The most frequently occurring serious adverse reactions (>=2%) in patients receiving the Venclyxto/Venclexta-based combination were pneumonia, sepsis, febrile neutropenia, and tumor lysis syndrome.
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 five-year follow-up results from the phase 3 CLL14 trial, finding that more than 60 percent of patients with previously untreated chronic lymphocytic leukemia or CLL who had received one-year fixed-duration combination treatment of Venclyxto/Venclexta (venetoclax) plus obinutuzumab (Gazyva) continued to show longer progression-free survival and higher rates of undetectable minimal residual disease or MRD after four years off treatment. Venclyxto/Venclexta is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) announced five-year follow-up results from the phase 3 CLL14 trial, finding that more than 60 percent of patients with previously untreated chronic lymphocytic leukemia or CLL who had received one-year fixed-duration combination treatment of Venclyxto/Venclexta (venetoclax) plus obinutuzumab (Gazyva) continued to show longer progression-free survival and higher rates of undetectable minimal residual disease or MRD after four years off treatment. Venclyxto/Venclexta is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) announced five-year follow-up results from the phase 3 CLL14 trial, finding that more than 60 percent of patients with previously untreated chronic lymphocytic leukemia or CLL who had received one-year fixed-duration combination treatment of Venclyxto/Venclexta (venetoclax) plus obinutuzumab (Gazyva) continued to show longer progression-free survival and higher rates of undetectable minimal residual disease or MRD after four years off treatment. Venclyxto/Venclexta is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. (RTTNews) - AbbVie (ABBV) announced five-year follow-up results from the phase 3 CLL14 trial, finding that more than 60 percent of patients with previously untreated chronic lymphocytic leukemia or CLL who had received one-year fixed-duration combination treatment of Venclyxto/Venclexta (venetoclax) plus obinutuzumab (Gazyva) continued to show longer progression-free survival and higher rates of undetectable minimal residual disease or MRD after four years off treatment. Venclyxto/Venclexta is being developed by AbbVie and Roche. |
23339.0 | 2022-06-10 00:00:00 UTC | EXCLUSIVE-CVC explores $2 billion sale of software firm VelocityEHS -sources | ABBV | https://www.nasdaq.com/articles/exclusive-cvc-explores-%242-billion-sale-of-software-firm-velocityehs-sources | nan | nan | By Emma-Victoria Farr and Krystal Hu
June 10 (Reuters) - Private equity firm CVC Capital Partners is exploring a sale of VelocityEHS for as much as $2 billion, seeking to capitalize on a boom in demand for compliance software in the corporate world, three people familiar with the matter said.
CVC is working with U.S. investment bank William Blair on a sale process for VelocityEHS, which provides cloud-based applications to help businesses comply with environmental, health and safety (EHS) regulations, the sources said.
The buyout firm has requested indicative bids in the coming week for the Chicago-based company and is willing to entertain bids either for control of VelocityEHS or for a significant minority stake, the sources added.
The sources requested anonymity because the matter is confidential. CVC and William Blair declined to comment.
The size of the global EHS market is expected to grow by $2.8 billion from 2021 to 2026, according to a report by market research firm Technavio.
Luxembourg-based CVC bought VelocityEHS in 2017 through its growth equity fund. The business was carved out of Actua Corporation and sold to CVC along with insurance distribution software firm Bolt Solutions for a total of $328 million.
Since then, CVC has expanded VelocityEHS through a string of bolt-on acquisitions, including the purchase of work software vendor OneLook Systems.
VelocityEHS serves more than 19,000 business customers across manufacturing, pharmaceutical and energy industries, including AbbVie ABBV.N and Chesapeake Energy CHK.O.
(Reporting by Emma-Victoria Farr in London and Krystal Hu in Toronto Editing by Pamela Barbaglia and Matthew Lewis)
((emma-victoria.farr@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. | VelocityEHS serves more than 19,000 business customers across manufacturing, pharmaceutical and energy industries, including AbbVie ABBV.N and Chesapeake Energy CHK.O. CVC is working with U.S. investment bank William Blair on a sale process for VelocityEHS, which provides cloud-based applications to help businesses comply with environmental, health and safety (EHS) regulations, the sources said. The business was carved out of Actua Corporation and sold to CVC along with insurance distribution software firm Bolt Solutions for a total of $328 million. | VelocityEHS serves more than 19,000 business customers across manufacturing, pharmaceutical and energy industries, including AbbVie ABBV.N and Chesapeake Energy CHK.O. By Emma-Victoria Farr and Krystal Hu June 10 (Reuters) - Private equity firm CVC Capital Partners is exploring a sale of VelocityEHS for as much as $2 billion, seeking to capitalize on a boom in demand for compliance software in the corporate world, three people familiar with the matter said. CVC is working with U.S. investment bank William Blair on a sale process for VelocityEHS, which provides cloud-based applications to help businesses comply with environmental, health and safety (EHS) regulations, the sources said. | VelocityEHS serves more than 19,000 business customers across manufacturing, pharmaceutical and energy industries, including AbbVie ABBV.N and Chesapeake Energy CHK.O. By Emma-Victoria Farr and Krystal Hu June 10 (Reuters) - Private equity firm CVC Capital Partners is exploring a sale of VelocityEHS for as much as $2 billion, seeking to capitalize on a boom in demand for compliance software in the corporate world, three people familiar with the matter said. CVC is working with U.S. investment bank William Blair on a sale process for VelocityEHS, which provides cloud-based applications to help businesses comply with environmental, health and safety (EHS) regulations, the sources said. | VelocityEHS serves more than 19,000 business customers across manufacturing, pharmaceutical and energy industries, including AbbVie ABBV.N and Chesapeake Energy CHK.O. By Emma-Victoria Farr and Krystal Hu June 10 (Reuters) - Private equity firm CVC Capital Partners is exploring a sale of VelocityEHS for as much as $2 billion, seeking to capitalize on a boom in demand for compliance software in the corporate world, three people familiar with the matter said. CVC is working with U.S. investment bank William Blair on a sale process for VelocityEHS, which provides cloud-based applications to help businesses comply with environmental, health and safety (EHS) regulations, the sources said. |
23340.0 | 2022-06-10 00:00:00 UTC | 3 Dividend Stocks to Buy Now for 20 Years of Income Growth | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-now-for-20-years-of-income-growth | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividends can be an important source of income for investors. Consider that Warren Buffett earns more than $4 billion a year in dividend payments from his vast stock holdings, including more than $500 million from his position in Coca-Cola (NYSE:KO) alone, and you get an idea of the ways in which dividend stocks can add up and help investors build wealth.
And not all dividend stocks are the same. Some companies hardly pay any dividend, while others are extremely generous in an effort to attract and retain shareholders. While the average dividend yield among U.S. publicly traded companies is less than 2%, there are some companies that pay double or even triple that amount. The key is to know where to look to find lucrative dividend payments.
7 Top-Rated Large-Cap Stocks to Buy and Hold
Here are three dividend stocks to buy now for 20 years of income growth.
ABBV AbbVie $149.42
KMI Kinder Morgan $19.50
IBM IBM $140.30
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is a leading pharmaceutical company based in Chicago that is perhaps best known for its blockbuster medication Humira that is primarily used to treat arthritis and is the world’s bestselling prescription drug with annual sales in 2021 of $20.7 billion.
ABBV stock has been a top performer over the past five years, gaining 114% to trade at $149.42 per share. Even this year, the stock is up 10% compared to a 14% decline in the S&P 500 index. The share price gains alone would be reason to buy AbbVie stock. But, as an added bonus, the company pays a stellar quarterly dividend to shareholders.
AbbVie boats a 3.8% dividend yield, which is good for a quarterly payout of $1.41 a share. That’s a strong payout given that the average dividend yield among companies listed in the S&P 500 index is just 1.37%. Plus, AbbVie is a “Dividend King,” having raised its quarterly payout for 50 consecutive years, including when the company was part of medical-device firm Abbott Laboratories (NYSE:ABT). The combination of strong sales, stock gains, and dividend payments makes ABBV stock a definite buy.
Kinder Morgan (KMI)
Source: JHVEPhoto / Shutterstock.com
Houston, Texas-based Kinder Morgan (NYSE:KMI) builds and operates oil and natural gas pipelines. As might be expected, business is booming for the company this year with prices for both oil and natural gas at multiyear highs.
Year to date, KMI stock is up 23% but remains affordable at just $19.50 a share. While this year’s gains are impressive given the downturn in the broader market, what is truly eye catching about this company is its dividend payment, which is among the highest of any publicly traded company.
Currently, Kinder Morgan offers shareholders a dividend yield of 5.5%, which equals a quarterly payout of 27.75 cents a share. Even among energy stocks that are known for having above average dividends, Kinder Morgan’s payment stands out. The company expects to distribute $2.5 billion in dividends this year, which is equal to about 56% of its 2021 free cash flow.
7 High-Yielding Monthly Dividend Stocks to Buy in June
Another reason to like KMI stock is the company’s positive earnings. In its most recent print, Kinder Morgan reported earnings per share of 32 cents, beating analyst expectations for 29 cents.
International Business Machines (IBM)
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You wouldn’t buy IBM (NYSE:IBM) stock for its performance. At $140.30, shares of Big Blue are 5% lower today than they were five years ago. A decade ago, the stock was trading near $200. While the shares have underperformed for a long time, the company has tried to compensate for the lackluster results, and hold investor interest, through a robust dividend that currently yields 4.7%, which is good for a quarterly disbursement of $1.65 a share.
Investors looking for a steady stream of passive income might want to consider taking a position in IBM stock. The Armonk, New York-based company recently raised its dividend by 13%, marking 26 consecutive years that it has hiked its quarterly payout.
And while IBM stock has lagged the market, there is hope on the horizon after the company spun off its legacy information technology consulting business and turned its focus instead to more profitable enterprises such as cloud computing and artificial intelligence.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Dividend Stocks to Buy Now for 20 Years of Income Growth 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. | Plus, AbbVie is a “Dividend King,” having raised its quarterly payout for 50 consecutive years, including when the company was part of medical-device firm Abbott Laboratories (NYSE:ABT). ABBV AbbVie $149.42 KMI Kinder Morgan $19.50 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading pharmaceutical company based in Chicago that is perhaps best known for its blockbuster medication Humira that is primarily used to treat arthritis and is the world’s bestselling prescription drug with annual sales in 2021 of $20.7 billion. | The combination of strong sales, stock gains, and dividend payments makes ABBV stock a definite buy. ABBV AbbVie $149.42 KMI Kinder Morgan $19.50 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading pharmaceutical company based in Chicago that is perhaps best known for its blockbuster medication Humira that is primarily used to treat arthritis and is the world’s bestselling prescription drug with annual sales in 2021 of $20.7 billion. | ABBV AbbVie $149.42 KMI Kinder Morgan $19.50 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading pharmaceutical company based in Chicago that is perhaps best known for its blockbuster medication Humira that is primarily used to treat arthritis and is the world’s bestselling prescription drug with annual sales in 2021 of $20.7 billion. ABBV stock has been a top performer over the past five years, gaining 114% to trade at $149.42 per share. | ABBV AbbVie $149.42 KMI Kinder Morgan $19.50 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a leading pharmaceutical company based in Chicago that is perhaps best known for its blockbuster medication Humira that is primarily used to treat arthritis and is the world’s bestselling prescription drug with annual sales in 2021 of $20.7 billion. ABBV stock has been a top performer over the past five years, gaining 114% to trade at $149.42 per share. |
23341.0 | 2022-06-09 00:00:00 UTC | ABBV July 29th Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-july-29th-options-begin-trading | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 29th contracts and identified one put and one call contract of particular interest.
The put contract at the $145.00 strike price has a current bid of $4.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $145.00, but will also collect the premium, putting the cost basis of the shares at $140.70 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $148.68/share today.
Because the $145.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.97% return on the cash commitment, or 21.65% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $145.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $4.35. If an investor was to purchase shares of ABBV stock at the current price level of $148.68/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $150.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.81% if the stock gets called away at the July 29th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red:
Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.93% boost of extra return to the investor, or 21.36% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $148.68) to be 21%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 29th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 29th expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $145.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $4.35. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 29th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 29th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the July 29th expiration. |
23342.0 | 2022-06-08 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 | nan | nan | Building wealth for retirement is a lot easier when you own shares of companies that can keep growing for years and years without getting topped by rivals or otherwise swept away by the changing winds of the market. For example, mature businesses like AbbVie (NYSE: ABBV) are often especially favorable for retirement savings, due to their stable growth and demonstrated ability to prosper over time.
But slow and steady expansion won't make you a millionaire overnight. There's always a risk that your money will multiply much faster by investing in a company at the very start of its growth journey. Given that it might be necessary to hold shares and wait for years, could a stake in AbbVie be enough to grow your investment into millions?
Image source: Getty Images.
It's a stock that could play a role in many portfolios
As a leading global pharmaceutical company, AbbVie develops and commercializes drugs, and it owns the rights to a smorgasbord of moneymakers like Humira (the world's best-selling drug), Botox, and more. Selling those medicines generated annual revenue in excess of $56.1 billion in 2021, a more than 99% increase compared to five years prior. And more sales from newly launched products are always waiting in the wings. It has 19 programs in phase 3 clinical trials alone, with dozens more in earlier stages of development or in even later stages, currently awaiting regulatory approval.
The benefits of AbbVie's massive pipeline and constantly growing roster of medicines on the market are that investors can count on it to survive and grow over time while also paying out an ever-increasing quarterly dividend and pursuing share buybacks to pump up its stock price. AbbVie's forward dividend yield is presently just above 3.8%, which puts it firmly above the market's average yield of 1.5%. Furthermore, the company has a history of hiking its dividends, and in the last five years, its distribution grew by more than 120%, which is quite good. With plenty of cash flow to cover its dividend and ongoing reductions of its debt load of over $73.6 billion, it's reasonable to expect its payout to keep rising for the foreseeable future.
It's not for getting rich quickly
While dividends can be one part of the stock's ability to make you richer, they aren't going to be enough to make you a millionaire without the benefit of many years of compounding. At its present yield, you'd need to invest more than $2.6 million in AbbVie shares to get a yearly dividend income of $100,000, which isn't exactly an amount of income that screams "I'm a millionaire." And if you don't have that cash up front, you'll need to invest quite a hefty sum to reach millionaire status -- let's model it out quickly to see why.
Per management, the company's earnings per share (EPS) grew at a compound annual growth rate of 19% from 2013 through the end of 2021. If we assume it can grow its earnings at that rate in perpetuity, in 10 years, it'll report EPS of around $39.69. Given that it currently trades at a trailing-12-month price to earnings multiple of around 21.6, those earnings would put its stock price at around $857. At that price, people who invested around $175,000 today would have just over $1 million to show for it.
Of course, you could also invest a smaller amount into AbbVie and wait longer, once again assuming its earnings can actually continue to grow at the moderate pace they have been growing in recent years. Between the rising dividend payment, ongoing share buybacks, and earnings growth, it's entirely plausible that AbbVie stock could help investors turn their savings into millions by the time they retire.
Just don't get too impatient, as the road to wealth is likely to be long, and it's hard to imagine long periods of time passing without significant setbacks and unexpected trends in the market along the way.
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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. | For example, mature businesses like AbbVie (NYSE: ABBV) are often especially favorable for retirement savings, due to their stable growth and demonstrated ability to prosper over time. Between the rising dividend payment, ongoing share buybacks, and earnings growth, it's entirely plausible that AbbVie stock could help investors turn their savings into millions by the time they retire. Given that it might be necessary to hold shares and wait for years, could a stake in AbbVie be enough to grow your investment into millions? | At its present yield, you'd need to invest more than $2.6 million in AbbVie shares to get a yearly dividend income of $100,000, which isn't exactly an amount of income that screams "I'm a millionaire." Between the rising dividend payment, ongoing share buybacks, and earnings growth, it's entirely plausible that AbbVie stock could help investors turn their savings into millions by the time they retire. For example, mature businesses like AbbVie (NYSE: ABBV) are often especially favorable for retirement savings, due to their stable growth and demonstrated ability to prosper over time. | The benefits of AbbVie's massive pipeline and constantly growing roster of medicines on the market are that investors can count on it to survive and grow over time while also paying out an ever-increasing quarterly dividend and pursuing share buybacks to pump up its stock price. At its present yield, you'd need to invest more than $2.6 million in AbbVie shares to get a yearly dividend income of $100,000, which isn't exactly an amount of income that screams "I'm a millionaire." Between the rising dividend payment, ongoing share buybacks, and earnings growth, it's entirely plausible that AbbVie stock could help investors turn their savings into millions by the time they retire. | Given that it might be necessary to hold shares and wait for years, could a stake in AbbVie be enough to grow your investment into millions? At its present yield, you'd need to invest more than $2.6 million in AbbVie shares to get a yearly dividend income of $100,000, which isn't exactly an amount of income that screams "I'm a millionaire." Between the rising dividend payment, ongoing share buybacks, and earnings growth, it's entirely plausible that AbbVie stock could help investors turn their savings into millions by the time they retire. |
23343.0 | 2022-06-07 00:00:00 UTC | What Stocks To Buy Today? 3 Biotech Stocks To Know | ABBV | https://www.nasdaq.com/articles/what-stocks-to-buy-today-3-biotech-stocks-to-know | nan | nan | 3 Top Biotech Stocks For Your June 2022 Watchlist
For investors looking for the most active stocks in the stock market now, biotech stocks could be a go-to. After all, companies across the industry are constantly providing key updates on their latest developmental pipeline advances. Aside from this, there would also be clinical trial results, regulatory updates, and mergers & acquisitions to consider as well. From cancer to COVID-19 among other major illnesses plaguing the world today, these companies are working on pressing matters. Because of this, governments and investors alike would, in theory, be keen to bet on these companies.
For one thing, there also seems to be no shortage of coverage on upcoming names in the biotech world. Take Novavax (NASDAQ: NVAX) for example. Today, the U.S. Food and Drug Administration (FDA) is set to review its Covid-19 vaccine. In detail, the current review will be to consider it as a potential fourth shot for adults in the U.S. On top of that, the panel will also be weighing the risk of myocarditis versus the potential benefits of the two-dose vaccine. As it stands, Novavax’s Covid-19 shot regimen has a 90% efficacy rate against mild to severe symptomatic Covid-19. This would be according to the company’s latest findings.
At the same time, major biotech stocks such as AbbVie (NYSE: ABBV) continue to make headway as well. Just last week, the company posted positive results from its Phase 3 trials of Upadacitinib. This would be its JAK inhibitor treatment that is being studied for use in several immune-mediated inflammatory diseases. If this has you interested in jumping on the top biotech stocks, here are three more for your watchlist this week.
Biotech Stocks To Watch This Week
GlaxoSmithKline plc (NYSE: GSK)
Pfizer Inc. (NYSE: PFE)
Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
GlaxoSmithKline plc.
Starting us off today, we have GSK or formerly known as GlaxoSmithKline, a biopharmaceutical company with headquarters in the U.K. In fact, the company helps improve the health of millions of people around the world by discovering, developing, and manufacturing innovative medicines, vaccines, and consumer health care products. Impressively, it is also one of the largest vaccine companies in the world, with a portfolio of more than 20 vaccines to help protect people from a range of diseases.
On June 6, 2022, the company announced that the U.S. Food and Drug Administration (FDA) has approved Priorix for the prevention of measles, mumps, and rubella in individuals 12 months of age and older. Priorix is currently licensed in more than 100 countries worldwide, including all European countries, Canada, Australia, and New Zealand, with more than 800 million doses distributed to date. “We’re proud to make Priorix available in the US for the first time, adding a choice for providers to help protect patients against these highly-contagious diseases and to further strengthen offerings in our pediatric vaccine portfolio,” said Judy Stewart, Senior Vice President and Head of US Vaccines, GSK.
Measles, rubella, and mumps are acute and highly-contagious viral diseases responsible for considerable morbidity and mortality throughout the world. In recent years, measles outbreaks have occurred in the US and globally, with more than 400,000 cases confirmed in 2019, reversing decades of progress toward measles elimination in many countries. Given the resurgence of measles globally and GSK’s vaccine approval, is GSK stock worth investing in right now?
Source: TD Ameritrade TOS
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Pfizer Inc.
Pfizer is a research-based biotech company that continues to bring therapies to people that extend and significantly improve their lives. It does this through the discovery, development, and manufacture of medicines and vaccines. Among its 2021 milestones, it had 8 regulatory approvals and 13 Phase 3 study starts. Also, it has over 80 types of therapies and medicines in its current product pipeline.
On Monday, the company announced that it will invest $120 million to produce its Covid-19 oral treatment in the U.S. It currently aims to do so at its facility in Kalamazoo, Michigan. For one thing, Pfizer’s Paxlovid oral treatment is crucial in the fight against Covid-19. This investment would expand the production of active pharmaceutical ingredients and registered starting materials used to manufacture the pill. Furthermore, the company also plans to expand its Modular Aseptic Processing (MAP) sterile injectable pharmaceutical production facility in Kalamazoo. This would be an additional phase of expansion. The expansion adds to the initial investment of $450 million in phase one to build a 400,000-square-foot production facility and further establishes Kalamazoo as one of the most technically advanced sterile injectable pharmaceutical production facilities in the world.
It also recently announced its first data from a pivotal Phase 2 MagnetisMM-3 registration-enabling trial of elranatamab in people with relapsed/refractory multiple myeloma (RRMM). The safety results suggest a manageable safety profile for elranatamab in this study. After a median follow-up of 3.71 months, initial efficacy results showed that the objective response rate was 60.6%. With this piece of information, is PFE stock worth adding to your radar?
Source: TD Ameritrade TOS
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Regeneron Pharmaceuticals Inc.
Regeneron Pharmaceuticals is a biotech company that invests in life-transforming medicines for people with serious diseases. With over 30 years of experience in the field, the company has brought nine FDA-approved treatments to the market and also numerous product candidates that are in development. All in all, its medicines and pipeline are designed to help patients with cardiovascular and metabolic diseases, infectious diseases, and cancer among others.
On June 2, 2022, Regeneron announced its intent to purchase Sanofi’s stake in the Regeneron and Sanofi collaboration on Libtayo. For those uninitiated, Libtayo is a fully human monoclonal antibody that targets the immune checkpoint receptor PD-1 on T cells. It has been shown to block cancer cells from using the PD-1 pathway to suppress T-cell activation. Should things go according to plan, Regeneron would have exclusive worldwide development, commercialization, and manufacturing rights to the treatment.
In late May, the company also announced that it has completed the acquisition of Checkmate Pharmaceuticals. This would deepen its commitment to immuno-oncology and add a new modality to its portfolio of potential combination-ready approaches for difficult-to-treat cancers. Checkmate’s lead investigational candidate is vidutolimod, an advanced generation agonist delivered in a virus-like particle. It has demonstrated clinical responses as a monotherapy in patients with PD-1 refractory melanoma. All things considered, should you buy REGN stock?
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. | At the same time, major biotech stocks such as AbbVie (NYSE: ABBV) continue to make headway as well. On June 6, 2022, the company announced that the U.S. Food and Drug Administration (FDA) has approved Priorix for the prevention of measles, mumps, and rubella in individuals 12 months of age and older. Furthermore, the company also plans to expand its Modular Aseptic Processing (MAP) sterile injectable pharmaceutical production facility in Kalamazoo. | At the same time, major biotech stocks such as AbbVie (NYSE: ABBV) continue to make headway as well. Biotech Stocks To Watch This Week GlaxoSmithKline plc (NYSE: GSK) Pfizer Inc. (NYSE: PFE) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) GlaxoSmithKline plc. Source: TD Ameritrade TOS [Read More] 5 Cybersecurity Stocks For Your Watchlist Right Now Pfizer Inc. Pfizer is a research-based biotech company that continues to bring therapies to people that extend and significantly improve their lives. | At the same time, major biotech stocks such as AbbVie (NYSE: ABBV) continue to make headway as well. 3 Top Biotech Stocks For Your June 2022 Watchlist For investors looking for the most active stocks in the stock market now, biotech stocks could be a go-to. The expansion adds to the initial investment of $450 million in phase one to build a 400,000-square-foot production facility and further establishes Kalamazoo as one of the most technically advanced sterile injectable pharmaceutical production facilities in the world. | At the same time, major biotech stocks such as AbbVie (NYSE: ABBV) continue to make headway as well. Among its 2021 milestones, it had 8 regulatory approvals and 13 Phase 3 study starts. The expansion adds to the initial investment of $450 million in phase one to build a 400,000-square-foot production facility and further establishes Kalamazoo as one of the most technically advanced sterile injectable pharmaceutical production facilities in the world. |
23344.0 | 2022-06-07 00:00:00 UTC | Warren Buffett Just Sold This Popular Stock -- Should You? | ABBV | https://www.nasdaq.com/articles/warren-buffett-just-sold-this-popular-stock-should-you | nan | nan | When it comes to success with investing, Warren Buffett is hard to one-up, to say the least. But even if you can't outperform him, you just might be able to get (approximately) similar returns by copying his trades or at least dodge some problems by selling when he does.
On that note, in the first quarter of this year, the Oracle of Omaha's company, Berkshire Hathaway (NYSE: BRK.A, BRK.B), sold 100% of his three million AbbVie (NYSE: ABBV) shares with a total value of around $410 million. Contrary to his stated preference of holding stocks for extraordinarily long periods, Buffett only established his position in the company in the third quarter of 2020. And his stake was only around 0.1% of Berkshire Hathaway's portfolio, so it wasn't ever exactly a core holding.
Still, if a stock isn't good enough for Warren Buffett, it's reasonable for investors to wonder whether they should head for the door, too. Let's analyze what might have motivated him to see whether it's relevant to you.
Image source: Getty Images.
What might have motivated Buffett to sell?
For the uninitiated, AbbVie is among the biggest pharmaceutical companies in the world by market cap, clocking in at about $266 billion, and it brought in more than $56 billion in revenue during 2021 alone. It's firmly profitable, and its trailing 12-month revenue increased by more than 112% over the last five years. What's more, its quarterly free cash flow (FCF) grew by 153% in the same period. And to top it off, the total return of its shares in that time was 175%, thrashing the market's return of around 85%.
There are a few things that Buffett probably never liked much about the stock, though. First, AbbVie's debt load of $73.6 billion is quite high. Only around $9.9 billion of that debt is current. And the company is making headway in paying off its long-term debt, too; its net debt issuance over the past 12 onths shows repayment to the tune of nearly $11.3 billion.
But from Buffett's perspective -- and he's correct -- there are many other businesses out there that don't need to devote roughly half of their free cash flow to deleveraging. That means those alternatives could probably grow faster.
In Buffett's view, value should be retained and reinvested within organizations as much as possible. That's another issue he could have with AbbVie as it pays a dividend and spends money to buy back shares of its stock. By distributing excess earnings to shareholders, the company is giving away the resources that could be funneled into growth, which somewhat compromises its long-term value.
Plus, dividends are tax-inefficient (another one of Buffett's pet peeves) as shareholders are taxed both on the company's income and their personal distribution via capital gains. What's more, AbbVie's management prioritizes raising the dividend over time, and the payout has grown by 120% in the last five years. Continuing that trend could please shareholders, but it's a signal to Buffett that there might be under-investment in the company's growth afoot.
The largest and last nail in the coffin for Buffett's AbbVie holdings was probably declining revenue from Humira, the company's blockbuster psoriatic arthritis drug and one of the best-selling drugs of all time. In 2021, Humira was responsible for sales totaling nearly $21 billion. But the drug's exclusivity protections are slated to expire in 2023, and its international sales are already collapsing rapidly.
AbbVie has a pair of other medicines it claims should be able to recoup Humira's market share and total revenue so that the business can keep growing, but Buffett might be skeptical of this plan.
Your situation may be different from Buffett's
If you're invested in AbbVie to capture its ever-rising dividends or its relatively stable growth earned from commercializing new drugs, it may not make sense to follow Warren Buffett's lead and sell your shares. Nor should Buffett's exit dissuade you from purchasing a few shares for the first time to get some additional income.
On the other hand, if you're intent on following his value-investing approach to a T, it's true that AbbVie has enough flaws that -- when taken together -- may constitute a deal-breaker.
Just be aware that to be a true student of Buffett, you should probably wait to sell for at least as long as it takes to get the sale registered as long-term capital gains rather than short-term capital gains. That would enable you to avoid the higher tax rate -- which Buffett would not be a fan of even on the way out the door.
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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. | AbbVie has a pair of other medicines it claims should be able to recoup Humira's market share and total revenue so that the business can keep growing, but Buffett might be skeptical of this plan. On that note, in the first quarter of this year, the Oracle of Omaha's company, Berkshire Hathaway (NYSE: BRK.A, BRK.B), sold 100% of his three million AbbVie (NYSE: ABBV) shares with a total value of around $410 million. For the uninitiated, AbbVie is among the biggest pharmaceutical companies in the world by market cap, clocking in at about $266 billion, and it brought in more than $56 billion in revenue during 2021 alone. | On that note, in the first quarter of this year, the Oracle of Omaha's company, Berkshire Hathaway (NYSE: BRK.A, BRK.B), sold 100% of his three million AbbVie (NYSE: ABBV) shares with a total value of around $410 million. AbbVie has a pair of other medicines it claims should be able to recoup Humira's market share and total revenue so that the business can keep growing, but Buffett might be skeptical of this plan. For the uninitiated, AbbVie is among the biggest pharmaceutical companies in the world by market cap, clocking in at about $266 billion, and it brought in more than $56 billion in revenue during 2021 alone. | The largest and last nail in the coffin for Buffett's AbbVie holdings was probably declining revenue from Humira, the company's blockbuster psoriatic arthritis drug and one of the best-selling drugs of all time. AbbVie has a pair of other medicines it claims should be able to recoup Humira's market share and total revenue so that the business can keep growing, but Buffett might be skeptical of this plan. Your situation may be different from Buffett's If you're invested in AbbVie to capture its ever-rising dividends or its relatively stable growth earned from commercializing new drugs, it may not make sense to follow Warren Buffett's lead and sell your shares. | On that note, in the first quarter of this year, the Oracle of Omaha's company, Berkshire Hathaway (NYSE: BRK.A, BRK.B), sold 100% of his three million AbbVie (NYSE: ABBV) shares with a total value of around $410 million. For the uninitiated, AbbVie is among the biggest pharmaceutical companies in the world by market cap, clocking in at about $266 billion, and it brought in more than $56 billion in revenue during 2021 alone. First, AbbVie's debt load of $73.6 billion is quite high. |
23345.0 | 2022-06-07 00:00:00 UTC | Surprising Analyst 12-Month Target For SDY | ABBV | https://www.nasdaq.com/articles/surprising-analyst-12-month-target-for-sdy | 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 SPDR S&P Dividend ETF (Symbol: SDY), we found that the implied analyst target price for the ETF based upon its underlying holdings is $140.50 per unit.
With SDY trading at a recent price near $127.05 per unit, that means that analysts see 10.59% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SDY's underlying holdings with notable upside to their analyst target prices are Cardinal Health, Inc. (Symbol: CAH), AbbVie Inc (Symbol: ABBV), and SEI Investments Co (Symbol: SEIC). Although CAH has traded at a recent price of $53.74/share, the average analyst target is 13.28% higher at $60.88/share. Similarly, ABBV has 12.60% upside from the recent share price of $146.53 if the average analyst target price of $165.00/share is reached, and analysts on average are expecting SEIC to reach a target price of $63.80/share, which is 10.76% above the recent price of $57.60. Below is a twelve month price history chart comparing the stock performance of CAH, ABBV, and SEIC:
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
SPDR S&P Dividend ETF SDY $127.05 $140.50 10.59%
Cardinal Health, Inc. CAH $53.74 $60.88 13.28%
AbbVie Inc ABBV $146.53 $165.00 12.60%
SEI Investments Co SEIC $57.60 $63.80 10.76%
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. | SPDR S&P Dividend ETF SDY $127.05 $140.50 10.59% Cardinal Health, Inc. CAH $53.74 $60.88 13.28% AbbVie Inc ABBV $146.53 $165.00 12.60% SEI Investments Co SEIC $57.60 $63.80 10.76% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Cardinal Health, Inc. (Symbol: CAH), AbbVie Inc (Symbol: ABBV), and SEI Investments Co (Symbol: SEIC). Similarly, ABBV has 12.60% upside from the recent share price of $146.53 if the average analyst target price of $165.00/share is reached, and analysts on average are expecting SEIC to reach a target price of $63.80/share, which is 10.76% above the recent price of $57.60. | Three of SDY's underlying holdings with notable upside to their analyst target prices are Cardinal Health, Inc. (Symbol: CAH), AbbVie Inc (Symbol: ABBV), and SEI Investments Co (Symbol: SEIC). Similarly, ABBV has 12.60% upside from the recent share price of $146.53 if the average analyst target price of $165.00/share is reached, and analysts on average are expecting SEIC to reach a target price of $63.80/share, which is 10.76% above the recent price of $57.60. SPDR S&P Dividend ETF SDY $127.05 $140.50 10.59% Cardinal Health, Inc. CAH $53.74 $60.88 13.28% AbbVie Inc ABBV $146.53 $165.00 12.60% SEI Investments Co SEIC $57.60 $63.80 10.76% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABBV has 12.60% upside from the recent share price of $146.53 if the average analyst target price of $165.00/share is reached, and analysts on average are expecting SEIC to reach a target price of $63.80/share, which is 10.76% above the recent price of $57.60. Three of SDY's underlying holdings with notable upside to their analyst target prices are Cardinal Health, Inc. (Symbol: CAH), AbbVie Inc (Symbol: ABBV), and SEI Investments Co (Symbol: SEIC). Below is a twelve month price history chart comparing the stock performance of CAH, ABBV, and SEIC: Below is a summary table of the current analyst target prices discussed above: | SPDR S&P Dividend ETF SDY $127.05 $140.50 10.59% Cardinal Health, Inc. CAH $53.74 $60.88 13.28% AbbVie Inc ABBV $146.53 $165.00 12.60% SEI Investments Co SEIC $57.60 $63.80 10.76% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Cardinal Health, Inc. (Symbol: CAH), AbbVie Inc (Symbol: ABBV), and SEI Investments Co (Symbol: SEIC). Similarly, ABBV has 12.60% upside from the recent share price of $146.53 if the average analyst target price of $165.00/share is reached, and analysts on average are expecting SEIC to reach a target price of $63.80/share, which is 10.76% above the recent price of $57.60. |
23346.0 | 2022-06-06 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-2 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $146.53, moving -0.43% from the previous trading session. This change lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the drugmaker had lost 3.7% over the past month. This has lagged the Medical sector's loss of 0.97% and the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $3.43, up 10.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.66 billion, up 5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.02 per share and revenue of $59.63 billion, which would represent changes of +10.39% and +6.11%, respectively, from the prior year.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. AbbVie is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 10.5 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.2.
We can also see that ABBV currently has a PEG ratio of 4.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $146.53, moving -0.43% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $146.53, moving -0.43% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $146.53, moving -0.43% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie is currently a Zacks Rank #3 (Hold). AbbVie (ABBV) closed the most recent trading day at $146.53, moving -0.43% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. |
23347.0 | 2022-06-06 00:00:00 UTC | The Health Care Select Sector SPDR Fund Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/the-health-care-select-sector-spdr-fund-experiences-big-inflow-0 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $908.7 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 292,170,000 to 299,170,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Danaher Corp (Symbol: DHR) is higher by about 0.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $121.21 per share, with $143.42 as the 52 week high point — that compares with a last trade of $130.78. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Danaher Corp (Symbol: DHR) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $908.7 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 292,170,000 to 299,170,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Danaher Corp (Symbol: DHR) is higher by about 0.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $121.21 per share, with $143.42 as the 52 week high point — that compares with a last trade of $130.78. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Danaher Corp (Symbol: DHR) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $908.7 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 292,170,000 to 299,170,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $121.21 per share, with $143.42 as the 52 week high point — that compares with a last trade of $130.78. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is trading flat, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Danaher Corp (Symbol: DHR) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $908.7 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 292,170,000 to 299,170,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $121.21 per share, with $143.42 as the 52 week high point — that compares with a last trade of $130.78. |
23348.0 | 2022-06-05 00:00:00 UTC | 3 Great Dividend Stocks to Buy in June | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-to-buy-in-june | nan | nan | Guess which stocks tend to perform better than most during market downturns? If your answer is solid dividend stocks, you're exactly right.
We asked three Motley Fool contributors to pick great dividend stocks to buy in June. Here's why they chose AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Viatris (NASDAQ: VTRS).
Image source: Getty Images.
The king of big pharma?
Keith Speights (AbbVie): Make no mistake about it: AbbVie is a king. More precisely, the drugmaker is a Dividend King thanks to its 50 consecutive years of dividend increases. This member of royalty is also quite generous, with its dividend yield currently topping 3.8%.
AbbVie has been a solid winner so far in 2022 as well. The stock is up nearly 10%, easily trouncing the major market indexes.
And the future looks great for AbbVie, too. You could even make an argument that the company will soon be crowned as the king of big pharma. Market researcher EvaluatePharma would likely agree. It projects that AbbVie will be the biggest drugmaker in the world in 2028 based on total prescription drug sales.
That prediction might seem suspect considering that AbbVie's top-selling drug Humira loses U.S. exclusivity next year. However, the company thinks that its newer autoimmune-disease drugs Rinvoq and Skyrizi will together generate peak sales even greater than Humira's sales.
AbbVie also has other growth drivers in its lineup. They include blood cancer drug Venclexta, antipsychotic drug Vraylar, and migraine drugs Qulipta and Ubrelvy.
Will AbbVie really reign at the top of the biopharmaceutical world in a few years? Maybe, maybe not. Either way, I have full confidence that the company will continue to offer one of the most attractive dividends around.
A solid dividend and so much more
Prosper Junior Bakiny (Novartis): Seasoned dividend investors know that a high dividend yield and a conservative payout ratio mean little unless they are backed by a solid business. Fortunately, pharma giant Novartis offers all three of those things. The drugmaker currently boasts a dividend yield of nearly 3.7% -- much higher than the S&P 500's average of 1.4%. Novartis' payout ratio of 31% is well below the 60% that is typically considered good; it suggests plenty of room for future payout increases. Further, Novartis benefits from a key advantage it shares with other drugmakers.
Most people don't consider lifesaving medicines to be luxury items. Even during economic downturns, patients are unlikely to cut back on the drugs they need to stay healthy. And in that department, Novartis has plenty to offer. The company's lineup features immunosuppressant Cosentyx, heart failure medicine Entresto, asthma therapy Xolair, and gene-editing therapy Zolgensma, among many others.
Novartis' net sales grew by 1% year over year to $12.4 billion in the first quarter -- or 5% on a constant currency basis. The drugmaker's net income jumped by 8% year over year (15% on a constant currency basis) to $2.1 billion.
It's essential for a pharmaceutical company to have a rich pipeline to expand its lineup and smooth out losses from patent cliffs. Novartis excels in this area too. The company has more than 150 programs in clinical development. That includes 52 ongoing phase 3 clinical trials.
Even assuming a modest success rate of 25% for its late-stage studies, Novartis should be able to earn new brand approvals or label expansions regularly. The company reported three regulatory nods during the first quarter. Novartis can continue growing its revenue and profits for a long time, especially as it benefits from tailwinds such as the world's aging population and an increased need for medicines.
In short, Novartis' juicy dividend yield, conservative payout ratio, and solid business make the company an excellent option for income-seeking investors and even for those who are shopping for a reliable company whose shares they can hold on to for a while.
A high yield and plenty of cash
David Jagielski (Viatris): I think that Viatris stands out as a great deal for investors. The healthcare company is relatively new, formed through a combination of Pfizer's Upjohn business and drugmaker Mylan in 2020. Viatris is already generating some encouraging results.
The company reported positive first-quarter earnings numbers last month. Q1 net earnings totaled $399.2 million. However, Viatris' revenue of $4.2 billion declined by 5% year over year. Given the macroeconomic challenges such as supply chain issues and rising inflation that companies are facing right now, it's not an awful result by any means.
The more important number for income investors is free cash flow. Viatris reported Q1 free cash flow of $1.1 billion, up 34% year over year. That's more than enough to cover its quarterly dividend payments of around $150 million. Plus, Viatris announced earlier this year that it would be selling its biosimilars portfolio for more than $3.3 billion to add more financial flexibility. Amassing more cash is great news to income investors' ears.
The company has already raised its dividend by $0.01 this year to $0.12. While that increase may seem nominal, it amounts to a 9.1% bump. Investors who buy the stock today will be earning a yield of around 4%. With Viatris' strong cash flow, there could certainly be more rate hikes in the future.
Now could be an opportune time to buy the stock. Viatris currently trades at a forward price-to-earnings multiple of less than four. That's incredibly cheap given that the average healthcare stock in the Health Care Select Sector SPDR Fund trades at 16 times its future profits. If you love dividends, I think that Viatris is a stock you should consider adding to your portfolio today.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie, Health Care SPDR, Pfizer, and Viatris Inc. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Viatris 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. | Here's why they chose AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Viatris (NASDAQ: VTRS). Keith Speights (AbbVie): Make no mistake about it: AbbVie is a king. AbbVie has been a solid winner so far in 2022 as well. | Keith Speights has positions in AbbVie, Health Care SPDR, Pfizer, and Viatris Inc. Prosper Junior Bakiny has no position in any of the stocks mentioned. Here's why they chose AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Viatris (NASDAQ: VTRS). Keith Speights (AbbVie): Make no mistake about it: AbbVie is a king. | Here's why they chose AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Viatris (NASDAQ: VTRS). Keith Speights (AbbVie): Make no mistake about it: AbbVie is a king. AbbVie has been a solid winner so far in 2022 as well. | Here's why they chose AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Viatris (NASDAQ: VTRS). Keith Speights (AbbVie): Make no mistake about it: AbbVie is a king. AbbVie has been a solid winner so far in 2022 as well. |
23349.0 | 2022-06-05 00:00:00 UTC | Can the Best-Selling Drugs of 2021 Repeat Their Performance? | ABBV | https://www.nasdaq.com/articles/can-the-best-selling-drugs-of-2021-repeat-their-performance | nan | nan | Investors looking for stocks that can put up big gains know that pharmaceutical sales can make it happen. Two out of three of the world's top-selling drugs weren't even available in 2020.
Last year, in the U.S. alone, prescription drug sales reached $577 billion, and that was 7.7% more than a year earlier. A substantial majority of new drug launches underperform their prelaunch expectations -- but every once in a while, blockbusters blow past even the loftiest predictions.
Image source: Getty Images.
These five drugs rose to the top in terms of global sales last year. Let's check in on their progress to see if they can stay there.
1. Comirnaty: $59.1 billion
If you don't recognize its official brand name, don't worry: Most of us still call it the Pfizer (NYSE: PFE) vaccine. Comirnaty was developed by a pre-commercial biotechnology company headquartered in Germany called BioNTech (NASDAQ: BNTX). Unprecedented demand drove sales of the COVID-19 vaccine up to an amazing $59.1 billion in 2021.
As you may already suspect, in 2022 Comirnaty is unlikely to get anywhere near the high-water mark it set last year. First-quarter sales came in at $13.2 billion, and the company expects further deceleration from there.
In May, Pfizer told investors it expected around $32 billion in Comirnaty sales for the entire year. Recent authorization from the U.S. Food and Drug Administration (FDA) of a booster shot for children aged 5 to 11 could keep sales of Comirnaty from sinking too far.
2. Humira: $20.7 billion
Humira, an anti-inflammatory drug from AbbVie (NYSE: ABBV) had been in the top spot for years. First approved to treat rheumatoid arthritis in 2002, this top-selling biologic crossed the $20 billion line for the first time in 2021. But Comirnaty's meteoric rise still pushed it down to the No. 2 position on the bestseller list.
Humira began getting biosimilar competition throughout Europe in late 2018. Now, 84% of worldwide Humira revenue comes from the U.S. market. AbbVie hasn't provided forward guidance for Humira sales in 2022, but we can probably expect one more year of price increases in the U.S. market. In 2023, though, Humira sales could finally start falling in the U.S.
Next year, Americans will finally be able to order multiple biosimilar versions of Humira. In July 2023, Boehringer Ingelheim will launch one called Cytelzo, and its effects on Humira sales could be swift and severe. The FDA has approved this as an "interchangeable" biosimilar; that allows your healthcare benefits manager to instruct your pharmacist to give you Cytelzo even if your physician ordered Humira. Biosimilars that aren't considered interchangeable have had a limited impact in the U.S., partly because physicians must prescribe them by name.
3. Spikevax: $17.7 billion
The second-best COVID vaccine by sales was the third-best-selling drug of 2021. Spikevax also happens to be Moderna's (NASDAQ: MRNA) only approved product.
Sales of Spikevax hit a whopping $17.7 billion last year. This pales in comparison to Comirnaty, but it's nothing to sneeze at. It took Humira over a decade to pass $17 billion in annual sales, while Moderna's first vaccine passed this mark during its rookie season.
Unlike Pfizer and BioNTech, Moderna expects sales of its vaccine to rise in 2022. In the first quarter, Spikevax reached an annualized run rate of $24.4 billion. The company also had advance purchase agreements for 2022 totaling $21 billion when it reported first-quarter earnings in May.
4. Keytruda: $17.2 billion
Keytruda is a cancer immunotherapy from Merck (NYSE: MRK). Instead of attacking cancer directly, it keeps tumor cells from inhibiting the immune system cells which are trying to attack them.
There are several other drugs that work along the same lines as Keytruda, including Opdivo from Bristol Myers Squibb (NYSE: BMY). None come close to Keytruda in terms of sales, though. Merck's drug racked up $17.2 billion in sales last year, making it the world's top cancer drug by a wide margin.
We can expect to see Merck at the top of this list again next year. First-quarter sales of Keytruda bounded 23% higher year over year to an annualized $19.6 billion. The recent approval of Keytruda in the EU, as a long-term preventative treatment following breast cancer surgery, will help it continue rising at a breakneck pace.
5. Eliquis: $16.7 billion
Eliquis is an oral blood thinner marketed in partnership by Pfizer and Bristol Myers Squibb. Blood clots form for many reasons, and they can be extremely dangerous when they break free and jam up the blood vessels that your heart, lungs, and brain rely on.
The old standard treatments are effective, but clinical trial evidence says Eliquis does a measurably better job. This is why worldwide sales of Eliquis bounded 20% higher in 2021, to reach $10.7 billion for Bristol Myers Squibb and $6 billion for Pfizer.
In 2020, Bristol Myers Squibb and Pfizer were able to extend Eliquis' key "composition of matter" patent out to 2026. More than likely, though, patents regarding the drug's formulation will stave off generic competition in the U.S. until 2031.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Humira: $20.7 billion Humira, an anti-inflammatory drug from AbbVie (NYSE: ABBV) had been in the top spot for years. AbbVie hasn't provided forward guidance for Humira sales in 2022, but we can probably expect one more year of price increases in the U.S. market. Recent authorization from the U.S. Food and Drug Administration (FDA) of a booster shot for children aged 5 to 11 could keep sales of Comirnaty from sinking too far. | Humira: $20.7 billion Humira, an anti-inflammatory drug from AbbVie (NYSE: ABBV) had been in the top spot for years. AbbVie hasn't provided forward guidance for Humira sales in 2022, but we can probably expect one more year of price increases in the U.S. market. Merck's drug racked up $17.2 billion in sales last year, making it the world's top cancer drug by a wide margin. | Humira: $20.7 billion Humira, an anti-inflammatory drug from AbbVie (NYSE: ABBV) had been in the top spot for years. AbbVie hasn't provided forward guidance for Humira sales in 2022, but we can probably expect one more year of price increases in the U.S. market. Last year, in the U.S. alone, prescription drug sales reached $577 billion, and that was 7.7% more than a year earlier. | Humira: $20.7 billion Humira, an anti-inflammatory drug from AbbVie (NYSE: ABBV) had been in the top spot for years. AbbVie hasn't provided forward guidance for Humira sales in 2022, but we can probably expect one more year of price increases in the U.S. market. Unlike Pfizer and BioNTech, Moderna expects sales of its vaccine to rise in 2022. |
23350.0 | 2022-06-04 00:00:00 UTC | 2 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/2-top-dividend-kings-to-buy-for-the-long-haul-1 | nan | nan | Trusted dividend stocks tend to both perform well compared to the broader market and consistently raise their dividends, regardless of what's going on in the world.
The most respected dividend stocks are those that have increased their payouts for at least 50 consecutive years. These stocks are called Dividend Kings. Two of the 39 Dividend Kings are pharma stocks Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). Let's take a look at why these two stocks could be smart buys for the long run.
1. Johnson & Johnson
While the S&P 500 index has fallen 14% year to date, J&J has gained 3% during that time. J&J is one of the most reliable stocks in volatile equity markets, and for good reason.
The company possessed more than a dozen blockbusters in its product portfolio in 2021, including its mega-blockbuster immunology drug Stelara, antipsychotic drug franchise Invega, and a cancer drug co-owned with AbbVie called Imbruvica. Along with the company's COVID-19 vaccine, this unmatched product portfolio helped J&J to grow its sales by 13.6% to $93.8 billion in 2021.
And with 94 projects in clinical development or the registration phase (i.e., submission to regulatory authorities), the company's future growth prospects look healthy. Thus, it's not hard to see why analysts believe J&J will grow its earnings at 4.6% annually over the next five years.
This growth should allow the company to build on its 60 straight years of dividend boosts. That is especially the case given that J&J's dividend payout ratio is expected to be about 43% in 2022. That's why I am projecting 6% to 7% annual dividend increases in the years ahead, which is an attractive growth rate considering J&J's 2.6% dividend yield.
And the valuation is the factor that seals the deal to make the stock a buy for long-term investors. J&J is trading at a forward price-to-earnings (P/E) ratio of 17.1. This is a bit higher than the forward P/E ratio of 16 for the S&P 500 healthcare sector, but it's well deserved for a stock of J&J's quality.
Image source: Getty Images.
2. AbbVie
Like J&J, AbbVie has also outperformed the S&P 500 so far this year. AbbVie's stock is up 7% year to date.
AbbVie's product portfolio also contained more than a dozen blockbusters in 2021. These products include the top-selling drug in the world Humira (treating a variety of autoimmune diseases), Botox Therapeutic and Botox Cosmetic, and immunology drug Skyrizi. This robust product portfolio explains how AbbVie's net revenue surged 22.6% higher in 2021 to $56.1 billion.
The company's growth will be challenged in the near future, which is due to the fact that Humira's U.S. patent is expiring in 2023. But even with that being the case, AbbVie has five dozen compounds in development at this time. That's why analysts are projecting 2.1% annual earnings growth over the next five years, which I think is a low bar for AbbVie to clear.
The stock's dividend payout ratio is set to be about 40% in 2022. Even with the company's earnings set to temporarily decline in 2023, this should be a large enough cushion to keep up mid-to-high single-digit annual dividend growth in the years to come. This is a respectable growth rate for a stock that offers investors a 3.9% dividend yield.
The cherry on top is that AbbVie's forward P/E ratio of 10.3 is well below the S&P 500 pharmaceutical industry average of 13.5. Even with Humira's looming U.S. patent expiration, this makes the stock a solid pick to buy and hold forever.
10 stocks we like better than Johnson & Johnson
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Kody Kester has positions in AbbVie and 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. | Two of the 39 Dividend Kings are pharma stocks Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). The company possessed more than a dozen blockbusters in its product portfolio in 2021, including its mega-blockbuster immunology drug Stelara, antipsychotic drug franchise Invega, and a cancer drug co-owned with AbbVie called Imbruvica. AbbVie Like J&J, AbbVie has also outperformed the S&P 500 so far this year. | Two of the 39 Dividend Kings are pharma stocks Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). The company possessed more than a dozen blockbusters in its product portfolio in 2021, including its mega-blockbuster immunology drug Stelara, antipsychotic drug franchise Invega, and a cancer drug co-owned with AbbVie called Imbruvica. That's why analysts are projecting 2.1% annual earnings growth over the next five years, which I think is a low bar for AbbVie to clear. | Two of the 39 Dividend Kings are pharma stocks Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). See the 10 stocks *Stock Advisor returns as of April 27, 2022 Kody Kester has positions in AbbVie and Johnson & Johnson. The company possessed more than a dozen blockbusters in its product portfolio in 2021, including its mega-blockbuster immunology drug Stelara, antipsychotic drug franchise Invega, and a cancer drug co-owned with AbbVie called Imbruvica. | Two of the 39 Dividend Kings are pharma stocks Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). The company possessed more than a dozen blockbusters in its product portfolio in 2021, including its mega-blockbuster immunology drug Stelara, antipsychotic drug franchise Invega, and a cancer drug co-owned with AbbVie called Imbruvica. AbbVie Like J&J, AbbVie has also outperformed the S&P 500 so far this year. |
23351.0 | 2022-06-03 00:00:00 UTC | Best Health Care Stocks To Invest In Today? 3 In Focus | ABBV | https://www.nasdaq.com/articles/best-health-care-stocks-to-invest-in-today-3-in-focus | nan | nan | 3 Health Care Stocks For Your June 2022 Watchlist
With all the back-and-forth in the stock market recently, investors may be looking for more defensive stocks to jump on. Should that be the case, health care stocks would be among the key groups to consider. After all, the industry produces a vast array of life-improving solutions in the form of drugs and treatments. Even as the world looks to move beyond the coronavirus pandemic, health care in general remains as crucial as ever. With that in mind, knowing about some of the top health care stocks in thestock market todaycould, arguably, be the play.
For one thing, there is certainly no shortage of exciting developments in the industry now. As of earlier today, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) received a positive update on their leukemia drug Imbruvica. Namely, Imbruvica, in combination with standard treatment, is reportedly effective at treating mantle cell lymphoma (MCL). According to the data, this treatment course can keep the disease at bay for more than two years longer than standard regimens. With Imbruvica already being a key treatment for chronic lymphocytic leukemia (CLL), this would be a win for both companies.
At the same time, there is also a rosy update regarding Pfizer’s (NYSE: PFE) antiviral Paxlovid treatment. Based on Israeli findings, Paxlovid reduces COVID-19 hospitalizations and death rates in vaccinated and unvaccinated patients 65 years and older. Safe to say, the health care industry remains as busy as ever. Should this have you keen on health care stocks, here are three to watch today.
Health Care Stocks To Buy [Or Sell] Right Now
Bristol-Myers Squibb Company (NYSE: BMY)
Teladoc Health Inc. (NYSE: TDOC)
Moderna Inc. (NASDAQ: MRNA)
Bristol-Myers Squibb Co
Bristol Myers Squibb (BMY) is a pharmaceutical company that is also one of the largest in the world. For a sense of scale, it brought in a total revenue of $46.4 billion in fiscal 2021. In essence, the company discovers, develops, and delivers innovative medicines that help patients overcome serious diseases. Today, it announced that it will be acquiring Turning Point Therapeutics, a leading precision oncology company.
Diving in, the company announced a definitive merger agreement where BMY will acquire Turning Point Therapeutics (NASDAQ: TPTX) for $76 per share. Turning Point Therapeutics is a clinical-stage precision oncology company with a pipeline of investigational medicines designed to target the most common mutations associated with oncogenesis. Turning Point Therapeutics’ lead asset, repotrectinib, is a next-generation, potential best-in-class tyrosine kinase inhibitor (TKI) targeting the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC) and other advanced solid tumors. Repotrectinib has been granted 3 Breakthrough Therapy Designations from the FDA.
The company expects repotrectinib to be approved in the U.S. by the second half of 2023. This could end up being a new standard of care for patients with ROS1-positive NSCLC in the first-line setting. “The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset,” said Giovanni Caforio, M.D., Board Chair and Chief Executive Officer, Bristol Myers Squibb. “With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.” With that in mind, is BMY stock worth investing in right now?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Falter; Okta Stock Surges On Solid Earnings
Teladoc Health Inc.
Teladoc Health is a multinational telemedicine and virtual health care company. It offers technology to connect and provides crucial health care to patients anywhere in the world. It provides whole-person virtual care that includes primary care, chronic condition management, mental health, and more. Its Primary360 for instance, provides a unified health care experience and gives patients greater control over the health care they seek.
Last month, the company received a target raise from Piper Sandler. The investment bank says that recent developments in virtual behavioral health could benefit Teladoc despite the company lowering its 2022 guidance. Analyst Jessica Tassan has an Overweight rating on Teladoc and also raised its price target to $42 a share. She cites mental care developments and interim app data as reasons why Teladoc could be on the rise.
In April, the company also reported its first-quarter financials for 2022. The company posted a net revenue of $565.4 million, growing by 25% year-over-year. The average revenue per U.S. paid member increased to $2.52 for the quarter, a 20.5% increase year-over-year. Teladoc says that it continues to deliver personalized, flexible, and efficient whole-person care at scale for its millions of consumers and patients. It also made significant progress in its strategic initiatives. This includes launching multiple clients on its innovative services like Primary360 and stepped-care chronic condition programs. Given this piece of news, would you consider having TDOC stock on your radar?
Source: TD Ameritrade TOS
[Read More] Best Stocks To Invest In Right Now? 5 Value Stocks To Watch This Week
Moderna Inc.
Another health care stock to watch in the stock market today would be Moderna. For the most part, the biotech company specializes in producing RNA therapies. The likes of which focus on a wide array of therapeutic fields. Among which are infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases. Pairing all this with its industry-leading work on its coronavirus vaccine, MRNA stock would be a name to consider.
Speaking of its work on the vaccine, investors may want to keep an eye on the company ahead of June 15. This would be the case as the U.S. Food and Drug Administration (FDA) will be evaluating the company’s vaccine for use in infants and toddlers. Should the data support an authorization, Moderna would receive yet another expansion to the use cases for its COVID-19 shot. In this case, investors would be keen to jump on MRNA stock.
Overall, this would be a key follow-up to Moderna’s prior efforts on this front. According to the company’s existing data, its vaccine is 51% effective against infection from the Omicron variant in children under age 2. Worth mentioning, Moderna’s CMO also notes that the antibody levels observed in clinical trial candidates could translate to high levels of protection against severe illness. As such, would MRNA stock make your list of top health care stocks to buy 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. | As of earlier today, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) received a positive update on their leukemia drug Imbruvica. Turning Point Therapeutics’ lead asset, repotrectinib, is a next-generation, potential best-in-class tyrosine kinase inhibitor (TKI) targeting the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC) and other advanced solid tumors. “With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.” With that in mind, is BMY stock worth investing in right now? | As of earlier today, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) received a positive update on their leukemia drug Imbruvica. Health Care Stocks To Buy [Or Sell] Right Now Bristol-Myers Squibb Company (NYSE: BMY) Teladoc Health Inc. (NYSE: TDOC) Moderna Inc. (NASDAQ: MRNA) Bristol-Myers Squibb Co Bristol Myers Squibb (BMY) is a pharmaceutical company that is also one of the largest in the world. Today, it announced that it will be acquiring Turning Point Therapeutics, a leading precision oncology company. | As of earlier today, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) received a positive update on their leukemia drug Imbruvica. Health Care Stocks To Buy [Or Sell] Right Now Bristol-Myers Squibb Company (NYSE: BMY) Teladoc Health Inc. (NYSE: TDOC) Moderna Inc. (NASDAQ: MRNA) Bristol-Myers Squibb Co Bristol Myers Squibb (BMY) is a pharmaceutical company that is also one of the largest in the world. Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Falter; Okta Stock Surges On Solid Earnings Teladoc Health Inc. Teladoc Health is a multinational telemedicine and virtual health care company. | As of earlier today, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) received a positive update on their leukemia drug Imbruvica. Should that be the case, health care stocks would be among the key groups to consider. Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Falter; Okta Stock Surges On Solid Earnings Teladoc Health Inc. Teladoc Health is a multinational telemedicine and virtual health care company. |
23352.0 | 2022-06-03 00:00:00 UTC | AbbVie Inc. (ABBV) Is a Trending Stock: Facts to Know Before Betting on It | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-a-trending-stock%3A-facts-to-know-before-betting-on-it | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drugmaker have returned -3.6%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +10.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
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 -0.3%.
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 changed +109.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AbbVie, the consensus sales estimate for the current quarter of $14.66 billion indicates a year-over-year change of +5%. For the current and next fiscal years, $59.63 billion and $55.98 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has 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%. | 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) 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%. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 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. 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%. |
23353.0 | 2022-06-03 00:00:00 UTC | J&J, AbbVie cancer drug significantly slows progression of rare lymphoma -study | ABBV | https://www.nasdaq.com/articles/jj-abbvie-cancer-drug-significantly-slows-progression-of-rare-lymphoma-study | nan | nan | By Michael Erman
June 3 (Reuters) - Johnson & Johnson JNJ.N and AbbVie's ABBV.N big-selling leukemia drug Imbruvica in combination with standard treatment kept a rare type of non-Hodgkin lymphoma in check for more than two years longer than the standard regimen alone in older patients, according to data presented on Friday.
Patients aged 65 and older with mantle cell lymphoma (MCL) were given Imbruvica or a placebo along with a chemotherapy regimen of bendamustine and autoimmune drug rituximab.
Those who received Imbruvica, known chemically as ibrutinib, on average went 80.6 months before their disease began to worsen, a measure known as progression-free survival (PFS). That compared with 52.9 months for the chemotherapy regimen in the 523-patient trial.
Results of the study were presented at the annual American Society of Clinical Oncology (ASCO) meeting in Chicago.
Dr. Julie Gralow, chief medical officer of ASCO, said the study could be practice changing for doctors who treat MCL, calling the results "a pretty dramatic increase in how long the patient stayed on treatment without progressing."
MCL is a rare type of lymphoma with an incidence of around 1 case per 200,000 people a year. It occurs more commonly in men and in older patients.
Imbruvica, an oral drug, has become an important treatment for chronic lymphocytic leukemia (CLL), with nearly $10 billion in sales worldwide in 2021. It is also approved to treat adults who have received at least one prior therapy for MCL.
In March, J&J filed for approval in Europe to use the drug as an initial, or first-line, treatment for MCL based on the data from this study.
The company said it is currently in discussions with other global regulators about expanding its use in other countries.
(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 June 3 (Reuters) - Johnson & Johnson JNJ.N and AbbVie's ABBV.N big-selling leukemia drug Imbruvica in combination with standard treatment kept a rare type of non-Hodgkin lymphoma in check for more than two years longer than the standard regimen alone in older patients, according to data presented on Friday. Patients aged 65 and older with mantle cell lymphoma (MCL) were given Imbruvica or a placebo along with a chemotherapy regimen of bendamustine and autoimmune drug rituximab. Those who received Imbruvica, known chemically as ibrutinib, on average went 80.6 months before their disease began to worsen, a measure known as progression-free survival (PFS). | By Michael Erman June 3 (Reuters) - Johnson & Johnson JNJ.N and AbbVie's ABBV.N big-selling leukemia drug Imbruvica in combination with standard treatment kept a rare type of non-Hodgkin lymphoma in check for more than two years longer than the standard regimen alone in older patients, according to data presented on Friday. Patients aged 65 and older with mantle cell lymphoma (MCL) were given Imbruvica or a placebo along with a chemotherapy regimen of bendamustine and autoimmune drug rituximab. MCL is a rare type of lymphoma with an incidence of around 1 case per 200,000 people a year. | By Michael Erman June 3 (Reuters) - Johnson & Johnson JNJ.N and AbbVie's ABBV.N big-selling leukemia drug Imbruvica in combination with standard treatment kept a rare type of non-Hodgkin lymphoma in check for more than two years longer than the standard regimen alone in older patients, according to data presented on Friday. Patients aged 65 and older with mantle cell lymphoma (MCL) were given Imbruvica or a placebo along with a chemotherapy regimen of bendamustine and autoimmune drug rituximab. Dr. Julie Gralow, chief medical officer of ASCO, said the study could be practice changing for doctors who treat MCL, calling the results "a pretty dramatic increase in how long the patient stayed on treatment without progressing." | By Michael Erman June 3 (Reuters) - Johnson & Johnson JNJ.N and AbbVie's ABBV.N big-selling leukemia drug Imbruvica in combination with standard treatment kept a rare type of non-Hodgkin lymphoma in check for more than two years longer than the standard regimen alone in older patients, according to data presented on Friday. Patients aged 65 and older with mantle cell lymphoma (MCL) were given Imbruvica or a placebo along with a chemotherapy regimen of bendamustine and autoimmune drug rituximab. Those who received Imbruvica, known chemically as ibrutinib, on average went 80.6 months before their disease began to worsen, a measure known as progression-free survival (PFS). |
23354.0 | 2022-06-02 00:00:00 UTC | Bristol Myers, J&J drugs reduce COVID death rates in NIH study | ABBV | https://www.nasdaq.com/articles/bristol-myers-jj-drugs-reduce-covid-death-rates-in-nih-study | nan | nan | Adds background and details
June 2 (Reuters) - A late-stage study of two rheumatoid arthritis drugs from Bristol Myers Squibb BMY.N and Johnson & Johnson JNJ.N showed a significant drop in deaths among hospitalized COVID patients, a U.S. health agency said on Thursday.
However, both the drugs failed to meet the main goal of speeding up recovery compared with a placebo, the study of nearly 2,000 patients by National Institutes of Health (NIH) showed.
Those who received J&J's Remicade had 40.5% lower adjusted odds of dying than the placebo group, while those on Bristol Myers' Orencia had 37.4%.
"When given in addition to standard-of-care treatments, like remdesivir and dexamethasone, infliximab (Remicade) and abatacept (Orencia) each offered a substantial reduction in mortality," said the trial's protocol chair, William Powderly.
Both groups of patients also had substantially better odds of clinical improvement than those on placebo, the study showed.
Started in October 2020, the study was part of a public-private partnership for coordinated research on promising treatments and vaccines against COVID-19. (https://reut.rs/3aDOHLZ)
The trial was testing the two drugs, along with AbbVie's ABBV.N experimental candidate cenicriviroc, to treat an overactive immune response called "cytokine storm" seen in certain patients with moderate-to-severe COVID-19.
Enrollment for the cenicriviroc group was stopped in September last year due to lack of efficacy.
(Reporting by Leroy Leo in Bengaluru; Editing by Devika Syamnath)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (https://reut.rs/3aDOHLZ) The trial was testing the two drugs, along with AbbVie's ABBV.N experimental candidate cenicriviroc, to treat an overactive immune response called "cytokine storm" seen in certain patients with moderate-to-severe COVID-19. However, both the drugs failed to meet the main goal of speeding up recovery compared with a placebo, the study of nearly 2,000 patients by National Institutes of Health (NIH) showed. "When given in addition to standard-of-care treatments, like remdesivir and dexamethasone, infliximab (Remicade) and abatacept (Orencia) each offered a substantial reduction in mortality," said the trial's protocol chair, William Powderly. | (https://reut.rs/3aDOHLZ) The trial was testing the two drugs, along with AbbVie's ABBV.N experimental candidate cenicriviroc, to treat an overactive immune response called "cytokine storm" seen in certain patients with moderate-to-severe COVID-19. Adds background and details June 2 (Reuters) - A late-stage study of two rheumatoid arthritis drugs from Bristol Myers Squibb BMY.N and Johnson & Johnson JNJ.N showed a significant drop in deaths among hospitalized COVID patients, a U.S. health agency said on Thursday. Those who received J&J's Remicade had 40.5% lower adjusted odds of dying than the placebo group, while those on Bristol Myers' Orencia had 37.4%. | (https://reut.rs/3aDOHLZ) The trial was testing the two drugs, along with AbbVie's ABBV.N experimental candidate cenicriviroc, to treat an overactive immune response called "cytokine storm" seen in certain patients with moderate-to-severe COVID-19. Adds background and details June 2 (Reuters) - A late-stage study of two rheumatoid arthritis drugs from Bristol Myers Squibb BMY.N and Johnson & Johnson JNJ.N showed a significant drop in deaths among hospitalized COVID patients, a U.S. health agency said on Thursday. However, both the drugs failed to meet the main goal of speeding up recovery compared with a placebo, the study of nearly 2,000 patients by National Institutes of Health (NIH) showed. | (https://reut.rs/3aDOHLZ) The trial was testing the two drugs, along with AbbVie's ABBV.N experimental candidate cenicriviroc, to treat an overactive immune response called "cytokine storm" seen in certain patients with moderate-to-severe COVID-19. Adds background and details June 2 (Reuters) - A late-stage study of two rheumatoid arthritis drugs from Bristol Myers Squibb BMY.N and Johnson & Johnson JNJ.N showed a significant drop in deaths among hospitalized COVID patients, a U.S. health agency said on Thursday. Those who received J&J's Remicade had 40.5% lower adjusted odds of dying than the placebo group, while those on Bristol Myers' Orencia had 37.4%. |
23355.0 | 2022-06-01 00:00:00 UTC | AbbVie Presents Positive Results From Phase 3 Trials Of Upadacitinib In Axial Spondyloarthritis | ABBV | https://www.nasdaq.com/articles/abbvie-presents-positive-results-from-phase-3-trials-of-upadacitinib-in-axial | nan | nan | (RTTNews) - AbbVie (ABBV) said that it presented full results from two studies from the Phase 3 SELECT-AXIS 2 program evaluating upadacitinib (RINVOQ), an oral therapy, in adult patients with active non-radiographic axial spondyloarthritis or nr-axSpA and patients with treatment-refractory active ankylosing spondylitis or AS with an inadequate response or IR to biologic disease-modifying antirheumatic drugs or bDMARDs.
Both studies met the primary endpoint of Assessment of SpondyloArthritis international Society 40 percent response criteria (ASAS40) at week 14 versus placebo.
The data suggested the potential of upadacitinib to help counter inflammation, relieve pain and improve function, helping patients living with nr-axSpA take control of their disease, the company said in a statement.
Results from the SELECT-AXIS 2 non-radiographic axial spondyloarthritis (nr-axSpA) study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected SI joint inflammation with upadacitinib compared to placebo at week 14.
Results from the SELECT-AXIS 2 ankylosing spondylitis bDMARD-IR study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected spine inflammation with upadacitinib compared to placebo at week 14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that it presented full results from two studies from the Phase 3 SELECT-AXIS 2 program evaluating upadacitinib (RINVOQ), an oral therapy, in adult patients with active non-radiographic axial spondyloarthritis or nr-axSpA and patients with treatment-refractory active ankylosing spondylitis or AS with an inadequate response or IR to biologic disease-modifying antirheumatic drugs or bDMARDs. Results from the SELECT-AXIS 2 non-radiographic axial spondyloarthritis (nr-axSpA) study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected SI joint inflammation with upadacitinib compared to placebo at week 14. Results from the SELECT-AXIS 2 ankylosing spondylitis bDMARD-IR study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected spine inflammation with upadacitinib compared to placebo at week 14. | (RTTNews) - AbbVie (ABBV) said that it presented full results from two studies from the Phase 3 SELECT-AXIS 2 program evaluating upadacitinib (RINVOQ), an oral therapy, in adult patients with active non-radiographic axial spondyloarthritis or nr-axSpA and patients with treatment-refractory active ankylosing spondylitis or AS with an inadequate response or IR to biologic disease-modifying antirheumatic drugs or bDMARDs. Results from the SELECT-AXIS 2 non-radiographic axial spondyloarthritis (nr-axSpA) study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected SI joint inflammation with upadacitinib compared to placebo at week 14. Results from the SELECT-AXIS 2 ankylosing spondylitis bDMARD-IR study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected spine inflammation with upadacitinib compared to placebo at week 14. | (RTTNews) - AbbVie (ABBV) said that it presented full results from two studies from the Phase 3 SELECT-AXIS 2 program evaluating upadacitinib (RINVOQ), an oral therapy, in adult patients with active non-radiographic axial spondyloarthritis or nr-axSpA and patients with treatment-refractory active ankylosing spondylitis or AS with an inadequate response or IR to biologic disease-modifying antirheumatic drugs or bDMARDs. Results from the SELECT-AXIS 2 non-radiographic axial spondyloarthritis (nr-axSpA) study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected SI joint inflammation with upadacitinib compared to placebo at week 14. Results from the SELECT-AXIS 2 ankylosing spondylitis bDMARD-IR study demonstrated significantly greater improvements in signs and symptoms, pain, function, disease activity, health-related quality of life, and MRI-detected spine inflammation with upadacitinib compared to placebo at week 14. | (RTTNews) - AbbVie (ABBV) said that it presented full results from two studies from the Phase 3 SELECT-AXIS 2 program evaluating upadacitinib (RINVOQ), an oral therapy, in adult patients with active non-radiographic axial spondyloarthritis or nr-axSpA and patients with treatment-refractory active ankylosing spondylitis or AS with an inadequate response or IR to biologic disease-modifying antirheumatic drugs or bDMARDs. Both studies met the primary endpoint of Assessment of SpondyloArthritis international Society 40 percent response criteria (ASAS40) at week 14 versus placebo. The data suggested the potential of upadacitinib to help counter inflammation, relieve pain and improve function, helping patients living with nr-axSpA take control of their disease, the company said in a statement. |
23356.0 | 2022-06-01 00:00:00 UTC | 1 Green Flag for AbbVie in 2022 and 1 Red Flag | ABBV | https://www.nasdaq.com/articles/1-green-flag-for-abbvie-in-2022-and-1-red-flag | nan | nan | If there was one area of optimism in this market since the start of the year, I'd have to say it was healthcare. The S&P 500 healthcare sector grew 2.7% -- until the first week of April hit. Then the bottom dropped out. Yet, year-to-date the healthcare sector is still down only 6% in 2022 vs. a 13.5% decline for the broader S&P 500.
In the case of AbbVie (NYSE: ABBV), its shares have dropped 15.5% since the start of the year, due not only to the broader market decline but also because of challenges facing a top-selling product. But there's reason to believe that both obstacles can be overcome.
Image source: Getty Images.
Red Flag: sales decline of top-selling drug Humira
The biggest problem facing AbbVie right now is how to make up for a decline in sales of its top-selling drug, Humira. Last year, Humira brought in $20.7 billion. That amounts to 38% of the $56 billion in total net revenue for the company. AbbVie ended the year with an increase of 3.7% in Humira sales over full-year 2020, but that number would have been stronger if not for a decline of 12.8% in the international market.
In 2018, five biosimilar drugs that compete with Humira were approved for international commercial availability. Among them is Amgen's Amgevita, which saw sales increase 33% during 2021 and is touted by its maker as the most prescribed Humira biosimilar in Europe.
Meanwhile, in the U.S. there are now seven approved biosimilars, which could bring a further decline in sales for AbbVie when they become commercially available in 2023. AbbVie will need to be concerned with Amgen's top seller in Europe, but also in contention to steal sales will be Cyltezo from privately held Boehringer Ingelheim.
What makes Cyltezo interesting is that it's the first biosimilar considered interchangeable with Humira , so it doesn't require a new prescription. In some states, it can be easily substituted for Humira. Cyltezo should be available to enter the market in July 2023 upon Humira's patent expiration, and it's expected to have a lower price tag.
It basically took three years for Humira to see an annual sales decline of 12.8% from biosimilars sold in international markets. If that happens in the U.S., it could mean a $2 billion decline by mid-2026. And if inflation continues into next year, a lower-cost biosimilar could certainly be enticing to those looking for the same treatment for less money.
Unfortunately, that might be the best-case scenario. AbbVie CEO Rick Gonzalez has said the company will likely give 2023 sales guidance on its third-quarterearnings calllater this year and that up to 45% erosion for Humira sales is reasonable.
Green Flag: product depth could save the day
In the pharmaceutical business, it's important for a company to have more than one product on which its revenue depends. AbbVie knows that all too well, especially after acknowledging the potential impact of the pending patent expiration of Humira.
The company's up and coming stars Skyrizi, and Rinvoq, used to treat plaque psoriasis and indications of arthritis, may be enough to ease the nerves of investors. After receiving FDA approval in 2019, both drugs saw a huge year-over-year sales increase in 2021 -- 84% for Skyrizi and greater than 100% for Rinvoq. In a very short time span, the drugs have become two of the top revenue generators for AbbVie and helped solidify the company's immunology segment, of which Humira is also a part.
The company is also benefiting from its acquisition of Allergan in 2020, which allowed it to obtain Botox Cosmetic and Botox Therapeutic. Those two treatments rose 23% and 43%, respectively, in sales on a year-over-year basis for 2021, and both sustained double-digit growth during the first quarter of this year.
But a deep portfolio is not the only thing that should drive investor confidence amid a biosimilar advance. The company pays an annual dividend of $5.64 per share, which currently comes to a yield of 3.73%, and its current price-to-earnings (P/E) ratio of 21 is slightly lower than its three-year average of 23 and in line with its industry average.
When the broader market decline took a drastic turn downward since April 8, not even the top pharmaceutical stocks were safe. Now, AbbVie's stock could be enticing after its 15% decline in share price for a company with enough depth to make it a top pick in an uncertain market.
Though much of the fear around Humira sales could be baked into the current stock price, investors who need a little more reassurance might want to wait for 2023 guidance before buying in. But for long-term investors looking for an opportunity at big gains, AbbVie's ability to develop products, expand its portfolio, and produce consistent dividends should alleviate most concerns.
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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 case of AbbVie (NYSE: ABBV), its shares have dropped 15.5% since the start of the year, due not only to the broader market decline but also because of challenges facing a top-selling product. In a very short time span, the drugs have become two of the top revenue generators for AbbVie and helped solidify the company's immunology segment, of which Humira is also a part. But for long-term investors looking for an opportunity at big gains, AbbVie's ability to develop products, expand its portfolio, and produce consistent dividends should alleviate most concerns. | Red Flag: sales decline of top-selling drug Humira The biggest problem facing AbbVie right now is how to make up for a decline in sales of its top-selling drug, Humira. Now, AbbVie's stock could be enticing after its 15% decline in share price for a company with enough depth to make it a top pick in an uncertain market. In the case of AbbVie (NYSE: ABBV), its shares have dropped 15.5% since the start of the year, due not only to the broader market decline but also because of challenges facing a top-selling product. | Red Flag: sales decline of top-selling drug Humira The biggest problem facing AbbVie right now is how to make up for a decline in sales of its top-selling drug, Humira. AbbVie ended the year with an increase of 3.7% in Humira sales over full-year 2020, but that number would have been stronger if not for a decline of 12.8% in the international market. AbbVie CEO Rick Gonzalez has said the company will likely give 2023 sales guidance on its third-quarterearnings calllater this year and that up to 45% erosion for Humira sales is reasonable. | In the case of AbbVie (NYSE: ABBV), its shares have dropped 15.5% since the start of the year, due not only to the broader market decline but also because of challenges facing a top-selling product. Now, AbbVie's stock could be enticing after its 15% decline in share price for a company with enough depth to make it a top pick in an uncertain market. Red Flag: sales decline of top-selling drug Humira The biggest problem facing AbbVie right now is how to make up for a decline in sales of its top-selling drug, Humira. |
23357.0 | 2022-06-01 00:00:00 UTC | My 3 Favorite Dividend Stocks to Buy in June | ABBV | https://www.nasdaq.com/articles/my-3-favorite-dividend-stocks-to-buy-in-june | nan | nan | Forget the old adage "sell and May and go away." Any time is a good time to buy dividend stocks. That's true even when the stock market is highly volatile -- as it is now.
There are two important prerequisites, though. First, you need to have a long-term mindset. Even the best dividend stocks can fall over the short term. Second, you have to pick stocks with strong underlying businesses. Fortunately, there are quite a few that fit the bill. Here are my three favorite dividend stocks to buy in June.
Image source: Getty Images.
1. Brookfield Renewable
I can't think of many stocks that I'm more bullish about over the long term than Brookfield Renewable (NYSE: BEP) (NYSE: BEPC). The company ranks as a leader in providing renewable energy across the world.
Brookfield Renewable hasn't delivered sizzling returns so far this year. However, any stock that's in positive territory in this dismal market can be justifiably viewed as a winner.
The company offers a dividend yield of close to 3.4%. Your actual yield will vary a little depending on which Brookfield Renewable stock you buy. Brookfield Renewable Partners is a limited partnership (LP) that trades under the BEP ticker. Brookfield Renewable Corporation doesn't have the tax hassles associated with LPs and trades under the BEPC ticker. Both have the same underlying business, though.
Brookfield Renewable continues to see accelerating demand for renewable energy. The capacity of the company's development pipeline is nearly three times greater than its current capacity. With the global push to reduce carbon emissions, I think this solid dividend stock should also be a great growth stock.
2. AbbVie
AbbVie (NYSE: ABBV) stands out as another company that is built to last. The big drugmaker's dividend track record underscores this view. AbbVie has increased its dividend for 50 consecutive years, which qualifies the company as a member of the elite group of stocks known as Dividend Kings. Its dividend currently yields nearly 3.8%.
The pharma stock was up close to 30% year to date in early April. Although AbbVie has since given up some of those gains, it's still handily beating the broader market indexes this year.
Shares also remain attractively valued, trading at 10.7 times expected earnings. This discounted valuation is largely due to investors' concerns about AbbVie's top-selling drug Humira losing U.S. patent exclusivity next year.
However, the company has a strong product lineup that should enable it to quickly return to growth. Indeed, market research firm EvaluatePharma predicts that AbbVie will be the biggest drugmaker in the world by 2028 based on prescription drug sales.
3. Devon Energy
Unlike Brookfield Renewable and AbbVie, Devon Energy (NYSE: DVN) is an indisputably massive winner so far in 2022. Shares of the oil and gas producer are up nearly 80% year to date.
Even better, Devon is a dividend investor's dream. The company offers a fixed-plus-variable dividend that currently yields 6.7%. Devon estimates that its dividend yield in 2022 will be even higher.
The dynamics causing oil and gas prices to be high don't seem likely to change very soon. As a result, Devon should be able to continue generating strong free cash flow. Its dividend appears to be in good shape.
Could the stock flounder after such a big run? Maybe. However, Devon CEO Rick Muncrief stated in the company's first-quarter conference call, "Devon's strong stock performance over the past year is largely a bounce back from the generational lows we experienced during the COVID crisis." The company believes that "it is still very early in this structural bull market."
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Keith Speights has positions in AbbVie, Brookfield Renewable Corporation, Brookfield Renewable Partners L.P., and Devon Energy. The Motley Fool has positions in and recommends Brookfield Renewable Corporation. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This discounted valuation is largely due to investors' concerns about AbbVie's top-selling drug Humira losing U.S. patent exclusivity next year. Indeed, market research firm EvaluatePharma predicts that AbbVie will be the biggest drugmaker in the world by 2028 based on prescription drug sales. AbbVie AbbVie (NYSE: ABBV) stands out as another company that is built to last. | Devon Energy Unlike Brookfield Renewable and AbbVie, Devon Energy (NYSE: DVN) is an indisputably massive winner so far in 2022. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation, Brookfield Renewable Partners L.P., and Devon Energy. AbbVie AbbVie (NYSE: ABBV) stands out as another company that is built to last. | AbbVie has increased its dividend for 50 consecutive years, which qualifies the company as a member of the elite group of stocks known as Dividend Kings. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation, Brookfield Renewable Partners L.P., and Devon Energy. AbbVie AbbVie (NYSE: ABBV) stands out as another company that is built to last. | See the 10 stocks *Stock Advisor returns as of April 27, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation, Brookfield Renewable Partners L.P., and Devon Energy. AbbVie AbbVie (NYSE: ABBV) stands out as another company that is built to last. AbbVie has increased its dividend for 50 consecutive years, which qualifies the company as a member of the elite group of stocks known as Dividend Kings. |
23358.0 | 2022-05-30 00:00:00 UTC | The 3 Best Performing ETFs Money Can Buy in 2022 | ABBV | https://www.nasdaq.com/articles/the-3-best-performing-etfs-money-can-buy-in-2022 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These best performing ETFs so far this year could see further traction as investors return to the markets.
First Trust Morningstar Dividend Leaders Index Fund (FDL): This ETF focuses on dividend growth consistency when choosing stocks.
WisdomTree U.S. High Dividend Fund (DHS): Since 2006, DHS invests in high-quality dividend-paying names on Wall Street.
Invesco S&P 500 Equal Weight Energy ETF (RYE): The energy sector has been on a tear in 2022, providing tailwinds for RYE.
Source: Maxx-Studio/ShutterStock.com
Investors are scrambling to find the best performing ETFs (exchange-traded funds) in whgat has proven so far to be a tough year. Many stocks have given up a significant portion of their pandemic gains.
Wall Street has seen the tech-driven Nasdaq 100 index decline almost 24% year to date. Meanwhile, the benchmark S&P 500 is currently down around 13% during the same period.
However, not all assets and sectors suffered the same fate. The energy sector and commodities generated double-digit returns boosted by solid tailwinds from rising prices.
The 7 Best Stocks to Buy for June 2022
Therefore, it’s not surprising that energy ETFs dominated the list of best-performing ETFs during the first five months. Moreover, defensive ETFs that hold stocks with high dividend payouts, such as utilities, real estate, healthcare, and consumer staples, have also attracted significant net inflows this year.
Today’s article introduces three of the best performing ETFs that have done well since January and could continue to do so in June.
FDL First Trust Morningstar Dividend Leaders Index Fund $39.18
DHS WisdomTree U.S. High Dividend Fund $90.83
RYE Invesco S&P 500 Equal Weight Energy ETF $77.73
First Trust Morningstar Dividend Leaders Index Fund (FDL)
Source: shutterstock.com/bangoland
52 Week Range: $32.31 – $39.24
Dividend Yield: 3.54%
Expense Ratio: 0.45%
First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL) provides exposure to large-cap firms that have shown dividend consistency as well as dividend sustainability in past. Businesses within this segment are often considered to be among the safest firms on Wall Street.
FDL, which tracks the Morningstar Dividend Leaders Index, has 98 holdings. The fund started trading in March 2006.
In terms of allocations, health technology leads with 22.02%, followed by consumer non-durables at 16.49%, communications at 14.55% and utilities at 13.78%.
The top 10 holdings account for around 58% of its $2.8 billion in net assets. Among them are AT&T (NYSE:T), Abbvie (NYSE:ABBV), Chevron (NYSE:CVX), Verizon Communications (NYSE:VZ), and Pfizer (NYSE:PFE).
FDL has appreciated more than 9% year to date and currently is trading near its all-time high. The fund has an attractive price-to-earnings (P/E) ratio of 14.53 and a price-to-book (P/B) ratio of 2.33.
WisdomTree U.S. High Dividend Fund (DHS)
Source: shutterstock.com/Imagentle
52-Week Range: $76.44 – $91.90
Dividend Yield: 3.05%
Expense Ratio: 0.38% per year
WisdomTree U.S. High Dividend Fund (NYSEARCA:DHS) offers the chance to invest in high-dividend-yielding companies in the U.S. equity market. The fund was launched in June 2006.
DHS, which tracks the WisdomTree U.S. High Dividend Index, has 754 holdings. Its subsector allocation is well-balanced. Energy leads the fund at 19.83%, followed by health care at 19.19%, consumer staples at 17.89%, financials at 13.29%, and utilities at 12.61%.
7 Beaten-Down Growth Stocks That Look Like Big Bargains Right Now
The top 10 stocks in the portfolio account for 46% of its net assets of $1.13 billion. Exxon Mobil (NYSE:XOM), Chevron, Philip Morris International (NYSE:PM), Pfizer, and Coca-Cola (NYSE:KO) are among the most prominent holdings.
DHS has returned 9.5% year to date and almost 15% over the past 12 months. It currently trades just below its all-time high. The fund offers a good investment route for high dividend stocks with trailing P/E and P/B ratios of 15.93 and 2.70, respectively.
Invesco S&P 500 Equal Weight Energy ETF (RYE)
Source: shutterstock.com/eamesBot
52-Week Range: $36.64 – $74.75
Dividend Yield: 1.82%
Expense Ratio: 0.40% per year
The Invesco S&P 500 Equal Weight Energy ETF (NYSEARCA:RYE) invests in U.S. energy stocks. The fund started trading in November 2006.
RYE, which tracks the S&P 500 Equal Weight Energy Plus Index, has 24 holdings. In terms of sectoral allocations, it is heavily tilted toward oil, gas and consumable fuels at 87.71%, followed by energy equipment and services at 12.19%.
The top 10 stocks in the portfolio account for nearly 50% of its net assets of $667 million. Among the top stocks are energy giants Valero Energy (NYSE:VLO); Marathon Petroleum (NYSE:MPC); Hess (NYSE:HES); Coterra Energy (NYSE:CTRA) and Devon Energy (NYSE:DVN).
Since the start of the year, RYE has soared more than 61% and is trading near its 52-week highs at the time of writing. Nevertheless, the fund still offers solid value to invest in the energy sector, with forward P/E and P/B ratios of 16.78 and 2.54, respectively.
On the date of publication, Tezcan Gecgil 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 The 3 Best Performing ETFs Money Can Buy in 2022 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. | Among them are AT&T (NYSE:T), Abbvie (NYSE:ABBV), Chevron (NYSE:CVX), Verizon Communications (NYSE:VZ), and Pfizer (NYSE:PFE). Source: Maxx-Studio/ShutterStock.com Investors are scrambling to find the best performing ETFs (exchange-traded funds) in whgat has proven so far to be a tough year. Moreover, defensive ETFs that hold stocks with high dividend payouts, such as utilities, real estate, healthcare, and consumer staples, have also attracted significant net inflows this year. | Among them are AT&T (NYSE:T), Abbvie (NYSE:ABBV), Chevron (NYSE:CVX), Verizon Communications (NYSE:VZ), and Pfizer (NYSE:PFE). FDL First Trust Morningstar Dividend Leaders Index Fund $39.18 DHS WisdomTree U.S. High Dividend Fund $90.83 RYE Invesco S&P 500 Equal Weight Energy ETF $77.73 First Trust Morningstar Dividend Leaders Index Fund (FDL) Source: shutterstock.com/bangoland 52 Week Range: $32.31 – $39.24 Dividend Yield: 3.54% Expense Ratio: 0.45% First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL) provides exposure to large-cap firms that have shown dividend consistency as well as dividend sustainability in past. WisdomTree U.S. High Dividend Fund (DHS) Source: shutterstock.com/Imagentle 52-Week Range: $76.44 – $91.90 Dividend Yield: 3.05% Expense Ratio: 0.38% per year WisdomTree U.S. High Dividend Fund (NYSEARCA:DHS) offers the chance to invest in high-dividend-yielding companies in the U.S. equity market. | Among them are AT&T (NYSE:T), Abbvie (NYSE:ABBV), Chevron (NYSE:CVX), Verizon Communications (NYSE:VZ), and Pfizer (NYSE:PFE). FDL First Trust Morningstar Dividend Leaders Index Fund $39.18 DHS WisdomTree U.S. High Dividend Fund $90.83 RYE Invesco S&P 500 Equal Weight Energy ETF $77.73 First Trust Morningstar Dividend Leaders Index Fund (FDL) Source: shutterstock.com/bangoland 52 Week Range: $32.31 – $39.24 Dividend Yield: 3.54% Expense Ratio: 0.45% First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL) provides exposure to large-cap firms that have shown dividend consistency as well as dividend sustainability in past. WisdomTree U.S. High Dividend Fund (DHS) Source: shutterstock.com/Imagentle 52-Week Range: $76.44 – $91.90 Dividend Yield: 3.05% Expense Ratio: 0.38% per year WisdomTree U.S. High Dividend Fund (NYSEARCA:DHS) offers the chance to invest in high-dividend-yielding companies in the U.S. equity market. | Among them are AT&T (NYSE:T), Abbvie (NYSE:ABBV), Chevron (NYSE:CVX), Verizon Communications (NYSE:VZ), and Pfizer (NYSE:PFE). Moreover, defensive ETFs that hold stocks with high dividend payouts, such as utilities, real estate, healthcare, and consumer staples, have also attracted significant net inflows this year. WisdomTree U.S. High Dividend Fund (DHS) Source: shutterstock.com/Imagentle 52-Week Range: $76.44 – $91.90 Dividend Yield: 3.05% Expense Ratio: 0.38% per year WisdomTree U.S. High Dividend Fund (NYSEARCA:DHS) offers the chance to invest in high-dividend-yielding companies in the U.S. equity market. |
23359.0 | 2022-05-27 00:00:00 UTC | Noteworthy Friday Option Activity: QCOM, MCD, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-qcom-mcd-abbv | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Qualcomm Inc (Symbol: QCOM), where a total volume of 43,535 contracts has been traded thus far today, a contract volume which is representative of approximately 4.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.2% of QCOM's average daily trading volume over the past month, of 10.3 million shares. Especially high volume was seen for the $140 strike call option expiring May 27, 2022, with 4,139 contracts trading so far today, representing approximately 413,900 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $140 strike highlighted in orange:
McDonald's Corp (Symbol: MCD) saw options trading volume of 13,072 contracts, representing approximately 1.3 million underlying shares or approximately 41.9% of MCD's average daily trading volume over the past month, of 3.1 million shares. Particularly high volume was seen for the $265 strike call option expiring June 17, 2022, with 2,155 contracts trading so far today, representing approximately 215,500 underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $265 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,352 contracts, representing approximately 3.0 million underlying shares or approximately 40.7% of ABBV's average daily trading volume over the past month, of 7.5 million shares. Especially high volume was seen for the $165 strike call option expiring August 19, 2022, with 10,112 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for QCOM options, MCD options, or ABBV 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 $165 strike call option expiring August 19, 2022, with 10,112 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing MCD's trailing twelve month trading history, with the $265 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,352 contracts, representing approximately 3.0 million underlying shares or approximately 40.7% of ABBV's average daily trading volume over the past month, of 7.5 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for QCOM options, MCD options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing MCD's trailing twelve month trading history, with the $265 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,352 contracts, representing approximately 3.0 million underlying shares or approximately 40.7% of ABBV's average daily trading volume over the past month, of 7.5 million shares. Especially high volume was seen for the $165 strike call option expiring August 19, 2022, with 10,112 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for QCOM options, MCD options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing MCD's trailing twelve month trading history, with the $265 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,352 contracts, representing approximately 3.0 million underlying shares or approximately 40.7% of ABBV's average daily trading volume over the past month, of 7.5 million shares. Especially high volume was seen for the $165 strike call option expiring August 19, 2022, with 10,112 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for QCOM options, MCD options, or ABBV options, visit StockOptionsChannel.com. | Especially high volume was seen for the $165 strike call option expiring August 19, 2022, with 10,112 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing MCD's trailing twelve month trading history, with the $265 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 30,352 contracts, representing approximately 3.0 million underlying shares or approximately 40.7% of ABBV's average daily trading volume over the past month, of 7.5 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for QCOM options, MCD options, or ABBV options, visit StockOptionsChannel.com. |
23360.0 | 2022-05-27 00:00:00 UTC | HDV, YCS: Big ETF Inflows | ABBV | https://www.nasdaq.com/articles/hdv-ycs%3A-big-etf-inflows | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core High Dividend ETF, which added 19,800,000 units, or a 20.2% increase week over week. Among the largest underlying components of HDV, in morning trading today Exxon Mobil is trading flat, and Abbvie is lower by about 1.2%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort Yen, which added 199,290 units, for a 39.9% increase in outstanding units.
VIDEO: HDV, YCS: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of HDV, in morning trading today Exxon Mobil is trading flat, and Abbvie is lower by about 1.2%. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core High Dividend ETF, which added 19,800,000 units, or a 20.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort Yen, which added 199,290 units, for a 39.9% increase in outstanding units. | Among the largest underlying components of HDV, in morning trading today Exxon Mobil is trading flat, and Abbvie is lower by about 1.2%. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core High Dividend ETF, which added 19,800,000 units, or a 20.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort Yen, which added 199,290 units, for a 39.9% increase in outstanding units. | Among the largest underlying components of HDV, in morning trading today Exxon Mobil is trading flat, and Abbvie is lower by about 1.2%. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core High Dividend ETF, which added 19,800,000 units, or a 20.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort Yen, which added 199,290 units, for a 39.9% increase in outstanding units. | Among the largest underlying components of HDV, in morning trading today Exxon Mobil is trading flat, and Abbvie is lower by about 1.2%. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core High Dividend ETF, which added 19,800,000 units, or a 20.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort Yen, which added 199,290 units, for a 39.9% increase in outstanding units. |
23361.0 | 2022-05-26 00:00:00 UTC | SPY, ABBV, ABT, ACN: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/spy-abbv-abt-acn%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 S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $1 inflow -- that's a 0.3% increase week over week in outstanding units (from 90,0,8,80,,000 to 90,3,9,80,,000). Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. For a complete list of holdings, visit the SPY Holdings page »
The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. 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.
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 SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. 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 SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. 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 SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $1 inflow -- that's a 0.3% increase week over week in outstanding units (from 90,0,8,80,,000 to 90,3,9,80,,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. | Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $1 inflow -- that's a 0.3% increase week over week in outstanding units (from 90,0,8,80,,000 to 90,3,9,80,,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. |
23362.0 | 2022-05-26 00:00:00 UTC | Best Health Care Stocks To Invest In 2022? 3 Names To Watch | ABBV | https://www.nasdaq.com/articles/best-health-care-stocks-to-invest-in-2022-3-names-to-watch | nan | nan | Are These The Best Health Care Stocks To Have On Your June 2022 Watchlist?
As talks of inflation and a possible recession dominate the headlines, investors may choose to rotate towards more defensive positions. Hence, health care stocks could be worth looking at. After all, health care stocks encompass a broad range of companies that are normally more resilient to a volatile market. These include drug retailers, insurance providers, hospitals, and biotech companies as well. Given the fact that health care is a necessity, there will always be a demand for the products and services that these companies provide. Therefore, health care stocks could make for a viable play during an uncertain market.
Moreover, the sector rarely lacks positive developments as companies work to find cures for a whole host of diseases. For instance, Merck (NYSE: MRK) recently announced that KEYTRUDA was approved by the European Commission as a neoadjuvant treatment in combination with chemotherapy. It will also serve as monotherapy as adjuvant treatment after surgery for adults with locally advanced or early-stage triple-negative breast cancer at a high risk of recurrence.
Elsewhere, Pfizer (NYSE: PFE) also launched a groundbreaking initiative to provide its high-quality medicines and vaccines on a not-for-profit basis to 45 lower-income countries. Thus, the initiative would hopefully reduce the health inequalities that exist between lower-income countries and the rest of the world. Overall, it is likely that health care stocks will remain relevant. With that said, here are three top names to check out in the stock market today.
Health Care Stocks To Watch Right Now
Thermo Fisher Scientific Inc. (NYSE: TMO)
Biohaven Pharmaceutical Holding Co Ltd (NYSE: BHVN)
AbbVie Inc (NYSE: ABBV)
Thermo Fisher
Thermo Fisher is a health care company that develops, manufactures, and sells a range of products. With annual revenue of approximately $40 billion, it is a world leader in serving science. Thus, the company is set on making sure its customers are at the forefront of making the world a healthier, cleaner, and safer place. The company offers its products and services through various brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon, and PPD. Despite trading sideways over the past year, TMO stock has still risen more than 16% within the period.
Earlier this week, the company and Qatar Genome Program (QGP) announced a partnership to accelerate genomic research and clinical applications of predictive genomics in Qatar. This is a step toward expanding the benefits of precision medicine across Arab populations globally. Together, the companies will develop an Axiom custom genotyping array using whole-genome sequencing data from 19 Arab countries.
With this, it would hopefully help drive scientific research and insights into severe conditions that exist today. This includes diabetes, cardiovascular and metabolic diseases, autism, cancer, and many more. Safe to say, this may well be a building block for implementing precision medicine initiatives at scale for the future of the industry. Investors should also note that the company recently declared a quarterly cash dividend of $0.30 per common share. All in all, would you say that TMO stock has more room to grow?
[Read More] Top Stocks To Watch Right Now? 3 Tech Stocks In Focus
Biohaven Pharmaceutical
Another top health care stock to note today is Biohaven Pharmaceutical. For those unaware, the company’s portfolio aims to improve the lives of patients with debilitating neurological and neuropsychiatric diseases. Biohaven’s progress is largely driven by a wide range of experience in drug development along with the support of top-tier biopharma investors. In fact, BHVN stock has climbed more than 30% within the past month.
For most parts, the movement is largely fueled by the proposed acquisition by Pfizer earlier this month. Both companies announced that they entered into a definitive agreement where Pfizer will acquire Biohaven. Accordingly, Pfizer will acquire all outstanding shares of Biohaven not already owned by Pfizer for $148.50 per share in cash. Safe to say, Pfizer will likely accelerate its mission to deliver migraine medicines to even more patients.
Now, Biohaven is not resting on its laurels. On Monday, the company announced that the U.S. Food and Drug Administration (FDA) has filed and accepted for review a New Drug Application (NDA) for zavegepant nasal spray. This is the only small molecule calcitonin gene-related peptide (CGRP) receptor antagonist in an intranasal formulation, for the acute treatment of migraine in adults. If successful, the drug would open new possibilities for patients who need ultra-rapid relief, in as early as 15 minutes. All things considered, would you be adding BHVN stock to your watchlist?
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AbbVie Inc.
AbbVie is a biopharmaceutical company that focuses on addressing some of the world’s greatest health challenges. Accordingly, it helps develop and commercializes advanced therapies that impact the lives of millions of people all around the globe. It also employs approximately 50,000 employees. The company has been active in May, with multiple updates on both its drug approvals and submissions to regulatory bodies.
Notably, this would include its new drug application to the FDA for investigational ABBV-951. If approved, ABBV-951 will offer patients the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for the treatment of advanced Parkinson’s disease. Also, it submitted this application with results from a Phase 3 clinical trial that demonstrate statistically significant improvement in “On” time without troublesome dyskinesia compared to oral immediate-release CD/LD. “Advanced Parkinson’s disease causes unrelenting challenges and uncertainty for patients and caregivers worldwide,” said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. “We are committed to addressing the unmet needs of those affected by the disease and recognize the urgency for a new treatment that can enable better symptom control through the continuous 24-hour administration of medication.”
On May 23, 2022, the company also announced that the European Medicines Agency has adopted a positive opinion recommending the approval of upadacitinib for the treatment of adults with moderate to severe ulcerative colitis (UC). UC is the chronic inflammation of the large intestine, usually beginning in the rectum and lower colon. Given these encouraging developments, is ABBV stock worth investing in right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “Advanced Parkinson’s disease causes unrelenting challenges and uncertainty for patients and caregivers worldwide,” said Thomas Hudson, M.D., senior vice president, research and development, chief scientific officer, AbbVie. Health Care Stocks To Watch Right Now Thermo Fisher Scientific Inc. (NYSE: TMO) Biohaven Pharmaceutical Holding Co Ltd (NYSE: BHVN) AbbVie Inc (NYSE: ABBV) Thermo Fisher Thermo Fisher is a health care company that develops, manufactures, and sells a range of products. [Read More] Stock Market Today: Dow Jones, S&P 500 Surge; Broadcom To Acquire VMware For $61 Billion AbbVie Inc. AbbVie is a biopharmaceutical company that focuses on addressing some of the world’s greatest health challenges. | Health Care Stocks To Watch Right Now Thermo Fisher Scientific Inc. (NYSE: TMO) Biohaven Pharmaceutical Holding Co Ltd (NYSE: BHVN) AbbVie Inc (NYSE: ABBV) Thermo Fisher Thermo Fisher is a health care company that develops, manufactures, and sells a range of products. [Read More] Stock Market Today: Dow Jones, S&P 500 Surge; Broadcom To Acquire VMware For $61 Billion AbbVie Inc. AbbVie is a biopharmaceutical company that focuses on addressing some of the world’s greatest health challenges. Notably, this would include its new drug application to the FDA for investigational ABBV-951. | Health Care Stocks To Watch Right Now Thermo Fisher Scientific Inc. (NYSE: TMO) Biohaven Pharmaceutical Holding Co Ltd (NYSE: BHVN) AbbVie Inc (NYSE: ABBV) Thermo Fisher Thermo Fisher is a health care company that develops, manufactures, and sells a range of products. [Read More] Stock Market Today: Dow Jones, S&P 500 Surge; Broadcom To Acquire VMware For $61 Billion AbbVie Inc. AbbVie is a biopharmaceutical company that focuses on addressing some of the world’s greatest health challenges. Notably, this would include its new drug application to the FDA for investigational ABBV-951. | If approved, ABBV-951 will offer patients the first continuous subcutaneous delivery of carbidopa/levodopa (CD/LD) prodrugs for the treatment of advanced Parkinson’s disease. Health Care Stocks To Watch Right Now Thermo Fisher Scientific Inc. (NYSE: TMO) Biohaven Pharmaceutical Holding Co Ltd (NYSE: BHVN) AbbVie Inc (NYSE: ABBV) Thermo Fisher Thermo Fisher is a health care company that develops, manufactures, and sells a range of products. [Read More] Stock Market Today: Dow Jones, S&P 500 Surge; Broadcom To Acquire VMware For $61 Billion AbbVie Inc. AbbVie is a biopharmaceutical company that focuses on addressing some of the world’s greatest health challenges. |
23363.0 | 2022-05-26 00:00:00 UTC | Amgen (AMGN) Ahead of Industry This Year So Far: What's Next? | ABBV | https://www.nasdaq.com/articles/amgen-amgn-ahead-of-industry-this-year-so-far%3A-whats-next | nan | nan | Amgen has a diverse and growing portfolio of medicines in large therapeutic categories that it expects will help it drive growth through the end of the decade despite a declining pricing environment.
Amgen AMGN stock has risen 12.4% this year so far against a decrease of 24.5% for the industry.
Image Source: Zacks Investment Research
Amgen’s key drugs like Prolia, Repatha, Xgeva and biosimilars are aiding sales, driven by volume growth as these key drugs are gaining consistent approvals for label expansions.
Moreover, Amgen is evaluating Prolia/Xgeva, Vectibix, Enbrel, Aranesp, Kyprolis, Nplate and Blincyto for additional indications. Kyprolis is being investigated for weekly dosing in combinations with lenalidomide and dexamethasone for relapsed multiple myeloma while Repatha is being investigated for hypercholesterolemia as well as in a cardiovascular outcomes study (VESALIUS-CV) in patients with high cardiovascular risk without prior heart attack or stroke in phase III. Nplate is being studied in phase III for chemotherapy-induced thrombocytopenia. Otezla was approved to treat plaque psoriasis in December 2021 while it is in phase III for moderate-to-severe genital psoriasis. Amgen expects worldwide Otezla sales to grow by low double-digits annually, on average, before its U.S. loss of exclusivity.
Amgen acquired global commercial rights to Otezla from Celgene, which is now part of Bristol-Myers BMY. The acquisition of Otezla from Bristol-Myers significantly strengthened its inflammation portfolio, which should boost long-term growth.
Repatha surpassed $1 billion of sales in 2021 and is expected to grow into a multi-billion-dollar franchise through 2030.
Amgen is also rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in 2022, which could act as catalysts for the stock.
A key drug, Lumakras (sotorasib) was approved for advanced non-small cell lung cancer (NSCLC) in the United States in May 2021 and EU in January 2022. It is now approved in 40 countries. Lumakras is off to an excellent start while its label expansion studies, which have the potential to significantly expand the currently addressable patient population, are progressing rapidly.
Amgen also boasts a strong biosimilars portfolio, which is an important long-term growth driver. Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In 2020, Amgen launched Avsola, a biosimilar of J&J/Merck’s blockbuster immunology medicine Remicade and in January 2021, the company launched Riabni, a biosimilar of Roche’s Rituxan. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023.
In 2022, the volume growth of biosimilars is expected to be offset by lower pricing due to increased competition and average sales price erosion. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023.
Amgen faces its share of challenges. Pricing and competitive pressure are impacting many of Amgen’s products and franchises. Several of Amgen’s marketed drugs are facing increased pricing headwinds.
In April 2022, The Internal Revenue Service (IRS) issued a deficiency notice to Amgen proposing some adjustments for the 2010-15 period, primarily related to the allocation of profits between U.S. entities and Puerto Rico. The notice aims to increase Amgen’s taxable income for the 2013-2015 period, resulting in an additional federal tax of approximately $5.1 billion-plus interest. The IRS additionally proposed penalties of approximately $2 billion for the period 2013 to 2015.
Earlier Amgen received a similar notice of deficiency for the period of 2010 to 2012 from IRS, which proposed increasing Amgen’s taxable income by $3.6 billion for that period. The IRS is also currently auditing the 2016 to 2018 period, which could add more deficiencies or penalties.
Amgen believes the adjustments and penalties proposed by IRS are without merit and said that it would vigorously contest them. However, the litigation will remain an overhang on Amgen shares for some time now as the timing for a resolution is uncertain. Sometimes these issues take years to resolve.
Nonetheless, continued strong growth of key drugs, higher sales from ex-U.S. markets, increased contribution from its high-quality biosimilars and costs savings should keep the stock afloat in 2022.
Zacks Rank
Amgen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. |
23364.0 | 2022-05-26 00:00:00 UTC | 7 High-Yield Retirement Stocks to Buy for Your Nest Egg | ABBV | https://www.nasdaq.com/articles/7-high-yield-retirement-stocks-to-buy-for-your-nest-egg | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These seven high-yield retirement stocks to buy are among the top picks to build a retirement portfolio that will provide a stable income.
Amcor (AMCR): Is a global leader in developing and producing responsible packaging.
3M Company (MMM): This conglomerate has a company history of 120 years.
AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas.
Cardinal Health (CAH): An integrated healthcare services and products company operating intentionally.
Chevron (CVX): This energy giant has several big projects underway.
Exxon Mobil (XOM): Here’s another global oil giant with a rich company history of 152 years.
International Business Machines (IBM): The iconic technology company transforms the past, present, and future of technology.
Source: Dan Kosmayer / Shutterstock
Building a retirement portfolio is a challenge. One has to compensate for the loss of income and it is a process that takes time and dedication. However, it does not need to be a complex decision as the need for a low-risk and income-oriented portfolio is clear. Today, I will discuss seven high-yield retirement stocks to buy to build your nest egg now.
These seven stocks are dividend aristocrats, a list of high-yield stocks suitable for a retirement portfolio as they are among the “65 members of the S&P 500 that haven’t just paid dividends for at least 25 consecutive years – they’ve raised their dividends for a minimum of 25 straight years.”
All these companies have strong balance sheets, well-established businesses, very attractive dividend yields, and can sustain economic and business cycles with capital appreciation. For simplicity, the following data is referred to at closing stock prices on May 20, 2022.
7 Retirement Stocks to Buy to Turbocharge Your Savings
Here are my top seven high-yield retirement stocks to buy for your nest egg:
Ticker Company Price
AMCR Amcor plc $13.20
MMM 3M Company $147.98
ABBV AbbVie Inc. $151.93
CAH Cardinal Health, Inc. $58.07
CVX Chevron Corporation $177.14
XOM Exxon Mobil Corporation $97.15
IBM International Business Machines Corporation $135.96
High-Yield Retirement Stocks: Amcor (AMCR)
Source: shutterstock.com/zedspider
Sector: Consumer Cyclical
Industry: Packaging & Containers
Forward Dividend & Yield: $0.48 (3.68%)
Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments: Flexibles and Rigid Packaging. Amcor provides packaging solutions for many products, such as beverages, food, healthcare, home care, personal care, and pet care.
This global leader in responsible packaging has about 46,000 employees, with business operations in more than 40 countries and revenue of $13 billion. Additionally, the company is focused on sustainability by making packaging that is recyclable and reusable.
Amcor has 39 years of a dividend increase and a forward payout ratio of 57.81%. The dividend frequency is quarterly. The expected 3 to 5 year earnings per share (EPS) growth is 9.82%.
3M Company (MMM)
Source: Pavel Kapysh / Shutterstock.com Large
Sector: Industrials
Industry: Conglomerates
Forward Dividend & Yield: $5.96 (4.09%)
3M Company (NYSE:MMM) is a diversified technology company worldwide, operating through four segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The company was founded in 1902, giving it 120 years of business history. The list of 3M Company products is endless, with 19,079 items on its official website providing solutions for various industries, such as electronics, energy, manufacturing, automotive, communication, and transportation.
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3M Company has 65 years of dividend increases with a forward payout ratio of 52.74% and a quarterly dividend frequency. The expected 3-5 year EPS growth for such a mature company is not negligible, as it stands at 9.5%.
High-Yield Retirement Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Sector: Healthcare
Industry: Drug Manufacturers — General
Forward Dividend & Yield: $5.64 (3.78%)
AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. It has an extensive range of products for immunology like Humira and Skyrizi. In the neuroscience field, it offers Botox, Celexa and Fetzima. Additionally, the company has treatments for oncology, virology, eye care, aesthetics, and other specialty areas.
The firm is investing in big data technology, precision medicine, and in genetics and genomics.
AbbVie has 50 years of dividend increases with a forward payout ratio of 46.8% with a quarterly dividend frequency. The expected 3 to 5 year EPS growth is 2.54%.
Cardinal Health (CAH)
Source: Shutterstock
Sector: Healthcare
Industry: Medical Distribution
Forward Dividend & Yield: $1.98 (3.55%)
Cardinal Health (NYSE:CAH) is an integrated healthcare company providing services and products in the United States, Canada, Europe, and Asia. It operates in two segments: Pharmaceutical and Medical.
The company provides services for a wide audience, consisting of the home care sector, hospital pharmacy, community laboratory, health centers, retail independent pharmacy, ambulatory surgery center supplies, and solutions, among others. Some of its pharmaceutical products cover sectors like biosimilars, influenza, nuclear medicine, and specialty drugs.
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Cardinal Health has 36 years of dividend increases with a very healthy forward payout ratio of 35.77%. The dividend frequency is quarterly. The business outlook is stable and this is reflected in the expected 3 to 5 year EPS growth of 1.62%.
High-Yield Retirement Stocks: Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
Sector: Energy
Industry: Oil & Gas Integrated
Forward Dividend & Yield: 5.68 (3.29%)
Chevron (NYSE:CVX) is an integrated energy and chemicals company with operations worldwide. The company operates in two segments: Upstream and Downstream. It was founded in 1879, 143 years ago.
The company has important projects, like the Gorgon Project, one of the world’s largest natural gas projects and a very important one for the Australian economy. It also operates the Wheatstone project, one of Australia’s largest resource developments; the Jack St. Malo project in the U.S. Gulf of Mexico; the Big Foot project in the U.S. Gulf of Mexico; the Mafumeira Sul project in Angola; and the Permian Basin project, just to name a few.
Chevron has 35 years of a dividend increase and a forward payout ratio of 38.95% It pays a quarterly dividend. Additionally, the company is expected to have a 3 to 5 year EPS growth of 11.55%.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
Sector: Energy
Industry: Oil & Gas Integrated
Forward Dividend & Yield: $3.52 (3.83%)
Exxon Mobil, (NYSE:XOM) along with Chevron, has been in the best performing sector in 2022: the energy sector. When you invest in the long-term, like building a diversified retirement portfolio, having stocks that have appreciated significantly offers additional investment opportunities. It is not a bad idea to sell some shares and book profits while having the remaining ones continue to build wealth and recurring income.
Exxon Mobil explores and produces crude oil and natural gas in the United States and internationally, operating through Upstream, Downstream, and Chemical segments. It was founded in 1870, 152 years ago.
The firm is committed to achieving net-zero emissions from its operating assets by 2050. It has 38 years of dividend increases and a forward payout ratio of 42.19%. The dividend frequency is quarterly.
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The expected 3 to 5 year EPS growth of 20.41% is very high, signaling strong business prospects.
High-Yield Retirement Stocks: International Business Machines (IBM)
Source: shutterstock.com/LCV
Sector: Technology
Industry: Information Technology Services
Forward Dividend & Yield: $6.60 (5.14%)
International Business Machines (NYSE:IBM) is a provider of integrated solutions and services worldwide and operates through four business segments: Software, Consulting, Infrastructure, and Financing. The firm was founded in 1911, which gives them 111 years of business activity.
The technology firm provides many tools for businesses, such as Hybrid Cloud, Public Cloud, Blockchain, IBM Watson, Security, Data & analytics, and Quantum computing, among others. Some of the services IBM provides offer solutions for different sectors, including Financial Services, Consumer goods, Energy, Retail, and Telecommunications.
The dividend has increased for 28 years, and the firm has a high forward payout ratio of 62.49%.
The quarterly dividend frequency is ideal, like all other high-yield retirement stocks to buy on this list. Additionally, the 3 to 5 year expected EPS growth of 9.02% is strong for such a large and mature technology company.
On the date of publication, Stavros Georgiadis, CFA 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 High-Yield Retirement Stocks to Buy for Your Nest Egg 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. | 7 Retirement Stocks to Buy to Turbocharge Your Savings Here are my top seven high-yield retirement stocks to buy for your nest egg: Ticker Company Price AMCR Amcor plc $13.20 MMM 3M Company $147.98 ABBV AbbVie Inc. $151.93 CAH Cardinal Health, Inc. $58.07 CVX Chevron Corporation $177.14 XOM Exxon Mobil Corporation $97.15 IBM International Business Machines Corporation $135.96 High-Yield Retirement Stocks: Amcor (AMCR) Source: shutterstock.com/zedspider Sector: Consumer Cyclical Industry: Packaging & Containers Forward Dividend & Yield: $0.48 (3.68%) Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas. High-Yield Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Sector: Healthcare Industry: Drug Manufacturers — General Forward Dividend & Yield: $5.64 (3.78%) AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. | 7 Retirement Stocks to Buy to Turbocharge Your Savings Here are my top seven high-yield retirement stocks to buy for your nest egg: Ticker Company Price AMCR Amcor plc $13.20 MMM 3M Company $147.98 ABBV AbbVie Inc. $151.93 CAH Cardinal Health, Inc. $58.07 CVX Chevron Corporation $177.14 XOM Exxon Mobil Corporation $97.15 IBM International Business Machines Corporation $135.96 High-Yield Retirement Stocks: Amcor (AMCR) Source: shutterstock.com/zedspider Sector: Consumer Cyclical Industry: Packaging & Containers Forward Dividend & Yield: $0.48 (3.68%) Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas. High-Yield Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Sector: Healthcare Industry: Drug Manufacturers — General Forward Dividend & Yield: $5.64 (3.78%) AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. | 7 Retirement Stocks to Buy to Turbocharge Your Savings Here are my top seven high-yield retirement stocks to buy for your nest egg: Ticker Company Price AMCR Amcor plc $13.20 MMM 3M Company $147.98 ABBV AbbVie Inc. $151.93 CAH Cardinal Health, Inc. $58.07 CVX Chevron Corporation $177.14 XOM Exxon Mobil Corporation $97.15 IBM International Business Machines Corporation $135.96 High-Yield Retirement Stocks: Amcor (AMCR) Source: shutterstock.com/zedspider Sector: Consumer Cyclical Industry: Packaging & Containers Forward Dividend & Yield: $0.48 (3.68%) Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas. High-Yield Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Sector: Healthcare Industry: Drug Manufacturers — General Forward Dividend & Yield: $5.64 (3.78%) AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. | 7 Retirement Stocks to Buy to Turbocharge Your Savings Here are my top seven high-yield retirement stocks to buy for your nest egg: Ticker Company Price AMCR Amcor plc $13.20 MMM 3M Company $147.98 ABBV AbbVie Inc. $151.93 CAH Cardinal Health, Inc. $58.07 CVX Chevron Corporation $177.14 XOM Exxon Mobil Corporation $97.15 IBM International Business Machines Corporation $135.96 High-Yield Retirement Stocks: Amcor (AMCR) Source: shutterstock.com/zedspider Sector: Consumer Cyclical Industry: Packaging & Containers Forward Dividend & Yield: $0.48 (3.68%) Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas. High-Yield Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Sector: Healthcare Industry: Drug Manufacturers — General Forward Dividend & Yield: $5.64 (3.78%) AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. |
23365.0 | 2022-05-26 00:00:00 UTC | 3 Healthcare Stocks You Can Buy and Hold for the Next Decade | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-you-can-buy-and-hold-for-the-next-decade-0 | nan | nan | It's exciting to add new stocks to your portfolio or adjust positions. But it's also nice to own a handful of stocks that you can buy and hold on to for a long time -- like a decade or longer. You know that you can count on them for leadership in their market and earnings growth. Eventually, that should translate into share price growth too.
The healthcare sector offers many choices across the businesses of biotech, pharma, and medical devices. Here, I'll focus on three companies that stand out for their strong market positions: a biotech company and a medical device company that each dominate their fields, and a pharmaceutical player on the way to winning in market share. Let's take a look at each.
Image source: Getty Images.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the worldwide leader in cystic fibrosis (CF) treatment. The company makes four CF drugs. But the most recently approved -- Trikafta -- is its star product. Trikafta generated more than $1.7 billion in revenue in the most recent quarter. That's 84% of total product revenue. Trikafta has the ability to treat 90% of all CF patients, but Vertex isn't stopping there. The company has partnered with Moderna to develop a treatment for the remaining 10% of CF patients. The companies aim to launch clinical trials by the end of the year.
The biotech company is also moving closer to expanding its commercialized products beyond CF. It has programs in the pipeline for a variety of indications, including blood disorders, pain, and type 1 diabetes. The closest-to-market candidate is a gene-editing one-time curative treatment for blood disorders sickle cell disease and beta thalassemia. Vertex and partner CRISPR Therapeutics plan on filing for regulatory approval by the end of this year. Considering Vertex's CF and non-CF programs, the company could generate billions of dollars in annual revenue well into the future.
Vertex is trading at about 27 times trailing-12-month earnings. That's compared to more than 54 back in 2020. At the same time, revenue and net income have moved considerably higher.
2. Intuitive Surgical
Intuitive Surgical (NASDAQ: ISRG) is the biggest player in the robotic surgery market. The company's share totals more than 79%, according to BIS Research. Intuitive's flagship product is the da Vinci surgical robot. It's used for various types of minimally invasive surgery -- for example, hernia repair. Intuitive has installed more than 6,900 da Vinci systems worldwide. Intuitive generates revenue from selling the systems -- but even more revenue from selling the disposable instruments and accessories needed for da Vinci procedures.
Now here's why I'm not too concerned about rivals taking major market share away from Intuitive. First, the da Vinci system represents quite an investment. The systems go for about $2 million. Once hospitals spend that much, they may want to keep the system for a long time. And most surgeons have been trained on the da Vinci -- so they might want to stick with it too.
All of this means you can count on Intuitive generating major revenue today and over time. Intuitive shares look cheap right now considering the company's growth potential. They're trading at 48 times trailing-12-month earnings. That's down from more than 70 back in January.
3. AbbVie
The bad news for pharmaceutical company AbbVie (NYSE: ABBV) is that revenue from its blockbuster immunology drug Humira is on the decline. Biosimilar competition is taking market share in Europe -- and biosimilars are set to hit the U.S. market next year. But here's the good news: AbbVie has other drugs that may compensate. AbbVie has said it expects combined peak sales of two other immunology treatments -- Skyrizi and Rinvoq -- to top Humira's peak revenue. Both drugs eventually could be used across Humira's indications.
In the first quarter, Skyrizi sales jumped more than 63% and sales of Rinvoq climbed more than 53%. AbbVie's aesthetics portfolio is also adding to growth. The company sells the popular anti-wrinkle product Botox and injectable gel filler Juvederm. Aesthetics revenue in the first quarter advanced more than 20% to top $1.3 billion.
Importantly, even with the decline in Humira revenue, AbbVie has the potential to keep growing in a major way. It's expected to become the No. 1 pharmaceutical company worldwide by prescription drug market share in 2026, according to Statista.
AbbVie has already delivered performance to investors. It's gained more than 80% over the past three years. But considering the growth ahead, there's likely more share performance to come. And that's why it's a good idea to buy this pharmaceutical stock now and hold on for the next decade.
10 stocks we like better than Vertex Pharmaceuticals
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Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Intuitive Surgical, 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. | AbbVie The bad news for pharmaceutical company AbbVie (NYSE: ABBV) is that revenue from its blockbuster immunology drug Humira is on the decline. But here's the good news: AbbVie has other drugs that may compensate. AbbVie has said it expects combined peak sales of two other immunology treatments -- Skyrizi and Rinvoq -- to top Humira's peak revenue. | AbbVie has said it expects combined peak sales of two other immunology treatments -- Skyrizi and Rinvoq -- to top Humira's peak revenue. AbbVie The bad news for pharmaceutical company AbbVie (NYSE: ABBV) is that revenue from its blockbuster immunology drug Humira is on the decline. But here's the good news: AbbVie has other drugs that may compensate. | AbbVie The bad news for pharmaceutical company AbbVie (NYSE: ABBV) is that revenue from its blockbuster immunology drug Humira is on the decline. But here's the good news: AbbVie has other drugs that may compensate. AbbVie has said it expects combined peak sales of two other immunology treatments -- Skyrizi and Rinvoq -- to top Humira's peak revenue. | AbbVie The bad news for pharmaceutical company AbbVie (NYSE: ABBV) is that revenue from its blockbuster immunology drug Humira is on the decline. But here's the good news: AbbVie has other drugs that may compensate. AbbVie has said it expects combined peak sales of two other immunology treatments -- Skyrizi and Rinvoq -- to top Humira's peak revenue. |
23366.0 | 2022-05-25 00:00:00 UTC | SpringWorks (SWTX) Down Despite Desmoid Tumors Study Meeting Goal | ABBV | https://www.nasdaq.com/articles/springworks-swtx-down-despite-desmoid-tumors-study-meeting-goal | nan | nan | SpringWorks Therapeutics, Inc. SWTX announced the phase III DeFi study, which evaluated its investigational gamma-secretase inhibitor, nirogacestat, for treating adult patients with progressing desmoid tumors, has met the primary and all key secondary endpoints.
Data from the study showed that treatment with nirogacestat led to a statistically significant improvement in progression-free survival (PFS) — the study’s primary endpoint — versus placebo, with a 71% reduction in the risk of disease progression –
Treatment with nirogacestat also led to significant improvements in objective response rate (ORR) and patient-reported outcomes compared with placebo, which was the study’s secondary endpoints.
Nirogacestat was generally well tolerated in the study and had a manageable safety profile.
SpringWorks plans to file a new drug application to the FDA for nirogacestat to treat desmoid tumors, a rare, aggressive tumor of the soft tissues, in the second half of 2022.
Despite the positive data from the above-mentioned study, shares of SpringWorks were down 11.4% on Tuesday following the news. The stock has plunged 45.7% so far this year compared with the industry’s decline of 23.5%.
Image Source: Zacks Investment Research
We note that five studies are currently evaluating nirogacestat in combination with investigational B-cell maturation antigen’s (BCMA) of several big drugmakers for treating relapsed or refractory multiple myeloma.
In April 2022, SpringWorks entered into a collaboration with Regeneron Pharmaceuticals REGN to evaluate nirogacestat in combination with the latter’s investigational bispecific antibody targeting BCMA and CD3 — REGN5458 — for treating relapsed or refractory multiple myeloma.
Per the deal, REGN will be solely responsible for the clinical development and assume all costs related to the study.
SpringWorks is also planning to evaluate nirogacestat in combination with Seagen’s investigational monoclonal antibody targeting BCMA – SEA-BCMA and AbbVie’s ABBV investigational CD3 bispecific antibody directed against BCMA, ABBV-383 for treating relapsed or refractory multiple myeloma.
Last December, SpringWorks entered into a collaboration agreement with AbbVie to evaluate nirogacestat in combination with ABBV-383 for the treatment of patients with relapsed or refractory multiple myeloma. A phase Ib study is expected to begin later in 2022.
The combination studies with Regeneron, Seagen and AbbVie are expected to begin at a later date.
Zacks Rank & Stock to Consider
SpringWorks currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the biotech sector is Leap Therapeutics, Inc. LPTX, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Leap Therapeutics’ loss per share has narrowed 11.1% for 2022 and 5.9% for 2023 over the past 60 days.
Earnings of Leap Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion. LPTX delivered an earnings surprise of 1.92%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | SpringWorks is also planning to evaluate nirogacestat in combination with Seagen’s investigational monoclonal antibody targeting BCMA – SEA-BCMA and AbbVie’s ABBV investigational CD3 bispecific antibody directed against BCMA, ABBV-383 for treating relapsed or refractory multiple myeloma. Last December, SpringWorks entered into a collaboration agreement with AbbVie to evaluate nirogacestat in combination with ABBV-383 for the treatment of patients with relapsed or refractory multiple myeloma. The combination studies with Regeneron, Seagen and AbbVie are expected to begin at a later date. | SpringWorks is also planning to evaluate nirogacestat in combination with Seagen’s investigational monoclonal antibody targeting BCMA – SEA-BCMA and AbbVie’s ABBV investigational CD3 bispecific antibody directed against BCMA, ABBV-383 for treating relapsed or refractory multiple myeloma. Last December, SpringWorks entered into a collaboration agreement with AbbVie to evaluate nirogacestat in combination with ABBV-383 for the treatment of patients with relapsed or refractory multiple myeloma. The combination studies with Regeneron, Seagen and AbbVie are expected to begin at a later date. | SpringWorks is also planning to evaluate nirogacestat in combination with Seagen’s investigational monoclonal antibody targeting BCMA – SEA-BCMA and AbbVie’s ABBV investigational CD3 bispecific antibody directed against BCMA, ABBV-383 for treating relapsed or refractory multiple myeloma. Last December, SpringWorks entered into a collaboration agreement with AbbVie to evaluate nirogacestat in combination with ABBV-383 for the treatment of patients with relapsed or refractory multiple myeloma. The combination studies with Regeneron, Seagen and AbbVie are expected to begin at a later date. | SpringWorks is also planning to evaluate nirogacestat in combination with Seagen’s investigational monoclonal antibody targeting BCMA – SEA-BCMA and AbbVie’s ABBV investigational CD3 bispecific antibody directed against BCMA, ABBV-383 for treating relapsed or refractory multiple myeloma. Last December, SpringWorks entered into a collaboration agreement with AbbVie to evaluate nirogacestat in combination with ABBV-383 for the treatment of patients with relapsed or refractory multiple myeloma. The combination studies with Regeneron, Seagen and AbbVie are expected to begin at a later date. |
23367.0 | 2022-05-25 00:00:00 UTC | 2 Dividend Kings That Are Soundly Beating the Market in 2022 | ABBV | https://www.nasdaq.com/articles/2-dividend-kings-that-are-soundly-beating-the-market-in-2022 | nan | nan | Are you not sure about where to invest right now? Dividend stocks can be a great place to start looking. Their financials are generally sound, and they can enable you to collect some recurring cash flow while you hang on to your investment. And at a time when investors have been looking for safety, some of them have also been outperforming the markets in 2022 by a wide margin.
A couple of Dividend Kings that have been doing particularly well this year are AbbVie (NYSE: ABBV) and Altria Group (NYSE: MO). They are both up more than 9% since the first of January, and they look like rockstars compared to the S&P 500 and its 16% fall thus far. And those returns don't even factor in their respective yields.
Image source: Getty Images.
1. AbbVie
AbbVie is a top healthcare stock that yields 3.7% annually, which is more than double the S&P 500 average of less than 1.4%. The company's dividend-increasing streak goes back 50 years if you include when it was part of Abbott Laboratories; AbbVie spun off in 2013, and has been making its own regular rate hikes since then. This year the company raised its dividend payments by 8.5%, and shareholders will now collect $1.41 every quarter, up from $1.30 previously.
What risk-averse investors will love about this stock is how broad and diverse its business is. While top-selling inflammation drug Humira generated $4.7 billion for the company through the first three months of 2022, that represented a little more than one-third of AbbVie's total sales. Other drugs from oncology, neuroscience, eye care, and other areas help account for the rest. Psoriasis drug Skyrizi brought in revenue of $940 million during the period, growing at an impressive rate of 64%. And the company's Botox Cosmetic business reported revenue of $641 million, which was up 34%.
AbbVie's broad business can provide some solid stability at a time when other less-diversified companies struggle. The company also generates a ton of cash flow. Last quarter, operating cash flow was $4.9 billion, nearly unchanged from the same period last year. That's nearly double the $2.5 billion that the company paid out in dividends during the past three months.
AbbVie's solid financials make this an incredibly safe place to not just park your money right now, but to also hold it for the long haul and collect its payout. It would take a $26,800 investment in the stock to generate $1,000 in annual dividend income from AbbVie at its current rate. And that income would likely rise in the future.
2. Altria
Tobacco giant Altria is a promising defensive stock that income investors will likely be drawn to right now. Not only can it provide stability, but its yield of 7% is among the highest payouts investors will find among large-cap stocks.
Net revenue of $5.9 billion for the period ended March 31 was down 2.4% year-over-year but the company's operating income was still up 7.2% as Altria kept its costs firm and reduced marketing, administration, and research costs by 18%. It's a positive sign that the business can generate positive earnings growth despite having a top line that isn't terribly strong, and that's what makes Altria an attractive defensive stock to hold -- its financials are fairly stable.
This year, the company projects that its adjusted diluted per-share earnings will come in between $4.79 and $4.93. At the lower end of that guidance, its payout ratio would still only be 75%. That suggests the dividend is in little danger. And it would probably take a lot for the company to break its streak of 50+ years of increasing dividends.
To collect $1,000 in dividends from Altria, you would need to invest around $14,200. And like with AbbVie, that dividend income will likely increase over the years. Both stocks could make for attractive investment options right now, especially if you're worried about the state of the stock market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's dividend-increasing streak goes back 50 years if you include when it was part of Abbott Laboratories; AbbVie spun off in 2013, and has been making its own regular rate hikes since then. While top-selling inflammation drug Humira generated $4.7 billion for the company through the first three months of 2022, that represented a little more than one-third of AbbVie's total sales. AbbVie's solid financials make this an incredibly safe place to not just park your money right now, but to also hold it for the long haul and collect its payout. | AbbVie's broad business can provide some solid stability at a time when other less-diversified companies struggle. A couple of Dividend Kings that have been doing particularly well this year are AbbVie (NYSE: ABBV) and Altria Group (NYSE: MO). AbbVie AbbVie is a top healthcare stock that yields 3.7% annually, which is more than double the S&P 500 average of less than 1.4%. | It would take a $26,800 investment in the stock to generate $1,000 in annual dividend income from AbbVie at its current rate. A couple of Dividend Kings that have been doing particularly well this year are AbbVie (NYSE: ABBV) and Altria Group (NYSE: MO). AbbVie AbbVie is a top healthcare stock that yields 3.7% annually, which is more than double the S&P 500 average of less than 1.4%. | It would take a $26,800 investment in the stock to generate $1,000 in annual dividend income from AbbVie at its current rate. And like with AbbVie, that dividend income will likely increase over the years. A couple of Dividend Kings that have been doing particularly well this year are AbbVie (NYSE: ABBV) and Altria Group (NYSE: MO). |
23368.0 | 2022-05-25 00:00:00 UTC | Teva, Allergan reach $161.5 million opioid settlement with West Virginia | ABBV | https://www.nasdaq.com/articles/teva-allergan-reach-%24161.5-million-opioid-settlement-with-west-virginia | nan | nan | By Dietrich Knauth
May 25 (Reuters) - Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit reached a settlement worth $161.5 million to resolve claims the companies fueled an opioid epidemic in West Virginia, state attorney general Patrick Morrisey said Wednesday.
The agreement is the largest state-negotiated settlement in West Virginia history, and consists of $134 million in cash plus the contribution of drugs used to treat opioid overdoses, Morrisey said.
"This is a great day for West Virginia," Morrisey said at a press conference.
The settlement ended a trial that had been proceeding for two months in Kanawha County Circuit Court.
The companies did not admit wrongdoing in making the settlement.
Teva will pay $83 million in cash, as well as a 10-year supply of Narcan, a drug used to stop opioid overdoses, which the state valued at $27 million.
(Reporting by Dietrich Knauth; Editing by Chizu Nomiyama)
((Dietrich.Knauth@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 Dietrich Knauth May 25 (Reuters) - Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit reached a settlement worth $161.5 million to resolve claims the companies fueled an opioid epidemic in West Virginia, state attorney general Patrick Morrisey said Wednesday. The agreement is the largest state-negotiated settlement in West Virginia history, and consists of $134 million in cash plus the contribution of drugs used to treat opioid overdoses, Morrisey said. The settlement ended a trial that had been proceeding for two months in Kanawha County Circuit Court. | By Dietrich Knauth May 25 (Reuters) - Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit reached a settlement worth $161.5 million to resolve claims the companies fueled an opioid epidemic in West Virginia, state attorney general Patrick Morrisey said Wednesday. The agreement is the largest state-negotiated settlement in West Virginia history, and consists of $134 million in cash plus the contribution of drugs used to treat opioid overdoses, Morrisey said. "This is a great day for West Virginia," Morrisey said at a press conference. | By Dietrich Knauth May 25 (Reuters) - Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit reached a settlement worth $161.5 million to resolve claims the companies fueled an opioid epidemic in West Virginia, state attorney general Patrick Morrisey said Wednesday. The agreement is the largest state-negotiated settlement in West Virginia history, and consists of $134 million in cash plus the contribution of drugs used to treat opioid overdoses, Morrisey said. Teva will pay $83 million in cash, as well as a 10-year supply of Narcan, a drug used to stop opioid overdoses, which the state valued at $27 million. | By Dietrich Knauth May 25 (Reuters) - Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit reached a settlement worth $161.5 million to resolve claims the companies fueled an opioid epidemic in West Virginia, state attorney general Patrick Morrisey said Wednesday. "This is a great day for West Virginia," Morrisey said at a press conference. The settlement ended a trial that had been proceeding for two months in Kanawha County Circuit Court. |
23369.0 | 2022-05-25 00:00:00 UTC | 7 Retirement Stocks to Buy to Turbocharge Your Savings | ABBV | https://www.nasdaq.com/articles/7-retirement-stocks-to-buy-to-turbocharge-your-savings | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Buying quality retirement stocks can provide both safety and growth to keep savings goals on track
AbbVie (ABBV): With revenue concerns abating, it’s time to take a fresh look at this dividend king.
Amgen (AMGN): This biotech giant has an ideal combination of in-market products and products in its pipeline.
Apple (AAPL): Make this tech giant prove that the bears are right before abandoning its stock.
Dollar General (DG): Inflation and a weakening economy will help keep the revenue coming.
Western Union (WU): In tough times, the company’s reliability helps keep investors afloat.
Schwab U.S. Dividend Equity ETF (SCHD): An ETF that tracks the Dow Jones U.S. Dividend 100 index.
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): This ETF invests exclusively in the elite group of companies known as dividend aristocrats.
Source: kenary820 / Shutterstock
For many years, the model for finding retirement stocks to buy got clouded with some FOMO (fear of missing out) and YOLO (you only live once). Investors got conditioned to years where a 20% or higher return was the normal.
However, to borrow an axiom from golf, 2022 is turning out to be a stark reminder to investors that “sometimes par is a really good score.” Whatever happens over the next few years (and I’ll always remain a cautious optimist), the new reality is that investors who get high single-digit growth will be doing well.
One way to boost the total return of your portfolio is with quality dividend stocks. Reinvesting these regular dividends is a simple way to boost the total return of your portfolio. That makes them the ideal choice for long-term retirement portfolios where safety and security should be the top priority.
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So let’s get right to it. Here are seven retirement stocks to buy that combine modest growth with safe dividends.
Ticker Company Current Price
ABBV AbbVie $149.11
AMGN Amgen $251.89
AAPL Apple $140.36
DG Dollar General $195.95
WU Western Union $17.36
SCHD Schwab U.S. Dividend Equity ETF $76.11
NOBL ProShares S&P 500 Dividend Aristocrats ETF $89.67
AbbVie (ABBV)
The first of the retirement stocks to buy is AbbVie (NYSE:ABBV). Concerns about expiring patents for its flagship drug, Humira, gave analysts reasonable concerns about the company’s revenue outlook. However, the company’s most recent earnings report should quell those concerns.
First the company is showing that sales of Humira in Europe (where Humira has lost its patent protection) are not declining as rapidly as expected. Second, AbbVie has in-market replacements for Humira that are delivering strong year-over-year revenue growth.
My InvestorPlace colleague Josh Enomoto also reminded investors that AbbVie is likely to benefit from its acquisition of Allergan, which put Botox into the company’s product portfolio.
Investors also get a stock that remains up 11% for the year and recently joined the ranks of dividend kings. This means it has increased its dividend each year for 50 consecutive years. And ABBV stock has a dividend yield that currently is 3.73%.
Amgen (AMGN)
Sticking in the biotech space, Amgen (NASDAQ:AMGN) is another company that is up 10% for the year. One reason for this is that investors are no longer chasing after speculative biotechs that were competing in the Covid-19 vaccine race.
That is putting attention back on companies that are delivering revenue and earnings today and will continue to do so tomorrow. That’s Amgen. The company’s portfolio focuses heavily on treatments for heart disease and cancer which means demand will stay high.
And, as Tezcan Gecgil points out, the company is building a new manufacturing plant in North Carolina. With supply chains likely to become shorter in future years, this should aid the company’s efficiency as well as lower costs.
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Amgen has increased its dividend in each of the last 11 years and currently has a dividend yield of 3.14%.
Apple (AAPL)
When considering retirement stocks to buy, you may challenge my decision to put Apple (NASDAQ:AAPL) on this list. There are bearish views of the “FAANG” stock. And AAPL stock is down 22% so far in 2022.
However, much of the concern about Apple’s growth is based on its iPhone. But the company has shown over the last few years that its Services division is responsible for a good bit of the company’s growth in recent years.
And while Apple doesn’t offer a particularly impressive dividend yield, it has been increasing its dividend in each of the last 11 years. Plus, the company has a history of share buybacks.
That’s why you should make Apple prove that it’s not a great long-term growth stock before you abandon it.
Dollar General (DG)
Inflation is taking a bite out of consumer’s take-home pay and that is showing up in the results of many retailers. And that includes discount stores such as Dollar General (NYSE:DG). I’m writing this a few days before the company reports earnings. If the trend continues, Dollar General is likely to deliver guidance that reflects the effect that inflation is having, and will continue to have on its business.
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However, the company has a business model that puts its store locations in areas that are not easily serviced by the larger chains. This is likely to give the company a distinct advantage as consumers will be looking to find ways to save money on gas as well as on their groceries. And Dollar General is putting more emphasis on allowing customers to use their stores as a one-stop location, which should be an additional catalyst.
Western Union (WU)
Many economists are predicting a recession in the United States if not in 2022, then sometime in 2023. If you share that view, then Western Union (NYSE:WU) may be worth a look. The company remains a reliable option for the underbanked or unbanked. This group may rely on the company’s ability to facilitate peer-to-peer money transfers as well as providing bill payment services. The company is also embarking on an internal strategic review, which may lead to greater efficiency in the company’s operations.
WU stock is down 6% this year and currently has a consensus Hold rating. However, the stock is still a favorite among institutional investors. And it currently has a dividend yield of over 5% with a seven year streak of raising its dividend.
Schwab U.S. Dividend Equity ETF (SCHD)
An alternative approach to finding retirement stocks to buy is to look at dividend-focused exchange-traded funds (ETFs). I have two on this list. The first is the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD).
This ETF tracks the performance of the Dow Jones U.S. Dividend 100 index. This means the fund invests in high-yielding U.S. stocks that are financially sound and have a history of paying consistent dividends. In fact, one of the fund’s largest holdings is Amgen which is also on this list of retirement stocks.
This is reflected in the fund’s dividend yield which is over 3% (3.04%) at the time of this writing. The fund also has what an amazingly low expense ratio of just 0.06%. That means that for a $10,000 investment investors pay just $6.
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The fund is down about 7.5% for the year. However, much of that loss has occurred with the broad selloff in mid-May.
ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
The last security on this list of retirement stocks to buy is the ProShares S&P 500 Dividend Aristocrats ETF (NYSEARCA:NOBL). As its name implies, the benefit of this fund is that it invests exclusively in companies that are part of the dividend aristocrats club. This means that the companies have increased their dividends for at least 25 consecutive years. Companies that prioritize a dividend in this fashion are much more likely to prioritize the dividend.
Another feature of the fund is that it does not allow any sector carry more than 30% of the weighting in the fund. The top three weighted sectors in the fund are consumer staples, industrials and materials.
The fund has an expense ratio of 0.35%, which is considered a bit expensive. And it has not been spared from the market selloff. The fund is down 10% in 2022.
On the date of publication, Chris Markoch had a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Retirement Stocks to Buy to Turbocharge Your Savings 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. | My InvestorPlace colleague Josh Enomoto also reminded investors that AbbVie is likely to benefit from its acquisition of Allergan, which put Botox into the company’s product portfolio. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Buying quality retirement stocks can provide both safety and growth to keep savings goals on track AbbVie (ABBV): With revenue concerns abating, it’s time to take a fresh look at this dividend king. Ticker Company Current Price ABBV AbbVie $149.11 AMGN Amgen $251.89 AAPL Apple $140.36 DG Dollar General $195.95 WU Western Union $17.36 SCHD Schwab U.S. Dividend Equity ETF $76.11 NOBL ProShares S&P 500 Dividend Aristocrats ETF $89.67 AbbVie (ABBV) The first of the retirement stocks to buy is AbbVie (NYSE:ABBV). | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Buying quality retirement stocks can provide both safety and growth to keep savings goals on track AbbVie (ABBV): With revenue concerns abating, it’s time to take a fresh look at this dividend king. Ticker Company Current Price ABBV AbbVie $149.11 AMGN Amgen $251.89 AAPL Apple $140.36 DG Dollar General $195.95 WU Western Union $17.36 SCHD Schwab U.S. Dividend Equity ETF $76.11 NOBL ProShares S&P 500 Dividend Aristocrats ETF $89.67 AbbVie (ABBV) The first of the retirement stocks to buy is AbbVie (NYSE:ABBV). Second, AbbVie has in-market replacements for Humira that are delivering strong year-over-year revenue growth. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Buying quality retirement stocks can provide both safety and growth to keep savings goals on track AbbVie (ABBV): With revenue concerns abating, it’s time to take a fresh look at this dividend king. Ticker Company Current Price ABBV AbbVie $149.11 AMGN Amgen $251.89 AAPL Apple $140.36 DG Dollar General $195.95 WU Western Union $17.36 SCHD Schwab U.S. Dividend Equity ETF $76.11 NOBL ProShares S&P 500 Dividend Aristocrats ETF $89.67 AbbVie (ABBV) The first of the retirement stocks to buy is AbbVie (NYSE:ABBV). Second, AbbVie has in-market replacements for Humira that are delivering strong year-over-year revenue growth. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Buying quality retirement stocks can provide both safety and growth to keep savings goals on track AbbVie (ABBV): With revenue concerns abating, it’s time to take a fresh look at this dividend king. Ticker Company Current Price ABBV AbbVie $149.11 AMGN Amgen $251.89 AAPL Apple $140.36 DG Dollar General $195.95 WU Western Union $17.36 SCHD Schwab U.S. Dividend Equity ETF $76.11 NOBL ProShares S&P 500 Dividend Aristocrats ETF $89.67 AbbVie (ABBV) The first of the retirement stocks to buy is AbbVie (NYSE:ABBV). Second, AbbVie has in-market replacements for Humira that are delivering strong year-over-year revenue growth. |
23370.0 | 2022-05-24 00:00:00 UTC | 3 Great Dividend Stocks to Buy Now and Hold | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-to-buy-now-and-hold | nan | nan | Today’s episode of Full Court Finance at Zacks breaks down the broader economic forces behind the current market turmoil. The episode then explores three strong dividend-paying stocks from three different areas of the economy that investors might want to consider buying during the market downturn and holding for the long run.
Both the S&P 500 and the Nasdaq are coming off their seventh-straight weekly declines, marking their worst losing streaks since 2001. Dot.com bust comparisons highlight how rough of a stretch stocks have suffered through as investors recalibrate nearly everything in the wake of rising U.S. interest rates, soaring prices, and global economic uncertainty that’s seen big Wall Street banks lower their GDP forecasts.
Bullish investors once again temporarily prevented the S&P 500 from officially entering a bear market last Friday, and stocks closed higher Monday. But the selling roared back Tuesday, with the Nasdaq down over 3% in early morning trading and the S&P 500 2.3% lower.
The dual setbacks of the Russian invasion and massive covid lockdowns in major Chinese cities continue to reverberate throughout nearly every pocket of the economy. A Monday speech by President Biden in Japan could possibly inflame tensions between the U.S. and China. All of the turmoil, coupled with the Fed’s efforts to raise rates, has investors all around the world rushing for the safety of U.S. Treasuries and dollars.
Last week, JPMorgan lowered its U.S. GDP forecast and Goldman Sachs trimmed its outlook for the Chinese economy. Yet, JPMorgan said recently that U.S. consumers are still on a strong footing overall.
Despite the possibility of U.S. consumer spending remaining strong beyond the summer, Wall Street is focused on longer-term setbacks. But that doesn’t mean investors should just stay on the sidelines because market timing is far too difficult and staying in cash comes at a cost, with over 8% inflation.
Therefore, those with long-term outlooks might consider buying strong stocks of companies with proven track records of returning value to shareholders that also operate stable, long-term businesses that aren’t going out of style.
AbbVie ABBV is a pharmaceutical power that diversified through its huge Allergan acquisition in 2020. AbbVie topped our Q1 earnings estimates and the stock has managed to climb 13% in 2022 to outpace its industry and the market’s big fall. Plus, Wall Street is high on ABBV and its 3.8% dividend yield is rather enticing.
Next up is rail freight titan Union Pacific Corporation UNP. No matter what the future holds, rail is poised to maintain its standing as a key cog in the U.S. and global transportation sector. And Union Pacific is focused on increasing efficiency and in order to attract more customers, boost profits, and return more value to shareholders.
NextEra Energy NEE is the last stock on the list. NextEra Energy is one of the country’s biggest electric utilities and a leader in renewable energy. NEE shares have crushed the market and its industry in the past five years and it operates within key growth areas of electricity generation. On top of that, NEE executives said they plan to raise dividends by 10% per year through at least 2024.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV is a pharmaceutical power that diversified through its huge Allergan acquisition in 2020. AbbVie topped our Q1 earnings estimates and the stock has managed to climb 13% in 2022 to outpace its industry and the market’s big fall. Plus, Wall Street is high on ABBV and its 3.8% dividend yield is rather enticing. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV is a pharmaceutical power that diversified through its huge Allergan acquisition in 2020. AbbVie topped our Q1 earnings estimates and the stock has managed to climb 13% in 2022 to outpace its industry and the market’s big fall. | AbbVie ABBV is a pharmaceutical power that diversified through its huge Allergan acquisition in 2020. AbbVie topped our Q1 earnings estimates and the stock has managed to climb 13% in 2022 to outpace its industry and the market’s big fall. Plus, Wall Street is high on ABBV and its 3.8% dividend yield is rather enticing. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV is a pharmaceutical power that diversified through its huge Allergan acquisition in 2020. AbbVie topped our Q1 earnings estimates and the stock has managed to climb 13% in 2022 to outpace its industry and the market’s big fall. |
23371.0 | 2022-05-24 00:00:00 UTC | Why High Dividend ETFs are Beating the Market | ABBV | https://www.nasdaq.com/articles/why-high-dividend-etfs-are-beating-the-market | nan | nan | Dividend paying stocks are always popular with investors since about a third of S&P 500’s total returns since 1960 can be attributed to dividends. Over the past three decades, S&P 500 returns including dividends exceeded the index’s price returns by more than double, per BlackRock.
In the current market environment of rising rates and inflation, dividend stocks look better positioned than bonds since they may grow their payouts and realize capital appreciation and can provide some inflation protection over the long term.
Dividend payers also weather market downturns better than others. As a result, income focused investors have started relying more on dividend paying stocks.
There are two popular approaches to dividend investing—dividend growth stocks and high dividend stocks. I like dividend growth stocks for long-term investing since these are usually high-quality companies with solid balance sheets and stable cash flows, like Apple (AAPL) and Microsoft (MSFT).
This year, however, high dividend payers have done better than dividend growers. They are typically in defensive sectors like utilities, real estate and consumer staples. Many energy companies have also boosted their payouts in recent years, and they are among the top holdings in high dividend funds.
The iShares Core High Dividend ETF (HDV) holds high dividend paying equities screened for financial health. The ETF charges just 0.8% in expense ratio and has about $10.7 billion in assets. Exxon Mobil (XOM) and AbbVie (ABBV) are its top holdings.
The First Trust Morningstar Dividend Leaders Index Fund (FDL) screens stocks for dividend consistency and sustainability. The fund has $2.6 billion in assets and charges 45 basis points. AT&T (T) and AbbVie are its top holdings.
The $1.1 billion WisdomTree U.S. High Dividend Fund (DHS) holds high-dividend-yielding companies. Exxon Mobil and Chevron (CVX) are its top holdings.
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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. | Exxon Mobil (XOM) and AbbVie (ABBV) are its top holdings. AT&T (T) and AbbVie are its top holdings. AbbVie Inc. (ABBV): Free Stock Analysis Report | Exxon Mobil (XOM) and AbbVie (ABBV) are its top holdings. AT&T (T) and AbbVie are its top holdings. AbbVie Inc. (ABBV): Free Stock Analysis Report | Exxon Mobil (XOM) and AbbVie (ABBV) are its top holdings. AT&T (T) and AbbVie are its top holdings. AbbVie Inc. (ABBV): Free Stock Analysis Report | Exxon Mobil (XOM) and AbbVie (ABBV) are its top holdings. AT&T (T) and AbbVie are its top holdings. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23372.0 | 2022-05-24 00:00:00 UTC | These 2 Numbers Could Spell Trouble for AbbVie Stock | ABBV | https://www.nasdaq.com/articles/these-2-numbers-could-spell-trouble-for-abbvie-stock | nan | nan | AbbVie (NYSE: ABBV) investors might have a reason to start sweating. After a somewhat weak first quarter, the biopharma company's near future looks like it'll be one with a bit less revenue than expected.
That's something that would always be a problem, but in this case, the issue is a bit more pressing than usual. Before its Q1 earnings report released in late April, management's forecasts already called for a drop in sales. Now, its plans to reverse the negative revenue trend look like they'll need to start working sooner than anticipated.
Let's take a look at two numbers which show why that's the case.
Image source: Getty Images.
1. Humira sales are receding quickly
The first number that shareholders need to pay attention to is sales of rheumatoid arthritis drug Humira, which totaled more than $4.7 billion in Q1, a fall of 2.7% on a reported basis. A drop of some kind is entirely expected as the drug's exclusivity protections are lapsing in several global markets, thereby opening the door for its market share to get eaten by biosimilar drugs. And next year, the exclusivity protections in the U.S. will also expire, leading to a swarm of copycat drugs hitting the market.
In fact, management even has a grand strategy to deal with the problem: It plans to replace income from Humira with revenue from Skyrizi and Rinvoq, two of its other immunology drugs. Though their indications don't overlap with each other or Humira completely, Skyrizi and Rinvoq are indicated for some of the same conditions as Humira, such as arthritis and ankylosing spondylitis. That means that the pair will, in theory, be able to contest the markets that Humira is getting boxed out of by biosimilars, thereby maintaining AbbVie's base of revenue despite the fall of its biggest single-earning product. For reference, Rinvoq made $465 million in the quarter while Skyrizi was responsible for $940 million in sales.
The trouble is that it'll take a few years for the replacement income to ramp up to reach anywhere near Humira at its peak; the drug brought in $20.7 billion in 2021. Therefore, Humira's faster-than-anticipated market share erosion in Q1 is a bit of a problem for the medium term. For now, the damage is largely confined to the drug's share of international markets, where it made $743 million, or 22.6% less net revenue than in the first quarter of 2021. And regardless of the contraction, overall revenue from its immunology portfolio is up by 6.9%, which includes Humira, Skyrizi, and Rinvoq.
Nonetheless, if revenue from Humira sales in the U.S. start to ramp down as quickly as it did internationally, it could cause some more turbulence for shareholders. The same is true for a slower-than-anticipated ramping up of income from the pair of replacements.
2. Imbruvica is underperforming
The other number that could be problematic for AbbVie is $1.1 billion, which is the revenue generated by sales of Imbruvica, its therapy for lymphoma. That sum was 7.4% lower on a reported basis than the drug's sales in the prior year, which is quite troublesome. The culprit here is likely good old-fashioned competition rather than a loss of exclusivity to sell the drug.
Imbruvica treats a handful of different lymphomas, but it does so with significant, burdensome side effects that can be dangerous for patients. Newer medicines like AstraZeneca's Calquence and BeiGene's Brukinsa use the same biological mechanism as Imbruvica, but they're typically easier to tolerate. That makes it less likely for oncologists to prescribe Imbruvica, which in turn depresses sales.
Though Imbruvica makes up only a small portion of AbbVie's $56.7 billion in trailing 12-month revenue, it's unlikely to regain any market share against its competitors, and it's unclear whether its share will continue to erode at a relatively rapid pace. If it does, it'll make maintaining the company's top line in the face of losing Humira all the more difficult, and shareholders might be at risk.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That means that the pair will, in theory, be able to contest the markets that Humira is getting boxed out of by biosimilars, thereby maintaining AbbVie's base of revenue despite the fall of its biggest single-earning product. AbbVie (NYSE: ABBV) investors might have a reason to start sweating. Imbruvica is underperforming The other number that could be problematic for AbbVie is $1.1 billion, which is the revenue generated by sales of Imbruvica, its therapy for lymphoma. | AbbVie (NYSE: ABBV) investors might have a reason to start sweating. That means that the pair will, in theory, be able to contest the markets that Humira is getting boxed out of by biosimilars, thereby maintaining AbbVie's base of revenue despite the fall of its biggest single-earning product. Imbruvica is underperforming The other number that could be problematic for AbbVie is $1.1 billion, which is the revenue generated by sales of Imbruvica, its therapy for lymphoma. | Imbruvica is underperforming The other number that could be problematic for AbbVie is $1.1 billion, which is the revenue generated by sales of Imbruvica, its therapy for lymphoma. AbbVie (NYSE: ABBV) investors might have a reason to start sweating. That means that the pair will, in theory, be able to contest the markets that Humira is getting boxed out of by biosimilars, thereby maintaining AbbVie's base of revenue despite the fall of its biggest single-earning product. | Imbruvica is underperforming The other number that could be problematic for AbbVie is $1.1 billion, which is the revenue generated by sales of Imbruvica, its therapy for lymphoma. AbbVie (NYSE: ABBV) investors might have a reason to start sweating. That means that the pair will, in theory, be able to contest the markets that Humira is getting boxed out of by biosimilars, thereby maintaining AbbVie's base of revenue despite the fall of its biggest single-earning product. |
23373.0 | 2022-05-23 00:00:00 UTC | AbbVie (ABBV) Files NDA for Parkinson's Disease Candidate | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-files-nda-for-parkinsons-disease-candidate | nan | nan | AbbVie Inc. ABBV submitted a new drug application (“NDA”) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD) to the FDA.
The regulatory filing was based on data from a phase III head-to-head study, which showed that treatment with ABBV-951 led to statistically significant improvement in "On" time without troublesome dyskinesia compared with oral immediate-release carbidopa/levodopa (CD/LD).
Per the press release, "On" time is cited as the period when symptoms are well controlled without dyskinesia or involuntary movements. The goal of the PD patients and physicians is to extend the amount of "On" time.
ABBV-951 has been designed to offer the first continuous subcutaneous delivery of CD/LD prodrugs for PD patients.
Shares of AbbVie have rallied 11.5% so far this year compared with the industry’s rise of 4.4%.
Image Source: Zacks Investment Research
In a separate press release, AbbVie announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (“CHMP”) has given a positive opinion. The committee recommended approval of ABBV’s JAK inhibitor drug Rinvoq (upadacitinib) for the treatment of adult patients with moderately to severely active ulcerative colitis (“UC”).
Rinvoq is already approved in the EU for four indications — rheumatoid arthritis, active psoriatic arthritis (PsA), ankylosing spondylitis and atopic dermatitis.
A potential approval for the UC indication will be the fifth therapeutic indication for upadacitinib in the EU. A decision from the European Commission is expected in the third quarter of 2022.
Rinvoq and another blockbuster drug, Skyrizi, remain critical for ABBV to gradually lower its dependence on blockbuster medicine Humira. The sales of Humira are declining due to biosimilars eroding its yearly international sales.
With many new indications coming in the next couple of years, AbbVie expects combined sales of Rinvoq and Skyrizi to be more than $15 billion by 2025.
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Leap Therapeutics, Inc. LPTX, Aeglea BioTherapeutics, Inc. AGLE and EyePoint Pharmaceuticals, Inc. EYPT, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Leap Therapeutics’ loss per share has narrowed 11.1% for 2022 and 5.9% for 2023 in the past 60 days.
Earnings of Leap Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion. LPTX delivered an earnings surprise of 1.92%, on average.
AegleaBio Therapeutics’ loss per share estimates narrowed 23.2% for 2022 and 30.6% for 2023 in the past 60 days.
Earnings of AegleaBio Therapeutics have surpassed estimates in two of the trailing four quarters and missed the same on the other two occasions. AGLE delivered an earnings surprise of 9.47%, on average.
EyePoint Pharmaceuticals’ loss per share estimates narrowed 8.7% for 2022 and 12.5% for 2023 in the past 60 days.
Earnings of EyePoint Pharmaceuticals have surpassed estimates in one of the trailing four quarters and missed the same on the other three occasions. EYPT reported a negative earnings surprise of 5.80%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The regulatory filing was based on data from a phase III head-to-head study, which showed that treatment with ABBV-951 led to statistically significant improvement in "On" time without troublesome dyskinesia compared with oral immediate-release carbidopa/levodopa (CD/LD). The committee recommended approval of ABBV’s JAK inhibitor drug Rinvoq (upadacitinib) for the treatment of adult patients with moderately to severely active ulcerative colitis (“UC”). AbbVie Inc. ABBV submitted a new drug application (“NDA”) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD) to the FDA. | AbbVie Inc. ABBV submitted a new drug application (“NDA”) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD) to the FDA. The regulatory filing was based on data from a phase III head-to-head study, which showed that treatment with ABBV-951 led to statistically significant improvement in "On" time without troublesome dyskinesia compared with oral immediate-release carbidopa/levodopa (CD/LD). ABBV-951 has been designed to offer the first continuous subcutaneous delivery of CD/LD prodrugs for PD patients. | Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc. ABBV submitted a new drug application (“NDA”) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD) to the FDA. The regulatory filing was based on data from a phase III head-to-head study, which showed that treatment with ABBV-951 led to statistically significant improvement in "On" time without troublesome dyskinesia compared with oral immediate-release carbidopa/levodopa (CD/LD). | With many new indications coming in the next couple of years, AbbVie expects combined sales of Rinvoq and Skyrizi to be more than $15 billion by 2025. AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie Inc. ABBV submitted a new drug application (“NDA”) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD) to the FDA. |
23374.0 | 2022-05-23 00:00:00 UTC | AbbVie:CHMP Recommends European Commission Approval Of Upadacitinib For Ulcerative Colitis Treatment | ABBV | https://www.nasdaq.com/articles/abbvie%3Achmp-recommends-european-commission-approval-of-upadacitinib-for-ulcerative-colitis | nan | nan | (RTTNews) - The European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP adopted a positive opinion recommending the approval of upadacitinib (RINVOQ, 45 mg [induction dose] and 15 mg and 30 mg [maintenance dose]) 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 Monday.
If approved by the European Commission, this would be upadacitinib's fifth therapeutic indication in the European Union. The European Commission decision is anticipated in the third quarter of 2022.
Ulcerative colitis is the chronic inflammation of the large intestine, usually beginning in the rectum and lower colon, but may also spread continuously to involve the entire colon, which could lead to a significant burden and disability for patients.
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 Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP adopted a positive opinion recommending the approval of upadacitinib (RINVOQ, 45 mg [induction dose] and 15 mg and 30 mg [maintenance dose]) 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 Monday. The European Commission decision is anticipated in the third quarter of 2022. Ulcerative colitis is the chronic inflammation of the large intestine, usually beginning in the rectum and lower colon, but may also spread continuously to involve the entire colon, which could lead to a significant burden and disability for patients. | (RTTNews) - The European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP adopted a positive opinion recommending the approval of upadacitinib (RINVOQ, 45 mg [induction dose] and 15 mg and 30 mg [maintenance dose]) 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 Monday. The European Commission decision is anticipated in the third quarter of 2022. Ulcerative colitis is the chronic inflammation of the large intestine, usually beginning in the rectum and lower colon, but may also spread continuously to involve the entire colon, which could lead to a significant burden and disability for patients. | (RTTNews) - The European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP adopted a positive opinion recommending the approval of upadacitinib (RINVOQ, 45 mg [induction dose] and 15 mg and 30 mg [maintenance dose]) 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 Monday. If approved by the European Commission, this would be upadacitinib's fifth therapeutic indication in the European Union. Ulcerative colitis is the chronic inflammation of the large intestine, usually beginning in the rectum and lower colon, but may also spread continuously to involve the entire colon, which could lead to a significant burden and disability for patients. | (RTTNews) - The European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP adopted a positive opinion recommending the approval of upadacitinib (RINVOQ, 45 mg [induction dose] and 15 mg and 30 mg [maintenance dose]) 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 Monday. If approved by the European Commission, this would be upadacitinib's fifth therapeutic indication in the European Union. The European Commission decision is anticipated in the third quarter of 2022. |
23375.0 | 2022-05-21 00:00:00 UTC | 7 Quality Dividend Stocks to Buy on the Dip | ABBV | https://www.nasdaq.com/articles/7-quality-dividend-stocks-to-buy-on-the-dip | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the current market evironment, investors could find solid ground with this dividend stocks to buy.
Merck (MRK): Robust results across its core portfolio, with its oncology portfolio expected to fire on all cylinders.
Chevron (CVX): Cash flow generating machine, which will benefit immensely from rising oil prices.
Clorox (CLX): Attractive income stock, which has seen dividends grow every year since 1977.
Procter and Gamble (PG): Consistent performer that has been on a roll of late.
AbbVie (ABBV): Reliance on Humira is decreasing, with several of its drugs becoming more popular.
Exxon Mobil (XOM): Monstrous earnings growth with likely shareholder rewards worth $20 billion.
Visa (V): Incredible profitability numbers, which are likely to grow due to an uptick in travel demand.
Source: iQoncept/shutterstock.com
Between the rampant inflation, the Russian invasion of Ukraine and rising interest rates, the stock market remains volatile among the uncertainty. In turn, investors will look for reliability in such an environment, throwing the spotlight on the dividend stocks to buy.
Overall, investing in dividend stocks offers a hedge against rising inflation rates, with investors looking for fixed-income opportunities. Firms often use their dividend policies to signal to investors to take note of their strong prospects. Moreover, they play an integral role in producing total equity returns. Since 1926, capital appreciations have contributed roughly 68% of total returns for the S&P 500, while dividends have accounted for the remaining 32%.
7 Dividend Stocks to Boost Your Retirement Savings
So, with all of this in mind, let’s dive in and take a closer look at seven top dividend stocks to buy.
Ticker Company Price
MRK Merck $
CVX Chevron $
CLX Clorox $
PG Procter & Gamble $
ABBV AbbVie $
XOM Exxon Mobil $
V Visa $
Dividend Stocks to Buy: Merck (MRK)
Source: Atmosphere1 / Shutterstock.com
Shares of healthcare giant Merck (NYSE:MRK) have moved sluggishly as investors have rotated out of growth stocks. Nevertheless, Merck continues to perform incredibly well from a fundamentals perspective, growing sales and earnings at a rapid clip. Moreover, it boasts a highly attractive dividend profile, yielding more than 3% with 12 years of growth in payouts. Also, the stock trades at under four times forward sales estimates, slightly below its 5-year average.
The company recently reported its quarterly earnings, which pleased investors. Sales came in at $15.9 billion, of which 20% were attributable to a Covid-19 pill molnupiravir. Excluding molnupiravir, sales increased by 19% in comparison to the first quarter of last year.
It experienced immense strength throughout its portfolio including its top-selling drugs in Keytruda and Gardasil. Net income for the quarter rose 50% to $4.3 billion. As it looks to 2025 and beyond, it expects continued strong growth. Its oncology portfolio is likely to benefit from multiple approvals and likely launches of several additional indications.
Chevron (CVX)
Source: Jeff Whyte / Shutterstock.com
Chevron (NYSE:CVX) has been a consistent performer, with double-digit percentage expansion in its revenue and EBITDA growth figures. In turn, recent results have shown that the company isn’t slowing down anytime soon, and will benefit enormously from tighter energy supplies.
Chevron has been a cash-flow generating machine, growing its free cash flow (FCF) per share by a whopping 106% year-over-year (YOY) last quarter to $7 billion. Thanks to its massive cash flows, it has generously rewarded its shareholders through dividends and share buybacks, while lowering its debt ratio to below 11%.
7 REITs to Buy for the Second Half of 2022
The current energy crisis seems to be overriding the climate crisis for investors. Tighter energy supplies and larger profits may trump climate change concerns for investors, which is apparent in the latest shareholder meetings of the top oil companies. In turn, this could benefit CVX stock.
Dividend Stocks to Buy: Clorox (CLX)
Source: TY Lim / Shutterstock.com
Clorox (NYSE:CLX) stock is coming back down to Earth after a momentous run during the pandemic. Households across the world stockpiled staples to ride out the health crisis, but those tailwinds are fading fast. Hence, CLX stock presents itself as more of an income-oriented investment, with a dividend profile that’s head and shoulders above its peers.
Moreover, its FCF balance is rock solid and continues to grow at a breathtaking pace each year. Therefore, despite the slowdown in revenue growth, its dividend remains relatively secure. Clorox paid dividends every year since 1977, increasing payouts for 53 consecutive years. In addition to this, its brand value is such that every nine out of ten homes in the U.S. use one of its products.
So, with that in mind, consider CLX stock among the top dividend stocks to buy.
Procter and Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
Procter and Gamble (NYSE:PG) is one of the leading consumer-staple giants globally. Its operating performance has been consistent, which has helped build its humongous cash balance of over $8.5 billion. Moreover, its commitment to rewarding its shareholders has been incredible, with a dividend yield of roughly 2.6% and 66 years of growing payouts.
The company has been innovating at a robust pace over the past several tears. Its massive global supply chain allows for effective optimization of costs, and pricing leverage. Last year, PG achieved healthy double-digit organic growth across most of its product lines including Home and Oral Care.
7 Undervalued Dividend Stocks to Buy Now
In its third quarter, it set a modern-day record, with a 10% increase in organic sales. Its results are a testament to the company’s remarkable pricing power, which has effectively shielded it from inflationary pressures. Also, it raised its full-year growth outlook and it expects to maintain its 3% to 6% earnings per share guidance.
Dividend Stocks to Buy: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is often described as a one-trick pony of a pharma company. It sells its hugely popular arthritis drug known as Humira, which was the top-selling drug before the Covid 19 vaccine knocked it off its perch in 2021. Nonetheless, its revenues came in at over $20 billion and it finished second on the list.
Humira accounted for over 60% of company revenues for the past several years, which has invited a lot of criticism from investors about its lack of revenue diversity. However, in its recent quarter, we saw how its Immunology division, which includes Humira sales, contributed just 45.3% of its total sales. Humira sales are still impressive but it seems that other drugs are now picking up the pace for the company. Moreover, a number of biosimilars will be hitting the market next year, as Humira loses out on its patent protection in the U.S.
More importantly, ABBV’s dividend scorecard is second to none. The dividend yield is at a stellar 3.70% with a consistent nine years of dividend payouts. Additionally, its payout ratio is at a tremendous 42%.
Exxon Mobil (XOM)
Source: Michael Gordon / Shutterstock.com
Exxon Mobil (NYSE:XOM) stock has a spring in its step amidst a highly conducive economic outlook. The Russia/Ukraine war, and the resultant sanctions on Russian companies have led to a surge in commodity prices. Subsequently, Exxon has seen its FCF soar in the past few months. If the current market situation prevails for long, the firm could potentially return over $20 billion in FCF to shareholders this year.
7 Consumer Stocks to Buy and Hold for Years
The company management plans to further solidify its liquidity positioning. The goal is to have its cash balance in the $20 billion to $30 billion range. In its first quarter, the oil giant generated $7.7 billion in earnings, showing a growth of 203% from the prior-year period. The firm is leaving the Russian market, booking a $3.4 billion after-tax charge in relation to the exit. In spite of its exit, its earnings are still outstanding and point to an extraordinary showing this year.
Dividend Stocks to Buy: Visa (V)
Source: Kikinunchi / Shutterstock.com
Fintech giant Visa (NYSE:V) is coming off a blow-out year in 2021, where revenues and earnings grew by double-digit percentages. It is shown that it remains a growth company, posting above-average growth rates during the pandemic years. With the uptick in travel demand, its business has been booming, generating $7.2 billion in sales in its second quarter. In addition to the 25% expansion in revenue base, its earnings per share are up 30% in comparison to previous years. Its sales account for a small portion of payment volumes, which were at a colossal 45 billion transactions in its first quarter.
With a profitability profile firmly in the green and a growing cash flow base, its dividend is well protected. Though it yields just 0.75%, its dividend payouts have been increasing at a healthy pace for the past 13 years.
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 Quality Dividend Stocks to Buy on the Dip 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): Reliance on Humira is decreasing, with several of its drugs becoming more popular. Ticker Company Price MRK Merck $ CVX Chevron $ CLX Clorox $ PG Procter & Gamble $ ABBV AbbVie $ XOM Exxon Mobil $ V Visa $ Dividend Stocks to Buy: Merck (MRK) Source: Atmosphere1 / Shutterstock.com Shares of healthcare giant Merck (NYSE:MRK) have moved sluggishly as investors have rotated out of growth stocks. Dividend Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is often described as a one-trick pony of a pharma company. | Ticker Company Price MRK Merck $ CVX Chevron $ CLX Clorox $ PG Procter & Gamble $ ABBV AbbVie $ XOM Exxon Mobil $ V Visa $ Dividend Stocks to Buy: Merck (MRK) Source: Atmosphere1 / Shutterstock.com Shares of healthcare giant Merck (NYSE:MRK) have moved sluggishly as investors have rotated out of growth stocks. AbbVie (ABBV): Reliance on Humira is decreasing, with several of its drugs becoming more popular. Dividend Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is often described as a one-trick pony of a pharma company. | Ticker Company Price MRK Merck $ CVX Chevron $ CLX Clorox $ PG Procter & Gamble $ ABBV AbbVie $ XOM Exxon Mobil $ V Visa $ Dividend Stocks to Buy: Merck (MRK) Source: Atmosphere1 / Shutterstock.com Shares of healthcare giant Merck (NYSE:MRK) have moved sluggishly as investors have rotated out of growth stocks. AbbVie (ABBV): Reliance on Humira is decreasing, with several of its drugs becoming more popular. Dividend Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is often described as a one-trick pony of a pharma company. | Ticker Company Price MRK Merck $ CVX Chevron $ CLX Clorox $ PG Procter & Gamble $ ABBV AbbVie $ XOM Exxon Mobil $ V Visa $ Dividend Stocks to Buy: Merck (MRK) Source: Atmosphere1 / Shutterstock.com Shares of healthcare giant Merck (NYSE:MRK) have moved sluggishly as investors have rotated out of growth stocks. AbbVie (ABBV): Reliance on Humira is decreasing, with several of its drugs becoming more popular. Dividend Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is often described as a one-trick pony of a pharma company. |
23376.0 | 2022-05-21 00:00:00 UTC | 7 Retirement Stocks to Buy for Any Market Conditions | ABBV | https://www.nasdaq.com/articles/7-retirement-stocks-to-buy-for-any-market-conditions | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although the market turmoil may have investors scrambling for cover, these retirement stocks can likely withstand the heat.
Brookfield Infrastructure (BIPC): One of the largest owners and operators of critical global infrastructure networks, Brookfield presents unbeatable relevance.
Duke Energy (DUK): A classic name among retirement stocks, Duke Energy’s pertinent business and compelling coverage map make it a worthwhile idea.
American Electric Power Company (AEP): A massive electric utility firm covering 11 states, AEP commands permanent relevance among retirement stocks to buy.
Merck (MRK): A powerhouse in the big pharmaceutical industry, Merck should benefit from its enviable product portfolio.
AbbVie (ABBV): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks.
Exxon Mobil (XOM): While experts are screaming that electric vehicles are the future, crude oil likely has a long, lucrative road ahead.
Philip Morris (PM): If you don’t mind digging into vice plays, PM could provide a relevant lift regarding retirement stocks to buy.
Source: kenary820 / Shutterstock
Just as society thought it was about to turn a corner with the vexing coronavirus pandemic, Russia’s unprovoked attack on Ukraine unsettled global markets, sending many investors seeking shelter from the storm. Despite the volatility, the equities sector still represents one of the best places to grow your money and as such, retirement stocks to buy command relevance.
Of course, you can’t just pick out any idea and expect it to perform well. Unfortunately, this year has witnessed multiple headwinds. Setting aside escalating geopolitical tensions in Europe, the choices that the Federal Reserve made to keep the U.S. economy afloat following the Covid-19 breach have now come to roost in the form of rising inflation. Given this tricky backdrop, investors must be selective regarding retirement stocks.
To better navigate the treacherous waters, your long-term portfolio should consist of companies that don’t just address immediate needs, but will be around well into the future. Granted, qualified ideas are difficult to find, but it’s not impossible.
7 Dividend Stocks to Boost Your Retirement Savings
Here are some intriguing names to consider for retirement stocks to buy:
BIPC Brookfield Infrastructure Corporation $71.49
DUK Duke Energy Corporation $109.42
AEP American Electric Power Company, Inc. $99.54
MRK Merck & Co., Inc. $93.48
ABBV AbbVie Inc. $152.46
XOM Exxon Mobil Corporation $93.04
PM Philip Morris International Inc. $101.12
Retirement Stocks to Buy: Brookfield Infrastructure (BIPC)
Source: T. Schneider / Shutterstock
An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. Specifically, the company invests in transmission and telecommunication lines, toll roads, ports and pipelines.
In other words, if it goes through the global supply chain, there’s a chance that Brookfield is involved. Thus, if you’re looking for a relatively stable and proven investment for retirement stocks to buy, BIPC should be high on your list. Though troubles weigh on global business networks currently, they will eventually fade. But before then, you’ll want exposure to BIPC.
Brookfield is also attractive for investors seeking retirement stocks in that its dividend yield is a solid 3.03%. It’s also recovering in terms of revenue performance since the Covid-19 pandemic, although management will need to address the net losses. Ultimately, though, patient investors should find lots to like about BIPC stock.
Duke Energy (DUK)
Source: Jonathan Weiss / Shutterstock.com
One of the classic ideas among retirement stocks to buy, Duke Energy (NYSE:DUK) is a go-to name for those with a long-term perspective. An electric power and natural gas holding company, Duke is essentially permanently relevant. As I like to say, people expect the lights to turn on when they flip the switch. Bad stuff happens when it doesn’t.
Aside from the obvious and cynical, DUK enjoys a fortuitous advantage in its coverage map. Levering a strong presence in the Southeast (Florida, South Carolina) and Midwest (Indiana, Kentucky, Ohio) regions, Duke Energy might see increased demand from migration patterns. As coastal metropolitan areas become overly crowded and expensive, many astute millennials are moving to states with lower costs of living, coinciding with Duke’s coverage map.
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Finally, DUK makes for a solid case for retirement stocks to buy because of its dividend yield, which currently stands at 3.62%. With a solid track record of profitability, the company should be able to take care of its shareholders for years to come.
Retirement Stocks to Buy: American Electric Power Company (AEP)
Source: Casimiro PT / Shutterstock.com
One of the biggest electric utility firms in the country, American Electric Power Company (NASDAQ:AEP) provides a solid mix of capital return potential and passive income. On a year-to-date basis through the May 16 session, AEP has gained over 12%. At the same time, its dividend yield stands at a solid 3.15%, making it one of the more intriguing retirement stocks to buy.
As with Duke Energy above, American Electric Power enjoys a compelling coverage map. This one in particular spans 11 states — including millennial destination spots like Ohio and Texas — and serves 5.5 million customers. Therefore, because of migration patterns largely fueled by economic necessity, it’s quite possible that AEP could enjoy increased demand.
Financially, the company is rock-solid. After suffering a noticeable sales drought in 2020, annual revenue is now exceeding pre-pandemic norms. In addition, it consistently drives robust net income, making AEP among the most dependable retirement stocks to buy.
Merck & Co. (MRK)
Source: Shutterstock
One of the ironies of the Covid-19 pandemic was that it didn’t holistically benefit the broader healthcare industry. Indeed, because of initial fears associated with the mysterious SARS-CoV-2 virus, many chose to avoid hospital and clinical settings unless absolutely necessary. Thus, the pandemic wasn’t exactly a boon for pharmaceutical giant Merck & Co. (NYSE:MRK).
But now that both the virus itself and the fear of Covid-19 are fading, Merck might make for an intriguing idea among retirement stocks to buy. Specifically, investors should key in on the company’s enviable product pipeline. Thanks to societal normalization, people are much likelier to visit health facilities for non-Covid-related issues.
Of course, Merck has a powerhouse oncology drug in Keytruda, which should bolster MRK stock in the long run. According to Mordor Intelligence, experts project the cancer immunotherapy market to command nearly a double-digit compound annual growth rate from now until 2027.
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And while you’re waiting for this narrative to fully materialize, you can take advantage of MRK’s 3% dividend yield.
Retirement Stocks to Buy: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. Under the Allergan brand were several intriguing products, the most attractive (in my opinion) being Botox.
Say what you want about the neurotoxic protein, it’s a popular treatment because humans want to keep their youthful appearance as long as possible. More significantly, the gradual normalization of society could positively affect Botox. Basically, as more people go out and about, they’ll want to look their best. That’s doubly so if workers are recalled to the office.
However, another demographic aspect might help Botox sales — and thus AbbVie — for decades to come and that’s aging millennials (and eventually Generation Z). Given that western societies have generally become more concerned with physical appearance, people from these demographics would be even more incentivized to consider Botox.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
Listing Exxon Mobil (NYSE:XOM) as one of the retirement stocks to buy might draw scorn, ridicule, or both. For one thing, society at large has shifted toward an economic ecosystem that favors environmental, social and governance (ESG) sentiments. Big oil doesn’t really factor into such thought processes. Moreover, arguably most analysts proclaim that electric vehicles (EVs) are the future. That’s going to put XOM in a bind.
Well, maybe not. Sure, the war in Ukraine has spurred colossal interest in alternative energy solutions, which EVs play a significant role in. However, the harsh reality is that integration of EVs will take time. For example, the infrastructure to support the electrification of transportation isn’t fully developed. Additionally, EVs are currently extremely pricey, only accessible to affluent households.
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Sorry to burst any bubbles, but the road to true mainstreaming of EVs could take many, many years. In the meantime, hydrocarbon-based infrastructure is ready to go, making XOM a surprisingly intriguing idea among retirement stocks to buy.
Retirement Stocks to Buy: Philip Morris (PM)
Source: Vytautas Kielaitis / Shutterstock
Some folks have certain principles or values they want to uphold with their investment portfolios. If that’s you, I can totally respect that. Therefore, you might not want to hear about tobacco giant Philip Morris (NYSE:PM). At the same time, I can’t assume that everyone has the same thought process. For those that don’t mind a little vice in their retirement stocks, PM might fit the bill.
For starters, the vaping community has recently gravitated toward smaller devices due to their convenient profile and ease of use. Such a subculture shift benefits Philip Morris perfectly, which specializes in both heated tobacco products and e-cigarettes that focus on the experience of smoking rather than the wizardry of digital devices.
Second, it’s not unreasonable to believe that as stress levels rise globally due to recession fears — and perhaps an actual recession materializing — many people may turn to coping mechanisms such as cigarettes, both the analog and electronic varieties. Of course, it’s a cynical thesis. But if that doesn’t bother you, PM might be an interesting name among retirement stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Retirement Stocks to Buy for Any Market Conditions 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): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks. 7 Dividend Stocks to Boost Your Retirement Savings Here are some intriguing names to consider for retirement stocks to buy: BIPC Brookfield Infrastructure Corporation $71.49 DUK Duke Energy Corporation $109.42 AEP American Electric Power Company, Inc. $99.54 MRK Merck & Co., Inc. $93.48 ABBV AbbVie Inc. $152.46 XOM Exxon Mobil Corporation $93.04 PM Philip Morris International Inc. $101.12 Retirement Stocks to Buy: Brookfield Infrastructure (BIPC) Source: T. Schneider / Shutterstock An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. Retirement Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. | 7 Dividend Stocks to Boost Your Retirement Savings Here are some intriguing names to consider for retirement stocks to buy: BIPC Brookfield Infrastructure Corporation $71.49 DUK Duke Energy Corporation $109.42 AEP American Electric Power Company, Inc. $99.54 MRK Merck & Co., Inc. $93.48 ABBV AbbVie Inc. $152.46 XOM Exxon Mobil Corporation $93.04 PM Philip Morris International Inc. $101.12 Retirement Stocks to Buy: Brookfield Infrastructure (BIPC) Source: T. Schneider / Shutterstock An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. AbbVie (ABBV): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks. Retirement Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. | 7 Dividend Stocks to Boost Your Retirement Savings Here are some intriguing names to consider for retirement stocks to buy: BIPC Brookfield Infrastructure Corporation $71.49 DUK Duke Energy Corporation $109.42 AEP American Electric Power Company, Inc. $99.54 MRK Merck & Co., Inc. $93.48 ABBV AbbVie Inc. $152.46 XOM Exxon Mobil Corporation $93.04 PM Philip Morris International Inc. $101.12 Retirement Stocks to Buy: Brookfield Infrastructure (BIPC) Source: T. Schneider / Shutterstock An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. Retirement Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. AbbVie (ABBV): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks. | 7 Dividend Stocks to Boost Your Retirement Savings Here are some intriguing names to consider for retirement stocks to buy: BIPC Brookfield Infrastructure Corporation $71.49 DUK Duke Energy Corporation $109.42 AEP American Electric Power Company, Inc. $99.54 MRK Merck & Co., Inc. $93.48 ABBV AbbVie Inc. $152.46 XOM Exxon Mobil Corporation $93.04 PM Philip Morris International Inc. $101.12 Retirement Stocks to Buy: Brookfield Infrastructure (BIPC) Source: T. Schneider / Shutterstock An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. AbbVie (ABBV): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks. Retirement Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. |
23377.0 | 2022-05-20 00:00:00 UTC | Investors Heavily Search AbbVie Inc. (ABBV): Here is What You Need to Know | ABBV | https://www.nasdaq.com/articles/investors-heavily-search-abbvie-inc.-abbv%3A-here-is-what-you-need-to-know | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned -4.3% over the past month versus the Zacks S&P 500 composite's -12.5% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.8% 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 $3.44 per share, indicating a change of +10.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.
The consensus earnings estimate of $14.03 for the current fiscal year indicates a year-over-year change of +10.5%. This estimate has changed -0.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.81 indicates a change of -15.8% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +103.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $14.65 billion for the current quarter points to a year-over-year change of +5%. The $59.67 billion and $55.75 billion estimates for the current and next fiscal years indicate changes of +6.2% and -6.6%, 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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.8% 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) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.8% over this period. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.8% over this period. | For the next fiscal year, the consensus earnings estimate of $11.81 indicates a change of -15.8% from what AbbVie is expected to report a year ago. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. |
23378.0 | 2022-05-20 00:00:00 UTC | Pharma Stock Roundup: FDA Nod to PFE COVID Jab for Age 5-11 & LLY's Tirzepatide | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-fda-nod-to-pfe-covid-jab-for-age-5-11-llys-tirzepatide | nan | nan | This week, the FDA granted emergency authorization to booster shots of Pfizer PFE/BioNTech’s COVID-19 vaccine for use in children 5 to 11 years of age and also approved Lilly’s LLY novel diabetes treatment, Mounjaro (tirzepatide) injection. AbbVie ABBV and AstraZeneca AZN announced new licensing deals with small private biotechs.
Recap of the Week’s Most Important Stories
FDA Approves Lilly’s Novel Diabetes Treatment: The FDA approved Lilly’s dual GIP and GLP-1 receptor agonist, Mounjaro (tirzepatide) injection for treating type II diabetes. Mounjaro is a novel diabetes treatment, which has shown impressive blood sugar reductions and weight loss in a broad range of type II diabetes patients in the SURPASS studies. Mounjaro will be available in six doses as an auto-injector pen. It is expected to be launched in the United States in the next few weeks.
FDA Gives Emergency Nod to Pfizer’s COVID Jab for Kids 5-11: The FDA granted emergency use authorization (EUA) to a booster/third dose of Pfizer/BioNTech’s mRNA-based COVID-19 vaccine, Comirnaty for children aged between 5 years and 11 years. The expanded EUA to include a booster dose for children was based on data from a phase II/III study, which showed a 36-fold increase in neutralizing antibodies against the Omicron variant in children who were given the booster dose. A booster dose of Comirnaty is already authorized for all adults and adolescents aged 12 years to 15 years while a second booster dose or “fourth” dose is authorized for older adults and some immunocompromised individuals. Comirnaty is the only COVID-19 vaccine with a EUA for use in children as primary series as well as for a third dose.
AbbVie Buys Option Rights to Novel Inflammation Candidate: AbbVie received an option to license worldwide rights for certain IL-2 muteins, including the next-generation inflammatory candidate, CUG252 from precision medicines biotech, Cugene. CUG252 is being evaluated in a phase I study in healthy volunteers while Cugene plans to conduct a phase Ib study in patients with autoimmune/inflammatory disease during the option period. For the deal, AbbVie will make an upfront payment of $48.5 million to Cugene while also being entitled to make future development and regulatory milestone payments. If AbbVie chooses to exercise the option, it will have to make an option exercise payment and will then take care of all future clinical development and commercialization activities related to CUG252.
AstraZeneca Buys Rights to COVID Antibody: AstraZeneca acquired an exclusive worldwide licence from London-based private biotech, RQ Biotechnology Ltd to develop and market monoclonal antibodies (mAbs) against the COVID-19 virus, SARS-CoV-2. For the rights, RQ Bio will receive upfront and milestone payments of up to $157 million while also being eligible for single-digit royalties on future sales of mAbs.
AstraZeneca’s cocktail mAb, Evusheld, a combination of two long-acting antibodies, tixagevimab and cilgavimab, is already authorized for pre-exposure prophylaxis (prevention) of COVID-19.
The NYSE ARCA Pharmaceutical Index rose 0.7% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AstraZeneca rose the most (5%) while J&J declined the most (2.2%).
In the past six months, AbbVie rose the most (31.2%) while Roche declined the most (16.7%).
(See the last pharma stock roundup here: PFE’s Biohaven Buyout Offer, BAYRY’s Q1 Earnings Update)
What's Next in the Pharma World?
Watch for regular pipeline and regulatory updates next week.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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
AstraZeneca PLC (AZN): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV and AstraZeneca AZN announced new licensing deals with small private biotechs. AbbVie Buys Option Rights to Novel Inflammation Candidate: AbbVie received an option to license worldwide rights for certain IL-2 muteins, including the next-generation inflammatory candidate, CUG252 from precision medicines biotech, Cugene. For the deal, AbbVie will make an upfront payment of $48.5 million to Cugene while also being entitled to make future development and regulatory milestone payments. | AbbVie Buys Option Rights to Novel Inflammation Candidate: AbbVie received an option to license worldwide rights for certain IL-2 muteins, including the next-generation inflammatory candidate, CUG252 from precision medicines biotech, Cugene. AbbVie ABBV and AstraZeneca AZN announced new licensing deals with small private biotechs. For the deal, AbbVie will make an upfront payment of $48.5 million to Cugene while also being entitled to make future development and regulatory milestone payments. | AbbVie ABBV and AstraZeneca AZN announced new licensing deals with small private biotechs. AbbVie Buys Option Rights to Novel Inflammation Candidate: AbbVie received an option to license worldwide rights for certain IL-2 muteins, including the next-generation inflammatory candidate, CUG252 from precision medicines biotech, Cugene. For the deal, AbbVie will make an upfront payment of $48.5 million to Cugene while also being entitled to make future development and regulatory milestone payments. | AbbVie ABBV and AstraZeneca AZN announced new licensing deals with small private biotechs. AbbVie Buys Option Rights to Novel Inflammation Candidate: AbbVie received an option to license worldwide rights for certain IL-2 muteins, including the next-generation inflammatory candidate, CUG252 from precision medicines biotech, Cugene. For the deal, AbbVie will make an upfront payment of $48.5 million to Cugene while also being entitled to make future development and regulatory milestone payments. |
23379.0 | 2022-05-20 00:00:00 UTC | AbbVie Submits NDA For ABBV-951 To FDA For Treatment Of Advanced Parkinson's Disease | ABBV | https://www.nasdaq.com/articles/abbvie-submits-nda-for-abbv-951-to-fda-for-treatment-of-advanced-parkinsons-disease | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday that it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD).
The submission is based on results from a Phase 3, head-to-head, randomized and controlled clinical trial demonstrating statistically significant improvement in "On" time without troublesome dyskinesia compared to oral immediate-release carbidopa/levodopa (CD/LD).
ABBV-951 is designed to provide a first-of-its-kind, 24-hour, continuous subcutaneous delivery of CD/LD. Compared to oral CD/LD, it offers the potential for improvement in motor fluctuations in patients with advanced PD.
The NDA is based primarily on data from the M15-736 study, a Phase 3 randomized, double-blind, double-dummy, active-controlled study, which demonstrated statistically superior efficacy of ABBV-951 compared to oral immediate-release CD/LD in controlling motor fluctuations in advanced PD patients.
Approximately 130 adult participants with PD, whose motor symptoms were no longer adequately controlled by their current medications, were enrolled in the study across 80 sites in the U.S. and Australia.
AbbVie will continue to pursue regulatory submissions for ABBV-951 across international markets throughout the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday that it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD). ABBV-951 is designed to provide a first-of-its-kind, 24-hour, continuous subcutaneous delivery of CD/LD. The NDA is based primarily on data from the M15-736 study, a Phase 3 randomized, double-blind, double-dummy, active-controlled study, which demonstrated statistically superior efficacy of ABBV-951 compared to oral immediate-release CD/LD in controlling motor fluctuations in advanced PD patients. | The NDA is based primarily on data from the M15-736 study, a Phase 3 randomized, double-blind, double-dummy, active-controlled study, which demonstrated statistically superior efficacy of ABBV-951 compared to oral immediate-release CD/LD in controlling motor fluctuations in advanced PD patients. (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday that it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD). ABBV-951 is designed to provide a first-of-its-kind, 24-hour, continuous subcutaneous delivery of CD/LD. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday that it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD). The NDA is based primarily on data from the M15-736 study, a Phase 3 randomized, double-blind, double-dummy, active-controlled study, which demonstrated statistically superior efficacy of ABBV-951 compared to oral immediate-release CD/LD in controlling motor fluctuations in advanced PD patients. ABBV-951 is designed to provide a first-of-its-kind, 24-hour, continuous subcutaneous delivery of CD/LD. | ABBV-951 is designed to provide a first-of-its-kind, 24-hour, continuous subcutaneous delivery of CD/LD. The NDA is based primarily on data from the M15-736 study, a Phase 3 randomized, double-blind, double-dummy, active-controlled study, which demonstrated statistically superior efficacy of ABBV-951 compared to oral immediate-release CD/LD in controlling motor fluctuations in advanced PD patients. (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday that it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for ABBV-951 (foscarbidopa/foslevodopa) for the treatment of motor fluctuations in patients with advanced Parkinson's disease (PD). |
23380.0 | 2022-05-19 00:00:00 UTC | These 3 Stocks Have Doubled Over the Past 3 Years. Can They Do It Again? | ABBV | https://www.nasdaq.com/articles/these-3-stocks-have-doubled-over-the-past-3-years.-can-they-do-it-again | nan | nan | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. All three have the potential to double their shares again over the next three years because of their stability, consistent revenue growth, and attractive dividends.
On top of that, none of them are overvalued, all trading below three times earnings. So even though their stocks may take an occasional tumble, they won't likely fall too far.
Image source: Getty Images.
1. Carlisle Companies: quietly forging ahead
Carlisle Companies was trading at $105.07 a little more than two years ago. Now, its shares are about $245 a pop, and they are up more than 25% over the past year.
Carlisle has its own built-in diversity of sales, as it is four companies under one umbrella: Carlisle Construction Materials, Carlisle Waterproofing Technologies, Carlisle Interconnect Technologies, and Carlisle Fluid Technologies. These companies manufacture and supply engineered materials to be used by original manufacturers. Because Carlisle sells to businesses, it is lesser-known by average consumers, but it brought in $4.8 billion in revenue last year and it plans to grow annual revenue to $8 billion by 2025.
Carlisle is coming off a record $1.5 billion in revenue in the first quarter, up 59% year over year. Earnings per share (EPS) were $3.67, an increase of 209% over the prior year. It also improved its operating margin to 18.5% in the first quarter, up from 9% in the same quarter last year.
While all of its businesses did well, Carlisle Waterproofing Technologies was the biggest driver, with revenue of $359.1 million, up 120.4% over the same period in 2021, and operating income of $37.5 million, up 253.8% year over year. The company said the reason for that increase is the company's $1.6 billion acquisition last September of the Henry Company, which provides building systems that control the flow of water, vapor, and energy, serving construction and repair projects in residential, light commercial, and commercial end-markets.
Carlisle has increased its dividend every year for 45 years, including a 3% raise last year to $0.54 per share, which works out to a yield of 0.87%. That's not exactly splashy but perfectly safe, as the company's annual cash dividend payout ratio is 39.21%.
2. Innovative Industrial Properties continues to grow
Innovative Industrial Properties was below $60 a share in March 2020. As of earlier this week, it was trading at $133 a share, and that's after falling more than 49% this year. Innovative, as the first and most prominent real estate investment trust (REIT) to work exclusively on lease buybacks with cannabis companies, has taken a hit to its shares at the same time its tenants' shares have fallen, but the company's business model appears solid.
It's no stretch to say that the company's shares could trade for double what they are today because they were trading for just under $280 a share last November. In the interim, the company's financials remained strong, even though investor confidence in the stock fell.
In the first quarter, Innovative reported revenue of $64.5 million, up 50% year over year, while EPS was $1.32, compared with $1.05 in the same period in 2021. More importantly for a REIT, its funds from operations (FFO) were $48.9 million, with an FFO per share of $1.86, up from $34.4 million and $1.39 in the first quarter of 2021.
The company raised its dividend in the first quarter by 17% to $1.75 per share, representing a yield of 5.26%. The company has boosted its dividend by 68% over the past three years, but its adjusted FFO payout ratio of 79% is considered safe, particularly for a REIT.
IIPR has shown stronger growth than a typical REIT because it has been vigorous in adding new properties. As of May 16, it owned 110 properties comprising roughly 8.2 million rentable square feet. That's up from 19 properties comprising 1.3 million rentable square feet just three years ago.
The big concern among investors is what happens with the company's business model if federal laws are passed making it easier for cannabis companies to get regular financing. I think that concern is more than made up for by the continued growth of the industry, showing cannabis companies will continue to do leasebacks to free up cash for expansion. IIPR's size and first-to-market status should continue to make it the go-to REIT in the industry.
3. AbbVie's deep pipeline keeps paying off
AbbVie is trading for $155 a share. A little over two years ago, it was trading at just under $69 a share. Despite all the turmoil in the market this year, the giant pharmaceutical company remains a bright spot, with shares up more than 10% so far in 2022.
In the company's first quarter, it reported revenue of $13.5 billion, up 4.1% year over year, and EPS of $2.51, up 26% over the first quarter of 2021.
AbbVie isn't as reliant on blockbuster immunology drug Humira as some think. While its sales declined 2.7% (including a drop of 22.6% outside the United States because of biosimilar competition), the company's other immunology drugs, Skyrizi and Rinvoq, continue to grow in sales. Skyrizi had $940 million in revenue in the quarter, up 63.7%, year over, and Rinvoq had $465 million in revenue, up 53.6% from the same period last year. In addition, the company's aesthetics and neuroscience franchises were up 20.5% and 19.2%, respectively, year over year.
There's likely to be plenty of growth ahead as the company expands the label uses for Skyrizi and Rinvoq, along with cashing in on a strong oncology portfolio, led by blood cancer therapies Venclexta ($473 million in revenue in the quarter) and Imbruvica, which brought in $1.2 billion in revenue in the quarter.
Then there's AbbVie's dividend, which it raised this year by 8.5% to $1.41 per share, giving it a yield of roughly 3.71%, which dwarfs that of most pharmaceutical companies. Counting its time as part of Abbott Labs, AbbVie has raised its dividend each year for 50 consecutive years (making it a Dividend King) and by 250% since it broke off from Abbott in 2013. Its annual cash dividend payout yield is only 42%, so there's room for more dividend increases.
Doubling down on doubling your returns
Of the three, Innovative Industrial Properties might have an easier time doubling its share price over the next three years since it previously hit $280 a share last November. Any movement toward more states legalizing marijuana sales would likely push the stock back up, as long as the company's financials remain strong.
I could easily see AbbVie doubling its share price within the next three years, particularly if it continues to watch its other immunology drugs other than Humira grow revenue. Because of its higher price, Carlisle Companies would have the most difficult time doubling its share price in three years, but the company is probably the safest bet of the three companies to continue rising. If it reaches its goal of $8 billion in revenue by 2025, its shares could double from where they are now.
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Jim Halley has positions in AbbVie, Carlisle Companies, and Innovative Industrial Properties. The Motley Fool has positions in and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I could easily see AbbVie doubling its share price within the next three years, particularly if it continues to watch its other immunology drugs other than Humira grow revenue. Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. AbbVie's deep pipeline keeps paying off AbbVie is trading for $155 a share. | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. AbbVie's deep pipeline keeps paying off AbbVie is trading for $155 a share. AbbVie isn't as reliant on blockbuster immunology drug Humira as some think. | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. AbbVie's deep pipeline keeps paying off AbbVie is trading for $155 a share. AbbVie isn't as reliant on blockbuster immunology drug Humira as some think. | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. AbbVie's deep pipeline keeps paying off AbbVie is trading for $155 a share. AbbVie isn't as reliant on blockbuster immunology drug Humira as some think. |
23381.0 | 2022-05-18 00:00:00 UTC | 7 Best Value Stocks to Buy if You Need Some Market Stability in Your Life | ABBV | https://www.nasdaq.com/articles/7-best-value-stocks-to-buy-if-you-need-some-market-stability-in-your-life | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Weakness and long-term fear make investing in value stocks a strong idea right now.
Target (TGT): Earnings have been strong and Target is fundamentally strong.
D.R. Horton (DHI): Forces are in place for this home builder to continue to perform very well.
Deere (DE): Has plenty of tailwinds as well as built-in upside.
AbbVie (ABBV): Increased guidance and rock-solid dividend make AbbVie a buy.
Berkshire Hathaway (BRK-A, BRK-B): The value investing world will always consider the ever reliable Berkshire Hathaway.
Procter & Gamble (PG): In tough times consumer staples giants including Procter & Gamble are often strong bets.
Coca-Cola (KO): Coca-Cola makes sense for many of the same reasons as Procter & Gamble.
Source: patpitchaya / Shutterstock.com
There’s a strong case to be made that value stocks are back to being a smart choice. Growth stocks have proven incredibly volatile in an environment of rising interest rates. According to one source, tech giants, part of the tech sector that largely defines growth stocks, shed more than $1 billion in value over the period from May 6 to May 9.
The impetus for the sell-off was of course the Federal Reserve’s decision to raise its benchmark rate. Each time the Fed raises its benchmark rate, tech receives another blow. Fears about this relationship began to crop up at the end of 2021 when inflation fears initially surfaced.
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Those fears galvanized a pivoting away from growth stocks and tech in particular. That meant and continues to mean there is an opportunity for value stocks afoot.
TGT Target $215.28
DHI D.R. Horton $70.46
DE Deere $384.26
ABBV AbbVie $154.78
BRK-A BRK-B Berkshire Hathaway $314.60
PG Procter & Gamble $154.68
KO Coca-Cola $65.78
Target (TGT)
Source: Sundry Photography / Shutterstock.com
As I write this, on May 12, the Dow Jones continues its downward slide, falling by more than 1%. But big-box retailer Target (NYSE:TGT) is proving to be a bright spot amid the continued bad news. It has risen by more than 1% on the day.
It has proven to be a relatively stable stock throughout 2022 although it is down from $231 to $216. Let’s look at it from both a growth perspective and a value perspective in order to understand why it makes sense to invest right now.
From a growth perspective, Target has consistently shown over the past four quarters that it has the ability to surprise. In each of those past four quarters the Minneapolis-based company has bested consensus earnings-per-share (EPS) expectations. In fact, in the last quarter Target surprised the market with EPS figures that outpaced expectations by 11.54%. There are strong indications that the company could surprise positively again on May 18 when it releases earnings again. Thinking more broadly, Target is a prime pick among value stocks because its EPS expectations indicate that it will continue to grow through at least 2026.
From a fundamental value perspective, there’s also a good reason to invest in TGT stock: its current price-to-earnings (P/E) ratio of 15.46 is better than the current P/E ratio of the S&P 500 which stands at 15.97.
D.R. Horton (DHI)
Source: Casimiro PT / Shutterstock.com
D.R. Horton (NYSE:DHI) Is a firm with a fairly straightforward business model: it buys land, builds residential homes on that land, and sells them.
Given that housing prices are undergoing a boom it makes sense to consider DHI stock. However, interest rates are rising and that means that there is potential for a slowdown in the market.
Granted, D.R. Horton does face a significant headwind that will very likely be affected negatively in the near term. However, there are a few important counterpoints to this idea.
First of all, back at the end of April, the company raised its sales forecast citing the strong housing market. Although that news was given prior to the most recent interest rate increase the company was clearly aware that rate hikes were coming.
That positive forecast came on the heels of a second-quarter earnings beat by the company. D.R. Horton posted $4.03 EPS figures, well ahead of the $3.38 the market was anticipating.
The other reason to be positive on DHI stock is that thinking longer-term, the building boom is unlikely to taper despite rising interest rates. According to data from Realtor.com, the U.S. was short 5.24 million homes in September of 2021. that figure was up roughly 1.4 million from 2019. That strongly indicates that builders, including D.R. Horton, are going to have plenty of work even as the Fed raises interest rates.
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That’s good news for smart investors seeking a value-oriented home building stock.
Deere (DE)
Source: Jim Lambert / Shutterstock.com
Deere (NYSE:DE) stock is slightly up throughout 2022, having risen from $350 to $357 at the time of writing. that is certainly strong news given that the S&P 500 is down more than 19% year-to-date.
Farmers are looking to maximize their yields as food prices continue to soar. And given that Bank of America (NYSE:BAC) considers Deere to be the leader in precision agriculture the company has a reasonably strong catalyst.
In other words, Deere should see strong demand for its products as farmers seek to maximize yields and increase their bottom lines.
That said, the argument in favor of DE stock isn’t clear cut: It does have a P/E ratio of 19.86, higher than the S&P 500 P/E ratio of 15.97. However, DE stock has significant upside priced into current consensus target prices of $445.64 as it trades at $357.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is a pharma giant that was spun out of its former parent firm, Abbott Laboratories (NYSE:ABT).
One of the primary reasons to consider investing in AbbVie stock is its strong dividend. The quarterly dividend currently sits at $1.41 and hasn’t been reduced since the company was spun out from Abbott Laboratories back in 2013.
The dividend was raised in January of this year from its previous payout of $1.30. That dividend increase and the company’s history of dividend payments should inspire confidence that the future is bright for AbbVie.
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Otherwise, investors have another reason to be confident in the future of the company. in its latest earnings report the company was confident enough to Increase its full-year EPS guidance to between $14 to $14.20 from a previous range of $13.92 to $14.12.
Berkshire Hathaway (BRK-B)
Source: Jonathan Weiss / Shutterstock.com
If value is the name of the game, then Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) stock is about as logical of a choice as there is. Of course, investors are well aware that the company is headed by Warren Buffett and his longtime business partner Charlie Munger. Investors are also aware that value guides their investment principles.
Despite the fact that most analysts currently rate the company’s shares as a hold, there’s reason to believe in the stock. For one, there’s plenty of upside baked into current prices. Berkshire Hathaway shares trade around $310 but consensus target prices place it at $365.
Beyond that, there’s the company’s rock bottom 8.35 P/E ratio. That’s a reasonably solid indication of the investment principles of Buffett and Munger. The other reason that investors ought to be interested in Berkshire Hathaway currently is the fact that the company has outpaced EPS expectations in each of the last two quarters. values back, few if any stock better represents value than Berkshire Hathaway.
Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
It was only a few weeks ago that consumer goods giant Procter & Gamble (NYSE:PG) reported historical quarterly sales gains.
The company noted that despite inflation woes and fears of a recession consumers were still willing to pay premium prices for its products. Despite higher costs and the company reported that organic sales rose by 10% in the quarter. The company also caveat add that news, noting that ongoing economic trouble could cause consumers to switch to lower-priced brands.
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Since those April 20 results were released share prices have fallen roughly $10. But there’s little to substantiate the idea that consumers are exiting for generic brands rather than Procter & Gamble products. That implies that the company could again see bumper earnings in the following quarter.
Coca-Cola (KO)
Source: Mehaniq / Shutterstock.com
Part of the inherent value in investing in Coca-Cola (NYSE:KO) stock is the fact that it consistently produces strong returns. Case in point: the company has exceeded EPS guidance in each of the past four quarters.
Even so, it trades at around $65, near the analyst low target price of $64. But history shows that the company trades in a tight range and if you can purchase it anywhere near a low price then returns are a near certainty. KO stock definitely puts the “value” in value stocks.
At the end of April, the company reported higher quarterly sales on strong demand. That demand was strong enough to outpace an increase in prices for inputs in its products, suggesting that the company is weathering the current storm well.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Best Value Stocks to Buy if You Need Some Market Stability in Your Life 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. | Horton $70.46 DE Deere $384.26 ABBV AbbVie $154.78 BRK-A BRK-B Berkshire Hathaway $314.60 PG Procter & Gamble $154.68 KO Coca-Cola $65.78 Target (TGT) Source: Sundry Photography / Shutterstock.com As I write this, on May 12, the Dow Jones continues its downward slide, falling by more than 1%. AbbVie (ABBV): Increased guidance and rock-solid dividend make AbbVie a buy. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharma giant that was spun out of its former parent firm, Abbott Laboratories (NYSE:ABT). | Horton $70.46 DE Deere $384.26 ABBV AbbVie $154.78 BRK-A BRK-B Berkshire Hathaway $314.60 PG Procter & Gamble $154.68 KO Coca-Cola $65.78 Target (TGT) Source: Sundry Photography / Shutterstock.com As I write this, on May 12, the Dow Jones continues its downward slide, falling by more than 1%. AbbVie (ABBV): Increased guidance and rock-solid dividend make AbbVie a buy. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharma giant that was spun out of its former parent firm, Abbott Laboratories (NYSE:ABT). | Horton $70.46 DE Deere $384.26 ABBV AbbVie $154.78 BRK-A BRK-B Berkshire Hathaway $314.60 PG Procter & Gamble $154.68 KO Coca-Cola $65.78 Target (TGT) Source: Sundry Photography / Shutterstock.com As I write this, on May 12, the Dow Jones continues its downward slide, falling by more than 1%. AbbVie (ABBV): Increased guidance and rock-solid dividend make AbbVie a buy. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharma giant that was spun out of its former parent firm, Abbott Laboratories (NYSE:ABT). | Horton $70.46 DE Deere $384.26 ABBV AbbVie $154.78 BRK-A BRK-B Berkshire Hathaway $314.60 PG Procter & Gamble $154.68 KO Coca-Cola $65.78 Target (TGT) Source: Sundry Photography / Shutterstock.com As I write this, on May 12, the Dow Jones continues its downward slide, falling by more than 1%. AbbVie (ABBV): Increased guidance and rock-solid dividend make AbbVie a buy. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharma giant that was spun out of its former parent firm, Abbott Laboratories (NYSE:ABT). |
23382.0 | 2022-05-18 00:00:00 UTC | Vertex (VRTX) Outperforms Industry This Year So Far: Here's Why | ABBV | https://www.nasdaq.com/articles/vertex-vrtx-outperforms-industry-this-year-so-far%3A-heres-why | nan | nan | Vertex Pharmaceuticals Incorporated VRTX stock has risen 19.2% this year so far against the industry’s decline of 25%.
Image Source: Zacks Investment Research
Vertex’s main area of focus is cystic fibrosis (CF). With its four CF medicines, Vertex is treating the majority of the 83,000 patients living with CF in the United States, Europe, Canada and Australia.
Vertex’s cystic franchise sales continue to grow driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups in the United States are driving Trikafta/Kaftrio sales higher.
Vertex is evaluating its medicines in younger patient populations and aims to have small molecule treatments for approximately 90% of people with CF. Additionally, Vertex is pursuing genetic therapies to address the remaining 10% of CF patients, including an mRNA approach in partnership with Moderna MRNA. Vertex and Moderna plan to begin clinical development of their CFTR mRNA therapy in 2022/2023.
Vertex is also evaluating a triple combination of VX-561, a CFTR potentiator, VX-121, a CFTR corrector, and tezacaftor in two pivotal phase III studies. This new once-a-day combination medicine has the potential for enhanced patient benefit than Trikafta. Enrollment in the studies is expected to be completed in late 2022 or early 2023.
Meanwhile, Vertex has a broad clinical non-CF pipeline across six disease areas like pain, sickle cell disease, beta-thalassemia, APOL1-mediated kidney diseases (AMKD) and cell therapy for type I diabetes. Clinical studies on these candidates are progressing rapidly with impressive data presented from multiple programs this year that established proof-of-concept.
Vertex is co-developing a gene-editing treatment, CTX001 in partnership with CRISPR Therapeutics CRSP in two devastating diseases — sickle cell disease and thalassemia. Phase I/II studies of CTX001 in adult transfusion-dependent b-thalassemia in Europe and sickle cell disease in the United States are ongoing. The preliminary safety and efficacy data from the studies were positive.
Vertex and CRISPR Therapeutics plan to file regulatory applications for CTX001 for both indications in late 2022. Vertex expects CTX001 to be its next commercial launch.
In March, Vertex initiated the pivotal development of VX-147 in a single phase II/III study in patients with AMKD with two APOL1 mutations and proteinuric kidney disease. In patients with APOL1-mediated focal segmental glomerulosclerosis, or FSGS, a particular kind of AMKD, treatment with VX-147 led to a 47.6% reduction in proteinuria compared to baseline in a phase II study.
VX-548, a novel first-in-class, non-opioid NaV1.8 inhibitor, is being evaluated in two phase II acute pain studies, one following bunionectomy surgery and the other following abdominoplasty surgery. In March, Vertex announced positive data from the two phase II studies on VX-548. The studies met their primary endpoint and established proof of concept for VX-548. Based on this data, the company plans to advance VX-548 into pivotal development for acute pain in the second half of 2022.
A phase I/II study is ongoing on VX-880, Vertex’s stem cell-derived fully differentiated islet cell replacement therapy that could offer a functional cure for people living with type I diabetes. While the program was placed on a clinical hold by the FDA in May based on insufficient information for dose escalation, data available from the two patients treated at half-dose demonstrated proof of concept. VX-880 is Vertex’s first of the two investigational programs for the transplant of functional islets into patients. VX-880 is for the transplantation of islet cells alone, using immunosuppression to protect the implanted cells. The second program will involve the implantation of the islet cells inside an immunoprotective device. Clinical development on the second program is expected to begin in 2022.
Conclusion
Vertex faces minimal competition in its core CF franchise.
Recently, AbbVie ABBV completed an interim analysis of a phase II proof-of-concept study on its triple combination CF therapy. However, the interim efficacy results did not meet the pre-specified criteria for advancing this triple therapy in development.
The failure of AbbVie’s CF therapy has removed a significant overhang on Vertex’s shares regarding competitive data.
However, Vertex’s dependence on just the CF franchise for commercial revenues is a concern. Vertex’s non-CF programs carry significant risk, which is a concern.
Overall, a consistent rise in CF sales, the rapid progress of the non-CF pipeline candidates, minimal competition in its core CF franchise, and regular business development should keep the stock afloat going forward.
Vertex currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Recently, AbbVie ABBV completed an interim analysis of a phase II proof-of-concept study on its triple combination CF therapy. The failure of AbbVie’s CF therapy has removed a significant overhang on Vertex’s shares regarding competitive data. AbbVie Inc. (ABBV): Free Stock Analysis Report | Recently, AbbVie ABBV completed an interim analysis of a phase II proof-of-concept study on its triple combination CF therapy. The failure of AbbVie’s CF therapy has removed a significant overhang on Vertex’s shares regarding competitive data. AbbVie Inc. (ABBV): Free Stock Analysis Report | Recently, AbbVie ABBV completed an interim analysis of a phase II proof-of-concept study on its triple combination CF therapy. The failure of AbbVie’s CF therapy has removed a significant overhang on Vertex’s shares regarding competitive data. AbbVie Inc. (ABBV): Free Stock Analysis Report | Recently, AbbVie ABBV completed an interim analysis of a phase II proof-of-concept study on its triple combination CF therapy. The failure of AbbVie’s CF therapy has removed a significant overhang on Vertex’s shares regarding competitive data. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23383.0 | 2022-05-17 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock? | ABBV | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock-0 | nan | nan | Pharma giant AbbVie (NYSE: ABBV) has rewarded shareholders in the past decade with market-beating performance. That is especially noteworthy considering many pharma companies struggled through much of the 2010s as evidenced by the fact that the SPDR S&P Pharmaceutical ETF -- an industry benchmark -- substantially lagged the market in this period. AbbVie's strong showing was primarily a result of its top-selling drug, Humira.
However, Humira lost patent exclusivity in Europe in 2018, and it will start facing generics in the U.S. next year. How will AbbVie fare post-Humira? If the company manages to replace the medicine, it could deliver many more years of solid performances. Let's look closer at whether it is still worth it to purchase shares of AbbVie today.
ABBV Total Return Level data by YCharts
Recent financial results
AbbVie's shares dropped about 10% after it released its first-quarter results. The company's update wasn't that bad; revenue increased by a modest 4.1% year over year to $13.5 billion. Sales of Humira declined by 2.7% year over year to $4.7 billion. That's hardly surprising, considering that the rheumatoid arthritis medicine continues to face generic competition in various international markets. AbbVie's adjusted earnings per share increased by 9.3% to $3.16.
So why did AbbVie's shares drop on the heels of its earnings release? The sell-off likely happened due to a drop in sales of various products, especially cancer drug Imbruvica. Revenue from the medicine declined by 7.4% year over year to $1.2 billion as a result of competition from other cancer drugs.
Image source: Getty Images.
While it's never a good thing when sales of one of a pharmaceutical company's products decline, Imbruvica was already facing issues before this quarter. Last year, AbbVie's global revenue from Imbruvica increased by a meager 1.8% to $5.4 billion. This unimpressive result was also due in part to stiffer competition on the market. The good news for AbbVie is that some of its most important products that will replace Humira are still performing well.
These include immunosuppressants Skyrizi and Rinvoq, which will soon have earned approvals across all of Humira's major indications. In the first quarter, sales of Skyrizi increased by 63.7% year over year to $940 million while Rinvoq's sales grew by 53.6% year over year to $465 million. AbbVie expects these two products to generate more than $15 billion in revenue in 2025.
Note that Humira hit its peak sales last year at $20.7 billion. Once generics enter the U.S. market, Humira's revenue won't immediately drop to zero. The therapy will continue contributing to AbbVie's top line for a while longer.
Meanwhile, some of the company's other segments are performing well, too. Sales of AbbVie's aesthetics unit -- spearheaded by Botox Cosmetics -- grew by 20.5% year over year to $1.4 billion. With Botox Therapeutics at the helm, the company's neuroscience division reported revenue of $1.5 billion, 19.2% higher than the year-ago period. AbbVie's lineup looks increasingly ready for a post-Humira world.
Still worth buying
Despite Humira's impending loss of exclusivity in the U.S., AbbVie remains an excellent stock. First, as we have already seen, the company's lineup is strong enough to handle the inevitable sales drop that Humira will experience once it starts facing generic competition in the U.S. With the potential for label expansions and brand new drugs, AbbVie's pipeline will also be instrumental in helping the company keep its revenue afloat. The drugmaker is currently running dozens of clinical trials.
Second, AbbVie looks attractively valued at the moment with a forward price-to-earnings (P/E) ratio of 10.9, compared to an average of 12.8 for the pharmaceutical industry. Third, AbbVie is an excellent stock for dividend-seeking investors. The company offers a juicy yield of 3.67%-- which is much higher than the S&P 500's yield of 1.37%. AbbVie is a Dividend King, having raised its payouts for 50 consecutive years (including its time under the wing of medical-devices specialist Abbott Laboratories).
AbbVie will continue to provide growth and income to patient investors. It's far too early to jump off this boat.
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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 a Dividend King, having raised its payouts for 50 consecutive years (including its time under the wing of medical-devices specialist Abbott Laboratories). Pharma giant AbbVie (NYSE: ABBV) has rewarded shareholders in the past decade with market-beating performance. AbbVie's strong showing was primarily a result of its top-selling drug, Humira. | Pharma giant AbbVie (NYSE: ABBV) has rewarded shareholders in the past decade with market-beating performance. AbbVie's strong showing was primarily a result of its top-selling drug, Humira. How will AbbVie fare post-Humira? | Sales of AbbVie's aesthetics unit -- spearheaded by Botox Cosmetics -- grew by 20.5% year over year to $1.4 billion. First, as we have already seen, the company's lineup is strong enough to handle the inevitable sales drop that Humira will experience once it starts facing generic competition in the U.S. With the potential for label expansions and brand new drugs, AbbVie's pipeline will also be instrumental in helping the company keep its revenue afloat. Pharma giant AbbVie (NYSE: ABBV) has rewarded shareholders in the past decade with market-beating performance. | Pharma giant AbbVie (NYSE: ABBV) has rewarded shareholders in the past decade with market-beating performance. AbbVie's strong showing was primarily a result of its top-selling drug, Humira. How will AbbVie fare post-Humira? |
23384.0 | 2022-05-17 00:00:00 UTC | AbbVie (ABBV) Buys Option Rights to NextGen Inflammation Drug | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-buys-option-rights-to-nextgen-inflammation-drug | nan | nan | AbbVie ABBV announced that it signed a deal with precision medicines biotech, Cugene, for CUG252, a potential best-in-class Treg-selective IL-2 mutein for the potential treatment of autoimmune and inflammatory diseases.
Per the deal, AbbVie will get an option to license worldwide rights for certain IL-2 muteins, including a next-generation inflammatory candidate, CUG252, from Cugene. CUG252 is being evaluated in a phase I study in healthy volunteers while Cugene plans to conduct a phase Ib study in patients with autoimmune/inflammatory disease during the option period.
AbbVie’s stock has risen 14.7% this year so far compared with an increase of 2.1% for the industry.
Image Source: Zacks Investment Research
For the deal, AbbVie will make an upfront payment of $48.5 million to Cugene while also being entitled to make future development and regulatory milestone payments. If AbbVie chooses to exercise the option, it will have to make an option exercise payment and will then take care of all future clinical development and commercialization activities for CUG252.
The deal builds on AbbVie’s strong position in immunology with a blockbuster drug like Humira and its new immunology medicines, Skyrizi and Rinvoq, in its portfolio. Skyrizi and Rinvoq demonstrated differentiated clinical profiles versus Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021. With new indications coming in the next couple of years, sales of these drugs could be higher and have the potential to replace Humira when generics are launched in 2023.
Zacks Rank and Stocks to Consider
AbbVie currently has a Zacks Rank #3 (Hold).
Some better-ranked biotech stocks are Alkermes ALKS, Sesen Bio SESN and Abeona Therapeutics ABEO. While Alkermes and Sesen Bio have a Zacks Rank #1, Abeona Therapeutics has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alkermes’ 2022 loss per share has narrowed from 13 cents to 3 cents in the past 30 days. Shares of ALKS have risen 24.3% year to date.
Earnings of Alkermes beat estimates in each of the last four quarters, the average being 350.5%.
The consensus estimate for Sesen Bio’s 2022 loss per share has declined from 33 cents to 32 cents in the past 30 days. Shares of SESN have declined 49.2% 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%.
The consensus estimate for Abeona Therapeutics’ 2022 loss has narrowed from 34 cents to 33 cents in the past 30 days. Shares of ABEO have declined 46.6% in the year-to-date period.
Earnings of Abeona Therapeutics missed estimates in two of the last four quarters and met the mark on two occasions, the average negative surprise being 8.17%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Per the deal, AbbVie will get an option to license worldwide rights for certain IL-2 muteins, including a next-generation inflammatory candidate, CUG252, from Cugene. AbbVie ABBV announced that it signed a deal with precision medicines biotech, Cugene, for CUG252, a potential best-in-class Treg-selective IL-2 mutein for the potential treatment of autoimmune and inflammatory diseases. AbbVie’s stock has risen 14.7% this year so far compared with an increase of 2.1% for the industry. | AbbVie ABBV announced that it signed a deal with precision medicines biotech, Cugene, for CUG252, a potential best-in-class Treg-selective IL-2 mutein for the potential treatment of autoimmune and inflammatory diseases. Per the deal, AbbVie will get an option to license worldwide rights for certain IL-2 muteins, including a next-generation inflammatory candidate, CUG252, from Cugene. AbbVie’s stock has risen 14.7% this year so far compared with an increase of 2.1% for the industry. | Zacks Rank and Stocks to Consider AbbVie currently has a Zacks Rank #3 (Hold). AbbVie ABBV announced that it signed a deal with precision medicines biotech, Cugene, for CUG252, a potential best-in-class Treg-selective IL-2 mutein for the potential treatment of autoimmune and inflammatory diseases. Per the deal, AbbVie will get an option to license worldwide rights for certain IL-2 muteins, including a next-generation inflammatory candidate, CUG252, from Cugene. | AbbVie ABBV announced that it signed a deal with precision medicines biotech, Cugene, for CUG252, a potential best-in-class Treg-selective IL-2 mutein for the potential treatment of autoimmune and inflammatory diseases. Per the deal, AbbVie will get an option to license worldwide rights for certain IL-2 muteins, including a next-generation inflammatory candidate, CUG252, from Cugene. AbbVie’s stock has risen 14.7% this year so far compared with an increase of 2.1% for the industry. |
23385.0 | 2022-05-16 00:00:00 UTC | Japan pharma lobbies say pricing scheme leading to renewed 'drug lag' | ABBV | https://www.nasdaq.com/articles/japan-pharma-lobbies-say-pricing-scheme-leading-to-renewed-drug-lag | nan | nan | TOKYO, May 16 (Reuters) - Japan's three major pharmaceutical lobbies joined for the first time on Monday in urging reforms to the government's drug-pricing system to avoid losing out on investment and new drugs.
While American and European drugmakers have complained for years about drug prices set by Japan's socialised medical system, this is the first time that the domestic lobby has made a joint statement with them in a united front.
The lobbies said that Japan needs a more transparent and predictable price-setting mechanism to keep the market attractive for research-focused companies.
Since 2015, there have been more than 50 changes to the system that determines how much companies can charge hospitals and patients for drugs, James Feliciano, the country manager for Abbevie Inc ABBV.N, told reporters.
"The policy environment in Japan has become increasingly unpredictable and challenging," said Feliciano, who also heads the American lobby PhRMA in Japan. "The Japanese market is losing its attractiveness."
The policies could result in a return of "drug lag," he said, referring to a period in the early 2000s where new treatments developed overseas could take four years or more to enter the Japanese market.
Representatives from Japan's Pharmaceuticals and Medical Devices Agency, the main drug regulator, and the health ministry did not immediately respond to requests for comment.
Biopharmaceutical investment has increased 33% globally between 2015 and 2020, while it has fallen 9% in Japan, according to PhRMA data.
(Reporting by Rocky Swift; Editing by Christopher Cushing)
((rocky.swift@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. | Since 2015, there have been more than 50 changes to the system that determines how much companies can charge hospitals and patients for drugs, James Feliciano, the country manager for Abbevie Inc ABBV.N, told reporters. TOKYO, May 16 (Reuters) - Japan's three major pharmaceutical lobbies joined for the first time on Monday in urging reforms to the government's drug-pricing system to avoid losing out on investment and new drugs. While American and European drugmakers have complained for years about drug prices set by Japan's socialised medical system, this is the first time that the domestic lobby has made a joint statement with them in a united front. | Since 2015, there have been more than 50 changes to the system that determines how much companies can charge hospitals and patients for drugs, James Feliciano, the country manager for Abbevie Inc ABBV.N, told reporters. While American and European drugmakers have complained for years about drug prices set by Japan's socialised medical system, this is the first time that the domestic lobby has made a joint statement with them in a united front. "The policy environment in Japan has become increasingly unpredictable and challenging," said Feliciano, who also heads the American lobby PhRMA in Japan. | Since 2015, there have been more than 50 changes to the system that determines how much companies can charge hospitals and patients for drugs, James Feliciano, the country manager for Abbevie Inc ABBV.N, told reporters. TOKYO, May 16 (Reuters) - Japan's three major pharmaceutical lobbies joined for the first time on Monday in urging reforms to the government's drug-pricing system to avoid losing out on investment and new drugs. While American and European drugmakers have complained for years about drug prices set by Japan's socialised medical system, this is the first time that the domestic lobby has made a joint statement with them in a united front. | Since 2015, there have been more than 50 changes to the system that determines how much companies can charge hospitals and patients for drugs, James Feliciano, the country manager for Abbevie Inc ABBV.N, told reporters. While American and European drugmakers have complained for years about drug prices set by Japan's socialised medical system, this is the first time that the domestic lobby has made a joint statement with them in a united front. "The Japanese market is losing its attractiveness." |
23386.0 | 2022-05-16 00:00:00 UTC | 3 Dividend Stocks That Should Pay You for the Rest of Your Life | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-should-pay-you-for-the-rest-of-your-life-0 | nan | nan | If you've got some cash stored up, consider yourself a wise investor -- and fortunate. Now could be a great time to put that cash to use toward an investment in these three Dividend Kings that could provide robust returns for a lifetime.
Shares of AbbVie (NYSE: ABBV), Lowe's (NYSE: LOW), and Parker Hannifin (NYSE: PH) more than tripled over the past 10 years as investor confidence remained strong. But share price growth is just one part of the long-term investment story for these companies.
Image source: Getty Images.
AbbVie is finding ways to treat patent expiration anxiety
AbbVie was spun off from Abbott Labs in 2013 as a research-based pharmaceutical business. Since then, AbbVie has increased its dividend by more than 250%. The company's annual dividend of $5.64 per share is paid at a yield of 3.71% -- double that of the S&P 500's 1.86% long-term average. That's just one of the reasons why this Dividend King is part of Warren Buffett's Berkshire Hathaway portfolio.
Year-over-year revenue rose 4% during the first quarter, driving earnings higher by 9% for the same period. But the impact of patent expirations drove an 18% decline in sales of AbbVie's top-selling drug, Humira, due in part to biosimilar drugs from competitors Amgen and Biogen, which have been commercially available internationally since 2018. U.S. sales of Humira are expected to decline in 2023, once it loses exclusivity there, where Amgen, and Biogen have already received FDA approval for its biosimilar drugs.
The good news is that a robust drug portfolio is helping offset the decline in Humira. AbbVie saw an average 21% year-over-year increase in sales across its aesthetics and neuroscience portfolios, led by strong demand for Botox Cosmetic, Juvederm, and the newly launched oral migraine drug, Ubrelvy. Immunology drug sales of Skyrizi and Rinvoq, which rose 66% and 57%, respectively, for the quarter on a year-over-year basis should also help Humira's sales.
Momentum is growing for these two drugs as AbbVie expands their use into new markets. Skyrizi has 23% of total prescription share in U.S. biologics, and a leading position with 40% share in treating psoriasis. Meanwhile, Rinvoq market share could jump from 5.5% to the mid-teens based on new patient starts and repeat prescription data from AbbVie's Bridge program, which allows arthritis patients to try the product for free until the patient's coverage plan includes that drug.
With revenue and earnings both showing growth, and a plan in place for its robust product portfolio, AbbVie should sustain its annual dividend increases and provide passive income to investors for many years to come.
Lowe's provides the tools to build a foundation
Lowe's is the second-largest home improvement store chain, boasting an annual dividend of $3.20 at a yield of 1.70% -- not exactly at the level of AbbVie. So, why might investors buy this Dividend King? A $13 billion stock repurchase program, an annual dividend that has increased for 59 consecutive years, and a 15.7 P/E ratio -- lower than the S&P 500's 19.54 average -- are just a few reasons.
In 2021, 6.9 million homes were sold in the U.S., with that number expected to inch upward this year to 7 million. Rising interest rates and strong demand, coupled with sellers looking to cash in on high prices is creating an environment where houses barely stay on the market for a few days, if even listed publicly at all. The good news for Lowe's investors is that even if rates continue to rise and housing sales slow, homeowners who recently moved will likely be making plenty of visits to one of its 1,971 stores, or will start projects that will keep pro contractors visiting. Let's also not forget the new home build communities already under development, which should drive more sales of home building products.
Comparable store sales increased by 6.9% in 2021, supported by a 5% jump in Q4. Those results helped push the company to raise its 2022 guidance for total revenue, and for earnings to come in 2.7% higher than the top end of previous forecasts. Q1 earnings due out on May 18 should provide a near-term look into if the company will remain on course for those expectations. If all is well, long-term investors could be looking at an excellent opportunity to get in at a discount on a stock down 23% this year that will produce big gains, and an annual dividend that will continue to increase for a 60th consecutive year and beyond.
Parker Hannifin's technology is in demand
Aside from two swift drops -- Q1 2020 and the recent landslide since November -- shares of this global leader in motion and control technologies have been climbing steadily. Parker Hannifin stock has gained 227% over the past 10 years, and shares rose 320% as recent as November. But the stock price isn't the only thing growing -- so are the dividends.
Investor excitement is building on the heels of an announced 29% jump in quarterly dividend payout taking place on June 3 for shareholders on record as of May 13. That puts the annual dividend amount at $5.32 per share at a yield of 2%. If you missed out on that dividend increase, it's probably not worth sweating over. This Dividend King has increased annual dividends consecutively for 66 years. This most recent increase should only provide additional reason to think that its days as a king are far from over.
On May 5, Parker provided upward revised revenue guidance for fiscal 2022 despite headwinds from COVID-related shutdowns in China, growing inflationary pressures, supply chain disruption, and labor force challenges. Q3 sales increased 9% year over year to $4 billion, driven by an increase in orders across both the diversified industrials and aerospace segments.
What's more, the market for products in motion control technology is growing at a 2.5% compound annual growth rate as companies strive to improve the speed, precision, and cost efficiency of processes. Robotics and automation within sectors such as automotive, energy, smartphones, and aerospace -- for companies like Boeing and Lockheed Martin -- should continue to drive forward as those sectors evolve.
Parker manufactures hundreds of thousands of products, which gives it a deep portfolio. No single product was responsible for more than 1% of total net sales last year, meaning it can minimize the risk that may be associated with a portfolio reliant on a primary product. That minimized risk, along with projected market growth and demand for optimized processes, should bode well for Parker to continue generating income to support lifelong dividends.
10 stocks we like better than AbbVie
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Jeff Little has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Amgen, Biogen, Lockheed Martin, and Lowe's and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie saw an average 21% year-over-year increase in sales across its aesthetics and neuroscience portfolios, led by strong demand for Botox Cosmetic, Juvederm, and the newly launched oral migraine drug, Ubrelvy. Shares of AbbVie (NYSE: ABBV), Lowe's (NYSE: LOW), and Parker Hannifin (NYSE: PH) more than tripled over the past 10 years as investor confidence remained strong. AbbVie is finding ways to treat patent expiration anxiety AbbVie was spun off from Abbott Labs in 2013 as a research-based pharmaceutical business. | Shares of AbbVie (NYSE: ABBV), Lowe's (NYSE: LOW), and Parker Hannifin (NYSE: PH) more than tripled over the past 10 years as investor confidence remained strong. With revenue and earnings both showing growth, and a plan in place for its robust product portfolio, AbbVie should sustain its annual dividend increases and provide passive income to investors for many years to come. AbbVie is finding ways to treat patent expiration anxiety AbbVie was spun off from Abbott Labs in 2013 as a research-based pharmaceutical business. | With revenue and earnings both showing growth, and a plan in place for its robust product portfolio, AbbVie should sustain its annual dividend increases and provide passive income to investors for many years to come. Shares of AbbVie (NYSE: ABBV), Lowe's (NYSE: LOW), and Parker Hannifin (NYSE: PH) more than tripled over the past 10 years as investor confidence remained strong. AbbVie is finding ways to treat patent expiration anxiety AbbVie was spun off from Abbott Labs in 2013 as a research-based pharmaceutical business. | Since then, AbbVie has increased its dividend by more than 250%. With revenue and earnings both showing growth, and a plan in place for its robust product portfolio, AbbVie should sustain its annual dividend increases and provide passive income to investors for many years to come. Shares of AbbVie (NYSE: ABBV), Lowe's (NYSE: LOW), and Parker Hannifin (NYSE: PH) more than tripled over the past 10 years as investor confidence remained strong. |
23387.0 | 2022-05-16 00:00:00 UTC | Buffett's Berkshire buys Citigroup and several other stocks, slashes Verizon | ABBV | https://www.nasdaq.com/articles/buffetts-berkshire-buys-citigroup-and-several-other-stocks-slashes-verizon | nan | nan | By Jonathan Stempel
May 16 (Reuters) - Berkshire Hathaway Inc BRKa.N on Monday said it added new investments in Citigroup Inc C.N and several other companies in the first quarter, as Warren Buffett's conglomerate took advantage of volatile stock markets to invest $51.1 billion that had largely been sitting in cash.
In a regulatory filing describing its U.S.-listed equity investments as of March 31, Berkshire reported new stakes in Ally Financial Inc ALLY.N, chemicals and specialty materials company Celanese Corp CE.N, insurance holding company Markel Corp MKL.N, drug distributor McKesson Corp MCK.Nand Paramount Global PARA.O, formerly known as ViacomCBS.
Omaha, Nebraska-based Berkshire said it sold nearly all of an $8.3 billion stake in Verizon Communications Inc VZ.Nthat it had amassed in late 2020.
Berkshire also finally exited Wells Fargo & Co WFC.N, a 33-year-old investment that Buffett soured on after finding it too slow to address revelations that employees had mistreated customers, including by opening unwanted accounts.
Buffett's company ended March with $106.3 billion of cash and equivalents, down from a near-record $146.7 billion three months earlier, largely reflecting the new investments.
These included previously disclosed stakes in Chevron Corp CVX.N and Occidental Petroleum Corp OXY.N, computer and printer maker HP Inc HPQ.N and video game maker Activision Blizzard Inc ATVI.O, the latter an arbitrage bet.
Stock sales totaled $9.7 billion, and also included drugmakers AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N.
Citigroup, where Berkshire invested nearly $3 billion, has embarked on a multiyear plan to boost performance and a share price that in recent years has lagged larger rivals JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N, the latter a major Berkshire investment.
Some investors have described Markel as a small-scale version of Berkshire, and Buffett in March committed $11.6 billion to buy another insurance holding company fitting that description, Alleghany Corp. Y.N
Berkshire also owns several companies specializing in Celanese's sectors.
Monday's filing does not say which investments were made by Buffett and his portfolio managers Todd Combs and Ted Weschler.
Most large Berkshire investments are Buffett's. Stock prices often rise after Berkshire reveals new stakes because investors view the investments as a stamp of approval.
At Berkshire's annual meeting on April 30, Buffett said investors were too focused on flashy stocks, causing markets at times to resemble a casino, allowing him to focus on stocks that Berkshire understands and which add value.
Analysts have also viewed Chevron and Occidental as a way for Berkshire to benefit from rising oil prices following Russia's invasion of Ukraine.
"I wish the rest of the world worked as well as our big oil companies," Berkshire Vice Chairman Charlie Munger said at the annual meeting.
More than three-fourths of Berkshire's $390.5 billion equity portfolio on March 31 was in American Express Co AXP.N, Apple Inc AAPL.O, Bank of America, Chevron, Coca-Cola Co KO.N and Kraft Heinz Co KHC.O. Berkshire owned 26.6% of Kraft Heinz.
(Reporting by Jonathan Stempel in New York; Editing by Chris Reese, Bernard Orr)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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. | Stock sales totaled $9.7 billion, and also included drugmakers AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N. Berkshire also finally exited Wells Fargo & Co WFC.N, a 33-year-old investment that Buffett soured on after finding it too slow to address revelations that employees had mistreated customers, including by opening unwanted accounts. "I wish the rest of the world worked as well as our big oil companies," Berkshire Vice Chairman Charlie Munger said at the annual meeting. | Stock sales totaled $9.7 billion, and also included drugmakers AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N. In a regulatory filing describing its U.S.-listed equity investments as of March 31, Berkshire reported new stakes in Ally Financial Inc ALLY.N, chemicals and specialty materials company Celanese Corp CE.N, insurance holding company Markel Corp MKL.N, drug distributor McKesson Corp MCK.Nand Paramount Global PARA.O, formerly known as ViacomCBS. Stock prices often rise after Berkshire reveals new stakes because investors view the investments as a stamp of approval. | Stock sales totaled $9.7 billion, and also included drugmakers AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N. By Jonathan Stempel May 16 (Reuters) - Berkshire Hathaway Inc BRKa.N on Monday said it added new investments in Citigroup Inc C.N and several other companies in the first quarter, as Warren Buffett's conglomerate took advantage of volatile stock markets to invest $51.1 billion that had largely been sitting in cash. Citigroup, where Berkshire invested nearly $3 billion, has embarked on a multiyear plan to boost performance and a share price that in recent years has lagged larger rivals JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N, the latter a major Berkshire investment. | Stock sales totaled $9.7 billion, and also included drugmakers AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N. By Jonathan Stempel May 16 (Reuters) - Berkshire Hathaway Inc BRKa.N on Monday said it added new investments in Citigroup Inc C.N and several other companies in the first quarter, as Warren Buffett's conglomerate took advantage of volatile stock markets to invest $51.1 billion that had largely been sitting in cash. Some investors have described Markel as a small-scale version of Berkshire, and Buffett in March committed $11.6 billion to buy another insurance holding company fitting that description, Alleghany Corp. Y.N Berkshire also owns several companies specializing in Celanese's sectors. |
23388.0 | 2022-05-16 00:00:00 UTC | 7 Retirement Stocks for Steady Long-Term Income Growth | ABBV | https://www.nasdaq.com/articles/7-retirement-stocks-for-steady-long-term-income-growth | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As economic troubles loom, these retirement stocks should keep you in the black.
AbbVie (ABBV): strong portfolio for sustained dividend growth.
ASE Technology Holding (ASX): semiconductor demand from automotive tailwinds.
BCE (BCE): effective cost management will lift revenue and dividends.
Manulife Financial (MFC): digitization of business will lower expenses.
Altria Group (MO): strong brand and growth from healthier alternatives.
Merck & Co (MRK): Covid antiviral pill will add billions in revenue.
Prudential Financial (PRU): capital investments in real estate will increase returns in invested capital.
Source: Shutterstock
Investors who are just a few years away from retirement may look at markets in horror as the sell-off unfolds. Every time stocks fall, the value of retirement portfolios falls with it.
That could hurt a reader’s funds available upon retirement.
A worse scenario is that future retirees need to delay plans. Readers who are unwilling to work a few years more need to stay the course with a selection of stocks.
7 Safe Small-Cap Stocks to Buy Now
They must offer steady long-term income and potential capital growth. Otherwise, poor quality speculations may keep falling as stock market conditions weaken.
ABBV AbbVie $153.50
ASX ASE Technology $6.62
BCE BCE $52.91
MFC Manulife Financial $17.44
MO Altria Group $53.04
MRK Merck $90.41
PRU Prudential Financial $101.19
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) fell from its 52-week high of $175.91 after posting unimpressive first-quarter results and lowering its outlook.
It earned $3.16 a share (non-GAAP). Revenue grew by 4.1% year on year to $13.54 billion. For 2022, AbbVie expects adjusted diluted EPS of $14.00 – $14.20. the outlook includes milestone expenses and acquired in business combinations and asset acquisitions.
AbbVie’s write-down should not worry investors seeking retirement income. The firm has a history of raising its dividends regularly, which now topped $5.64 a share.
On its conference call, AbbVie’s Executive Vice President & Chief Commercial Officer Jeff Stewart said that Imbruvica faced some market share erosion. Stewart thinks the decline is temporary. After some stabilization, revenue will rebound back to more normal levels. When that happens, AbbVie will raise its guidance.
Markets worry over the patent expiry for AbbVie’s blockbuster drug, Humira. Fortunately, the firm is co-positioned against biosimilars in the U.S. Furthermore, competitors may price biosimilars at unfavorable levels. Patients will prefer Humira instead of a generic version as a result.
ASE Technology Holding Co (ASX)
Source: Shutterstock
ASE Technology (NYSE:ASX) supplies semiconductor assembly and test services and electronic manufacturing services.
In the first quarter, the firm posted net revenue of NT$144,39 million, up by 21% year over year. The gross margin improved by 0.7% to 19.7%. The operating margin was 11.2%.
ASE stock is cheap on every metric, which is something to treasure in retirement stocks. Its price-to-earnings ratio and forward P/E are in the mid-single-digit. The stock also pays an attractive dividend of 30 cents a share. Investors get both income and growth.
7 Long-Term Stocks to Buy for a Robust Retirement
In its EMS business, the company expects some foreseeable disruptions. The near-term headwind will last only a quarter. Overall momentum is strong. ASE has expanding projects with new customers.
In the automotive sector, ASE may realize $1 billion in revenue by 2024. This is a year earlier than the company previously projected.
Markets probably sold ASX stock on worries of a slowdown in the automotive sector. Pent-up demand will only boost revenue when supply constraints ease.
Retirees will realize significant capital gains by considering ASE stock before the automotive sales rebound.
BCE (BCE)
Source: Shutterstock
BCE (NYSE:BCE) is a Canadian telecom firm that faces minimal competition.
In the first quarter, it posted revenue growing by 2.6% year over year to CAD 5.85 billion. For fiscal 2022, BCE expects revenue to grow by between 1% to 5%. Adjusted EPS growth is 2% to 7%.
BCE is poised to rise steadily as markets underperform. It managed costs well and continues to par expenses. For example, financing and operating costs fell in Q1.
7 A-Rated Dividend Stocks to Buy Forever
The telecom giant posted service revenue growth of 8.7%. This is its best quarterly figure in 11 years. Furthermore, it added 34,230 net postpaid phone subscribers.
Its customers cannot cut their service no matter how poor the economy becomes. The Federal Reserve is raising interest rates, which may lead to a temporary recession. BCE’s business is immune to the economic slowdown.
In the media segment, the company realized digital revenue growth of 84%. Revenue rose by 15.7%, thanks to its stronger TV performance. Bell will sustain growth by expanding its fiber network. Customers will benefit from service improvements. This should increase its average revenue per user figure.
Manulife Financial (MFC)
Source: Shutterstock
Manulife Financial (NYSE:MFC) raised its dividend by 18% when it posted Q4 results on Feb. 9, 2022. In the quarter, it earned 84 cents a share. A healthy dividend is always worth considering when choosing retirement stocks.
In the previous quarter, banks and insurers in Canada could not raise their dividends due to Office of the Superintendent of Financial Institutions (OSFI) regulations. When Manulife posted strong earnings a share, the regulator eased those restrictions the next day.
Manulife is very focused on driving the benefits of scale. It is digitizing its business, resulting in a steep increase in efficiency rates in the last few years. As interest rates rise, Manulife will benefit from the tailwind. It will manage headwind risks from the hikes by reducing its expenses. It has the flexibility to adjust its pricing to offset higher costs.
Investors should expect Manulife to benefit from an inflow in retail investments. In the last quarter, it enjoyed $7.5 billion in inflows. The U.S. was the biggest contributor to Manulife reporting six straight quarters of positive net flows.
Altria Group (MO)
Source: Kristi Blokhin / Shutterstock.com
Income investors can count on Altria Group (NYSE:MO) to pay a $3.60 per share dividend. The tobacco firm benefits from the stability of its Marlboro product.
With the stay-at-home tailwind over, Altria will have no problem managing the discretionary income that will pressure its customers. Fortunately, Altria enjoys over 90% brand loyalty. It has a strong moat that will protect its profit growth in the long term.
Altria’s e-cigarette company Juul is a small risk. Still, the Food and Drug Administration will regulate the e-vapor category. Altria will need to manage the government oversight in the next 12 to 18 months. It has the flexibility to adjust Juul’s product mix to adhere to the FDA’s decisions.
By April 2022, investors should expect an upside for the e-vapor market. By then, the FDA will have finalized its authorization for e-vapor products in the marketplace.
In the interim, Altria will grow its smokeless tobacco products. This includes the oral nicotine pouch category which has strong margins.
Merck & Co (MRK)
Source: JHVEPhoto / Shutterstock.com
Merck (NYSE:MRK) has a healthy portfolio of products. It posted a first-quarter report that pleased its shareholders.
In the quarter, Merck’s Lagevrio, which inhibits the replication of Covid, topped $3.2 billion in sales.
Without Lagevrio, growth was 19%. Keytruda sales grew by 23% to $4.8 billion. Gardasil and Gardasil 9, which is a human papillomavirus 9-valent vaccine, added $1.5 billion in sales for Merck. Sales of the vaccine grew by 60% year-over-year.
7 Biggest Loser Stocks That Could Become Surprising Buys
The company benefited from strong demand in China for Gardasil. The country is managing Covid in a lockdown. As a result, Merck is supplying more Gardasil doses in other parts of the country.
For 2022, Merck raised its 2022 sales to between $56.9 billion and $58.1 billion. It expects full-year growth of 17% to 19%. Conversely, emerging biotech firms in need of cash cannot tap the initial public offering market.
Smaller players will suffer. This could open an opportunity for Merck to acquire those companies at a steep discount. Merck is in no rush to buy drug discovery companies. Its product portfolio is already healthy so this is one of those retirement stocks that looks good and is only likely to look better going forward.
Prudential Financial (PRU)
Source: JHVEPhoto / Shutterstock.com
Prudential Financial (NYSE:PRU) experienced $4.3 billion in net outflows in its last quarter. The fixed income mutual fund industry weakened. Investor panic worsened in the quarter. Still, Prudential saw a $300 million positive flow into public fixed income and real estate.
Prudential has healthy product diversification. Its institutional business, for example, benefits from algorithms that are positioned into fixed income. Since 2017, Prudential saw $55 billion in inflows. Interest rates are rising sharply, too. This will exert pressure on the retail fixed-income industry. Higher rates are ultimately good for the company’s fixed-income business.
To expand profit margins, Prudential may increase its fee rate. But for now, it is benefiting from the strong real estate and private credit market. In the first quarter, it invested $9.6 billion in real estate. It raised another $1.8 billion through PGIM Private Capital. In the long term, investors will benefit from the company’s track record of a high return on invested capital.
On the date of publication, Chris Lau 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 Retirement Stocks for Steady Long-Term Income Growth 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. | MFC Manulife Financial $17.44 MO Altria Group $53.04 MRK Merck $90.41 PRU Prudential Financial $101.19 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) fell from its 52-week high of $175.91 after posting unimpressive first-quarter results and lowering its outlook. On its conference call, AbbVie’s Executive Vice President & Chief Commercial Officer Jeff Stewart said that Imbruvica faced some market share erosion. AbbVie (ABBV): strong portfolio for sustained dividend growth. | MFC Manulife Financial $17.44 MO Altria Group $53.04 MRK Merck $90.41 PRU Prudential Financial $101.19 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) fell from its 52-week high of $175.91 after posting unimpressive first-quarter results and lowering its outlook. AbbVie (ABBV): strong portfolio for sustained dividend growth. ABBV AbbVie $153.50 ASX ASE Technology $6.62 | MFC Manulife Financial $17.44 MO Altria Group $53.04 MRK Merck $90.41 PRU Prudential Financial $101.19 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) fell from its 52-week high of $175.91 after posting unimpressive first-quarter results and lowering its outlook. AbbVie (ABBV): strong portfolio for sustained dividend growth. ABBV AbbVie $153.50 ASX ASE Technology $6.62 | AbbVie (ABBV): strong portfolio for sustained dividend growth. ABBV AbbVie $153.50 ASX ASE Technology $6.62 MFC Manulife Financial $17.44 MO Altria Group $53.04 MRK Merck $90.41 PRU Prudential Financial $101.19 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) fell from its 52-week high of $175.91 after posting unimpressive first-quarter results and lowering its outlook. |
23389.0 | 2022-05-16 00:00:00 UTC | The 5 Best Dividend Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/the-5-best-dividend-stocks-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors are shopping around for the best dividend stocks that could help weather an uncertain stock market.
Abbvie (ABBV): Anticipates its newer drugs, Skyrizi and Rinvoq, to generate a combined revenue of over $15 billion in 2025.
Exxon Mobil (XOM): Tripled its share repurchase program to $30 billion through 2023.
SL Green (SLG): Expects office buildings to remain in high demand by institutional investors.
United Parcel Service (UPS): The guidance for 2022 projects an all-time high revenue of $102 billion
Verizon Communications (VZ): Accelerating 5G deployment suggests a long-term upside due to rising data consumption.
Source: iQoncept/shutterstock.com
Last week, we found out that the consumer price index (CPI) went up by 8.3% in April, more than the 8.1% estimate. Meanwhile, the ongoing war in Ukraine is adding to the already jittery market sentiment.
As a result, investors are switching from high-growth stocks and looking for the best dividend stocks that could help them ride through the stock market uncertainty.
Passive income in the form of regular dividend returns significantly reduces the volatility of a long-term portfolio. It also provides a hedge against rising inflation.
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S&P Global (NYSE:SPGI) estimates that dividends have accounted for about a third of the total return for the S&P 500 index over the past century.
The remaining two-thirds come from capital appreciations. In addition, on a risk-adjusted basis, dividend names have delivered returns that have outperformed those shares that do not pay dividends as well as the broader market.
With that information, here are five of the best dividend stocks that could generate consistent returns in today’s volatile stock market.
ABBV AbbVie $153.50
XOM Exxon $88.86
SLG SL Green $64.44
UPS United Parcel Service $178.04
VZ Verizon $48.18
Abbvie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV), the biopharma behemoth, focuses on immunology and oncology. Its top-seller, Humira, currently makes up roughly half of AbbVie’s profits. This drug generated more than $17 billion in revenue last year.
Abbvie announced Q1 results on April. 29. Revenue increased 4.1% year over year to $13.54 billion. Adjusted diluted earnings per share (EPS) was $3.16, up 9% compared to $2.89 a year ago.
Although the drugmaker will be losing U.S. exclusivity for Humira in 2023, its newer drugs, Skyrizi and Rinvoq, have seen 64% and 54% year-over-year growth, respectively. Therefore, any bad news regarding Humira is likely to be already factored into the ABBV share price.
ABBV stock has gained more than 13% year to date. Beyond being one of the best dividend stocks to buy now ABBV is a dividend king. The company boasts a record of dividend increases for 50 consecutive years. AbbVie currently offers a robust 3.7% dividend yield.
Shares are trading at a reasonable valuation of 10.8 times forward earnings and 4.8 times sales. The 12-month median price forecast for Abbvie stock stands at $170.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
Exxon (NYSE:XOM), one of the largest oil and gas companies globally is also among the best dividend stocks to buy. Management issued Q1 results on April 29.
Revenue soared 52% year over year to $87.7 billion. EPS came in at $1.28, compared to 64 cents a year ago. The oil giant generated free cash flow (FCF) of $10.8 billion, benefiting from a strong recovery in demand and rising oil prices.
In April, Exxon moved forward with its investment decision regarding the Yellowtail development, its fourth and largest offshore oil project in Guyana. The $10 billion project is forecast to produce 250,000 barrels of oil from 2025 onward.
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Management has distributed $3.8 billion in dividends and repurchased $2.1 billion worth of shares during the quarter. This dividend aristocrat currently generates a 4.1% dividend yield.
To the delight of long-term shareholders, XOM stock has appreciated nearly 40% year to date. At present, shares are changing hands at 10.1 times forward earnings and 1.3 times sales. Meanwhile, the 12-month median price forecast for Exxon Mobil stock is at $98.
SL Green Realty (SLG)
Source: Shutterstock
SL Green (NYSE:SLG) is the biggest office landlord in Manhattan. This real estate investment trust (REIT) also boasts additional property exposure through its portfolio of premium retail space.
SL Green released Q1 results on April 20. Revenue declined 20% year over year to $187.96 million. Net income was 11 cents per share compared to a net loss of 12 cents per share for the same period a year ago. Funds from operations (FFO) came in at $1.65 per share, compared to $1.73 per share for the prior-year period.
Management has made its first large-scale acquisition in years and secured International Business Machines (NYSE:IBM) as an anchor tenant at its $2.3 billion One Madison Avenue development project.
SLG stock has declined more than 16% year to date. Still, the REIT supports a generous 5.9% dividend yield, making SLG stock attractive for income investors on this pullback.
At present, shares are trading at 68 times forward earnings and 6.1 times sales. And the 12-month median price forecast for SL Green stock stands at $79.
United Parcel Service (UPS)
Source: Sundry Photography / Shutterstock
United Parcel Service (NYSE:UPS) is the largest parcel delivery company in the world. Its international footprint makes it a leading industrial name, operating a vast fleet of over 500 planes and 100,000 vehicles.
UPS released Q1 results on April 26. Revenue grew by 6.4% year over year to $24.4 billion. Adjusted diluted EPS increased by 10% year over year to $3.05. FCF during the quarter stood at $3.92 billion.
Wall Street was pleased when management announced a 5.9% price hike in November 20221. Along with investments in efficiency, its significant pricing power has helped UPS grow its operating margin, despite rising inflation. For 2022, management expects an all-time high revenue of $102 billion.
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Despite the positive news, UPS stock has dropped nearly 17% year to date. It currently supports a 3.4% dividend yield. The board plans $5.2 billion in dividend payments for fiscal 2022.
Shares are trading at 14.2 times forward earnings and 1.6 times sales. At present, the 12-month median price forecast for UPS stock is at $229.
Verizon Communications (VZ)
Source: Ken Wolter / Shutterstock.com
Verizon (NYSE:VZ) is the largest wireless provider in the U.S. with more than 91 million postpaid customers. By the end of 2022, the company expects to cover more than 175 million people with its 5G Ultra Wideband network.
The leading wireless provider released Q1 results on April 22. Revenue increased 2.1% year over year to $33.6 billion. Adjusted EPS of $1.35 was roughly flat year over year. Cash and equivalents ended the period at $3.23 billion.
Verizon is a solid play on the increasing adoption of 5G in the U.S. Total wireless service revenue grew 9.5% year over year to $18.3 billion. Verizon boasts the widest spectrum in the sub-6 gigahertz range.
VZ stock has lost a little more than 8% year to date. Meanwhile, the board has increased dividends for 15 consecutive years, which currently yields 5.2%.
Shares offer value at just 8.9 times forward earnings and 1.5 times trailing sales. Finally, the 12-month median price forecast for Verizon stands at $57.
On the date of publication, Tezcan Gecgil 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 The 5 Best Dividend 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): Anticipates its newer drugs, Skyrizi and Rinvoq, to generate a combined revenue of over $15 billion in 2025. ABBV AbbVie $153.50 XOM Exxon $88.86 SLG SL Green $64.44 UPS United Parcel Service $178.04 VZ Verizon $48.18 Abbvie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV), the biopharma behemoth, focuses on immunology and oncology. Its top-seller, Humira, currently makes up roughly half of AbbVie’s profits. | ABBV AbbVie $153.50 XOM Exxon $88.86 SLG SL Green $64.44 UPS United Parcel Service $178.04 VZ Verizon $48.18 Abbvie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV), the biopharma behemoth, focuses on immunology and oncology. Abbvie (ABBV): Anticipates its newer drugs, Skyrizi and Rinvoq, to generate a combined revenue of over $15 billion in 2025. Its top-seller, Humira, currently makes up roughly half of AbbVie’s profits. | Abbvie (ABBV): Anticipates its newer drugs, Skyrizi and Rinvoq, to generate a combined revenue of over $15 billion in 2025. ABBV AbbVie $153.50 XOM Exxon $88.86 SLG SL Green $64.44 UPS United Parcel Service $178.04 VZ Verizon $48.18 Abbvie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV), the biopharma behemoth, focuses on immunology and oncology. Its top-seller, Humira, currently makes up roughly half of AbbVie’s profits. | ABBV AbbVie $153.50 XOM Exxon $88.86 SLG SL Green $64.44 UPS United Parcel Service $178.04 VZ Verizon $48.18 Abbvie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV), the biopharma behemoth, focuses on immunology and oncology. Beyond being one of the best dividend stocks to buy now ABBV is a dividend king. Abbvie (ABBV): Anticipates its newer drugs, Skyrizi and Rinvoq, to generate a combined revenue of over $15 billion in 2025. |
23390.0 | 2022-05-14 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy in the Stock Market Sell-Off | ABBV | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-in-the-stock-market-sell-off | nan | nan | Stock market crashes and corrections happen. Since the beginning of the year, the S&P 500 has been down over 17%. In fact, since the end of World War II, the benchmark index has tumbled more than 10% around 30 separate times.
A bear market of at least a 20% decline will also eventually happen again, maybe even this month. Soaring inflation, stubborn supply-chain problems, and a Federal Reserve determined to raise interest rates to combat runaway price increases make the likelihood all the greater.
Image source: Getty Images.
St. Louis Fed president James Bullard said it's a "fantasy" to believe the worst inflation the U.S. has experienced in 40 years could be tamed by tiptoeing around it. He indicated a need for aggressive interest rate hikes to the point where economic growth stops, and perhaps even contracts.
But even if a bear market did happen, it's important to keep such downturns in perspective. The Schwab Center for Financial Research says the average bear market has lasted only about 17 months.
That suggests investors should not cower in the face of a decline, but rather be ready to spring into action. The following three supercharged dividend stocks are good bets to carry you through the low points of any correction and beyond.
Image source: Getty Images.
AbbVie
Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll.
Internationally, Humira revenue tumbled 22% in the quarter to $743 million because of the new competition, and they'll begin showing up in the U.S. next year when Humira goes off-patent. But the cliff isn't nearly as steep as once thought. Humira has multiple indications it's approved for in the U.S. and abroad, so it will still be a massively growing therapy for years to come despite the presence of biosimilars.
And AbbVie has other big drugs that are growing too. Skyrizi revenue was almost $1 billion in the first quarter, a 66% increase , and it accounts for 23% of the total prescription share in the U.S. biologic market. Meanwhile, rheumatoid arthritis therapy Rinvoq saw revenue jump 57% to almost $500 million. AbbVie's neuroscience portfolio also contributed some $1.5 billion in revenue (up 20%) and its aesthetics portfolio brought in another $1.4 billion (up 22.5%).
AbbVie is a solid growth business and pays a dividend yielding 3.7% annually. From its beginning in 2013 as a spinoff from Abbott Labs, AbbVie has increased its dividend by more than 250% and raised it every year. Inheriting the dividend history of Abbott, it's also considered a Dividend Aristocrat.
Image source: Getty Images.
Pfizer
Pfizer (NYSE: PFE) is another pharmaceutical giant that, after the start of the pandemic, became all about its COVID-19 vaccines. Comirnaty, the vaccine it developed with BioNTech, generated $13.2 billion in first-quarter sales as global uptake in pediatric and booster shots rose. This represents 89% of Pfizer's vaccine portfolio as well as 51% of total revenue. With the pharma company now seeking approval for booster shots for 5- to 11-year-olds, this niche still has plenty of legs for more growth.
Paxlovid, Pfizer's oral COVID treatment, also gained considerable ground, growing 72% year over year, despite unfavorable currency exchange rates. It brought in almost $1.5 billion in sales, and it is expected to contribute $22 billion for the full year based on signed supply contracts signed so far this year.
With Comirnaty forecast to bring in $32 billion in full-year sales, the two treatments will represent between 53% and 55% of full-year revenue. The rest of its Covid-related portfolio boosts that to about 60% of the total, which does raise the specter of Pfizer being too dependent on COVID-19 products.
That's certainly the case at the moment. But with more than two-dozen phase 3 trials ongoing, Pfizer has a better-than-average chance of finding more than a few winning treatments to bolster its business once the immediacy of the COVID-19 threat fades.
The shares are also trading at a significant discount of 11 times trailing earnings and 9 times next year's estimates -- as well as just 13 times free cash flow. With a dividend yielding 3.2% annually, it has made the payout since 1980 and has increased the dividend every year since 2009 (it had cut its dividend in half earlier that year when it was going to buy Wyeth).
Image source: Getty Images.
Walgreens Boots Alliance
Healthcare retailer Walgreens Boots Alliance (NASDAQ: WBA) is down 17% so far in 2022, but the coming recession shouldn't be a major factor in whether the pharmacy's stock goes up and down. Regardless of the economy, people get sick, maybe even more so in bad times.
But Walgreens has been on a cost-cutting program that has wiped out $2 billion in expenses ahead of schedule, while its transformation plan is reportedly on track to deliver $3.3 billion in annual cost savings by fiscal 2024 (which starts in September of next year).
Although its second-quarter earnings hiccup caused investors to dump its stock, sales were still growing, operating income was rising, and its retail footprint saw record comparable sales with a nearly 15% gain. It's also a solid dividend stock, with 46 consecutive years of increasing the payout, which puts it on track to be a Dividend King in a few years. And because its financial condition is solid and can easily cover its payout, that should not be a problem.
With the dividend yielding a generous 4.4% and its stock even cheaper than Pfizer at just six times trailing earnings and eight times estimates (its free cash flow multiple is slightly more elevated at almost 19), it's a good pick for a growing dividend stock to settle into safely during market turmoil.
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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 Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll. And AbbVie has other big drugs that are growing too. AbbVie's neuroscience portfolio also contributed some $1.5 billion in revenue (up 20%) and its aesthetics portfolio brought in another $1.4 billion (up 22.5%). | AbbVie is a solid growth business and pays a dividend yielding 3.7% annually. AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll. And AbbVie has other big drugs that are growing too. | AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll. And AbbVie has other big drugs that are growing too. AbbVie's neuroscience portfolio also contributed some $1.5 billion in revenue (up 20%) and its aesthetics portfolio brought in another $1.4 billion (up 22.5%). | AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll. AbbVie's neuroscience portfolio also contributed some $1.5 billion in revenue (up 20%) and its aesthetics portfolio brought in another $1.4 billion (up 22.5%). * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
23391.0 | 2022-05-13 00:00:00 UTC | Pharma Stock Roundup: PFE's Biohaven Buyout Offer, BAYRY's Q1 Earnings Update | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-pfes-biohaven-buyout-offer-bayrys-q1-earnings-update | nan | nan | This week, Pfizer PFE offered to buy migraine drugmaker, Biohaven Pharmaceuticals for $11.6 billion. Bayer BAYRY announced first-quarter 2022 earnings. Roche RHHBY announced disappointing data from a phase III PD-L1-high metastatic non-small cell lung cancer (NSCLC)study. The FDA granted full approval to Eli Lilly LLY and Incyte’s Olumiant for treating COVID-19 in certain hospitalized patients. The drug has been available in the United States under emergency approval since 2020. AbbVie’s ABBV Rinvoq achieved clinical remission and endoscopic response at one year in a phase III maintenance study in patients with Crohn's disease.
Recap of the Week’s Most Important Stories
Pfizer to Buy Biohaven for $11.6B: Pfizer announced a definitive agreement to acquire Biohaven for a purchase consideration of approximately $11.6 billion in cash. The acquisition will add the latter’s migraine therapy, rimegepant, which is approved as Nurtec ODT in the United States for both acute treatment and episodic prevention of migraine in adults.
Rimegepant was recently approved as Vydura in the European Union for both acute treatment of migraine and prophylaxis of episodic migraine. Biohaven’s calcitonin gene-related peptide (CGRP) also includes zavegepant for which a regulatory application was filed in the United States in March as an intranasal spray for the acute treatment of migraine. Pfizer already has commercialization rights to rimegepant and zavegepant outside U.S. markets, per a deal signed in November last year as well as a 2.6% stake in Biohaven.
Per the deal, Pfizer will acquire all outstanding shares of Biohaven that it does not already own for $148.50 per share in cash. Biohaven shareholders will also get 0.5 of a share of a new publicly-traded company that will retain Biohaven’s non-CGRP pipeline compounds. The new company will continue to operate under the Biohaven name. Pfizer’s acquisition of Biohaven is expected to close in early 2023.
Pfizer and partner Myovant Sciences announced that the FDA has extended the review period of Myovant Sciences’ supplemental new drug application (sNDA) for Myfembree by three months.
This sNDA seeks approval for Myfembree (relugolix 40 mg, estradiol 1 mg and norethindrone acetate 0.5 mg) to manage moderate-to-severe pain associated with endometriosis. The FDA delayed its decision to Aug 6 from May 6 as it needs time to review new information submitted by the companies on FDA’s request regarding bone mineral density.
Last month, the companies had received a notice from the FDA that identified deficiencies that precluded the decision on labeling and/or post-marketing requirements in the sNDA
Bayer Tops Q1 Earnings & Sales Estimates: Bayer beat estimates for both earnings and sales in the first quarter. While sales in the Crop Science unit rose 21.6%, Pharmaceutical unit sales rose 2.6% year over year. Sales of key drug, Eylea rose 13.9%, driven by strong growth as a result of high demand in Europe and China. Sales in the Consumer Health segment rose 17.2%, supported by a robust recovery from the pandemic across all regions. The company maintained its previously issued core earnings guidance of €7 per share and sales outlook of €46 billion in 2022.
Roche’s Lung Cancer Study Fails to Improve PFS:Roche’s phase III study evaluating its investigational anti-TIGIT immunotherapy tiragolumab plus its PD-L1 inhibitor Tecentriq for the first-line treatment of PD-L1-high metastatic non-small cell lung cancer (NSCLC) failed to meet its co-primary endpoint of progression-free survival. The second primary endpoint of overall survival was not mature and the SKYSCRAPER-01 study will continue for further analysis. However, the study did achieve a numerical improvement for both the primary endpoints.
FDA’s Full Approval to Lilly’s Olumiant for Hospitalized COVID-19: The FDA granted full approval to Lilly/Incyte’s JAK inhibitor Olumiant (baricitinib) for treating COVID-19 in certain hospitalized adults requiring various degrees of oxygen support. Olumiant is already authorized for emergency use for this indication by the FDA since November 2020. However, the FDA’s full approval comes with a boxed warning on its label about the risk of serious infections, mortality, malignancy, major adverse cardiovascular events (MACE) and thrombosis. Olumiant is presently approved to treat rheumatoid arthritis (RA) in several countries and authorized to treat hospitalized COVID-19 patients in approximately 15 countries. Olumiant is also approved in Europe and Japan for atopic dermatitis while it is under review in the United States for the same indication.
AbbVie’s Rinvoq Meets Goal in Crohn’s Disease Study: AbbVie’s U-ENDURE, a phase III maintenance study evaluating Rinvoq (upadacitinib) in adult patients with moderate to severe Crohn's disease met the primary endpoint. In the study, a significantly greater proportion of patients treated with either 15 mg or 30 mg of upadacitinib achieved the co-primary endpoints of clinical remission and endoscopic response and a key secondary endpoint of endoscopic remission at one year compared to placebo. Rinvoq has been studied as an oral medicine for moderate-to-severe Crohn's disease in two other studies as well, U-EXCEED and U-EXCEL induction studies.
The NYSE ARCA Pharmaceutical Index declined 0.9% in the last five trading sessions.
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Pfizer rose the most (4%) while Roche declined the most (9.6%).
In the past six months, AbbVie rose the most (32%) while Roche declined the most (20.5%).
(See the last pharma stock roundup here: Q1 Earnings of LLY, MRK & NVS, FDA Updates for AZN & PFE)
What's Next in the Pharma World?
Watch for regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie’s ABBV Rinvoq achieved clinical remission and endoscopic response at one year in a phase III maintenance study in patients with Crohn's disease. AbbVie’s Rinvoq Meets Goal in Crohn’s Disease Study: AbbVie’s U-ENDURE, a phase III maintenance study evaluating Rinvoq (upadacitinib) in adult patients with moderate to severe Crohn's disease met the primary endpoint. In the past six months, AbbVie rose the most (32%) while Roche declined the most (20.5%). | AbbVie’s ABBV Rinvoq achieved clinical remission and endoscopic response at one year in a phase III maintenance study in patients with Crohn's disease. AbbVie’s Rinvoq Meets Goal in Crohn’s Disease Study: AbbVie’s U-ENDURE, a phase III maintenance study evaluating Rinvoq (upadacitinib) in adult patients with moderate to severe Crohn's disease met the primary endpoint. In the past six months, AbbVie rose the most (32%) while Roche declined the most (20.5%). | AbbVie’s Rinvoq Meets Goal in Crohn’s Disease Study: AbbVie’s U-ENDURE, a phase III maintenance study evaluating Rinvoq (upadacitinib) in adult patients with moderate to severe Crohn's disease met the primary endpoint. AbbVie’s ABBV Rinvoq achieved clinical remission and endoscopic response at one year in a phase III maintenance study in patients with Crohn's disease. In the past six months, AbbVie rose the most (32%) while Roche declined the most (20.5%). | AbbVie’s ABBV Rinvoq achieved clinical remission and endoscopic response at one year in a phase III maintenance study in patients with Crohn's disease. AbbVie’s Rinvoq Meets Goal in Crohn’s Disease Study: AbbVie’s U-ENDURE, a phase III maintenance study evaluating Rinvoq (upadacitinib) in adult patients with moderate to severe Crohn's disease met the primary endpoint. In the past six months, AbbVie rose the most (32%) while Roche declined the most (20.5%). |
23392.0 | 2022-05-13 00:00:00 UTC | 1 Company Disrupting Plastic Surgery, Not Patients | ABBV | https://www.nasdaq.com/articles/1-company-disrupting-plastic-surgery-not-patients | nan | nan | In a world where the word "selfie" translates into every language, more and more people want to look their best -- preferably without surgery. InMode (NASDAQ: INMD) is riding the wave of safer and faster results for patients, with industry-leading minimal and non-invasive RF technology that displaces painful liposuction, wrinkle reduction, and body contouring. Here's how the tech is benefiting physicians and patients alike.
Cutting through the fat
InMode uses bipolar radio frequency technology for body sculpting, fat reduction, wrinkle reduction, and muscle toning that previously required plastic surgery, scars, and long recovery times. Its devices deliver thermal energy to fatty or wrinkly areas of the body, face, and neck. The resulting heat liquefies fat, which the devices suction away, while tightening the skin and connective tissue around the treated area so that patients aren't left with flabby excess skin. Its technology can often provide deeper, more extensive results than competing technologies, and some minor procedures can even be done hands-free by attaching the device to the patient.
InMode sells it's systems through its direct sales force and also through third-party distributors. After the initial sales, InMode sells consumables that are needed for each procedure. As the number of installed systems and procedures grow, so do the recurring sales of consumables.
Image source: Getty Images.
For instance, in the first quarter of 2022, consumables grew 79% to $14 million, or 16% of overall revenue. For the full year 2021, InMode sold a record number of consumables representing 11% of overall revenue. The tremendous growth of consumables shows that physicians are increasingly adopting InMode's systems and that patient demand is growing.
In addition, InMode has devices that take care of hair removal, vein problems, and skin rejuvenation like many other companies. By going with InMode, physicians can deal with one company representative instead of multiple reps, creating a network effect for the business. InMode's long history of successful procedures makes it tough for competitors to break into the market with any significance.
According to InMode's 2021 annual report , its technology is the first and only RF-based, non-invasive body contouring technology that permanently kills body fat. InMode's systems deliver either pulse treatment, which doesn't burn skin, or continuous treatment, which monitors skin temperature to ensure skin is not burned during procedures. Thus far, the company's only real rival in non-invasive cosmetic treatments is AbbVie's (NYSE: ABBV) Allergan, which sells CoolSculping systems that freeze fat cells, later expelled by the body. Though CoolSculpting systems require fewer treatments, their results may not be permanent.
Theglobal marketfor radio frequency-based devices is expected to grow over 12% a year to $3.2 billion in 2030. New physicians have adopted InMode's systems, and existing physicians have expanded into new InMode systems rapidly over the last few years. Equipment sales jumped 72% in 2021. Such demand translates to gross margins consistently above 80% and free cash flow margins of over 38% in each of the last three years. And InMode's annual net income has risen each year since it went public, from $300,000 in 2016 to over $165 million in 2021.
A promising before-and-after picture?
Rising interest rates, among other things, have caused a sell-off in growth stocks this year. InMode shares are down dramatically from their all-time highs in November of 2021. On the company's first-quarter results, management reiterated guidance of revenue in the range of $415 million to $425 million, or about 17.5% growth, its lowest since going public. That's a big slowdown from its post-COVID 73% sales growth in 2021.
The guidance also included non-GAAP diluted EPS of $2.06 to $2.11 for full-year 2022, a modest increase from 2021's $2.05. If guidance holds, the stock trades at just over 10x forward earnings -- a compelling multiple for a competitively advantaged growing company, and well below the company's five-year average forward P/E of nearly 28x.
The main risk to the stock is a full-blown recession that might drive patients to forgo elective expenses. But given the nearly $400 million in cash, marketable securities, and bank deposits on the company's balance sheet in Q1, InMode should be able to weather whatever storm comes its way.
The precipitous fall of InMode's stock seems to be caused by the same supply chain and inflation concerns that have caused growth stock stocks to suffer this year. Cautious investors may want to wait for signs of these issues easing before diving in.
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Fool contributor B.J. Cook holds no financial position in any companies mentioned. The Motley Fool has positions in and recommends InMode Ltd. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Thus far, the company's only real rival in non-invasive cosmetic treatments is AbbVie's (NYSE: ABBV) Allergan, which sells CoolSculping systems that freeze fat cells, later expelled by the body. InMode (NASDAQ: INMD) is riding the wave of safer and faster results for patients, with industry-leading minimal and non-invasive RF technology that displaces painful liposuction, wrinkle reduction, and body contouring. But given the nearly $400 million in cash, marketable securities, and bank deposits on the company's balance sheet in Q1, InMode should be able to weather whatever storm comes its way. | Thus far, the company's only real rival in non-invasive cosmetic treatments is AbbVie's (NYSE: ABBV) Allergan, which sells CoolSculping systems that freeze fat cells, later expelled by the body. Cutting through the fat InMode uses bipolar radio frequency technology for body sculpting, fat reduction, wrinkle reduction, and muscle toning that previously required plastic surgery, scars, and long recovery times. The tremendous growth of consumables shows that physicians are increasingly adopting InMode's systems and that patient demand is growing. | Thus far, the company's only real rival in non-invasive cosmetic treatments is AbbVie's (NYSE: ABBV) Allergan, which sells CoolSculping systems that freeze fat cells, later expelled by the body. InMode's systems deliver either pulse treatment, which doesn't burn skin, or continuous treatment, which monitors skin temperature to ensure skin is not burned during procedures. New physicians have adopted InMode's systems, and existing physicians have expanded into new InMode systems rapidly over the last few years. | Thus far, the company's only real rival in non-invasive cosmetic treatments is AbbVie's (NYSE: ABBV) Allergan, which sells CoolSculping systems that freeze fat cells, later expelled by the body. According to InMode's 2021 annual report , its technology is the first and only RF-based, non-invasive body contouring technology that permanently kills body fat. New physicians have adopted InMode's systems, and existing physicians have expanded into new InMode systems rapidly over the last few years. |
23393.0 | 2022-05-13 00:00:00 UTC | 3 Dividend Stocks You Can Buy and Hold for Decades | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-you-can-buy-and-hold-for-decades-0 | nan | nan | You've probably heard the phrase "Think long term" quite a bit if you've been an investor for a while. But what time frame qualifies as a long-term horizon? There's no magic number, but 10 years seems to be a good minimum threshold.
However, there are some stocks with such strong underlying businesses that even 10 years isn't nearly long enough to own them. The ones that pay dividends can deliver especially attractive total returns. With that in mind, here are three dividend stocks you can buy and hold for decades.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) offers one of the most impressive dividend pedigrees around. The company is a Dividend King with 50 consecutive years of dividend increases (including the time it was part of Abbott )). Since spinning off from Abbott in 2013, AbbVie has increased its dividend by more than 250%. Its dividend yield currently tops 3.7%.
The drugmaker's consistency isn't limited to its dividend program. AbbVie has met or exceeded its adjusted earnings per share guidance in every quarter since it became an independent entity.
Humira, AbbVie's best-selling drug, faces biosimilar competition in the U.S. beginning in 2023. For some companies, the loss of exclusivity (LOE) for a top drug might lead to years of stagnation. However, AbbVie has planned well for Humira's LOE and expects to quickly return to growth in 2024.
The company has fielded a strong product lineup through internal development and acquisitions. Products including Botox, Rinvoq, Skyrizi, and Venclexta continue to deliver robust growth. AbbVie also has a deep pipeline that features nearly 20 late-stage programs.
2. Brookfield Renewable
Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) hasn't been around long enough to compile a track record like AbbVie's. However, the company has increased its dividend distribution by a compound annual growth rate of 6% since 2013. Its dividend yield now stands at close to 3.7%.
There are few markets with brighter futures than renewable energy. Countries across the world have committed to drastic reductions in carbon emissions. The only way to achieve those goals is to shift increasingly to renewable energy sources. Brookfield Renewable thinks that decarbonization "will create an unparalleled commercial opportunity."
The company is well-positioned to capitalize on that opportunity. Brookfield Renewable owns hydro, wind, solar, and storage facilities with a combined capacity of 21 gigawatts. And its development pipeline capacity totals roughly 62 gigawatts.
Unsurprisingly, Brookfield Renewable believes that it will be able to deliver strong growth for decades to come. The company expects to generate 12% to 15% returns over the long term, with its dividend distributions increasing on average between 5% and 9% annually.
Don't worry about inflation hurting Brookfield Renewable, either. CEO Connor Teskey noted in the company's recent quarterly conference call, "We see inflation as a tailwind." Around 70% of Brookfield Renewable's contracts are indexed to inflation.
3. Easterly Government Properties
Easterly Government Properties (NYSE: DEA) can make a claim that few companies can: Its cash flow is backed by the full faith and credit of the U.S. government. You won't find many stocks that offer that kind of stability.
The company is a real estate investment trust (REIT) that primarily leases properties to the U.S. government. It currently owns 89 properties (some through a joint venture). All but one of these properties are leased to federal agencies.
As a REIT, Easterly must return at least 90% of its taxable income to shareholders in the form of dividends. The company is highly profitable, which enables it to pay a juicy dividend yield of nearly 5.7%.
Rising interest rates shouldn't hurt Easterly too much. Around 96% of its borrowings have fixed rates with long-dated maturities. And if a recession is around the corner, as Easterly chairman Darrel Crate recently stated, "There's no better tenant to have than the United States federal government."
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Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. The Motley Fool has positions in and recommends Brookfield Renewable Corporation Inc. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) offers one of the most impressive dividend pedigrees around. Since spinning off from Abbott in 2013, AbbVie has increased its dividend by more than 250%. AbbVie has met or exceeded its adjusted earnings per share guidance in every quarter since it became an independent entity. | See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie AbbVie (NYSE: ABBV) offers one of the most impressive dividend pedigrees around. Since spinning off from Abbott in 2013, AbbVie has increased its dividend by more than 250%. | Brookfield Renewable Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) hasn't been around long enough to compile a track record like AbbVie's. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie AbbVie (NYSE: ABBV) offers one of the most impressive dividend pedigrees around. | AbbVie AbbVie (NYSE: ABBV) offers one of the most impressive dividend pedigrees around. Since spinning off from Abbott in 2013, AbbVie has increased its dividend by more than 250%. AbbVie has met or exceeded its adjusted earnings per share guidance in every quarter since it became an independent entity. |
23394.0 | 2022-05-12 00:00:00 UTC | July 1st Options Now Available For AbbVie | ABBV | https://www.nasdaq.com/articles/july-1st-options-now-available-for-abbvie | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $150.00 strike price has a current bid of $5.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $150.00, but will also collect the premium, putting the cost basis of the shares at $144.40 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $151.06/share today.
Because the $150.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.73% return on the cash commitment, or 27.25% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $150.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $4.25. If an investor was to purchase shares of ABBV stock at the current price level of $151.06/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $155.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.42% if the stock gets called away at the July 1st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red:
Considering the fact that the $155.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.81% boost of extra return to the investor, or 20.54% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $151.06) to be 20%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 1st expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 1st expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $150.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $4.25. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 1st expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 1st contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 1st expiration. |
23395.0 | 2022-05-12 00:00:00 UTC | Pharma Stocks: The Perfect Cure in an Unhealthy Environment? | ABBV | https://www.nasdaq.com/articles/pharma-stocks%3A-the-perfect-cure-in-an-unhealthy-environment | nan | nan | The COVID-19 pandemic resulted in several pharmaceutical companies profiting handsomely with robust sales from COVID-19 vaccines. This has also resulted in pharma companies faring relatively better in the stock market vis-à-vis other sectors, even amid the current market volatility. While pharma stocks like Pfizer have seen their stock price drop around 13% this year, other stocks in this sector including AbbVie, Bristol Myers-Squibb, and Merck (MRK) have seen their stock prices rise by 12.2%, 23.1%, and 16%, respectively.
In the current volatile macroeconomic scenario with rising inflation, hiked interest rates, and geopolitical uncertainty, are any pharma stocks worth buying? It appears that, yes, there are some companies in this sector that are still undervalued by the market relative to their intrinsic value.
Using the TipRanks stock comparison tool, we will compare three such value stocks in the pharma sector including Pfizer, AbbVie, and Bristol Myers-Squibb. We will also examine what Wall Street analysts have been saying about these stocks.
Pfizer (NYSE: PFE)
Pfizer has been in the news this week after its acquisition of migraine drugmaker Biohaven Pharmaceutical Holding Company Ltd. (BHVN), in an all cash deal for $11.6 billion.
This deal comes just after Pfizer’s acquisition of Arena Pharmaceuticals and Reviral Ltd., and after PFE and BHVN had entered into a strategic partnership deal in November last year.
Through this acquisition, Pfizer intends to commercialize NURTEC® ODT (rimegepant), an innovative migraine therapy, designed to prevent and acutely treat migraines, a condition with high unmet need.
According to Mizuho Securities analyst Vamil Divan, considering Pfizer’s “strong presence in the primary care market,” the analyst believes “Nurtec's clinical profile and single approach for both migraine treatment and prevention should resonate with primary care providers.”
According to the analyst, Pfizer expects around $6 billion in potential sales globally for the migraine franchise.
Moreover, Divan remained “pleased” with PFE’s “business development efforts, given the extra cash flows they have from sales of their COVID-19 vaccine Comirnaty and oral antiviral treatment Paxlovid.”
The analyst is of the view that the Biohaven deal will be another “near-term growth driver to the Pfizer portfolio.”
However, Divan stayed sidelined on the stock with a Hold rating as he remained concerned with “the extent of the patent expirations the company is facing and the further steps we believe the company needs to take to avoid significant sales declines in the second half of the decade.”
The analyst’s price target of $55 is nearer to the lowest price target of $50 on the Street and implies an upside potential of 11.2% at current levels. The stock is currently hovering near to its 52-week low with a closing price of $49.45 on May 11.
the rest of the analysts on the Street, however, are cautiously optimistic with a Moderate Buy consensus rating based on six Buys and eight Holds. The average Pfizer stock forecast is $58.92, implying a 19.3% upside potential to levels seen early Thursday.
AbbVie (NYSE: ABBV)
AbbVie delivered mixed Q1 results where it generated revenues of $13.5 billion, up 4.1% year-over-year but lagged consensus estimates of $13.6 billion. Adjusted earnings came in at $3.16 per share up 9.3% year-over-year, beating analysts’ expectations of $3.14 per share.
Last month, the company also announced the resignation of its Vice-Chairman Michael Severino, effective May 31.
AbbVie updated its adjusted diluted EPS guidance for FY22 to range between $13.92 and $14.12 from $14 to $14.20 per share earlier to account for the “unfavorable impact of $0.08 per share related to acquired IPR&D [in process research and development] and milestones expense incurred during the first quarter 2022.”
ABBV also lowered its revenue outlook for FY22 to $59.4 billion from $60 billion earlier to include “updated Restasis [drug] sales of approximately $400 million,” and account for an unfavorable impact of 1.5% due to currency exchange fluctuations.
However, Mizuho Securities analyst Vamil Divan is bullish “on the AbbVie story given the more diversified growth we believe they are poised to deliver, although we acknowledge uncertainty around the impact of the upcoming Humira US loss of exclusivity will likely keep shares trading at a discount to its peers.”
The analyst reiterated a Buy rating on the stock and a price target of $166, implying an upside potential of 9.2% at current levels.
Other analysts on the Street are cautiously optimistic with a Moderate Buy consensus rating based on 11 Buys and six Holds. The average ABBV stock forecast is $163.24, implying a 6.7% upside potential to early morning levels on Thursday.
Bristol Myers Squibb (NYSE: BMY)
Bristol Myers Squibb delivered strong Q1 results with revenues up 7% year-over-year to $11.65 billion, surpassing analysts’ expectations of $11.42 billion. The pharma company’s adjusted earnings came in at $1.96 per share, while analysts were expecting earnings of $1.94 per share.
Giovanni Caforio, M.D., board chair and CEO of Bristol Myers Squibb stated in its Q1 press release, “We continue to execute against our strategic priorities, deliver solid revenue and earnings growth and advance our product pipeline. Thanks to our team’s hard work and dedication, we achieved regulatory approvals of Opdualag and Camzyos, our new first-in-class medicines for patients living with metastatic melanoma and symptomatic obstructive hypertrophic cardiomyopathy, respectively.”
BMO Capital analyst, Evan Seigerman, while enthused by the U.S. FDA approval for Camzyos and the Q1 results, remained watchful of the faster-than-expected slide in revenue from its cancer drug Revlimid.
Revenues for Revlimid declined 5% year-over-year to $2.8 billion in Q1.
Siegerman remained bullish on the stock with a Buy rating and raised the price target from $87 to a Street high of $92 on the stock following the Camzyos approval. The analyst’s raised price target implies an upside potential of 20.8% to current levels.
Other analysts on the Street are cautiously optimistic with a Moderate Buy consensus rating based on six Buys, two Holds, and two Sells. The average BMY stock forecast is $76.10, implying that the stock is priced in at current levels.
Bottom Line
Currently, the pharma industry is trading at a three-year average price-to-earnings ratio of 20.2x while shares of Pfizer, AbbVie, and BMY are trading at a P-E ratio of 11.4x, 21.8x, and 27x, respectively.
This indicates that Pfizer could be the only undervalued stock in this batch. While analysts are cautiously optimistic about all three stocks, based on the upside potential over the next 12 months, PFE certainly seems to be a better Buy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie updated its adjusted diluted EPS guidance for FY22 to range between $13.92 and $14.12 from $14 to $14.20 per share earlier to account for the “unfavorable impact of $0.08 per share related to acquired IPR&D [in process research and development] and milestones expense incurred during the first quarter 2022.” ABBV also lowered its revenue outlook for FY22 to $59.4 billion from $60 billion earlier to include “updated Restasis [drug] sales of approximately $400 million,” and account for an unfavorable impact of 1.5% due to currency exchange fluctuations. While pharma stocks like Pfizer have seen their stock price drop around 13% this year, other stocks in this sector including AbbVie, Bristol Myers-Squibb, and Merck (MRK) have seen their stock prices rise by 12.2%, 23.1%, and 16%, respectively. Using the TipRanks stock comparison tool, we will compare three such value stocks in the pharma sector including Pfizer, AbbVie, and Bristol Myers-Squibb. | While pharma stocks like Pfizer have seen their stock price drop around 13% this year, other stocks in this sector including AbbVie, Bristol Myers-Squibb, and Merck (MRK) have seen their stock prices rise by 12.2%, 23.1%, and 16%, respectively. Using the TipRanks stock comparison tool, we will compare three such value stocks in the pharma sector including Pfizer, AbbVie, and Bristol Myers-Squibb. AbbVie (NYSE: ABBV) AbbVie delivered mixed Q1 results where it generated revenues of $13.5 billion, up 4.1% year-over-year but lagged consensus estimates of $13.6 billion. | While pharma stocks like Pfizer have seen their stock price drop around 13% this year, other stocks in this sector including AbbVie, Bristol Myers-Squibb, and Merck (MRK) have seen their stock prices rise by 12.2%, 23.1%, and 16%, respectively. However, Mizuho Securities analyst Vamil Divan is bullish “on the AbbVie story given the more diversified growth we believe they are poised to deliver, although we acknowledge uncertainty around the impact of the upcoming Humira US loss of exclusivity will likely keep shares trading at a discount to its peers.” The analyst reiterated a Buy rating on the stock and a price target of $166, implying an upside potential of 9.2% at current levels. Using the TipRanks stock comparison tool, we will compare three such value stocks in the pharma sector including Pfizer, AbbVie, and Bristol Myers-Squibb. | However, Mizuho Securities analyst Vamil Divan is bullish “on the AbbVie story given the more diversified growth we believe they are poised to deliver, although we acknowledge uncertainty around the impact of the upcoming Humira US loss of exclusivity will likely keep shares trading at a discount to its peers.” The analyst reiterated a Buy rating on the stock and a price target of $166, implying an upside potential of 9.2% at current levels. While pharma stocks like Pfizer have seen their stock price drop around 13% this year, other stocks in this sector including AbbVie, Bristol Myers-Squibb, and Merck (MRK) have seen their stock prices rise by 12.2%, 23.1%, and 16%, respectively. Using the TipRanks stock comparison tool, we will compare three such value stocks in the pharma sector including Pfizer, AbbVie, and Bristol Myers-Squibb. |
23396.0 | 2022-05-12 00:00:00 UTC | Lilly's (LLY) Olumiant Gets Full Approval From FDA for COVID | ABBV | https://www.nasdaq.com/articles/lillys-lly-olumiant-gets-full-approval-from-fda-for-covid | nan | nan | Eli Lilly and Company LLY and partner Incyte INCY announced that the FDA has granted full approval to their JAK inhibitor, Olumiant (baricitinib) for treating COVID-19 in certain hospitalized adults requiring various degrees of oxygen support.
Lilly and Incyte’s Olumiant has been available in the United States for treating COVID-19 in certain hospitalized patients (pediatric as well as adults) under FDA’s Emergency Use Authorization (EUA) since November 2020. With the full approval, Olumiant (4-mg once daily) will be available or the treatment of COVID-19 in hospitalized patients who require various degrees of respiratory support, from supplemental oxygen to mechanical ventilation or extracorporeal membrane oxygenation (ECMO). However, for pediatric patients, 2 to less than 18 years, the EUA remains in place.
Lilly’s shares have risen 3.8% this year so far compared with the industry’s increase of 1.5%.
Image Source: Zacks Investment Research
The FDA’s full approval is based on data from two randomized, double-blind, placebo-controlled phase III studies, ACTT-2 and COV-BARRIER.
However, the FDA’s full approval comes with a boxed warning on its label about the risk of serious infections, mortality, malignancy, major adverse cardiovascular events (MACE) and thrombosis
Olumiant is presently approved to treat rheumatoid arthritis (RA) in several countries and authorized to treat hospitalized COVID-19 patients in approximately 15 countries. Olumiant is also approved in Europe and Japan for atopic dermatitis while it is under review in the United States for the same indication. Olumiant is also under review for severe alopecia areata.
The drug generated sales of $255.6 million for Lilly in the first quarter of 2022, up 32% on a year-over-year basis.
Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz.
AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched next year.
Rinvoq registered sales of $465 million in the first quarter, up 57.3% year over year.
Pfizer’s Xeljanz is approved for RA, psoriatic arthritis, ulcerative colitis and ankylosing spondylitis. Xeljanz sales declined 29% to $372 million in the first quarter.
However, neither Rinvoq nor Xeljanz are approved to treat COVID-19.
Lilly currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched next year. | AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched next year. | Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched next year. | Some other popular JAK inhibitor medicines available are AbbVie’s ABBV Rinvoq (upadacitinib) and Pfizer’s PFE Xeljanz. AbbVie’s Rinvoq is approved for RA, psoriatic arthritis, ankylosing spondylitis and atopic dermatitis. AbbVie expects Rinvoq to be its key top-line driver when generics of its blockbuster immunology medicine Humira are launched next year. |
23397.0 | 2022-05-11 00:00:00 UTC | AbbVie Announces Positive Topline Results From U-ENDURE Phase 3 Study Evaluating Upadacitinib | ABBV | https://www.nasdaq.com/articles/abbvie-announces-positive-topline-results-from-u-endure-phase-3-study-evaluating | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Wednesday positive topline results from U-ENDURE, its Phase 3 maintenance study evaluating upadacitinib in adult patients with moderate to severe Crohn's disease who had an inadequate response or were intolerant to a conventional or biologic therapy.
The results showed that more patients treated with either dose of upadacitinib (15 mg or 30 mg once daily) achieved the co-primary endpoints of endoscopic response and clinical remission, as well as the secondary endpoint of endoscopic remission, at one year (week 52) compared to placebo.
Use of upadacitinib in Crohn's disease has not been evaluated by health authorities. Results from the U-ENDURE maintenance study, in addition to results from the U-EXCEED and U-EXCEL induction studies, will be included in future regulatory submissions.
In the U-ENDURE maintenance study, patients from U-EXCEED and U-EXCEL who responded to 12 weeks of upadacitinib 45 mg oral induction treatment were re-randomized to receive upadacitinib 15 mg, upadacitinib 30 mg, or placebo.
The safety results of upadacitinib (15 mg or 30 mg) were generally consistent with the safety profile observed in the Phase 3 induction studies in Crohn's disease.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Wednesday positive topline results from U-ENDURE, its Phase 3 maintenance study evaluating upadacitinib in adult patients with moderate to severe Crohn's disease who had an inadequate response or were intolerant to a conventional or biologic therapy. The results showed that more patients treated with either dose of upadacitinib (15 mg or 30 mg once daily) achieved the co-primary endpoints of endoscopic response and clinical remission, as well as the secondary endpoint of endoscopic remission, at one year (week 52) compared to placebo. The safety results of upadacitinib (15 mg or 30 mg) were generally consistent with the safety profile observed in the Phase 3 induction studies in Crohn's disease. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Wednesday positive topline results from U-ENDURE, its Phase 3 maintenance study evaluating upadacitinib in adult patients with moderate to severe Crohn's disease who had an inadequate response or were intolerant to a conventional or biologic therapy. Results from the U-ENDURE maintenance study, in addition to results from the U-EXCEED and U-EXCEL induction studies, will be included in future regulatory submissions. In the U-ENDURE maintenance study, patients from U-EXCEED and U-EXCEL who responded to 12 weeks of upadacitinib 45 mg oral induction treatment were re-randomized to receive upadacitinib 15 mg, upadacitinib 30 mg, or placebo. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Wednesday positive topline results from U-ENDURE, its Phase 3 maintenance study evaluating upadacitinib in adult patients with moderate to severe Crohn's disease who had an inadequate response or were intolerant to a conventional or biologic therapy. The results showed that more patients treated with either dose of upadacitinib (15 mg or 30 mg once daily) achieved the co-primary endpoints of endoscopic response and clinical remission, as well as the secondary endpoint of endoscopic remission, at one year (week 52) compared to placebo. In the U-ENDURE maintenance study, patients from U-EXCEED and U-EXCEL who responded to 12 weeks of upadacitinib 45 mg oral induction treatment were re-randomized to receive upadacitinib 15 mg, upadacitinib 30 mg, or placebo. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced on Wednesday positive topline results from U-ENDURE, its Phase 3 maintenance study evaluating upadacitinib in adult patients with moderate to severe Crohn's disease who had an inadequate response or were intolerant to a conventional or biologic therapy. Use of upadacitinib in Crohn's disease has not been evaluated by health authorities. In the U-ENDURE maintenance study, patients from U-EXCEED and U-EXCEL who responded to 12 weeks of upadacitinib 45 mg oral induction treatment were re-randomized to receive upadacitinib 15 mg, upadacitinib 30 mg, or placebo. |
23398.0 | 2022-05-11 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, Qualcomm, Linde, CVS Health Corp, and Booking Holdings | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-qualcomm-linde-cvs-health-corp-and-booking | nan | nan | For Immediate Release
Chicago, IL – May 11, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Qualcomm Inc. QCOM, Linde plc LIN, CVS Health Corp. CVS, and Booking Holdings Inc. BKNG.
Here are highlights from Tuesday’s Analyst Blog:
Q1 Earnings Scorecard & Analyst Reports for AbbVie, Qualcomm & Linde
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc., Qualcomm Inc., and Linde plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Q1 Earnings Season Scorecard
We now have Q1 results from 450 S&P 500 members or 90% of the index's total membership. Total earnings for these companies are up +9.2% on +14.5% higher revenues, with 79.1% beating EPS estimates and 75.3% beating revenue estimates.
Excluding the drag from the Finance sector, whose Q1 earnings are down -15.6% from the same period last year, earnings for the remainder of the index would be up +18% (vs. +9.2% with Finance).
On the other hand, the Energy sector is boosting the aggregte growth picture in a major way through the sector's +215.1% earnings growth. Excluding the Energy sector's contribution, earnings growth for the remainder of the index drops to +3.2%.
Today's Featured Reports
Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.0% vs. +20.5%) on the back of the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
Allergan's acquisition has diversified AbbVie's revenue base into new therapeutic areas, enhancing its long-term growth potential. However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales.
(You can read the full research report on AbbVie here >>>)
Shares of Qualcomm have outperformed the Zacks Wireless Equipment industry over the past year (+7.0% vs. -6.1%). The Zacks analyst believes that the buyout of Arriver will bolster its ability to deliver fully integrated Advanced Driver Assistance System solutions to automakers.
The company is focused on retaining its leadership in 5G and the chipset market, delivering low-power resilient multi-gigabit connectivity with best-in-class security. It is witnessing healthy traction in EDGE networking solutions across diverse sectors.
However, Qualcomm faces intense competition from low-cost chip manufacturers. High research and development costs are expected to dent margins, while global chip shortage due to supply-chain disruptions is a headwind. It is susceptible to risks arising from lower handset shipments, especially in China.
(You can read the full research report on Qualcomm here >>>)
Linde shares have gained +2.0% over the past year against the Zacks Oil and Gas - Field Services industry's gain of +6.4%. The Zacks analyst believes that the company is making the world more productive by the day and there is a wide range of applications for its industrial gases. Its primary products in industrial gases include oxygen, which is used as life support in hospitals. Linde's process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. However, the cost of sales continues to increase, hurting the firm's bottom line. Also, the company has been paying a lower dividend yield than the industry's composite stocks over the past two years.
(You can read the full research report on Linde here >>>)
Other noteworthy reports we are featuring today include CVS Health Corp., and Booking Holdings Inc..
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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
CVS Health Corporation (CVS): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Linde plc (LIN): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): 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. | Today's Featured Reports Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.0% vs. +20.5%) on the back of the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Qualcomm Inc. QCOM, Linde plc LIN, CVS Health Corp. CVS, and Booking Holdings Inc. BKNG. Here are highlights from Tuesday’s Analyst Blog: Q1 Earnings Scorecard & Analyst Reports for AbbVie, Qualcomm & Linde The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Qualcomm Inc. QCOM, Linde plc LIN, CVS Health Corp. CVS, and Booking Holdings Inc. BKNG. Here are highlights from Tuesday’s Analyst Blog: Q1 Earnings Scorecard & Analyst Reports for AbbVie, Qualcomm & Linde The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc., Qualcomm Inc., and Linde plc. | Here are highlights from Tuesday’s Analyst Blog: Q1 Earnings Scorecard & Analyst Reports for AbbVie, Qualcomm & Linde The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc., Qualcomm Inc., and Linde plc. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Qualcomm Inc. QCOM, Linde plc LIN, CVS Health Corp. CVS, and Booking Holdings Inc. BKNG. | Here are highlights from Tuesday’s Analyst Blog: Q1 Earnings Scorecard & Analyst Reports for AbbVie, Qualcomm & Linde The Zacks Research Daily presents the best research output of our analyst team. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Qualcomm Inc. QCOM, Linde plc LIN, CVS Health Corp. CVS, and Booking Holdings Inc. BKNG. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc., Qualcomm Inc., and Linde plc. |
23399.0 | 2022-05-11 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-0 | nan | nan | If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Morningstar Dividend Leaders ETF (FDL), a passively managed exchange traded fund launched on 03/09/2006.
The fund is sponsored by First Trust Advisors. It has amassed assets over $2.43 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 find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.55%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 21.60% 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 added about 3.86% so far this year and was up about 9.60% in the last one year (as of 05/11/2022). In the past 52-week period, it has traded between $32.62 and $38.84.
The ETF has a beta of 0.86 and standard deviation of 23.95% 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FDL is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.45 billion in assets, Vanguard Value ETF has $96.34 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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 If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Morningstar Dividend Leaders ETF (FDL), 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 If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Morningstar Dividend Leaders ETF (FDL), 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, 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 If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Morningstar Dividend Leaders ETF (FDL), a passively managed exchange traded fund launched on 03/09/2006. |
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